Foreign exchange education---bid, ask and spread

Bid, Ask and Spread

The bid ,or buy; The Ask, or sell, offer

Spot quotations are bid (buy) and offer or ask (sell) rates at which a market-maker will buy and sell the base currency against another currency.

USD1=DEM1.4123/33

USD1=DEM1.4123/33

1: the big figure

23: bid

33:offer

23/33:the unit difference between two prices the spread which is usually about 10 pips as in this case.

The currencies involved:

USD=Base currency

DEM=Counter currency(Deutsche Mark)

Direct and indirect currency rates are quoted using the usual letter combinations but some of the currency pairs have their own terms.

GBP/USD is known as a Cable

USD/CHF is known as a Dollar-Swishy

USD/DEM is known as a Dollar-Mark

USD/FRF is Known as a Dollar-Paris

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Learn Forex-How Can Forex Traders Get a Good Forex Trading System?

It’s very important for Forex traders to find a great Forex trading system if they are exploring Forex trading or already trading. One aspect of the Forex trading system is considered the actual setup rules that often contain entry and exit techniques. However, Forex traders spend a lot of time developing these setup rules but neglecting other aspects, such as relative size of their profits compared to losses. Therefore, it’s important for traders to find a great Forex trading system.

How can Forex traders find a good Forex trading system? Many times, the original trading system should be expanded, which can include things that were neglected or forgotten. Traders who search for the best system may choose to modify existing Forex trading systems. There are some places where traders can find the whole package without any need for modification. In addition, there are many free systems that can be found in books or other websites.

Forex traders can try to create original systems themselves. There may be some other trading systems that are similar to it as it’s a culmination of years of exposure to other trading systems. As we mentioned earlier, it is a good way to modify someone else’s trading system and then make it their own.

http://www.ikonfx.com/forexblog/learn-forex-how-can-forex-traders-get-a-good-forex-trading-system/

Some Participants in Forex

The followings are the some main participants in the FX market

(1 ) Hedge funds. They control billions of dollars of equity and may borrow billion more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds’ favor.

(2) Investment management firms. They often use foreign exchange market to facilitate transaction in foreign securities.

(3) Retail FX brokers.

http://joyforex.wordpress.com/2012/02/29/some-participants-in-forex/

Things You Should Know About Forex Online Trading

Actually, although it is a little bit frustrated, it is true that most of the Forex traders who trade with live Forex accounts fail to make profits for many reasons. We have already talked about these reasons a lot. It is not that hard to understand that Forex traders may lose money if only they enter the risky market without any pips.

No.1: To be honest, clients’ trades and orders are not transferred and placed in the real and global currency market. Forex brokers have their own internal market. Although they display the real currency market prices on their platforms charts, they do not transfer the orders to the real currency market and in fact their clients trade with them, not with the real currency market.

In other words, Forex brokers benefit from their clients’ losses. In contrast, if Forex traders make money, the broker will lose. Therefore, they should not become happy if they see that you are wining, because your profit has to be paid from their pocket.

No.2: To do your Forex online trading well, Forex traders should first learn at least one trading system and stick to it. Risk and money management is another important thing that they should learn. Actually, many Forex traders are forced to get out the market just because that they have no strict disciplines. Indeed, Forex online trading is not an easy task for anyone.

No.3: There are a lot of other mistakes that almost 99% of the traders make. Some of them are used to close winning positions so fast and hold losing position for long. That is to say, most Forex trader cannot know exactly where the Forex market is going next. Therefore, figuring out a best Forex trading platform and plan a suitable Forex system is quite essential for traders for making profits.

Read more

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Investigation before Forex Trading

You should do some investigation before the actual Forex trading. The stability of the company, problems and futures within the company, though it’s difficult to find out until the event emerges out.

Tracking the company years records, asking its past data and statistics, taking a look at their history important events, is a must to choose the best Forex company to cooperate with. All this information could get from social media such as internet, newspapers, and personal communication with the people around you.

Moreover, if your broker is registered at CFTC, US Commodity Futures Trading Commission, and/or members of National Futures Association, probably you made an optimal choice. Because these two organizations impose rules the brokers must follow to maintain their membership, so broker behaviors are regulated by directions, and customer protection and market integrity is some kind of guaranteed.

Forex for beginners-What are the most commonly-used forex terms

All things are difficult before they are easy. For forex beginners, learning forex terms might be not easy because it is the first and key step to know forex. Only by understanding the complicated forex terms, can forex traders carry out further study of forex knowledge. Thus forex terms pave the way to successful forex trading. Before learning to use forex software and trade forex, forex traders should learn the following vital forex terms often seen in forex investment.

Ask/Offer: Price at which broker/dealer is willing to sell.

Bid: Price at which broker/dealer is willing to buy.

Leverage: The amount, expressed as a multiple, by which the notional amount traded exceeds the margin required to trade. For example, if the notional amount traded (also referred to as "lot size" or "contract value") is $200,000 dollars and the required margin is $4,000, the trader can trade with 50 times leverage ($200,000/$4,000).

See more, please go to

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Notice for Forex Trader

Pay attention to the currency spread.

