http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading Foreign Exchange Trading Foreign exchange trading is necessary for world trade. In order for a US company to purchase machine parts from Germany the company needs to convert US dollars into Euros. In order for a Japanese airline to buy a Boeing jet it needs to convert Yen into US dollars. The origin and basis for foreign exchange trading is world trade. However, by learning how to trade foreign currency a speculator can profit as the currencies of the world rise and fall. A currency speculator watches both the fundamentals of various currencies and technical factors that drive market prices. For example, the dollar has risen recently at the prospect of higher US interest rates. Traders routinely wait to see the minutes of the Federal Reserve Board meetings to decide whether the dollar is likely to rise or fall. And currency traders watch day by day, hour by hour and even minute by minute price action. They engage in technical analysis of major Forex currencies. How to trade Forex successfully is to learn the basics of currency valuation and then the specifics of individual currencies. While companies doing business across borders trade specific currencies, speculators commonly seek out the most volatile currency pairs in search of profits. One Currency Versus Another The foreign exchange market provides an orderly means of providing a fair rate of exchange from one currency to the other. Thus foreign exchange trading is not just a matter of deciding if the US dollar will strengthen or weaken. It is a matter of how the dollar will do again other major currencies such as the British Pound, Yen, Euro, Swiss franc, Canadian dollar, and Australian dollar. Thus a currency speculator needs stay abreast of employment reports, monetary policy, politics, and balance of trade for both nations whose currencies he wishes to trade. Where Does Foreign Exchange Trading Occur? There are three major Forex markets, New York, London, and Tokyo. It is theoretically possible to engage in foreign exchange trading around the clock during the business week. In today’s electronic era foreign exchange trading starts from your trade station computer. A trader picks a Forex pair and follows both fundamental and technical factors as he buys and sells one currency with another. Because of the internet a trader in Omaha, Nebraska can trade in New York, London, Tokyo or all three depending on his supply of coffee. Fundamentals, Fundamentals, Fundamentals Understanding Forex fundamentals is basic to making money in foreign exchange trading. There are technical traders who believe that market pricing evolves into repetitive patterns and reading the patterns is all that is necessary for profits. However, the fundamentals such as currency reserves and balance of trade are what eventually determine price and the rest is speculation.

1. Foreign Exchange Trading
By: www.TheForexNittyGritty.com

2. Foreign exchange trading is
necessary for world trade. In order
for a US company to purchase
machine parts from Germany the
company needs to convert US
dollars into Euros.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

3. In order for a Japanese airline to
buy a Boeing jet it needs to convert
Yen into US dollars. The origin and
basis for foreign exchange trading
is world trade.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

4. However, by learning how to trade
foreign currency a speculator can
profit as the currencies of the
world rise and fall. A currency
speculator watches both the
fundamentals of various currencies
and technical factors that drive
market prices.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

5. For example, the dollar has risen
recently at the prospect of higher
US interest rates. Traders routinely
wait to see the minutes of the
Federal Reserve Board meetings to
decide whether the dollar is likely
to rise or fall.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

6. And currency traders watch day by
day, hour by hour and even minute
by minute price action. They
engage in technical analysis of
major Forex currencies.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

7. How to trade Forex successfully is
to learn the basics of currency
valuation and then the specifics of
individual currencies.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

8. While companies doing business
across borders trade specific
currencies, speculators commonly
seek out the most volatile currency
pairs in search of profits.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

9. One Currency Versus Another
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

10. The foreign exchange market
provides an orderly means of
providing a fair rate of exchange
from one currency to the other.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

11. Thus foreign exchange trading is
not just a matter of deciding if the
US dollar will strengthen or
weaken. It is a matter of how the
dollar will do again other major
currencies such as the British
Pound, Yen, Euro, Swiss
franc, Canadian dollar, and
Australian dollar.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

12. Thus a currency speculator needs
stay abreast of employment
reports, monetary policy, politics,
and balance of trade for both
nations whose currencies he
wishes to trade.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

13. Where Does Foreign Exchange
Trading Occur?
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

14. There are three major Forex
markets, New York, London, and
Tokyo. It is theoretically possible
to engage in foreign exchange
trading around the clock during
the business week.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

15. In today’s electronic era foreign
exchange trading starts from your
trade station computer. A trader
picks a Forex pair and follows both
fundamental and technical factors
as he buys and sells one currency
with another.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

16. Because of the internet a trader in
Omaha, Nebraska can trade in
New York, London, Tokyo or all
three depending on his supply of
coffee.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

17. Fundamentals, Fundamentals,
Fundamentals
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

18. Understanding Forex
fundamentals is basic to making
money in foreign exchange
trading. There are technical
traders who believe that market
pricing evolves into repetitive
patterns and reading the patterns
is all that is necessary for profits.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

19. However, the fundamentals such
as currency reserves and balance of
trade are what eventually
determine price and the rest is
speculation. Learn the basics and
continually relearn the basics and
by doing so you will understand
the range in which currencies will
trade.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading

20. When technical factors take prices
out of the logical range for
fundamentals smart traders buy or
sell in expectation of the market
switching back to a rational price
range.
By: http://www.theforexnittygritty.com/forex/learn-foreign-exchange-trading