forex enterprise

Everybody knows that the Internet is the best place to make money – much it and smart. Nevertheless not many have grasped the idea or actually exhausted the time and force to employ its right. Forex enterprise is an exclusive course that lets you tap into this exciting gold source of opportunity on the Internet. It is entirely tranquil to brush away any claims of making money on the internet as a fad or poorer still a trick. Nevertheless Forex Enterprise is truly a true syllabus that facility, and mechanism darn well too!

The maker of Forex Enterprise Mr. Nick Marks has put in his existence of explore and clear marketing wits behind this cast. His dreams can make an opportunity to pioneer earning manifold streams of profits from sort of sources. This online currency traded sphere is exclusive in every way. What tipped the scales hugely in my improve is the splendid testimonials I got to consider from my contacts and colleagues who had worn this organism. They are hardnosed promotion people and for them to go ga-ga over Nick’s exciting thought means there must be something to it.Yes, Forex Enterprise is audaciously clean and backed up with numerous existence of study and proven strategies that it offers you great sample and play compatibility right from day one. It is intended to convey outcome closer,quicker and steadily. Now that is important. Because, it is no big pact if you make money in 15 resume of fusion the plan, but 2 – 5 time down the line what is the state? You can see that Nick’s Forex Enterprise plant on a long period source and is then truly an attractive proposition.

Among many stuff that are bundled with this magnificent present, Forex Enterprise offers you nothing gamble investment strategies. These strategiespropose the best currency talk charge so you situate to advantage –minus the risks! He keeps offering updates of new and proven techniques so you don’t view a fate to mislay even among one of the many streams of profits outlined in the practice. All you have to do is just chart the march-by-footstep instructions. It is so unadorned to use and you’ll be amazed how valuable it is.

The best part of Forex Enterprise approach is you don’t have to be a tech nerd to profit from the thoughts. You don’t have to know something about web wily or java scripts, but still you continue to allowance from all these almost directly –expenses only few hours in a day! Including in the Forex Enterprise packet is a website with liberated hosting from where you could vend over 1000 harvest! Since there are over a million best promotion goods from top label names it is tranquil to make your website a virtual superstore!

Forex Enterprise also teaches you how to shot passage to your website. Just blindly chart it and you’ll see a swell in website transfer almost directly! The divide on e-currency transactions is what pulled me into the logic. Nick teaches you to the DXINONE logic – the most required after scheme for e-currency barter world over. If you have to take a standalone course on this order isolated, you’ll end costs 100s of dollars! Nevertheless you get it almost for unbound!

Forex Enterprise also understands that if you are on the close resources to open with you could explore unfussy inexpensive means of adwords and transfer generation. This Forex scheme offers you 100% money back agreement and you have almost 3 months to try out if the technique will work for you or not. With so many guarantees and testimonials of long name fallout and profits, Forex Enterprise may be the right plan for you. As for me, I’m unbound to take that Caribbean cruise – kindly recommended by Nick!

Everybody knows that the Internet is the best place to make money – much it and smart. Nevertheless not many have grasped the idea or very useless the time and effort to bind its warrant. Forex enterprise is a sole syllabus that lets you tap into this exciting gold colliery of opportunity on the Internet. It is quite plain to brushaway any claims of making money on the internet as a fad or shoddier still a cheat.Nevertheless Forex Enterprise is sincerely a genuine code that factory, and workings darn well too!

The inventor of Forex Enterprise Mr. Nick Marks has put in his living of inquiries and earnest marketing brain behind this mission. His ideas can make an opportunity to pioneer earning manifold streams of profits from category of sources. Thisonline currency traded trade is exclusive in every way. What tipped the scaleshugely in my kindness is the amazing testimonials I got to hear from my links and colleagues who had used this technique. They are hardnosed dealings people and for them to go ga-ga over Nick’s exciting thought means there must be something to it.Yes, Forex Enterprise is audaciously simple and backed up with the existence of seek and proven strategies that it offers you complete sample and play compatibility right from day one. It is designed to supply outcome sooner, quicker and steadily. Now that is important. Because, it is no big split if you make money in 15 record of union the course, but 2 – 5 years down the line what is the place? You can see that Nick’s Forex Enterprise workings on a long label root and is therefore actually an attractive proposition.

