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What is the need of Currency Exchange? There has never been a more challenging and exciting time to be trading in the  foreign exchange market . What started out as a market for professionals is now attracting traders from all over the world and of all experience levels.  The forex market  mainly exists because of the need to ease or facilitate currency exchange. There is a need to  exchange currencies  because one country’s currency is not accepted in another. Currencies are needed everywhere to facilitate trade of goods and services. How Currency Exchange Works? The forex market works just like the other financial markets.  Currencies  are sold and bought at the current rate. The price of a currency with respect to another currency is called the exchange rate. Since the U.S. dollar is the currency that dominates in financial markets,  exchange rates  are expressed mostly in US dollars. Except when the exchange rate is pegged or fix...

BASIC CURRENCY AND QUOTE CURRENCY A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency. Currency pairs compare the value of one currency to another — the base currency (or the first one) versus the second, or the quote currency. It indicates how much of the quote currency is needed to purchase one unit of the base currency. EXCHANGE RATE An exchange rate is the price of a nation’s currency in terms of another currency. Thus, an exchange rate has two components, the domestic currency and a foreign currency, and can be quoted either directly or indirectly. In a direct quotation , the price of a unit of foreign currency is expressed in terms of the domestic currency. In an indirect quotation , the price of a unit of domestic currency is express...

You may have noticed that the value of  currencies  goes up and down every day. What most people don't realize is that there is a  foreign exchange market  - or 'Forex' for short - where you can potentially profit from the movement of these currencies. As technologies have improved,  the forex market  has become more accessible resulting in an unprecedented growth in  online trading . One of the great things about  trading currencies  now is that you no longer have to be a big money manager to trade this market; traders and investors like you can trade this market. Advantages of Trading Forex 24 Hours Trading The single biggest advantage the forex market has over other markets is its 24-hour nature. A  trader  can put on or take off positions literally any time of day or night, regardless of their base of operations. Consider, for example, the working person with a 9 to 5 type of job. Most folks like that cannot be expecte...

What is Swing Trading? Swing trading are short term strategies to take advantage of price swings, either reversing back to the median or fading a rally. Swing trading attempts to capture gains in a stock (or any financial instrument) within an overnight hold to several weeks. Why Swing Trade? Swing trading involves holding a position either long or short at least overnight and or up to several weeks. The goal is to capture a larger price move than is possible on an intra-day basis. Swing trading assumes a larger price range and price move and therefore requires careful position sizing to minimize downside risk. Swing Trading is a strategy that focuses on taking smaller gains in short term trends and cutting losses quicker. The gains might be smaller, but done consistently over time they can compound into excellent annual returns. Swing Trading positions are usually held a few days to a couple of weeks, but can be held longer. Swing Trading Strat...

The Forex Insight for 24th May for major currency pairs are as follows: EUR/USD The EUR/USD pair held on to its modest recovery gains above the 1.1700 handle. The ongoing US Dollar profit-taking slide, triggered by a dovish assessment of Wednesday's FOMC meeting minutes. USD showed little signs of easing amid a sharp retracement in the US Treasury bond yields and following an unexpected rise in the US initial weekly jobless claims. The pair would need to advance beyond 1.1790 to gain some further upward traction and retest the weekly high at 1.1829. GBP/USD GBP/USD: bulls capped by the 100-hr SMA, but if that were to give, opens risk towards key 1.3450 (50-W SMA). GBP/USD is trading at 1.3387, with a high of 1.3422 and a low of 13349. The technical readings lean bearish and are stacked up against the bulls. However, 1.3301 comes as the Dec 14 low and a potentially strong level of support. 1.3040 is a key downside t...

Different market entry and exit orders are being required for different trading scenarios and Forex Trading. The following are some basic types of Forex Orders: Market Order   This is the simplest way to enter the market, whether you are going long or shorting. By taking a market order, a trader enters the market at the best possible price at that given time. The order is filled straight away. Buy Limit   This order anticipates a bounce in an upward direction from the current down-trend. Therefore, an entry point is created below the current market price. Once the entry price is reached the order is triggered to go long. The stop loss is below and the profit target is above the entry level. Sell Limit Opposite to the Buy Limit, this order type anticipates the market to bounce downwards from the current up-trend. An entry point is created above the current market price. Once that price level is reached, the order is triggered to go short. The stop loss is above ...

