FOREX TRADING 101: Starting Fast & Building Faster with the Toro Strategy - Make Money Now That
Who would have guessed that you can make more money once retired than all those years working? I have.
Which is a big surprise for this old chef. And it's been done with Forex...
WHAT IS FOREX?
Forex is an abbreviation of Foreign Exchange (also referred to as FX) and it is the largest financial market in the world. The Forex market is the place where currencies are traded (currencies are money that is used as an exchange medium). In other words, it is the place where currencies are being sold and bought. In the Forex market all currencies are traded in real time.
Trading with currencies always means that there are two simultaneous transactions taking place. If a currency is being bought, it is also being sold. To better understand this notion, think of currencies as both the goods you are buying AND the method with which you're paying for the goods.
Since the Forex market is the place where currencies are traded in real time, people may trade one currency for another and make a profit off of this transaction.
Profits are made when one is able to determine which currency's value will increase by the end of a pre-determined time period (such time periods may be short or long). The Forex market is open 24 hours a day, five days a week and it is based in four major cities: New York, London, Sydney, and Tokyo. The Forex market is open to individuals over the age of eighteen.
While Forex trading may sound daunting, it really isn't. It can be easily comprehended and understood without prior experience in finance or economy. It is challenging and exciting, thought provoking and manageable, stimulating and filled with opportunities.
Some Forex Basics:
1. The first currency listed in a currency pair is called the "base currency".
2. The "base currency" is usually the U.S. Dollar. Traders will generally trade the U.S. Dollar against another currency, which is called the "counter currency".
3. Currencies are quoted in pairs. For example: The pair U.S. Dollar and JPY will be quoted in the following way: USD/JPY equals to 2.5 (This means that 1 U.S. Dollar can buy 2.5 JPY).
4. When a quote increases, it means that the "base currency" has risen in value and the "counter currency" has weakened in value. For example: If the USD/JPY quote used to be equal to 2.5 but is now equal to 2.6, then this means that the dollar has strengthened (because 1 U.S. Dollar can now buy 2.6 JPY as opposed to the mere 2.5 JPY it could buy beforehand.)
Now that you know a thing or two about the Foreign Exchange market, we invite you to explore eToro-the Revolutionary Forex Trading Platform. You too can make your mark in the Foreign Exchange market. Use eToro as your gateway to the ever-growing world of Forex trading.
Here is the Basic Forex Glossary:
Ask Price
The ask price is the price at which traders can buy the base currency. If you think that the EUR value will increase then you can choose to buy it for USD at the price displayed in the ask quote.
Aussie
Dealer slang for the AUD/USD currency pair.
Base Currency
The base currency is the first currency listed in any currency pair. Its value is determined against the counter currency's value. For example, if the rate of the EUR/USD pair is 1.3525, then the EUR is the base currency and it is worth 1.3525 USD.
Bear
A Bear market is a pessimistic market with declining prices.
Bid Price
The bid price (left quote display) is the price at which traders can sell the base currency. If you think that the EUR value will decrease then you can choose to sell it for USD at the price displayed in the bid quote.
Bull - el Toro!
A Bull market is an optimistic market with rising prices.
Cable
Also known as Sterling. Dealer slang for the GPB/USD currency pair.
Counter Currency
The counter currency is the second currency in any currency pair. Its value is determined against the base currency's value. For example, in the following currency pair EUR/USD, the counter currency is USD.
Cross Rate
A price quote consisting of any currency quoted against a currency that is not the USD. The quote is made up of the individual exchange rates of the two currencies against the USD.
Currency Pair
The two currencies that the exchange rate is comprised of. One of the currencies is bought, and the other is sold at the same time.
Day Trading
The practice of opening and closing positions within the same trading day, so that at the end of the day the trader has no open positions.
Fed
The Fed is short for Federal Reserve, which is the central banking system of the United States. The Fed issues announcements regarding U.S. monetary policy which can have significant effect on the Forex market.
Forex - what it's all about!
Forex, or FX, stands for Foreign Exchange. Forex is the simultaneous buying of one currency and selling of another. Since you purchase money with money, there are two transactions (buying and selling) happening at the same time.
Fundamental Analysis
This type of analysis focuses on the macroeconomic factors that influence the value of a country's currency. Traders open positions based on how they think changes in these factors are bound to affect different economies.
Hedging
The practice of opening several positions at once where one position minimizes the risk of another position.
Kiwi
Dealer slang for the NZD/USD currency pair.
Leverage
Leverage is a loan from your broker, which enables you to trade with a small amount of capital. It can increase your potential profit, but it can also increase your risk.
Long Position
Going long means opening a position in which the trader buys currency in hopes that this currency's value will increase (buy low, sell high).
Loonie
Dealer slang for the USD/CAD (US Dollar - Canadian Dollar) currency pair.
Lot
The standard unit of trading. One standard lot equals 100,000 units of the base currency, a mini lot equals 10,000 units, and a micro lot equals 1,000 units. eToro's standard trade volume is the mini lot.
