Forex Market Works 24 Hours Daily

One of features of Forex market is the working 24 hours daily , it's unlike stock market for time period every day which open in the morning and close in the evening , for example : if you want trading in american companies stocks , you can't buy or sell unless New York stocks exchange open in 9 AM : 4 PM , every stocks market in around the world has the same thing about stocks market times 

In Forex market and because there is no specified central place and because all trading in Forex by internet .the work in Forex market doesn't stop 24 hours a day every week except Saturday and Sunday

The banks and financial institutions in Japan open their doors , and the trading starts in 12 PM (GMT) and the Japanese institutions close in 9 AM (GMT) , but the trading doesn't stop because when the Japanese and Asian institutions closed in Tokyo and Singapore the European institutions open in London , Frankfurt and Paris , when the Europeans institutions closed the american market start working when it closed the Australian institutions start trading when they closed the Japanese and Asian institutions start a new day 

Live streaming for prices in Forex market

Forex market featuring the live streaming for prices of currencies moment by moment , when you work on the trading program in forex market , these programs are for free , any broker company gives you this program and you can open real or demo account

This program show you a live streaming for prices of currency pairs which trade and the changes in these prices are moment by moment all the day , it works all the week except saturday and sunday

Forex :The high liquidity in forex market

One of Forex market advantages : the high liquidity , In Forex market you can sell when you want to sell without searching about any buyers and without any advertising campaigns . when you want to sell the currency in Forex market all you have to do click on the sell button in trading program and the sell order done in a few moments 

The same thing in buy case , when you want to buy the currency you click on the buy button in trading program and it`s done in a few seconds . this trade not like the other trades like the traditional trade or even stock trade , Most of orders in Forex market are very easy and simple 

Forex : The possibility of achieving profits in rising and falling forex market

One of features in forex market that you can achieve profits from prices rising and also you can earn  from prices falling unlike the other markets that you can earn profits from prices rising only 

In forex market when you expect rising of one of currencies price you buy the currency and when the rising happen you close the trading and you gain your profits from prices rising 

The same thing in falling price case , you can sell the currency if you expect the falling price and close the trading and gain your profits 

Forex : What is a margin?

A "margin" is the money you put into the Forex contract you open . Online trading brokers must make sure that traders can pay if they lose money when they trade. Traders put the amount into an account that can be used to cover any losses they make. This amount is also called ...minimum security

With a margin, traders are able to invest in markets where the smallest trade you can make is already high. that Margin make traders increase thier profits, but in the same time can also increase thier loss

Forex : What is leverage in Forex trading?

Traders in Forex market a contract of currency exchange rates. As the movement of currency rates can be too small, traders in forex market use leverage to increase their profit

: For example

: You decide to open a contract for trade and it has these elements in it 

The currency pair for trading GBP/USD 

The direction of the trade - BUY Pound and SELL US dollars 

The price - say 1.3700 

The contract value - GBP100,000 

As the trader, you purchase this contract, believing you will earn once you close (offset) the contract

If you are right (for example: the rate increased to 1.3800), then you would profit: for every euro in this contract you made profit of 1 US cent. In total, the profit would be $1,000 ...100,000 x 1 cent

? However, do you need ALL the GBP 100,000 to open this contract

The answer is: NO. You can LEVERAGE the trading: the trader is required to risk

For example: only 1:100 of the contract value. Accordingly, for a contract of 100,000 only $1,000 is needed. However, if there was loss, and the value of the whole contract dropped to 99,000, then the deal is automatically closed, since the “guarantee” made by the trader was only $1,000

With leveraged forex trading, you have more money to use for trading than the balance in your account because you can ‘leverage" what you do have that means you use what you have to increase the money you can trade and to increase your profits when you succeed in trading in the right direction of a currency pair. On the other side, when there is a loss... the higher the leverage, the quicker you are subject to automatic closure of your deal

? How does leveraged forex trading work

Leveraged trading works by establishing a rate you can use for every dollar in your account. The amount you put for the trade is the actual amount you risk. It is called ‘margin" or the amount you risk. we will talk about margin in a next article

For example: If you invest $100 and leverage it at 1:100, then you have $100 to trade for each $1 in your investment (margin). If you start trading with your $100 investment, you can buy up to a value of $10,000 ...100x100

You are advised not to risk more than you can accept to lose and you should be careful When you are using leverage in forex trading