Among many stuff that are bundled with this magnificent present, Forex Enterprise offers you zilch gamble investment strategies. These strategiespropose the best currency replace rate so you park to payment –minus the risks! He keeps offering updates of new and proven techniques so you don’t rest a hazard to evade even among one of the many streams of takings outlined in the usage. All you have to do just admire the action-by-footstep instructions. It is so simple to use and you’ll be stunned how operative it is.

The best part of Forex Enterprise scheme is you don’t have to be a tech nerd to profit from the ideas. You don’t have to know anything about web conniving or java scripts, but still you support to benefit from all these almost instantly –costs only few hours in a day! Including in the Forex Enterprise present is a website with liberated hosting from where you could advertise over 1000 products! Since there are over a million best selling products from top label names it is tranquil to make your website a virtual superstore!

Forex Enterprise also teaches you how to crusade passage to your website. Just blindly result it and you’ll see a pitch in website travel almost instantly! The section on e-currency transactions is what pulled me into the logic. Nick teaches you to the DXINONE order – the most sought after structure for e-currency swap world over. If you have to take a standalone course on this routine isolated, you’ll end payments100s of dollars! Nevertheless you get it almost for free!

Forex Enterprise also understands that if you are on a strong budget to jerk with you could explore simple inexpensive means of adwords and transfer generation. This Forex practice offers you 100% money back warrant and you have almost 3 months to try out if the system will work for you or not. With so many guarantees and testimonials of long label results and profits, Forex Enterprise may be the right encode for you. As for me, I’m free to take that Caribbean cruise – highlyrecommended by Nick!

FOREX EDUCATION

The unfilled term is proposed for those who just curved their eyes about FOREX. Beginning traders who are still tutoring the basics of the alien chat bazaar may also find something of fascinate here. While experienced traders won’t profit something meaning their time appraisal this clause.

Basically there are 4 steps which can be definite as “must do“ for those who long to edge trading FOREX. Though, their order is not particularly important, the more important part is their pleased, to which the great attention and responsibility must be rewarded.

First move is verdict a right FOREX agent which will be your highest tool in trading. You can have a great tactic, good nominal scrutiny skills or an outstanding insight but you will eventually fold if you show a bad adviser. A good FOREX dealer is one that will not still your money, will be doing frank trading with your positions, ropes your favorite deposit/remove methods and has speedy and helpful abuser bolster tune. It is good if a dealer is registered with some slightly governmental pecuniary commission. One of the most important aspects of the broker is it’s trading platform – but for a new seller this part is not so important as for expert traders. Still you’ll doubtless want to trade with some able and informative platform as a MetaTrader or its analogs. For new traders the more important is a demo account which trades virtual money while you are guidance your FOREX skills. If you are new dealer, father only with the demo account! Don’t evade your money on your first mistakes!

Second move is wisdom the basics of FOREX trading. If you already found your FOREX broker, you will easily get all information from its website or customer uphold. There are many articles and websites keen to FOREX basics in the World Wide Web. All you must to do is just google for “forex trading basics” and you’ll find everything you required and even more. This move shouldn’t be underestimated, because wearisome to trade lacking even understanding how the bazaar machinery is not only very risky, it will also become boring very soon.

Third action is about tutoring. FOREX trading tutoring is not related to any other schooling you possibly have got in your life. FOREX promote is very chaotic, so is the education – there are no fixed policy and all time laws, it is unstable and dynamical. So, to be on the top you must learn new effects about FOREX regularly and constantly. Try to read as many books, articles other traders’ opinions as you can. The more you learn, the more educated you will be. And with good FOREX education you will be able to invent very sophisticated and helpful trading strategies.

