Forex Trading

Online Forex Trading Introduction

Published on 2009-02-04 14:24:00

The online Forex market, also known simply as Forex, FX or the foreign exchange market is the biggest trading market in the world, with daily Forex trading that exceed $2 trillion.Even tough we are talking about a huge market, Forex trading is quite simply - the buying of one currency while at the same time selling of another currency. If the trader can predict correctly which currencies will drop and which will rise - he will benefit from his investment.There are a lot of benefits in Forex inve

The Forex Trading Bid & Ask Prices and Spread

Published on 2009-02-04 14:22:00

This page covers everything you need to know about the bid and ask prices in the online Forex trading market, From the definition of Forex bid & ask prices, to the use of the bid & ask spread.A Forex Trading Bid price is the price at which the market is prepared to buy a specific currency pair in the Forex trading market. This is the price that the trader of Forex buys his base currency in. In the quote, the Forex bid price appears to the left of the currency quote. For example, If the E

How to Use Forex Trading Limit and Stop Orders

Published on 2009-02-04 14:22:00

In this section we will explain about the different limit order and stop orders that are available and are used for Forex trading strategies. Limit and stop orders have a similarity to support and resistance levels, as they are also usually at the far edges of the currency price graph, and are set either to reap profits or prevent losses.Limit ordersForex Trading Limit entry orders are executed only if the currency price touches but not breaks the price you set. Limit orders are done when trader

How to Utilize a Forex Trading Margin Account

Published on 2009-02-04 14:19:00

Online forex trading on the margin means you can buy a large sum of foreign currency with actually paying only for a fraction of the investment. This means you pay much less for the currency you buy, by leveraging your initial investment. All of the online Forex trading is done one the margin, and the next example will make it clearer.For example, If you have $1,000 in a margin account that has a leverage ratio of 1:100, it means you can potentially buy foreign currencies worth up to $100,000, b

How to Handle Forex Trading Losses

Published on 2009-02-04 14:19:00

A smart online Forex trading investor should keep a close record of his trading losses. This is to make sure that the currency doesn’t drop, are updated with its development, and that you have the option to settle trading losses if you start to lose.To start writing records, first acquire a notebook for the sole propose of online Forex trading record keeping. In this notebook you should write a chart with the following titles:The trading dateThe Beginning balanceThe number of tradesThe pairs t

Moving Average Convergence Divergence (MACD) Simplified

Published on 2009-02-04 14:16:00

Moving Average Convergence Divergence (MACD) is one of the most used technical analysis indicator in the Forex market commonly known as a lagging indicator because it is based on the moving average but is more sensitive of the price movements.Moving Average Convergence Divergence (MACD) is one of the most used technical analysis indicator in the Forex market. It is a lagging indicator because it is based on the moving average but is more sensitive of the price movements. This economic indicator

What is an Average True Range (ATR)?

Published on 2009-02-04 14:15:00

Average True Range (ATR) is the moving average of the true range values. It is the indicator of market volatility. ATR was developed by J. Welles Wilder and introduced in his book ‘New Concepts in Technical Trading Systems in 1978’; Commodities were frequently more volatile than stocks in 1978. These commodities were subjected to gaps and limit moves. At that time Wilder though to design ATR with commodities and daily prices. So Wilder sought to account for gaps, limit moves, and small high-

What are Accumulation Distribution and the Formula to Compute It?

Published on 2009-02-04 14:13:00

Accumulation Distribution applies volume to substantiate price movements or inform of weak movements that could result in reversing the prices.• Accumulation: Volume is considered to be accumulated when the day's close is higher than the previous day's closing price. This is called "accumulation day"• Distribution: Volume is distributed when the day's close is lower than the previous day's closing price. Many traders call this term as "distribution day"Accumulation Distribution is an indicat

Forex Trading Trend Patterns - The Ascending and Descending Triangle

Published on 2009-02-04 14:12:00

These Forex trading trend patterns are similar to the symmetrical triangle figure, as they also occur after a certain Forex trading trend is followed. With these Forex trading pattern rapid rises and drops in currency price also occurs. The difference is that either the tops or the bottoms of the trend patterns stay the same.With Ascending triangles - the tops remain the same.With Descending triangles - the bottoms remain the same.Both ascending and descending triangles are right-angled triangle

Forex Trading Trend Patterns - The Double Top

Published on 2009-02-04 14:11:00

A double top is a type of Forex trading reversal patterns. A double top is recognized like so:- First you see a long rise in currency price.- This rise is followed by a top and a small drop, and a bottom.- Then another small rise appears.- The double top Forex trading pattern is complete when another top is formed and the currency starts to drop again.The last drop of the reversal pattern is a long one, and it indicates the trader to either liquidate the currency he already has, or perform a sel