International Trading


There are three important concepts inForex trading that you must understand in order to find your way in the currency markets. These concepts are “Pips”, “Volume”, and “Buying” and “Selling Short”. They may look more like four concepts but buying and selling are like the two faces of the same coin so we can consider them as a single concept.
Lets first talk about what Pips are. It is common when reading literature about forex trading to find statements about how many pips a day you can make using some trading system or the other. In short, currency pairs prices will go out to 4 significant digits. For example; if one currency pair is trading for 1.3458 then an increase to 1.3459 would be a “one-pip” increase in the price of this particular currency. This is an increase of one hundredth of a percent of the value of the currency pair you are trading. And depending if you have a regular or mini account, each pip will have a value of $10 or $1.
Now lets talk about what Volume is; the Trading Volume is a quantity that tells forex traders how much money is being traded at one particular moment in the market. The currency markets are known by their high trading volume during most of the time markets are open. Usually there are spikes in the volume during some type of news breaks and during the time New York stock exchange is open. The volume of transactions in Forex, even in a slow day, will always be much higher than the volume traded in other large exchanges at their full capacity.
Perhaps the most obvious of the concepts in forex is that of Buying. It refers to the acquisition of a particular currency pair to open a trade. Selling short refers to the selling of a particular currency to open a trade. When you Buy, you do this because you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high. In the case of Selling short, it’s a bit more complicated, but just at the beginning. Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky for new traders to grab this concept of earning by Selling but once you are in front of your trading station it will look much simpler.

International Trading


You cannot be specific about the moment when you will have some gains. It is the trend and market saturation period within which your profit lies. If you think to consider same mechanism and operating forces between stock market and forex market – I would say it is just like comparing between a mouse and a mountain. Look stock market indicators or indices can surely affect the profitability of the forex market, but it is only a single reason among thousands of other factors that affect forex mini trading profitability. Stock trading more often deals with stock optimizing but in forex trading this is not the scenario. The ground or conditions of assumptions even can change in forex mini trading. So it is better to get your trading activities on roll to ensure profitability.I cannot advice you to start your business of trading with little capital. You need to set on what time duration how much you want to make and by how. It is completely stupid keeping money idle rather than keeping it on roll. The more you make transaction of your money the more the chances of increased profitability. In fact, just think of a worst case scenario that you have transacted money for several times but you are not taking your target profit. What is the benefit you get out of this situation? See the market capitalization you are left with. Yes, get your money used as many times as you want - there is no loss for you. All most all the trading floors or markets in the forex trading have certain categorization and guidelines. Learn them properly and exercise your rights and category specific benefits. Listen these rules, regulations and categorizations are to expedite the trading of that floor. These provide the guidelines and protective mechanisms for the forex traders. Since these are set by the regulatory authorities. Not all are expert in this line and does not mean that forex trading door is closed for novice - so the rules, regulations and categorizations are developed. The market in most cases takes too much time to be volatile, relying on the market or trading informers at this situation also helps. Sometimes the situation in fact turns into opposite. So seek a loyal informer or I better term it develop a loyal informer. Forex trading is a complete game of making money out of money. You need to be the hard worker to set the profitability high enough. Return on investment is true consideration, achieving it with quickest turn around and with little involvement – are the mastery of the game. Play it.