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The time in New York is now

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Forex Trading Free Tutorials Tips Make Money!

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Terms used in the Forex Market.                                                                       

                                                                                                                                            

Foreign Exchange (Forex)
The simultaneous buying of one currency and selling of another.

Foreign Exchange Market
The market in which foreign currencies are traded ,the exchange rates are also determined here.

Spot Market
The spot market is also called the "cash market" because prices are settled in cash on the spot at current market prices. The spot foreign exchange market is the world's largest and most liquid financial market.

Exchange Rate
The value of one currency quoted in terms of another. For example if the GBP/USD exchange rate is 1.8000, one British Pound can be exchanged for $1.8000 US Dollars.

Currency Pair
Currencies are always quoted in pairs. This pair makes up the exchange rate. Whenever one is bought, the other is sold, and when one is sold, the other is bought.

Base Currency
The first currency in the pair. For example: in the EUR/USD pair, the Euro is the base currency.

Counter Currency
The second currency in the pair. For example: in the EUR/USD currency pair the USD is the counter currency.

Spread
This is the difference between the bid and ask price of a currency shown in pips. This is the cost of trading currency, a smaller spread or difference between the bid and ask price the better it is for the trader. For example: If the USD/CAD was quoted at 1.1217 / 1.1223, this means the spread cost is 6 pips.

Pip
A Pip is the smallest price increment in a currency. For example, a move in the EUR/USD from 1.2800 to 1.2801 equals one pip (a difference of 0.0001). Alternatively in the USD/JPY, a move from 130.51 to 130.52 equals one pip (a difference of 0.01).

Pip Value
The value of a pip in terms of dollar value. To determine what a pip is worth in dollars for a certain amount, for example 100,000 Euros, you can use this formula:
(One pip in the proper decimal format divided by the currency exchange rate) multiplied by the amount your trading, for example a standard lot size of $100,000.
Using the EUR/USD as an example you would have: (0.0001/1.3000) × 100,000 = 7.69 Euros. But we want the pip value in terms of USD, so to get this we multiply 7.69 by the EUR/USD exchange rate of 1.3000: EUR 7.69 × 1.3000 = $10.

Using the USD/JPY
as the next example we would have: (0.01/130.50) × 100,000 = $0.77 (77 cents) per pip. And since the USD is the base currency in this example, we don’t need to multiply it by the exchange rate as we did in the previous example.

Bid
The price at which a broker/market maker is willing to buy a currency.

Ask
The price at which the broker/market maker is willing to sell a currency.

Long Position
This is the buying of a currency with the expectation that the currency will rise in value.

Short Position
This is the selling of a currency with the expectation that the currency will fall in value.

Limit Order
An order placed to take profits at a predetermined level.

Stop Loss Order
An order placed to take profits at a predetermined level.

Stop Entry Order
An order to buy above or sell below the market rate at a predetermined level, with the belief that the price will continue in the same direction once this level is breached.

OCO Order
An OCO order is commonly used in conjunction with a stop loss order, and a limit order placed on either side of the current market price. For example, an OCO order could be used with an existing long position where a stop loss order would be placed below the market to limit loss, and a limit order would be placed above the market to take profits. When one of these orders are executed, the other is cancelled. Hence the name “One Cancels the Other” (OCO)

Broker
A company that matches buyers and sellers together for a fee. In the case of the forex market, this fee is in the form of a spread

Counterparty
One of the other participants involved in an exchange deal

Manual Execution
An order which is manually executed by human intervention

Automatic Execution
This type of order is executed automatically without human intervention

Rollover
Most trading in forex occurs in the spot market. Any transactions done here, are due for settlement in two business days. This date is also referred to as the value date, or delivery date. On this date the counterparties take delivery of the currency they have bought or sold. Any positions still open at this time are automatically rolled forward to the next value date. Most brokers will do this for you automatically. This must be done so the actual delivery of the currency can be avoided, since most of the time you are only interested in making a profit from the price changes, not actually wanting that currency delivered.

Market Maker
A Market Maker provides liquidity in a financial market, and stands ready to buy or sell currencies, by displaying a bid and ask price. This is called ‘making a market’. In terms of forex trading, a broker would be considered a market maker.

Standard Account
A standard account allows you to trade a contract size of 100,000 units, 10 times the amount offered in a mini account.

Mini Account
The mini account allows you to trade in smaller contract sizes of 10,000 units which is 1/10th the size of the standard account. The mini account allows traders to become familiar with trading currency with less overall risk.

Volatility
The rate at which the price moves up and down. If the price of say the EUR/USD moves up and down rapidly over a short period of time, you could say it has volatility. On the other hand if the price of the EUR/USD moves a very little amount up or down mostly staying still, then you could say it has low volatility

Bullish
A belief that a currency will rise in value

Bearish
A belief that a currency will fall in value

Margin
This is the amount needed, much like a deposit, to ensure against trading losses. Different brokers have varying margin requirements. Margin is directly related to leverage, as the amount of leverage a broker offers defines the amount of margin you will have to provide to take a position in the market. For example: in the leverage ratio of 50:1, the “1” signifies the amount of capital the trader has invested of his own money known as margin. And the number “50” in this ratio signifies the amount a trader has borrowed in relation to how much they have provided in margin.

Liquidity
Liquidity generally refers to the ease in which a trader can buy and sell a currency. A higher level of trading activity will give you more liquidity. In general, the higher the liquidity of a currency, the easier and faster it is to have your orders executed at current market rates.

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Where to Get Forex Training

For those of you who are interested in forex trading, you may want to start off by getting some good forex training. Forex training is a necessity for anyone with this interest. This is because a lot of money is involved in forex trading. If you don't get some forex training, you are bound to lose a lot of money.
Some of you may not even know what forex trading is. If you don't know this, you defiantly need some forex training. Forex stands for foreign exchange. Forex trading is basically the exchange of one countries currency for another countries currency. This is done simultaneously in hopes of gaining a profit.
You can get forex training from several different places. The first place you should get forex training from is online. There are many websites that offer free forex training. The forex training these websites offer is both reliable and accurate. The forex training on these websites often offers a free demo account to teach you how to trade without actually using any real money.
A second place to get Forex training is at your local college campus. Forex training courses at college are usually inexpensive and very thorough. The forex training courses offered should also include hands on experience with trading, to help you get the edge. You can also get some books on forex training or research forex training at your local library. The best place to get forex training is from someone who is already involved in forex trading. The forex training these individuals provide will be more realistic for you and give you different aspects of the forex trading game.
The forex training you get should first start with learning how the foreign trade market works. The trade market is always changing, so you need to understand it first. The second part of your forex training should be about risk control. You never want to invest more than you can afford. The right forex training should teach you how to cut your losses and have less risks of failure. Next, your forex training should teach you how to open and manage a forex trading account. But this should be done with a demo account. All forex training should be done this way first, before you try the real thing.
With all of this in mind, you should be able to find some good forex training. Learn the ropes of forex trading and take the time to learn it well. Be sure to try a demo forex trading account before you start a real account. With the right forex training, you will soon be on your way to a profitable way to supplement your income.

Source: ArticleTrader.com

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Forex trading can be like day-trading

Forex trading, or foreign currency trading, has become a bit of a craze of late, especially since it is something available to anyone who owns a computer. And anyone who is willing to put in some training time can profit from forex trading.
The forex market finds traders from all around the globe monitoring currency fluctuations, not unlike the way a day trader may monitor a stock's fluctuation on the Dow Jones.
In forex trading, a trader will pair two types of currency, for example the U.S. dollar and the British pound. As