Forex Vs Stocks

There are approximately 4,500 stocks listed on New York stock exchange and another 3,500 are listed in NASDQ . But in Forex market although there are lot of currency pairs involves we are not considering much about all. We consider mainly about 4 currency pairs and it is easier to keep eyes on four currency pairs than keeping attention on thousands of stocks.

24 Hour Market

Forex Market is 24 hour market which means it opens in all 24 hours of the day.

Fx market clos on weekends it closed 4pm on Friday and again open 4pm on Sunday after that it opens for 24 hours on weekdays

Minimal Or NO Commission

Usually lot pf forex brokers are not asking for any commission or additional transaction fees.

Instant Execution of Market Orders

Trades are initially executed under normal market conditions.

Short Selling Without an Uptick

unlike in equity market there is no reduction on short selling in currency market

No Middlemen

Centralized exchanges provide many advantage to the trader. However one of the problems with any centralized exchange is the involvement of middle men

Spot Market and Forwards and Future markets

There are three ways of trading forex by individuals, corporation and institution those are

Spot Market

Forward and Future market

The spot market is the largest one because it is the underlying real asset that forward and future markets are based on. In past futures market is more popular because it is available for individual investors for a long period of time.

But after the electronic trading was invented spot market became more popular among individual traders. Forward and future markets became more popular among companies which want to reduce their foreign exchange risk.

Spot market

In spot market currencies are buying and sell by traders according to the current price. The price can determine by supply and demand. When deal is finalized then it is known as “spot deal”. After a position closed settlement is in cash. Spot market deals with the percent transaction rather than future. Usually traders take two days per settlement

Forwards and Future markets

Forward and future markets do not trade actual currencies they deal in contracts and represent claims to a currency type, specific price per unit and future date for settlement.

INTRODUCTION TO FORIGHN EXCHANGE MARKET (2)

In foreign exchange market currencies are traded. Currencies are important to any one because currencies needed to exchange to conduct foreign trades and business. If you are living in USA and want to buy some vehicles from Japan you or the company which buy vehicles from Japan have to pay to Japan with Japanese Yen. As well as when travelling if American traveler travel to another country in Europe that person should have to pay with Euro not with USD inside that country because USD is not locally acceptable in European Countries.

Usually currencies need to change for day today activities this is the main reason for fx market becomes the largest financial market in the world.

And there is no central market place for currency trading in Fx market. In fx market Usually all the transactions done electronically through computer networks. Using computer networks all transactions done over the traders in all over the world. This market open all the 24 hours of the day, Five and a half days per week and trading done in major financial centers of London New York Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney almost all the time zones involve in this market. So When this end in USA new one start in Hong Kong so FX market never sleep never stop active in every 24 hours of the day. So price quotes changes constantly.

INTRODUCTION TO FOREIGN EXCHANGE MARKET (1)

Foreign exchange market is called Fx or Forex in short, so trading in foreign exchange market is called Fx trading or Forex trading. Actually this is the most fast and exciting market. But in the past large financial institutions, Corporations, Central banks lead this foreign exchange market mainly and also so much wealthy individuals only involve in this.

But today everything has change because of internet. After the emergence of internet every individual or any one who has good knowledge about Fx trading can buy and sell currencies by using only one mouse click. It became so simple because of internet so anyone who has a high speed internet connection and a computer. But most important thing is trader should have good knowledge about this fx market.

In fx market daily currency fluctuation are usually very small. Most currency pairs move less than one cent per day. As well as in this Fx market leverage is high as 250:1 sometimes this kind of higher leverages are very much risky.

Because of extreme liquidity and higher leverage this became ideal place for lot of traders. Positions can be held for months and also can be closed after few minutes.

Forex market provides lot of opportunities for investors or traders who are new. This is just a basic knowledge about what is this fx market I’ll come with another post which introduce more about this.

Read every post in this blog about fx trading to gather knowledge on this.

Advantages of FX trading

There are lot of benefits and advantages of trading forex through this blog post I am going to discuss few of them

There are no clearing, exchange or government fees. Also there are no broker fees at all many brokers provide there service through bid-ask spread.

