Monday, November 16, 2009
If you are not familiar with e-currency, it’s simply a form of online currency such as Paypal, E-bullion, or Stormpay. So how then is it possible to make money with the e-currency exchange program? The process is quite simple, everyday money is moved from one e-currency to another at the request of merchants. When money is moved from one e-currency to another, there is a small fee involved. This fee is usually around 6%. As an e-currency trader, you can collect this 6% fee from people requesting to move money from one online currency to another.
The next questions people might ask is are there any risk involved. I am going to tell you straight forward that anything you do in this world involves some kind of risk. In order to leverage yourself and make any kind of improvements on your lifestyle it’s almost impossible to do it without taking some kind of initiative and risk taking. As any investor will tell you, never invest more than you can afford to lose.
The beauty about e-currency trading is that it’s a relatively unknown business, yet extremely lucrative. With the continued growth of the internet, moving funds from one e-currency to another is in high demand. There are always numerous amounts of transactions that need to be processed day in and day out. Therefore, it’s never a question whether or not this business will be here tomorrow.
Becoming involved in e-currency trading requires a small learning curve that anyone can easily over come with a little training. I have personally tried reading forums and positing questions; however the response was not fast enough. Even if I did get a response, my initial question somehow morphed into yet another question which resulted in even more wait time.
There are a lot of e-currency guides available online that will help anyone whishing to tap into this business get started. These courses provide details on how to trade e-currencies so that you can make a substantial gain on your initial investment. E-currency exchange trading is a business that will be around for years to come and will only continue to grow as networking around the world becomes a way of life.
Chris Rohrer is an established writer and e-currency trader. Chris Rohrer makes it easy for anyone to get started in the e-currency exchange program. http://www.mazumoney.net
Article Source: http://EzineArticles.com/?expert=Chris_Rohrer
What is traded in the Forex market?
The instrument traded by Forex traders and investors are currency pairs. A currency pair is the exchange rate of one currency over another. The most traded currency pairs are:
USD/CAD: Canadian dollar
USD/CHF: Swiss franc
These currency pairs generate up to 85% of the overall volume generated in the Forex market.
So, for instance, if a trader goes long or buys the Euro, she or he is simultaneously buying the EUR and selling the USD. If the same trader goes short or sells the Aussie, she or he is simultaneously selling the AUD and buying the USD.
The first currency of each currency pair is referred as the base currency, while second currency is referred as the counter or quote currency.
Each currency pair is expressed in units of the counter currency needed to get one unit of the base currency.
If the price or quote of the EUR/USD is 1.2545, it means that 1.2545 US dollars are needed to get one EUR.
All currency pairs are commonly quoted with a bid and ask price. The bid (always lower than the ask) is the price your broker is willing to buy at, thus the trader should sell at this price. The ask is the price your broker is willing to sell at, thus the trader should buy at this price.
EUR/USD 1.2545/48 or 1.2545/8
The bid price is 1.2545
The ask price is 1.2548
A pip is the minimum incremental move a currency pair can make. A pip stands for price interest point. A move in the EUR/USD from 1.2545 to 1.2560 equals 15 pips. And a move in the USD/JPY from 112.05 to 113.10 equals 105 pips.
Margin Trading (leverage)
In contrast with other financial markets where you require the full deposit of the amount traded, in the Forex market you require only a margin deposit. The rest will be granted by your broker.
The leverage provided by some brokers goes up to 400:1. This means that you require only 1/400 or .25% in balance to open a position (plus the floating gains/losses.) Most brokers offer 100:1, where every trader requires 1% in balance to open a position.
The standard lot size in the Forex market is $100,000 USD.
For instance, a trader wants to get long one lot in EUR/USD and he or she is using 100:1 leverage.
To open such position, he or she requires 1% in balance or $1,000 USD.
Of course it is not advisable to open a position with such limited funds in our trading balance. If the trade goes against our trader, the position is to be closed by the broker. This takes us to our next important term.
