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FOREX EDUCATION


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Forex Market Players

Forex Market

The Forex market is an international over-the-counter market (OTC). It means that it is a decentralized, self-regulated market with no central exchange or clearing house, unlike stocks and futures markets. This structure eliminates fees for exchange and clearing, thereby reducing transaction costs.

 

The Forex OTC market is formed by different participants – with varying needs and interests – that trade directly with each other. These participants can be divided in two groups: the interbank market and the retail market.

 

The Interbank Market

The interbank market designates Forex transactions that occur between central banks, commercial banks and financial institutions.

 

Central Banks - National central banks (such as the US Fed and the BCE) play an important role in the Forex market. As principal monetary authority, their role consists in achieving price stability and economic growth. To do so, they regulate the entire money supply in the economy by setting interest rates and reserve requirements. They also manage the country's foreign exchange reserves that they can use in order to influence market conditions and exchange rates.

 

Commercial Banks - Commercial banks (such as Deutsche Bank and Barclays) provide liquidity to the Forex market due to the trading volume they handle every day. Some of this trading represents foreign currency conversions on behalf of customers' needs while some is carried out by the banks' proprietary trading desk for speculative purpose.

 

Financial Institutions - Financial institutions such as money managers, investment funds, pension funds and brokerage companies trade foreign currencies as part of their obligations to seek the best investment opportunities for their clients. For example, a manager of an international equity portfolio will have to engage in currency trading in order to buy and sell foreign stocks.

 

The Retail Market

The retail market designates transactions made by smaller speculators and investors. These transactions are executed through Forex brokers who act as a mediator between the retail market and the interbank market. The participants of the retail market are hedge funds, corporations and individuals.

Hedge Funds - Hedge funds are private investment funds that speculate in various assets classes using leverage. Macro Hedge Funds pursue trading opportunities in the Forex Market. They design and execute trades after conducting a macroeconomic analysis that reviews the challenges affecting a country and its currency. Due to their large amounts of liquidity and their aggressive strategies, they are a major contributor to the dynamic of Forex Market.

 

Corporations - They represent the companies that are engaged in import/export activities with foreign counterparts. Their primary business requires them to purchase and sell foreign currencies in exchange for goods, exposing them to currency risks. Through the Forex market, they convert currencies and hedge themselves against future fluctuations.

 

Individuals - Individual traders or investors trade Forex on their own capital in order to profit from speculation on future exchange rates. They mainly operate through Forex platforms that offer tight spreads, immediate execution and highly leveraged margin accounts.

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  • 10 months later...
  • 3 months later...

The individuals constitute the retail end of forex trading. Making a comparison, it will be noticed that the retail arm of forex trading , in general, constitute a small percentage of the whole forex market. Traders try as much as possible to make it from here since the capitall requirement to open a trading account is small.

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  • 3 weeks later...

this one is a new knowldege for me thanks for TS to share this one. it seems in Forex there is not only personal trader but also there are some big instance that also have their own importance there, and i think that is not easy for them to do something like that. i think this forex field earned big amount of money everyday

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  • 2 weeks later...

Yeah forex trading is a great business that have been in exitence for so long so it isn't a new one perhaps to get good education on how it works i think we ought to have good knowlegd how the economic works and also having a good foundation on economic as a subject.

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Everyday we tend to learn new thing concerning forex and thats really nice as it is part of our life. Since forex tends to be the largest market in the world, it must has many facts in it that one will need to know at a particular time. Its good to get new ideas everyday.

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  • 5 weeks later...

Everyday we tend to learn new thing concerning forex and thats really nice as it is part of our life. Since forex tends to be the largest market in the world, it must has many facts in it that one will need to know at a particular time. Its good to get new ideas everyday.

yeah i know that forex is one of the largest market in this world, and education of it is quite good if we know how to trade and also know about them well, it will bring us some kind of opportunity to earn well, but still this one is high risk earning, so it will be good if we preparing well before trading

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Currency trading can be a very successful company and as opposed to the Inventory Industry, Currency trading can have 100% benefits with moderated danger.

 

Always delay for a forex to come down to the smallest value possible. By enabling a forex to hit a very low value you improve the rate at which you will near the company with a revenue. When a forex is down in a history value, 99% of the periods it will go up and you can revenue nearly immediately. For example the EUR/USD smallest value was 1.17 and if it ever gets to that value again you should buy and then offer at 1.30 and get an crazy profit

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Learning is every thing in forex trading. Theirs two things that going to happen in forex. Either you Lose or you earn. In learning this is were you going to teach your self how to minimize loses and how to maximize earnings. The "L" in learning represent loses. And that reason why its first letter in the world because that what is the most important thing. Once we remove the "L" in learning its going to be pure earning.

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Start with a trial consideration to see how Forex trading work. Forex trading is not a online internet gambling house and there is no edge for betting here. To trade Forex trading you need to have professional understanding on the fx principles, how under cost or over cost they are and how they are likely to move in the next day. Only by trading with a trial consideration you will enhance your basic Forex trading understanding.

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Basics of Strategies: This course discusses:

 

� What should be done inside of Construct, Initialize and Execute.

� Customizing your strategy using inputs for new variables.

� Customizing your indicator and coding your strategy to receive updated numbers from that indicator.

� Setting up specific orders for opening and closing trades.

� Combining these elements by setting up specific logic for your strategy to place and manage trades.

 

CLICK HERE to view video on YouTube

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Learning is every thing in forex trading. Theirs two things that going to happen in forex. Either you Lose or you earn. In learning this is were you going to teach your self how to minimize loses and how to maximize earnings. The "L" in learning represent loses. And that reason why its first letter in the world because that what is the most important thing. Once we remove the "L" in learning its going to be pure earning.

 

I like the way that you put it because whether you make a success of forex trading depends very much on how much effort and commitment you put into the learning process. There are unfortunately no shortcuts to this and it needs to be done properly if you intend on maximising your trades. Without proper knowledge of how forex works your approach would basically amount to a game of luck because there is no real plan to back you up.

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  • 1 year later...

Good posts. Yes, we need to know a few things about forex in order to do well with it. First, forex is the online earning market for everyone around the globe. You can get started on it if you know how to trade. You can learn more about forex at youtube or webiste like babypips.com. the more you know the more you earn. You do have to have good knowledge or else you will not earn that much. Forex is a money making machine but it takes skills and knowledge as well. 

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basic knowledge about forex give traders chance to understand forex business and market properly. however, its only introduction to lead traders to not have misconception about forex. because many traders still misjudging that forex is not a business but just gambling activity. while its totally wrong.

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  • 2 weeks later...

Many sources that we can use as a means of learning forex. We can learn from forex forums, books, Google, etc.. Even the broker itself also provides a means for traders to learn. Like instaforex. In instaforex, we can learn forex video training. Materials provided very instructive and easy to understand. And we also can learn trading through a demo account.

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Forex education is good because it is with forex education that you can be able to make profit from trading in the forex business. There is no trader that can know how to do the analysis of the market if he or she is not having enough trading knowledge of the market and not being able to trade very Well in the forex business.

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traders educate themselves with necessary knowledge. and then, implement knowledge into practice. such way enabling traders to get experience and able to measuring which rules that worth to use and which one require to be eliminated. without take learning and make themselves knowledgeable, traders has no chance to gain good result in trading.

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