Forex? What is it Forex Trading, anyway?

Welcome to todays forex trading lesson.

The market
The currency trading (foreign exchange, Forex, FX) market is the biggest and
fastest growing market on earth. Its daily turnover is more than 3.5 trillion
dollars. The participants in this market are central and commercial banks,
corporations, institutional investors, hedge funds, and private individuals like
you.
What happens in the market?
Markets are places where goods are traded, and the same goes with Forex. In
Forex markets, the “goods” are the currencies of various countries (as well as
gold and silver). For example, you might buy euro with US dollars, or you
might sell Japanese Yen for Canadian dollars. It’s as basic as trading one
currency for another.
Of course, you don’t have to purchase or sell actual, physical currency: you
trade and work with your own base currency, and deal with any currency pair
you wish to.
“Leverage” is the Forex advantage
The ratio of investment to actual value is called “leverage”. Using a $1,000 to
buy a Forex contract with a $100,000 value is “leveraging” at a 1:100 ratio.
The $1,000 is all you invest and all you risk, but the gains you can make may
be many times greater.
How does one profit in the Forex market?
Obviously, buy low and sell high! The profit potential comes from the
fluctuations (changes) in the currency exchange market. Unlike the stock
market, where share are purchased, Forex trading does not require physical
purchase of the currencies, but rather involves contracts for amount and
exchange rate of currency pairs.
The advantageous thing about the Forex market is that regular daily
fluctuations – in the regular currency exchange markets, often around 1% - are
multiplied by 100!
How risky is Forex trading?
You cannot lose more than your initial investment (also called your “margin”).
The profit you may make is unlimited, but you can never lose more than the
margin. You are strongly advised to never risk more than you can afford to
lose.
How do I start trading?
Using a Trading Platform you must first register and then deposit the amount you wish to have in yourmargin account to invest. Registering is easy and most accept payment via most major credit cards, PayPal, Western Union. Once yourdeposit has been received, you are ready to start trading.
How do I monitor my Forex trading?
Online, anywhere, anytime. You have full control to monitor your trading status, check scenarios, change some terms in your Forex deals, close deals, or withdraw profits.

Welcome to the Forex Trading Guide

With the help of this guide, you will soon be ready to start trading Forex.

I will also include in this guide information on forex trading systems that are widely available online along with video's from youtube and other video sources that can help you to get started.

I wish you success in your trading, and hope you find this forex trading blog interesting, helpful and enjoyable.

Before you start, please remember:

• Forex trading (OTC Trading) involves substantial risk of loss, and may not be suitable for everyone. Before deciding to undertake such transactions, a user should carefully evaluate whether his/her financial situation is appropriate for such transactions.

• Always ask your Forex dealer (the TRADING PLATFORM you wish to trade with) the questions listed below. Selecting the appropriate Forex TRADING PLATFORM is essential for success in handling your trading and monitoring your activity, as well as maximizing profits, while minimizing losses and costs.

QUESTIONS TO ASK:

When choosing a Forex broker or platform, there are many different considerations to think about, and a lot of questions to ask each of them. Those raised below are presented as a guide you should use in your search for the right broker or platform for you

Personal account management.
Is anybody there? Are there real people behind the phone (or the e-mail box)? Do I have a one-on-one relationship with an individual who knows my account and is able to provide continuity of service online?

Live training and one-on-one help.
Do they offer professional assistance and tools?

Guaranteed Rates and Stop-Loss.
Is it “around” or “near” the rate I set, or exactly on it?

Any software download?
Is the internet platform friendly and easy to use? Do I need to download any software? Am I restricted to a specific computer terminal?

Instant deposit with a credit card.
Am I bound to wait for banking hours, or can I deposit trading margins with my credit card? Will I miss an opportunity if I decide to change the margins in the middle of the night? When I profit, can I withdraw the profits to my credit card account?

Start trading without delay.
How time-consuming is the account set-up process? Can I immediately register, deposit the margins for the deal, and start running?

Margin trading with as little as US$100.
What is the lowest amount I can risk?

Can I Freeze the rate I see?
When I select a rate for a deal, can I "FREEZE" it for a few seconds before I make my final decision?

No hidden costs.
Are all costs readily apparent? Am I charged commissions on trading? Am I charged commissions on withdrawals of profit?

Security and Safety.
What kind of safety and security measures are taken to protect my transactions?

Special terms for frequent traders.
Can the trading terms I am offered be tailor-made to my personal preferences?

Competitive spreads.
How many "pips" are offered in the spread?

Live, real-time streaming quotes .
Are the rates presented the most current? Is the information presented in my account status window updated at the same time so my position is always current?

Refer-a-friend incentive program.
Will I be credited and enjoy benefits for referring friends to the trading platform?

Business partners and reputation.
Who are their business partners? Who is their liquidity supplier? Is it a known international bank? Who do they work with regarding data security?

Full control with online access.
Can I control my Forex account from anywhere on the globe, from any computer, at any desired time, 24x7x365?

Full Transparency.
May I generate detailed reports with the click of a button, as well as track all transactions performed in my Forex account, whenever I wish?