Forex Basics

What is Trading Forex?

 

This Video will explain the basics of the forex market and what you can trade on a typical spread betting account. Find out the concept of trading and how it can benefit you. We explain the market size, what you can trade and when the market is open. We look at spreads, orders, limits and stop losses. This video will give you a good guide so you can then copy our signal.

What is The Forex Market?

Foreign Exchange (FOREX) is the short hand for the foreign exchange market, It is the biggest market in the world and dwarfs other markets such as the Futures Markets. The FX markets is open 24hr per day 5 days per week. You trade this market using a CFD ofr Spread Betting Brokers account.

What can you trade?

The Major pairs tend to take up most of the trading volume around the world. They account for the largest share of the FX Forex market at over 85%, therefore they have the highest market liquidity. The Major currecy pairs are: EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD

 

The market is open 24 hours a day from 9pm on Sunday until 9pm Friday

 

Forex Trading Hours Forex Trading Hours

There is not a central bank in Forex, and the price of currencies varies with the Market Makers setting exchange rates. The market is open 24 hours a day from 9pm on Sunday until 9pm Friday. You trade or bet on the volatility or fluctuations in price movement, usually traders make their trading decisions based or fundamental analysis or technical analysis, or a combination of both. Retail traders usually trade the markets from home using a PC or on the go using mobile app or a laptop. There are a huge number of forex brokers to review. As well as trading platforms and charting packages you can use.

 

With high leverage that can be as high as 500:1 - meaning that you can control $50,000 worth of assets with as little as $100 of capital. Leverage can create big profits when you are correct, but may also generate bigger losses when you are wrong, 90% plus of retail traders end up losing money.

 

 

Whta is a spread bet?

A tax-free way to speculate on the price movement of a market using a spread bet, and you don’t actually owning the underlying asset but just bet on the movement of that asset. Bu betting if the price will go up or down. The ability to predict these moves along with your position sizing and win rate, reward to risk will determine how profitable you are.

 

Forex Spread Bet A Forex Spread Bet

How do I setup a broker account and start trading?

 

 

A brokerage is required to execute and facilitate your trades, this is done using a brokerage account. There are hundreds of brokers out there some are better than others.

 

Our top 10 things to consider when selecting your broker are.

 

1) Reputation and reviews, UK registered FCA.

2) Spreads.

3) Account type Spread Betting or CFD.

4) Leverage and minimum lot sizing.

5) Markets available to trade, indices, Gold etc

6) Other costs ie Roll, Swap or interest.

7) Platforms and charting packages ie MT4.

8) Hedging and partial closing of positions.

9) Telephone and online support.

10) Money transfer methods in and out.

 

Top 100 Forex Trading Brokers.

 

This video explains what is a broker and how you go about selecting a broker. We will demonstrate how to open a practice demo account in this video.

 

How do I use the Trading Station Market scope Software on my PC?

 

This video explains how to setup your software and then use the Trading Station software on your PC to start trading. We recommend using a Demo account initially to build your confidence and knowledge of the software. We show you how to place trades, exit full and parts of a trade and calculate your position sizing while managing risk.

What is your trading signal and how do I use it?

 

This video explains how we send out our signal and how you should interpret them to manage your positions. We will look at the mobile phone app versions of the brokerage platform. And look at the app we use to send out our signals.

Calculating risk and managing position sizing.

 

Risk management is the single most important aspect of trading, you need to trade and manage risk according to your trading account size. We have this simple Risk Calculator tool that will help you set your position sizing correctly.

 

Download The Risk Calculator

Phycology and Risk Management

 

The phycology of trading and why it is important.

 

Mistakes that people make, typical retail trader mistakes.

 

How to avoid the mistakes and how to enjoy trading.

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