Forex : Currency Acronyms and Abbreviations

: In the past topics We talked about

What is Forex

what is pip in Forex

what is Spread in Forex market

What are currency pairs in forex

All currencies in all the world have an internationally accepted 3 letter acronym. The first 2 letters abbreviate the country name and the last is the currency abbreviation. For example: USD is United States Dollar. Below are the 3 letter currency codes for most of the world currencies, including gold and silver. The six most commonly traded currencies, the "majors" are repeated at the top

Currency                       Acronym

Australian Dollar            AUD

British Pound              GBP

Euro                              EUR

Japanese Yen                     JPY

Swiss Franc                     CHF

US Dollar                     USD

Afghanistan Afghani        AFN

Albanian Lek                     ALL

Algerian Dinar             DZD

Angolan Kwanza             AOA

Argentine Peso             ARS

Armenian Dram             AMD

Aruban Florin             AWG

Australian Dollar             AUD

Azerbaijan New Manat     AZN

Bahamian Dollar              BSD

Bahraini Dinar                BHD

Bangladeshi Taka              BDT

Barbados Dollar              BBD

Belarusian Ruble              BYR

Belize Dollar                      BZD

Bermudian Dollar              BMD

Bhutan Ngultrum              BTN

Bolivian Boliviano         BOB

Bosnian Mark              BAM

Botswana Pula              BWP

Brazilian Real              BRL

British Pound                      GBP

Brunei Dollar                      BND

Bulgarian Lev              BGN

Burundi Franc              BIF

CFA Franc BCEAO      XOF

CFA Franc BEAC              XAF

CFP Franc                      XPF

Cambodian Riel              KHR

Canadian Dollar              CAD

Cape Verde Escudo      CVE

Cayman Islands Dollar      KYD

Chilean Peso                      CLP

Chinese Yuan/Renminb    CNY

Colombian Peso              COP

Comoros Franc              KMF

Congolese Franc              CDF

Costa Rican Colon      CRC

Croatian Kuna               HRK

Cuban Convertible Peso   CUC

Cuban Peso                      CUP

Cyprus Pound              CYP

Czech Koruna              CZK

Danish Krone                      DKK

Djibouti Franc              DJF

Dominican R Peso              DOP

East Caribbean Dollar      XCD

Egyptian Pound              EGP

El Salvador Colon              SVC

Estonian Kroon              EEK

Ethiopian Birr              ETB

Euro                              EUR

Falkland Islands Pound    FKP

Fiji Dollar                      FJD

Gambian Dalasi              GMD

Georgian Lari              GEL

Ghanaian New Cedi           GHS

Gibraltar Pound               GIP

Gold (oz)                               XAU

Guatemalan Quetza            GTQ

Guinea Franc                       GNF

Guyanese Dollar               GYD

Haitian Gourde                HTG

Honduran Lempira        HNL

Hong Kong Dollar                HKD

Hungarian Forint                HUF

Iceland Krona                ISK

Indian Rupee                        INR

Indonesian Rupiah        IDR

Iranian Rial                        IRR

Iraqi Dinar                        IQD

Israeli New Shekel                ILS

Jamaican Dollar                JMD

Japanese Yen                        JPY

Jordanian Dinar                JOD

Kazakhstan Tenge                KZT

Kenyan Shilling                KES

Kuwaiti Dinar                KWD

Kyrgyzstanian Som          KGS

Lao Kip                                LAK

Latvian Lats                        LVL

Lebanese Pound                LBP

Lesotho Loti                        LSL

Liberian Dollar                LRD

Libyan Dinar                        LYD

Lithuanian Litas                 LTL

Macau Pataca                 MOP

Macedonian Denar         MKD

Malagasy Ariary                 MGA

Malawi Kwacha                 MWK

Malaysian Ringgit                 MYR

Maldive Rufiyaa                 MVR

Maltese Lira                         MTL

Mauritanian Ouguiya         MRO

Mauritius Rupee                 MUR

Mexican Peso                         MXN

Moldovan Leu                 MDL

Mongolian Tugrik                 MNT

Moroccan Dirham                 MAD

Mozambique New Metical MZN

Myanmar Kyat                 MMK

NL Antillian Guilder         ANG

Namibia Dollar                 NAD

Nepalese Rupee                 NPR

New Zealand Dollar         NZD

Nicaraguan Cordoba Oro NIO

Nigerian Naira                 NGN

North Korean Won         KPW

Norwegian Kroner         NOK

Omani Rial                         OMR

Pakistan Rupee                 PKR

