A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment.
Foreign exchange is traded in an over-the-counter market where brokers/dealers negotiate directly with one another, so there is no central exchange or clearing house. The biggest geographic trading center is the United Kingdom, primarily London. According to TheCityUK, it is estimated that London increased its share of global turnover in traditional transactions from 34.6% in April 2007 to 36.7% in April 2010. Owing to London's dominance in the market, a particular currency's quoted price is usually the London market price. For instance, when the International Monetary Fund calculates the value of its special drawing rights every day, they use the London market prices at noon that day.
The essence of technical analysis is that it attempts to forecast future price movements in the FX market by thoroughly examining past market data, particularly price data. The idea is that history may repeat itself in predictable patterns. In turn, those patterns, produced by movements in price, are called Forex signals. This is the goal of technical analysis - is to uncover current signals of a market by inspecting past Forex market signals. This may help traders perform daily Forex predictions. In addition, prices move in trends. Technical analysts are inclined to believe that price fluctuations are not random, and are not unpredictable by nature. Once a certain type of trend is established, it is likely to continue for a certain period of time.
A swap trade involves both. Dealers buy a currency at today's price on the spot market and sell the same amount in the forward market. This way, they have just limited their risk in the future. No matter how much the currency falls, they will not lose more than the forward price. Meanwhile, they can invest the currency they bought on the spot market.
The trade that takes place in Foreign exchange market involves simultaneously the buying of one currency and the selling of another. This is because the value of one currency is relative to the other currency and is determined by their comparison. From a retail trader’s perspective Forex trading is the speculation on the value of one currency relative to another.
GBPNZD is approaching its resistance at 1.9620 (100% Fibonacci extension , 61.8% Fibonacci retracement , horizontal swing high resistance) where it is expected to reverse down to its support at 1.9062(38.2% Fibonacci retracement , horizontal swing low support). tochastic (89, 5, 3) is approaching its resistance at 96% where a corresponding reversal is expected....
For trading purposes, the first currency listed in the pair is always the directional currency on a forex price chart. If you pull up a chart of the EUR/USD, and the price is moving higher, it means the EUR is moving higher relative to the USD. If the price on the chart is falling, then the EUR is declining in value relative to the USD. The attached chart shows this.
Currency trading and exchange first occurred in ancient times. Money-changers (people helping others to change money and also taking a commission or charging a fee) were living in the Holy Land in the times of the Talmudic writings (Biblical times). These people (sometimes called "kollybistẻs") used city stalls, and at feast times the Temple's Court of the Gentiles instead. Money-changers were also the silversmiths and/or goldsmiths of more recent ancient times.
When the USD is listed second in the pair, as in the EUR/USD or AUD/USD, the value of the pip is fixed. If you hold a 1000 micro lot, each pip movement is worth $0.10. If you hold a 10,000 mini lot then each pip is worth $1. If you hold a 100,000 standard lot then each pip move is worth $10. Pip values can vary by price and pair, so knowing the pip value of the pair you're trading is critical in determining position size and risk.
For closing positions, setting a take profit or stop loss order on an existing position you will also need to provide us with your ticket number. Then all you will need to do is request for a two-way quote on a particular currency pair and specify the transaction size (e.g. “I’d like a Dollar Japanese Yen quote for 10 lots.”). Please remember if password authorization fails, or you do not wish to undergo this process, we will not be able to carry out your instructions.
Flights to quality: Unsettling international events can lead to a "flight-to-quality", a type of capital flight whereby investors move their assets to a perceived "safe haven". There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts. The US dollar, Swiss franc and gold have been traditional safe havens during times of political or economic uncertainty.
Up until World War I, currencies were pegged to precious metals, such as gold and silver. But the system collapsed and was replaced by the Bretton Woods agreement after the second world war. That agreement resulted in the creation of three international organizations to facilitate economic activity across the globe. They were the International Monetary Fund (IMF), General Agreement on Tariffs and Trade (GATT), and the International Bank for Reconstruction and Development (IBRD). The new system also replaced gold with the US dollar as peg for international currencies. The US government promised to back up dollar supplies with equivalent gold reserves.
The foreign exchange market is the most liquid financial market in the world. Traders include governments and central banks, commercial banks, other institutional investors and financial institutions, currency speculators, other commercial corporations, and individuals. According to the 2010 Triennial Central Bank Survey, coordinated by the Bank for International Settlements, average daily turnover was $3.98 trillion in April 2010 (compared to $1.7 trillion in 1998). Of this $3.98 trillion, $1.5 trillion was spot transactions and $2.5 trillion was traded in outright forwards, swaps, and other derivatives.
The value of a country's currency depends on whether it is a "free float" or "fixed float". Free floating currencies are those whose relative value is determined by free market forces, such as supply / demand relationships. A fixed float is where a country's governing body sets its currency's relative value to other currencies, often by pegging it to some standard. Free floating currencies include the U.S. Dollar, Japanese Yen and British Pound, while examples of fixed floating currencies include the Chinese Yuan and the Indian Rupee.
For instance, the EUR/USD trading pair is the most traded currency pair in the world. Listed as EUR/USD makes the EUR the ‘base’ currency and USD the ‘counter.’ The price in the spot market next to this pair indicates the price of one Euro in USD. There will be a buy and a sell price, and the difference between the two is commonly referred to as the ‘spread.’
Forex trading as it relates to retail traders (like you and I) is the speculation on the price of one currency against another. For example, if you think the euro is going to rise against the U.S. dollar, you can buy the EURUSD currency pair low and then (hopefully) sell it at a higher price to make a profit. Of course, if you buy the euro against the dollar (EURUSD), and the U.S. dollar strengthens, you will then be in a losing position. So, it’s important to be aware of the risk involved in trading Forex, and not only the reward.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.
Risk Warning: Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks and take care to manage your exposure and seek independent advice if necessary. It's important for you to consider relevant legal documents (for clients of TF Global Markets (Aust) Pty Ltd) this includes Product Disclosure Statement and Financial Services Guide, before you decide whether or not to acquire any of our products.
The simplest answer is that the forex is open for trading all the time, but that the specific hours it opens and closes at any given location depending upon where you are in the world. The base reference time for all opening and closing times worldwide is Greenwich Mean Time, commonly abbreviated GMT. Many websites devoted to clarifying forex business hours describe the opening and closing times with three or four significant examples, usually
One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.