Want to Learn Currency Trading?

Considering Getting FX Training Online?

For a beginner wanting to learn currency trading, it may come across to be a massive un-learnable new world. When in reality the basics of currency trading are simple to learn quickly. You mainly just need to understand some different trading terms and frequently used buzz words then grasp the basic knowledge of how markets work in general.

Essentially, trading the forex market you want to aim at making large sums of money in a short time period. It is possible for all traders to make large gains quite quickly due to the rates of exchange on the foreign market having quite the tendency to rise and fall rather quickly. This does of course mean that it has inherent risk involved and there is the real chance of losing your money quickly. Not unlike most things in investing that posses the chance of big returns.

As you may well have already experienced, if you exchange currency for a vacation or overseas purchase, the rates are not always the same and are in fact constantly changing. You might change $100 into another currency before setting out to travel, later only to find that you have no need for it and you get it changed back. The rate will undoubtedly have moved up or down in the meantime. You may even have unknowingly made a profit out of your exchange of currency.

Forex traders trade currencies aiming to snare a profit whilst doing it, but instead of changing money at a bank they use the services of a broker. These days almost all transactions of currency are handled via the internet. It is not much at all different from stock and company share trading. There is the same ability to trade with margins and employ the use of leveraging your money so that a small balance held for you by your broker can in fact control much larger amounts than itself.

Trading the Foreign Exchange market can be done from anywhere. You can trade whatever two currencies you desire not restricted by where you live. The market is international and due to time zone differences, it is open 24 hours a day from Monday morning in Australia to Friday afternoon in New York.

A single currency is represented by 3 letters: the US dollar is USD, the British pound is GBP, the Euro is EUR, the Japanese Yen is JPY, the Swiss franc is CHF, the Canadian dollar is CAD, the Australian dollar is AUD etc. To express the exchange rate of two currencies they would be shown as: AUD/USD 0.7445. This shows that to buy one Australian dollar you will need 0.74 US dollars or 74 US cents.

If you want to begin fx training online and learn currency trading you will first have to find a suitable broker or investment management company that you can trust and learn comfortably with. It is worth taking a look around online forums and un-biased review sites to gather enough feedback to decide what broker you feel most comfortable with. Check out how long the company has been in business, make sure they are reputable and do not have bad feedback about cutting into client’s profits with large spreads or stop hunting and other dodgy broker activities.

You will, like most that learn currency trading start to run a bot or two or what are referred to as Expert Advisors (EAs). These pieces of software do your trading and analysis for you. This is basically automated forex trading software that will trade all hours of the day according to the rules that are coded into it and/or that you adjust in order to vary its performance. You can choose to run these EAs on demo accounts before you let them trade with your real money. Many who get fx training online deposit their own money but adopt safe EA trading strategies by adjusting risk settings so that losses are minimal but profits are still able to be made. There are many forex robots or EAs available on the market and the majority of them come with full and clear instructions for people who are experienced but also for people who are just beginning to learn currency trading.

by Gerrad Ross - 24/6/09