Basic Concepts I: Introduction

[davidjss]

The Foreign Exchange (often abbreviated as Forex or FX) market is the largest market in the world with daily trading volume of over 1.9 $trillion in September 2004*. With its high liquidity, low transaction cost and low entry barrier, the 24-hour market has attracted investors around the world.

The following articles aim to introduce the key concepts in forex trading, the terminologies and the characteristics of the FX market.

The articles first introduced the concept 'spread', which is the most important transaction cost in forex trading, how the spread is presented in the price quotes, what is the significance of it and what is the trick behind it. As most of the retail customers choose to trade forex with margin account, the articles then introduced what is margin trading, what is the significance of margin, how to trade a margin account and how to choose the correct leverage ratio.

In trading online forex, there are many types of orders that you can make to facilitate your trades. The articles then explained the rationale behind each type of orders, when and how to use each of them.

Being one of the most actively trading markets, the forex market is yet, may not be the most well known market. The articles then gave a little historical background and explained the nature of the forex market, and made an overall comparison of various trading markets. It also discussed the pros and cons of trading forex market and what are the recent trends.



Like any other trading instruments, traders should understand the terminologies and the basis of the market before he/she starts real trading. The above articles serve as an essential beginners' guide to the world of forex trading.

 

[nasim39]

Forex is currency market which is operating on the international level. It is operating round the clock on weekdays from 2 o’clock a.m. Monday to 2 o’clock a.m. Saturday. Every day at this market purchase of various currencies – the euro (EUR), franc (CHF), dollar (USD), Australian dollar (AUD), Yen (JPY), pound (GBP), Canadian dollar (CAD), etc takes place.

 

[Syrine22]

Yeah that's true and this is what every willing succeed trader must to know.we should endeavour to know that when we wish to start forex we should be knowing that we would either be losing or gaining funds.

 

[Razor1911]

The forex market is a very huge market and thats what we can say from the description. These are the basic things that a trader should always learn first before jumping into this risky business. And without having such knowledge a trader will find it hard to succeed in forex.

 

[Tirus]

The earning potential in forex is rather huge but it would depend on the dedication of the trader on how far you can go with your trading. Not many people are getting succesful though and its got to do with the failure to prepare themselves well before getting into trades by using the available learning resources and tools at their disposal.

 

[Cutiekc]

The earning potential in forex is rather huge but it would depend on the dedication of the trader on how far you can go with your trading. Not many people are getting succesful though and its got to do with the failure to prepare themselves well before getting into trades by using the available learning resources and tools at their disposal.

Theres an acticle i read online which says that 90 percent of newbie fails,which means only 10 percent gets successful,this makes me wonder how many people are making money with forex trading,but i also believe that those who are successful really worked hard for it.

 

[Syrine22]

We dont expect to reap from where we never at any point sowed.we must able to sow proper learning before we would be having every chance of earning likewise and that is what we would be reaping.Every newbie must get to know this.

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We dont expect to reap from where we never at any point sowed.we must able to sow proper learning before we would be having every chance of earning likewise and that is what we would be reaping.Every newbie must get to know this.

 

[Daisy]

Forex is a profitable online business for anyone around the globe. Its great for those that do not have jobs and it can be profitable and all is according to the trader. If he is knowledgeable then he will make money. If he's not then he will lose some of it. Forex carries high risk so you should know that before you enter the market. Also, you have to learn how to manage loss and risks so you don't lose all of your money.

 

[Pettyeve]

The thread is informative. Forex is growing everyday by day because there are now many people who are participating in the business more than before. For example, now, there are over 3.5 trillion dollars turn over in the forex market everyday. This thing makes it the highest financial market in the world.

 

[kasual]

Chance to get high profit widely open since traders have option to use high lot size per trading. However, require to invest in high amount if traders want to conduct aggressive trading. Small capital not support traders to conduct aggressive trading. Better to traders who use small capital take conservative approach and remain patient with small profit.

 

[Faal]

Thank you very much for your basic introduction! Really, day by day the popularity of Forex business has been increasing very rapidly in all over the world! Forex is the unique way of money making! But, generally new traders start their trading career with huge losses!

 

[LalRemigiusz]

How do you prove that each broker's statement listed on the site is correct?

 

[Svetlana Loboda]

How do you prove that each broker's statement listed on the site is correct?

Agree with you; we traders can’t rely on one site I mean review type site but till now FPA is the number one Forex review site!

 

[Mazi]

Well, certainly brokers will use all means available in order to attract as many customers as possible. This is why you should educate yourself to know what to search and ask from one broker. It is your responsibility not the one of your broker

 

[Lee Mark]

Well, certainly brokers will use all means available in order to attract as many customers as possible. This is why you should educate yourself to know what to search and ask from one broker. It is your responsibility not the one of your broker

Broker is an important issue! In addition, traders should use only regulated Forex brokers; non-regulated brokers are very dangerous to use.

 

[Tom Latham]

Thanks for this thread! New traders need to start from the zero level I mean from the beginning stage! Then they should go for the advance level!

 

[Eduardo Lucchese]

Learning basics is very much important for every newbie.

 

[Darragh Bell]

Forex market is the place from where you can earn a huge amount of money with your knowledge and skills.

 

[Alexander Hudson]

Forex market is the place from where you can earn a huge amount of money with your knowledge and skills.

I completely agree with you.

 

[Mark Dahl]

Learning basics is very much important for every newbie.

True. But newbies often show less interest in learning.