FxTradingCenter Blog » Forex Courses http://www.fxtradingcenter.com/blog Learn forex online and read the latest forex news Wed, 04 Aug 2010 11:39:00 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Bid Ask Spread – Free Forex trading course for beginners – Part 11 http://www.fxtradingcenter.com/blog/2010/07/bid-ask-spread-free-forex-trading-course-for-beginners-part-11/ http://www.fxtradingcenter.com/blog/2010/07/bid-ask-spread-free-forex-trading-course-for-beginners-part-11/#comments Sat, 31 Jul 2010 13:55:23 +0000 admin http://www.fxtradingcenter.com/blog/?p=63 Today, we will continue our journey in the forex world. In the previous two posts, we understand the definition of both forex pips and bid/ask quotes. Now, we are going to discover the meaning of the Bid/Ask spread. Simply, the bid-ask spread is the difference between the bid price and the ask price. Let’s take an example to clarify the meaning of this phrase.

Let’s say that the bid price for the JPY/EUR is 1.3648 and the ask price is 1.3652 then this is a spread of four pips.

Remember, the quotes of the forex market are changing in every nanosecond, and the spread is also changing in every nanosecond. Usually, when the market is very active the spreads will be around two pips and when the market is not active the spread may reach four pips.

You must pay attention to the spread number while you are trading in the forex world. A smart trader should trade only when the spread number is around two while a failure trader trade when the spread number is around four.

That’s it for today. You should be ready because in the next post, we are going to discover the true meaning of the forex leverage and margin.

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]]> http://www.fxtradingcenter.com/blog/2010/07/bid-ask-spread-free-forex-trading-course-for-beginners-part-11/feed/ 0 Bid Ask Quotes – Free Forex trading course for beginners – Part 10 http://www.fxtradingcenter.com/blog/2009/12/bid-ask-quotes-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-10/ http://www.fxtradingcenter.com/blog/2009/12/bid-ask-quotes-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-10/#comments Mon, 07 Dec 2009 11:38:03 +0000 admin http://www.fxtradingcenter.com/blog/?p=56 Currently you should fully understand what are forex pips and what is forex price quotes, but you should know that there are always two prices for the same forex currency pairs. The first price is called “Bid Price” which means how much the market will pay any seller for a specific currency pair at a specific moment. The next price is called “Ask Price” which means how much the buyer should pay to get a specific currency pair at a specific moment. You should know that both prices are changing in every nanosecond and for that the automated forex robots can help the users to trade even if they are sleep or away, but you should be a professional forex player before you start to play with these kind of software.

In the next post you will understand a new keyword in the forex world which is “spread” which equals “Bid/Ask”. Make sure you read it before you trade in the forex because you can lose a lot of money if you did not know it.

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]]> http://www.fxtradingcenter.com/blog/2009/12/bid-ask-quotes-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-10/feed/ 0 Forex Trading Pips – Free Forex trading course for beginners – Part 9 http://www.fxtradingcenter.com/blog/2009/12/forex-trading-pips-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-9/ http://www.fxtradingcenter.com/blog/2009/12/forex-trading-pips-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-9/#comments Mon, 07 Dec 2009 10:32:06 +0000 admin http://www.fxtradingcenter.com/blog/?p=52 If you entered the world of forex from more than week then you should heard the keyword “forex pips”. If you did not understand it yet then you should know that it means the smallest change in price quotes that you can trade with. For example if the price quotes for USD/ EUR 0.6718 changed to 0.6719 then you can trade this pairs. The previous example means there is only one pip change. It’s something like penny but it’s called pip in the forex world. Also you should know that most major currency pairs are displayed in only four decimal forms in most automated forex software and EA systems and the only exception for this rule is the JPY which displayed in two decimal forms.

You should understand the pips meaning well because you will hear it a lot in the forex world. Just think it as a penny in the beginning and in the end of this course you will fully understand it. In the next post we will describe the bid and ask system for forex world so make sure you read this post in our forex course for beginners.

