Community Answers

1. 

   10-7-11

   Equinox Ed says:

   Forex = foreign exchange. Yes, I have used foreign exchange services to convert my Indian rupees to US Dollars when I moved to the US.

   Reply

   Was this answer helpful?

   LikeDislike
2. 

   10-7-11

   Raj says:

   Forex trading means foreign exchange trading. It involves buying and selling currencies. I will explain you with a simple example.

   You want to trade on the currency pair EURUSD and buy it hoping that it increases in its value. That means you are buying Euros selling USD. Lets say one EUR is 1.5000 USD. For buying 1000EUR you need to spend $1500. The currency increased in its value as you expected and it became 1.5100. That means you made a profit of 100 pips.(In forex it is measured in terms of pips). Lets say you have a standard account with a leverage of 1:100. Then this 100 pips means $1000.

   People normally use two different types of analysis in forex. Technical analysis and fundamental analysis. Technical analysis is using the charts and analyzing the charts. Fundamental analysis is using the economic news. There are some important economic news that effects currencies in their values.

   You need to understand a lot of common terms in forex trading like spread, pip, leverage etc. The following are some of the resources you can use to know what they are exactly.

   What is spread?
   http://www.forexbees.com/what-is-spread-in-forex-market/
   http://www.youtube.com/watch?v=oEemlMucBs8

   What is leverage?
   http://www.forexbees.com/leverage-in-forex-trading/
   http://www.youtube.com/watch?v=-N1NooMMuQQ

   What is pip in forex trading?
   http://www.forexbees.com/what-is-a-pip-in-forex-trading/
   http://www.youtube.com/watch?v=j3849i8xHZc

   To buy and sell currencies that means to actually enter forex trading, you need to open an account with any forex broker. If you are a beginner you need to practice it first. You can open a demo account which involves virtual money and you can practice in that. Refer to the following resource on how to open an account.

   http://www.forexbees.com/how-to-open-an-account-in-forex/

   Reply

   Was this answer helpful?

   LikeDislike
3. 

   10-7-11

   Harley Drive says:

   there is NO WAY an individual can trade forex the commissions will always be greater than any gains and losses are always likely, also some of the forex companies are organized crime money launderers (some russian)operating from low regulatory countries

   Reply

   Was this answer helpful?

   LikeDislike
4. 

   10-7-11

   Michael Pilinski says:

   I just wrote an excellent book on forex trading for beginners that you can download for free called “The Forex Lifestyle”. It has everything from how the BUY and SELL trades work, to charting, learning about pips and some of the math involved, how to find good brokers and auto-trading robots. It also has trading log sheets in the back that you can print out and use to keep track of your trades as you’re learning for future reference. Take a look.

   Reply

   Was this answer helpful?

   LikeDislike
5. 

   10-7-11

   Sky says:

   Forex (Foreign Exchange) is an international market, where money is sold and bought freely.

   Believe it or not, money masses in the market constitute from 1 to 1.5 trillion US dollars a day.

   Forex Trading has a learning curve – no doubt about it, but once you get the hang of it, it can be very rewarding…

   Reply

   Was this answer helpful?

   LikeDislike