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  What is Forex Trading
  How to get started in Currencies
  History of Forex
  A Primer On The Forex Market
  Forex vs Futures
  Forex Introduction
  Forex vs Stocks
  Getting Started in Forex
 VIEW MORE INTRO TO FX..


  What is a PIP?
  Country Currency Codes
  Reading Prices
  What Pairs are Traded?
  Forex Glossary
  FX Publications
 VIEW MORE FUNDAMENTALS..


  Speculating
  Risk Awareness
  The Spot Market
  The Forces of Forex
  Market Snapshot
 VIEW MORE MARKET INFO..


  Fibonacci Numbers
  Advanced Indicator Manual
  Trading Systems which work
  Demo Before You Dive In
 VIEW MORE TECHNICAL..


   Risk Probability Calculator
  Pivot Point Calculator
  Economic Calendar
  Interest Rates Calendar
  Real-Time FX Charts
  Live FX Prices & Quotes
  Forex Movers & Shakers
 VIEW MORE TRADING TOOLS..


  Keep An Eye On Momentum
  Is Guessing a Strategy?
  Trading On News Releases
  The Memory Of Price
  Trading Trend Or Range?
  Pivot Strategies: A Handy Tool
 VIEW MORE STRATEGIES..


FOREX Education

Getting Started in Forex (Continued...)
This article is reproduced with the permission of Investopedia.com.

  • Strict Margin Rules - When you are trading with borrowed money, your broker has a say in how much risk you take. As such, your broker can buy or sell at its discretion, which can be a bad thing for you. Let's say you have a margin account, and your position takes a dive before rebounding to all-time highs. Well, even if you have enough cash to cover, some brokers will liquidate your position on a margin call at that low. This action on their part can cost you dearly.
    Bottom line: Again, talk to others in person or visit online discussion forums to find out who the honest brokers are.
    • Signing up for a forex account is much the same as getting an equity account. The only major difference is that, for forex accounts, you are required to sign a margin agreement. This agreement states that you are trading with borrowed money, and, as such, the brokerage has the right to interfere with your trades to protect its interests. Once you sign up, simply fund your account, and you'll be ready to trade!

    Define a Basic Forex Strategy
    Technical analysis and fundamental analysis are the two basic genres of strategy in the forex market - just like in the equity markets. But technical analysis is by far the most common strategy used by individual forex traders. Here is a brief overview of both forms of analysis and how they apply to forex:
    Fundamental Analysis
    If you think it's difficult to value one company, try valuing a whole country! Fundamental analysis in the forex market is often very complex, and it's usually used only to predict long-term trends; however, some traders do trade short term strictly on news releases. There are many different fundamental indicators of currency values released at many different times. Here are a few:
  • Non-farm Payrolls
  • Purchasing Managers Index (PMI)
  • Consumer Price Index (CPI)
  • Retail Sales
  • Durable Goods

    • Getting Started in Forex is continued on the next page, please click here.


    GFT Currency Trading Sands TurtleFX MF Global
    i-Trade FX FXCM FX Pro

    Disclaimer: Trading Futures, Options on Futures, and off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.