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]]> http://www.fxtradingcenter.com/blog/2009/12/forex-trading-pips-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-9/feed/ 2 Forex Price Quotes – Free Forex trading course for beginners – Part 8 http://www.fxtradingcenter.com/blog/2009/12/forex-price-quotes-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-8/ http://www.fxtradingcenter.com/blog/2009/12/forex-price-quotes-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-8/#comments Mon, 07 Dec 2009 09:31:35 +0000 admin http://www.fxtradingcenter.com/blog/?p=49 Today lesson is about how to read forex quotes like professionals. First you should know what the format of the price quotes is? The format of the forex quotes is XXX/YYY. You should already notice that when we talked about forex currency pairs where each currency contains three characters only. The first currency in each pair is called the base currency and the second currency in each pair is called the counter currency. Do not get shocked because of the names it’s just names and we will describe the meaning of each name in this post.

The base currency is the currency that we use it to compare it with any other currencies. This means we use one unit of the base currency “i.e.:- 1 USD” to know its value in terms of the counter value. The following is some examples of the forex quotes to make you understand it right:-

  • USD/EUR = 0.671772135. “This means 1 U.S. dollar = 0.671772135 Euro.”
  • EUR/USD = 1.4886. “This means 1 Euro = 1.4886 U.S. dollar.”
  • JPY/USD = 0.00747212146 “This means 1 Japanese yen = 0.00747212146 Euro.”

You should read the previous quotes more than one time so you understand it. After one day you will be able to understand it directly if  you read it in any forex software like FapTurbo or A.I. Forex Robot without having to think about it. In the next lesson you will learn the forex pips so make sure you read it.

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]]> http://www.fxtradingcenter.com/blog/2009/12/forex-price-quotes-%e2%80%93-free-forex-trading-course-for-beginners-%e2%80%93-part-8/feed/ 0 Active forex hours – Free Forex trading course for beginners – Part 7 http://www.fxtradingcenter.com/blog/2009/11/active-forex-hours-free-forex-trading-course-for-beginners-%e2%80%93-part-7/ http://www.fxtradingcenter.com/blog/2009/11/active-forex-hours-free-forex-trading-course-for-beginners-%e2%80%93-part-7/#comments Wed, 25 Nov 2009 14:33:17 +0000 admin http://www.fxtradingcenter.com/blog/?p=45 Forex market is so busy all the days and as we mentioned before it’s one of the largest financial markets in the world. Brokers always buy and sell currency pairs day and night, but there are rush hours where the forex market reaches its top signals.

Traders usually can be categorized into two categories the day traders and the end of day traders. The day traders do all the trading from the morning to 3:00 P.M. where the ends of the day traders do all the trading from 5:00 P.M. to midnight. The difference among the day traders and the end of the day traders that the first category traders makes the sell and buy decision and do it in the same time where the second category traders makes the sell and buy decision for the next morning because the market is usually not active at night.

If you decided to be a day trader then you should know the best day forex trading hours for the major currency pairs which are:-

  • USD/CAD from 8:00 AM to 3:00 P.M..
  • USD/JPY or AUD/USD from 12 Midnight to 3:00 P.M..
  • EUR/USD, GBP/USD or USD/CHF from 3:00 AM to 3:00 P.M..

If you decided to be an end day trader then the best time for trading for all pairs between 5:00 P.M. to midnight. Also you should know that all the previous times for EST.

My advice to you to focus on the day trading at first because you can monitor and see the result at the same time and you don’t need to wait until the next morning. In the next post in this course we will focus on the price quotes so be ready to learn more.