Emotions should you watch for in yourself while trading: 1. Greed:   Traders are greedy when they don’t take profits because they think a trade is going to go forever in their favor. Another thing that greedy traders do is add to a position simply because the market has moved in their favor, you can add to your trades if you do so for logical price action-based reasons, but doing so only because the market has moved in your favor a little bit, is usually an action born out of greed. Obviously, risking too much on a trade from the very start is a greedy thing to do too. The point here is that you need to be very careful of greed, because it can sneak up on you and quickly destroy your trading account. 2. Fear:  Traders become fearful of entering the market usually when they are new to trading and have not yet mastered an effective trading strategy.Fear can also arise in a trader after they hit a series of losing trades or after suffering a loss larger than what th...

NO TRADING PLANS: A trading plan is a strict set of rules, half of which a trader draws from their trading strategy and the other one from their money management strategy. The plan may be then complemented by as many more points as the trader sees fit. WHAT IS TRADING PLAN: Specific market conditions for entering a trade; The amount of money to risk in a trade; Specific market conditions to get out if you are wrong (stop-loss); Specific market conditions to get out if you are right (take-profit); Approximate time for the market to reach your target; Note down and record everything! Write this list down as postulates and have it front of you before, after, and during your trading. RISKING TOO MUCH ON ONE TRADE: Never take too much risk in one trade. Forex brokers are allowed a lot of freedom in terms of leveraging their trading account, while beginner Traders lag behind in money management discipline. A combination of these two leads to high risk, hazard trading. Always...

#1 ANALYTICAL STAGE Analyse the CHART. Look out the worthwhile OPPORTUNITY to take a trade Identify the LEVEL of entry with a good risk reward ratio #2 TRADING PLAN DEVELOPMENT Create a trading PLAN. A Buy or Sell ORDER will now be executed. Bring the TRADING PLAN into existance. Adhere to your trading principles. #3 TRADE ENTRY EXECUTE the trade. A high probabilty trade entry with the aim of achieving optimal profits with good risk to reward ratio. #4 TRADE MANAGEMENT MONITOR the trade. Absorb all the market information that is being presented in the chart. Minimize the risk and Maximize the profits. #5 EXIT THE TRADE Releasing the Profits and rolling in the pips. Closing the trade. #6 REFLECTIVE PROCESS Reflect the whole process. Reflect it stage by stage for maximum learning experience. Look out for area of improvement. Learn from your trade. Come Out of your losses in Forex Market/Stock Market/Comex ...

Best Currency for Swing Trading Swing trading in Currency is a Short to long term trading style that requires patience to hold your trades for several hrs to days at a time. Swing Trading ideal for those who want to trade but can’t monitor charts throughout the days. Swing trading call can be generate by giving few hours of day during market hours or after market hours. This is probably best suited for those who have full-time jobs or school but have enough free time to stay up-to-date with what is going on in the global economies. Swing Trading in Currency Trading in Currency? Currency is best instrument for Swing trading. As both side goal keeper is Government. Currency mostly stable instrument. EUR ,USD, JPY, AUD, CHF, GBP make best pairs for Swing Trading as per our opinion. Swing trading attempts to identify “swings” within a medium-term trend and enter only when there seems to be a high probability of winning.       Because trades last much longer tha...

Oil prices eased slightly on Tue, 08-052018, a day after hitting 3-1/2 year highs, as investors braced for President Donald Trump’s decision on whether to withdraw the United States from the Iran nuclear deal, a move that could disrupt global oil supply. US Dollar is currency of international trade, so for all practical purpose all buy and sales on international level is defined in terms of USD. Also,  US is the biggest importer of crude  oil. So say when crude price go up, it means US will be shelling out more dollars to buy it, which means more dollars are going out of the country and hence the dollar  will weaken. US is also one of the biggest oil producer – so when oil price will go up, its own oil revenue will also go up – this impact might counter the fall in dollar a little but not significantly because it is a net importer. A hidden string ties together currencies and crude oil, with price actions in one venue forcing a symp...

Forex trading – or foreign exchange trading – is all about buying and selling currencies in pairs. For the buying and selling of currencies, you need to have information about how much the currencies in the pair are worth in terms of the other. This relationship is what defines a  currency pair . A currency pair quotes two currency abbreviations followed by the value of the base currency based on the currency counter. MAJOR BEST CURRENCY PAIR The US dollar is the preferred reference in most currency exchange transactions worldwide. It is the dominant reserve currency of the world. The following are not necessarily the best Forex pairs to trade, as they are the ones that have high liquidity and occupy the most foreign exchange transactions: EUR/USD (Euro – US dollar) USD/JPY (US dollar – Japanese yen) GBP/USD (British pound – US dollar) AUD/USD (Australian dollar – US dollar) USD/CHF (US dollar – Swiss franc) USD/CAD (US dollar – Canadian dollar) The valu...