When the Forex Market Is Open

When the Forex Market Is OpenA common misconception of the Forex market, is that it is open 24 hours a day every day. This is an advantageous feature of the market for currencies, which some Forex brokers as well as some promoters of trading tools and software packages, love to latch onto in order to attract new clients. However, the currency market isn’t actually always open.

Although you might have read or been told that the FX market is open every single hour of every day, it isn’t. The Forex market is open 24 hours a day yes, but not for 7 days of the week; it is open 24 hours a day and around 5.5 days a week.

The foreign exchange market closes around 4PM each Friday and opens around 5PM each Sunday, EST. This means that between 4PM on Fridays and 5PM on Sundays, EST, you will not be able to actively trade currencies. You should understand this information and try to work around it. Actually, it is quite good that the Forex market is not open every day, as it forces traders and investors to rest; it’s best to trade currencies when you’re fresh.

However, if you do like to keep busy, you might want to consider dedicating some of your free time over the weekends to studying and researching. This way, you will be able to gain knowledge when you aren’t able to invest, allowing you more time over Monday to Friday to practice and place orders. This is probably the most ideal way of trading Forex, no matter what your trading strategy is.

If this information is news to you, it is nothing really to worry about. However, if you are just getting started, you will definitely need to take this information into account when choosing your Forex trading strategy. This is because if you work a full-time job for example, you will need to try and find the time to trade Forex, without having to sacrifice your performance at work. It’s obviously advised that you don’t trade currencies at work; your performance at work would be poor and you would most likely not be able to concentrate on your Forex trading career properly – you could even get fired and lose your job.

Basically, you need to find time to yourself where you can really concentrate on your trading without any distractions. If you have lots of time on your hands, then that’s great, however if you don’t you might want to focus on more long-term Forex trading strategies (which require much less time). In fact, you should really focus on longer-term trading strategies no matter what your situation is, if you are a beginner; short-term trading strategies tend to be riskier and require more experience.

Remember that the times given above are also EST, so if your country is in GMT, the Forex market for you will actually close 9PM each Friday and open 10PM each Sunday. Using a world clock in Forex trading is important, so that you can keep track not only of when the currency market is open, but also of when the Forex market is most active – but that’s a completely different matter.

In conclusion, the foreign exchange market is actually open 24 hours, 5.5 days a week and not 7 days a week. It closes 4PM each Friday and opens 5PM each Sunday, EST. You should take the FX market’s opening and closing times into account, especially when choosing your Forex trading strategy. However for some people, even if this information is news to them, they won’t be affected; you should just ensure that you are aware of this information before making any plans.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone.

 

Gold and the US Dollar on Forex

Gold and the US Dollar on ForexIt is not a novel piece of news to most traders that the US dollar is directly linked to the value of gold in the US, and vice versa. Such knowledge has been vital to the effectiveness of traders in being able to tell which direction the currency may surge in. This is something that needs to be kept in mind where the commodity is concerned, and ultimately it will serve the best interests of those traders who know how to utilize it. So taking the time to have a good look at what is going on will be thankful later on when the value of gold takes off and they have short sold the US dollar. Currently the value of gold in terms of US dollars is at the higher end of the spectrum, but in time there should be a bounce.

The commodities market is like every other in terms of technical indicators, sometimes they work and sometimes they do not, but among the most reliable of these indicators are support and resistance levels. Recent surges in the price of gold have made investors very conscious of what has been going on with the value of the USD, and this has prompted many people to seek out other avenues of investment. This is an investment vehicle that has been more or less neutered by the US government as of late via a maximum allowable leverage of 1:1, but there is still the opportunity for an edge. The simple rise and fall in the value of this commodity is tied directly to both the currency and equities world, making for some inter-market analysis.

It must be said that while gold is a great indicator it is not a guarantee, and anyone trading should still pay attention to their Forex charts for the best chance of success. While gold is a great guiding light there are definitely a lot of other factors that need to be taken into account, a wise trader will use inter-market data in conjunction with all of their other tools. So take the time to look at where Gold is and where it may be headed, and this will have an inverse impact on the value of the dollar. Over time this should help to catch some of the larger moves of the value of the currency depending on how things shape up, so be on the lookout.

The author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to stay up to date with the latest forex quotes.

Investing in Currencies

Investing in CurrenciesWhy not invest? It’s easier than you think. Believe it or not a lot of people earn very good money buying and selling foreign currency. Foreign exchange trading is not that hard to get into and you don’t need much money to start – in fact most professional Forex traders were normal people who started small and worked their way up.