The currency spread is the amount of pips between the bidding price and asking price, and Forex brokers use which to make money through every trade during their network. Take EURUSD as an example, the pips is usually 3-4.

The required amount of fund to create an account.

Different Forex platforms, the money to open a Forex account differs. Depending on each customer’s financial situation, they could choose the suitable platform to start a new account. Typically, a mini account definitely is the right selection for Forex novice.

Whether charges fees for small trading, although it’s free to do tiny size transaction.

Even it’s a small, fees occurs. Check out carefully before plunge into the Forex market. 

The existence of other fees.

Rollover fees is an example. If you hold a spot Forex position overnight, you will be charged or receive rollover fees. For instance, if you buy a pair of currency which the base one has higher interest than the terms one, rollover fee will be paid to you, vice versa, you pay out. When buying CADUAD, the interest in Canada is higher than America, you receive rollover fee.

ECN Forex Broker?

Electronic Communication Network (ECN), even with its definition, is a puzzling term. A standard definition of ECN is a market network of +15 major banks’ liquidity providers, ECN brokers, corporations and traders. Forget about that. To really understand this term, I will start with Forex brokers.

Most Forex brokers are money makers. They are the counterparty of your trade. They buy the currency pais that you sell or sell the currency pair that you buy. They are like the banking intermediary, who absorb deposit and make loans at the same time. Just like the bank will earn money through interest, money makers in the Forex market make money through spreads. An ECN acts like the matchmaker for your trades.

ECN brokers have quite some advantages. They are able to offer robust charting and signal services. They provide liquidity to the Forex market by trading themselves. They disadvantage is that ECN brokers can reserve the right by acting counterparty of your trades.

ECN can be a very good choice for Forex brokers. ECN platform is easy to use and it offer better signal and charting services. Better charting and signals can especially help Forex beginners in getting an idea of what’s happening in the Forex market, and also help to develop their own trading strategies.

http://www.ikonfx.com/forexblog/what-is-ecn-forex-broker/

How to be Emotion Free Trader?

Everyone wants to be emotion free trader to stick their Forex strategies, but how to achieve this level? Not easy. Here are some tips.

1.       Never invest the money beyond your owning. Don’t trade your last penny in your pocket.

2.       Make a reasonable achievable and practical target for yourself. It’s unrealistic to earn a million in a year based on the initial 1000 investment. Make a schedule achievement for every day, week, month, quarter, and year. Once you accomplished this goals, you’re yourself a reward to relax.

Learn Forex-How to Practice Technical Analysis with a Forex Demo Account?

It is a great way to open a Forex demo account to practice technical analysis in the Forex market. A Forex demo account is extremely useful for practicing technical analysis. When you check out forex charts and recognize trends, the process is exactly the same as doing it with a Forex live account. However, there is a small psychological effect when you have a real live account, which is considered the fear that you might be missing out on a lucrative deal. This doesn’t exist when you practice on a Forex demo account.

The psychological impact is much stronger when you have a real account with an open position. Therefore, having a Forex demo account is an excellent simulation in the Technical Analysis stage. In addition, it is important that your broker supplies the exact same tools for trading with a demo account and a real live account. This refers to the trading tools, the charts, and whatever you think is necessary.

It is excellent to use your Forex demo account for technical analysis. Forex demo accounts can help traders learn how to make a successful analysis. For getting the best out of it, it’s important to write down your analysis, document it and save a record of it.

http://www.ikonfx.com/forexblog/learn-forex-how-to-practice-technical-analysis-with-a-forex-demo-account/

Forex Demo Platform

First of all, what is a forex demo platform? A forex demo platform is a platform providing real time rates and a trading environment that reflects live trading conditions via web, on desktop or smart phone, but with virtual money. In the demo platform, Forex traders are able to open free accounts, which is great for anyone new to the world of online trading. It also allows those with prior forex knowledge and trading experience to hone their forex trading skills. To be honest, forex demo platform possesses advantages to forex traders and I list them below item by item.

Advantages of Forex Demo Platform No.1: No Risk

In live forex trading, it is quite common and unavoidable that forex beginners lose their money for lack of experience. How can trading beginners get practiced without the risk of losing money? Trading on Forex demo platform, without any doubt, is the answer. With forex domo platform, forex traders can open a forex demo account and trade in a risk-free environment. Of course, they are not allowed to withdraw capital from the account if they are lucky enough to get profit.

Advantages of Forex Demo Platform No.2: Trade from Real Time Charts and Graphs

Although the account is fictitious, it reflects the real conditions of forex trading market and forex traders are capable of trading with real time charts and graphs; it enables people to follow the ups and downs of the market at any time.

Advantages of Forex Demo Platform No.3: Get Free Market Analysis

It is a common phenomenon that people who analyze the market well make great fortune overnight. Market is just like the sun, rising and setting. I f forex traders can predict the trend accurately, it is not a daydream to get a big fortune. When it comes to market analysis, forex demo platform offers you a superior choice.

Advantages of Forex Demo Platform No.4: learn trading strategies

There is no doubt that forex trading is somehow risky, even for the experienced traders, if you cannot manage to trade wisely, it may cause you significant loss of capital and a lot of energy. Using forex demo platform, you are able to lose again and again without taking out your own hard-earned money. However, they could be more and more experienced in the process of using forex demo platforms.

