A Futures contract gives its holder the right to buy (or sell) a pre-determined quantity of a commodity at a pre-set price at a pre-determined time in the future.

Futures contracts originally covered physical commodities like grain, cotton, and coffee, but today they cover more asset classes and many more financial instruments such as currencies, bonds, and stock market indices.

Trading CFDs on Futures

Instead of trading directly a Futures contract, you can trade CFDs on Futures. Futures trading allows investors to speculate on the value of a financial instrument going either up or down. But Futures trading is also used by suppliers of commodities wishing to hedge against their market risk. This activity of speculating and hedging creates significant market volume and price volatility. CFDs offer investors the chance to speculate on the price volatility of Futures contracts. Here are the advantages of trading CFDs on Futures.

The Forex Market is a decentralized OTC (Over-the-Counter) financial market operating 24 hours per day (Monday-Friday) using the electronic network of banks (ECN). It is estimated that the Forex turnover today may exceed 5 trillion dollars per day.

What is Forex Trading

Forex or else FORex EXchange is an electronic network that enables the exchange of global currencies, one for another. Currency pairs are exchange mechanisms used for the global trading of goods and services. Importers and exporters, large corporations, investors, and banks are only some of the participants in the Forex Market. The Forex market operates like the internet, it is not centralized, and it exists in the electronic network of banks, which is called the ECN network. Forex is a huge market with a daily activity turnover worth more than 4 trillion USD. The Rules of the game in Forex are different from those in equity and bond markets, but many similarities can be found too.

» Forex Trading Guide

INTEREST RATES

In the US, the FOMC holds eight (8) regularly scheduled meetings during the year (January, March, April/May, June, July, September, November, and December)

Higher interest rates make a domestic currency more attractive to foreign investment. Unexpected changes in interest rates create enormous volatility in the Forex market. Carry trading accelerates and enhances the impact of changing interest rates.

INTEREST RATE DECISIONS

(a) Tight Monetary Policies (aiming to deal with high inflation) favor currency appreciation

(b) Flexible Monetary Policies (aiming to deal with weak growth and unemployment) lead to currency depreciation

• FOMC (US) Meetings Calendar

• ECB (EU) Meetings Calendar

• US Interest Rate Probabilities (FEDWatch Tool)

• Real Interest Rates (WorldBank)

Nowadays, any person with access to the internet can open an account with a forex broker and enter a trade; however, very few succeed! The reason is simple: forex trading requires discipline, education, and a plan! While these things sound easy to achieve, reality says otherwise. Going forward we will present you with the key aspects you need to know about a forex trading plan: what it is, how it works, and the benefits it offers.

 

What is a Trading Plan and How Can Use It?

If you think that the desire to become a forex trader, followed by the registration on an online forex site and placing a trade is a plan; then you’re very wrong. A trading plan needs to be built with your personality at its core and to contain: what/when/how/why needs to be done, rules to manage and minimize risks, a trading system; but most of all, your personal goals! A great trading plan can’t be built overnight, as both mistakes and successes are the ones that teach you and will gradually indicate how to create it. Education and discipline are the other two lucky charms that will bring you profit, and the two of them should be considered as part of your plan.

Fx Trading Guide -Forex Trading Explained

Forex trading offers a lot of opportunities but making money isn't as easy as most traders believe. There are hundreds of fundamental variables, that change 24 hours per day. Therefore, being successful when trading Forex currencies is certainly not easy, although it is advertised by brokers as such.

What is Forex Trading

Forex or else FORex EXchange is an electronic network that enables the exchange of global currencies, one for another. Currency pairs are exchange mechanisms used for the global trading of goods and services. Importers and exporters, large corporations, investors, and banks are only some of the participants in the Forex Market. The Forex market operates like the internet, it is not centralized, and it exists in the electronic network of banks, which is called the ECN network. Forex is a huge market with a daily activity turnover worth more than 4 trillion USD. The Rules of the game in Forex are different from those in equity and bond markets, but many similarities can be found too.

This guide aims to present some major fundamental aspects of Forex trading.

FxPros.net -Forex Trading Glossary (A-Z)

A

What is ADX (Average Directional Index)?

ADX is a technical analysis indicator measuring the strength of a trend.

What is the Appreciation of a Currency?

A currency is appreciated when it earns value against another currency. This may be due to fiscal or monetary developments or simply due to market psychology. A monetary policy aiming for domestic currency appreciation is called a “Hard-Currency Policy”. The opposite situation is called currency depreciation.