It’s just a case of learning and experience. If you like learning new things then Forex trading might be ideal for you. Like many things in life success in Foreign exchange trading usually comes with experience. And with a little experience you could turn a profitable sideline into a significant income. Who knows, you could be one of those people with a genuine flair for foreign exchange and you don’t even know it yet!

If you are not sure about risking your hard earned money on something you know little about, don’t worry. Many foreign exchange brokers will allow you to open a dummy trial account with pretend ‘Monopoly’ money. The account works exactly like a genuine account but there’s no real money involved. You can buy and sell in safety while you learn the game and when you consistently start to make profitable trades, on a daily basis, you’ll know it’s time to start using some real money.

And if you do manage to pick it up there are significant advantages to being a Foreign exchange trader. For a start you’d be working for yourself and from home – with all of the benefits entailed. You’d be your own boss and start and finish when you choose. Forex trading might be ideal for someone in need of a new career, or for someone retired and looking for something to occupy their time and generate an extra income.

So how does it work? Basically Foreign exchange traders try to predict rises and falls in currencies. If you convert Euros into British Pounds the day before something happens which causes the Pound to rise and the Euro to fall then you could make a lot of money! It’s just about learning how to predict what will happen in the global economy – all from the safety of your own home. Sounds complicated?

Not necessarily. If you watch the news and read the papers you’ll be surprised how much you know about these things already. You’ve been exposed to it all of your life. The rest you can learn as you go.

Then there’s the money. On average, Top Forex Brokers earn between 16 and 60% per trade. I’m sure you’ll agree that’s not bad for sitting at home in front of a computer! Once you decide to make trades with cash you don’t need loads to start with because the brokers will let you make margin trades. How this works is that you can buy up to 50 times the money in your account. If the currency falls you only have to pay for the difference in value of the currency. This is how traders can earn between 16 and 60% per trade.

 

The Disadvantages of Forex News Trading

The Disadvantages of ForexAlthough Forex news trading strategies can prove to be very profitable, you should be well aware of the disadvantages of trading the news in the market for currencies, if you are interested in using one of these types of strategies.

First of all, news trading is all about placing orders before or immediately after important news releases, such as the US nonfarm payroll (AKA the job report). Forex news traders attempt to take advantage of the high volatility that is caused in the market for currencies, as a result of important news releases. However, this presents two disadvantages of trading the news in the Forex market:

1) Your trading costs could increase and you could end up deducing losses instead, even if you make a good investment decision. This is because your spreads could change in these different market conditions. This can of course be avoided by opening an account with a Forex broker that can provide fixed spreads. Most good brokers can provide fixed spreads nowadays and if you are currently with a broker that can’t, you should definitely consider opening an account with another broker that can. Not only will you be able to trade the news more effectively, but you will also not have to take into account changing spreads when creating Forex trading plans. Ever-changing spreads in general cause Forex traders to lose out on many opportunities and they are very undesirable.

2) You could get “locked out” by your Forex broker, which is basically when you receive a delay between the time when you place an order and the time when your order actually gets filled. This can cause Forex traders to miss out on opportunities and deduce losses instead of making profits. In order to try and avoid experiencing slippage, you should ensure that your broker is good and can fill orders quickly regardless of the currency market’s conditions.

Remember, there are many advantages of trading the news too and you shouldn’t shy away from Forex news trading strategies simply because they bear multiple disadvantages. There are in fact pros and cons to every type of Forex trading strategy, but it’s just good to be aware of the advantages and disadvantages of a certain currency trading strategy before you decide to use it. You should weigh up in your mind the advantages and drawbacks of trading strategies and then decide which one is best for you; the trading strategy you use will depend on you as an individual Forex trader and your situation. For example, if you are a beginner and you don’t have a lot of time to trade currencies, you might consider using a Forex carry trading strategy (which involves taking advantage of interest rate differentials between different currencies, allowing traders and investors to make profits in the long run), which is much more long-term and requires less previous trading experience.

In conclusion, the disadvantages of Forex news trading include increased trading costs and order filling delays. However, currency traders can in all fairness make a lot of money trading the news and you should not dismiss these types of Forex trading strategies, simply because they bear some disadvantages. As previously mentioned, every Forex trading strategy has disadvantages and it will ultimately depend on you as an individual Forex trader and your own situation, what trading strategy you decide to use. Just like with any other trading strategy though, when trading with key economic news and data, ensure that you are aware of the disadvantages and drawbacks of the strategy you are using, as this will allow you to try and avoid unnecessary losses.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone.