Top 10 Forex Blogs for Beginners

Recently, I have been surfing the internet and get some really great forex blogs for beginners and from which, people learn forex analysis, influences on forex brought about by main incidents worldwide, how to choose the best broker and the most reliable platform, how to use the platforms to make profits and how to watch out for forex trading default etc. Forex traders can easily get what they want and be informed of the recent conditions of forex market. It goes without saying that these forex blogs play unparalleled role in forex traders. I am proud of sharing the best with you here. Oh, By the way, the top forex blogs in my point of view probably doesn’t suit your taste. What I listed below is just for your reference.

The top 10 Forex Blogs

Top Forex Blog No.1: IKON Forex Blog

IKON forex blog possesses several distinct features. First of all, all the articles are categorized into many kinds: forex for beginners, forex terminology, learn forex, which provides convenience for readers and they can easily find what they exactly want to know under the categories. Then you will find that the content is worth reading. For instance, if forex beginners are in want of the knowledge of how to choose the best forex brokers, they can find what makes the best forex brokers and if they intend to collaborate with brokers, there are top 10 forex brokers at their choice. More importantly, the blog of IKON Group treat you not only as a reader but also a friend. They analyze forex trading market in professional aspects, give helpful advices and even provide a platform to communicate and discuss with them. The last but not the least, they update their blog nearly every single day and give forex beginners new view every time they visit it.

Top Forex Blog2 No.2: Forex Crunch

Forex Crunch is a Forex Trading blog with comprehensive forex trading knowledge, covering Forex news events as well as technical analysis. It provides prompt news and reliable analysis. From my point of view, I think Forex Crunch is with objective analysis and provides up-to –date news. I myself always visit it and learn much from it.

Top Forex Blog No.3: Forex Magnates

The owner of Forex Magnates is a guy who dares to speak the truth, he always analyze the industry honestly and tell what he thinks to everyone who visits his blog. He is also well-informed. No matter what happens in the industry, he is always the first to know it and inform everybody else. So remember to visit his blog if forex beginners want to be well-informed.

Top Forex Blog No.4: Forex Blog

Forex blog has some awesome forex writers, which is appealing to me. Visiting the blog, you will never feel bored because there are charts, colors with personality, informative news, accurate analysis and even video. If you want to learn financial knowledge, forex blog is really a good choice

Top Forex Blog No.5: Shad Point Forex Blog

When browsing for the top forex blog for beginners, I find Shad Point Forex Blog. Although there are not graphs, colors and charts in the blog, it still cannot fail to catch the eyeballs of forex beginners because the topics are comprehensive, including from forex analysis to trading. Moreover, they make tecnnical analysis every month or even every other week.

Top Forex Blog No.6: Mariosingh. Com

I cannot say that Mariosingh.com is a most favorite blog for forex traders but I really want to recommend it to forex beginners because I think it is an amazing blog for beginners. There are some fundamental concepts that cannot be found in most forex blogs in Mariosingh.com. for example, what is foreign exchange and what is FX trading etc. Of coure, Mariosingh. com is not only tailored to the need of forex beginners, but also to the experienced forex traders.

Top Forex Blog No.7: Confession of A Forex Trader

The characteristic of Forex-analysis Blog is quite obvious. First of all, the name is confession of A Forex Trader, which is a name with personality and I myself like it. Then, most of the articles are written in the editors’ perspectives. After reading them, forex traders may ask themselves if they agree with editors and if they will follow the editors’ advices. Thus, I hold that Confession of A Forex Trader is a great blog for traders to form their own viewpoints.

Top Forex Blog No.8: Forex 4 noobs

The blog is run by a guy called Nick who is diligent and responsible. He updates his blog nearly every day and never forgets to write back to those commented on his article. Thus, more and more forex traders read his article and give comment. Of course, the article posted by him is with high quality. Sometimes, he also add interesting videos in the blog. It is one of my favorite blogs.

Top Forex Blog No.9: Currency Trade-Forex Blog

The subtitle of the blog-A Blog for Money Lovers, is quite eye catching, which is one reason I was attracted by it. The content of the articles are worth reading, forex traders can get comprehensive knowledge from the blog. Most importantly, the blog is updated periodically.

Top Forex Blog No.10: Educational Forex Blog-Learn Trading with Magic Stick

The guy manages the blog prefers grey a lot, the web page is in grey. He pretends to be a magician and gives guides to forex beginners who want to make money with forex. His viewpoint is new and special. I always visit his blog to get refreshed.

Now, it comes to the end of the list. Searching for the top blogs in the industry is not an easy thing because I must collect a large number of blogs and look through them one by one and then decide which should be on the list. However, the top 10 forex blogs list changes for many reasons unavoidably, perhaps one day, Arnaud Juelin will become the top forex blog, who knows. But if you want to find the best blogs and be informed of the forex market, trust me, my list will be greatly helpful

http://www.ikonfx.com/forexblog/forex-review%e2%80%93top-10-forex-blogs-for-beginners/