I'm considering getting into the Forex market soon and am starting to do some homework. If someone could just lay out how things work and how you actually make (or lose) money, that would be nice. Also, what exactly is a pip and a lot? Thanks in advance.
2006-08-08 11:16:15 · 6 answers · asked by glaserg4 1 in Business & Finance ➔ Investing
Forex (or foreign exchange) market is a market where different national currencies are bought and sold. In order to make money in the forex market, you need a good trading strategy extensively backtested on at least 15 years of data. Better yet, you should have a suite of strategies and a strategy for changing strategies...
2006-08-08 11:33:07 · answer #1 · answered by NC 7 · 0⤊ 0⤋
It's all fun n games until something happens like OPEC only accepting and pricing oil in Euro's(right now oil is priced in USD)for trade as example....then the currency markets lock up and you get zero...Forex is VERY FAST and you should be well experianced in all other aspects of investing...I sort of play currencys without the trading...I am loaded up with GLD-the fund( gold bullion)which basically is a currency....imo, there are plenty of other fun ways to lose money than to the bankers on forex, but in laymans terms, to answer your question, forex is a market of the worlds currencys and you ride the waves of 'value' adjustments-good luck.
2006-08-08 11:30:24 · answer #2 · answered by -* 4 · 0⤊ 0⤋
Forex Trading is a highly leveraged trading. Meaning you borrow money to trade, with very little of your own money. If you put $1000 deposit you could trade up to $100,000. Forex is quoted in 4 decimal places. That is 0.0000. SO with a $10,000 account, a 1 pip or 0.0001 move makes $1. 0.0010, $10. If its $100,000 just multiply by 10. So you profit or loss accordingly,
2006-08-10 05:51:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Hi there
The forex ias basically an over-the-counter market where buyers and sellers conduct foreign exchange business by telephone and other means of communication. Also referred to as "foreign exchange market". The forex market trades trillions each and every day.
Clive
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2006-08-08 11:23:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There is some useful advice here.
2006-08-10 20:55:42 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Please try www.babypips.com and do tell me what you think
2006-08-09 06:59:09 · answer #6 · answered by miztenasty 2 · 0⤊ 0⤋