Benefit Tutorials ...Lesson (1)

This following sites contains ,tools , and resources that will help you with lessons on my blog to get started with investments in forex and after each lesson I put tutorials to be extra benefit for all

Learning site:

1- Forex Glossary: Although the previous tutorial might help you to understand some forex terms, this glossary is a great tool to have on hand for future reference. You'll see some familiar terms here, like "selling short" and "limit order," and you'll learn that they mean the same as they do when you use them for trading securities. But, you'll also find new terms like "big figure" and "two-way price," terms that will set you apart as a forex trader.

Currency site to speed on foreign currency exchange and markets

2- Exchange Rate: Skip the top link box, as those links will take you to FXCM (Forex Capital Markets — see #13 and #33). Instead, try out the "hot" and "currency info" links that provide information about everything you'd want to know about worldwide currencies for 170 countries. Includes calculators, fun facts, serious facts, and more.

Get latest news about forex trade

Action Forex: This site offers an easy-to-read layout that includes news, insights, fundamentals reports, calculators, and tons of other forex resources.

Take much information from this forum

MoneyTec: With over 33,000 members, this traders' forum offers a format to discuss trading ideas, share, learn, and build new trading techniques and strategies.

To learn strategies

Fibonacci Lesson: Don't know much 'bout arithmetic, Fibonacci numbers, or the Golden Section? This tutorial, offered by Dr Ron Knott from the Mathematics Department of the University of Surrey, UK will provide results. Simple to use, easy to understand, and filled with illustrations to help you learn why some numbers are so important to nature. Interstingly, these numbers are also of vast interest to many forex investors.

How can you understand charts

The Law of Charts: Joe Ross offers advice for traders across the board, but the information contained in his "Law of Charts" offer speaks to forex as well as any other trading strategy. He identifies chart patterns that result from human behaviors and points to entry and exit targets on those charts. You can take advantage of Ross's other tools as well, including the forum.

To take extra information about forex trade

Live Forex Rates: You might recognize the GFT logo behind the rates, but don't let that distract you from the constantly changing figures. If you're addicted to live feeds, you'll be mesmerized by the constantly changing currency rates on this chart.

WAIT EXTRA……………

Forex Learning for Beginners

Lesson1: Summary for forex market

I will start from today lessons for forex trade starting from beginners

Forex is an abbreviated word, for the Foreign Exchange Market. The Foreign Exchange Market exists where one currency is exchanged for another, such as multi-national corporations, governments, and other financial markets. It yields an average turnover of $1.9 trillion daily.

Trades are always done in pairs: For example, imagine that the exchange rate of EUR/USD (euros to US dollars) on a certain day is 1.1999 (this number is also referred to as a “spot rate”, or just “rate”, for short). If

an investor had bought 1,000 euros on that date, he would have paid 1,199.00 US dollars. If one year later, the Forex rate was 1 .2222, the value of the euro has increased in relation to the US dollar. The investor could now sell the 1,000 euros in order to receive 1222.00 US dollars. The investor would then have USD 23.00 more than when he started a year earlier, traders are basically buying and selling money in the same time. Beside of trading in pairs, Forex is also very special as it has no centralized trade location and trades are done around the clock.

Markets are places where goods are traded, and the same goes with Forex. In Forex markets, the “goods” are the currencies of various countries (as well as gold and silver). For example, you might buy euro with US dollars, or you might sell Japanese Yen for Canadian dollars. It’s as basic as trading one currency for another.

Of course, you don’t have to purchase or sell actual, physical currency: you trade and work with your own base currency, and deal with any currency pair you wish to.

Advantages in Forex currency trading : Equal Prospective in Rising or Falling Market Trend it meaning :there is no structural bias to the market and there are no restrictions on short selling in FX market. Trading in Forex gives you an equal prospective in rising and falling market.

“Leverage” is the Forex advantage

The ratio of investment to actual value is called “leverage”, using a $1 ,000 to buy a Forex contract with a $100,000 value is “leveraging” at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.

Trade Forex 24 hours a day: In Forex trading, you do not need to wait the market to open: Every Sunday 5.00pm in New York, Forex market starts its week from Sydney, followed by Tokyo, Singapore, Hong Kong, London, and New York. In Forex tradng, you can always response to the market trend a lot faster than in any other trading market.

Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rate of currency pairs.

High Leverage Margin

Forex brokers offer trade margin of 50, 100, 150, or even 200 to 1 of trade margin.

Forex traders often find themselves controlling a huge sum of money with little cash outlay on the table. For example, a $1,000 in a 150:1 Forex account will gives you the purchase power of $150,000 in the currency market.

While certainly not for everyone, the substantial leverage available from online currency trading firms is a powerful, moneymaking tool. Rather than merely loading up on risk as many people incorrectly assume, leverage is essential in the Forex market.

This is because the average daily percentage move of a major currency is less than 1%, whereas a stock can easily have a 10% price move on any given day.

wait soon vip books in forex trade

Starting with Forex Glossary

I found first Clear To All Forex Glossary Step By Step Today We Starting with (A).