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]]> http://www.fxtradingcenter.com/blog/2009/11/active-forex-hours-free-forex-trading-course-for-beginners-%e2%80%93-part-7/feed/ 2 Forex Requirements – Free Forex trading course for beginners – Part 6 http://www.fxtradingcenter.com/blog/2009/11/forex-requirements-free-forex-trading-course-for-beginners-%e2%80%93-part-6/ http://www.fxtradingcenter.com/blog/2009/11/forex-requirements-free-forex-trading-course-for-beginners-%e2%80%93-part-6/#comments Tue, 24 Nov 2009 13:52:51 +0000 admin http://www.fxtradingcenter.com/blog/?p=38 To start the Forex trading and start buying and selling currency pairs you should have the following requirements:-

  1. Computer or laptop and I recommended the following configuration:-
    • Processor speed of 1 GHZ or higher (Pentium ||| and Dual Core is better).
    • 1 GB RAM or higher.
    • Monitor resolution set at 1024×768 or higher.
    • Windows XP, Vista or 7.
  2. Internet Explorer v6.0 or higher.
  3. High Internet connection speed (256kbps or higher).
  4. Forex broker account to manage your trades.
  5. Forex software and tools including trading platforms and charting.
  6. The most important requirement is to know Forex game secrets and to have the right knowledge which you will have if you finished this course.

That’s it. Make sure that your computer has the previous configuration and you have the right Forex tools to start trading.

After you got the basic idea of Forex and you have the right tools to start you should get into the game by reading the next post where we will start to go in details in the Forex world.

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]]> http://www.fxtradingcenter.com/blog/2009/11/forex-requirements-free-forex-trading-course-for-beginners-%e2%80%93-part-6/feed/ 2 Forex Currency Pairs – Free Forex trading course for beginners – Part 5 http://www.fxtradingcenter.com/blog/2009/11/forex-currency-pairs-free-forex-trading-course-for-beginners-%e2%80%93-part-5/ http://www.fxtradingcenter.com/blog/2009/11/forex-currency-pairs-free-forex-trading-course-for-beginners-%e2%80%93-part-5/#comments Tue, 24 Nov 2009 10:27:08 +0000 admin http://www.fxtradingcenter.com/blog/?p=35 Trading with Forex currency pairs can be annoying in the first because there are many pairs in the market and you do not know which one you should monitor and start with. For that I will make it easy for you and I will tell you the major pairs in the Forex world, but first let me remember you that in Forex world you trade in pairs which mean you buy one currency and sell another; like you buy USD and sell EUR.

The major and the most common currency pairs in the Forex world are:-

  • USD/JPY.
  • USD/CHF.
  • USD/CAD.
  • GBP/USD.
  • EUR/USD.
  • AUD/USD.

Here is the meaning of the previous abbreviations if you do not know it:-

  • USD = US Dollar.
  • EUR = Euro.
  • JPY = Japanese Yen.
  • CHF = Swiss Franc.
  • CAD = Canadian Dollar.
  • GBP = British Pound.
  • AUD = Australian Dollar.

Also there are some exotics currency pairs in the market; for example:-

  • NZD/USD.
  • GBP/JPY.
  • EUR/GBP.

You should not play with this pairs in the start and you should only focusing in the major currency pairs, but after you became a Forex expert then you should test these pairs because it could be profitable.

Again You should focus in the previous major six pairs in the start and after you become an advanced Forex user you should test the other pairs. Also you will learn in this course how to choose the best pairs every moment by monitor the Forex charts, rates and signals. Do not worry you will learn everything soon in this course.

In the next post you will know what you need to start trading at Forex including your computer and Internet configuration so make sure you have the right equipment before you start.

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]]> http://www.fxtradingcenter.com/blog/2009/11/forex-currency-pairs-free-forex-trading-course-for-beginners-%e2%80%93-part-5/feed/ 0 The 24 Hours Forex Trading – Free Forex trading course for beginners – Part 4 http://www.fxtradingcenter.com/blog/2009/11/the-24-hours-forex-trading-free-forex-trading-course-for-beginners-%e2%80%93-part-4/ http://www.fxtradingcenter.com/blog/2009/11/the-24-hours-forex-trading-free-forex-trading-course-for-beginners-%e2%80%93-part-4/#comments Tue, 24 Nov 2009 09:10:25 +0000 admin http://www.fxtradingcenter.com/blog/?p=31 Is Forex market like big food restaurant that working 7 days a week or it is like any financial companies that close for some hours or close for one day a week? The answer is very simple “Forex market is opening 24 hours 6 days a week”.

