24 hour trading:-
One of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
Superior liquidity:-
The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.
No commissions:-
The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
100:1 Leverage:-
Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.
Profit potential in falling markets:-
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the EURUSD appreciates.
Important Forex Trading Terms
Spread :-
The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
Pips:-
A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.
On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.
The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
Pips:-
A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.
On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.
FOREX CURRENCY TRADING
FX, Forex or Foreign Exchange, is all about exchange of currencies from one hand to another at an ongoing price in the market. Forex is all about investing money in foreign currencies, just gain profit by selling at a higher price, the one you hold, just to buy another one at a lower price. Earlier, not many traders were clear about the Forex trading and that Forex is just short for "foreign exchange", as it did not get much publicity through media.
US Dollar/ Japanese Yen
US Dollar/ Swiss Franc
US Dollar/ British Pound
The FOREX trading market offers its investors with exclusive and lucrative investing opportunities. Other factors like 24 hours open market, high leverage, commission-free trading and easy accessibility through various means of communications has helped Forex to become one of the most popularly invested financial markets.
With a daily volume of about $1.2 trillion money changing hands everyday, the magnitude of Forex market is definitely one of the highest as compared to the Equities and the Futures market. So, you should educate yourself comprehensively and take advantage of this giant investment vehicle.
Marketforex.net provides all the new as well as experienced traders with the opportunity to trade Forex more easily and more advantageously. We offer our clients with quicker results, better deals, higher leverage and superior customer support, thus offering them efficient and genuine Forex trading services through an advanced online trading platform
Foreign Exchange market is the biggest financial market in the world, with a potential of fast and great gains and a sizable number of investors. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors.
About a decade ago, currency trading was only limited to large banks and financial firms because they were the only ones to have access to the tools and methods required to trade Forex market. However recently, due to up and coming efficient online platforms, technology has advanced to the point of being accessible to any and every individual trader who wishes to trade or invest in Forex. Marketforex.net being one of finest online trading platforms is easily accessible by all who are interested in investing in Forex.
Although trading in the Forex market is done for almost all the foreign currencies, there are still, some foreign currency pairs which are considered as “Major” currency pairs as compared to the others. This is because these currency pairs are some of the most traded and most in demand currencies in the Forex trading market. These pairs dominate the percentage of trades and are as follows:
Euro/ U.S. DollarUS Dollar/ Japanese Yen
US Dollar/ Swiss Franc
US Dollar/ British Pound
The FOREX trading market offers its investors with exclusive and lucrative investing opportunities. Other factors like 24 hours open market, high leverage, commission-free trading and easy accessibility through various means of communications has helped Forex to become one of the most popularly invested financial markets.
With a daily volume of about $1.2 trillion money changing hands everyday, the magnitude of Forex market is definitely one of the highest as compared to the Equities and the Futures market. So, you should educate yourself comprehensively and take advantage of this giant investment vehicle.
Marketforex.net provides all the new as well as experienced traders with the opportunity to trade Forex more easily and more advantageously. We offer our clients with quicker results, better deals, higher leverage and superior customer support, thus offering them efficient and genuine Forex trading services through an advanced online trading platform
What Is Forex Hedging?
There are certain basics that any Forex investor should know about, and it is these simple and base principles that will build the foundations of competency when they mature with the market. Basic principles of Forex allow investors, including budding and fresh investors from other markets, to understand its dynamics and fully realise the risks involved when dealing in paper trade. It is only through this realisation that their decisions and strategies can mature enough so that they are able to manoeuvre around market psychology and make money from the market.
This article will briefly discuss the issue on Forex hedging and how it can apply to you. The term ‘Forex hedging’ would mean nothing to you if you are unfamiliar with Forex trading or the Forex market, as with other mechanics of trading and strategy with the paper trade. Investors use this term as a means to reduce their risks in reading. Forex hedging is a protective strategy, a safety net that they place around their investments to lessen the risks and perhaps even increase their odds of survivability in the market. Most people would describe Forex hedging as a sort of insurance plan against investments, which means that you are insuring the money you are putting into the market. But is there a price?
Well yes. Firstly, it is not totally full proof and does not give you full coverage. Hedging will protect your investments to a certain degree, and when something bad occurs in the market, chances of you ending off better than your peers who have opted not to hedge would be significantly high. Essentially, if you’re involved in trading will have the option to hedge, but more importantly, can learn to do so. From large multi-billion dollar corporations to diminutive individual traders, hedging is somewhat extensively practiced. Typically, they do this by offsetting any price-related risk by using market instruments, and the simplest method of doing this is to hedge one investment against another.
