0 Forex Online - Trading Software

Forex Online - Trading Software

By Paul Bryan

It has become imperative for every FOREX broker to maintain a software package with which his clients might transact and also get market prices online. This necessity has been brought by a stupendous growth of internet and its rising accessibility to common masses.

With every passing day, the popularity of online trading amongst traders is increasing and so is increasing the need to improvise the current software tools and the answer to this situation is FOREX online trading software.

FOREX trading software comes in two forms- web based and client based. Whatever type you might be looking at, any online trading software must perform one essential function. FOREX trading software must be able to provide market information at real time and should incessantly update the information. The processing delay must be non-existent and it must be precise to deliver the entry and exit points for the trade.

Now for the distinction between the two, webs based software is the one which works on the broker's website. A client just needs to login to it and work requiring no installation on his own computer. A client based software needs to be downloaded first and then installed on the client's machine. This software works in sync with the broker's software.

It must be understood that web based FOREX online trading software is always considered better in terms of convenience, safety and reliability. Any user can log in to them from anywhere with the help of their unique account and password. But in client based software, one needs to be at the same computer to work.

All of us would agree to the fact that data safety and security must be the primary concern of any FOREX online trading software. Web based software makes use of high-strength data encryption to prevent data theft by hackers during data transmission. It also saves you from other intruders like viruses. It is true that data transmission is generally safe in client based software also but since it is being used by a single user, the probability of data loss increases.

FOREX online trading software makes use of reliable data servers which has the task of holding website content and user transaction. It is true that processing of servers could be hampered due to power outages and natural disasters, at least two sets of servers in separate locations are maintained to ensure maximum uptime and data backups.

The biggest bugbear with FOREX online trading software is data transmission delays. It might be due to internet connection or the physical distance between the client machine and the main server. What is advised is to have high-speed internet connection and a high-speed computer system. It is also advisable to have a broker who is in the same area as one's trading place to do away with any delays.

Most of the FOREX online trading software now offers a lot of facilities for the users. So, now you could have charting functions with a variety of viewing functions to get real-time price quotes for most currency pairs. Similarly, one could also make use of stops and limits to enter and exit the market. At the most you need to shell out a minimum monthly fee to make use of FOREX online trading software.

Paul Bryant is a successful and experienced Forex trader and also the webmaster for www.investawise.com, bringing you all the latest Forex news, reviews and advice.

0 Brokerage Firms "Pitfalls of Internet Trading"

Choosing a brokerage firm does not have to be an insurmountable achievement. A little bit of homework can determine whether an online brokerage firm can handle your needs. Asking a few basic questions can go a long way in determining whether an online brokerage firm is what you are looking for.

We already covered the pros and cons of specialty brokers. Understanding your own financial goals will help to determine whether you are interested in trading with a specialty broker or not. If the only stock that interests you is commodities then you may want to choose a specialty broker. If you want something more diversified then you probably want to go with a firm that requires a more rounded education from their brokers.

When comparing commission rates remember that the lowest is not always the best. While there is something to be said for you get what you pay for, find out what it is you are getting when you are paying. Are the commission’s flat rates or are they based on the size of your trade? A struggling firm may suddenly have a commission “sale” and drop their commissions to nothing for a period of time. Use your own discretion before deciding this is a good opportunity. Look at their trading history. Is this just a promotion to get them over a hump or have they been continuously struggling?

Read the fine print when it comes to the firm’s policy on executing enters and cancel orders. A bad policy is bound to cost you money. Read the fine print on the firm’s policies on broker mistakes, web site crashes, and of course, margin accounts.

How accurate is the information you are receiving either via e-mail or ticker bar? Are the stocks quotes in real time or do they have a delay? Does the broker send blanket e-mail notifications (most do) or are they tailored to the type of investments you are interested in?

The basic answers to these questions can determine whether a firm is right for you. Remember that you will most likely never talk to an actual person so all of this information should be readily available right on the website. Online trading does not offer the personal touch of a traditional brokerage firm. Don’t expect phone calls from your broker to discuss your portfolio. If you are uncomfortable being a faceless number instead of a unique investor, online trading is not something you are likely to be satisfied with.

Online trading has its distinct advantages and disadvantages. Most people who transition from a tradition broker to the convenience and speed of online trading are quite happy with the principle even if they find themselves dissatisfied with the firm. You can eliminate the disappointing firm experience by doing your share of due diligence before proceeding.

