1. Bid: It is the price at which a buyer has offered to buy the currency.
2. Ask: It is the price at which a seller has offered to sell the currency.
3. Spread: It is the difference between the bid price and the ask price.
4. Intraday: Refers to all positions that are opened and closed at anytime during a normal trading day.
5. Overnight position: Refers to all positions that are active at the end of the trading day and are carried over to the next day for trading.
6. Long position: In a long position, the trader buys a currency at a particular price with the intention of selling for a higher price at a later date.
7. Short position: In a short position, the trader sells a currency anticipating that it will depreciate.
8. Limit order: A limit order is an order with restrictions in regard to the maximum price to be paid or the minimum price to be received.
9. Stop loss order: In a stop loss, an open position is automatically liquidated at a specified price. This strategy is used to limit losses
The forex market is frequently referred to as the inter-bank market because banks dominate it. However, in recent years the number of other market participants such as multinational corporations, money managers, and speculators has increased significantly, particularly so with the advent of the internet permitting trading on a 24 hour basis.
In the FX market there are multiple dealers whose business is to unite buyers and sellers. Each dealer has the ability and the authority to execute trades independently of each other. This structure is inherently competitive as traders are faced with a choice between a variety of firms with an equal ability to execute their trades.
Friday, October 26, 2007
Common terms used in forex trading:
Posted by Muhammad Akmal at Friday, October 26, 2007 0 comments
Friday, October 19, 2007
Advantages of Forex Trading
Are you new to trade currency? Are you giving up due to your past trade? Get yourself to know the primitive advantages of Forex trading. And you are also essentially advised to refer to the risk-bearing.
- Two Way Market where traders can trade in Bull and Bear market
- Margin Trading 100 : 1 leverage
- Low Account Balance for entry
- Can work in odd work due to 24 hours a day from Sunday night to Friday noon
- Flexible transaction sizes
- Very dynamic and trendy
- No worry about bad fills due to price gaps
- Can practice at online simulation until you become expert
Posted by Muhammad Akmal at Friday, October 19, 2007 0 comments
What are the Secrets in Forex Trading?
More than 100 million people in the world are looking for profitable investment. We love talking investment because this is the energyless but high profit gain business. Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.
- Use Future data to justify market trend.
- Pivot Program shows entry & exit signals.
- Familiar Chart Patterns and Trend lines.
- how big dogs are doing?
- euro vs USD Tricks.
- Be Smart to Filter Various Currency pairs.
- Confident to Control Up and Down Trendy.
- Avoid Pitfalls of Dumb money.
- Intelligent stop loss strategies implementation.
- AIME methodology
- History is your tips.
- Hedge currency Trades .
Posted by Muhammad Akmal at Friday, October 19, 2007 0 comments