This currency trading tutorial is intended to give you a basic understanding of the FOREX market.
The topics that you need to understand before you start trading are introduced. Before you are ready to begin trading you must obtain a thorough understanding of these topics.
When you open an account with your broker, you will only be required to deposit a small amount of the trading capital you will be using. Your broker will lend you the largest part of your trading capital.
This use of leverage will increase the level of exposure you have in the market. This can multiply your gains as well as your losses.
It is important to pay close attention to this and use stop-loss-orders to help limit your risk.
Currencies trade in pairs.
Some of the most common pairs are the EUR/USD(euro/dollar), USD/JPY(dollar/Japanese yen), GBP/USD(British pound/dollar) and the USD/CHF(dollar/Swiss franc).
The base currency is the first one listed in the pair. This is the currency that will be purchased. It will be purchased with the quote currency, the second one listed.
For example if the EUR/USD is quoted at 1.1, it means that you can buy one euro for $1.11. If a pair is listed 1.46 GBP/USD it means that each British pound will cost $1.46.
Currencies have a bid and an asking price.
The price you pay for the currency is the asking price. The price at which you can sell your currency is the bid. You may be able to buy EUR/USD for $1.11. If you turn around and try to sell the same contract you may only receive $1.09. The difference between the two prices is the spread, or brokers commission.
In order to make a profit from trading it is obviously necessary to decide accurately which way currency prices on the base currency will move in relation to the quote currency.
If you believe the Euro will move higher in relationship to the dollar you would purchase the euro at the current exchange rate with the dollar. An example is 1.11EUR/USD. You will buy the euro at $1.11 because you think the euro will move up and you can sell it at $1.20 in the near term. If however you think the euro is too high against the dollar, you would sell the euro. An example is 1.21 EUR/USD. You would sell the euro at $1.21 with the intention of buying it back at maybe $1.11 in the future to close the position.
Currency traders follow a trading strategy (usually)
Another currency trading tutorial may suggest that you use either technical analysis (reading charts) or fundamental analysis (reading news/economic reports) to make your trading decisions.
This tutorial suggests that you are better off being familiar with both.
You may decide to put more weight on one or the other but having a good feel for both will improve your trading results. By understanding the fundamental issues in the market that cause prices to move up and down you will be better able to predict future price changes.
By having a high degree of knowledge on how to use technical analysis, you can use stop-loss orders to help you limit your exposure to trading risks. You will be able to identify price trends easier as well. If you can use technical analysis along with the fundamental analysis your chances of success will be increased by a large margin.
While this currency trading tutorial has introduced you to this exciting market, you now need to gain a higher level of understanding of the topics discussed here. This is a complex and competitive market, so take your time before jumping in headfirst. One way to do that is to try trading with a free demo account like those offered here.
Content does not apply to US users. La plateforme eToro remporte un énorme succès parmi les courtiers sur Forex, mais quelle est la performance de ceux-ci comparée à celle des autres traders? eToro est sans doute l’un des outils les plus incontournable auprès de ceux qui débutent dans le courtage des devises en ligne. Il faut dire que l’important battage publicitaire autour de cette plateforme y est pour beaucoup!
Question: l’entreprise est-elle effectivement de très bonne tenue, ou bien ne doit-elle sa réussite qu’au seul marketing? C’est ce que nous allons tâcher de voir dans ce compte-rendu.
Pour l’essentiel, eToro consiste en une plateforme de courtage standard qui permet de transiger fonds, actions, devises, indices, etc. Mais là n’est pas la valeur de l’outil, dont la fonction première est de permettre aux néophytes de rassembler les savoirs nécessaires à une réussite rapide dans le domaine du courtage de devises en ligne.
