Forex trading is always about buying one currency and selling another one simultaneously. The world of currency exchange, Forex (Foreign Exchange), employs terminology not used elsewhere in the investment world. Defining those terms, and providing a sample trade, will go a long way toward taking the ‘foreign’ element out of foreign exchange.
Currency trading is always [...]

Forex is not a new household cleaning product. Forex or FX is simply short for foreign exchange, but refers more specifically to currency trading.
This is exchanging dollars for pounds, or euros for yen and so on. It has one thing in common with a household cleaning product, though - if you are not careful you [...]

Professional athletes are often told by their coaches that their attitudes on the field can affect whether they win or lose. That’s even more true in Forex trading. It sounds like the standard motivational speech, but having the right frame of mind can definitely influence your trading results.
There are many aspects of Forex trading that [...]

Many of the common charts encountered in the toolkit of Forex traders are composed of a graphed series of technical indicators. So, in order to understand those charts, the student of Forex investing will do well to study those indicators.
Fortunately, it isn’t necessary to know exactly how to calculate them in order to use them. [...]

Novices considering currency trading will read that Forex brokers charge no commissions and cheer. But don’t be fooled. Whether anything in life is truly free may be up for debate, but one thing is certain: nothing in investing is.
Forex market makers and brokers make money from something called ‘the spread’. It’s important you understand how [...]

Currency trades are always done in pairs between the currencies of two different countries. Below are listed two sample currency pairs.
Name    Bid     Ask         Change    %Change     High  Low     Time
EUR/USD 1.1901    1.1903    -0.0091    -0.76%    1.2024 1.1891 15:26
GBP/USD 1.7439    1.7442    -0.0004    -0.02%    1.7573 1.7410 07:01
Taking the one listed in the first line, let’s look [...]

A technical indicator called ‘Pivot Points’ is becoming increasingly popular. The usefulness of any single technical indicator is always up for debate. But one thing is certain: pivot points are a valuable idea and should be part of every Forex trader’s toolkit.
One possible reason pivot points have become so widely used is their sheer simplicity. [...]

There are many strategies for risk management in Forex trading, just as there are with any other investment. One of the simplest to learn and use is employing different order types. A stop-loss order can help you limit losses, for example. A limit order can lock in profit gained.
Beyond these simple types, there’s one that [...]

To understand limit and stop orders it’s best to contrast these with the ordinary (and still extremely common) market order. A market order is one that is placed by the investor to execute at the current market price whatever that is at the time it’s filled. It’s very important to keep in mind that in [...]

Let’s examine another sample trade.
Name    Bid     Ask         Change    %Change     High  Low     Time

EUR/USD 1.1901    1.1903    -0.0091    -0.76%    1.2024 1.1891 15:26
GBP/USD 1.7439    1.7442    -0.0004    -0.02%    1.7573 1.7410 07:01
The current ask price for EUR/USD is 1.1903. So the investor buys one euro (EUR) at the rate of 1.1903 dollars per euro. Trading one lot [...]