Stop orders

A stop order is placed to accumulate profits or to prevent losses. To place a stop order, simply specify the price where you'd like to place the stop on. Stop orders are sometimes names stop loss orders, and can occur for both bid and ask transactions.
A stop loss order is a type of Forex Trading limit order that serves as a protection against a large drop in currency price. If the currency price falls beneath the price you set, it is automatically sold, thus ensuring you do not lose too much money.

The Forex Trading Bid & Ask Prices and Spread

This page covers everything you need to know about the bid and ask prices in the online Forex trading market, From the definition of Forex bid & ask prices, to the use of the bid & ask spread.
A Forex Trading Bid price is the price at which the market is prepared to buy a specific currency pair in the Forex trading market. This is the price that the trader of Forex buys his base currency in. In the quote, the Forex bid price appears to the left of the currency quote. For example, If the EUR/USD pair is 1.2342/47, then the bid price is 1.2342. Meaning you can sell the EUR for 1.2342 USD.
A Forex asking price is the price at which the market is ready to sell a certain Forex Trading currency pair in the online Forex market. This is the price that the trader buys in. It appears to the right of the Forex quote. For example, in the same EUR/USD pair of 1.2342/47, the ask price us 1.2347. This means you can buy one EUR for 1.2347 USD.

Limit orders

Forex Trading Limit entry orders are executed only if the currency price touches but not breaks the price you set. Limit orders are done when traders want to set the limit price. These orders are executed only if the currency reaches the limit price you set. Limit orders are used when you want to buy and sell a currency only if it reaches a certain price or better. Let's say the currency pair EUR/USD is worth 1.245, and you buy a limit order of 1.249. This means that the transaction will be executed only if the currency price rises to 1.249.

Market Orders

Market orders are the most basic Forex trading orders that are bought and sold for the current market price. With market orders, the transaction is done regardless of the price. The Forex trading software gives you real time prices, so you can decide exactly when to execute a market order with ease. Market orders are perfect for situations where you follow a certain currency up close. The minute you want to enter a position you can buy and sell the currency at a click of a button using Forex trading market order.
The main thing to remember about market orders is that they are executed for the current market price, and that this is beneficial if you want to instantly enter a position.
The process of placing Forex trading orders is like so:
1. First you specify the currency pair and the size of the deal. Let's say the EUR/USD pair quoted 1.2603/06, for 2 lots of $100 each.
2. Next you choose to either sell each EUR for 1.2603 USD (bid price), or choose to buy each EUR for 1.2607 USD (ask price).
3. Finally, the transaction is confirmed by your dealer. This only takes a few seconds for Forex trading orders.

"If Done" Orders

This Forex trading order is executed only when the previous order is also executed. This way you can work on other currency orders and not have to worry about executing of a specific order. An "if done" order can be illustrated with the following example. Let's say you want to buy a certain currency, but also want to place a stop to make sure you do not lose much money on the trade. You then place two Forex trading orders- one for the first buying of the currency, and the other for the stop. The second order for the stop will be placed as an "if done" order, in order to make sure that the stop will be placed only when the first order is filled.

Forex account activation and confirmation

Because we are dealing with real money accounts, you are required to verify your details and your email, through various needed steps. Before you sign the terms and conditions of the Forex trading account, make sure you understand what the site is offering. You should make sure you understand about the various conditions that include:
- The Forex site's hours of operation and the availability of live support.
- The bid/ask spread that the site offers for major currencies, in relation to what other sites offer.
- Make sure that proper leverage is available through the margin per trade.
- Find out about The minimum account size and lot size.
- Check that there are no small print or hidden commissions that the site's operators prefer you don’t know about.
- If you can, try out the Forex trading platform, as well as the charting and technical analysis options beforehand.
- Check the general contract and make sure you save it along with the requoting policy on your computer.

How to Place Different Types of Forex Trading Orders

In this page we explain about the different forex order types available for online Forex trading. The most important things to remember about placing a Forex trading order is this: Always understand the orders you place. Never place an order which you are not entirely knowledgeable about. You'll be able to see the orders available for you after you open your trading account, so soon after check and learn about the different ones you can make.
There are various Forex trading order types to choose from, and each order has its advantages and disadvantages, which will described in later pages.