Fourth phase is a last one; at least I think it to be an absolute one. To achieve the successful results in the FOREX bazaar you essential to enlarge your own strategies. While you are wisdom you’ll be happy with known strategies and probably even FOREX signals. Nevertheless rightful goal which leads to successful FOREX trading is to happen your own strategies. Not one approach, but to chart the bazaar day by day, developing new strategies and improving those which began to fail. And this comes not only to the trading plan (this part is apparent), but also to the money management strategy (this part is often underestimated). While you advance experience in trading you’ll inevitably create such strategies that will fit your trading adapt, you person and your life as best as they can. And after that, trading will become a heartfelt pleasure, which will eventually clue to your fiscal candor

forex charting

Price charts can be simple line graphs, bar graphs or even candlestick graphs. These graphs that show prices during precise time frames. These time frames can be anywhere from report to years or any time rest between.
Line charts are the easiest to read, they will show you the broad overview of cost society. They only show the last value for the specific time, they make it very simple to collect out patterns and trends but do not supply the tenuous fact of a bar or candlestick chart.

With a bar chart the length of a line displays the estimate stretch during that time distance. The bigger the bar is the larger the estimate difference between the high and low rate during the break. It is cool to tell at a glance if the assess rose or fell because the left tab shows the gateway charge and the right tab the dying rate. Then the bar will give you the assess deviation. When written bar charts can be difficult to read but most software charts have a zoom task so you can simply read even strictly spaced bars.

Originally urban in Japan for analyzing candlestick contracts candlestick charts are very nifty for analyzing FOREX prices. Candlestick charts are very similar to bar charts they both show the high, the low, open and close estimate for the showed time. However the blush coding makes it much easier to read a candlestick chart, routinely a green candlestick shows a rising cost and a red one shows a lessening estimate.The actual candlestick influence in situation to the candlesticks around it will tell you a lot about the cost transfer and will seriously aid your assay. Depending on the cost spread several patterns will be fashioned by the candlesticks. Many of the shapes have some somewhat exotic names, but once you learn the patterns they are easy to pick out and analyze.
Price charts are not usually worn by themselves to get the satisfied shape you hardship to supplement them with some nominal indicators. Technical indicators are generally grouped into some sweet broad categories. Some of the more common ones used to watch and marks the promote movement are: trend indicators, dilution indicators, volatility indicators, and series indicators.

Here is a lean of some of the more regularly used indicators as well as an ephemeral description.Average Directional Movement Index (ADX) – This directory will help show if the sell is tender in a trend in each route and how effective the trend is. If a trend has readings in extra of 25 then this is considered a stronger trend.
Moving Average Convergence/Divergence (MACD) – The shows the relationship between the tender averages which allows you to determine the momentum of the bazaar. Any time that the show line is crossed by the MACD it is considered to be a piquant promote

FOREX BROKERS

Finding a Forex broker is a tough process to navigate through and for most people, the necessity of outside assistance is needed. Trying to trade in the Forex market without a broker could lead to devastating results for the normal trader. Similarly, hiring the wrong Forex broker can lead to the same result as trying to muddle through it alone. It is highly important that you be diligent in researching any prospective brokerage firms to handle your financial portfolio.

2. Forex trading is flexible and fits into anyone’s schedule, as it is available on the Internet 24 hours a day, 7 days a week. Markets are always open, day in and day out. This flexible schedule makes the Forex market extremely attractive to professional and potential traders and investors.

1. Forex is the largest market, trading at a volume of almost two billion, giving Forex traders unlimited flexibility and liquidity. That’s over three times larger than the equity market and over five times larger than futures.

3. Forex trading on the Internet involves buying one currency while simultaneously selling another currency. There is equal opportunity to make a profit no matter what direction the currencies are heading. There are, at present, only fourteen pairs of currencies to trade compared to the thousands of stocks, options and futures available for trade. This is a great advantage when considering the pros and cons of jumping into the trading game.