L’une des caractéristiques les plus intéressantes d’eToro est le fait de pouvoir suivre d’autre courtiers, la plupart chevronnés, alors qu’ils effectuent des opérations en temps réel. C’est par l’observation d’abord et l’analyse ensuite que l’utilisateur eToro apprend comment sont réalisées les opérations les plus profitables. Chacun peut évidemment calquer ses transactions sur celles de l’un de ces courtiers étoile et engager par le fait même son propre argent. Si vous n’êtes pas encore aguerri, il s’agit d’élire un trader ayant les meilleurs antécédents et de répliquer ses opérations tout en suivant de très près votre compte.
N’ayez crainte, tous ont beaucoup appris de cette façon à leurs début dans le courtage. Il vaut mieux, après tout, observer les autres et expérimenter empiriquement des stratégies que de rester paralysé à se documenter sans rien comprendre à ce qui se passe en ligne.
Certes, si vous cherchez une documentation approfondie vous trouverez des tonnes d’études et de recherches Forex à partir du site eToro.com. En fait, vous trouverez là tous les outils qui permettent de se forger rapidement un savoir-faire de base dans le domaine du courtage de devises en ligne.
Comme il fallait s’y attendre, la plateforme eToro est simple à utiliser et comprend effectivement quelques fonctionnalités de plus que les autres outils de courtage du genre. L’une des choses que nous aimons essentiellement dans eToro (et ici vous aurez compris que ce compte-rendu est largement positif), c’est le fait que l’outil a été conçu depuis le départ pour satisfaire les non-initiés comme on le voit très bien ici.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
Plusieurs plateformes de courtage de devises en ligne sont trop complexes pour les débutants. Pas eToro. Certes, l’outil cumule davantage de caractéristiques qu’une plateforme de base, mais son ergonomie est telle qu’on ne se retrouve jamais avec un écran surchargé d’informations inutiles. Tout y est simple et d’une grande clarté. En fait, voilà essentiellement pourquoi eToro est si répandu. Il offre même quelques options de courtage en itinérance, depuis le portable.
Même si la plateforme d’eToro est clairement destinée aux juniors dans le courtage de devises, plusieurs traders expérimentés s’y collent, développent leurs connaissances, voire se réfèrent à ses outils particuliers que l’on pourrait qualifier de courtage social. C’est pourquoi nous n’avons aucune hésitation à recommander eToro à tous. C’est vraiment un site web lumineux, qui facilite l’apprentissage du courtage en ligne et démystifie Forex.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
When deciding what market to enter, traders have many choices. One of the key attractions of online Forex trading is its unique flexibility, with a lot of emphasis on providing facilities aimed at helping novices learn Forex trading with reduced risk. A Forex ‘mini account’ is designed for exactly this reason – to provide an easy entrance into the world of real time, live currency trading at reduced risk.
What is the difference between a Forex demo account and a mini account?
Traditionally, foreign exchange trading was a rather exclusive clique, with outsiders expected only to enter the fray if they were experienced and equipped with a wealth of knowledge and honed skills to “hit the ground running”. However, this is no longer the case and many Forex brokers and online forums are designed and dedicated to helping new traders find their way.
One of the key aids is the provision of a Forex demo account, allowing an inexperienced dealer to experiment with the market and develop a trading strategy, without risking any real cash.
Once ready to have a go for real, a good Forex broker will provide the facility to open a mini account (a small account with a very low initial deposit, usually around $100), allowing new traders to deal whilst keeping their investment and potentially their losses, limited to very small amounts.
This provides an ideal entry point and allows the trader an opportunity to experience the thrill and excitement of live trading without worrying about losing large sums of money on a bad trade. The Forex mini account allows you to build confidence and experiment freely before moving on to a larger account and more serious trading.
Why not just use a Forex demo account?
A Forex demo account is a great way to get your feet wet and learn the rudiments of trading, but at the end of the day there is really no substitute for the experience of live trading.
Demo accounts often lend themselves to high risk trades and very aggressive trading strategies, especially with new traders, due to the fact that there is absolutely no risk – you’re not using any real money.
In reality however such trading activity is unlikely to be mirrored when it’s your real money at stake! Trading psychology becomes a very real aspect of trading in the currency markets, and the ability to execute trades confidently and also to hold back when it’s your own money on the line is a key component of long term success.
