What is Forex Trading????????

Forex trading

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.

Forex Trading Software Preview

       GCI now offers both ICTS trading software (windows and java-based) and MetaTrader trading software:
 
 

ICTS Trading Software

Trade currencies on 2 pip spreads from the Dealing Rates Table or directly from real-time charts.   You can set alerts, place conditional orders, and take advantage of our AFX news feed, live quotes, comprehensive real-time position and account tracking, and mobile trading access.
 

Prices from the "Dealing Rates" windows are constantly updating and can be clicked on at any time to place a trade.  This full-featured trading platform also provides real-time account balance, P&L, and margin information, and real-time charts and news.  Recent enhancements include the ability to "hedge" (enter opposite positions in the same currency without offsetting or using additional margin). 
 
Click here for a Free ICTS Forex Trading Demo Account...
 

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MetaTrader Trading Software
GCI now offers Forex and CFD trading on the popular MetaTrader 4 trading platform.  Trading directly from charts, fractional lot capabilities, the ability to program trading signals, and unlimited charts and technical indicators are among the many benefits.  MetaTrader is ideal for novice traders and professionals alike.   All major currency orders are filled directly in the interbank market, with no dealer intervention or delays.

Test MetaTrader software for free: download the installation file (gci4setup.exe, 3.5Mb) to your PC, launch it and install the program, checking for instructions appearing on your monitor.

 

Software Download

ICTS Web-Based (Java) Trading Software:  No download necessary - login to your demo account here

ICTS Windows-based Trading Software:  Download Here
MetaTrader Trading Software:  Download Here

Standard Forex Account

State-of-the-art trading software. The GCI trading software provides real-time prices in currencies, global equity indices, gold, silver, and crude oil.  Live charts, and real-time P&L and account equity tracking are fully integrated into the free software.  Windows-based and Java-based versions are available.  Download a free demo... 

Zero commissions.  Client trading performance is enhanced by eliminating all commissions and transaction fees.

USD or Euro Denominated Trading Accounts.  GCI clients can now choose to maintain their account balance and P&L in either US Dollars or Euros.   Select the Base Currency you want for your account on the account application.

Trade on 2 pip spreads.  Clients can trade on tight spreads in major currencies and crosses, 24 hours a day.  Unlike many competitors, GCI's spreads are consistent in all market conditions and will never widen during volatile times or news releases.

Hedging Capability.  Clients can open positions in the same currency in opposite directions, without the positions offsetting and without using additional margin.

Product Offerings.  You can also trade Gold, Crude Oil, S&P 500, DAX 30, Nikkei 225, and Dow Jones on the same trading platform - with the same low margin requirements and zero commissions. 

Risk is limited to deposited funds.  GCI's sophisticated margin and dealing procedures mean that clients can never lose more than their funds on deposit.  All customer funds are insured and maintained in separate accounts.

Tools for successful trading.  GCI clients benefit from a wide array of resources to improve their trading results, including market analysis and research, real-time charts, and free Forex trading signals.

Try a Free Forex Demo Account...

Mini Forex Account

Rapid and fair trade execution.   Market orders are confirmed within seconds at prices clicked on or accepted by the client.  Furthermore, GCI has a "zero slippage guarantee" for all Forex Stop and Entry Stop orders that are placed at least one minute before the market reaches your specified price.  

Zero commissions for all accounts.  Client trading performance is enhanced by eliminating all commissions. 

State-of-the-art trading software. The GCI trading software provides real-time prices in 23 major currencies, 5 equity indices, plus gold, silver, and crude oil.  Live charts, and real-time P&L and account equity tracking are fully integrated into the free software.  Windows-based and Java-based versions are available.

USD or Euro Denominated Trading Accounts.  GCI clients can now choose to maintain their account balance and P&L in either USD or Euros.   Select the Base Currency you want for your account on the account application.

Tight 3 - 4 pip spreads.  Clients can trade on 3 - 4 pip spreads in major currencies and crosses, 24 hours a day.    

