Friday, April 13, 2007
Download Forex Ebooks
Thursday, April 12, 2007
Forex Currency Live Rates
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Download Forex Software
(Windows version)
Download the installation file (mt4setup.exe, 3.0Mb) to your PC, launch it and install the program,
checking for instructions appearing on your monitor. When launching the program for the first time, you will see a window with the registration form; after you have filled it in, you will automatically get a demo account.
(Mobile version)
This terminal allows to work at financial markets being mobile. For MetaTrader 4 Mobile to operate, a Pocket PC with Microsoft Windows Pocket PC 2002 or higher is necessary.
Windows Installer for MetaTrader 4 Mobile (Pocket PC 2002, 550 Kb)
PDA Installer for MetaTrader 4 Mobile (Pocket PC 2002, 1.3 Mb)
Forex News
Daily News Sources
FX Research & Analysis
Economic Calendars
Free Tools
Forex Articles
Foreign Exchange Market
- Foreign Exchange Market - Wikipedia
- Triennial Central Bank Survey of Foreign Exchange & Derivatives Market Activity 2004 - Bank for International Settlements
- Foreign Exchange and Money Market Transactions - UBS
- The Foreign Exchange Market in the United States - Federal Reserve Bank of New York
- The Foreign Exchange Market - Bank of England
- Forex Online Learning Program - NFA
- The Forex Trader's Bill of Rights - Oanda
Trading & Education
- Essential Elements of a Successful Trader - by Jimmy Young
- Understanding Leverage - Part 1 - by DrForex
- Understanding Leverage - Part 2 - by DrForex
- Introduction to Currency Exchange and the FX Market - by Oanda
- Common Sense Guidelines for the Average Trader - by GVI Learning
- Trading: A Mind Game - at GVI Learning
- Forex Money Management - Investopedia
- High Probability Trading - by FibMaster
- Taking Profits - by FibMaster
- Projected Fibonacci Targets - by Mohab Nabil
- Pivot Point Trading - by Mark McRae
- Rollovers in Forex - by Mark McRae
- News Trading - by DrForex
- Technical Analysis in the Foreign Exchange Market: A Layman's Guide - by St Louis Fed
- How to Read a Chart & Act Effectively - by Jimmy Young
- When to Trade - by BabyPips
- Understanding Spreads - by Oanda
- FXtrek University - by FXtrek
- Economic Calendar Terms Explained - by Finspreads
- Economic Indicators - Baby Pips
- Make the Currency Cross Your Boss - Investopedia
- High Frequency Automated FX Trading - at EBS
Tutorials
- Online Forex Tutorial - by RealTime Forex
- Candlesticks Tutorial by TradingDay
- Chart Analysis - by StockCharts
- School of Pipsology - by BabyPips
- Guide to Technical Analysis - by Incredible Charts
- Technical Analysis from A to Z - by MarketScreen
- Practical Course for Beginners - by Technical Trading
Risk Warnings & Regulation
- Forex Information - CFTC
- Forex Compliance - NFA
- Trading in the Retail Off-Exchange Foreign Currency Market - What Investors Need to Know - NFA
- Forex Scams - Wikipedia
- Understanding the Risks of Trading in the Retail Off-Exchange Foreign Currency Market - NFA
Further Reading
Forex Basics
The following is an introduction to some basic terms, definitions and concepts used in forex trading.
Introduction
Foreign Exchange
The simultaneous transaction of one currency for another.
Foreign Exchange Market
An informal network of trading relationships between the world's major banks and other market participants, sometimes referred to as the interbank market. The foreign exchange market has no central clearinghouse or exchange, and is considered an over-the-counter (OTC) market.
Spot Market
The market for buying and selling currencies at the current market rate.
Rollover
A spot transaction is generally due for settlement within two business days (the value date). If you open a position on Monday, the value date is Wednesday, but if you hold it past rollover on Monday, the new value date is Thursday. Every margin transaction involves borrowing one currency to purchase another, so you pay interest on the currency borrowed, and earn it on the one purchased. For example, if you buy the NZD (7.5% interest rate) and sell the JPY (0.5% interest rate), you would earn interest on the NZD and pay it on the JPY. The amount you pay or receive is based on the interest rate differential between the two currencies. Most brokers automatically roll over your open positions (usually 5PM New York time/10PM GMT) allowing you to hold your position for an indefinite period of time.