These skills can be difficult to develop in the risk free environment of a demo account.
How much can I trade with a Forex Mini Account?
Forex Mini accounts, like those offered by Plus500 and other major online brokers, are technically defined as those allowing a trader to deal in lots of 10,000 of the base currency rather than the standard deal of 100,000. Even smaller than the Forex mini account is the micro account where nervous or financially challenged traders can enter deals for lots of just 1000 units.
Whilst any profits made are most likely to be modest in comparison to larger trades, there are a number of benefits to opening one of these smaller accounts. To start with, a mini or micro account is the first logical step for traders wanting to make the upgrade from virtual dealing to exchanges in the real world. Dealing with much smaller amounts of currency allows a trader to feel his way dealing with real money, often a nerve-wracking prospect to start with. Such small trades make losses less consequential and ensure a trader will not get wiped out straight away, one of the
biggest risks for novices.
The main benefit is in building experience and confidence, and overcoming the “fear of the unknown” that stops many traders from taking the crucial step into live trading.Why not go straight to a standard account?
Some traders, especially those who have spent extensive amounts of time on simulation accounts, may be tempted to jump straight into a standard
Forex account but experience has shown this is not always the right approach, regardless of how much virtual experience the trader has gained. One of the most talked about elements of Forex is the psychology of the trade, with the human aspect and tendency to ‘chase losses’ a very difficult urge to ignore.
Studies have shown that on switching from a dummy account to a real account, there is a psychological impact and it can take a while for traders to learn to control their impulses and adrenaline surges that come with both a big win or a big loss.
However, regardless of what type of account operated, it is vital to keep up to date with Forex news and the various updates circulating the market as well as expert tips – as all of these will help a less experienced trader determine the way in which the market is likely to move.
If you’re a Forex trader looking to expand his or her investment portfolio, there is a relatively new financial instrument that you may want to consider adding to your online investments: binary options trading.
What are Forex Binary Options?
Sometimes referred to as digital options – Forex binary options are options that can be purchased for foreign currency exchange rates that offer the opportunity to speculate on whether a Forex rate will finish a predetermined period of time above or below the exchange rate quoted when the option is purchased.
The option finishes in-the-money if the trader selects the correct direction (i.e. trader selects “above” – also referred to as a “call” – and the Forex rate finishes the option period above the rate quoted when the option was purchased) and pays out anywhere from 70-85% of the investment amount.
If the trader selects incorrectly, the option typically pays out 5-10% of the investment amount.
Why would you want to trade binary options?
This financial instrument can be extraordinarily profitable when employed correctly and can also help reduce a trader’s risk exposure in the Forex markets by allowing a trader to hedge his or her Forex positions with a Forex option.
How to invest in binary options
Those of you looking to begin investing in binary options should first try to find an options broker that you feel comfortable investing with.
Some things to look for when selecting an options brokers are:
- intuitive trading interface
- range of underlying assets offered for binary options
- livechat feature to customer support
- range of payment methods available to deposit and withdraw funds
Once you find a broker, you will then want to decide which underlying asset you will want to use for your options. Binary options are offered for stock indices averages, commodity and stock share prices as well as Forex rates.
Those of you who are first and foremost forex traders will most likely want to start with forex binary options since it is fairly easy to incorporate these into your regular FX trading. Most options brokers offer the major currency pairs as underlying assets for FX options so you can take your pick of which of the majors you’re most interested in trading.
Binary.com is a good place to start if you’re looking for an options broker in this field. Check out their offers here.
Once you’ve decided which pair to trade, you will need to decide when and how to speculate on the Forex pair. For this, as well as other trading research, the best thing to do is read technical and fundamental analysis on the currency pair.
Moreover, consulting an economic calendar that shows the upcoming news and events that are likely to affect the value of the forex rate in question can also be very insightful.
