How to Make Money Online with Forex Trading

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Forex Overview Benefits and Advantages

No online money making site would be complete without its Forex Trading lesson. I am not a Forex trading expert, but here is some information you might find useful. I am a little iffy about investing considering the current stock market and my almost minimum wage part-time job.

"The foreign exchange market (CurrencyForex, or FXmarket is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. [1]FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.

Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.[3]

The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies."

Benefits of Forex Trading
by: Cynthia Macy

There are many benefits and advantages to trading Forex. Here are just a few 
reasons why so many people are choosing this market as a business 

1. LEVERAGE: In Forex trading, a small margin deposit can control a much 
larger total contract value. Leverage gives the trader the ability to make 
extraordinary profits and at the same time keep risk capital to a minimum. Some 
Forex firms offer 200 to 1 leverage, which means that a $50 dollar margin 
deposit would enable a trader to buy or sell $10,000 worth of currencies. 
Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. 

2. LIQUIDITY: Because the Forex Market is so large, it is also extremely liquid. 
This means that with a click of a mouse you can instantaneously buy and sell at 
will. You are never 'stuck' in a trade. You can even set the online trading 
platform to automatically close your position at your desired profit level (limit 
order), and/or close a trade if a trade is going against you (stop order). 

markets, you can only make money if shares are rising, but in economic 
recession and falling 'bear' markets, there is little chance of making big money. 
Forex is different. One of the most exciting advantages of FX trading is the ability 
to generate profits whether a currency pair is 'up' or 'down'. A trader can profit 
by taking a 'long' position, (buying the currency pair at one price and selling it 
later at a higher price), or a 'short' position, (selling the currency pair and buying 
it back at a lower price). For example, if you think the US dollar will increase in 
value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If 
you think the Yen will increase in value against the Dollar then you will sell 
Dollars and buy yen (go short). As long as the trader picks the right direction, a 
potential for profit always exists. 

4. 24 HRS: From Sunday evening to Friday Afternoon EST the Forex market 
never sleeps. This is very desirable for those who want to trade on a part-time 
basis, because you can choose when you want to trade--morning, noon or night. 

Forex firms offer free 'Demo' accounts to practice trading, along with breaking 
Forex news and charting services. These are very valuable resources for traders 
who would like to hone their trading skills with 'virtual' money before opening a 
live trading account. 

6. 'MINI' TRADING: One might think that getting started as a currency trader 
would cost a lot of money. The fact is, it doesn't. Online Forex Firms now offer 
'mini' trading accounts with a minimum account deposit of only $200-$500 with 
no commission trading. This makes Forex much more accessible to the average 
individual, without large, start-up capital. 

Please visit the author's other trading sites to learn more about forex trading: 

About the author:
My name is Cynthia Macy and I've been trading various markets for over 12 years. I now concentrate on the forex market, as it has several advantages over trading 
other markets. If you'd like to learn more about forex trading, visit:

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This should be all the information that you need to get started with Forex. 


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