Forex Basics Blog

Factors affecting currency trading

Although exchange rates are affected by many factors, in the end, currency prices are a result of supply and demand forces. The world’s currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange. (more…)

Here is my analysis for the next week : we are in the consolidation ” wedge” and ready to break out. When the ” break out ” occurs, i expect it to be a powerful one. (more…)

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We are shorting the pair, selling rallies at resisstances…we have a good probability of running it all the way down to 148.75 and 146.25 to follow.

GBP/USD : On the downside, return to 1.6250 will bring more bears in , we will then be looking to 1.6180 for next support level. We need a daily close below that level to turn the dailies back to the bearish momentum with targets @  1.6080, 1.6025 to follow.

What is FOREX? Currency Forex Trading, also known as FX Trading is an alternate way you can make money in a trading environment. Everyone has heard of the New York Stock Exchange (NYSE) or the Chicago Mercantile Exchange (CME), each featuring either stock trading or options and futures trading. Forex or FX Trading involves the buying and selling of currencies instead of stocks, bonds, options or futures.

FOREX stands for the FOReign EXchange market, which is the international financial market where currencies are traded. The foreign exchange market began in the 1970s and is now the largest financial market in the world, with an average daily turnover of US $1.9 trillion. That’s 30 times the amount of daily activity on all of the US stock exchanges combined. (more…)

Many traders are intrigued by the great profit potential of forex trading. Controlling millions of dollars with modest deposits through high leverage sounds like magic to some of us. But as with most things which sound too good to be true, the advantages of leveraged trading are not as compelling as many are tempted to believe. As repeated countless times on disclaimers and disclosures of forex brokers, the same leverage that allows us to magically control millions of dollars is a double-edged sword. It amplifies your profits, but it also multiplies your losses. (more…)