How to Open a Forex Trading Account

After you learn about the advantages of the Forex market, you'll want to start trading right away. To understand the Forex trading platform you'll first need to learn how to open your online Forex trading account, wherein all of the currency transactions take place.
Opening an account consists of four basic steps:
- First, select your account type.
- Then, register and enter your deails on the website.
- Next, you have to activate and confirm your account.
- Finally, download the Forex trading platform and start trading with your account.

Selecting a Forex trading account type

Forex trading sites offer different account types. Make sure you find the right trading site, and then the job of selecting the account type will be easy.
One of the differences between Forex Trading account types is the size of the account. There are Forex trading accounts as well as mini accounts that vary in size, and can range between $25 to $10,000. The account size will determine which lot investments are available to you. Create the account according to the funds you want to invest with, and make sure you do not risk to much of them right from the start.
You should also make sure you choose a Forex trading spot account, rather that a futures account. This is the most popular account type, as most online traders want their trades to be done instantaneously.

Forex trading account registration

When you open a Forex trading account, you will be asked to give various personal details, including your credit card details, so you will be able to make real cash trades. Some sites offer Forex trading free training wherein you are not required to give out your credit details in order to open and use the demo account.
In most cases Forex trading registration is done online, even though sometimes you are required to register by fax. This is uncommon though and only occurs for the smaller Forex trading sites.
Forex

How to Choose a Forex Trading Website

So you've decided, rightfully so, that online Forex trading is a profit venue that you want to explore. This is a smart choice because of the earnings options and other advantages the Forex trading market offers.
If you are wondering how to get started in the online Forex business just follow the following page guidelines and you'll be on your way to become a better forex trader.Choosing the initial forex broker is important even before you try them out and trade. To select the right Forex trading broker for you, you need to examine the following factors and then decide which forex broker suits you best.

Steps for choosing forex Trade

Choose the right program for you - You first need to examine each of the websites, according to the services they offer. Some websites are more into online Forex trading advice, for example. If this is not something you are looking for, you need to find a different online Forex trading agent.
Check the commissions before choosing a Forex trading website - Some websites include a registration fee for making the Forex trade while others, including major Forex websites, are free. A website that has fees for Forex trading doesn't mean it is a more serious site.
Examine the Forex trading Website - When you enter a website for Forex trading, examine it and notice the quality of the website's layout. The main factor in online Forex trading websites is the process of entering an investment so pay attention especially for this aspect.

Forex Trading Support and Resistance Levels

In this Forex trading guide we will try to describe in detail exactly what support and resistance means in the following Forex trading lesson. Support and resistance levels are important indicators that can be used to set stop loss and take profit orders using technical analysis.
Support levels are the places where the price of the currency is expected to rise. This happens when there is enough demand for the currency in order to stop the downtrend and therefore causes it to go up.
In order to recognize support levels in Forex trading, take a look at the Forex chart, and try to find a few lows that fluctuate in a horizontal line. This line will be set as the session's support level.

Forex Trading Moving Averages

Forex Trading Moving Averages is a technical analysis indicator that lets you see the average value of a currency over a period of time. In order to calculate moving averages for the past 20 days you add the last 20 currency prices and divide the addition by 20. Because days continue to advance, the sum you'll get through Forex trading will change on a daily basis, and this is why it is called moving averages.
The most commonly used Forex trading moving averages timeframes are 20, 30, 50, 100 and 200 days. Each timeframe can give you a different view and perspective on the future of the currency, and this is why all of these figures are used periodically. Using these different timeframes you can increase your profits and also protect you lots from unnecessary losses, so use it wisely, and frequently.
If the Forex trading timeframe is shorter, price changes will affect it more. If the timeframe is longer, the moving average will be smoother and less sporadic. Moving averages are used in order to recognize a certain trend the Forex trading currency is following, and also to view a clearer and straighter graph, without any added "noise".

Forex Trading Uptrends

An uptrend is a Forex trading trend that occurs when the general direction of the Forex trading currency you are trading is upward.
Forex uptrends are used by traders to make profits while the trend lasts and until it reverses. The goal of most technical traders is to identify a strong uptrend and to profit from it until it reverses, and with this Forex trading trend strategy, you are able to cut down on unnecessary losses. The best way to use uptrends is to sell the currency once the new peak become lower than the previous peek.