A margin call occurs when the balance of the trading account falls below the maintenance margin (capital required to open one position, 1% when the leverage used is 100:1, 2% when leverage used is 50:1, and so on.) At this moment, the broker sells off (or buys back in the case of short positions) all your trades, leaving the trader “theoretically” with the maintenance margin.
Most of the time margin calls occur when money management is not properly applied.
How are the mechanics of a Forex trade?
The trader, after an extensive analysis, decides there is a higher probability of the British pound to go up. He or she decides to go long risking 30 pips and having a target (reward) of 60 pips. If the market goes against our trader he/she will lose 30 pips, on the other hand, if the market goes in the intended way, he or she will gain 60 pips. The actual quote for the pound is 1.8524/27, 4 pips spread. Our trader gets long at 1.8530 (ask). By the time the market gets to either our target (called take profit order) or our risk point (called stop loss level) we will have to sell it at the bid price (the price our broker is willing to buy our position back.) In order to make 40 pips, our take profit level should be placed at 1.8590 (bid price.) If our target gets hit, the market ran 64 pips (60 pips plus the 4 pip spread.) If our stop loss level is hit, the market ran 30 pips against us.
It’s very important to understand every aspect of trading. Start first from the very basic concepts, then move on to more complex issues such as Forex trading systems, trading psychology, trade and risk management, and so on. And make sure you master every single aspect before adventuring in a live trading account.
Raul Lopez is a full time Forex trader and founder of http://www.straightforex.com a high quality Forex training and Forex trading course provider.
Article Source: http://EzineArticles.com/?expert=Raul_Lopez
Sunday, November 15, 2009
Have ever thought that you can make money while you are sleeping? Have you ever wished that you can get a lot of money without the need to do all the repetitive hard work every single day? Well, this is your chance. Let me introduce you to the Automatic Forex World.
Forex stands for foreign exchange market. It's the market where you can exchange different currencies and make profit. Many of you have always heard about Forex or even read about it before (If you didn't, there is no problem just read on) and you have always wished to jump into this amazing world and start to make the real money. However, you have been always pushed away by hearing that you need to read much about it and learn to use indicators and such stuff (If you didn't hear about that before, No problem just keep reading). Now it's time to leave all that behind you and let me introduce you to the new era of Forex trading system.
Few years ago, people used to do quite complicated calculations and use many indicators to make decisions while trading in Forex. Now, a new revolution has started to eliminate the need to do all the complicated stuff and to do everything AUTOMATIC. Yes, everything is now going automatically. No need for all these indicators or calculations. The new system is designed, tested and optimized by the big brains of the Forex trading market and who have been trading in this market for ages and have made millions of dollars.This new system is designed to keep up with the fast developing affairs that happen in the world.
IvyBot is the new system that will change the known shape of Forex trading market. It's the tool that will make you gain profit while you are sleeping. You might wonder now how will this tool work. To answer your question, let me tell you that the main and most important point in Forex trading is to know when to sell and when to buy. This tool will not just help you to decide, it will actually do the action it for you. It will first analyze the market and the current trend. Then using complicated algorithms developed by the masters of Forex , It will automatically decide when to sell and when to buy and will also sell or buy at the exact right times without the need for any action taken by you. It will do all this automatically. This new evolutionary tool has been tested and optimized to guarantee maximum profit and minimum risk.
You need NO experience at all in the Forex field. All you need to have is a computer and an internet connection. You will setup it and walk away. Yes just set it up walk away and let it do all the work on autopilot.
To put you on the picture, let's check some numbers that this tool was able to make. Users have made more than 100,000$ in only one single year! Yes, it's true. Even with the economic crisis, this tool was able to take the right decisions to make maximum profits.
If you want to know more about this new Forex trading system, you can Check this site here about Ivybot Forex EA.
Article Source: http://EzineArticles.com/?expert=Adel_Farok