Forex volumes

Forex is the world biggest financial market. In April 2004, average daily volume used to be 1.9 trillion US dollars, which is higher than:

* eleven average volumes of all world stock exchanges together (167 billion US dollars);

* forty average volumes of NYSE - biggest stock exchange in the world (46 billion US dollars);

* 300 US dollars every day for every world citizen.

By April 2007, average daily volume increased to 3.2 trillion US dollars (~70% higher than in April 2004).

Most important markets: USA, United Kingdom and Japan. More than half of Forex volume is done in the UK and USA. Highest activity is detected in period of different markets' working hours interference.

Forex indicator

Successful traders

We at Forex4you believe that no advice or a hint can compare to those of real, practising traders with hands-on experience. That's why we decided to start a new section on our site - Successful traders!

Forex4you is going to choose some of the most successful clients, and ask them for interviews! Let great traders share their experiences and wisdom with beginners and newbies, we say!

Our first "Successful trader" is Kase Cheah from Australia. Interview with him is available at the following link:

Successful traders - Kase Cheah, Australia

It contains a lot of relevant information, advices and hints! Highly recommended to read!

Forex indicators

Forex technical indicator is a mathematical manipulation of a security price and volumes aimed at forecasting of future price changes. Trader is able to make decisions about how and when to enter or exit market, which position it is more suitable to open, on the basis of signals from technical indicators.

There are a lot of technical indicators although many of them have very slight differences.

According to their functions, indicators can be divided into three groups:

* Trend indicators help to assess the price direction and detect the turn moments synchronously or with a delay.

* Oscillators allow one to find the turning moments a little in advance or synchronously.

* Psychological indicators provide the information about the overall mood of market participants.

Technical indicators can be drawn up in a separate indicator window or they can be imposed directly into the price chart. For better forecasts several indicators may be used.

Metatrader 4 has a variety of built-in indicators. Use the menu at the top of the page to find out more about them.

Forex trading in the US

* The NFA – the National Futures Association. The NFA is a self-regulatory organization for the US futures industry. Its purpose is to safeguard market integrity and protect investors by implementing forex regulations. Membership in NFA is mandatory for any futures or forex broker operating in the US .It is an independent regulatory body with no ties to any specific marketplace.

* The CFTC – the Commodity Futures Trading Committee. Created by congress, the Commodity Futures Trading Commission (CFTC) was formed in 1974 as an independent agency with the mandate to issue forex regulations for financial markets in the United States. The CFTC's forex regulations assure the economic utility of the markets by encouraging their competitiveness and efficiency, and protecting market participants against and abusive forex trading practices.

The CFTC has some regulatory authority over retail off-exchange forex markets. The Commodity Exchange Act (CEA) allows the sale of over-the-counter forex futures and options to retail customers if, and only if, the counterparty (the person on the other side of the transaction) is a regulated entity.

These regulated entities include the following: financial institutions, such as banks and savings associations, registered broker-dealers and certain of their affiliates, registered futures commission merchants (FCMs) and certain of their affiliates, certain insurance companies and their regulated affiliatess financial holding companies, and investment bank holding companies. Under the CEA, the CFTC has the authority to shut down any unregulated entity that acts as a counterparty to forex futures oroptions transactions with retail customers. The CFTC also has the authority to take action against registered FCMs and their affiliates for violating the anti-fraud and anti-manipulation pro-visions of the CEA in connection with OTC forex transactionsinvolving retail customers, but the CFTC cannot adopt rules toregulate these transactions. NFA (National Futures Association) has rules to protect customers in the retail off-exchange forex market.

As mentioned later in this article, firms that introduce customers to forex dealers do not have to be regulated entities. NFA’s rules provide, among other things, that a forex dealer FCM must take responsibility for the activities of unregulated entities that solicit retail customers. Additionally, NFA’s rules require forex dealer FCMs to: observe high standards of commercial honor and just and equitable principles of trade in connection with the retail forex business; supervise their employees and agents and any affiliates that act as counterparties to retail forex transactions; maintain a minimum net capital requirement based on the value of open customer positions; and collect security deposits from those customers. NFA’s forex rules do not apply to all FCMs and their affiliates, however. Therefore, you should ask the dealer if NFA regulates its forex activities.

Forex trading in the UK

In the United Kingdom, operations of Forex brokers are regulated by FSA - Financial Services Authority.

The Financial Services Authority is non-governmental, independent body, whose primary function is to make financial retail markets that is, the markets that most of us use for trading-- work more efficiently. Their main goal is, essentially, to ensure that retail customers (that is, the little guys on the bottom of the financial dog-pile) get a fair deal.

Starting in 2004, the FSA has created a UK-wide strategy to build up the country's financial capability (in all markets, not just Forex), as well as raise confidence among consumers. In other words, they've put plenty of rules in place that make consumers more comfortable taking part in the market.

This affects UK brokers who work on behalf of residents in the UK in several ways. For one, according to FSA regulations, all legit Forex brokers must meet strict financial standards. These brokers are required to work with FSA financial regulators, submitting regular financial reports and proving that they follow regulations at all times. Brokerage firms who are found in violation are either fined or, in extreme cases, have their regulatory status terminated.