If you are still hunting more in depth information regarding online trading I recommend the website for unbiased reporting on online investing. Online trading ideas provides accurate and unsolicited information regarding online trading and navigating the world of online finance. The website is dedicated to educating the beginning and average investor in order to create personal success and financial health. Onlinetradingideas is a valuable resource in your journey towards personal investing independence. Be aware of the "Pitfalls Of Internet Trading” and avoided them if you can AT ANY COST.

Author’s note: Bobby Ryatt, If you enjoyed reading this articles, then go to my website where I have lots more on the subject. You will have free to use material and tips, No more guessing or taking risks after this. http://www.onlinetradingideas.com & http://onlinetradingideas.blogspot.com

0 Forex Options Trading - How Forex Options Are Calculated

By Timothy Stevens

Forex options are calculated with 'Greeks'. A basic explanation of these 'Greeks' will help you understand how and why the forex options move and behave in a certain way. An option is a derivative and how it's value is derived is from a formula that combines these Greeks together. The Greeks are how these options respond to various factors such as price movement, time decay, volatility, and interest rates.

There are 5 Greeks involved and we share go through them one by one.

Delta:
The speed of the option's price gain or loss against the gain or loss of the 'mother' or underlying asset price is known as the Delta. The Delta is a figure that shows us how fast or slow the option will move relative to its 'mother' or underlying asset. A Delta of 1 means the option price is moving at the same speed and direction as the 'mother' or underlying asset. A Delta of -1 means the option price is moving in the opposite direction for every point the 'mother' or underlying asset moves.

The probability of an option expiring in-the-money is also expressed in the Delta. An at the money call option has a Delta of 0.5; i.e., 50%, meaning a 50% chance of expiring in the money. A deep in the money call will have a Delta of near 1, or 100%, meaning a near 100% chance of expiration in the money. A very out-of-the-money call option will have a Delta of close to zero, meaning a near zero chance of expiring in the money.

To be continuing at... Forex Options Trading - How Forex Options are calculated (Part 2)

Author note:
I will like to offer you a Free "Getting Started Trading FOREX with Options" course when you subscribe to my newsletter on Non Direction Trading. You will get your instant access at http://www.NonDirectionTrading.com


artical source by:-http://www.NonDirectionTrading.com

0 Forex Options Trading - How to Use an Alternative Trading Method

By Timothy Stevens

When it comes to the Foreign Exchange market, a lot of people are asking how to be able to profit out of it. There are millions of traders worldwide, but only a handful of them are able to make some money; and even fewer people are able to make the big bucks. The majority of traders are left with nothing but empty pockets and wasted time. This is mostly because trading in the Forex market proves to be difficult, there are a lot of things to learn and doing it right may not even be enough; luck is also a huge factor.

Now, there is an alternative way to make money in the Foreign Exchange market; this can be done by purchasing Forex options. These options give the buyer an exceptional advantage. Purchasing an option for a set amount of currency which gives you control over them is cheaper than purchasing them immediately. In other words, you reserve the right of ownership until the due date expires.

Also, when you do execute your right to the contract, you would only pay the price determined at the beginning of the contract. Which means you can purchase an option for a certain currency which you think would rise in value. If it does, you execute the option and purchase the currencies cheaper, thus makes you profit. The use of Forex options would mean lesser risks as you do not pay full amount of the currency yet you will get almost total control of what can happen to it over the next few months.

Author note:
I will like to offer you a Free "Getting Started Trading FOREX with Options" course when you subscribe to my newsletter on Non Direction Trading. You will get your instant access at http://www.NonDirectionTrading.com


artical source by :-http://www.NonDirectionTrading.com

0 FOREX TRADING ADVANTAGE

A 24-hour market
A trader may take advantage of all profitable market conditions at any time. There is no waiting for the opening bell.

High liquidity
The Forex market with an average trading volume of over $1.3 trillion per day. It is the most liquid market in the world. It means that a trader can enter or exit the market at will in almost any market condition minimal execution marries or risk and no daily limit.

Low transaction cost
The retail transaction cost (the bid/ask spread) is typically less than 0.1% (10 pips or points) under normal market conditions. At larger dealers, the spread could be smaller.

Uncorrelated to the stock market
A trader in the Forex market involves selling or buying one currency against another. Thus, there is no correlation between the foreign currency market and the stock market. Bull market or a bear market for a currency is defined in terms of the outlook for its relative value against other currencies. If the outlook is positive, we have a bull market in which a trader profits by buying the currency against other currencies. Conversely, if the outlook is pessimistic, we have a bull market for other currencies and traders take profits by selling the currency against other currencies. In either case, there is always a good market trading opportunity for a trader.

