Money management in the foreign exchange currency market requires educating yourself in a variety of financial areas. First, a definition of the foreign exchange currency or forex market is called for. The forex market is simply the exchange of the currency of one country for the currency of another. The relative values of various currencies in the world change on a regular basis. Factors such as the stability of the economy of a country, the gross national product, the gross domestic product, inflation, interest rates, and such obvious factors as domestic security and foreign relations come into play. For instance, if a country has an unstable government, is expecting a military takeover, or is about to become involved in a war, then the country's currency may go down in relative value compared to the currency of other countries.
The Forex, or foreign currency exchange, is all about money. Money from all over the world is bought, sold and traded. On the Forex, anyone can buy and sell currency and with possibly come out ahead in the end. When dealing with the foreign currency exchange, it is possible to buy the currency of one country, sell it and make a profit. For example, a broker might buy a Japanese yen when the yen to dollar ratio increases, then sell the yens and buy back American dollars for a profit.
There are five major forex exchange markets in the world, New York, London, Frankfurt, Paris, Tokyo and Zurich. Forex trading occurs around the clock in various markets, Asian, European, and American. With different time zones, when Asian trading stops, European trading opens, and conversely when European trading stops, American trading opens, and when American trading stops, then it is time for Asian trading to begin again.
Hi Samuel23, I read your view for "Money Management Tips For Trading On The Forex" but there is nothing useful related with money management tips. Even you included some good info about forex like major forex markets and timezone.
Hi Paul, thanks for your comment about my post concerning the "Money Management Tips For Trading On The Forex". Normally you will find that the tip you are looking for is already given in the post. I wanted to express how money management can be useful in forex. Maybe it is not that explicit but i will share you a better tip next time.
Great thanks to share "Money Management Tips For Trading". It is really helpful for me, because I am learning forex trading. Samuel23, if you share risk management tips as well then it will be great help for me.
Nice post, sir. Thanks for you thread about Money Management. It's very useful for me to be better in trading with my FBS account.
That's gonna help a lot. Thanks for being so kind.. Will keep a track
This is really helpful, thanx!