<?php $title = 'Forex Trading Guidelines'; ?>
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            <h1>Forex Trading Guidelines</h1>
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            <p>So what is Forex trading you may ask? Forex is the 
            exchange you can buy and sell currencies. For example, you might buy 
            British pounds (by exchanging them to the dollars you had), then, 
            after pounds / dollar ratio goes up, you sell pounds and buy dollars 
            again. At the end of this operation you are going to have more 
            dollars, then you had at the beginning. <BR><BR>The Forex market has 
            much higher liquidity, then the stock market, as much more money is 
            being exchanged. Forex is spread between banks all over the planet 
            and as a result it means 24 hour trading. <BR><BR>Unlike stocks, 
            Forex trades are performed with high leverage, usually it is 100. It 
            means that by investing $1000 you can control $100,000, and increase 
            potential profits accordingly. Some brokers provide also called mini 
            Forex Trading, where the size of minimum deposit equals $100. It 
            makes possible for individuals to enter this market easily. 
            <BR><BR>The name convention. In Forex, the name of a "symbol" is 
            composed of two parts &#8212; one for first currency, and another for the 
            second currency. For example, the symbol usdjpy stands for US 
            dollars (usd) to Japanese yen (jpy). <BR><BR>As with stocks, you can 
            apply tools of the technical analysis to Forex Trading charts. 
            Traders indexes can be optimized for Forex "symbols", allowing you 
            to find winning strategy. <BR><BR><B>Example Forex Trading 
            transaction</B> <BR><BR>Assume you have a online Forex trading 
            account of $25,000 and you are trading with a 1% margin requirement. 
            The current quote for EUR/USD is 1.3225/28 and you place a market 
            order to buy 1 lot of 100,000 Euros at 1.3228, expecting the euro to 
            rise against the dollar. At the same time you place a stop-loss 
            order at 1.3178 representing a maximum loss of 2% of your account 
            equity if the trade goes against you, 50 pips below your order 
            price, and a limit order at 1.3378, 150 pips above your order price. 
            For this trade, you are risking 50 pips to gain 150 pips, giving you 
            a risk/reward ratio of 1 part risk to 3 parts reward. This means 
            that you only need to be right one third of the time to remain 
            profitable. <BR><BR>The notional value of this trade is $132,280 
            (100,000 1.3228). Your required margin deposit is 1% of the total, 
            which is equal to $1322.80 ($132,280 0.01). <BR><BR>As you expected, 
            the Euro strengthens against the dollar and your limit order is 
            reached at 1.3378. The position is closed. Your total profit for 
            this trade is $1500, each pip being worth $10.
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