Panamanian Balboa         PAB

Papua New Guinea Kina   PGK

Paraguay Guarani                 PYG

Peruvian Nuevo Sol         PEN

Philippine Peso                 PHP

Polish Zloty                         PLN

Qatari Rial                        QAR

Romanian New Lei        RON

Russian Rouble                RUB

Rwandan Franc                RWF

Samoan Tala                        WST

Sao Tome/Principe Dobra STD

Saudi Riyal                         SAR

Serbian Dinar                 RSD

Seychelles Rupee                 SCR

Sierra Leone Leone         SLL

Silver (oz)                         XAG

Singapore Dollar                 SGD

Slovak Koruna                 SKK

Slovenian Tolar                 SIT

Solomon Islands Dollar     SBD

Somali Shilling                 SOS

South African Rand          ZAR

South-Korean Won         KRW

Sri Lanka Rupee                 LKR

St Helena Pound                 SHP

Sudanese Pound                 SDG

Suriname Dollar                 SRD

Swaziland Lilangeni         SZL

Swedish Krona                 SEK

Swiss Franc                         CHF

Syrian Pound                         SYP

Taiwan Dollar                 TWD

Tanzanian Shilling         TZS

Thai Baht                         THB

Tonga Pa'anga                 TOP

Trinidad/Tobago Dollar       TTD

Tunisian Dinar                 TND

Turkish New Lira                 TRY

Turkmenistan Manat         TMM

US Dollar                         USD

Uganda Shilling                 UGX

Ukraine Hryvnia                 UAH

Uruguayan Peso                    UYU

United Arab Emir Dirham AED

Vanuatu Vatu                 VUV

Venezuelan Bolivar         VEB

Vietnamese Dong                 VND

Yemeni Rial                         YER

Zambian Kwacha                 ZMK

Zimbabwe Dollar                 ZWD

Forex : What are currency pairs?

: In the past topics we talk about

?What is forex

?What is pip

?What is Spread in forex

In forex market, currency is traded in pairs. Pairs have meaning in relation to each other so must always stay together. if one of the price of pairs raised that mean the other  pair is lower 

The two currencies in a currency pair are traded one against the other like Eur/usd for example , the Euro against Dollar . The rate at which they are traded is called the exchange rate. The exchange rate is affected by currency supply and demand

? What are kinds of the currency pairs

 There are two kinds of currencies pairs in the Forex market: direct pairs and indirect pairs

A direct pairs : the price for one US dollar in terms of another currency like USD/AUD

An indirect pairs : the price for one UNIT of another currency in terms of the US dollar like GBP/USD

? What are the most common currency pairs traded in forex

There are many strong currencies that are used all over the world, but there only a handful of currencies that are traded actively in the forex market. In currency trading, only the most economically/politically stable and liquid currencies are demanded in sufficient quantities. For example, due to the size and strength of USA economy, the American dollar is the world's most actively traded currency

Anyways , the eight most traded currencies (in no specific order) are the American  dollar (USD), the Canadian dollar (CAD), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Japanese yen (JPY)

Currencies must be traded in pairs. there are many different currency pairs that can be derived from those eight currencies alone. However, there are about 18 currency pairs that are conventionally quoted by forex market makers as a result of their overall liquidity 

Forex : What is the spread?

: In the past topics we talked about what is forex and what is pip 

What is Forex 

What Is PIP In Forex

Now we will talk about ..what is spread

The spread is the difference between the buy price(bid) and the sell price(ask). Two prices are given for a currency pair. The spread represents the difference between what the market maker gives to buy from a trader, and what the market maker takes to sell to a trader in the forex

If a trader bought any currency and immediately sells it and no change in the exchange rate has happened that mean  the trader lost money. The reason for this is that the buy price is always lower than the sell price

For example, the EUR/USD bid/askcurrency rates at your bank may be 1.2025/1.3025. This represents a spread of 1000 pips. This spread is very high compared to the bid/ask currency rates for online Forex investors, such as 1.2035/1.2030 a spread of 5 pips

Anyways, smaller spreads are better for Forex investors because a smaller movement in exchange rates lets them profit from a trade more simply