Forex

What is Forex?

Don't know, ''What is forex''? 

CPRON is here to assist you. Step by step guidelines presented by Sohel Adi.

Forex refers to: 

Foreign Exchange Market or 
Foreign Currency Market. 

FX Market, in a short form, is also well known. 

Let's have a deep look. 

Forex is a ''Decentralized'' Global Market for the traders' who care to trade currencies.

Despite the fact that CFD, Metals and Indices are also a vital part of modern Capital Market. 

According to a Wiki data, it is the largest Money Market in the world. 

As per Bank for International Settlements, the primary global results from the 2013 triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that: 

trading in foreign exchange markets averaged $5.3 trillion per day in April 2013, which is up from $4.0 trillion in April 2010 and $3.3 trillion in April 2007. As of April 2010, an average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over $3.21 trillion daily volume as of April 2007.

Thanks for being with cpron.blogspot.com. To learn more keep an eye on Computer Professionals Network -a gateway to Outsourcing in Bangladesh.

Sohel Adi is founder of CPRON -a Dhaka based Outsourcing Agency that provides Websites, SEO, SMM and a full suite of digital services to small and medium scale of businesses. CPRON also provides e-training for Business Owners, Executives and Students. CPRON offers Custom Training to Companies/Agencies around the GLOBE (preferably Bangladesh) on SEO, Content Strategy and other Digital Marketing disciplines.

          You may find Sohel Adi on Facebook, Pinterest, Twitter, Google+ and Linkedin.

Why to choose Forex?

Confused, ''Why to choose forex''? 

CPRON is here to assist you. Step by step guidelines presented by Sohel Adi.

First of all, forex is Flexible. For this, Online Forex Trading has become very popular in the past decade. It offers traders several advantages:

FOREX NEVER SLEEPS

Trading goes on all around the Globe during different countries' business hours. You may, therefore, trade major currencies, commodities at any time; 24 hours a day, 5 days a week. Since, there are no set exchange hours; it means that there is also something happening at almost any time of the day or night.

GO LONG OR SHORT

Unlike many other Monetary Markets, where it can be difficult to sell short, there are no confines on shorting currencies. If you think a currency will go up, just buy it. If you think it will fall, just sell it. This means, there is no such thing -it's a bear market. In forex, you can make (or lose) money any time.

LOW TRADING COSTS

Most forex accounts are made up of low, viable commissions and super-tight spreads. You can trade the direct quotes from any liquidity providers with no hidden markups.

UNMATCHED LIQUIDITY

Forex is a $5.3 trillion a day market, with most concentration on only a few currencies, where there are always a lot of people trading. This makes it ''typically'' very easy to get into and out of trades at any time (even in large sizes).

AVAILABLE LEVERAGE

Because of the deep liquidity available in the forex market, you can trade forex with a considerable leverage (up to 50:1). This may allow you to take advantage of even the smallest moves in the market. Leverage is a double-edged sword, as it can significantly increase your losses as well as your gains.

INTERNATIONAL EXPOSURE

As the World becomes more and more Global, investors hunt for unique opportunities anywhere they can. If you eager to take a broad opinion and invest in another country (or sell it short!), definitely forex is an easy way to gain exposure while avoiding vagaries such as Foreign Securities Laws and Financial Statements in other languages.

Thanks for being with cpron.blogspot.com. To learn more keep an eye on Computer Professionals Network -a gateway to Outsourcing in Bangladesh.

Sohel Adi is founder of CPRON -a Dhaka based Outsourcing Agency that provides Websites, SEO, SMM and a full suite of digital services to small and medium scale of businesses. CPRON also provides e-training for Business Owners, Executives and Students. CPRON offers Custom Training to Companies/Agencies around the GLOBE (preferably Bangladesh) on SEO, Content Strategy and other Digital Marketing disciplines.

          You may find Sohel Adi on Facebook, Pinterest, Twitter, Google+ and Linkedin.

How to Make Money from Forex?

 

Want to know, ''How to Make Money from Forex?'' 

 

CPRON is here to assist you. Step by step guidelines presented by Sohel Adi.

In the Forex Market, you just buyor sell currencies.