Forex prices are often predictable, allowing the currency prices to create trends that can be followed to allow the technically trained Forex trader to spot, and even take advantage of, the many entry and exit points. There are no charges for commissions, exchange or other hidden fees on the Internet making it one of the best assets of Forex Internet trading. The Forex market is a very easy market to research the countries and currencies involved. The only fees come from the Forex brokers, who make a very small percentage of what the bid/ask price is. Additionally, there is no need to calculate any commissions or fees when completing a trade and your transactions are made and confirmed within seconds. Also, as the process is totally electronic there are no people to slow you down

FOREX ANALYSIS

First what is Forex: The FOREX or Foreign Exchange souk is the principal economic advertise in the world, with a level of more than $1.5 trillion daily, trade in currencies. Unlike other financial markets, the Forex advertise has no corporeal location, no focal chat. It operates through an electronic group of banks, corporations and individuals trading one currency for another.

When you show to flinch trading in the Forex advertise, which is regularly called the alien trade bazaar, you will ought to know a little trading vocabulary. Learning exclusive provisos and what they mean are critical before you even think about with factual money to trade. You would never get into a pilot’s seat and try to fly an aircraft without ever having taken hasty training. The same goes for overseas trade souk trading. You basic to be copious awake of what you are liability. This is a bazaar that is not fast cultured, so you should never believe that once you flinch into it, you will learn as you go. While some people opt to do that, they typically end trailing an adequate sum of money because they were not as ready as they should have been. Knowing the importance of trading trends and ranges in Forex trading is very important. If you view of trading in the Forex sell, be indeed you know what the language mean and their implications.

Trading Trend When assessed moves consistently in one tendency in the Forex, a trend occurs. When the objective is superior, the trend is regularly called confident. When the bearing of the estimate is stirring reduce, the trend is regularly called bearish. The language are relation of course. When you label a trend, you should always memorize that value peaks and troughs are in the same command. When you are industry with a bearish trend, recollect that charge highs and lows are pitiful inferior. Likewise when you are selling with a bullish trend, they are pitiful superior

Often when trends occur, it is doable to draw proof position under one that is poignant advanced (an uptrend). You can also often draw defiant outline above one that is tender lower (a downtrend). Once you see these position chance, it can be tacit that the trend is full. At this advantage there is a possibility that the trend will start to exchange. When it does invert, you will need to know the mold of what that entails.

Trend Reversal

When you gather of a trend reverse, it cleanly means that the direction of bazaar prices is varying. Often you will see trend reversals following a four stage copy. Usually, this includes the market making a new high, the trend line being broken, the market making an intermediate low, and a new assemble that does not equal the first high. Many times you will see prices solve the before low however. You may come across terms such as Double, Triple Tops, and Bottoms, which are all trend problem patterns. Head and shoulders patterns are also admired reversal patterns.

Bank Forex Trading

Bank forex trading is one of the focal customs the individuals select to trade nowadays, though it has been more popular than it is at the jiffy. Many traders have lost concern in it as the findings of the rising popularity of Internet forex trading by several companies. However, store forex trading can also be done on the Internet and many individuals still group the banks with their money.

There are various habits and means of choosing the best pool forex trading. However, with thousands to want from, all which go through one of huskily three hundred multinational banks, the choices can actually make the regulate spin. Following the tips below though can actually give you an insight into the world of edge forex trading with a notice to judgment the best one for you.

1. Assess the group forex trading accessibility of you series The maturity of banks participating in forex trading now give their customers access via a category of habits and means. However, some heap forex tradingsystems regulate accessibility. In language of receiving convene of your money, invest forex trading gives access 24 hours a day and five existence a week. However, in language of generous forex trading instruction, some only drive via the Internet or the handset, while others start via both means. It is up to you to prefer what form of stock forex trading suits you best.
2. Look at the cache forex trading range Some banks trade millions of dollars every day, and only a small percentage of their tilt forex trading is for their customers while the place is for shareholders and the lean in general. It is through this arrange of store you should choose to conduct. Although the overhaul may be excluding delicate, you could indeed suppose the series with your money and know that verge forex trading was as nontoxic as could be.
3. Reputation Some institutions taking part in lean forex trading are well known for it, while others are considered to basically be onlookers. The banks that are most active should be considered above those that are not. Active involvement in the series forex trading usage points to learn and defense somewhat than opportunism, which could conversely central to large extent death.