And forex trading allow you to trade your currency to the market without middle man you can do it directly

The transaction cost is also very little and usually less than 0.1% under normal market conditions

And forex market is 24 hour market and you can trade do transactions get details in any time. Use the internet and do trading any time as you wish

And another advantage is not like many other tradings this can done by any one who have a high speed internet connection and a computer

Yahoo domains

I decided to register my new domain under yahoo. Because they give domain names for a very low price as 4.98$ for a year.
you can get domain names such as .com , .net ,.org .us and many more for low as 4.98$ per year
that is amazing and interesting. I always wanted to have a domain with domain
and another interesting thing is that they provide 24 hour customer service also
it is very easy to use control panel
If you are thinking to start online business website or something like that it is very easy to have a domain
but if you don't want to spend much more yahoo domains are the greatest solution for you

you can also use your domain with existing site

Bonus starter web page to post untill you ready with your new web site

Domain name yahoo

What is a domain name?

Domain name is a web address which help people to find your site on the internet
same as home address to find your home
if we consider www.yahoo.com
here yahoo is a unique name of the site and .com is the extension according to your sites content you can select different extensions
if it is a business site .com is suitable
if educational site .edu
if it is a organization .org so on

Good domain name helps you to improve your buisness

How to choose a Domain name

Domain name should cover the theme of your business
It should be unique and should be easy to remember and spell

So i think with yahoo domains you can improve your business as well you can create your website easilly

Domain registration yahoo

Selecting a good domain and domain name provider is the first step of creating a website of your own
Yahoo domains are the one of the leading internet company
yahoo hosts are very same to their server yahoo.com
Yahoo provides domain names for little as 3.95$ per year for new users and about 12 $ per year from existing users but other sites charge about 34$ for year
The most importent advantage is that yahoo is not going to lost its business in near future so you don't wont to worry about lost of your money. There is no risk to buy a domain from yahoo as yahoo is not going to lost it's business and you are not going to lost your domain name.

And also yahoo domains provide phone email services
But if you need to purchase multiple domain names yahoo is not suitable for you
Yahoo is useful if you are looking for a cheap and secure company to buy your domain name

Market Size and Liquidity

There is no physical center for forex market.
FX market is consider as an OTC (Over The Count) or "inter bank" market because it runs 24 hours electronically without stopping
this runs over networks of banks all over the world. This means there is no need of physical location for fx market.It can be anywhere.
This is the most popular and biggest exchange market of the world

Participants of fx market decides what are the currencies they should trade..
depending on

- Trading conditions
- Attractiveness of price
- Reputation of the trading counterpart

Curency Pairs

In forex trading buying and selling process is happening. Buying and Selling done simultaneously.Buying one currency and selling another currency is happening here, This trading is done through a dealer or a broker.This trading is done as currency pairs as mentioned above.

For example Euro and US Doller

When considering currency pair each currency takes its own side of the rope.
Exchange rates depends on which currency is stronger at the moment.

Major Currency Pairs

In these pairs one side is USD and other side major trading currencies with USD

EUR/USD
USD/JPY
GBP/USD
USD/CHF
USD/CAD
AUD/USD
NZD/USD

Minor Currency Pairs

Pairs that doesn't consists USD

Euro Crosses

EUR/CHF
EUR/GBP
EUR/CAD
EUR/AUD
EUR/NZD

Yen Crosses

EUR/JPY
GBP/JPY
CHF/JPY
CAD/JPY

Pound Crosses

GBP/CHF
GBP/AUD
GBP/CAD

Other Crosses

AUD/CHF
AUD/CAD
AUD/NZD
CAD/CHF

What is Forex

What is Forex

Have you ever been to another country?

If you, As soon as you get down on to the air port of that country you should have to exchange your money in to the currency of that country
For an example you are from Japan and travel to Sri Lanka here you have to exchange your Japanese Yen into Sri Lankan Ruppies... If not you'll not able to buy any thing from Sri Lanka because Sri lankan shops not accept Japanese Yen . In this case you've involved in Forex Trading.FX or Forex means Foreign exchange market.
In above example you've sell Japaniese Yen and Buy Sri Lankan Ruppies
You've exchange one currency to another.
And also after comming back to Japan you should exchange Sri Lankan Ruppies into Japanese Yen

Any way Foreign Exchange Market is the Largest Finansial exchange market of the world

What is trade in forex

- answer for this question is MONEY

But the problem is we don't feel that we are buying something .. Because we are not going to buy anything physically.
Image that you are trading money in share market this is something similar to that.You buy currency from one country is same to a buying share from a company. Usually it ends up with profit if you trade properly.But there is also a risk