Friday, December 17, 2010

how to trade forex / Forex Broker Involvement Optional

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Author - Jay Moncliff
To trade on the forex market, the largest financial market on the planet, one must use a forex broker. Not unlike a stock broker, a forex broker can also makes suggestions about which moves to make when exchanging foreign currency. Some forex brokers even supply technical analysis to some of their clients and offer tips on research to improve their success as forex traders.
Typically in the forex market a forex broker is a banking institution who may buy up large amounts of a certain currency. For years, banks were the only ones who had access to the forex markets. But today with the Internet, any forex trader, who subscribes with a forex broker, can access the market 24 hours a day.
Today, as with stock brokers, the brick and mortar institutions, such as banks, are less of an option for the individual forex trader who works from home, monitoring the news and gaining insight into certain technical information to help with his or her trading decisions.
Choosing a forex broker may depend on your needs. If you are new to the field, there are houses, or online forex brokers who may cater to your needs, providing in-depth research, ample time to demo their product and so on. Other forex brokers are geared toward the experienced online forex trader. They too offer advice, but may be less likely to offer instructional help with the information, assuming that you may already know how it may or may not benefit you when you read it. It is advisable to read about and even run a demo on several different online forex brokers before going with one.

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Thursday, December 16, 2010

forex trading hours / Forex Software Packages

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Author - Ryan Larson
If you plan to start trading FOREX online you will of course be using a software system. This system will make it easy for you to get information quickly about market prices and make trades. There are two types of FOREX software available, client based and web based.
As the FOREX market is a fast moving market and you will need up to the minute information to make informed transactions, it is up to you to see you have a high speed internet connection. Dial up internet access will absolutely not work for this. Another consideration could be the location of the servers used by your broker. If your broker's servers are located quite a distance from you, say in another country, this could potentially slow down your transmissions. If you plan to trade online you will need a modern computer and high speed internet connection.
The next consideration would be which type of software, client based or web based? Web based software is housed on your brokers website. You will not have to install any software on your own computer. A web based software program will allow you to log in from any computer that has an internet connection. A client based software program, or one that you download into your own computer will limit you to transactions only on the computer it is downloaded on. Web based software programs are preferred by most brokers who think they are more safe and reliable. Web based software tends to be less vulnerable to attack from viruses and hackers during transmissions than client based software.
Any FOREX software should offer you real-time quotes and offer means to quickly enter and exit the market. These are minimal requirements of any trading software. Upgraded software packages are usually offered at an extra monthly fee by brokers.
Generally brokers will have client information housed on two severs kept in two different locations. This is to guarantee client data is kept as safe as possible. If there is a power failure or a problem with one server the data is sent back and forth from the second secure server and you will not notice an interruption. Regular back ups of these servers is another way that brokers keep financial data safe in case of server failure.

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Wednesday, December 15, 2010

forex software / Forex Trading Platform

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Author - Gary Berg
As the name says, the Forex trading platform is a place where you can sell and buy the forex. This can also be called the forex-trading station. All forex trading financial companies, banks, traders and brokers will provide their own trading hub. These currency trading or forex trading hubs use sophisticated software's, which have, can perform various kinds of analysis such as technical and fundamental analysis. They also generate data, which is both numeric, and well as statistical base such as graphs, pies, regression data etc.
In most cases the trading stations or the platforms have real time streaming ticker line. This ticker line is being constantly updated and gives the buy / sell currency rate of major currencies in pairs. Forex dealers or traders also maintain fixed spreads on major currencies across the world, which are constant irrespective of the changing financial markets. Most of the trading stations will provide the following
Real time streaming of the major currencies in pairs.
Pricing which is competitive
Fixed spreads in 3-5 pips
Certainty of price for the currencies in buy and sell position
Another factor in the forex trade is that the more creditworthiness an institution or a forex trader is, the better access they have to market information and competitive pricing. This is then reflected also in the trading sessions that the subscribers and the investors utilize. They would have better access to interbank prices and therefore the cost of the execution for the trade in currencies would be better. The currency trade software's provide the following in most cases
Real time streaming currency pair rates. One can click the suitable boxes provided to confirm the sale or the purchase of the desired currencies.
They allow the linkage to currency margin account, which means that you can have more purchasing power with less of investment.
Immediate confirmation of the sale / purchase of the currencies. Of course the cost would be debited to your account. This is done almost simultaneously and in real time.
These currency trade software will also show you the real time profit / losses that you have made in the currency transactions.
Investors must make sure that when they subscribe to these currency trade software's, they read the terms and conditions as many trades may be subject to regulations and the agreement that may be drawn between the client and the websites / currency trade companies.
There are options provided whereby one can also limit or stop the open orders. These can also be cancelled or modified at a later stage in these forex trades. Reports on all forex and currency transactions can also be generated. These reports can be in the form of monthly / weekly reports. One can print these records or download them for later. There are many combinations and permutations, which are possible. Depending upon forex trading packages that each forex trader or financial company may provide, the forex trading stations may differ in features provided.

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