VALUE	DEFINATION
Aggregate demand	Total demand for goods and services in the economy. Aggregate Demand And includes private and public sector Demand and for goods and services within the country, and the demand of consumers and firms in other countries for goods and services.
Aggregate (Risk)	Total exposure a bank has with a customer for both spot and forward contracts.
Aggregate supply	Total supply of goods and services in the economy (including imports) available to meet aggregate demand.
Agio	Difference in the value between currencies. Also used to describe percentage charges for conversion from paper money into cash, or from a weak into a strong currency.
American Option	An option which may be exercised on any valid business date throughout the Life of the option. A European option can only be exercised on a specific date.
Appreciation	Describes a currency strengthening in response to market demand as opposed to increasing in value as a result of official action.
Arbitrage	A risk-free type of trading where the same instrument is bought and sold simultaneously in two different markets in order to cash in on the difference between the markets.
Around	Used in quoting forward “premium/discount”.
Ask Price	The price at which the currency or instrument is offered. Ask is the Lowest price acceptable to the buyer.
Asset	The right to receive from a counterparty an amount of currency either in regards to a balance sheet asset (e.g. a Loan), or at a specified future date in regards to an unmatched Forward or spot deal.
Association Cambiste international	The international society of foreign exchange dealers. consisting of national Forex clubs affiliated on a worldwide basis.
At Best	An instruction given to a dealer to buy or sell at the best rate that is currently available in the market.
At or Better	An order to deal at a specific rate or better.
At Par Forward Spread	When the forward price is equivalent to the spot price.
At the Price Stop-Loss Order	A stop-Loss order that must be executed at the requested Level regard Less of market conditions.
At –The- Money	An option whose strike/exercise price is equal to or near the current market price of the underlying instrument.
Auction	Sale of an item to the highest bidder. (1) A method commonly used in exchange control regimes for the allocation of foreign exchange. (2) A method for allocating government paper, such as US Treasury Bills. Small investors are given preferential access to the bills. The average issuing price is then computed on the basis of the competitive bids accepted. In some circumstances, such as government auctions, it is the yield rather than the price which is bid.
Average Rate Option	A contract where the exercise price is based on the difference between the strike price and the average spot rate over the contract period. Sometimes called an Asian option”.
Aggressor	A trader dealing on an existing price in the market
Ask	The price at which a currency pair or security is offered for sale; the quoted price at which an investor can buy a currency pair. This is also known as the 'offer', 'ask price', and 'ask rate'.

introduction for forex trade

Although currency trading has a long history dating back to the middle ages, it is the changes that we have seen during the twentieth century which have created the Forex market we see today.

During the first half of the twentieth century the British pound was the world's principal trading currency and was the currency held by many as their main 'reserve' currency. As a result, London was also seen as the leading center for foreign exchange. However, the Second World War severely damaged the British economy and so the United States dollar took over as the world's principle trading and reserve currency and retains that position today. This said, there are now a number of other currencies, principally the Yen and the Euro, which are also seen as reserve currencies.

Since the Second World War there have been a number of events

which have proved instrumental in shaping today's Forex

market. Until the start of the Second World War, as we said

The British Pound Sterling was the World’s most prominent

currency.

At the end of the Second World War the World’s economy,

with the exception of the United States of America,

was in disarray.

Representatives from the United States of America, Britain

and France met at Bretton Woods, New Hampshire with

the objective of creating an infrastructure that would allow

the rebuilding of the World’s economy. The result was the

Bretton Woods Accord. The Accord decided that the US Dollar would become the World’s benchmark and all other countries would measure the value of their currencies against it. Part of this agreement was the Gold Standard which fixed the price of Gold at $35 an ounce. All other currencies were pegged to the dollar at a certain rate. This rate was not allowed to fluctuate more than 1% in either direction (higher or lower). If a fluctuation greater than 1% did occur then the relevant central bank had to enter the market and restore the exchange rate to within the accepted band.

The Bretton Woods Accord also set in motion the establishment of the International Monetary Fund (IMF) which was designed to provide a stable system for buying and selling currencies and to ensure that currency transactions could take place smoothly and in a timely fashion.

In addition, the aim of the IMF was to create a consultative forum to promote international co-operation and to facilitate the growth of world trade, while at the same time breaking down exchange restrictions which hindered international trade

It was also part of the established role of the IMF to make financial resources available to member states on a temporary basis where this was considered necessary to further the aims of the IMF. Such loans were normally only made on the understanding that the country concerned would make substantial changes to rectify the situation which gave rise to the need for the loan in the first place.

There are mixed opinions as to whether the Bretton Woods Accord was successful in restoring economic stability to Europe and Japan. Despite this, the agreement eventually failed in 1971. It was superseded by the Smithsonian Agreement.

The Smithsonian Agreement tried to succeed where Bretton Woods had failed. Rather than give a 1% margin, greater room for manoeuvre was introduced. Not long into this agreement, Europe made its first attempt at breaking free from the Dollar dominated system. In 1972 Europe formed the European Joint Float. Member nations included West Germany, France, Italy, the Netherlands, Belgium and Luxembourg. This agreement was very similar to Bretton Woods but with a larger band for rate fluctuation.

Just as their predecessors had failed, these agreements were

flawed and subsequently fell apart. However, this time there

was no new agreement to take its place. For the first time

since WWII there was a ‘free float’ system in place.

The value of each currency is now governed completely

by the laws of supply and demand. Large banks, private

companies and individual speculators are all active

participants in the Forex market.

The next major milestone was the establishment of European Monetary System which effectively came into force in 1979. The European Monetary System got off to something of a shaky start when Britain (one of the principle members of the European Community) decided not to join the system and Italy joined only under special arrangements. Britain did however later agree to participate to a limited degree by joining the exchange mechanism of the European Monetary System in 1990.

The final major development to affect the Forex market was the establishment of the Euro as a single currency for European Union member states in 1998 with eleven of the participating states replacing their national currency with the Euro.

Of all these developments it was the free-floating of currencies in 1978 which did more than anything else to boost the growth of the foreign exchange market. In 1978 Forex trading showed a daily turnover of about 5 billion US dollars and this figure rose in the following ten years to reach 600 billion US dollars by 1988. By 1992 this figure had reached 1 trillion US dollars, Today The Forex market has is the largest Trading market with daily turnover of around 2 trillion US dollars