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Foreign Exchange

Written by ForexCult Team
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Foreign Exchange If you are a trader and you are considering trading in the foreign exchange market, it is important that you take the time to sit down and actual study the foreign exchange market because there is so much information out there that you need to learn about the market itself. You also need to know as a trader who you are trading against so that you will know where you stand in the trading field. There are many different types of people that are involved in foreign exchange trading and there are also very high rated companies and corporations that are also involved in the market. That is why it is important that you get the knowledge you need to enable you to be able to trade against these different people. You can learn about foreign exchange through books, which is the best way because you can actually sit down and read the books until you have a general idea of what they are talking about. The other methods that are used for learning about foreign exchange are the advice of others that are already involved in the market trading and also by trail and error methods. When you take into consideration the advice of others it is important that you take the time to see if that person has the same trading personality that you do, because if they don’t you may have a different method of handling foreign exchange trading than they do and this could cause you to fail in the market. Foreign Exchange and the Basics Learning the basics of foreign exchange is the most important thing that you can do as a trader in the market. By learning the basics of trading, you are allowing yourself to gain valuable knowledge in the field that will enable you in the long run to run with the best of the competition. Over the years the popularity of the market has increase dramatically and with that being said you should take into consideration that there is more and more information that is being established about the market and tips that you can learn to help you succeed. Now let’s review a couple of the basics to get a head start on your progress in the market. The first thing that you should take into consideration is the meaning of foreign exchange. The foreign exchange market is also referred to a couple of more names that you may have heard of like the FX market and also the forex market. The foreign exchange market is the biggest market of finances in the whole wide world. The estimated daily turnover is around one point two trillion dollars in United States money. In case you are not aware of what foreign exchange actually consists of it is important that you know that foreign exchange is actually the simultaneous purchasing one particular currency and the selling of another type of currency. The currencies that are traded in the market are always trade in pairs of two and are on an actual floating exchange rate. Foreign Exchange and the Central Location When it comes to the foreign exchange market, there is no actual centralized location for the market itself because it actually takes place in several different financial intuitions that are located around the world in different places. However, futures and also stock markets are all centralized markets. Some people even consider the foreign exchange market to be an over the counter market also referred to as an OTC market and interbank market. The reason that some people refer to the foreign exchange market as a interbank market is because the transactions that take place within the market are actually handled between two counterparts either by telephone communication or by electronic network communication. As a trader it is also important that you know who the participants in the foreign exchange markets are. When it comes to the fact that people refer to this market as an interbank market you can take into consideration that the reason behind this based upon the fact that in the past history of the market it has been dominated by banks, which include central banks, commercial banks and also investment banks. However, this is not so much the truth these days because the market’s percentage of other participants in the markets has elevated greatly and now includes many different participants. Now the market includes large multinational corporations, option traders and money brokers just to name a few of the new additions.

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Which is the Best Forex Broker you have traded with?

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.

Broker of the Month

5_small_logoUFXBank provide up-to-date charts and news feeds, coupled with an easily navigated trading platform. UFXBank traders can access the biggest market in the world 24 hours a day with ease.

By keeping their platform, site and deposit process simple, safe and secure, UFXBank have become the web’s premier online forex trader.