Forex
Forex is the Foreign Exchange market. It's a 24 hour market operating just over 5 days a week where currency pairs are traded. Is now the most active market in the world with around 3 billion dollars changing hands everyday. Opening a Forex trade is also very cheap, there is no brokerage and all you pay is the difference between the bid and ask price, which means an entry cost of between 10c and $10 depending on the size of the order you place. As a beginner usually a micro account will be opened where each PIP movement is 10 cents.

The major currency pairs traded on Forex are the USD/JPY, EUR/USD, GBP/USD, USD/CAD, USD/CHF, EUR/CHF, AUD/USD, EUR/GBP, EUR/JPY, and GBP/JPY. The benefit of trading these pairs are the spread is smaller because there are more people trading them. A typical Forex trade will only last only a number of days, but it is possible to day trade Forex with positions only lasting a number of minutes to hours. Trader's that only have positions open for a few minutes are known as scalpers.

Typical online Forex brokers will let you open a practice account to let you practice before using any of your hard earned cash. Some brokers will even give a sign up bonus or run challenges where they give prizes to the highest earner for the week. If you would like to open a practice account Forex account you can check out eToro.

The great thing about Forex is there are a number of robots that have been created that will automatically trade your account for you, taking all of the emotion out of trading and just relying on fundamentals. The best robot that i have seen is FAP Turbo on the left you can see a link to the review of this fantastic robot. If you have never heard of Forex robots before you are in for a pleasant surprise.





Common Forex Terms

Average True Range - This is the average range a currency has moved between over the last 5 or 10 days, its calculated by taking the highs and lows of each day and dividing by the number of days. If the average true range of the AUD/USD is 100pips then the average difference between the close and open is 100pips.

Base Currency - The base currency is the first currency of the pair, for example with the AUD/USD the AUD is the base currency. This means that your profit/loss will be in the quote currency, which in this case is the USD.

Bid/Ask Price- The bid price is what it you will receive when you sell a currency pair (Short). The Ask price is what you must pay when you buy a currency pair (Long).

Currency Pair - A currency pair is what you are trading such as the AUD/USD. You expect the base currency to appreciate/depreciate against the quote currency.

Entry Order - An order to get you into a trade either by buying or selling a currency pair.

Long/Short - Going Long involves buying the currency pair because you believe that the base currency will appreciate in value against the quote currency. Going Short means selling the currency pair as you believe the base currency will depreciate against the quote currency.






Margin - The margin is the required amount of cash in the clients account to keep your positions open. So if you had a gearing ratio of 1:200, your margin would be $500 for a $100,000 trade. If your account falls below the $500 level you would receive a margin call. Obviously it is not a good idea to use all of your account balance on a single trade, refer to risk management on the left to get an idea of how to protect your capital.

Margin Call - This is a requirement by your broker to "top-up" your account with more money to maintain your current positions. If you do not "top-up" your account then the broker will close our some of your positions to protect them and you from further losses.

PIP - This is the smallest price increment in a currency. for example say the AUD/USD is trading at 0.8600, a 1 pip movement would be 0.8601. On a micro account 1 pip is worth 10 cents. up to a full lot size of $10 per pip.

Resistance Level - This is a price that a currency has difficulty breaking, generally as it approaches this level the trend will reverse. If this level gets broken a long entry signal may be generated.

Risk Management - This is a strategy you will implement when trading to protect your account from excessive losses. There is more detail about risk management on the left column.

Support Level - This is a price that a currency has difficulty breaking, generally as it approaches this level the trend will reverse. If this level gets broken a short entry signal may be generated.

Spread - The difference between the Bid/Ask price of a currency pair. The smaller the spread the less it will cost you to enter a trade. If the Bid Price is 0.8600 and the Ask Price is 0.8602 then the spread is 2 Pips, so the currency will have to move 2 Pips in the direction you are going to break even.

Stop Order- This is an order you place at the same time you place your entry order, it protects you from excessive losses if the trade goes against you.

Some of the benefits of trading Forex are:

Greater Leverage - Brokers typically allow gearing ratios of between 1:50 and 1:400 which means you can control large positions with a relatively small amount of capital. The benefit of this is you can spread your capital over more currencies to reduce your risk. Bear in mind that the higher the leverage you use the higher the profit/loss you will experience, it is recommended that only risk capital is used to trade until you are more experienced.

Long/Short Trades - With Forex trading you have the ability to buy or sell a currency pair depending on whether you think the base currency will appreciate or depreciate in value. Also any profits you currently have can be used to trade with without first closing your position.

Low Entry Costs - Depending on what platform you decide to use you can start with as little at $1, which is great when you are just starting out and learning the ropes.

Demo Accounts - Most platforms also come with a demo account so you can trade the markets with fake money before you decide to risk any of your hard earned cash.

Technical Indicators - There are many indicators available when trading Forex, these are used to determine the future direction of currency pairs. The most common ones are bar charts, candlestick charts, MACD, and RSI. More details about these can be found in the technical indicators section on the left.

Forex Robots - There are a number of Forex robots available out there that will trade your account for you. what this means is you can be making money day or night without having to sit at your computer. Robots aren't susceptible to emotions such as fear and greed, so they only rely on market fundamentals and technical indicators.

The main Forex robots i would recommend are The No Loss Robot, IvyBot, Megadroid and FapTurbo. I have provided links to their site below. The reason i recommend the following robots is because they all come with a 60 day money back guarantee to allow you to try out the robots and get your money back no questions asked if you decide its not for you. It would be a good idea to use these robots on a demo account until you are comfortable with the way they work and gain confidence in them.

1) FapTurbo Forex Robot Click Here!
2) No Loss Forex Robot Click Here!
3) IvyBot Forex Robot Click Here!
4) MegaDroid Forex Robot Click Here!