Of course, there are other factors tortuous in your fine of layer for forex trading, including personal preferences, visibility to the outside world and word of gate, but the three above are the most important factors to believe. If you are looking for stillness of demur and your examine into a bank checks all the boxes then you have found the right one for you!

BASE CURRENCY AND VALUABLE CURRENCY

Base Currency and Variable Currency
When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other.

The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this.

MARGIN TRADING

Margin Trading
Foreign exchange is normally traded on margin. A relatively small deposit can control much larger positions in the market. For trading the main currencies, Saxo Bank requires a 1% margin deposit. This means that in order to trade one million dollars, you need to place just USD 10,000 by way of security.

In other words, you will have obtained a gearing of up to 100 times. This means that a change of, say 2%, in the underlying value of your trade will result in a 200% profit or loss on your deposit. See below for specific examples. As you can see, this calls for a very disciplined approach to trading as both profit opportunities and potential risks are very large indeed. Please refer to our page Forex Rates & Conditions for current Spreads, Margins and Conditions.

Glossary

• Appreciation An increase in the value of a currency.
• Ask The price requested by the trader. This usually indicates the lowest price a seller will accept.
• Base currency The currency that the investor buys or sells (i.e. EUR in EURUSD).
• Bear Someone who believes prices are heading down. A bear market is one in which there has been a sustained fall in prices and which does not look like it will recover quickly.
• Bid The price offered by the trader. This usually indicates the highest price a purchaser will pay.
• Bid/Ask The Bid rate is the rate at which you can sell. The Ask (or offer) rate is the rate at which you can buy.
• Bull Someone who is optimistic about the market. A bull market is characterised by enthusiastic and sustained buying.
• cross When trading with currencies, the investor buys one currency with another. These two currencies form the cross: for example, EURUSD.
• Cross rate An exchange rate that is calculated from two other exchange rates.
• Depreciation/decline A fall in the value of a currency.
• Exchange rate What one currency is worth in terms of another, for example the Australian dollar might be worth 58 US cents or 70 yen.

