Forex Guide Online

Forex strategies revealed

This online Forex guide is the ideal tool for those who want to explore the world of Forex, but also for those who already are experts and want to deepen their knowledge.

This guide in fact, within its structure, enters the vast world of this market and Forex strategies are revealed to succeed more easily in this fascinating field.

First of all, what is the Forex?

Check also “Forex Terms“, our comprehensive glossary.

The Forex ( or foreign exchange market or currency market ) is the market where one currency is traded for another and it is one of the largest markets in the world. The purpose of Forex is mainly to buy at a low price and then resell at a high price. The Forex exchange market is no different from the others, whose aim is the same. The assets covered in this market are rates of currencies of different countries, each of which has its own price that can vary during the day. To make a profit from it, the trader must be able to determine which are subject to a depreciation of currencies and which may have a re-evaluation. The various software Forex online are able to provide quotations of the currencies in real time.

Understanding Forex Data

Understanding changes in currencies is fundamental. For each currency it is assigned a three letter code. For example, the encoding of the euro is EUR, USD is for the U.S. dollar, Swiss franc CHF, GBP British pound, Japanese yen (JPY). The prices of currencies are the ratio of the units in proportion to other currencies. Prices are represented by words of 6 letters composed by the currency codes. The first position is occupied by the currency more expensive and prices are expressed in units of the second currency for the first unit. For example, the EURUSD shows the number of U.S. Dollars in Euro.

When prices are subject to change and, as example, the EURUSD exchange rate changed from 1.3345 to 1.3346, there is a variation of 1 point and in this case there is an appreciation. In case the value passed EURUSD from 1.3345 to 1.3344, there is always the change of 1 point, but it is called depreciation.

In order to start trading in the Forex market, you must register to an online trading platform that allows you to open a demo account and allows it to operate with a minimum investment of $ 25, with no monthly maintenance cost.

Each participant can enter the Forex market as a seller or as a buyer of a particular currency. During the process of exchange, the purchase price of a currency is always higher than the sale: for example, if we decide to work on the EURUSD we have in the table a real-time purchase price of 1.3343, while the selling price, the lower the EURUSD 1.3340. The price for purchase is called ASK and the selling price BID. It is therefore very important to the appreciation of one currency and the winning strategy is to buy the currency at a specified price and then sell it (SELL) when it has increased in value. The obvious conclusion is that if you open a position (OPEN) buying EURUSD and want to close it immediately (CLOSE), you get results in a loss. Therefore you will need to work to make a profit on the currency in anticipation of an appreciation or depreciation, moving in the right direction, whether you want to buy or sell.

There are some useful tools that can help you protect your funds from sudden and unexpected loss. These instruments are called STOP and LIMIT tools. Every time you open a position you may decide to close it at any time of day (excluding holidays). To avoid significant losses in situations where you can not have continuous control of the situation, we can establish a point beyond which the automatic STOP deal is automatically closed. The limited tools can be used instead when you want to close a position that has profit.

Choosing a Good Forex broker

In conclusion, the basics to learn to operate in the Forex are few and simple to understand. However, we recommend that you get to know the market before launching with major investment. Articles, news and educational materials are a fundamental step for those who do not want to lose their investment and want to earn through this market.