Broad offering of financial products.  In addition to currencies, you can trade mini versions of Dow Jones, Gold, S&P 500, other equity indices from your Mini Forex account.  Trading opportunities and profit potential are that much higher.  Click here for a full list of products and specifications.

$2000 minimum account balance.  GCI provides access to spot forex trading for individuals as well as institutions. Margin requirements are $50 per lot.

Risk is limited to deposited funds.  GCI's sophisticated margin and dealing procedures mean that clients can never lose more than their funds on deposit.

Hedging Capability.  Clients can open positions in the same currency in opposite directions, without the positions offsetting and without using additional margin.

Tools for successful trading.  GCI clients benefit from a wide array of resources to improve their trading results, including market analysis and research, real-time charts, and free Forex trading signals.
  

Forex Account Types

he Standard Forex Account is designed for traders wishing to trade currencies and other major financial products on one of the most sophisticated and full-featured trading platforms in the industry.  Narrow spreads and rapid execution are consistent in all market conditions.

$5,000 To open 100,000 Currency units per lot Currencies, Equity Indices, Crude Oil, and Metals 200:1 Leverage 2 pip spreads ICTS trading software	Open A Live Account
	Free Practice Account
	More Details...

 

Mini Forex

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The Mini Forex Account is ideal for traders wishing to trade currencies and other major financial products with a smaller transaction size and lower account opening minimum.

$2,000 To open 10,000 Currency units per lot Currencies, Equity Indices, Crude Oil, and Metals 200:1 Leverage 3 pip spreads ICTS trading software	Open A Live Account
	Free Practice Account
	More Details...

 

MetaTrader

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The MetaTrader Account offers a wider product range and the MetaTrader software platfrom.  While default lot sizes are 100,000 currency units, traders can select as little as 0.10 lots to transact.  Unlimited charting and programmable trading signals are among the features offered in GCI's MetaTrader account.

$2,000 To open 100,000 Currency units per lot; fractional lot capability Currencies, Equity Indices, Crude Oil, Metals, and Shares 200:1 Leverage 3 pip spreads MetaTrader software	Open A Live Account
	Free Practice Account
	More Details...

Automated trading platform

An automated trading platform is used both by trading system publishers, and the investors who subscribe to them. Using it, traders can track marked-to-market performance using several different metrics for verifiability.^[1] In addition to tracking performance of these "black box" systems, the automated trading platform also provides a venue to permit the system's buy/sell signals to be executed to the subscriber'sbrokerage account automatically. Some of the automated trading platforms are completely broker-agnostic and permit an interface with almost any brokerage firm.

The immediate benefit to investors is that it allows them to have insight into various trading systems that are on offer, which may make claims of profitability. The platform "allows people or institutions that believe they can outperform the market to prove to the public in a verifiable way that they indeed can do so."^[2] In the second stage of use, traders subscribe to one or more of these trading methodologies, and have the trades that are specified by the system executed automatically in a brokerage account.

Although turning over decisions and execution to a "black box" system requires the investor to give up an element of control, the automated trading platform does serve the purpose of allowing the trader to spend more time on strategy and on studying trends, rather than executing those strategies manually.

Retail forex

In financial markets, the retail forex (retail off-exchange currency trading or retail FX) market is a subset of the larger foreign exchange market. This "market has long been plagued by swindlers preying on the gullible," according to The New York Times^[1]. Whilst there may be a number of fully regulated, reputable international companies that provide a highly transparent and honest service, it's commonly thought that about 90% of all retail FX traders lose money. ^[2] [3]

It is now possible to trade cash FX, or forex (short for Foreign Exchange (FX)) or currencies around the clock with hundreds of foreign exchange brokers through trading platforms. The reason that the business is so profitable is because in many cases brokers are taking the opposite side of the trade, and therefore turning client capital directly into broker profit as the average account loses money. Some brokers provide a matching service, charging a commission instead of taking the opposite site of the trade and "netting the spread", as it is referred to within the forex "industry."