Currencies traded freely on foreign-exchange markets have a spot rate (applying to trades settled “spot”, i.e., two working days hence) and a forward rate. Countries can determine their exchange rates in a variety of ways.
1. A floating exchange rate system where the currency finds its own level in the market.
2. A crawling or flexible peg system which is a combination of an officially fixed rate and frequent small adjustments which in theory work against a build-up of speculation about a revaluation or devaluation.
3. A fixed exchange-rate system where the value of the currency is set by the government and/or the central bank.
• EURUSD Means that you trade EUR against dollars. If you buy euro you pay in dollars and if you sell euro you receive dollars.
• FX, Forex, Foreign Exchange All names for the transaction of one currency for another, e.g. you buy GBP 100.00 with USD 150.25 or sell USD 150.25 for GBP 100.00.
• Interbank Short-term (often overnight) borrowing and lending between banks, as distinct from a banks business with their corporate clients or other financial institutions.
• Interest rate differential The yield spread between two otherwise comparable debt instruments denominated in different currencies.
• Leverage (gearing) The investor only funds part of the amount traded.
• Long To buy.
• Long position A position that increases its value if market prices increase.
• Liquid (-ity) The capacity to be converted easily and with minimum loss into cash. A liquid market is one in which there is enough activity to satisfy both buyers and sellers. Ultra-short-dated treasury notes are an example of a liquid investment.
• Margin The deposit required when entering into a position as well as to hold an open position. Your margin status can be monitored in the Account Summary.
• NYSE The New York Stock Exchange.
• Open position A position in a currency that has not yet been offset. For example, if you have bought 100,000 USDJPY, you have an open position in USDJPY until you offset it by selling 100,000 USDJPY, thus “closing” the position.
• Over the counter When trading takes place directly between two parties, rather than on an exchange. Over the counter trades can be customised whereas exchange-traded products are often standardised.
• Pips A pip is the smallest unit by which a Forex cross price quote changes. So if EURUSD bid is now quoted at 0.9767 and it moves up 2 pips, it will be quoted at 0.9769.
• Position Traders talk of “taking a position” which simply means buying or selling currency cross. “Position” can also refer to a trader's cash/securities/currencies balance, whether he or she is short of cash, has money to lend, is overbought or oversold in a currency, etc.
• Risk Trying to control outcomes to a known or predictable range of gains or losses. Risk management involves several steps which begin with a sound understanding of one's business and the exposures or risks that have to be covered to protect the value of that business. Then an assessment should be made of the types of variables that can affect the business and how best to protect against unwelcome outcomes. Consideration must also be given to the preferred risk profile – whether one is risk – averse or fairly aggressive in approach. This also involves deciding which instruments to use to manage risk and whether a natural hedge exists that can be used. Once undertaken, a risk-management strategy should be continually assessed for effectiveness and cost.
• Secondary currency (variable currency or counter currency) The currency that the investor trades the base currency against (i.e. USD in EURUSD).
• Short position A position that benefits from a decline in market prices.
• Short To sell.
• Speculative Buying and selling in the hope of making a profit, rather than doing so for some fundamental business-related need.
• Spot A Spot rate is the current market price of an asset.
• Spot market The part of the market calling for spot settlement of transactions. The precise meaning of “spot” will depend on local custom for a commodity, security or currency. In the UK, US and Australian foreign-exchange markets, “spot” means delivery two working days hence.
• Spread The difference between the bid and the ask rate.

Important Forex Trading Terms

Spread

The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.

Pips

A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.

On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.

Why should I learn Forex currency trading?

By reaching to our website, I think you are already aware that Forex trading is a good way to make money at home. More over, I bet you knew someone, or would have heard of someone, who's already making tons of good money in FX trading.

But what you wouldn't know is that 7 out of 10 traders keep losing money in Forex market! That's right, 70% of individual FX traders keep losing their hard-earned money in the market; while the rest of the 30% work freely at home and earn millions annually)

Wonder what differs between the losing 70% and the winning 30%?

Forex trading skills and the trading system! If you want to work less than 20 hours a day at home, if you want to make millions by trading freely at home, if you want to have financial freedom by trading Forex; you better LEARN Forex trading before you start trading Forex. Forex market is definitely not a game for newbie and you need to brush up your skills before getting your hands wet.

Major Currencies Traded in Forex Market

United States Dollar (USD)

The U.S. dollar uses the decimal system, consisting of 100 (equal) cents (symbol ¢).

The most traded currency in Forex market (the major seven) are United States dollar, Eurozone Euro , Japanese Yen , British Pound Sterling, Swiss Franc, Australian dollar , and Canadian Dollars.

Forex market is much USD-centered, where United States currency is involved in more than 80% of the trades. Major traded pairs in FX market are EUR/USD, which yields 28% from total trades. USD/JPY and GBP/USD come second and third, with take up 17% and 14% from the global forex trading respectively.

The U.S. dollar uses the decimal system, consisting of 100 (equal) cents (symbol ¢).

In another division, there are 1,000 mills or ten dimes to a dollar; additionally, the term eagle was used in the Coinage Act of 1792 for the denomination of ten dollars, and subsequently was used in naming gold coins. In the second half of the 19th century there were occasional discussions of creating a $50 gold coin, which was referred to as a "Half Union," thus implying a denomination of 1 Union = $100.

However, only cents are in everyday use as divisions of the dollar; "dime" is used solely as the name of the coin with the value of 10¢, while "eagle" and "mill" are largely unknown to the general public, though mills are sometimes used in matters of tax levies and gasoline prices.