Inter-bank market
The backbone of the Forex market consists of a global network of dealers. They are mainly major commercial banks that communicate and trade with one another and with their clients through electronic networks and telephones. There are no organized exchanges to serves a central location to facilitate transactions the way the New York Stock Exchange serves the equity markets. The Forex market operates in a manner similar to the way the NASDAQ market in the United States operates, thus it is also referred to as an over the counter ( OTC ) market.

No one can corner the market
The Forex market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short lived. Thus central banks are becoming less and less inclined to intervene to manipulate market prices.

Foreign Exchange
The simultaneous buying of one currency and selling of another.

Foreign Exchange Market
An informal network of trading relationships between the world's major banks and other market participants sometimes referred to as the 'interbank' market. The foreign exchange market has no central clearinghouse or exchange, and is considered an over-the-counter (OTC) market.

Spot Market
Market for buying and selling currencies usually for settlement within two business days (the value date). USD/CAD = 1 day.

Rollover
The process whereby the settlement of a transaction is rolled forward to the next value date, typically at 5PM EST/10PM GMT. If you open a position on Monday, the settlement date is Wednesday, however, if you hold this position past rollover on Monday, the new value date is Thursday. Most brokers will automatically roll over your open positions, allowing you to hold a position for an indefinite period of time. The cost of this process is based on the interest rate differential between two currencies. Depending on your broker's rollover policy, if you are holding a currency with a higher rate of interest in the pair, you will earn interest, however if you are holding a currency with a lower rate of interest in the pair, you will pay it.

Exchange Rate
The value of one currency expressed in terms of another. For example, if the EUR/USD exchange rate is 1.3200, 1 Euro is worth US$1.3200.

Market Maker
A market maker provides liquidity in a particular financial instrument and stands ready to buy or sell that instrument by displaying a two-way price quote. A market maker takes the opposite side of your trade.

Broker
A firm that matches buyer and seller together for a fee or a commission.

Pip
The smallest price increment a currency can make. Also known as points. For example, 1 pip = 0.0001 for EUR/USD, or 0.01 for USD/JPY lot The standard unit size of a transaction. Typically, one standard lot is equal to 100,000 units of the base currency, and 10,000 units for a mini.

Pip Value
The value of a pip. To calculate pip value, divide 1 pip by the exchange rate and then multiply it by the number of units traded. So for example, to calculate the pip value for USD/CHF, divide 0.0001 by the current exchange rate of 1.2765 and multiply it by 100,000 to get a pip value of $7.83. For EUR/USD, divide 0.0001 by the current exchange rate of 1.2075 and multiply it by 100,000 to get a pip value of €8.28. To convert this back to US dollars, multiply it by the current exchange rate of 1.2075 to get a pip value of $10.

Spread
The difference between the sell quote and the buy quote. For example, if the quote for
EUR/USD reads 1.3200/03, the spread is the difference between 1.3200 and 1.3203, or 3 pips. In order to break even on your trade, your position must move in your direction by an amount equal to the spread.

Standard Account
Trading with standard lot sizes

Mini Account
Trading with mini lot sizes

Margin
The deposit required to open a position. A 1% margin requirement allows you to trade a $100,000 lot with a $1,000 deposit. A mini account is 1/10th of a standard account. A 1% margin requirement allows you to trade a $10,000 lot with a $100 deposit.
Leverage The effective buying power of your funds expressed as a ratio. Calculated by the amount of times the notional value of your transaction exceeds the margin required to trade. e.g. 100:1 leverage allows you to control a $100,000 position with a $1,000 deposit. You can get leverages as high as 400:1 with some brokers.

Long Position
A position whereby the trader profits from an increase in price. (Buy low, sell high)

Short Position
A position whereby the trader profits from a decrease in price. (Sell high, buy lower)

Market Order
An order at the current market price

Entry Order
An order that is executed when the price touches a pre-specified level

Limit Entry Order
An order to buy below or sell above the market at a pre-specified level, believing that the price will reverse direction from that point.

Stop-Entry Order
An order to buy above or sell below the market at a pre-specified level, believing that the price will continue in the same direction from that point.

Limit Order
An order to take profits at a pre-specified level

Stop-Loss Order
An order to limit losses at a pre-specified level

OCO Order
One Cancels the Other. Two orders whereby if one is executed, the other is cancelled.

Slippage
The difference in pips between the order price and the price the order is executed at.
Artical Source By GTL