Executing your binary options trading strategy
After you’ve created a picture of how you believe the Forex pair you’ve chosen for your Forex binary options investment will behave in the immediate future, it’s time to execute your trade.
First, select how much you would like to invest. This should be determined based up on the payout offered for the binary option you’ve chosen and based upon your other open Forex positions.
Then, determine which direction the asset you’ve chosen is likely to move according to the analysis you’ve conducted on the way the asset has been trading as of late.
Afterward, you must decide which expiry time you would like for the option you are about to invest in. FX option expiries are typically offered in 15 minute increments for popular assets and 30-minute and one hour increments for lesser traded assets.
Finally, execute your trade. Once the expiry time is reached, you will be informed if you option has finished in-the-money or not and the payout will automatically be credited to your trading account balance.
Forex binary options can be a great way to give a trader more control over his or her risk exposure in the Forex markets by offering another tool to profit from movements in the Forex markets.
It may take a bit of time to familiarize one’s self with the way these relatively new financial instruments function, but it’s definitely time well spent if one is able to successfully use them to increase monthly trading profits.
Perhaps one of the simplest ways in which to make money online is through the power of affiliate marketing. On this page, we are going to take a little look at the pros and cons of Forex affiliate marketing (we are going to presume, for the purposes of this article, that you already have some idea about what this type of marketing is).
Without a doubt, the biggest benefit of affiliate marketing is that it is pretty easy to get started. You are just promoting somebody else’s product or service, whether it be Forex brokerage system, or a physical or digital good. You do not need to do any work on that front. You will simply be collecting the commission on the sale.
Of course, the downside of Forex affiliate marketing is that you will not make as much money as you would if you put together your own brokerage or Forex products. It requires far less effort, of course, but the pay-off at the end of the process is going to be a lot smaller. That being said, there are plenty of marketers out there who have never so much as even made their own product and they are still making bank. If you can put together a decent affiliate network of your own, you can make a significant amount of cash.
One of the things that we love about Forex affiliate marketing is that it ensures that you do not put all of your eggs in one basket (something which, sadly, many internet marketers are guilty of). If you are successful marketing one broker, it is likely that you will be successful marketing other products and services related to the FX market. So, over time, you will be able to build up a pretty nice network of affiliate sites, always constantly expanding your skill-set, earning you even more cash.
The amount of investment for each site will be fairly minimal too. At the minimum, you will be paying for a domain name and hosting. If you really wish to be ‘hands off’ (most people aren’t), then you will need to pay for content and SEO, which can get a bit pricey. Once everything is set up though, it is very much ‘hands off’, and you can just watch that cash roll in.
Perhaps the biggest downside, however, is that if there is an opportunity to earn cash for an affiliate marketer, you can bet your bottom dollar that you will not be the only person promoting it. There will be thousands of other affiliate marketers out there targeting the same keywords as you. Basically, if you want to be successful, you are going to need to be exceedingly good at marketing. Remember; you are going to have very little control over the product on offer too. This means you can’t compete on price you, literally, just have to be good at marketing.
I always do encourage new marketers to not start with Forex affiliate marketing, because it is super competitive. Instead, try promoting something a bit easier as an affiliate, even if they have plans to get into Forex later on.
Affiliate marketing will teach you how to produce high-quality content, SEO properly, and even put together a fantastic mailing list, all key skills for any type of online marketing.
Some newbies entering the Forex trading world may not be too familiar with technical analysis, even to the point of not knowing anything about it. Technical analysis is basically the process by which one tries to predict price movements in the future by studying past market data. In short, chart watching.
If you’re going to promote Forex brokers as an affiliate, this is the kind of thing you should be familiar with if you hope to create a site that will generate sales from visitors looking for free Forex info.
A lot of investors use this process not only to gain information on an investment’s price history but to also to see if they are buying at a reasonable price. Technical analysis does not include the study of moods, differing opinions but the study of all market fundamentals that are reflected in price data. In the Forex market there are things called signals, which are the patterns generated by price movements.
