Spot Forex (Part I)

by Ahmad Hassam The spot forex market is a decentralized network of buyers and sellers. There is no physical central exchange that acts as a central clearing house. The spot forex market is an over the counter market. Over the counter means that the buyers and sellers make a binding contract with each other after agreeing on the price and this is not carried through an exchange unlike the forex futures trading that is carried out through the exchange like CBOT, CME etc. What are the advant

Foreign Exchange Market

by AHmad Hassam The foreign exchange market most often called the forex market is the most traded financial market in the world. Average daily currency trading volumes exceed $2 trillion per day. That is a mind boggling number isnt it. To give you an idea it is 10-15 times the size of the daily trading volume on all the world stock markets combined. While commercial and financial transactions in the currency markets represent huge nominal sums, they still pale in comparison to amounts based

Forex Other Financial Markets (Part II)

October 23, 2009 | By Ahmad Hassam In Online Business | The lower the prices of oil, the lower the inflationary pressures are going to become but this is not always true. The higher the price of oil, the higher the inflation would be and the slower the economic growth is going to become. Take oil as an inflation input and a limiting factor on the overall economic growth. Rising oil prices tend to retard economic growth that in turn depreciates the domestic currency. When you see oil pri

Understanding Spot Forex Market (Part I)

October 23, 2009 | By Ahmad Hassam In Online Business | The spot forex market is a decentralized network of buyers and sellers. There is no physical central exchange that acts as a central clearing house. The spot forex market is an over the counter market.Over the counter means that the buyers and sellers make a binding contract with each other after agreeing on the price and this is not carried through an exchange unlike the forex futures trading that is carried out through the exchan

Understand The Forex Market

by AHmad Hassam The foreign exchange market most often called the forex market is the most traded financial market in the world. Average daily currency trading volumes exceed $2 trillion per day. That is a mind boggling number isnt it. To give you an idea it is 10-15 times the size of the daily trading volume on all the world stock markets combined. While commercial and financial transactions in the currency markets represent huge nominal sums, they still pale in comparison to amounts based

Understanding Forex Trading Sessions

by Ahmad Hassam Currency trading volumes in the Asia Pacific session account for about 21% of the total daily global volume. The financial centers active during the Asia Pacific session are Wellington, Sydney, Tokyo, Hong Kong and Singapore. The currency pairs traded are USD/JPY, EUR/JPY and AUD/JPY. In terms of the most actively traded currency pairs during the Asia Pacific trading session that means news and data reports from Australia, New Zealand and Japan are going to be hitting the mar

Forex And Other Financial Markets (Part I)

October 22, 2009 | By Hassam Ahmad In Online Business | On more active days where prices have moved significantly, the lower liquidity can cause additional outsized price movements. Just as with the London close, there is no set way in which the New York afternoon market plays out. So traders just need to be aware that lower liquidity conditions tend to prevail and adapt accordingly.Why do investors need to exchange their domestic currencies for foreign currencies? Many want to invest i

What Is Position Trading? (Part I)

by Ahmad Hassam There are four style of trading: Scalping, Day Trading, Swing Trading and Position Trading. Position trading is all about taking a directional market position and holding it as long as the trade makes sense from the trend standpoint. This means that positions are held for longer term. Most individual and retail traders do not have the patience for position trading. Retail traders dont have the stamina to stay longer than a few weeks in a trade. Position trading may mean keepi

Fibonacci Trading (Part I)

by Ahmad Hassam What is Fibonacci forex? Did you see the movie, The DaVinci Code? You will find a scene in the movie where the characters talk about the Fibonacci number as part of a clue or code of some sort. Fibonacci trading techniques are based on a series that was discovered in the 13th century by an Italian Leonardo de Pisa. Over the years many interesting characteristics have been discovered on a few ratios derived from this series. The Fibonacci series starts with 0 and 1 and goes ou

What Are Forex Trading Sessions?

by Ahmad Hassam The currency pairs that are heavily traded during the Asia Pacific session are USD/JPY, EUR/JPY and AUD/JPY. The financial centers active during the Asia Pacific session are Wellington, Sydney, Tokyo, Hong Kong and Singapore. Currency trading volumes in the Asia Pacific session account for about 21% of the total daily global volume. Most of the transaction involves JPY as Japanese companies are trying to convert Japanese Yen into other currencies in order to do business with th

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