The issue of direct access is an important one and it becomes more important the more short term your trading is. The market can change from a state of seeming paralysis to one of shocking volatility and activity in a flash. The length of time it takes between you deciding to enter an order and [...]
Forex or foreign Exchange or FX involves the buying and selling of one currency against another currency. They are always traded in pairs e.g. EUR/USD, USD/JPY. So when you are buying Euro dollars (EUR) you are also selling the US dollars (USD) in exchange for the Euro dollars. If you want to buy US dollars [...]
When you start trading in the Foreign Exchange market, you will notice that the prices for either buying or selling a currency pair always come in a pair of price quotes. One is called the ‘Bid’ (or Sell) and the other is called the ‘Ask’ (or Buy). You will notice the same in any other [...]
In the late 90’s, many financial company dominated the Forex Exchange Market. In the past several years the Forex Exchange Market has show a dramatic development. Nowadays private company are offering access to the Forex Market via internet data feed trading platform.
Private investors are going into Forex Market, with access to the same market [...]
In the last article on “9 Reasons on Why You Must Trade Forex (Part 1 of 2)” You have understand the:
1. Round the clock trading 2. No need to choose from too many counters 3. Liquidity 4. Good Leverage
Next you will understand more on why you must trade forex.
5. No Brokerage fee or [...]
Off-floor trader Rick Redmont gained his first experience trading stocks as a college student during the bull market of 1961. “I had $10,000, which turned into $20,000. I followed the Chartcraft (Inc.) point and figure book-but it didn’t really matter what you bought. The only thing that made you mad was if your friend’s stock [...]
To read a forex price quote consisting of two different currencies you have to note that the first currency is known as the base currency while the second currency is called the quote currency. Another point of note is that the first currency value is always 1 (one).
To further illustrate, the price quote or [...]
What is a Forex Call Option?
A forex option gives you the right but not the obligation to buy or sell a currency pair at a certain price on a certain date. The certain price in this case is called the ’strike price’. That is the option gives you the flexibility of choosing where you [...]
Wouldn’t it be great if we could buy an option with five months left until expiration and sell an option with 2 months left until expiration for the same price? You couldn’t lose. Well we can’t. I love options spreads so much I realized something very important. We can buy a spread that has a [...]
FACT: 95% of forex trader do not know what is forex options, 4% of forex trader know what is forex options but they think that forex options was too complicated for them and only 1% use forex options for trading.
Why Forex Options? Options allow you to have the right but no obligation to either [...]