What is FOREX?

What Is Forex?
The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate. 

The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world. It dwarfs other markets in size, even the stock market, with an average traded value of around U.S. $2,000 billion per day. (The total volume changes all the time, but as of August 2012, the Bank for International Settlements (BIS) reported that the forex market traded in excess of U.S. $4.9 trillion per day.) 

One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly. 

Spot Market and the Forwards and Futures Markets 
There are actually three ways that institutions, corporations and individuals trade forex: the spot market, the forwards market and the futures market. The forex trading in the spot market always has been the largest market because it is the "underlying" real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time. However, with the advent of electronic trading, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future. 

What is the spot market?
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a "spot deal". It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement. 

What are the forwards and futures markets?
Unlike the spot market, the forwards and futures markets do not trade actual currencies. Instead they deal in contracts that represent claims to a certain currency type, a specific price per unit and a future date for settlement. 

In the forwards market, contracts are bought and sold OTC between two parties, who determine the terms of the agreement between themselves. 

In the futures market, futures contracts are bought and sold based upon a standard size and settlement date on public commodities markets, such as the Chicago Mercantile Exchange. In the U.S., the National Futures Association regulates the futures market. Futures contracts have specific details, including the number of units being traded, delivery and settlement dates, and minimum price increments that cannot be customized. The exchange acts as a counterpart to the trader, providing clearance and settlement. 

Both types of contracts are binding and are typically settled for cash for the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well. (For a more in-depth introduction to futures, see Futures Fundamentals.) 

Note that you'll see the terms: FX, forex, foreign-exchange market and currency market. These terms are synonymous and all refer to the forex market.


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PipPhenes Information!, [30.11.16 19:23]
[Forwarded from PipPhenes Inc.® Paid Signal Service]
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****More on our TW partnership:

Here are the direct quotes from TradersWay:

On any deposit of $500 or more we will cover half of the deposit fee. They must email us here at sales.en@tradersway.com with their account number and how much they deposited and we will credit it thereafter in approximately one business day. We won't respond to the email but will acknowledge it by making the adjustment.

Regarding the 150% - it will be effective possibly tomorrow after our IT handles it. We'll inform you. Clients will be able to select 150% from the bonus drop down list, so they need not send us any emails requesting a deposit bonus at all.

We will be getting all members the option of doing 150% bonuses contingent on no funny business from them. FYI if you are not with them and want to be please let us know or find our instructions in this chat.

Https://www.tradersway.com/?ib=1143355

OR email sales.en@tradersway.com
IB=1143355

We have talked over our concerns and we have been assured you will be A-Booked only.

Everyone of our members can get these benefits.

So sign up under our IB code or email them the IB code.

If you have TW already you will want to get in under us.
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PipPhenes Information!, [30.11.16 19:23]
[Forwarded from PipPhenes Inc.® Paid Signal Service]
Note we do not recomend bonus' PERIOD... But thats your decision to make. WE just got asked what the catch is... Why would TW offer deals??? Because they want your business... They want the little bit of commisions they get from you... Obviously, they run a business... Just like the rest of them...

you do not have to switch... Just dont message us that stops have been hit if they have not for TW...
Dont message us when you get stop hunted because your B-Booked and your broker wants to rob you...

http://www.investopedia.com/terms/s/stophunting.asp?lgl=no-infinite

http://www.abundancetradinggroup.com/what-is-a-book-vs-b-book-in-forex-trading/

^^ Please take a moment to read these... EDUCATION! This is reall stuff... Your brokers force you to lose.

PipPhenes Information!, [30.11.16 19:23]
PipPhenesSupport:

Hey welcome to our services!
We can be contacted right here anytime!

We also want to go over some guidelines for you to follow.

#1 We want you to feel comfortable asking us anything, anytime!

#2 We want to make sure you are using a good brokerage. If you get this wrong you will never profit. We highly recommend Tradersway because of their low spreads, honesty and well we've been profiting with them for almost 10 years.
Here's our link to them, this link puts you in our TW group offering you 150% bonuses and no deposit fees. tradersway.com/?ib=1143355
*We also like XM and FXchoice

#3 risk management one of the most important aspects of trading. We need you to follow these if you want any success in Forex Trading.
The rule is 1% of your account. So for example if you have $500 trading account the max lot size you should ever use is 0.05, we would recommend .03

Examples:
$600 = .06 or less
$900 = .09 or less
$1100 = .10 or less
$1200 = .10 or less
$1500 = .13 or less
$2500 = .20 or less

We recommend going even smaller for your first few weeks.

#4 make sure you have an ECN.MT4 account. Making sure you have a MT4 account and use it to trade makes sure your broker isn't messing with your charts.

#5 don't EVER close trades in negative let them hit SL, you can also take the trades within 24hrs of posting them. We need you to try and take all of the trades.

#6 Learn while you earn. Ask us questions, get our book or course. Google around and watch YouTube videos. Don't think you have mastered anything because the markets are always changing.

We have the best team in the game and now you are apart of it! Welcome to Team PipPhenes we hope to earn your loyalty with the rest of our members.

Important* PLEASE SEND US THE EMAIL ADDRESS YOU PAID WITH/USED ON THE WEBSITE!

THANK YOU!

please always feel free to give us suggestion.

PipPhenes Information!, [30.11.16 23:12]
DD: =

Draw Down.

Ex. When a trade goes against you for awhile before turning around (planned)

PipPhenes Information!, [09.12.16 21:31]
Alot of misinformation floating around so we want to kindof clear things up a bit...

Due to regulations starting to take place in this industry on brokerages you may no longer be able to trade Forex in about 6mo-8mo... You will need $50,000 and 25:1 will be the largest leverage you can use. Binary options may end.

This will be a massive change in this industry. We will be working to build a structure where we will still be able to do what we do. This will cost us a few hundred thousand dollars... We will be able to put everyone in one account essentially a PAMM account... This takes licensing and connections...

So there are six months left to really make some money trading like this!
join the group... 2017 will be the start of the most amazing experience you will ever have with us.. We will be doing 10X what we are now to ensure profits...

LOOK TO GET SOME EDUCATION SO YOU DO NOT HAVE TO RELY ON ANYONE ELSE!
We have some on the site...

YOUR opportunities WILL BE GONE!
You will need $50k-$100k to effectively trade FOREX...

Luckily your with us!!!!

PipPhenes Information!, [09.12.16 21:32]
support@pipphenes.com if you need to contact us!

PipPhenes Information!, [19.12.16 18:52]
Quick reminder, we will not issue refunds on autopayments... You can message us to turn them off or preferably log into your account and turn them off... If you paied with paypal you can also turn auto renew off in paypal.

Thanks,

-PipPhenes Team

 

https://telegram.me/pipphenesinfo