Feb. 07, 2012 11:17:33 GMT +1
        EURUSD  1.31291/1.31317         USDJPY  76.536/76.558         GBPUSD  1.58211/1.58251         USDCHF  0.91841/0.91891         EURJPY  100.491/100.541         GBPJPY  121.092/121.162         EURGBP  0.82964/0.83014         GBPCHF  1.45326/1.45396
Charts
Charts are the main tools of the technical analyst and with 5 chart types available to the modern day trader.
Trend Lines
Classical chartists use trend lines to try to determine areas of support and resistance.
Area Patterns
Also known as Area Patterns are pictures, they appear on price charts and are easily recognized by those who familiar with them.
Technical Indicators
Technical indicators are mathematical interpretations of certain aspects of market behavior.
Strategy Creation
Having a reliable strategy can help a long way by making traders cautious and prepared on their trades.
 
Fundamental Analysis is a technique that focuses on the underlying factors of economic developments by measuring its intrinsic value through the analysis of related economic, financial and other qualitative factors such as interest rates, inflation, employment, production levels, and even political events that predicts the direction of the economy, thus driving the fluctuation and volatility of exchange rates in...
Economic Indicators
Understand how certain economic indicators influence the movement of the currencies.
Market Drivers
Learn the impacts and influence of certain market drivers in currency trading.
The Foreign Exchange Market, also known as Forex or FX Market, is where financial institutions facilitate the buying and selling of foreign currencies. Foreign exchange trading typically involves one party who is buying the currency while simultaneously selling another. That is, you are exchanging the sold currency for the currency you are buying through an over-the-counter market. In the Forex market, major exchange dealers engage in high-volume trading in an international network, which takes the form of an exchange of bank deposits of different national currency denominations.

Today, the foreign exchange market is the biggest financial market for speculations referred by some as the closest market to the ideal perfect competition, notwithstanding market manipulation by central banks. The Forex market is highly characterized by the volatility and liquidity of currencies moving in strong trends with leverages of up to 400 times the value of the initial investment. The breadth, depth, and liquidity of the foreign exchange market are truly impressive as individual trades ranging from $200 Million to $500 Million are familiar. Quoted prices change as often as 20 times a minute with some of the world's most active exchange rates changing up to 18,000 times during a single day despite econometric studies indicating that prices tend to move in relatively small increments, a sign of a smoothly functioning and liquid market.
  • Forex
    Exchange Quotes
  • Bids and
    Ask Spreads
  • Margin and
    Leverage
  • Calculating
    Profits and Losses
 
Reading a foreign exchange quote is simple if you remember two things:
•   The first currency listed is the base currency.
•   The value of the base currency is always 1.
Base Currency
•   It is the first currency in any currency pair (e.g. EURUSD)
•   It shows how much it is worth as measured against the second currency.
Quote Currency
•   It is the second currency in any currency pair.
•   This is frequently called the pip currency.
•   Any unrealized profit or loss is expressed in this currency.
As the showpiece of the foreign exchange market, the US dollar is usually considered as the base currency for most quotes. When the base currency is USD, think of the quote as telling you what a US dollar is worth in that other currency. When USD is the base currency and the quote goes up, that means USD has strengthened in value and the other currency has weakened. Rising quotes mean a US dollar can buy more of the other currency than before.