While strict rules may keep some good brokerage firms from operating in the UK, these harsh rules are generally pretty good for you. Since the FSA keeps records of any formal proceedings they've had to enter into against regulated firms, any information about rule breakers (that is, Forex brokers that you shouldn't trust) are kept on record. Simply by visiting the FSA website, you can find out if the firm you're considering using has had any serious problems or infractions. And that's very useful information - after all you can lose your money on the Forex market because of a bad broker.

Forex trading in India

India has a rather strict foreign currency exchange policy - even though many liberalization measures have been taken recently, it's still an economically isolated, or highly protected country. Indian currency - rupee, is highly regulated by the national banking authority - Reserve Bank of India, and so Indian citizens still cannot freely exchange rupee to other currencies, they have to prove their need and there are annual limits for different needs (more). Even popular money transfer systems such as Western Union which is spread worldwide and available to everyone, are forbidden in India - residents can only receive money, but not send.

However, because of the globalization there is a definite need to open the economy, so Reserve Bank of India has been softening rules and regulations in recent years.

One of the important changes in regards to Forex trading is that in year 2008 Reserve Bank of India has finally allowed currency futures trading. Speculative trading became a permissible operation too - since it became impossible to ask for a proof of a hedging need.

We at Forex4you are happy that one of the biggest and the most perspective country in the world is finally joining the world of opportunities of Forex trading market!

More details are available on the official website of RBI - here Note that Indian brokers are only allowed to provide USD/INR pair at the moment. Since we're located outside India, in British Virgin Islands, we do provide customers with many more pairs, many of which are much more interesting for traders because of their nature. Rupee, being a highly regulated currency, is not as volatile as other currencies and doesn't allow as much analysis since movements depend on RBI decisions and not on market events.

Our another advantage over brokers registered inside India is that we don't have any fees or minimum transactions/deposits. Services are much more affordable at our company!

Even though we're registered outside India, we do have an office in Mumbai where an Indian company that has a contract with us, provides our Indian stakeholders with support and consultations.

About Currency Trading

As we know, there is only one way to make money trading; buy lower and sell higher (or sell higher and buy back lower for short sales). To buy lower and sell higher prices must trend higher from where you bought (or lower from where you sold). If prices never trended there would never be an opportunity to make a profit! Furthermore, without up and down price movements institutional traders (hedgers) would have no need to insure themselves from price changes and trading volume would disappear What this means is that price trends are the essence of all-profitable trading.

The realization that trends are the essence of profitable trading makes the idea of trading currencies very exciting, because currencies are the worlds best trending markets! Countless studies of trend following systems prove that currency trends are the most consistent and often the most profitable. Regardless of the type of trend following system used; long term, intermediate term or short term, currencies invariably outperform all other markets including stocks, bonds and other commodities. It should come as no surprise that some of the worlds' most successful traders are currency traders.

One-reason currencies trend better than every other market is because of their macro-economic nature. Unlike many commodities whose supply and demand fundamentals can literally change with the weather, currency fundamentals are often less random and more predictable.

In summary, Forex Trading is not conducted on a regulated exchange and as a result there are additional risks involved, and this type of trading may not be suitable for all individuals, but currencies remain one of the best all around markets. Currencies represent the worlds' largest market place, and have the most powerful and persistent price trends.

BASICS OF FOREX TRADING

This article gives an introduction on the fundamentals of trading Forex online, a brief explanation of the markets and the major advantages of Forex trading online. Currency or Forex, all terms used to describe the trade in the world of many currencies. On the foreign exchange market is the biggest market in the world, with trades amounting to more than 1.5 trillion dollars every day. On the foreign exchange market has no center or courses and is considered to be excessive over (OTC) market. Forex traders make incredible wealth day after day from the comfort of your home. Foreign currency, usually traded on margin. A relatively small deposit you can manage many more positions in the market. Foreign Exchange Trading takes place directly between the two partners to a transaction, whether by phone or e-broker network throughout the world. This trade, which involves the simultaneous buying of one currency and selling another.

There are two reason to buy and sell currencies. About 5% of daily turnover, and governments that buy or sell goods and services in foreign countries must convert profits into foreign currency in their national currency. The remaining 95% of trading for profit, or speculation. Currency combinations used in the trade is called a cross (for example, euro / dollar or GB pound / Japanese yen).. The market is called the spot market, since the trades are solved immediately, or? On the ground ". One of the key benefits of Forex trading is the ability to trade 24 hours a day, on Sunday evening (20:00 GMT) on Friday evening (22:00 GMT). Unlike stock trading currency on the Forex market does not snap off at the "close" each trading day. Advantage Forex time 24 hours a day, the market is that there is little or no gaps in the market, ie there is no chance that prices will close one day, and again the next day. The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who wish to do business on the basis of.

Because the market is constantly moving, always trading opportunities, whether a currency is strengthening or weakening in relation to other currencies. When you trade currencies, they literally work against each other. Different Rates of payment of interest rates.

