FOREX ONLINE TRADING

Forex online trading has a very close relation with internet revolution, where internet caused a major change in the way forex trading is conducted throughout the world. There are many online Forex trading websites on the Internet today. Through these sites you can learn the history of Forex trading, get in-depth guides on how to do it, participate in Forex courses, get insightful tips on being successful etc.

The Internet allows traders to trade 24 hours a day, 5 days a week. There are also a number of Forex brokers online to help improve your Forex trading performance, but offering advice on Forex trading strategies.

Before the advent of the internet, forex trading was conducted via fax, phone orders or in-person – posted to brokers or banks. Therefore most activities could be executed only during business hours.

The following steps are required before you can start the Forex online trading:

- Register at the trading platform

- Deposit funds for trading

The specific requirement are varies, depend on each trading platform. Many forex market makers require the download and installation of software specific to their own trading platform.

Start forex trading

Before starting the forex trading, you have to know better on the logic behind forex trading, the basic concepts, terms and also the risk. Engaging in forex trading can contain a substantial degree of risk. Trading forex may result in a substantial or complete loss of funds and therefore should be only undertaken with risk capital.

The definition of risk capital is funds that are not necessary to the survival or well being of the user. But don’t worry; you can learn all necessary things about forex before you start the forex trading. Many resources are available on the internet

To learn to trade Forex, investors should select a well-developed and comprehensive program that, at minimum, explains how to:

*evaluating the currency trades

*Using trend analysis indicator

*Recognize and capitalize on market trends

*Assessing trending signal

*Minimize risk and protect open positions

*Build a consistent and valuable portfolio

*React to major economic events impacting global currencies

*Setting price objectives for winning trades

*Handling stop-loss and take-profit limits

A number of the websites that you can sign up with to do this offer free trial accounts to help you learn before you invest your money. While you won’t make any money in the trial accounts if you do well, it is just pretend money essentially but with the real market conditions.

Finally, if you wish to start forex trading, you must first register and then deposit the amount you wish to have in your margin account to invest. Registering is easy, all you have to do is fill all the form honestly. For the payment it can be accomplish via most major credit cards, pay pal and western union. Once your deposit has been received, you are ready to start trading on forex.

Don’t attempt to trade in forex trading until you receive the training needed to become a successful trader. There are substantial earnings to be made in the foreign currency market, but trading in forex is for the WELL- INFORMED.

Introduction to forex trading

Almost all internet marketers have heard of forex trading. The term of forex trading is also known as FX, FOREX, and foreign exchange. All these names are related to the transaction of one currency for another, for example you might buy Euro with US dollar or you might sell Japanese Yen for Canadian dollar.

On forex trading, traders buy and sell currencies with the hope of making a profit when the value of the currencies changes (fluctuate) in their favour, whether from market news or events that takes place in the world. Basically buy low and sell high.

Forex trading has been around for years. It is become the biggest and the fastest growing market on earth. The estimated amount of daily volume is 1.5 trillion (US) dollars. The participants on this market - forex trading- are central and commercial banks, corporations, institutional investors, hedge funds and individuals.

Unlike other financial markets, forex trading allows investors to respond to currency fluctuations caused by economic, social and political events instantaneously, at the time that events occur, day and night. The market only closes on weekends.

Forex trading is an over-the counter (OTC) market. This means buyers and sellers do not meet in central locations to make exchanges. Instead transactions are completed by phone, fax, and email or through the websites of brokers specializing in this market.

On forex trading, currencies are always traded in pairs. Transactions always involve selling one currency and buying another. If you believe the euros would gain against the dollar you would sell dollars and buy euros.

Leverage (ratio of investment to actual value)is forex advantage. Using $1000 to buy a forex contract with a value of $ 100,000 is “leveraging” at a 1:100 ratio. The $1000 is all we invest and all we risk, but the gains we can make may be many times greater.

How risky is forex trading? You cannot loose more than your initial investment (margin). You are strongly advised to never risk more than you can afford to loose