When currently issued in circulating form, denominations equal to or less than a dollar are emitted as U.S. coins while denominations equal to or greater than a dollar are emitted as Federal Reserve notes (with the exception of gold, silver and platinum coins valued up to $100 as legal tender, but worth far more as bullion). (Both one-dollar coins and notes are produced today, although the note form is significantly more common.)

In the past, paper money was occasionally issued in denominations less than a dollar (fractional currency) and gold coins were issued for circulation up to the value of 20 dollars.

Managing a Margin Forex Account

Although the example given is much simpler than what's happening in real market situation.

But it cleary illustrates that trading in can easily magnify trade's ROI in a dramatic way. Although trading on margin sounds extremely easy to gain profits, but it is important that traders understand well the risks they are undertaking.

Traders should be very aware of the margin call and should always avoid them at all cost. Note that in the event that money in your account falls below predetermined threshold (Margin Call), the positions in the account could be partially or totally liquidated, even it's in a highly volatile, fast moving market. Also, traders should always monitor own margin balance on a regular basis and utilize stop-loss orders on every open position to limit downside risk.

In most cases, you might need a computer aided trading tools to determine the entry point as well as stop loss order.

Trading tools DashBoard FX is currently pushing out tons of useful features in their software and they provide free tipping service from time to time - perhaps you should take a look on them

Trading Forex with Margin

Leverage Upto 200:1 in Forex Trading

Margin trading refers to the leverage amount given to the traders to trade in the market.

One of the best features in Forex trading is that traders are able to trade foreign currencies with high margin.

You get 1:1 margin for stock exchanges, 2:1 margin for equity trading, 15:1 margin for futures market; but in Forex, normal trade margins are 100:1 and 150:1, or even 200:1 trade margins.

Typically the broker will require a minimum account size, also known as account margin or initial margin. Once you have deposited your money you will then be able to trade. The broker will also specify how much they require per position (lot) traded.

For example, for every $1,000 you have, you can trade 1 lot of $100,000. So if you have $5,000 they may allow you to trade up to $500,000 of Forex.

The minimum security (margin) for each lot will vary from broker to broker. In the example above, the broker required a one percent margin. This means that for every $100,000 traded, the broker wants $1,000 as a deposit on the position.

Trading Forex in huge margin with allows traders to control a large sum of money with little cash put on the tables. This in turns magnify the ROI dramatically.

Margin Trades and ROI in Forex

Example below shows how margin tradings in Forex can magnify your investment ROI.

Taking $1,000 in a 100:1 margin account as example, you are now granted the purchase power of $100,000.

Say that you execute the trade between USD/JPY: Long Japanese Yen in USD/JPY 109.2 (meaning buying 109.2 Yens with 1 USD) and short JPY at the price of USD/JPY 109.0.

Trading without margin

If you are trading without margin, you have only $1,000 of buying power. The the max you can go is buying (1000 x 109.2) Yens = 109,200 Yens.

Later when you sell off your Japanese Yen in higher price (USD/JPY 109.0), the returns you are getting back is $1001.8.

Profit made in the trade: $1.8
ROI of the trade: 1.8/1000 x 100% = 0.18%

Trading with margin

Now in case you are trading with margin of 100:1, the calculation of the trade will be giving you a total different picture:

Buying Japanese Yen when USD/JPY 109.2:

Long Japanese Yen = (100 x 1000 x 109.2) Yens = 10,920,000 Yens;
Short USD $100,000.Selling of Japanese Yen when USD/JPY 109.0:

Short Japanese Yen = 10,920,000; Long USD = (10,920,000 / 109) = $100,183.5.

