Tag Archives: Forex

Forex (FOReign EXchange)

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Forex trading is one of the most popular ways of trading the currency markets. Forex markets trade the actual exchange rate between two currencies. For example, the most popular Forex market is the Euro to US Dollar exchange rate (EUR to USD), which trades the value of 1 Euro in US Dollars. There are Forex markets for most of the major currencies, including the following :

  • EUR -> USD – The Euro to US Dollar exchange rate
  • GBP -> USD – The British Pound (Sterling) to US Dollar exchange rate
  • EUR -> GBP – The Euro to British Pound exchange rate
  • CAD -> USD – The Canadian Dollar to US Dollar exchange rate
  • AUD -> USD – The Australian Dollar to US Dollar exchange rate
  • EUR -> CHF – The Euro to Swiss Franc exchange rate
As the Forex markets are global markets, they trade 24 hours per day from Monday morning in New Zealand (Sunday night in the US) until Friday night in Asia (also Friday night in the US). Forex markets are different from most day trading markets in that they are not provided by an exchange. Forex markets are decentralized markets, where all trades are directly between two traders (or a trader and a Forex broker). This means that there could be several different exchange rates for the same currencies, depending upon factors such as the location of the traders, and the brokers being used.
Forex markets trade the currencies directly (rather than trading contracts), and the minimum amount that can be traded is known as a lot. The size of a lot is dependant upon the Forex broker being used, but is commonly at least $25,000. This amount is usually margined, so individual traders do not need to have anywhere near the lot size in their trading account, and will borrow most of the lot size from their Forex broker instead

Forex Technical Analysis for Week 01/28–02/01

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January 26th, 2013
Floor Pivot Points
Pair 3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
EUR/USD 1.3107 1.3185 1.3322 1.3400 1.3537 1.3615 1.3752
GBP/USD 1.5590 1.5667 1.5738 1.5815 1.5886 1.5963 1.6033
USD/JPY 85.78 86.92 88.92 90.05 92.05 93.18 95.18
EUR/JPY 112.94 114.98 118.67 120.71 124.40 126.44 130.13
GBP/JPY 135.58 137.41 140.57 142.40 145.56 147.39 150.55
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EUR/USD Down for the First Day in Three

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EURUSD_2013-01-28EUR/USD retreated today after the two-day rally. The faster-than-expected growth of US durable goods orders increased traders’ confidence in the economy and the currency of the United States. At the same time, economists are worried that the report later this week may show an increase of the eurozone unemployment rate to the record 11.9%. Such worries weakened the euro.

Durable goods orders grew as much as 4.6% in December, beating the analysts’ forecast of 1.8%. The November growth was 0.8%. (Event A on the chart.)

Pending home sales dropped 4.3% in December from November, when they went up 1.6%. Experts have promised an increase by 0.5%. Still, the sales remained in an uptrend on an annual basis. (Event B on the chart.)

On Friday, a report on new home sales was released, showing that the sales were at the seasonally adjusted annual rate of 369k, below the forecast value of 387k and the November rate of 398k (revised from 377k). (Not show on the chart.)

What is FOREX (Foreign Exchange)?

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What-is-Forex-Trading-All-AboutThe simple sense of Forex (Forex currency exchange, Foreign Exchange) is simultaneous purchase and sale of the currency or the exchange of one country’s currency for the one of another country. The world currencies do not have a fixed exchange rate and are always fluctuating, since each are traded in the currency pairs like Euro/Dollar, Dollar/Yen and others. 85% of daily trades are taken by major currencies trading.

Investments usually deal with 4 major pairs: Euro against US dollar, US dollar against Japanese yen, British pound against US dollar, and US dollar against Swiss franc or EUR/USD, USD/JPY, GBP/USD, and USD/CHF used to sign these pairs accordingly. These major pairs are considered as the Forex market’s “blue chips.� You will not receive any dividends on the currencies. Well known “buy low – sell high” gives the profit for currency trades. Continue reading →

What Is Forex?

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waht is forexFOREX — the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.

Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. Continue reading →