Forex Trading Sideway Trends

There isn't much to say about sideway trends, except that they are trend stages in between uptrends and downtrends. Sideway trends usually do not tell much about the currency situation, even though they can hint on a nearing reversal in the trend direction. These are Forex trading trends that are less frequent but still give important information for the online trader.
Now that you've learned all there is to know about Forex trading trends, go on and see how you can use it in the actual Forex trading market.

Consumer Credit Forex Indicator

The consumer credit index is published by the federal reserve every fifth business day of the month. This Forex trading measure is used to evaluate consumer spending. This measure is liable to make considerable changes and fluctuations in its value.
Consumer credit consists of three categories: auto, revolving and other. All in all this indicator is less important than the CPI, but it can also help you gain an understanding of the online Forex trading market

Introduction to Technical Analysis

Any forex trader must apply a certain method in order to predict the future price of a certain currency, that's a given fact. The entire concept of speculative forex trading is based upon future fluctuations in currency prices. You make profit by buying a certain currency in one price and selling by another.
Therefore, the most important thing for any trader, novice or expert, is to have some sort of prediction to future price changes. Thus came to life several different methods of market analysis, each tries to incorporate different methods and data in order to give some sort of prediction to the future price of various currencies.

The Establishment Survey

Non-farm Payrolls - This is a very important employment indicator for the establishment report, and has crucial importance for online Forex trading. it measures how many people are there on payrolls for non-agricultural businesses.
Average Workweek - This measures the average hours worked non-farm payroll employees, and is a fine judge of the overall strength of the employment report.
Aggregate Hours Worked - This index combines the two previous indexes together

The Household Survey

The Unemployment Rate - This index is calculated through the division of the number of people unemployed by the number of people in the labor force.
There are other employment indicators in the employment report but these are the relevant ones for the

The Unemployment Rate - This index is calculated through the division of the number of people unemployed by the number of people in the labor force.

There are other employment indicators in the employment report but these are the relevant ones for the online Forex trading market.

Consumer Price Index (CPI)

This Forex trading economic indicator is published by the Bureau of labor statistics in the U.S. Department of Labor, every 13th of a month. The economic index is relevant for the passing month, and measures the price of a fixed basket of goods and services that is bought by consumers. This is the most used measure of inflation, an important tool for the Forex trading market.
It is important to state that this Forex economic indicator does not measure technological commodities which change in price, and this is something the CPI has been criticized for.
When you use the CPI to measure Forex trading price changes, you should always remember to take into consideration the movements in the food and energy prices, because they can change and rise or drop regardless of the Forex currency or the inflation levels.

The Employment Report

This report contains two employment reports inside: the household survey and the establishment survey.
The household survey is an employment indicator concerned with households, and is smaller, covering only 50,000 households.
the establishment is about businesses, is more comprehensive and thus it is preferred by analysts of the online Forex market. It covers 400,000 businesses with 47 million people.

Economic Indicators that Influence Inflation Indicators

Gross Domestic Product (GDP) – This measures the total market value of all goods and services that companies make within the country. This is an indicator of the growth pace of a country, and can tell the trader much about the prospect of inflation indicators.
Producer Price Index (PPI) - This measures price changes in manufacturing. It measures the changes in selling prices for the various manufacturers. The prices of manufacturing are at a close link with inflation indicators, and thus can help predict the online Forex trading direction.

The Employment Cost Index (ECI)

The ECI is an important Forex employment indicator, and is published in a quarterly report from the U.S. Department of Labor. It measures the growth of employees' compensation, and this includes the wages and benefits that employees get.
The information in the survey is based on a report that is held at the end of the month every quarter. The information that is tracked by the ECI is the wages movements, the fringe benefits and the bonuses that are given to employees at various levels of the organizations.

Major Forex Economic Indicators

The Gross Domestic Product (GDP) - The sum of goods and services produced by domestic or foreign companies.
Industrial Production - A measure of the production change, industrial capacity and resources of a country's factories, mines and utilities.
Purchasing Managers Index (PMI) - A monthly index of a country's manufacturing conditions, including new orders, supplier delivery times, inventories, prices, employment, export orders, and import orders.