 

Advantages of a Forex Forum

Advantages of a ForexAn internet forum or community is a place where you can discus various issues related to a specific topic.With help of forum your can get answers to your questions from community. For example, on a forex forum you can discuss currency trading ideas. There are several countries round the globe, so we have several currencies. People love to buy, sell, and exchange the global currencies, because this business produces 4 trillion dollar per day. This is the primary reason; there are lots of people, who are thinking about taking an initiative, for the sake of starting their own business. The forex trade is turning out to be a perfect business, for the risk seekers, but there are lots of complications, regarding the business of the forex-trade. This is the primary reason; you should keep a deep focus upon acquiring the entire knowledge, which will be helpful, when it’s all about conducting the smart trade or exchange business. The World Wide Web is empowering every field of life. There are several forums, which are focusing upon the entire procedure of the forex trading, and there are lots of benefits of forex forums.

First, these forums provide the complete hearing from the experienced traders, who have spent years in searching the means of success, which helps the novices and the experienced traders, to go through the entire difficulties of the trading procedures. You can get the precise ideas, which help in acquiring the peaks of success. The forums help in learning the entire skills, which are important, when it’s all about conducting the smart deals. The benefits of forex forum include getting the feedback about your own trading system, because you can use the enlisted methodologies, which have been practiced by thousands of experts, and these methodologies will help in developing the precise strategies to ensure the highest quality trade.

This piece of paper may not capable of enlisting the entire benefits of forex forum, but provide sufficient details, regarding the primary benefits of these soft channels. These forums provide information regarding what your competitors are doing, and what you should do to conduct a counter attack, which will let you lead the entire competitors. These platforms provide everything about the social interactions. The social interaction provides a true platform, which allows boosting up the performance of your business via use of the social contacts. These platforms help in building friendship with other traders, along with the permissions to form a group which helps in conducting the smart deals, without pulling hairs.

Visit our forex forum to get forex broker reviews,ratings of new forex trading platforms and other currency related discussion.Also find forex articles here.

 

Forex Trading – Getting Started

Forex Trading - Getting StartedAnyone can get started as a foreign exchange (Forex) trader with just a computer and an internet connection. Setting up an account with a broker can be done with as little as $250. To be successful, a trader needs more than just an account with a broker. There are many Forex trading tools available to help a trader to make the right decisions and profit from their trading.

Before a potential new Forex trader starts investing, the best tool available from most brokers is a “practice” account where you trade without risking any real money. These practice accounts should mimic a trading account allowing a potential new trader the opportunity to get a feel for the market. They also enable the new trader to test out possible strategies.

All major brokers use one of the main trading platforms and these will offer a number of different charts that allow the historic tracking of a currency. Most charts will allow traders to look at the historic movements over a variety of time periods. Whilst these charts will not provide a forecast, they can help in formulating a strategy. These charts will use different methods of presenting the results so an understanding of them is required before they become a useful tool.

As Forex markets work around the world on a 24 hour basis with a break at weekends, the trader may wish to keep track of exchange rate movements on their mobile phone. Most brokers will have an application that can be downloaded to a mobile phone allowing the trader to monitor their investments and even conduct trades.

Important influences on the Forex rates are the various financial statistics for each individual country. For instance if there was a sudden unexpected large increase in the unemployed in say the USA, the US Dollar could weaken significantly. An experienced trader will often have a feed of the headlines of all the major financial indicators so that they can make quick decisions to trade. These quick decisions can make the difference between significant profits and losses.

For new traders, gaining and understanding the information available is one of the most important factors in determining whether they are successful. There are numerous internet based forums available and new traders should join at least one of them. These forums allow new traders to interact with more experienced people and gain valuable knowledge.

The most important tool for anybody in any occupation is the one most overlooked- the human brain. This organ of the body is able to process complex information as quickly as any computer. Just like a computer, if the information supplied to the brain is not accurate, then the output (i.e. decisions made) will not be accurate. This means study and practice to hone the most important tool available into a valuable resource. Therefore, it is essential that the trader properly understands the information available to them so that profitable decisions can be made.

Chris Dibbs is a novice Forex trader who is looking to connect with like minded people. He recommends using Forex Trading Tools to keep up to date with the current financial market.

 

Using a World Clock in Forex Trading

Using-a-World-Clock-in-Forex-TradingIn the currency market, you have a lot to worry about. What most traders and investors worry about, especially beginners, is making a profit. Forex trading is like any other business in the world and by investing in currencies, you won’t necessarily make back what you put into it in the first place. This is because risk comes with trading currencies. However, there are many elements to currency trading; one element of Forex trading is time.

