Heard of Forex, FX, Currency Trading or Foreign Exchange? Curious to know what they really are? Each of these terms refers to the buying and selling of foreign currency. Watch FXCM's "What is Forex" video to get a better understanding of what the forex markets are, how they work, how traders trade in them and what resources FXCM offers. Forex refers to the foreign exchange markets and the buying and selling of currencies. Every day, an average of more than 3 trillion transactions takes place in the forex market. Each of these transactions plays a vital role in establishing a currency pair's exchange rate. When a traveler visits a new country, or when an international business pays it's foreign employees they each convert their local currency into foreign currency. Over time these transactions cause a shift in the exchange rate. When money flows into a currency, it strengthens, (PAUSE) and when money flows out of a currency, it weakens. These shifts in value are what gives life to the forex market. Forex traders attempt to predict the direction of an exchange rate just like stock traders try to predict the direction of a company's stock price. Forex traders buy a currency pair when they think the exchange rate will increase. (PAUSE) And sell a currency pair when they think the currency pair will decrease. And as a global market, they can do this 24 hours a day, 5 days a week. Forex traders attempt to predict the direction of an exchange rate just like stock traders try to ...
Having a solid trading strategy is essential for trading the major currencies, and can help individual investors take advantage of profitable opportunities. Identifying and following the major trend helps to lower the risk for loss, which usually facilitates individual traders from ending up on the wrong side of the market. However, scalp or intraday trading involves a high risk for loss, but identifying short-term support and resistance levels could help to lead to a profitable trade. At the same time, applying technical indicators will also assist an investor to get in a trade at the best time, and exit the position with the highest potential profit.
Forex Technical Update 8/31/2010 The EUR/USD had a sharp correction rally in the European session but did not invalidate the bearish swing outlook just yet. You can also see the Euro pare losses against the Yen, but the Japanese currency remains firm. The USD/JPY continues to decline. The Swiss franc dominated the European session as the EUR/CHF is at an all-time low, and USD/CHF is at a 7-month low. The CHF also is also threatening to outperform the Japanese Yen as a safe haven currency. Fan Yang CTA Technical Analyst www.fxtimes.com
Meet John at the FXCM Expo in Las Vegas May 2-4 www.FXCMEXPO.com Produced by: DailyFX.com Daily wrap-up of the US Forex market trading session with DailyFX Currency Strategist John Kicklighter. Includes coverage of economic and financial market news, as well as an outlook for the next 24 hours and trading ideas
Daily afternoon analysis of the US Forex market trading session with dailyfx Currency Analyst John Kicklighter. Includes coverage of economic and financial market news, as well as an outlook for the day ahead and trading ideas. Produced by: www.dailyfx.com
John's Trades: EUR/GBP; Long USD/JPY Daily wrrap-up of the US Forex market trading session with dailyfx Currency Strategist John Kicklighter. Includes coverage of economic and financial market news, as well as an outlook for the next 24 hours and trading ideas. Produced by: www.dailyfx.com
