Archive for ‘February, 2009’

Spreads and Investment Costs in Forex Trading

Spreads and Investment Costs in Forex Trading

It is true – Forex brokers do not charge a commission. Investors who are used to trading on the stock market will find this concept unbelievable, but rest assured this does not mean that a broker on the Forex market makes no money.
Forex Brokers - No Commission
Forex brokers make their earnings from the spread. Brokers [...]

Forex Trading: One Cancels the Other Orders

Forex Trading: One Cancels the Other Orders

In Forex trading, a One Cancels the Other Orders (OCO) order combines the features of a stop-loss and limit order; the first limits losses while the second locks in gains. This particular type of order is quite popular since it is one of the simpler to learn and is easy to use.
OCO orders in Forex
Let’s [...]

Understanding Margin Calls in Forex Trading

Understanding Margin Calls in Forex Trading

The ability to understand margin calls is a large part of finding success in the Forex market. In order to illustrate the concept, we have provided an example of a currencies trade.
Pairing the Euro with the US dollar we have:
Bid at 1.1901, Ask at 1.1903, Change of 0.0091, Percentage Change of -0.76%, High of 1.2024, [...]

Comparison of Forex Trading to Stock Trading

Comparison of Forex Trading to Stock Trading

Many investors like to diversify their investment portfolio by trading in more than one market. Unfortunately, experienced stock market investors do not necessarily have a leg up on the competition when it comes to trading in currencies.
Currency Trading
Investing in the Forex market requires the trader to learn a whole new set of terms. For instance, [...]