The ultimate goal is to reveal the market’s signals by studying past market signals and this is possible because history often repeats itself. As a general feeling, most technical analysts think that price fluctuations and not erratic and can be predicted. In this way trends can come and go and as they usually last for a certain amount of time, they are possible at times to predict. Technical analysis is important for it can help add discipline to your trading whilst also lowering the amount of emotion, you have to be focused on your different trades, making sure that you treat each one the same with specific objectives in mind and with a sure lack of emotion.
There are quite a few price charts that are useful for you to make sure your technical analysis is spot on. For instance Bar charts, which are the most common chart and show price action. Each different bar stands for a set period of time which can be as small as one minute or up to as long a few years. When using these charts, you will see a clear price pattern developed over periods of time. Candlestick charts show the highs, the lows and the opening and closing prices for the time period that it is representing. These charts show patterns which provide great visual detail as they develop. There are also point and figure charts which although resembling bar charts, are unlike them in that they use Xs and Os in order to mark the price direction, they also use no time scale.
There are also 6 main technical indicator types, the first being Trend indicators, which smooth the price data out. This type of indicator makes sure that when there is a persistent up, down or sideways trend it can be seen clearly such as moving averages. Strength is the second indicator which describes the intensity of market outlook on specific prices. This is done by studying the market positions taken by different market contributors. The basic ingredients of strength indicators are volume or open interest.
The third, Volatility relates to the scale of the day to day price variations. These changes in volatility tend to foresee the changes in prices. Cycle indicators point to all the repeating market patterns from regular events for instance elections or seasons and they establish the timing of certain market patterns.
Support/Resistance is also an important indicator as it details all the price levels where the market has risen or fallen again and again and then reversed. This occurrence is due to the basic supply and demand. Momentum is the final indicator and determines the strength or weakness of a specific trend over a certain amount of time. This indicator is highest at the time a trend has just started and at its lowest when the trend changes. It indicates weakness when price and momentum are diverging. The end of movement in that direction is suggested when a price extreme occurs with weak momentum. However if, prices are flat alongside strong momentum it suggests a change in the price direction. Learn more about the forex market here.
Because recent economic news has not been particularly rosy in Europe or the US, we wanted to anticipate the question that is on many people’s minds: “how can I make more money?”
There are several good answers to this dilemma, including negotiating a pay raise, investing in securities or real estate, looking for a higher paying job, cutting personal expenses, or starting a business.
Today we would like to suggest another option for making money that allows you to stay where you are, maintain your lifestyle, and launched with much lower expenses than any other entrepreneurial venture. You guessed it, we are going to talk about how affiliate marketing for Forex companies can be a lucrative side hustle and put money in your pocket.
Everybody can relate to feeling like successes just outside the grasp. We are sure you are no different. You have probably worked very hard to get where you are in life, but for whatever reason you are here looking for a way to improve your financial standing.
so here are five reasons why we think Forex affiliate marketing is the way to go:
1. most Forex companies have excellent tools to help you get started promoting their products. This means you do not have to spend a couple more years in school getting a new classification or certificate in order to boost your income. You can simply learn from the company you want to promote how best to promote it. In fact, many affiliate programs like Etoro have managers that can answer your questions, points you to their excellent educational videos, and provide you with hundreds of dollars in commissions for each person you send their way.
2. You can promote a variety of products, which allows you to reach a very diverse audience with different investing goals and interests. Brands like markets.com not only offer a quick sign-up to their affiliate program, but allow anybody you refer to them to trade currencies, binary options, stocks, bonds, and commodities like gold, oil, and silver.
3. There are a number of ways to promote Forex brokers, which allows you to play to your strengths. Are you great at making YouTube videos? how about websites? Do you have a lot of followers on social media platforms like Facebook and twitter? Depending on how you answer these questions and others like them, you should start thinking about which channel you will rely on as your primary promotional platform. The great thing is it really does not matter which medium you use to reach your audience, as long as you do it well.