Profit made in the trade: $183.5.
ROI of the trade: 183.5/1000 x 100% = 18.35%

Trading Margin vs Return of Investment: A Quick View

The Power of Leverage
Trading Margin	Capital	Purchase Power	Money value of 1% Profit	ROI of capital
2:1	$1,000	$2,000	$20	2%
10:1	$1,000	$10,000	$100	10%
50:1	$1,000	$50,000	$500	50%
100:1	$1,000	$100,000	$1,000	100%
150:1	$1,000	$150,000	$1,500	150%
200:1	$1,000	$200,000	$2,000	200%

Understanding Forex Quotes

Reading Forex quotes is easy although it looks a bit confusing at the beginning.

Quoting Foreign Currency

Currencies are always quoted in pairs. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX currency is expressed.

The first currency in the quotes act as the 'base currency'.

For example USD/JPY, EUR/GBP, and GBP/AUD, in such cases, USD, Euro Dollar, and Britain Pound are acting as the base currency. Base currency in a Forex quote will always has a value of 1. USD/JPY indicates how much Japanese Yens you can buy with 1 United States Dollar; similarly EUR/GBP indicates the exchange rate of Great Britain Pound with 1 Euro Dollar.

FX Quoting: Bid/Ask and Spread

There are sometimes that you can only see one price but often currency exchange price are display in pairs with 'bid price and ask price'.

For example EUR/USD 1.2385/1.2390, 1.2385 is known as the bidding price, while 1.2390 is the asking price. Bidding price is the price that you sell the base currency (EUR in our case here); asking price is the price that you buy the base currency. The different of the bidding and the asking price is called 'spread'.

You might notice that bidding price is always lower than the asking price. Ever wonder why? The different of the bid-ask price (socall 'spread') is how currency brokers make profits without charging commissions to their clients (sell high and buy low in the same time.)

What's a pip?

A pip is the smallest value in a Forex quote. Take our example earlier on EUR/USD. If the exchange rate goes from 1.2385 to 1.2386; that's one pip. In mathematical definition, a pip means the last decimal place of a quotation.

Note that as each currency has its own value, the value of a pip is different from one another. Say USD/JPY rate at 120.75, a pip would be 0.01 (the second decimal place); while for EUR/USD 1.2385, a pip would be 0.0001 (the fourth decimal place).

Example of Forex Quotes

Confused about the quotes? Don't worry too much about it, you'll get used to them as soon as you move on and start your trades.

For the beginners, here are some quick examples. Try not look at the answer and determine the value of bid price, ask price, spread value, and the pip value.

EUR/USD 1.2385/1.2390

• Base currency= Eur
• Bid price= 1.2385; Ask price= 1.2390
• When selling Euros, 1 Euro = USD$1.2385; when buying Euros, USD$1.2390 = 1 Euro.
• Spread = | 1.2385 - 1.2390 | = 0.0005
• Pip value= 0.0001

EUR/JPY 127.95/128.00

• Base currency= Eur
• Bid price= 127.95; Ask price= 128.00
• When selling Euros, 1 Euro = JPY127.95; when buying Euros, JPY128.00 = 1 Euro.
• Spread = | 127.95 - 128.00 | = 0.05
• Pip value= 0.01

GBP/USD 1.7400/10

• Base currency= GBP
• Bid price= 1.7400; Ask price= 1.7410
• When selling Pound, 1 Pound = USD$1.7400; when buying Pound, USD$1.7410 = 1 Pound.
• Spread = | 1.7400 - 1.7410 | = 0.001
• Pip value= 0.0001

USD/JPY 119.8

• Base currency= USD
• No bid-ask price is displayed, spread value not available.
• Pip value= 0.1

Getting used to the quotes now? Well, don't feel down if you're still slow... you'll be picking up on reading them as you move along.

How to Trade Forex

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.

Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements

Forex trading

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.

An overview of the Forex market

The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.

The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:

• 24-hour trading, 5 days a week with non-stop access to global Forex dealers.
• An enormous liquid market making it easy to trade most currencies.
• Volatile markets offering profit opportunities.
• Standard instruments for controlling risk exposure.
• The ability to profit in rising or falling markets.
• Leveraged trading with low margin requirements.
• Many options for zero commission trading.