It’s easy to win in Forex … really? This question has two answers.
One: when operating in a demo account is very easy to win.
Two: when operating in a real account is more difficult.
In principle, operate with real money is a most difficult task to operate in a test platform.
And why the difference? (more…)
Foreign Exchange Market (Forex) is the arena where a nation’s currency is exchanged for that of another at a mutually agreed rate. It was created in the 70’s when international trade transitioned from fixed to floating exchange rates, and nowadays is considered to be the largest financial market in the world because of its tremendous turnover.
Probability of earning on Forex is based on the fact that every national currency is a good, as well as wheat or sugar, and a medium of exchange, as gold or silver. As the world is changing so fast, economic conditions of every country (production, inflation, unemployment etc) are getting more and more dependant on each other, as a result, the rate of a currency changes against other currencies. This is the main reason of the process of rate fluctuations. (more…)
Commercial banks
They execute the main volume of currency operations. Other market participants hold their accounts in banks and make necessary conversional, depositary and credit transactions on them. Banks cumulate (through operations with clients) market requirements of currency conversions and funds attraction/depositing and refer with them to other banks. Besides filling clients’ requests banks can make transactions independently at own their expenses.
Finally, Forex represents a market of interbank transactions, and under currency and interest rates fluctuations we should consider interbank foreign exchange market. (more…)
There are three main reasons why is the foreign exchange market, namely all countries in the world manage their foreign exchange reserves and intervene in the market, several organizations also buy and sell goods and services so that they use foreign currency to compromise and finally large number of investors speculate with them for a profit.
It is known that all operators analyze the currency market in different ways. Some operators prefer to assess what is called “fundamental analysis or macroeconomic, this implies considering and evaluating various economic issues like interest rates of the various central banks, trade balances of the various States and the economic situation of each country in particular that is reflected by economic indicators like the unemployment rate, with gross domestic product, with consumer confidence, etc. (more…)
The currency exchange market in the industry is the largest and fastest growing on earth, is even bigger than NASDAQ! The total revenue is greater than 3.5 trillion dollars daily. The participants in this market are central and commercial banks, corporations, institutional investors, investment funds, free, and individuals like you and me.
Forex trading is a non-delivery trade: foreign exchange market are not physically, but to be more precise, there are foreign exchange contracts to be agreed and implemented. (more…)
ForexEl plan-de-leveraging in Forex is very different from the kind of leverage it can find in other trading or investment.
When you leverage, borrowed in a margin for increasing the size of its operation over the funds they have available in your account.
In shares and other securities, you can leverage with the trading in your account so you can afford to double its purchase.
However, in Forex, is simply unprecedented double in most cases. When we talk about leverage in Forex, we usually refer to a four to ten times higher than the balance of your account.
With Forex, brokers can offer you this extremely high leverage because the market is so fluid, almost never have to worry because you will owe money if the transaction goes wrong. (more…)
I agree that per definition all retail brokers are scammers. But that’s per definition only.
We, people who have less than $10,000,000 (ten million dollars) are considered as retail traders. And we are only allowed to trade using retail brokers. We are not allowed to trade in institutional broker. If all retail brokers are scammers, then we are all doomed.
In fact, there are people who have been living comfortable by trading full time, and their account size is nowhere near 10 millions.
I also don’t think that ECN brokers are also doing this. ECN gains no profit / loss by playing with our account. (more…)
In simple words, the difference between NDD, Market Maker and ECN are:
Market Maker = Not real market. Broker is against you !
NDD maybe NO dealing desk = Market Maker ! Don’t be fool !
NDD = NON dealing desk = No boker involved
ECN = Real trades, but price fast
Guarentee price but can cheat you is Market Maker
Guarentee price if hit like market maker, but NON dealing desk is NDD
Not guarentee price but real market trade is ECN
Let me give you the difference’s sample:
Market Maker: Online Retail Broker who will take the other side of your trade (aka: they trade against you (more…)