Forex

The Forex market is the largest financial market in the world
Forex market stays open from Monday morning in New Zealand until Friday midnight on the west coast of the USA.

1. What is Forex Market?
2. What affects the Forex market?

3. How a Forex trade works?
4. Why trade Forex with First Financial Banc?

1. What is Forex Market?

If you have traveled, you already have a Forex trading experience. You are paying with the currency of your country to buy the currency of the country you are staying in. People who know the Forex market buy or sell currencies for two reasons: to profit from the difference of the buy and sell prices, or to protect their investments. The Forex transactions are exchanged between the market participants, so there is no “open” or “close” of the market, excepting the weekends.

In a few words, Forex trading go-ahead from Monday morning in New Zealand up to midnight Friday on the west coast of the USA. You might feel comfortable trading the major currency pairs, or you like to deepen your knowledge about the strength of an exotic pair, or you trust the process to a professional analyst who would help you keep up with the latest updates and events. As time pass, traders bring their own strengths and preferences to their trading and so on they create their own trading style.

2. What affects the Forex market?

Market participants have different goals; companies that are controlling currency exposure to protect their financial situation; fundamentals traders who focus on factors that affect the power of the whole economies; technical traders who look for price patterns to find what will happen next.

Different market participants evaluate differently the factors which indicate the behavior of the Forex market: interest rates, legal regulations, financial announcements and events which happen spontaneously or made by man. These are factors that change the direction of the market, here, just keep in mind that in Forex you can be profitable in both cases, when the prices fall and when they arise.

3. How a Forex trade works?

Per analogy with your vacation pocket money, forex trading is always involving two currencies. The base one is the currency you are buying or selling, and its price is given in the quote currency:

Margin

Margin is usually explained with leverage, so the margin is the money you borrow from the forex service provider you are working with. Leveraging amplifies the profit or loss from a given trade. A 2% margin means that you can command positions that are 50 times greater than the funds in your account.

Lot

A lot is a unit used in trading, especially on Meta Trader 4. Usually, 1 lot is 100,000 of the base currency. In other words:

1 lot = 100,000 units of base currency
1 mini-lot = 10,000 units of base currency
1 micro-lot = 1,000 units of base currency


Trading platforms allow you to trade less than 1 lot. To trade 10,000 of the base currency (called a mini lot), type 0.1 lot into the Volume field. To trade 1,000 of the base currency (called a micro lot), write 0.01 lot. The smallest enabled trade size is a micro lot.

You think a currency will rise
You buy the currency
You take a Long Position

You think a currency will fall
You sell the currency
You take a Short position

When you trade Forex, you have the choice between buying or selling a currency pair.

When you buy,
you are said to be Bullish

When you sell,
you are said to be Bearish

4. Why trade Forex with First Financial Banc?

- 10 years of online trading expertise
- Small group of traders and dedicated account managers
- Trusted by +300,000 traders worldwide
- Multilingual Customer Support
- Market research with daily & weekly reports
- Global Liquidity & Instant Execution
- Segregated accounts with deposit protection