The interest rate differential, as a rule, do not affect trade considerations unless you plan to hold a position with a large differential for a long period of time. This is one of the main drivers of currency trends. You can have both positive and negative interest rate differential, so it can work for or against you when you make a trade. This is indeed attractive to the buyer's currency that pays a higher interest rate during a short currency, which has a lower interest rate. Fortunately, there is daily limits on currency transactions, and no restrictions on trading hours, except weekends. This means that almost always is the opportunity to respond to movements in currency markets and a low risk of getting caught without the possibility of exit. A Forex trading method with a high percentage of victories pay psychologically, keeps morale high, and enjoyable to trade. A string of profits will build your confidence. The losses should be small and wins should be larger than losses.

FOREX TRADING COURSES ONLINE

Many years ago, Forex trading was possible when you’re in the actual trading platform. If you’re not present there, you can’t make a trade. Thanks to the introduction of the internet, it is now possible to conduct the Forex transactions from the comfort of your own home or even in the office. There are now Forex trading courses offered online which can help you with your trading concerns.The communication industry has definitely contributed a lot to the growth of the fprex market. Trades can be done by way of phone or through online resources. Because of this, the Forex market is far larger than other major fiancial markets.By taking up trading courses on the internet, you can learn a lot about Forex trading. Newbies in the industry will definitely learn a great deal about this market and how to conduct their trades. A lot of things are free online but the trading courses require a minimal fee. The knowledge that you can gain from these courses are nothing compared to the fee that you’re going to pay.

Besides, if you can become a good trader, you can earn more profits.Before signing up for a trading course, you need to consider things like:1.Who offered the trading course? Was offered by a reputable company or firm?2.What is the reason behind the course offer?3.Is the company or firm trying to promote a trading site where you can join in the future?4.Is the course trying to push you in using a certain trading website? Are you being pushed to invest money?Answer the questions and from your answers, you can already determine if the trading course is worthy or not.You have to find a trading course which provides high standard learning. All the information contained in the website should not be replicated elsewhere. There are traders who don’t enroll in any trading course at all because they were able to find the information in free online resources. So why pay for information that you can get for free online, right? Conduct your research and check the background of the company or firm offering the trading courses.Before choosing a trading course online, try to check Forex articles and expert advice posted on the internet for free.

You can even forums and discuss Forex issues there. You can meet fellow traders who can provide you with useful info on how to trade effectively and wisely.A good trading course should be able to provide you with different kinds of views from different established companies. It should not concentrate mainly on how a certain company conducts its trade. Look for reputable companies and firms that offer excellent trading courses. With a bit of research online, you will surely find the course that you’re looking for. Since you’re going to pay for the trading course, it should teach you everything you need to know about Forex trading which includes developing a trading system, using trend indicators, signal generators, flow charts, and many other things. The course should also teach you about the best trading software programs available in the market today.Start looking for the best trading course online. With a very minimal fee, you can already gain priceless knowledge that you can use when you finally decide to enter the Forex market. Now, Forex trading will not be very difficult for you.

FOREX TRADING SOFTWARE

You can find several types of software for Forex trading. All the trading software offered in the market has its own disadvantages as well as advantages or benefits. In order to choose the best software that you can use in Forex trading, you need to know your needs. So what systems are available for you?

Most of the software offered in the market help in easing the burden of trading in the Forex market. As compared to the stock market, the Forex market is open for longer hours; in fact, it is open twenty four hours a day. With efficient software, you can keep track of all the things happening in the Forex market. You can’t possibly stay all hours of the day and night staring at the computer for updates in the market. With the software, you can continue with your everyday routine activities and once you have time to study and analyze the stock market, you can simply use the trading software to monitor the day’s activities.

The software will do all the difficult tasks for you. The trading software can automatically monitor all the activities in the Forex market round the clock. The trader can decide the degree of independence of the software. Most traders leave all the dirty work to the software especially if they are also quite busy with their work.

Here is a very good example of how trading software works:You decided to invest on a certain trade. When you were out doing the laundry or perhaps you’re in the grocery, you started losing money because of some unfavorable changes in the market. If you have an efficient software, you can minimize your loses because the software will automatically trade away once there is an indication of an unfavorable change in the Forex market. So you see, this is already one of the advantages of having trading software as a trader.

Some trading software takes emphasis on the signal indicators or generators and other market trends. You can benefit a lot from this software because you can confidently trade without any doubts on your mind. You see, this kind of program use tested and complex mathematical algorithms. Forex moguls are incurring lots of profits through the use of this kind of software. The software is tried and tested. In fact, this kind of software can help you in making a precise trading decision through the advanced algorithms and trend indicators. The indicators can give you trading tips, as well as accurate Forex information.

Combo software programs are also offered. Whether you’re a beginner or an advanced trader, you can make use of this program. This kind of software can monitor the changes in the Forex market and at the same time provide helpful trend indicators or signal generators.It doesn’t really matter what kind of software you purchase and use. As long as the software works for you, you can utilize it for as long as you want. Software programs are mostly updated by their publishers and so you don’t need to worry about anything. Test trials are also available for traders who are hesitant in purchasing a certain software program.Be wise in choosing the appropriate software program that you will use in Forex trading. Trading in a very complex market is not as easy as you think and you need to be prepared for everything with the help of the trading software.