Forex? What is it, anyway?

Forex? What is it, anyway?

The Market Explained

The currency trading (FOREX) market is by far the biggest and the fastest growing market on earth. It has a daily turnover of more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover. (click here to read full market background by Easy-Forex™).

Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.

How does one profit in Forex?

Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market.

The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200). If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes.

Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts, but you never lose more than what you initially risked and invested.

You can implement your choice (the pair of currencies, the volume amount) under any direction to which the market is moving, and yet make profit. It does not matter whether the exchange rate is going up or down: you can always decide to buy Euro and sell dollar, or vice versa - buy dollar and sell Euro. You don't have to physically possess certain currencies in order to perform "buy" or "sell" with them.

How do I start?

Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading "margin" amount (credit cards are welcome, only by Easy-Forex™);start trading.

It can't be simpler or easier than that. Need help? We'll provide you with 1-on-1 training and service, as much as necessary (Easy-Forex™ offers real people service, live, in your own language).

How do I trade Forex?

You select the pair of currencies with which you wish to make a Forex deal. You determine the volume (the amount of the deal). You deposit the "margin" (collateral needed to facilitate the deal. Usually - only a very small portion of the whole deal, say: 1% or 1:100).

Before you finally activate the deal, you can still "freeze" it for a few seconds. That enables you to either change the terms, or accept it as is, or altogether regret the whole idea. The "freeze" feature is a unique service by Easy-Forex™.

When your Forex deal is running (you hold an "open position"), you can monitor its status and check scenarios online, whenever you wish. You may change some terms in the deal, or close it (and cash the profit, if any, or minimize the loss, if any). Moreover, Easy-Forex™ lets you determine a "take-profit" rate, with which the deal will close automatically for you, when and if such rate occurs in the market. Meaning: you do not have to stay near your computer when you hold open positions.

MARKET SIZE AND LIQUIDITY

The foreign exchange market is unique because of

• its trading volumes,
• the extreme liquidity of the market,
• its geographical dispersion,
• its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
• the variety of factors that affect exchange rates.
• the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
• the use of leverage

Top 10 currency traders
% of overall volume, May 2008

Rank	Name	Volume
1	Deutsche Bank	21.70%
2	UBS AG	15.80%
3	Barclays Capital	9.12%
4	Citi	7.49%
5	Royal Bank of Scotland	7.30%
6	JPMorgan	4.19%
7	HSBC	4.10%
8	Lehman Brothers	3.58%
9	Goldman Sachs	3.47%
10	Morgan Stanley	2.86%

most traded currencies

Currency distribution of reported FX market turnover

Rank	Currency	ISO 4217 code (Symbol)	% daily share (April 2007)
1	United States dollar	USD ($)	86.3%
2	Euro	EUR (€)	37.0%
3	Japanese yen	JPY (¥)	17.0%
4	Pound sterling	GBP (£)	15.0%
5	Swiss franc	CHF (Fr)	6.8%
6	Australian dollar	AUD ($)	6.7%
7	Canadian dollar	CAD ($)	4.2%
8-9	Swedish krona	SEK (kr)	2.8%
8-9	Hong Kong dollar	HKD ($)	2.8%
10	Norwegian krone	NOK (kr)	2.2%
11	New Zealand dollar	NZD ($)	1.9%
12	Mexican peso	MXN ($)	1.3%
13	Singapore dollar	SGD ($)	1.2%
14	South Korean won	KRW (₩)	1.1%
Other			14.5%
Total			200%

Forex Success Key Points & 7 Reasons of Forex Trading

3 Primary Reasons to Trade with Asia Kapitalindo

1. Asia Kapitalindo is a very respectable broker.

Aside from being registered to all three Indonesian futures associations: Bappebti, BBJ and KBI, there is no bad word-of-mouth nor bad review from the internet about Asia Kapitalindo. News spread really fast on the internet and yet there has NEVER been any bad mouthing of Asia; that's pretty impressive we must say.

2. Asia Kapitalindo provides a fixed spread of 5 pips.

There are many international brokers that claim to provide low pips as low as 1-2 pips but widen the spread to tens of pips during certain times. Asia Kapitalindo's spread might be relatively larger than the

Forex Faculty thinks that forex trading is the ultimate way to take you to your financial freedom. But why? What are the reasons? Are they good? Also as importantly, are they valid?

There are a lot of people that have reached their financial freedom state. Take Bill Gates as an example. We bet a hundred bucks that he's financially free now. Did he get there by forex trading? Maybe, we don't know him personally but we're pretty sure it was most likely due to his business in developing the "Windows" platform.

Besides Bill Gates, there are a lot of other people that do not have to worry about their financial state but they have never been involved in currency trading before. So why does Forex Faculty make this controversial claim?

We want to persuade you that there is a very strong reason to start forex trading. This is one of the financial foundations toward a successful forex trading. You must realize the potential of forex trading before you can have the right mindset, attitude, and confidence while trading. And as you have probably known, having those 3 components are crucial in to make the appropriate decision during forex trading.

So first of all, let's be clear about the state of being "financially free". We should list the criteria of being financial freedom. We believe that achieving financial freedom should have the followings characteristics:

1. having sufficient income to cover the current "wants"
2. #1 should not be bounded by location, that is, having sufficient money anywhere
3. #1 should not be bounded by time, that is, having sufficient money anytime
4. #1 should be fast paced, that is, sufficient income should come at a rapid pace
5. #1 should be based on a safe environment, that is, can get income safely without worrying about scam, fraud, and the likes
6. there has to be a LOT of opportunity for #1. That is, when 1 opportunity is gone, another one is already at hand to be operated on
7. attaining #1 should be simple enough, that it does not require tremendous hardwork.

These are the Key Success Factor in attaining financial freedom. That means, if your curent job has a very strong similarty to those characteristics, then you are pursuing your financial freedom in the most effective way possible. And this is exactly the case with Forex Trading.

Forex Trading:

1. if successful, is one of the best source of income to cover all your "needs" and "wants". That is because it promises an unlimited return while at the same time you can significantly minimize the risk.
2. is not bounded by location. You can trade currencies anywhere there is an internet connection
3. is not bounded by time. You can trade currencies anytime as long as you are connected to the internet
4. is happening in a very fast pace fluctuating market. That means, you can earn a lot of money at a very rapid rate.
5. is very safe. As long as you are trading with a registered, trustable and respectable broker, your money is basically sitting there, untouched, for your trading convinience
6. involves 2 vertical dimensions and typically more than 5 horizontal dimensions. Whether the market is going down or up, you can earn money. And when a market of a specific currency is not presenting good opportunity, you can always switch to another market.
7. And lastly, forex trading is one of the simplest forms of investments.

forex

Entering into the 1950s, the United States of America had a distinct advantage over war-torn Europe. While Germany was heavily sanctioned, England, France, Italy, and several other Old World nations were just coming to terms with the heavy investment needed to rebuild their countries.

As a way to make it easier for the rest of the world to rebuild, the Bretton Woods Agreement was adopted. It was innocuously simple: in an effort to keep the United States of America (USA) from buying everything in sight, the Bretton Woods Agreement kept the USA in check by requiring all foreign currencies be pegged to the US Dollar. Some pegs were strong, some pegs were weak, but at the end of the day they never moved more than 1% in any direction. Like today's problem with the Chinese Yuan, forced to a peg against the dollar, it kept a constant, controlled flow of US dollars out of the country.