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Introduction to Forex Trading

Sep 21, 2007
Forex trading involves the simultaneous exchange between two currencies. Shares are bought and sold in order to make profits.

The Forex market is not actually found in any physical place, instead is a network of banks and individuals all involved in the process of changing currency. Because of this, the Forex market is open 24 hours a day, following the three main markets, the United States of America, Europe, and Asia.

The main currencies found in the Forex market are:

EUR = Euro
GBP = British Pound (Sterling, Cable)
JPY = Japanese Yen
CHF = Swiss Franc (Swissie)
USD = United States Dollar
NZD = New Zealand Dollar (Kiwi)
AUD = Australian Dollar (Aussie)
CAD = Canadian Dollar

Forex trading is different from traditional stock trading as you trade on a margin, rather then the full sum of the contract at hand. With regular stocks, you must deposit the full amount of the shares. With Forex trading, a 1% margin is used, meaning you one have to pay 1% of the total amount of the contract. For example, if the contract price is 100,000 dollars, you are only required to place 1,000 into the account. The margin paid is more of an insurance policy just in case the trade goes bad.

Successful Forex traders must learn the ins and outs of Forex trading before becoming successful. This often takes years of risking their money and time. In fact, new investors that try to trade on the market alone have a 95% failure rate.

If you are new to Forex trading, you may have found that learning the basics needed to succeed may be a daunting task. The only real way to learn is to place yourself, and you money on the line as you learn the basics of the Forex trading system. This truly makes learning this new system a practice makes perfect situation. However, Statistics show that 95% percent of new investors who attempt to trade on the Forex market fail, meaning that you are potentially risking large amounts of money.

Another option is hiring a Forex trading professional to do the work for you. This will take some of the pressure off of you. The only flaw with this option is you are still placing large amounts of money into the market through a human. While a professional would have the knowledge to rely more on statistics and numbers, they are still human, and human emotion can alter the way trades are completed.

The only sure way a new investor can trade efficiently is by using a trading program. Trading programs not only rely on information rather then emotion, they have the potential to do all the work for you, eliminating the need for hours of studying to learn the basics of the Forex system.

FreedomRocks is an online trading system that does just that. Once you account is setup, you define the preset limits and instructions, and then sit back and watch the program do the work for you. At the end of the day you have a potential of making large amounts of money, without the risk of doing it yourself.

One alternative to going through the process of learning the system is using an online trading system such as FreedomRocks. FreedomRocks allows you to set the preferences you want, and will literally do the work for you. All you have to do is sit back and watch the profits build.
About the Author
Caterina Christakos is an experience investor and internet entrepreneur. To find out how to earn money from home and learn how to invest it click here
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