Forex Market Analysis


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Market Hours

The forex market is open 24/7, five days a week. Successful traders move with the market. The more exchanges that are open mean more activity and better trades.

What is forex?

The average daily trade in the global forex and related markets is continously growing and was last reported to be over US$ 4 trillion in April 2007 by the Bank for International Settlement; it is more than three times the aggregate amount of the US equity and treasury markets combined.
The forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

When to buy? When to sell?

The aim of being profitable in forex is buying when the value of a currency pair goes up and selling when is goes down. A currency pair goes up when the base currency�s value increases with regard to the counter currency. Inversely, a currency pair falls when the base currency�s value decreases with regard to the counter currency. For example, the EUR/USD will go up if the euro strengthens with regards to the US dollar. If, on the contrary, the US dollar strengthens, which means the euro weakens, the EUR/USD will go down. As with any financial investment, the aim is to buy an instrument at a low price and sell it at a higher price. In forex, it is also possible to sell at a high price and buy at a lower price thus making profits under all market conditions.


Forex Terminology

Knowing and understanding forex 'lingo' is critical for your success. Below are some of the most common forex words and definitions.

Forex Market Analysis

Analysing and studying the market is critical prior to making any trading decisions. There are two types of analysis. Market research in the form of either fundamental analysis or technical analysis is critical to successful forex trading.

Analyzing the Forex Market

You need to understand the forex market before you invest your money. Basically, the wisdom on investing comes with experience and time but there are certain common things that any trader must watch for in a forex market, since it is very volatile. There are two main ways to analyze the market.


IMPORTANT INFORMATION:

No offer or solicitation to buy or sell securities, securities derivative, futures products or off-exchange foreign currency (forex) transactions of any kind, or any type of trading or investment advice, recommendation or strategy, is made, given or in any manner endorsed by any TradeStation affiliate and the information made available on this Website is not an offer or solicitation of any kind in any jurisdiction where any TradeStation affiliate is not authorized to do business, including but not limited to Japan.

Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options futures or forex); therefore, you should not invest or risk money that you cannot afford to lose. Options trading is not suitable for all investors. Your account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. Please click here to view the document titled Characteristics and Risks of Standardized Options. Before trading any asset class, customers must read the relevant risk disclosure statements on our Other Information page. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.

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