Margin
The minimal cash deposit that you have to put up for the transaction. Trading forex on margin increases your buying power, but it can also increase your loss.
Pip
Pip is the smallest price increment in the last digit in the rate - usually the fourth digit after the decimal point (apart from the USD/JPY).
Price Trend
A consistent movement of currency prices in a certain direction. Traders try to spot trends in order to capitalize on their potential.
Rate
Rate or quote, is the price of one currency in terms of another.
Risk Capital
The amount of money that a trader can afford to risk, the potential loss of which would not affect their lifestyle.
Short Position
Going short means opening a position in which the trader sells currency in hopes that this currency's value will decrease (sell high, buy low).
Spread
The spread is the difference between the bid price and the ask price.
Stop Loss
A trade order which automatically closes an open position at a specific price in order to prevent losses in case the market moves against your position.
Swissy
Dealer slang for the USD/CHF currency pair.
Take Profit
A trade order which automatically closes an open position at a specific price realizing a specific amount of profit. Use this order to realize your gains.
Technical Analysis
This type of analysis focuses on chart patterns of currency movements. It assumes that a currency's future movements can be predicted by looking at past behavior.
Virtual Balance
Your current potential account balance that can be realized by closing all your open trades. For example, if your actual account balance is $525 and you have an open trade for $50 with a $25 profit, your virtual account balance will show $600.
==>> Without a doubt, the hot new Forex Trader on the scene is eToro!
eToro makes online trading simple. Whether you're a beginner or a professional their dynamic visualizations help you grasp info quickly, and they have ALL the tools you'll need: Online forex charts, graphs, financial updates, trading orders and leverages ranging from 1:10 to 1:400.
BEGINNERS, take advantage of their easy to understand functions and online forex tutorials.
They're reliable so that your trades are executed with precision and eToro also offer low spreads.. as low as 2 pips!
Want to know how I did it with the TORO STRATEGY? Go to Forex Trading 101: Forex Trading Signals - Building Faster Profits!
You will be glad you did.
A Graduate of the Holland College Culinary Course, Brian Alan Burhoe has cooked in Atlantic Coast restaurants for over 30 years. He is a member of the Canadian Culinary Federation. Brian's articles reflect his interests in food service, dreamstudy, imaginative literature and our best friends -- our dogs.
His Home Page is http://www.brianalanburhoe.com. His articles have been reprinted on numerous culinary websites and various Blogs, including the popular Romantic Relationship site WUVING.com.
Which is a big surprise for this old chef. And it's been done with Forex...
WHAT IS FOREX?
Forex is an abbreviation of Foreign Exchange (also referred to as FX) and it is the largest financial market in the world. The Forex market is the place where currencies are traded (currencies are money that is used as an exchange medium). In other words, it is the place where currencies are being sold and bought. In the Forex market all currencies are traded in real time.
Trading with currencies always means that there are two simultaneous transactions taking place. If a currency is being bought, it is also being sold. To better understand this notion, think of currencies as both the goods you are buying AND the method with which you're paying for the goods.
Since the Forex market is the place where currencies are traded in real time, people may trade one currency for another and make a profit off of this transaction.
Profits are made when one is able to determine which currency's value will increase by the end of a pre-determined time period (such time periods may be short or long). The Forex market is open 24 hours a day, five days a week and it is based in four major cities: New York, London, Sydney, and Tokyo. The Forex market is open to individuals over the age of eighteen.
While Forex trading may sound daunting, it really isn't. It can be easily comprehended and understood without prior experience in finance or economy. It is challenging and exciting, thought provoking and manageable, stimulating and filled with opportunities.
Some Forex Basics:
1. The first currency listed in a currency pair is called the "base currency".
2. The "base currency" is usually the U.S. Dollar. Traders will generally trade the U.S. Dollar against another currency, which is called the "counter currency".
3. Currencies are quoted in pairs. For example: The pair U.S. Dollar and JPY will be quoted in the following way: USD/JPY equals to 2.5 (This means that 1 U.S. Dollar can buy 2.5 JPY).
4. When a quote increases, it means that the "base currency" has risen in value and the "counter currency" has weakened in value. For example: If the USD/JPY quote used to be equal to 2.5 but is now equal to 2.6, then this means that the dollar has strengthened (because 1 U.S. Dollar can now buy 2.6 JPY as opposed to the mere 2.5 JPY it could buy beforehand.)
Now that you know a thing or two about the Foreign Exchange market, we invite you to explore eToro-the Revolutionary Forex Trading Platform. You too can make your mark in the Foreign Exchange market. Use eToro as your gateway to the ever-growing world of Forex trading.
Here is the Basic Forex Glossary:
Ask Price
The ask price is the price at which traders can buy the base currency. If you think that the EUR value will increase then you can choose to buy it for USD at the price displayed in the ask quote.