Starting to use Forex economic indicators

To get started, you should first keep a log of all the important Forex economic indicators' release dates. Keep a log or make a subscription to one of the economic journals, so you'll know the most important factors of that time. If you are trading in JPY, the Forex economic indicators need to be relevant to the currency type, of course.
Each economic indicator tells you about a different aspect of the economy, and this should be translated in turn into the predicted movement of the currency price. Make sure you understand which aspect the indicator is about. For example, know that the GDP measures the growth of the economy while the PPI measures inflation. Don't worry, with some experience this will come naturally.

Forex Economic Indicators

The execution of fundamental analysis in the Forex market is done through the use of economic indicators. These indicators point to the state of some economical factors in the country whose currency you wish to trade with.
Economic indicators are published by various sections of the government and private companies. These statistics are analyzed by market investors to predict the direction of the Forex trading market. Forex economic indicators are published at fixed time intervals, and are followed by any serious online Forex trader.
Since so many people are tuned to use them, Forex economic indicators have a large impact on prices of currencies of the Forex trading market. Most traders do not use fundamental analysis because economic indicators seem difficult. This however is wrong because following simple guides can help you stay updated with the important Forex economic indicators easily.

Fundamental Analysis Vs Technical Analysis in the Forex Trading Market

The main difference between fundamental vs technical analysis of the Forex trading market is that, while fundamental analysis uses economic, political, social and other factors that affect supply and demand of the trading Forex market to foresee price movements, technical analysis uses mathematical and graphical charts of previous market action, in order to analyze the Forex trading market.
The basic difference between Forex fundamental and technical analysis is therefore that:
- Forex Fundamental analysis uses various factors that influence supply and demand to predict the currency change.
- Technical analysis uses charts of previous currency change to predict the currency change.

Major Currencies and Major Participants of the Forex Trading Market

In the Forex trading market, you have several currencies to choose from. Most Forex trading deals are done using the major currencies. These are the seven most frequently traded currencies.
The major currencies include:
USD – United States Dollar
EUR – The European union Euro
JPY – The Japanese Yen
GBP – The UK Pound
CHF – The Swiss Franc
CAD – The Canadian Dollar
AUD – The Australian Dollar
All currencies other than the major currencies are called minors
Trading these major currencies are banks, companies, investment firms, hedge funds and Forex trading brokers.
Banks do a lot of the trading themselves. These include trades that are done for the bank's clients and ones that are done for the bank itself. Banks can trade huge amounts of major currencies, depending on the size and funding of the bank

Understanding and Trading Forex Currency Pairs

Any Forex trading transaction is made of the buying of one currency and the simultaneous selling of another currency. The two Forex trading currencies being traded are called the currency pair. A currency quote is made of these two pairs of Forex trading currencies, situated together and divided by a line (for example, EUR/USD).
There are various Forex currency pairs to choose from. These are divided into major and minor currencies. Major currencies are the seven most frequently traded currencies, which include the USD, EUR, JPY, GBP, CHF, CAD and AUD. All other currencies are called minor currencies, and include the NZD (the New Zealand dollar) and the ZAR (the South African rand).

Forex Vs Equities

Any novice Forex trader questions himself sooner or later – "Why did I choose the Forex market, is it definitely the best financial market for me?" Usually this question arises from curiosity and nothing else, but curiosity must be satisfied.
In the next two articles our team will point the evident advantages the Forex market has over other well-known financial markets, starting with the famous US equities market. Any person with a feel for economics and trading experiences some sensation to the sound of Wall Street, but does it truly measure up to the colossal forex market?
First, the key benefit the forex market offers is its 24-hour accessibility. When you are trading forex it doesn’t matter at all whether it is 5am or 5pm. Time differences and market dynamics make sure there will always be an eager trader somewhere around the globe looking for a deal. This feature gives you the privilege to respond to any financial developments, as soon as they transpire. Furthermore, the prices of forex can not be affected from after-hours trade.

Online Forex Trading Profits

Another example of an online Forex trade: If you buy EUR/USD, this means you are buying euros, and simultaneously are selling dollars. Your expectation therefore is that the euro will appreciate (go up) relative to the US dollar.
If you believe that the US economy will weaken and this will hurt the US dollar, you would execute a buy EUR/USD order. By doing so you will buy euros in the expectation that the currency will appreciate against the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a sell EUR/USD order. By doing so you have sold euros in the expectation that they will depreciate against the US dollar. More information concerning online Forex trading is available at Forex Floor

Foreign Currency exchange rate

Currency exchange rate is the ratio of one currency valued against another. For example, "EUR/USD exchange rate is 1.2505" means that one euro is traded for 1.2505 dollars. If you've already invested in other markets before, you'll find the Forex trading system quite similar, and the transaction to online Forex trading smooth. An example of a Forex trade: During October 2006 you buy 10,000 BRP when the BRP/USD rate was 0.56. A month later, the exchange rate grew to 0.58. This means a profit of $350 in less than a month time.