Forex trading is international of course, because when you trade a currency pair, you are actually buying one currency from one nation and selling another currency, which is obviously going to come from another nation. Different nations will tend to work in different time zones – this will ultimately depend on the countries in question, but this is generally the case. For example, you might buy USD and sell GBP, but the United States is in a completely different time zone to the United Kingdom.

A world clock in Forex trading is an important tool. Although this is actually a very simple tool, it can help you out a lot when trading currencies. All good desktop computers will allow you to place a good world clock on the desktop of your desktop computer, which means that it is also very easy and convenient to use a world clock.

Once you have a world clock that you can access on demand, you will want to learn about the various trading sessions there are and when the Forex market is most active. There are multiple different trading sessions and it will ultimately depend on your Forex trading system, which sessions you decide to trade in. The three most well-known trading sessions are:

– The London session (running from 3AM to 12PM EST)

– The New York Session (running from 9AM to 5PM EST)

– The Tokyo session (running from 7PM to 4AM EST).

There is a variety of different trading sessions which all work in different time zones. You will want to trade at the time of the appropriate trading session, for the currency pair(s) that you are focusing on. Good Forex traders trade the currency pair(s) that they are focusing on within appropriate trading sessions, so that they can invest in the FX market when there are higher levels of activity and greater trading volumes. Also, during the most active times of trading, trends are generally easier to spot and take advantage of. Technical indicators also tend to operate in more predictably, during more active times of Forex trading.

In conclusion, a world clock in currency trading can be a very useful tool to have and use. World clocks can allow Forex traders and investors to stay much more organized. By being aware of the time, you will be more likely to make profits in the market for currencies, since you will know when to trade; currency trading isn’t just about how to trade, but when to trade too. World clocks are very easy to use, convenient and hassle-free – but they are great tools to take advantage of and they are of course free too, so they are highly recommended to traders and investors in the Forex market.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone.

 

Long-Term Forex Trading

Long-Term Forex TradingMany traders and investors in the Forex, especially beginners, tend to focus on day trading strategies. Beginners generally like to stare at their trading platforms as soon as they enter the market for currencies. The truth is, shorter-term Forex trading strategies are not ideal for beginner traders and investors. In fact, short-term trading strategies aren’t even ideal for more experienced Forex traders in some cases.

Longer-term Forex trading strategies in general, are much safer than shorter-term ones. There are a number of advantages of long-term Forex trading.

Long-term trading is easier and safer because if you find a pattern or trend that is strong in the long run, you will more than likely be able to take advantage of it, as long as you hold your long-term position open for long enough. Long-term investments in the currency market tend to last for quite a few months and some even last for a few years. There are many long-term strategies, such as carry trading. Making profits with Forex carry trading strategies can be pretty easy, if you do a little research and know what you’re doing. There are money management techniques that can allow you to make your long-term trading even safer. For example you could use trailing stops to lock in your Forex trading profits.

Another benefit of long-term Forex trading, is that it allows you to make money without having to work very hard at all. In fact, after you have discovered a trend or pattern and placed your order, you don’t have to work at all for at least a few months; the only work that you have to do is check your trading platform, which might take you a few minutes each week or whenever you like. This means that you can make money with minimal effort, whilst even working a full-time job.

Because long-term Forex trading strategies don’t require a lot of work or time, they also allow for stress-free trading experiences. When you only look for profits in the long run, you won’t have to worry about short-term volatility in the FX market like many other traders. Instead, you can just sit back and relax, watching your account grow month by month, if you find a good pattern or trend. Stress can be an issue for many traders and cause mistakes to be made, which can in turn lead to losses. Because you only place only a few orders, in fact some traders who only trade for profits in the long run only have one open position at a time, you don’t have to worry at all about getting stressed or making mistakes. As long as you focus on the long run and don’t worry about short-term volatility, you will be fine.

Once you build up enough profit, you can actually make a lot of money with long-term Forex trading strategies. In fact, some even make a living out of riding long-term trends in the Forex market.

In conclusion, long-term Forex trading strategies are generally safe, stress-free and ideal for beginners – though they are also popular among more experienced Forex traders too.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone.

 

Using an Economic Calendar in Forex Trading

Economic Calendar in Forex TradingWhen trading currencies, you want to surround yourself with as many useful resources as possible, in order to maximize your chances of profiting and success in the Forex market. Some Forex traders will focus more on technical analysis, by looking at price charts and graphs more than studying fundamentals. Similarly, some will focus on fundamental analysis more and neglect the technical aspects of trading currencies. No matter what type of analysis you prefer or focus on, you should try to conduct both types of analysis. An economic calendar can prove to be a great tool and these types of calendars can greatly assist a Forex trader’s conducting of fundamental analysis. These types of calendars can definitely help to increase your chances of profiting and success in the market for currencies.

