Foreign Exchange Market

by AHmad Hassam The foreign exchange market most often called the forex market is the most traded financial market in the world. Average daily currency trading volumes exceed $2 trillion per day. That is a mind boggling number isnt it. To give you an idea it is 10-15 times the size of the daily trading volume on all the world stock markets combined. While commercial and financial transactions in the currency markets represent huge nominal sums, they still pale in comparison to amounts based

Forex Other Financial Markets (Part II)

October 23, 2009 | By Ahmad Hassam In Online Business | The lower the prices of oil, the lower the inflationary pressures are going to become but this is not always true. The higher the price of oil, the higher the inflation would be and the slower the economic growth is going to become. Take oil as an inflation input and a limiting factor on the overall economic growth. Rising oil prices tend to retard economic growth that in turn depreciates the domestic currency. When you see oil pri

Understanding Spot Forex Market (Part I)

October 23, 2009 | By Ahmad Hassam In Online Business | The spot forex market is a decentralized network of buyers and sellers. There is no physical central exchange that acts as a central clearing house. The spot forex market is an over the counter market.Over the counter means that the buyers and sellers make a binding contract with each other after agreeing on the price and this is not carried through an exchange unlike the forex futures trading that is carried out through the exchan

What Is Position Trading? (Part I)

by Ahmad Hassam There are four style of trading: Scalping, Day Trading, Swing Trading and Position Trading. Position trading is all about taking a directional market position and holding it as long as the trade makes sense from the trend standpoint. This means that positions are held for longer term. Most individual and retail traders do not have the patience for position trading. Retail traders dont have the stamina to stay longer than a few weeks in a trade. Position trading may mean keepi

Understand The Forex Market

By AHmad Hassam Right now forex trading is considered to be the hottest wealth creation opportunity. You can trade forex from anywhere in the world. You only need a computer, an internet connection and a few hundred dollars to begin trading. The foreign exchange market most often called the forex market is the most traded financial market in the world. Average daily currency trading volumes exceed $2 trillion per day. To give you an idea it is 10-15 times the size of the daily trading volume o

Position Trading (Part I)

by Ahmad Hassam Position trading is mostly done by big banks, hedge funds and institutional investors. There are four style of trading: Scalping, Day Trading, Swing Trading and Position Trading. Scalping is very short term like a few minutes. Day trading involves a time frame of less than a day. Swing trading is for a week or slightly more. Position trading is all about taking a directional market position and holding it as long as the trade makes sense from the trend standpoint. This means th

What Are Forex Trading Sessions?

by Ahmad Hassam The currency pairs that are heavily traded during the Asia Pacific session are USD/JPY, EUR/JPY and AUD/JPY. The financial centers active during the Asia Pacific session are Wellington, Sydney, Tokyo, Hong Kong and Singapore. Currency trading volumes in the Asia Pacific session account for about 21% of the total daily global volume. Most of the transaction involves JPY as Japanese companies are trying to convert Japanese Yen into other currencies in order to do business with th

EUR/USD Currency Pair

by Ahmad Hassam EUR/USD is the most liquid currency pair in the currency markets. There are four currency pairs that are known as the major currency pairs namely EUR/USD, GBP/USD, CHF/USD and JPY/USD that are heavily traded in the global currency markets. The rest of the currency pairs dont have the liquidity to trade big volumes as these four pairs do. Almost like 90% of the global currency exchange is in these pairs. Out of these four pairs, EUR/USD has the most liquidity and is the most pop

Treating Currency Trading As A Business

by Ahmad Hassam If you are currently trading for a living or want to take on trading as a future substitute of a current job, then you should remember to take trading as a business. You need to treat it as a business. You need to give some consideration to the fact that how you are going to deduct your monthly expenses such as your computer equipment, your quote feed, your DSL line, travel to investment conferences and continuing education seminars. How are you going to treat trading as a bu

Understanding Fibonacci Trading (Part I)

by Ahmad Hassam What is Fibonacci forex? Did you see the movie, The DaVinci Code? You will find a scene in the movie where the characters talk about the Fibonacci number as part of a clue or code of some sort. The Fibonacci series starts with 0 and 1 and goes out to infinity with the next number in the series being derived by adding the prior two. What are Fibonacci numbers? The Fibonacci number series were made famous by an Italian Leonardo de Pisa. For example, 0+1=1, 1+1=2, 1+2=3, 2+3=5,

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