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Forex Foreign Exchange Market

Written by ForexCult Team
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Forex Foreign Exchange Market In the following article, I would like to tell you about the forex foreign exchange market and what your future may be in this market if you decide to be a trader in this market. There is a lot of information about the forex foreign exchange market out there if you are willing to take the time to learn about it and I hope that you will because you are going to need to have a really good background of knowledge when it comes to trading in the forex foreign exchange market. However, don’t feel like you are pressured to learn all the information that you are provided with because you don’t have to, you just needs to know that there is a different style of trading and that there are different opportunities out there for you if you are willing to become a part of the forex traders. The Basics of the Forex Foreign Exchange Market One thing is for certain and that is that you are going to need to know the basics that are behind the forex market. First, you should know that the word forex is a short version of the foreign exchange and the forex market is known as the largest market of finances that is in the world. This market is different than the other markets because of the fact that it is open for twenty four hours a day and it is open six days a week for your convenience. You should also know that the forex market isn’t like any other market because of the fact that it doesn’t actually have a fixed exchange. In this market there are a lot of people and companies that participate in forex trading. For instance, you have the major banks as well as the brokers and also the financial institutions and also private individuals as well. There are many opportunities in the forex foreign exchange market and I will tell you about them in the next paragraph. Forex Foreign Exchange Market and the Trading Opportunities Due to the fact that there are so many different currencies that are actually traded in the forex market, the forex market is able to provide the different traders with what is known as an extreme level of volatility as well as the volume which takes place on a day to day basis, which in turn gives them the opportunity to make profit in a number of ways. Forex is also the system that actually allows the individual traders to actually be able to profit from the markets whether they are rising or falling and there are many tools that you can use as a trader to actually manage the risk. Forex also allows the ability to trade with even small margins requirements that are used as high levels of leverage and that are normally offered by a forex broker to the trader of the forex. Forex Foreign Exchange Market and Margin Requirements In case you don’t already know, currencies are allowed to be traded based on the margin. What this means in term is that you can make normal use of the leverage to your advantage when you are trading. You will find that the actual requirements seem to vary among the brokers but it normally stays in a range from one to four percent. So, if your broker requests one percent that means that you will have to give them one percent of your initial deposit. Now let’s take a look at the buying as well as the selling of the trades. When you are looking at a currency chart you will notice that the trades are always quoted in pairs and this will tell you what one currency is worth when it is transformed into another currency. Keep in mind that the only time that you are going to want to place a trade is when you think that one currency will be increasing in relation to the one that you are selling. If you are right and the currency does increase you will be able to lock in the profit. When it comes to your ability to be a sharp trader you need to make sure that you are able to watch the trades and see how the system works so that you will be able to form a conclusion based on the information that you have been given. If you are able to be correct about the movements in the market, you will be shocked at how much you can do.

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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.