There are many Forex trading calendars available on the internet. The majority of them are free too, so you have nothing to lose when implementing a calendar of economic events into your trading of currencies. Some are obviously going to be better and more thorough than others though, so you should really just look around and perhaps even consider using more than one economic calendar. The calendar you use might even depend on your Forex trading system and the currency pairs that you trade.

When looking for a Forex trading calendar, you should definitely look for one that has all of the financial world’s most important economic events, such as the ones that develop in the United States. The US is very important and plays a significant part in the world of the financial markets.

Some news, announcements, releases and such will come out on the same day. Some will be recurring too and come out on the same day of each month, for example the US nonfarm payroll (AKA the job report), which is published on the first Friday of every month.

The currency trading calendar you implement into your trading should also provide updates of any other related news and information that you may want to take into account, as well as scheduled announcement highlights.

The real benefit of implementing an economic calendar into your Forex trading, is that you can take advantage of fundamentals more easily and plan ahead. A Forex trading calendar will allow you to plan for future opportunities that might allow you to make an easy profit. By keeping updated and knowing about certain, important events in advance, you will put yourself at a great advantage. If you learn to understand how the effects of financial announcements that are planned ahead of time on, you will be able to avoid times of higher volatility and you will be able to predict currency market movements around certain events more effectively.

In conclusion, by using an economic calendar in Forex trading, you will be able to potentially make more profits, as you will be able to predict FX market movements in advance and stand more of a chance of benefiting from your fundamental analysis. By using a Forex trading calendar, you will put yourself at a great advantage in the market for currencies. The Forex market can be very unpredictable at times and its volatility can cause many to deduce significant losses. By planning ahead of time and using a currency trading calendar, you will be able to potentially avoid less desirable market conditions and you will be able to potentially spot profitable opportunities in advance. This will in turn help you to both maximize your profits and minimize your losses, which is what Forex trading is essentially all about. Remember, some Forex brokers will provide their own economic calendars for free to all their clients, however even if your broker does indeed provide a good and solid calendar, you should always consider diversifying your sources of information and keep track of more than one calendar in case the calendar you use misses an important event out, for example.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone.

 

Using a Currency Converter in Forex Trading

Using a Currency Converter in Forex TradingThere are plenty of different tools that you might find useful, during your Forex trading career. Some are more useful and of course more important than others, however one of the more obvious Forex trading tools that you might have already heard of, is the currency converter. Although these sorts of tools are generally used by business people going away on meetings, holiday-goers going to different countries and just about anyone going abroad to a different country with a different currency to their home nation’s currency, they can also prove to be useful to currency traders.

A currency converter will be able to provide you with constant, valuable information, so long as the converter is up-to-date. These types of tools will be able to tell you the retail exchange of one currency in terms of another. This basically means that these types of tools will be able to tell you how much one currency is worth, in terms of another currency. Because you are always buying or selling one currency against another, converters can of course prove to be very useful, despite the fact that they are actually very simple tools indeed.

You should bear in mind when using a converter though, that the rate that you do see on your converter won’t match or reflect the currency prices that you will be given by your broker. This is because Forex brokers make money through spreads; brokers embed the costs of their services into the differences between the buy and sell prices of currencies. Also, you might want to remember that the price feeds that your broker delivers might be delayed, which is something to think about when using a currency converter in Forex trading.

A converter can be a great tool though and they are very easy to find. When looking for a converter, ensure that it is live, not delayed and is not from a broker. If you have a good Forex broker though, you will most likely be able to access a converter within your trading platform, provided by your broker. The main advantage of using your broker’s converter, is that the prices you see on your converter are the prices that you are actually trading. This allows for less confusion and hassle, which will in turn allow you to get on with your trading. Do bear in mind though, that if your broker isn’t one of the more credible and legitimate ones in the business, you should try to keep track of more than one price feed every so often so that you can be sure that your broker isn’t cheating you. This really involves price feeds more than converters, but this is still something to think about; remember, always go to a broker that can offer fixed spreads. If you use a converter provided by a broker who gives you floating and ever-changing spreads, it could confuse you a lot and mess your plans up.

In conclusion, a currency converter is an extremely simple tool, yet it can be extremely useful too. Every Forex trader should have access to a converter. Live converters will also be able to tell you what retail trends for particular currencies have been like, during time periods of your choice. Although converters at first glance look very simple, although they are admittedly simple, they shouldn’t be underestimated. So not only should those going abroad considers converters, but also those who trade currencies.

How Forex Trading Works is a resourceful website that serves to deliver free, online content relating to Forex trading, to anyone and everyone.