|
Online
Casinos
> Casino
News
26 December 2007
Forex Trading, or in other words, Currency Gambling
As traditional online gaming activities become more constricted,
many people with gambling in their veins have shifted their attention to the Foreign Exchange market,
or Forex (FX), as its known for short. The whole idea is to speculate that the
currency which you buy at one rate will shift to another rate that allows you
to make a profit. When you do so, youll be joining the largest financial
market in the world, with a daily average turnover of well over US$1.5 trillion.
The FX market is 40 times larger than the combined volume of all U.S.
equity markets.
The Majors
Trading in foreign exchange currencies is done in pairs, for
example simultaneously buying Euro/US Dollar (EUR/USD) or US Dollar/Japanese
Yen (USD/JPY). The most commonly traded (and therefore most liquid) currencies
are called the Majors. Over 85% of all daily transactions involve the Majors,
which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc,
Canadian Dollar and Australian Dollar.
Forex trading is a truly 24-hour market. It begins each day in Sydney and moves around the globe as the business day starts
in each financial centre, progressing to Tokyo,
then London and then New York. The only rest day is Sunday,
when trading is not available between 14:00 and 19:00 GMT.
Technical Terms
When you buy currency at a specific price, this is called "opening
the position". Selling the currency at a different value is called
"closing the position". You can use the resources on a
Forex web site (such as http://www.easy-forex.com)
to check on currency trading prices and get news updates from all around the
world. This will help you to determine your own pre-set rates.
You should note that due to the fluid nature of the Forex global
market, 100% guarantee to pre-set rates is impossible. However, in most cases,
your Forex Internet platform provider will make all efforts to guarantee the
rates.
You can change your pre-defined rates at any time while your deal
is open. This includes placing Stop-Loss and Take-Profit
orders. Take-Profit orders are used to lock in profits in the event the rate
moves in a favorable direction and give you a degree of security. For example,
you may spend 10,740 Yen to buy $100 worth when the rate is 107.40 yen per
dollar order. You set the Buy Rate at 108.80 Yen. Once the price reaches
108.80, the order is automatically executed to sell $100 and
buy 10,880 yen, giving you a profit of 140 Yen.
A Stop-Order is an order placed to sell a currency when it
reaches a certain exchange rate. It is designed to limit your loss. For
example, you can set a stop-loss order for 10% below the price you paid
for a currency, thereby limiting your loss to 10%.
Starting out and Funding
A good way to start becoming familiar with Forex sites is by using
the Demo or Practice Play channels. You can then shift over to Real Money
with amounts as low as $50. As you increase your experience level and scope of
activity, you can raise the amounts that you trade. You can fund your account
with your credit card and start trading immediately, regardless of banking work
days or hours. Some sites also allow you to freeze the Buy or Sell rate for a
few seconds, irrespective of rate movements, so that you can decide whether to
make the deal or not.
Winning at Forex
To win in Forex trading, the three most import points to
remember are:
1) Keep it simple ensure that your
trading regimen and trading rules stay simple and easy to apply.
2) Dont care focus on the
larger picture and not just on individual trades. It is important to stay cool
and unstressed so that you avoid making mistakes.
3)
Find an edge its a good idea to
learn about trading systems while you are still in Practice mode. One useful
link for this is http://www.easy-forex.com/Gateway.aspx?gid=80304
4) Is Trading seen as Gambling?
Officially, Forex is not seen as gambling, which is why it
is freely allowed on the Internet. There are similarities and differences. Gambling
and Trading can both seem random and both have more losing participants than
winners (terminology is also similar). However it is argued that trading
creates value while gambling exists just for entertainment. These are fine
points, since over 90% of Forex deals are conducted by small-time speculators
looking for fast profits. Unlike gambling in casinos, Forex gambling
activity is relatively low in risk as the foreign exchange market is the
biggest liquid financial market.
FOREX is a serious game. Play it with the pros.
Forex trading involves substantial risk of loss, and may not be suitable for everyone.
Direct Link:
Forex Trading, or in other words, Currency Gambling
Also see:
US
Online Casinos -
Online Casinos where USA players are accepted
Euro
Online Casinos -
Online Casinos where you can play in Euros currency
UK
Online Casinos -
Online Casinos where UK players can play in
UK £
British
Online Casinos -
The best in British online casinos for UK
residents.
Online
Casinos Guide
New to online casinos? We take you through the process in a
friendly, easy-going way.
CasinoTimes.co.uk
is updated every day with the latest online casino and
gambling news.
Click
Here
to bookmark us and check us out daily!
Return
to UK Casino News index
|
