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How does a central bank control the foreign exchange market FOREX?

January 22, 2011 1 Comment

Question by Lala: How does a central bank control the foreign exchange market FOREX?

Also, why would a central bank want to do this?

Best answer:

Answer by mmmkay_us
The reason they want to is to make money

Government manipulate the value of there currency for many reasons the main one is foreign trade.

Example

An American company makes a product and sends it to china to sell it. If the American dollar is stronger(more valuable) then the Chinese dollar then the Chinese people have to use more of their money to buy an American product meaning the American company will sell less of those products

When that same company sends their product to England where the American dollar is weaker then it is cheaper for the English people to buy American products.

So the dollars are manipulated from time to time to increase commerce.

Other reasons are Political in nature and alot more complicated to explain

I hope i Have help you alittle

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Filed Under Frequently Asked Questions Tagged With bank, Central, control, Exchange, Foreign, Forex, Market

Has anyone had any trouble investing with Forex Market?

January 21, 2011 6 Comments

Question by At Home: Has anyone had any trouble investing with Forex Market?
I want to learn all I can about this company, before investing any amount

Best answer:

Answer by lucstudent
Forex is not a company.

Please show it some respect.

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Filed Under Frequently Asked Questions Tagged With anyone, Forex, investing, Market, trouble

Volume indicator for forex markets?

January 21, 2011 2 Comments

Question by forextrade1970: Volume indicator for forex markets?
Hello, i trade forex markets and i want to find an indicator similar to “volume” which i use when i trade commodities because this indicator is very critical in my trading disicions. Can someone help?

Best answer:

Answer by The Geek
Hi buddy,

due to the decentralized nature of forex, there is no real volume. The best volume you can get is only your broker’s.

Do read my article on what forex is at my forex learning blog to understand more.

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Filed Under Frequently Asked Questions Tagged With Forex, indicator, Markets, volume

Q&A: Is it possible to make a living trading forex market?

January 20, 2011 3 Comments

Question by k b: Is it possible to make a living trading forex market?

Best answer:

Answer by Rick E
Hi, yes it is possible to make a living trading forex, but it is also possible to lose what you start with. I have been trading forex for around 11 years now, but in a “simulation / real time mode”. That means that i trade forex in a practice account and use practice money, but with live trading conditions. You should open a free practice account, say with oanda.com first and spend several weeks operating a practice account. If you were considering trading forex via a broker… think very seriously about that!! You will get charged broker fees on every trade (usually 0) REGARDLESS if the trade loses money. Far better to learn the basics and trade your own monies yourself! You can open a full / live account from upwards. Good luck!!

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Filed Under Frequently Asked Questions Tagged With Forex, Living, Market, possible, Trading

Which FOREX market maker is the largest with a robust balance sheet?

January 20, 2011 2 Comments

Question by nomethinks: Which FOREX market maker is the largest with a robust balance sheet?

Best answer:

Answer by Xelam
as far as i know, this site is one of the leaders in the forex trading business. check on the link to find out for yourself.

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Filed Under Frequently Asked Questions Tagged With balance, Forex, largest, Maker, Market, robust, sheet

Q&A: does the forex market close? if yes when, does it open and close?

January 19, 2011 1 Comment

Question by owopepper: does the forex market close? if yes when, does it open and close?
i need to know for sure the operations of the forex market, it opening time and closing time. plss and infos on it operation from someone who has traded or is trading presently

Best answer:

Answer by K.J.Haroon Basha
The market opens on Monday morning in Wellington New Zealand .8 am Wellington time is 8pm GMT,9pm BST,4pm EDT (Sunday evening New York time)

The market closes for the week at 4pm EDT on Friday.

where BST is British Summer time ,EDT is Eastern Daylight Time USA.

The most active pairs during the London session are EURUSD with 39% of the trading volume, GBPUSD with 23%, USDJPY with 17%, USDCHF with 6% and USDCAD with 5%.

New York is the second largest forex market place. The busiest time is 8am to noon EST. News releases can result in a volatile market.

Sometimes volatility is low in the Tokyo session and sometimes good moves occur. The USDJPY is the most active pair with 78% of the volume followed by EURUSD with 15% and EURJPY with 5%.

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Filed Under Frequently Asked Questions Tagged With Close, Forex, Market, open

Who is the richest forex trader?

January 19, 2011 2 Comments

Question by karthik: Who is the richest forex trader?
I hear about all those people in the web who claim to be rich and earn a living in forex and finally try to sell you their “systems”. What I dont understand is If their systems WORKS as they claim it works, they should probably be spending their time with their “system” and not trying to sell them…

So all this spam aside, Is there really some person(genuine) who has become rich and famous by only trading/investing in the Forex Market?
nobody????

Best answer:

Answer by Boris
The short answer is no, Although there are a few investors like George Soros who made huge sums inthe FX market on a couple of trades most of the really welathy made their fortunes holding onto quality stocks. You are right that most FX ssytems dont work. If they did even a little then they would be worth millions, not 100 per month.

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Filed Under Frequently Asked Questions Tagged With Forex, richest, Trader

Is it possible to lose more money than you invest in Forex trading?

January 18, 2011 3 Comments

Question by Marc B: Is it possible to lose more money than you invest in Forex trading?
They have those auto pilot programs that have you invest 50 dollars starting. Not a huge investment, and wont spit out a lot of money in the long run, but If you invested 50 dollars in a forex program, is it possible to end up owing more than you invested? Or is it just that you can lose 50 dollars and end up back at 0, and not in the negative? Just curious.

Best answer:

Answer by Bleeding Tiger
i think it is, unlike stock your losses and gains are theoretically unlimited.

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Filed Under Frequently Asked Questions Tagged With Forex, invest, lose, money, More., possible, than, Trading

Q&A: What is the difference between the people who win and the people who lose in the forex trading markets?

January 18, 2011 1 Comment

Question by William M: What is the difference between the people who win and the people who lose in the forex trading markets?

Best answer:

Answer by gosh137
The people who win are people who have invested in what they know. The losers are people who are “fished” in by those spam forex robot answer ads and don’t know what they got into.

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Filed Under Frequently Asked Questions Tagged With Between, difference, Forex, lose, Markets, People, Trading

Is it true forex robots need monitoring the market for days before starting trading?

January 17, 2011 3 Comments

Question by Pher M: Is it true forex robots need monitoring the market for days before starting trading?
Is it true forex robots need monitoring the market for days before starting trading themselves on their own?
That’s a feature I would dislike if so

Best answer:

Answer by nitro128usa
Not at all. You can set up your Forex robot / EA and make money right away. Take a look at “Forex Never Lose Trade” http://www.zeroforex.com/?hop=takagicb

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Filed Under Frequently Asked Questions Tagged With Before, Days, Forex, Market, monitoring, need, robots, starting, Trading, true
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