The foreign exchange market is the largest market and the the biggest and most liquid in the world. To put forex trading in plain English, it is when you buy one currency while selling another.
The market runs 24 hours a day. For example the Australian market starts at 04:00 early in the morning, then the Japanese market at 14:30. Next is the European market at 20:30 and the last one to open is the American market which will close at 04:30 the next morning.
When is the best time to trade the forex?
The best time to trade the forex is between 3 AM TO 11 AM EST. The trading volume is much greater at these times because the New York and London sessions overlap.
What Currencies are traded?
EUR/USD Daily range average : 110-120 points GBP/USD Daily range average : 180-200 points USD/CHF Daily range average : 120-130 points USD/JPY Daily range average : 80-90 points
Is there a pattern to trading?
Yes, usually if the Euro/USD and GBP/USD is going high than the USD/JPY and USD/CHF is going the other way. The opposite is also true. This is not an absolute rule but one worth paying attention.
Why should you consider trading the forex?
Unlike the stock and options markets there is no commission. It is also traded throughout the day and is a much more liquid market. Every pip is worth $10 You can start with as little as $500 There is a lot of movement in this market. It does not have the day trading money requirements that stocks or options do.
What are the risks?
As with any investing, you must only trade with what you can afford to comfortably lose. This is a very fast moving market. You can make a fortune with it or lose your shirt, if you do not know what you are doing.
Caterina Christakos is a forex trader and entrepreneur. To learn of an opportunity to make money and learn how to invest it in the forexclick here
Author: seductiondiva
Author Bio:
Caterina Christakos is a forex trader and entrepreneur. To learn of an opportunity to make money and learn how to invest it in the forexclick here
