Forex Trading

An Overview of Forex Market
Buying of one currency and selling of another is called forex Trading, Basically a forex trading is non stop cash trading where currencies of all over the world are traded
Through brokers.In foreign exchange currency market banks and other financial companies facilititates the buying and selling of foreign currencies. Currencies are frequently and simultaneously traded means purchase and sale under local and global market Forex exchange market is the market where one currency is traded for another currency,Unlike the stock and future market foreign exchange is indeed an interbank, over-the-counter (OTC) ,it means there is not single currency exchange for certain currency pair.Foreign exchange market which is also called fx market is the biggest Liquid market in the world

Forex Market Participant
Here are main market participant in forex
Banks.Commercial companies.Central Banks.Investment Management firms.Non Banks Foreign Exchange companies.Money Transfer Remittence.

Determinants of of Forex Rates
Forex Rates depends budget defecit or surplus.Currency rate in forex market will be high if budget is in surplus
Forex rates also depend on economic growth and health
Forex rates also depends on the productivity of economy
Forex rates also depends on the political condition of country
Forex rates also depends on the inflation rate of country
Forex rates also depends on the situation of balance of payments
Forex rates also depends on the interest rate of country
Forex rates also depends on the evaluation of property of country
There are also some reasons which afect the on forex rates directly or indirectly

Now after read abut forex overview you are thinking how forex trade works

How Forex Trade Works
The basic market for Forex is by interbank market where bank insurance companies remittance companies and other large financial companies manage the risks associated with fluctuations in currency rates the actual forex market is available to those companies who are dealing in bulk transactions. Forex is not a market in a traditional sense there is not central trading or business location most of the forex business is conducted by telephone or electric networks
Forex business works very simple ways Like buying of one currency while selling another at the same time it is onlye done in pairs there are four major currencies are used in investment purpose these are like euro against US dollar and US dollar against Japnese yen the British Pound against US dollars , Currency pairs are often quoted as bid-ask spreads. The first part of the quote is the amount of the quote currency you will receivein exchange for one unit of the base currency (the bid price) andthe second part of the quote is the amount of the quote currency you must spend for one unit of the base currency (the ask or offer price).

Forex Trading Precautions

Always Put your eyes on your margins constantly if your margins drops very low your broker will call you for your margins and if you can not submit money agianst low margins your broker will sell your Forex Product(foreign currency) and you will fell in great trouble

Don’t invest more money than you can afford please keep in mind that always some people invest in forex for quick rich program and they loose their life saving money and fell in horror trouble you can read such stories in internet easily.always plans for profit and loss dead lines before invest.

To decrease the huge losses always make stop/Loss purchase it will give a good dead line and you are make sure you will fell in horrible situations.

Don’t try to be an extra smart and don’t think you will jump into it with lot of transactions and will become rich so quickly you must know that is only a stupid thinking if you are playing and considering that may be it will be like a jack pot, always transct one by one it will not only make you safe, Keep your purchases to a maximum of 2-3 at a time. This makes it much easier to buy and sell quickly.

Frequently Viewed Zone:
Before actually participating in any forex trade, make sure you have done your homework. Do the research and jot down all the necessary details about the trading transaction that you wish to perform. Ever heard of inter-bank market? Stay away from companies which lure you into trading in the inter-bank market because the currency transactions are negotiated in a wobbly network of large companies and financial institutions.

Also, make sure to check the background or history of the trading company. If a certain company does not disclose information about their background, that should serve as a red flag. It means that you should continue doing transactions with them. Nor is it advisable to transfer/send cash through the mail or the internet. Practice caution in everything you do, and you’ll be more than sure that you are always safe.

Fraudulent companies often solicit services and advertise soaring pressure tactics to attract you in participating or joining their services. An offshore company which guarantees no risk and return of profit is a big NO. Always be skeptical and don’t give in to any instant offer that comes your way.

Learn Forex:

This subcategory is very similar to forex education directory but we decided to differ them. "Learn Forex" category is more oriented for those visitors who make first steps. While forex education category was created for those who already knows forex basic knowledge and wants to learn forex trading secrets.

If you want to be successful on Forex market first thing you should do is to learn what is Forex and forex trading basics. Here you will find sites, which may help you to know foreign exchange market (Forex) better.

On the first stage we recommend you to read forex articles to learn main forex trading principles. All articles sites dedicated for learning forex are 100% free. But we highly recommend you to read as much articles as you can because as it happens quite often articles written by amateurs could have serious mistakes and this may cost you too much.

Another good opportunity to learn forex trading is to read (and join discussions) on forex forums. Often on forums you will find forex traders mistakes, technical analysis discussions also you can get some support from more experienced forex traders and learn forex trading on other traders mistakes. We always are seeking for new sites for our directory so if you know forex forums not listed here we always happy to get your submissions.