“Placing a trade in the ForeignExchange Market is simple.”

The mechanics of a trade are very similar to those found in other markets (i.e. the Stock Market); 

So if you have any experience in trading, you must be able to pick it up pretty quickly.

The main objective of forex trading is simply toexchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.

For an example:

Trader’s Action	EUR	USD
You purchase 10,000 euros at  the EUR/USD exchange rate of 1.1800	+10,000	-11,800*
Two weeks later,  you exchange your  reserved 10,000 Euros back  into U.S. Dollar at the exchange rate of 1.2500	-10,000	+12,500**
Finally,  You earn a profit of $700	0	+700

*EUR 10,000 x 1.18 = US $11,800

** EUR 10,000 x 1.25 = US $12,500

An exchange rate is simply the ratio of one currency valued against another currency. For an example, the USD/CHF exchange rate indicates how many U.S. Dollar can purchase 1 Swiss Franc, or how many Swiss Franc do you need to buy 1 U.S. dollar.

 

How to read a Forex Quote?

Currencies are always quoted in pairs, for instance GBP/USD or USD/JPY. The reason why they are quoted in pairs is because in every foreign exchange transaction, you are simultaneously buying one particular currency and selling another.

Here is a snapshot of a foreign exchange rate for GBPvs USD:

The first listed currency to the left of the slash (“/”) is known as the base currency (here, the British Pound), while the second one on the right is called the quote currency or counter (here, the U.S. Dollar).

When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In aforesaid example, you ought to pay 1.51258U.S. Dollars to buy 1 British Pound.

When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In aforesaid example, you may receive 1.51258 U.S. Dollars when you sell 1 British Pound.

“The base currency is the basis for the buy or the sell.” 

If you buy EUR/USD, this simply means that you are buying the base currency and simultaneously selling the quote currency. In short, you are buying EUR and selling USD.

You would buy the pair only if you believe the base currency will appreciate (gain value) relative to the quote currency.

You would sell the pair only if you think the base currency will depreciate (lose value) relative to the quote currency.

 

Long/Short

“You should determine whether you want to buy or sell.”

If you want to buy (which actually means buy the base currency and sell the quote currency), that means you want the base currency to rise in value and then you would sell it back at a higher price. In traders' lingo, it is called “goinglong” or taking a “long position.” Just keep in your mind: long = buy.

If you want to sell (which actually means sell the base currency and buy the quote currency), that means you want the base currency to fall in value and then you would buy it back at a lower price. In traders' lingo, it is called “going short” or taking a “short position”. Just keep in your mind: short = sell.

Bid/Ask

“Getting quoted with two prices is obligatory”

All forex quotes are quoted with two prices: the bid and the ask. For the most part, the bid is lower than the ask price.

The bid is the price at which your broker is willing to buy the base currency in exchange for the quote currency. That means the bid is the best available price at which you (the trader) will sell to the market.

The ask is the price at which your broker will sell the base currency in exchange for the quote currency. That means the ask price is the best available price at which you will buy from the market. Another remark for ask is the offer price.

The differentiation between the bid and the ask price is popularly known as the spread.

On the EUR/USD quote above, the bid price is fixed at 1.34568 and the ask price is fixed at1.34588.

Now simply think yourself, how the broker has made it so easy for you to trade away your money.

If you wish to sell EUR, you just click “Sell” and you will sell euros at exactly 1.34568; if you wish to buy EUR, you just click “Buy” and you will buy euros at exactly 1.34588.

Thanks for being with cpron.blogspot.com. To learn more keep an eye on Computer Professionals Network -a gateway to Outsourcing in Bangladesh.

Sohel Adi is founder of CPRON -a Dhaka based Outsourcing Agency that provides Websites, SEO, SMM and a full suite of digital services to small and medium scale of businesses. CPRON also provides e-training for Business Owners, Executives and Students. CPRON offers Custom Training to Companies/Agencies around the GLOBE (preferably Bangladesh) on SEO, Content Strategy and other Digital Marketing disciplines.

          You may find Sohel Adi on Facebook, Pinterest, Twitter, Google+ and Linkedin.