You can trade with Forex from Sunday to Friday, but in Saturday you cannot. It’s good for you because you can spend this day in analysis your mistakes and tweaking your tactics or you can spend it with your family. As I mentioned before the Forex market will closes at Friday 5:00 o’clock, but that is not mean the market is actually close just like banks it close at 5:00 o’clock but there are a lots of transactions and processing during the night.

You should also know that there is no one centralized exchange bank or financial institutes for the Forex, and all the transaction and trades is done among banks and brokers. It’s very important to choose a good Forex broker to handle your trades and you will learn more about Forex brokers in this course.

In the next post we will describe the Forex pairs and what are the pairs that are available for you.

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]]> http://www.fxtradingcenter.com/blog/2009/11/the-24-hours-forex-trading-free-forex-trading-course-for-beginners-%e2%80%93-part-4/feed/ 0 Who trades Forex? – Free Forex trading course for beginners – Part 3 http://www.fxtradingcenter.com/blog/2009/11/who-trades-forex-free-forex-trading-course-for-beginners-%e2%80%93-part-3/ http://www.fxtradingcenter.com/blog/2009/11/who-trades-forex-free-forex-trading-course-for-beginners-%e2%80%93-part-3/#comments Tue, 24 Nov 2009 08:41:26 +0000 admin http://www.fxtradingcenter.com/blog/?p=24 Now after you got the idea of the foreign exchange market you should know if you can trade in the Forex world or not. The answer is simply “Yes, You can trade with Forex.”

As you already knew that the Forex is one of the largest financial markets in the whole world if it is not the largest one, and for that in the past the Forex world was closed to the largest banks in the world and for governments and was not opened to the public or small corporation, but that was in the past and now the Forex market is opened to the public and that’s mean you can trade with small amounts. Today there are companies like Etrade enables you to trade in the Forex world with very small amounts and this is your chance and you should not leave it goes away from you, but make sure you are educated first by reading  Forex books or watching forex courses.

So now you knew what is Forex and that you can trade in this amazing world, but is this world is open 7 days a week or not? In the next post you will learn when you can play in the Forex world.

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]]> http://www.fxtradingcenter.com/blog/2009/11/who-trades-forex-free-forex-trading-course-for-beginners-%e2%80%93-part-3/feed/ 1 What is Forex? – Free Forex trading course for beginners – Part 2 http://www.fxtradingcenter.com/blog/2009/11/what-is-forex-free-forex-trading-course-for-beginners-%e2%80%93-part-2/ http://www.fxtradingcenter.com/blog/2009/11/what-is-forex-free-forex-trading-course-for-beginners-%e2%80%93-part-2/#comments Tue, 24 Nov 2009 07:56:35 +0000 admin http://www.fxtradingcenter.com/blog/?p=20 Now let’s start our journey into the Forex world, but before we start you should know the meaning of Forex. Forex stands for foreign exchange market and some traders just call it FX. You should know that the Forex is the largest financial network in the world and it’s increasing every single moment and the last statistics shows that it increases to more than 1.5 trillion dollar.

After you get the meaning of the Forex and now you know that Forex market is a big monster you should know that Forex world in very simple words is buying one currency and selling another; like you are buying USD and selling Euro or vice versa. This is not the only currency pairs that you can trade you have many pairs to trade with like GBP/USD, USD/JPY, USD/CHF and much more. You should select the most profitable pairs and start your trade because the profitable pairs are changing due to the market in each single moment.

That’s it. I am sure you are shocked now because you are now know the Forex is not so complicated but don’t get so excited because there is a lot of secrets and risks in the Forex world. In the next post you will know who trades Forex and can you trade or not!

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