Usually most investors do this by investing in two dissimilar things with unconstructive associations. The cost for Forex hedging is pretty high, and sometimes investors feel it does not really warrant use, some feel that the cash payout gained is worth it. As you can see, there are two sides to this camp and often, hedging is avoided by budding investors because it involved the use of derivatives and is quite complicated in nature. Central banks, government, finance institutions and only the more seasoned investors use hedging to protect their investments, which can often run into millions and even hundreds of millions of dollars.
For the casual investor, hedging is not an option just yet, although some might feel that in these uncertain times, it is a good idea to insure their investments and come out safe from even the worst hit situations. Keep in mind whenever you hedge, that the objective of it is not to make money, but rather to protect what you already have to a certain degree. Weigh the pros and cons, and how much you have invested, then the decision to hedge will come much easier.
This article will briefly discuss the issue on Forex hedging and how it can apply to you. The term ‘Forex hedging’ would mean nothing to you if you are unfamiliar with Forex trading or the Forex market, as with other mechanics of trading and strategy with the paper trade. Investors use this term as a means to reduce their risks in reading. Forex hedging is a protective strategy, a safety net that they place around their investments to lessen the risks and perhaps even increase their odds of survivability in the market. Most people would describe Forex hedging as a sort of insurance plan against investments, which means that you are insuring the money you are putting into the market. But is there a price?
Well yes. Firstly, it is not totally full proof and does not give you full coverage. Hedging will protect your investments to a certain degree, and when something bad occurs in the market, chances of you ending off better than your peers who have opted not to hedge would be significantly high. Essentially, if you’re involved in trading will have the option to hedge, but more importantly, can learn to do so. From large multi-billion dollar corporations to diminutive individual traders, hedging is somewhat extensively practiced. Typically, they do this by offsetting any price-related risk by using market instruments, and the simplest method of doing this is to hedge one investment against another.
Usually most investors do this by investing in two dissimilar things with unconstructive associations. The cost for Forex hedging is pretty high, and sometimes investors feel it does not really warrant use, some feel that the cash payout gained is worth it. As you can see, there are two sides to this camp and often, hedging is avoided by budding investors because it involved the use of derivatives and is quite complicated in nature. Central banks, government, finance institutions and only the more seasoned investors use hedging to protect their investments, which can often run into millions and even hundreds of millions of dollars.
For the casual investor, hedging is not an option just yet, although some might feel that in these uncertain times, it is a good idea to insure their investments and come out safe from even the worst hit situations. Keep in mind whenever you hedge, that the objective of it is not to make money, but rather to protect what you already have to a certain degree. Weigh the pros and cons, and how much you have invested, then the decision to hedge will come much easier.
Foreign Exchange Management Act FEMA by RBI
The Foreign Exchange Management Act (1999) or in short FEMA has been introduced as a replacement for earlier Foreign Exchange Regulation Act (FERA). FEMA came into act on the 1st day of June, 2000.
The main objective behind the Foreign Exchange Management Act (1999) is to consolidate and amend the law relating to foreign exchange with objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange market in India.
FEMA is applicable to the all parts of India. The act is also applicable to all branches, offices and agencies outside India owned or controlled by a person who is resident of India.
FEMA head-office also known as Enforcement Directorate is situated in New Delhi and is headed by a Director. The Directorate is further divided into 5 zonal offices at Delhi, Bombay, Calcutta, Madras and Jalandhar and each office is headed by a Deputy Directors. Each zone is further divided into 7 sub-zonal offices headed by the Assistant Directors and 5 field units headed by the Chief Enforcement Officers
FEMA is applicable to the all parts of India. The act is also applicable to all branches, offices and agencies outside India owned or controlled by a person who is resident of India.
FEMA head-office also known as Enforcement Directorate is situated in New Delhi and is headed by a Director. The Directorate is further divided into 5 zonal offices at Delhi, Bombay, Calcutta, Madras and Jalandhar and each office is headed by a Deputy Directors. Each zone is further divided into 7 sub-zonal offices headed by the Assistant Directors and 5 field units headed by the Chief Enforcement Officers
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