Forex, or FX, stands for the foreign exchange market. This is a 24-hour market in which
currencies are traded in cash, which is known as a spot market. There is no central,
standard trading center, such as, a stock exchange. Instead, trade is conducted
"over-the-counter" via an international network of dealers. Until recently, the
forex market was confined to larger traders: major, international commercial and
investment banks; international corporations; international money brokers; currency
traders. When the United States went off the gold standard in 1971, investors
immediately recognized new opportunities for making profits. Every year, more
companies start up that cater to smaller institutions and investors so they may
participate in spot forex trading.
A prime factor to take into account before participating in the spot market is
your temperament. A risk-aversive customer is not suitable for this marketplace.
You should consider not only your experience in the investment world, but your
objectives, and your capacity to absorb financial losses. Certainly, you should
never invest any amount of money you cannot afford to lose.
posted January 22, 2008
FXCM's (www.fxcm.com) No Dealing Desk trading platform recently added an additional bank
as a price provider, bringing the total to seven global banks that compete to provide pricing
for FXCM's Trading Station. Over the last three months, typical spreads have already tightened.
Watch closely for lower spreads in the following currency pairs:
Currency Pair Typical Spread As Low As
EUR/USD 2.3 0.9
USD/JPY 2.9 0.5
GBP/USD 3.7 0.8
USD/CHF 3.8 1
EUR/CHF 2 0.1
AUD/USD 3.7 1
USD/CAD 4.8 1
NZD/USD 4 0.8
EUR/GBP 2.4 0.6
EUR/JPY 3.9 0.6
GBP/JPY 5.3 3
CHF/JPY 3.5 1
"FXCM's No Dealing Desk trading platform aims to provide transparent and fair execution.
Every trade is executed back to back with one of the world's premier banks, or financial
institutions, which compete to provide FXCM with bid and ask prices," said Drew Niv CEO of
FXCM. "The best spreads available to FXCM are streamed to you with a small mark-up, which is
generally one pip or less for major currency pairs."
For a complete list of currency pairs and their new tighter spreads, please go to
www.fxcm.com
If you have any questions, please call one of our currency specialists, who are available 24
hours a day, at 888-503-6739, or email us at info@fxcm.com.
CURRENCY TRADING
1. Purpose of trading
The purpose of trading on any market is to buy low and sell high. The foreign currency market
FOREX is no exception. The goods traded on this market are rates of currencies of different
countries. As any other goods the currencies have their prices.
To settle transactions between businesses located in different countries, governments,
speculative transactions and so forth, banks around the world execute currency trades
on Forex Market. Depending on various trade, economical and other parameters, interest
rates, central bank policies, time of the day, preferences and anticipations of the market
players, and many other causes, the rates, that is prices, of currencies stay in ceaseless
motion.
Your task as a trader is to determine the trend of the rate and buy an appreciating
currency or sell a depreciating one, and then take your profits through execution
of a reverse transaction.
And, at last, you will have a special trading account allowing you to buy and sell
desired currencies. Despite of having US dollars in your account, you may start your
trading from selling euro or japanese yens not concerning yourself with not having
bought them in advance.
2. Some codes, numbers and definitions.
Each currency is assigned a three-letter code. For example, US dollar is coded -
USD (United States Dollar), euro is coded EUR (EURo), Swiss frank is coded CHF
(Confederation Helvetica Franc), Japanese yen is coded JPY (JaPanese Yen), British
pound is coded GBP (Great British Pound). The currency codes are defined by ISO-4217
standard. Usually they are formed as a two-letter ISO-3166 country code and the first
letter of currency name. There are a few exceptions most notable being the euro (EUR).
Currency rates are equal to ratios of currency units of different countries relative
to each other. The rates are represented by 6-letter words composed of two three-letter
currency codes. The first position is occupied, as a rule, by the code of a more expensive
currency. The rates are expressed in units of the second currency per unit of the first one.
For example, rates USDCHF (USD-CHF) show the number of Swiss franks in one US dollar,
but rates GBPUSD (GBP-USD) show the number of US dollars having to be paid for one
British pound. More detailed information on the codes of financial instruments may be
found in this table.
FOREX.com will never share your information, including your email address or phone number,
with any third party.
By providing your email address on this form, you consent to receiving emails from FOREX.com
. In the event you receive an email from FOREX.com and do not wish to receive similar emails
in the future, simply follow the instructions to unsubscribe. Your information will never be
shared with a third party. We respect your privacy; please read our Privacy Policy. Increasing
leverage increases risk. Spot Gold contracts are not subject to regulation under the U.S.
Commodity Exchange Act.
Member, National Futures Association (NFA # 0339826).
Forex trading involves significant risk of loss and is not suitable for all investors. Read full disclosure
Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act.
44 Wall Street, 7th Floor, New York, New York 10005
Tel: 1.877.FOREXGO (367.3946) or 1.908.731.0750 | Email: info@forex.com
©2009 FOREX.com
Trade on spreads as low as 1-2 pips, commission-free
Trade currencies and spot gold at FOREX.com. Dealing spreads are as low as 1-2 pips on the most
widely traded currency pairs. As always, you pay no commissions at FOREX.com, only the bid/offer
spread. And with our fractional pips, you gain an extra digit of precision so that you can
take advantage of smaller price movements.
Plus, you can enter orders at any price - even inside the spread - and trade around news
events, major economic announcements and other times of high market volatility.
Learn more about pricing and spreads.
FOREX is about freedom. Freedom to choose, first of all. Freedom to use your mind and make your own decisions. Freedom to learn and train. Freedom to earn and to be successful!
FOREX is a highly profitable business which doesn’t depend on time, place or political situation in your country. The main FOREX advantage is that you perform operations using computer from any part of the world 24 hours per day 5 days per week. FOREX is your own business, your responsibility and your success.
Masterforex offers a wide variety of trade instruments, an easy and user-friendly trading platform, which was designed for traders and by traders.
Masterforex
Masterforex Brokerage was founded on October 2, 2006. The project www.masterforex.org, comprising professional traders and talented analysts, was created in 2003.
The owner of MasterForex trademark is the company Beaverhead Financial Inc., registered in the Republic of Seychelles on the basis of the International Business Companies Act, 1994 (Act 24 of 1994). The company registration number is 028996. Legal address: 306 Victoria House, Victoria, Mahe, Seychells.
The Masterforex trade mark is registered in the U.S. Patent and Trademark Office with number 78/886380.
The work guidelines of Masterforex dealing center are:
Honest and open relationships with customers;
Experience and qualification of the company managers;
Striving to provide traders with the best service conditions.
Main activities of the company:
Services of customer access to world financial exchange, futures, precious metals and contract for difference markets;
Management of financial assets of major private customers (investment fund for a closed circle of customers).
