currency trading

Lesson 1: What is Forex Trading?

 

Forex Trading introduction
Forex Trading is short for “foreign exchange trading” which is governed by pairing the value of one country’s currency against another.

For example: If you were to go on holiday to America, then you would have to exchange your English pound Sterling into American dollars in order to buy things in the USA. If you had £100, the amount…

Lesson 2: Common Currencies

The most common currencies used in Forex trading are:

Country                            Currency                          3 letter symbol

USA                                       US Dollar  …

Lesson 3: The structure of Forex trading

Below is a hierarchy of different people who use foreign exchange for their day to day activities, these different bodies help to make up the structure of Forex trading

Major Banks and Governments
These are comprised of the world’s largest banks. They trade currency between each other in accordance with their exchange rates, known as the interbank market. Governments also need large…

Lesson 4: When can you trade Forex?

The earth spins slowly and although Forex is a 24-hour exchange, there are certain times during the day when one country’s economy is more active than another’s. If it is in the middle of the night

in Australia, then there will be less activity with its currency than when it is daytime. Moreover if two country’s trading time’s overlap, then both…

Lesson 5: How to trade Forex

How to trade.
How to read an exchange rate
This is an exchange rate between the Great British Pound and The US Dollar.

 

 

 

All exchange rates, or forex quotes contain a pair of currencies.

The first currency is known as the base currency and this is always “1”.

The second pair on the right hand side is known as the quote or counter currency and…

Lesson 6: Pips, Pipettes, Lots and Brokers

We know that the exchange rates between two currencies constantly fluctuate up and down, depending on a large amount of factors, which govern the actions of forex traders, such as government policies, the activity of trading between two countries, a change in government, or a natural disaster. Some of these, especially the latter two do not happen every day, but…

Lesson 7: Summary of Forex terms we have learnt so far

I think we’ve done enough maths for one day!

Let’s now round up some commonly used forex phrases and what they mean in the world of Forex.

Major and Minor currencies:
The eight most commonly traded currencies are the GBP (Great British Pound) USD (US Dollar) EUR (The Euro), JPY (Japanese Yen), CHF (Swiss Franc), CAD (Canadian Dollar), NZD (New Zealand Dollar) and…

Lesson 8: Forex Orders

It doesn’t matter how much you love trading forex, it is impossible to sit in front of a computer staring at graphs and exchange rates all day. You also have a life to lead. To make sure you don’t risk your relationship, or miss that important footie match, there are several pre-programmed “orders” which you can place on your account…

Lesson 9: Using a demo account

First and foremost- It is ESSENTIAL that you start your trading career with a practice or demo account. This is the best way of learning how to trade forex with the freedom to make mistakes and most of all learn from them, completely risk free. This is because Mr Wolf of the street, you are using virtual money and not…

Lesson 10: Some facts about Forex Trading

Some simple facts to get your head around:
All traders lose money on trades.
It’s the old footballing adage, “you can’t win em’ all” and the same applies to trading. Even the most experienced traders have periods where they lose money or have bad luck on trades. The volatility of the currency markets, some unexpected news from a far off land, or…