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.

Read More Related Posts

]]> 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.

Read More Related Posts

]]> 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 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.

Read More Related Posts

]]> 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 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.

Read More Related Posts

]]> http://www.fxtradingcenter.com/blog/2009/11/who-trades-forex-free-forex-trading-course-for-beginners-%e2%80%93-part-3/feed/ 1