What affects the Forex Market
Many things that you notice in daily life also affect the forex market. When people talk about mortgages, they are talking about interest rates; when companies or politicians make economic announcements, traders take note; and when news reports cover political events or natural occurrences, there may be opportunities to trade.
How to Trade Forex
A currency trade is a decision to buy or sell a currency. When you trade Forex, you trade one currency for another. Since their value is rarely one to one, the currency amounts are different. This reflects the exchange rate. Any two currencies involved in a Forex trade are called a currency pair. The value of the first currency, the base currency, is shown in terms of the other currency. The base currency is what you buy or sell, and the quote currency shows how much you will pay or receive. For example, say you want to sell 10,000 Euro for some US dollars.
How to choose your Forex broker
One of the most important decisions you make as a trader is choosing your broker. Let’s look at three things you should consider. First, regulatory bodies enforce minimum standards for the brokers, and guard the clients' rights. Here are three common regulatory bodies: Cyprus is a popular base of operations for European Forex brokers. The Cyprus Securities and Exchange Commission provides a basic regulatory framework for financial services, such as deposit protection up to 20,000 EUR. It is not as stringent as other European regulators.
The Forex Market
As a new Forex trader, it is important to know some basic definitions, both to understand the currency markets and help define your strategy. This brief video describes what a currency pair is; who the Forex market participants are; why the Forex market is an OTC, or over-the-counter, market; and what “liquidity” means there. When you trade Forex, you trade one currency for another. Forex markets enable you to trade any two currencies in the world. The currency pairs traded most often are called the major currency pairs.
PREMIUM
SPREADS
FROM 1.3 PIPS
—
ZERO
COMMISSIONS
MINIMUM DEPOSIT
(EUR / USD / GBP / CHF)*
1'000
* Or the equivalent to the USD
amount for other currencies
MOST POPULAR
PRIME
SPREADS
FROM 0.6 PIPS
—
ZERO
COMMISSIONS
MINIMUM DEPOSIT
(EUR / USD / GBP / CHF)*
5'000
* Or the equivalent to the USD
amount for other currencies
ELITE
SPREADS
FROM 0.0 PIPS
—
EUR 2,5 PER SIDE
PER LOT TRADED
MINIMUM DEPOSIT
(EUR / USD / GBP / CHF)*
10'000
* Or the equivalent to the USD
amount for other currencies