4. There is almost an unlimited amount of money to be made. Even if you have a very high paying job, there are few options open to people that will allow them to make thousands of pounds or dollars a day, even while they sleep. If you are able to get your content and affiliate links in front of the right individuals, then you can expect to wake up in the morning to a healthier bank account on a regular basis. So forget about working longer hours and trading more of your time for money, because affiliate marketing keeps working even while you are not.
5. Life is an adventure and there is no thrill like trying something new. Let us face it, most of us get stuck in a rut pretty easily. We wake up, eat breakfast, grab a shower and brush our teeth, then commute to work. We spend scores of hours sitting at a desk all week, staring at a computer screen, and playing office politics, while we look wistfully out the window in anticipation of the weekend. One of the best ways to break the drudgery of the workaday life is to try something new on the side. The problem is, most of us do not have the time or energy for that sort of thing. But with affiliate marketing for Forex brokerages you can work on this project as you have time, an hour here, 15 min. there, whatever suits you. Over time, you will have built up an actual business that will very probably be the one thing that gets you excited every day.
We hope you enjoyed this little article about how affiliate marketing can make a huge difference to your life in bank account…you are here for a reason, and now you know a little bit about how to make some serious cash, so get started because you are not getting any younger. For some great suggestions about where to start, check out our homepage.
Interpreting the strength of the euro as the Greek drama plays out is a difficult task for a number of reasons. Some would say that investors do not perceive Greece leaving the euro while others believe that they will vote yes on the July 5 referendum. Price volatility is bound to increase either way.
One also has to be very cautious about trading short term. The Greek situation is obviously something that captures headlines every single day but the contagion effect that we saw in 2011 and 2012, when there really was very dramatic spill over into other markets in the European zone, has to be kept in mind.
Something else Forex traders need to pay attention to is that, as the recent recovery of the euro on Monday and Tuesday shows, people are getting increasingly reluctant to trade the Euro based on headlines, which means that it is becoming less sensitive to being manipulated by the news.
More investors are thinking about the long-term situation and what it means for the global picture rather than trading headlines.
According to Goldman Sachs, the euro will be trading at $.95 to the dollar within a year. Whether this doomsday prediction will come true depends largely on how Greece handles the current situation, but regardless, Forex traders around the world will be watching keenly for an opportunity to make profits.
Although, US NAHB Housing Market Index, published on Monday, tested September 2014 highs, negative readings of Empire State Manufacturing Index and Industrial Production pulled back the US Dollar Index to register a negative daily closing. At the European front, testimony by the ECB President revealed the dire emergency on the part of the Greece to agree with its international creditors during Wednesday’s meeting to save its position into the Euro-region, pushing down the regional currency. Today, Euro-zone finance ministry officials are due to hold a Greece call ahead of a meeting of ministers later this week. The BoJ Governor, in a publics speech yesterday, said his comments last week, favoring the stronger Yen, wasn’t seemed to strengthen the national currency and he still favors the further weakness into the Yen prices. His comments during the last week was perceived as a hint to halt the BoJ’s easing bias; however, with the current statement, it becomes unlikely that the BoJ, in its meeting scheduled for Friday, could stay away from the loose monetary policy.
Early today, minutes from the recent RBA meeting revealed that the central bank continue supporting lose monetary policy even after cutting the benchmark interest rate twice into the current year as the measures couldn’t gain required benefits with the commodity prices pulling down the AUD and Chinese pessimism continue hurting the economic outlook for the export driven economy.
For the rest of the day, UK CPI, ZEW Economic Indices for EU & GE together with the housing market details from US are likely to take the center stage of the market; however, communications from Greek talks will continue driving the Euro. Should there be any confirmation for the Greek bailout funds, the regional currency is likely to rally.
Given the inability of the greenback to rally, coupled with weaker economics, there are likely chances that the USD may correct further before registering a bounce on FOMC. Hence, it would be into the best interest of the market players to stay alert before buying the USD.