Online Forex Trading Introduction

The online Forex market, also known simply as Forex, FX or the foreign exchange market is the biggest trading market in the world, with daily Forex trading that exceed $2 trillion.
Even tough we are talking about a huge market, Forex trading is quite simply - the buying of one currency while at the same time selling of another currency. If the trader can predict correctly which currencies will drop and which will rise - he will benefit from his investment.
There are a lot of benefits in Forex investing over other investment markets.

Forex Vs Currency Futures

If you have read our article comparing forex to equities you probably already know why Forex is a superior market in measuring up to the equities market. In this article we will evaluate the Forex market in conjunction with the currency futures market. Of course there are various points of distinction between each of these markets – historical, philosophical and technical to name a few. In this article we will review some significant differences between the two markets that reflect the way you trade and make money in each of them.
One of the biggest advantages the Forex market has to offer is its unparalleled volume. In fact, the amount of money traded every day on the Forex market is over 50 times bigger than the volume on the futures market. If you have read our previous Forex trading articles you probably already know that the Forex market is the biggest financial market in the world. Fact is that this size does not only indicate the popularity of the market but most of all it shows the amount of trading opportunities you can find on this market. The Forex market offers a place for any trader, from the smallest pastime traders to the professional, high-rollers.

Why Forex Trading

If you want to know why the Forex trading market is superiors to other investor options such as Equities or the futures market, then you can rest assure that you'll find the answer in this page.
The best way to clarify the advantages of the Forex market is through a real example. In 1929, the stock market collapsed, causing many people and businesses from around the world to go broke. This also happened when the high tech bubble burst. The fear of a market crash is a concern that constantly dwells in the minds of investors, both professional and beginner ones.
In the online Forex trading market, There is no way for the market to crash. If you have read about what is the Forex trading market, then you know that when you buy a certain currency, you are at the same time selling another currency. When some currencies' price false, others' price rise.
So this is the most important advantage of Forex day trading. Unlike other markets, where in some cases all traders lose money, with Forex trading there are always traders that make a profit, at any given time.

Fully automated click & deal trading, with instantaneous fills

At FOREX.com, we've always automated processing for all click & deal forex trades. When you click BUY or SELL, our systems perform a real time margin check and, if accepted, immediately respond with a trade confirmation. Why is this important to you? First, you benefit from an unbiased trading environment that is not subject to human intervention. Second, automated trade processing improves our efficiency, which lowers our overhead and allows us to pass along the saving to you in the form of tighter spreads.

Forex trading History Explained

The modern online Forex history begins in 1973. Even though currency trading has been around since the times of ancient Egypt, which at that time the market was extremely primitive, and there were no advance trading tools as today's fundamental analysis, for example.
The first currency coins were used at the times of the pharos, and the first paper notes were then introduced by the Babylonians. Later on, the roman coin called aureus was used, which was followed by the denarius. Both coins had worldwide use, making them the first global foreign currency coins.
The Bretton Woods System (1944-1973), came after the great instability of World War II. England and other European countries were left in ruins, after the war ended, while the US's economy was left relatively stable and strong.
The USD became the prominent currency after WWII, mainly because of the war. The Dollar also became the new global reserve currency, and remained so throughout the rest of the Forex history. This was agreed upon in the Bretton Woods conference, when all of the other foreign currencies were pegged to the USD, and a new international financial network was formed.

GAIN Capital Group

FOREX.com is a division of GAIN Capital Group, a dedicated partner to professional FX traders and fund managers worldwide. Institutional services include IB programs, white label solutions, and asset management. Individual forex traders can take advantage of the market expertise and financial strength of GAIN Capital Group and access an institutional FX trading platform, FOREXTrader, along with our powerful real-time forex charts, professional forex market research, and suite of advanced forex trading tools. For traders new to the currency trading, FOREX.com offers forex training programs, forex minis, and information about trading the foreign currency market.