Aussie
Dealer slang for the AUD/USD currency pair.
Base Currency
The base currency is the first currency listed in any currency pair. Its value is determined against the counter currency's value. For example, if the rate of the EUR/USD pair is 1.3525, then the EUR is the base currency and it is worth 1.3525 USD.
Bear
A Bear market is a pessimistic market with declining prices.
Bid Price
The bid price (left quote display) is the price at which traders can sell the base currency. If you think that the EUR value will decrease then you can choose to sell it for USD at the price displayed in the bid quote.
Bull - el Toro!
A Bull market is an optimistic market with rising prices.
Cable
Also known as Sterling. Dealer slang for the GPB/USD currency pair.
Counter Currency
The counter currency is the second currency in any currency pair. Its value is determined against the base currency's value. For example, in the following currency pair EUR/USD, the counter currency is USD.
Cross Rate
A price quote consisting of any currency quoted against a currency that is not the USD. The quote is made up of the individual exchange rates of the two currencies against the USD.
Currency Pair
The two currencies that the exchange rate is comprised of. One of the currencies is bought, and the other is sold at the same time.
Day Trading
The practice of opening and closing positions within the same trading day, so that at the end of the day the trader has no open positions.
Fed
The Fed is short for Federal Reserve, which is the central banking system of the United States. The Fed issues announcements regarding U.S. monetary policy which can have significant effect on the Forex market.
Forex - what it's all about!
Forex, or FX, stands for Foreign Exchange. Forex is the simultaneous buying of one currency and selling of another. Since you purchase money with money, there are two transactions (buying and selling) happening at the same time.
Fundamental Analysis
This type of analysis focuses on the macroeconomic factors that influence the value of a country's currency. Traders open positions based on how they think changes in these factors are bound to affect different economies.
Hedging
The practice of opening several positions at once where one position minimizes the risk of another position.
Kiwi
Dealer slang for the NZD/USD currency pair.
Leverage
Leverage is a loan from your broker, which enables you to trade with a small amount of capital. It can increase your potential profit, but it can also increase your risk.
Long Position
Going long means opening a position in which the trader buys currency in hopes that this currency's value will increase (buy low, sell high).
Loonie
Dealer slang for the USD/CAD (US Dollar - Canadian Dollar) currency pair.
Lot
The standard unit of trading. One standard lot equals 100,000 units of the base currency, a mini lot equals 10,000 units, and a micro lot equals 1,000 units. eToro's standard trade volume is the mini lot.
Margin
The minimal cash deposit that you have to put up for the transaction. Trading forex on margin increases your buying power, but it can also increase your loss.
Pip
Pip is the smallest price increment in the last digit in the rate - usually the fourth digit after the decimal point (apart from the USD/JPY).
Price Trend
A consistent movement of currency prices in a certain direction. Traders try to spot trends in order to capitalize on their potential.
Rate
Rate or quote, is the price of one currency in terms of another.
Risk Capital
The amount of money that a trader can afford to risk, the potential loss of which would not affect their lifestyle.
Short Position
Going short means opening a position in which the trader sells currency in hopes that this currency's value will decrease (sell high, buy low).
Spread
The spread is the difference between the bid price and the ask price.
Stop Loss
A trade order which automatically closes an open position at a specific price in order to prevent losses in case the market moves against your position.
Swissy
Dealer slang for the USD/CHF currency pair.
Take Profit
A trade order which automatically closes an open position at a specific price realizing a specific amount of profit. Use this order to realize your gains.
Technical Analysis
This type of analysis focuses on chart patterns of currency movements. It assumes that a currency's future movements can be predicted by looking at past behavior.
Virtual Balance
Your current potential account balance that can be realized by closing all your open trades. For example, if your actual account balance is $525 and you have an open trade for $50 with a $25 profit, your virtual account balance will show $600.
==>> Without a doubt, the hot new Forex Trader on the scene is eToro!
eToro makes online trading simple. Whether you're a beginner or a professional their dynamic visualizations help you grasp info quickly, and they have ALL the tools you'll need: Online forex charts, graphs, financial updates, trading orders and leverages ranging from 1:10 to 1:400.
BEGINNERS, take advantage of their easy to understand functions and online forex tutorials.
They're reliable so that your trades are executed with precision and eToro also offer low spreads.. as low as 2 pips!
Want to know how I did it with the TORO STRATEGY? Go to Forex Trading 101: Forex Trading Signals - Building Faster Profits!
You will be glad you did.
A Graduate of the Holland College Culinary Course, Brian Alan Burhoe has cooked in Atlantic Coast restaurants for over 30 years. He is a member of the Canadian Culinary Federation. Brian's articles reflect his interests in food service, dreamstudy, imaginative literature and our best friends -- our dogs.
His Home Page is http://www.brianalanburhoe.com. His articles have been reprinted on numerous culinary websites and various Blogs, including the popular Romantic Relationship site WUVING.com.
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