FOREX explained.

What is it?
On the FOREX exchange you can buy and sell currencies. For example, you might buy Japanese yens (by exchanging them to the dollars you had), then, after yen / dollar ratio goes up, you sell yens and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.

The FOREX market has much higher liquidity, then the stock market, as much more money are being exchanged. Also, it does not have "exchange places", like stock market does. FOREX is spread between banks all over the world, and as the result, it is open 24 hours, during the business week.

Unlike stocks, FOREX trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-FOREX, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.

Important note: Trader software comes with indicators, that are configured to assume margin (leverage) equal 1 stock operations and 100 for FOREX.

The name convention. In FOREX, the name of a "symbol" is composed of two parts - one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).

As with stocks, you can apply tools of the technical analysis to FOREX charts. Trader's indexes can be optimized for FOREX "symbols", allowing you to find winning strategy.

I find 2 interesting free tools.

Forex currency converter - Looking for a currency converter? You can find everything here. Description of most popular currency converters.


FinRise. Free Forex Trading Signals - FinRise provides Free Trading Signals. Buy/Sell Signals. Forex traders using our free forex signals with specific entry and exit. At www.finrise.com you can find a lot of useful information, which can help you to achieve profit goals in the Forex market. Use it in your trade! Forex forecasts, technical analysis, forex signals

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