Sunday, March 8, 2009

FOREX- YOUR GREAT FARM LAND


T
he essence of this article is to expose a lucrative market that can be your great farm land. It is called foreign exchange market which is mostly known as the FOREX market. FOREX is an acronym for foreign exchange and can also be called Spot FX or FX. This market is where currencies of different countries across the globe exchange hands. It functions just like the stock market where people buy and sell stocks and other securities like bonds via a stock broker. Forex is traded via Forex brokers.

Waooh! It sounds like I am speaking in riddles with all these unfamiliar terms. Don't worry I will bring it down to your perfect understanding. Have you ever traveled out of your country before or probably have a friend who have traveled out of the country before . Assuming you are an American who wants to travel to Japan may be on a business trip. It is no news that you will have to change your dollar to Japanese yen in other to be able to spend your money in Japan. While coming back to your country, you will still need to change the available yen you have with you back to US dollar. That's it, you have participated in the Forex market. Simply put, "Forex is all about exchange of one currency in respect of another".

HAVE A COLORFUL LIFE TRADING FOREX!!!

There are many currencies used across the world but in FOREX market the major currencies which are traded are USD(US dollar), GBP(Great Britain pound), EUR (Euro), CAD (Canadian dollar), AUD (Australian dollar), JPY (Japanese yen), CHF (Swiss franc)and NZD (New Zealand dollar). These currencies are traded in pairs (this means you are trading one for the other)like USD/JPY, USD/CHF, EUR/USD, GBP/JPY and so on. Among the pairs, the first currency is the base currency while the second currency is the counter currency. When a trader is executing a trade on a pair, like buying a USD/JPY it means that he is buying a USD and at the same time selling a JPY. And when he decide to close his position by selling this pair, he will be selling USD and at the same time buying back JPY.

Considering the fact that the exchange rates of these currencies fluctuates, the idea is to buy currencies with increasing rates and sell those with falling rates. A Forex trader aims to spot which currency will rise or fall next in value against the other.

REASONS WHY YOU SHOULD GET IN NOW

Considering the 2008 global economic meltdown which claimed 50 %-70% of investors portfolio. Blue ship stocks where turned to penny stocks and penny stocks turned valueless. Forex market has been characterized as recession proof market. Whether the market is rising or falling, a trader makes his money provided he places his trade in the direction the market is moving (up or down). Most financial investors worldwide who have suffered from the hands of the economic recession are now more into Forex trading to build back their wealth.

Forex is one the most lucrative and biggest financial market with over 3 trillion dollars traded daily. It is the fastest growing liquid market and you need to watch this market to grab your own share of the trillions of dollars exchanging hands on daily basis. I am not kidding.


The market is highly leveraged which generates so much for a trader even at a little shift in the exchange rate. We measure the changes in exchange rate in pips (price interest points). Assuming that a USD/EUR exchange rate move from 1.2111 to 1.2114, this means 3 pips increase (1.2114 - 1.2111 = 3 pips). Due to the advantage of more leverage in Forex, this little change in exchange rate can mean an earning of $30 for a trader using 1 lot size of a standard account ($10 per pip). Lot size determines the quantity or units a trader trades. The higher the units, the higher the profit/loss and vice versa. In a day a currency pair can rise or fall for up to 200 pips and over. This presents an opportunity for you to grab your pips and have a pipsful day.


Forex market is traded for twenty-four hours daily which is comprised of Asian session, European session and American session. Even if you already have a job, you can still create some time to trade Forex part-time.
Or rather quit your job and be your own boss.

With the current advancement in technology, Forex is no longer traded alone by Banks, Hedge fund or institutional investors but allows the participation of ordinary individuals like you and I. Forex market has no location, it can be traded anywhere with just a computer connected to the internet.

What are you still waiting for? This site is filled with enough knowledge in an understandable approach that will get you started and running in the Forex world. Learn to trade Forex today and discover the amazing returns you can get with our recommended risk management plans and trading strategies.

Get in now and learn how to be financially liberated and enjoy your life to the fullest!!!

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