Exchange Rate The value of one currency expressed in terms of another. For example, if EUR/USD is 1.3200, 1 Euro is worth US$1.3200. Currency Pair The two currencies that make up an exchange rate. When one is bought, the other is sold, and vice versa. Base Currency The first currency in the pair. Also the currency your account is denominated in. Counter Currency The second currency in the pair. Also known as the terms currency. ISO Currency Codes USD = US Dollar For a full list, see ISO Currency Codes Currency Pair Terminology EUR/USD = "Euro" Market Maker A market maker provides liquidity for a particular financial instrument and stands ready to buy or sell that instrument by displaying a two-way price quote. In most cases, a market maker's commission is built into the spread. Forex ECN Broker Electronic Communications Network. A Forex ECN brings together multiple market makers and traders to trade together between themselves, matching buyer and seller together for a small fee. It allows traders to act like market makers by being able to enter in their own bids and offers into the platform. A forex ECN displays all the available bids and offers from all market makers and traders on the platform, and matches your order to the best available price. Counterparty One of the participants in a transaction. Sell Quote The sell quote is displayed on the left and is the price at which you can sell the base currency. It is also referred to as the bid price. For example, if the EUR/USD quotes 1.3200/03, you can sell 1 Euro for US$1.3200. Buy Quote The buy quote is displayed on the right and is the price at which you can buy the base currency. It is also referred to as the ask or offer price. For example, if the EUR/USD quotes 1.3200/03, you can buy 1 Euro for US$1.3203. Pip The smallest price increment a currency can make. Also known as points. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY. Pip Value The value of a pip. Pip value can be fixed or variable. To calculate the pip value, divide 1 pip by the exchange rate, and multiply it by the lot size. e.g. 1 pip EUR/USD = 0.0001 / exchange rate (1.2900) * 100,000 = 7.75 EUR. To convert back to USD, simply multiply it by the EUR/USD exchange rate. 7.75 * 1.2900 = $10 per pip. Lot The standard unit size of a transaction. Typically, one "standard" lot is equal to 100,000 units of the base currency, or 10,000 units if it's a "mini" lot, and even 1,000 units if it's a "micro" lot. Some dealers offer the ability to trade in any unit size, down to as little as 1 unit! Spread The difference between the sell quote and the buy quote or the bid and offer price. For example, if EUR/USD quotes read 1.3200/03, the spread is the difference between 1.3200 and 1.3203, or 3 pips. In order to break even on a trade, a position must move in the direction of the trade by an amount equal to the spread. Standard Account Trading with standard lot sizes Mini Account Trading with mini lot sizes Margin The deposit required to open or maintain a position. A 1% margin requirement allows you to control a $100,000 position with a $1,000 margin deposit. Leverage The extent to which you are using borrowed funds. To calculate leverage, divide your total open positions by your account equity to get the leverage ratio. e.g. If a trader has $1,000 in his account and opens a $100,000 position, he is using 100:1 leverage. If he opens a $200,000 position with $1,000 in his account, he is using 200:1 leverage. Manual Execution An order which is executed by dealer intervention. Automatic Execution The order is executed by computer software without human intervention or involvement. Slippage The difference between the order price and the executed price. Long Position A position in which the trader profits from an increase in price. Buy low, sell high. Short Position A position in which the trader profits from a decrease in price. Sell high, buy low. Drawdown The extent to which equity is lost in a trading account from a trade or series of trades, measured from peak to subsequent trough, most commonly in percentage terms. Market Order An order to buy or sell at the current market price. Limit Order An order to buy or sell at a specified level. Stop-Loss Order An order to restrict losses at a specified level. Limit Entry Order An order to buy below the market or sell above the market at a specified level, believing that the price will reverse direction from that point. Stop-Entry Order An order to buy above the market or sell below the market at a specified level, believing that the price will continue in the same direction. Scalping A style of trading that involves frequent trading seeking small gains over a very period of time. Trades can last from seconds to minutes. Day Trading A style of trading that involves multiple trades on an intra-day basis. Trades can last from minutes to hours. Swing Trading A style of trading that involves seeking to profit from short to medium term swings in trend. Trades can last from hours to days. Position Trading A style of trading that involves taking a longer term position that reflects a longer term outlook. Trades can last from weeks to months. Discretionary Trading A style of trading that involves the human decision making process for every trade. Automated Trading A style of trading that involves neither human decision making or involvement, whereby a pre-programmed trading strategy is automatically executed by computer software. Assume you have a trading account of $25,000 and you are trading with a 1% margin requirement. The current quote for EUR/USD is 1.3225/28 and you place a market order to buy 1 standard lot of 100,000 Euros at 1.3228, expecting the euro to strengthen against the dollar. At the same time you place a limit order at 1.3278, 50 pips above your order price. The notional value of this transaction is $132,280 (100,000 units * $1.3228). Your required margin deposit is 1% of the total, which means you need $1322.80 account equity for this trade. As you expected, the Euro strengthens against the dollar and your limit order is reached at 1.3278. The position is closed. Your total profit for this trade is $500 (each pip being worth $10).
EUR = Euro
JPY = Japanese Yen
GBP = British Pound
CHF = Swiss Franc
CAD = Canadian Dollar
AUD = Australian Dollar
NZD = New Zealand Dollar
USD/JPY = "Dollar Yen"
GBP/USD = "Cable" or "Sterling"
USD/CHF = "Swissy"
USD/CAD = "Dollar Canada" (CAD referred to as the "Loonie")
AUD/USD = "Aussie Dollar"
NZD/USD = "Kiwi"
1 pip USD/JPY = 0.01 / exchange rate (118.00) * 100,000 = $8.47 per pip. Common Order Types
Trading Styles
Example Transaction
Wednesday, April 11, 2007
Welcome!
Welcome to Dubaiforex Blog. This Blog is designed to be both an introduction and a beginners guide to forex trading, as well as a showcase of a wide range of products and services available to forex traders and investors. Here you will find a wide range of tools, information and resources to help you start exploring the world of foreign exchange trading. Happy trading!
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