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Article » Forex Foreign Exchange Spreads
Forex Foreign Exchange Spreads
Apr 28 2007, 18:40
Forex Foreign Exchange Spreads

Today, we are going to talk a little about forex foreign exchange spreads. As you may or may not know, it is important when you are relating to the exchange rates that are located in the foreign exchange market that you refer to them as the bid and ask rates because that is how they are quoted. You should also know that the actual difference between what is known as the ask rate or purchase rate and also the sale rate or bid rate is actually called a spread. You will notice that there could be a very recognizable difference in the actual spread when you are referring one particular currency pair to another currency pair, it all depends on whether the currency pair is known to be weak or if the currency pair is known to be strong, not to mention the past volatility and the actual anticipated volatility. You should also keep in mind that there is four different unique ways to actually trade forex. The first way that you can trade forex is by spot market. The second way that you can trade forex is the forwards and also the futures. The third way that you can trade forex is by options and the last way that you can trade forex is by spread betting.

Forex Foreign Exchange Spreads and Benefits of Trading Forex

There are a couple of advantages of trading forex in the forex market and I would like to take the time to tell you about them since you know what the forex foreign exchange spreads are. You should know by now that FX trading is known as one of the unique most populated and also the fastest method of trading that is now available. However, when it all boils down to what is known as active trading, you will find out that it is actually hard to find something better than currencies trading as well as forex trading. In this paragraph and the one to come I am going to tell you about the advantages that you will have when it comes to currency trading. The first benefit that you will have is that the forex market is known as an active twenty four hour market and that is mainly due to the present overlap that is between the markets that are considered to be major and that are located in Europe as well as Asia and also the popular United States. In the dealer rooms you should know that the dealers are indeed working three shifts to make sure that your needs are met. This is the main reason that the clients actually have the ability to actually place what is known as take profit as well as stop loss type orders will the actual brokers so that they are available for execution overnight. You should know that the fx market is opened Sunday from twenty three hundred hours to Friday at twenty three hundred hours so that the individual traders are able to have the chance to respond quickly and as soon as possible to the news of the market as well as being able to determine their individual trading hours.

Forex Foreign Exchange Spreads and Liquidity

As you probably already know if you have done your homework the subject of forex trading has actually became really popular over the past thirty years. In fact, it normally averages on a daily basis around one point five trillion dollars, this actually makes it around forty six times larger than the futures markets all combined together and also makes it the most liquid market in the entire world. As you may know in the past the forex market was actually limited to those big time banks and corporations but now it is even possible for the small guys to get into the forex trading. Before I go, I would like to make sure that you know that there are many resources that you can turn to so that you are able to know all about the forex foreign exchange spreads and so that you are able to see how they relate to forex trading. The forex foreign exchange spreads are very important to you when it comes to the forex market. I have one favor to ask of you as a trader and that is to make sure that you take the time that is required to make sure that you are able to acquire all the information that you need on the forex market because I have seen that so many people don’t take that time and in the long run they end up paying for it.
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Interview
with Matthew Sheppard
Senior Forex
Advisor at XForex


1. What is your name and position?
Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.

2. What is your experience and professional background?
In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.

3. What type of clients you deal with?
We deal with clients on all levels from the beginning stages to the more advanced trading levels.

4. Does most of your business activity come from the online or offline world?
Because of our high presence on the web, most of our business comes from the online world.

5. Why should a trader pick XForex from all forex brokers?
Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..
Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.

6. From your experience, what advice would you give a person who wants to enter the forex world?
My advice to the beginning trader entering the Forex world is as follows:
• Learn the market and understand what you’re getting into.
• Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
• Invest smartly and calculate your risks
• Always know when to get out of a trade

read more forex interviews



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