Recently forex brokers have become increasingly regulated. Minimum capital requirements of US$20m now apply in the US, as well as stringent requirements now in Germany and the United Kingdom. Switzlerand now requires forex brokers to become a bank before conducting fx brokerage business from Switzerland

Algorythmic or machine based formula trading has become increasingly popular in the FX market,with a number of popular packages allowing the customer to program his own studies.

The most traded of the "major" currencies is the pair known as the EUR/USD, due to its size, median volatility and relatively low "spread", referring to the difference between the bid and the ask price. This is usually measured in "pips", normally 1/100 of a full point

According to the October 2008 issue of e-Forex Magazine, the retail FX market is seeing continued explosive growth despite, and perhaps because of, losses in other markets like global equities in 2008.

Russian Trading System

The Russian Trading System is a stock market established in 1995 in Moscow, consolidating various regional trading floors into one exchange. Originally RTS was modelled on NASDAQ's trading and settlement software; in 1998 the exchange went on line with its own in-house system. Initially created as a non-profit organization, at the moment RTS is in the process of reorganization: it is being transformed into a joint-stock company. RTS data is distributed world-wide through major financial information vendors such as Reuters.

Russia's stock market surged 686 percent from 2001 through 2005 - and another 66 percent in 2006. ^[1]

The RTS Stock Exchange markets are open from 10:30 a.m. till 6:00 p.m. Moscow time (GMT+3). ^[2]

Forex Trading System

The point of this article is to help you to the next level and show you what this amazing subject has to offer.

You can find heaps of websites online which recommend counsel on the newest and the best trading systems that you can use in the Forex promote. New traders are regularly fooled into purchasing these trading systems in the chance of earning more profits. Don?t make the same confound. You have to curb these trading systems before you lastly influence to employ them.

The internet is full of scammers and some of the trading systems don’t really work or are fraudulent. You have to choose only the best and reliable systems. Reliable trading systems can bring in more profits if you use them consistently and in a disciplined manner.

Most Forex traders are looking for the best trading systems presented online and perhaps you?re looking for it too. You have to be reallyistic when looking for an useful system and so you will ought to believe numerous factors. Some systems are very hard to understand. You must contract that you understand the system?s judgment before purchasing it. Only by understanding the judgment of the system can you effectively use it to your plus. By curbing the trading system thoroughly, you will be able to influence if the total system is intuitive and judgmental from your own sense of observe. If you think that you can line with the trading system, conscious that its chief judgment is amenable, you can go along way.

Keep reading further to learn how this topic can benefit you, as the rest of this article will supply you will the needed information.

Having a good trading system in the Forex promote is central. You must apply very stab in your researches and conduct some trials. How can you link a good system? A good system is one that can be worn over the long-name and it has a sustained earning budding. For beginers, it is advised that you have a resultant design just in lawsuit you meet a decline. By burden so, you can settle buoyant although the economic struggles. You should be emotionally complete and once you earn big money, you should be shrewd in with or expenses it.

When with a certain trading system in the Forex promote, you should not presume close fallout. loyal enough, you can earn big money in Forex trading but there is also the possibility of behind your investment. You have to be unwearied and very sensitive in making your trading decisions. Give the system enough time to work out; for example, a fasten of months to a year may be enough to influence if the system is profitable or not. inside this interlude, you ought to contract consistent and judgmental trading transactions.

Most of today’s trading systems provide near-real time Forex information but some systems only provide simulations of the logic at work based on historical data. If you think that the basic logic is understandable and solid, you can still use the system to your advantage.

The Forex market is rapidly changing or shifting. Your trading system should be able to easily adjust to these changes and shifts. Complicated systems do not guarantee better performance and it would be better to choose a system that is intuitive and user friendly. Study the major trends in the Forex market and after that, you can already choose a good trading system that can work for you. Select the system that is rational and disciplined. Don’t use your emotions when conducting the trade because it may be the start of your downfall. Get your very own trading system now and join the Forex market.

Seeing is believing, but sometimes we can?t all experience every subject in life. This article hopes to make up for that by providing you with a valuable resource of information on this topic.