Welcome to Forex

Go to a dinner party and mention your involvement with forex and you?re likely to get a few baffled looks. Most people don?t have a clue what forex is or how it works. Worst of all, neither do most beginning forex traders. Understanding what makes these markets tick is a good step towards a successful trading record.Forex Trading - An introductionThe purpose of these articles is to introduce the forex market to you. As with many markets there are many derivative of the central market such as futures, options and forwards. In this book we will only be discussing the main market sometime referred to as the Spot or Cash market. The word FOREX is derived from the words Foreign Exchange and is the largest financial market in the world. Unlike many markets the FX market is open 24 hours per day and has an estimated $1.2 Trillion in turnover every day. This tremendous turnover is more than the combined turnover of the main worlds' stock markets on any given day. This tends to lead to a very liquid market and thus a desirable market to trade.1.Residence, Regulation, and Company Management StructureFOREX.com is a subsidiary of GAIN Capital Group, thus it does not have any independent registration. As for GAIN Capital Group, it is registered in FCM as a broker company, regulated by CFTC and has a membership of NFA. Founders and managers of the company are mentioned on its site - http://www.gaincapital.com/.2.The Trading PlatformThe company offers a JAVA trading platform of “FOREXTrader” which requires installation. There are web and mobile versions of it. Both versions enable you to watch the state of account and opened positions, but the mobile version does not support charts and makes the default a warrant. Stationary variant is the most functionally complete. It provides news, calendar of events and analytical materials.3.Company's Market PositionFOREX.com was created in 2003 to meet the needs of individual investors at FOREX market and for opening standard and mini accounts. No partners (liquidity suppliers) are mentioned.FOREX.com conducts only individual standard (from $2500) and mini (from $250) accounts. Traditional FOREX-brokers programs, such as «Introduced broker», «White Label» and services of confiding management are offered by the associated company GAIN Capital Group.4.Traders SupportThe site has a very interesting educational page. Demo-account is offered for 30 days only. Interactive support of users is done by free telephone lines available in different countries, and by e-mail. There is also an online form.The site supports English, Russian and Chinese.Analytical support includes both GAIN Capital Group's market and analyses of the largest participants of the market – Commerzbank, HSBC, Rabobank, Wachovia, BNP Paribas etc. The full version of analytics is offered only to real clients, but there are several examples on the site. A large set of paid analyses of other resources is offered also.5.Types of Services OfferedFOREX.com offers 16 currency pairs to trade – 7 majors and some of their cross-courses.The size of a standard lot is $100000 or equivalent sum and $10000 on a mini-account. A maximal credit leverage is given 100:1 for standard, 200:1 for mini-lots. Clients can reduce the size of credit leverage if they want and trade mini-lots from standard account. Minimum marginal requirements are 100% from an initial margin. The transfer of positions the next day is made on principle of SWAP, the values of rates of payments are not indicated. The exact sizes of spreads on the trading currency pair are not indicated.
Posted by Namlas at 6:03 AM 0 comments

the massive range of choice and the general quality of the technology available will almost certainly confuse anyone that happens to be new to forex trading applications. Knowing where to start can certainly be daunting. Not only do you have to learn the ropes of forex trading, you also need to get to grips with the new software and analysis charts that can help you to make money. As a beginner, there is another forex trading applications option that does not require being thrown in at the deep end with the more experienced trader – the demo. Most companies offering a forex trading application do offer a demonstration version of it to help individuals new to the forex world find their feet before they begin to trade properly. They ay be referred to as mini accounts or micro accounts by some companies because a minimum amount that is usually around the $200 is required. However, some demos are free to use. They are not hard forex trading applications to get to grips with and will have you ready for the challenge of trading within weeks! Here’s how: 1. Click and follow the download instructions – This first step is simple for anyone having downloaded anything before. The forex trading applications software has to be loaded onto your computer before you can use it. Once it is on there, you can begin creating your account. 2. Create an account – You may be required to create an account with the forex trading applications so provide a user name and password. You will also have to pay any money they want for the maintenance of your account. This is usually the initial deposit for trading that is required. 3. Watch the market – Some forex trading applications will take you through an online tutorial but others will not. If the one you have chosen does then make sure that you complete it. If not, then read the help manual and sit and watch the system for a while to get to grips with what the forex trading applications do. 4. Test your skills – After watching the forex trading applications’ functionality for a while, try your own luck. Trade very small by using the charts and graphs There are real time updates so you will be informed of any changes to the market. However, this is the important phase of any demo because you need to make mistakes in order to put them right, and you may also want to begin a forex trading applications strategy so that you can let the way you trade evolve and find the best way for you to use it!
Posted by Namlas at 6:02 AM 0 comments

A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain an unreasonably high profit by trading in the foreign exchange market, which would be a zero-sum game were it not for the fact that there are brokerage commissions, which technically make forex a "negative-sum" game. These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits,[1] improperly managed "managed accounts",[2] false advertising,[3] Ponzi schemes and outright fraud.[4] It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.[5] The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry.[6] An official of the National Futures Association was quoted[7] as saying, "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically..." Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $300 million, mostly in managed accounts. CNN also quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, "Banks have a duty to protect their customers and they should make sure customers understand what they are doing. Now if people go online, on non-bank portals, how is this control being done?" The highly technical nature of retail forex industry, the OTC nature of the market, and the loose regulation of the market, leaves retail speculators vulnerable. Defrauded traders and regulatory authorities can find it very difficult to prove that market manipulation has occurred since there is no central currency market, but rather a number of more or less interconnected marketplaces provided by interbank market makers.