Forex Trading Advice » Pip

Three Trading Platforms At Forex Place

ForexEd — Sun, 07 Mar 2010 12:50:45 +0000

Leading Forex trading company, Forex Place utilises the award-winning Meta Trader 4 to bring you commission-free, tight pip-spreads as well as online real-time market prices from across the globe but unlike other Forex trading companies, there are Three Trading Platforms At Forex Place. There’s a platform for PC’s, one for Windows Mobile PDA’s and another for other PDA’s and smart phones.

With the Meta Trader 4 platform being available for mobile devices as well as your PC or laptop you can now trade from anywhere with a mobile connection, allowing you to stay in control of your investments no matter where you are.

Meta Trader 4 for PC:
The multi-award winning trading platform found at Forex Place offers you trading advice and experience, charting and analysis tools, technical indicators and automated online trading from your laptop or your home or office PC.

Meta Trader 4 for Pocket PC:
This great mobile Forex trading platform can be installed on most Windows Mobile devices, giving you access to your Forex Place account and allowing you to trade from just about anywhere.

Meta Trader 4 for smart phones:
This particular version of 4XP’s great trading platform has been designed to operate on most mobile phones and PDA’s, offering you many of the great features found in the PC version.

Due to the strong relationships the Forex Place has with the world’s leading banks you will find some of the very best Forex prices anywhere on the internet but don’t take our word for it, visit www.4xp.com to open a new Forex trading account and start trading from your laptop, PC even on the move with your mobile phone or PDA.

Forex Scalping strategy introduction

admin — Wed, 27 May 2009 16:08:11 +0000

Forex Scalping is a strategy used by trader where they enter the market in a short time, under two minutes. The purpase of this strategy is to make small profit with very limited risk. They can profit from 2-3 pip move.

Scalpers use all sorts of platforms to scalp currencies. One of the most common is MetaTrader 4 (MT4). Many scalpers create forex robots or trading algorithms that are fully or partially automated, increasing execution efficiency and available trading opportunities.

Here are some strategy on forex scalping:

The only way to make small account big in a short period is by using high leverage. Start with 20:1 or at most 50:1 leverage. The more skill you have, you can move to higher leverage.

Minimize your risk by trading with a tight stop loss.

Trade on liquid market and active session, which is when the Japan market start, close, and when the US market start.

Forex basic

admin — Sun, 17 May 2009 09:38:32 +0000

The word FOREX is derived from Foreign Exchange and it is the largest financial market in the world. Unlike other markets the Forex market is open 24 hours a day.

It is estimated that anywhere around 80% of the Forex market is speculative. People don’t buy or sell currency to actually taking delivery of the currency. Instead they are speculating on the movement of the currency.

The most traded currency is the US Dollar, followed by Euro (EUR), Japanese Yen (JPY), Pound Sterling (GBP) and Swiss Franc(CHF). Currencies are traded in pairs and the rate at which they are exchanged is called the exchange rate. The exchange rate will consist of two numbers. The first number is called the bid and the second number is called the offer (or ASK). For example for EUR/USD you might see 0.9850/0.9853. The first number is the bid price, the price where people willing to buy the currency. The second number is the offer price, the price where people are willing to sell the currency. If you want to buy at 0.9850, you must want for people willing to sell at that price. But if you want to buy instantly you can buy at 0.9853, where there are people willing to sell.

You will also notice that there is a difference between the bid and the offer price and that is called the spread. For major currency, the spread will be lower. It is normal to see the USD / JPY to have 2 spread, and USD / EUR to have 3 spread.

The increment of currencies is calleed PIP. If the EUR/USD moves from 0.9850 to 0.9851 that is one Pip. A pip is the last decimal place of a quotation.

Forex is traditionally traded in lots also referred to as contracts. The standard size for a lot is $100,000. In the last few years a mini lot size has been introduced of $10,000 and this again may change in the years to come.

To control large amount of money, you can use leverage, or financing your account with credit. You can use margin for this. The loan in the margined account is collateralized by your initial margin (deposit), if the value of the trade drops sufficiently, the broker will ask you to put in more cash, or sell your position to increase your cash. By using leverage, you could control $100,000 with only $1,000.

Leverage the two headed sword

admin — Thu, 14 May 2009 16:47:32 +0000

Leverage can make you profit fast but also can make you loss quickly. Professional forex trader, always know how to manage leverage. You shouldn’t take high leverage in your trading. If you are wrong, then the game will be over. Leverage will affect your result the minute you enter your position. Because of the spread (bid and ask level difference), you might instantly loss 6% if you are highly leveraged. If one pip worth 2%, the the 3 pip spread will cause you to loss 6% from the beginning of the trade.

In eToro that I’m using, you can set the risk level you are willing to take. The more risk you are taking, the more leveraged you are. In eToro, I use the “X100” risk level.

And here is today’s trading result:

Today I can gain around 6%, which is very good. If you multiple this with 22 days. You will have 132% per month. Well I’m quite happy with 50% profit per month. Happy trading guys.

Using forex mini account

admin — Sun, 05 Apr 2009 14:04:11 +0000

Many people around the world is looking for entering the world of Forex trading because of its very high profitability
potential. But many of them also worry that they will lose their money. They want to start small. There is now Mini Account for people who want to start small. Although you start small, you can win big, you just need a few dollars and the right strategy to profit from Forex trading.

Mini Account uses a different leverage calculation than a regular (100k) account. Instead of trading full-size currency lots (100,000 units), you’ll trade in lots that are just 1/10 the size (10,000 currency units), which in turn greatly reduces the amount of money you risk in each trade you enter.

The characteristics of a Forex Mini Account are as follow:

Minimum required account deposit = $300
Recommended required account deposit = $2,000
Traded in 10,000-unit currency lots. There is no maximum trading volume on the Mini trading platform.
Pips in a Mini Account are worth, on average, $1. Pip is the smallest increment that a currency pair can move. For most currency pairs, a pip is a change in the fourth decimal place of the currency quote. For example, if EUR/USD is quoted at 1.6567 and it moves to 1.6568, it has increased by 1 pip. The value of 1 pip is calculated by the size of the lot that is traded. So, if you buy a standard lot of 100,000 EUR/USD at 1.6567 and it goes to 1.6568, a 1-pip move, then the value of your trade has increased by $10 (or 100,000 x 0.0001). Because Mini Account have smaller contract, the pip value is also smaller that is $1.
The Mini Forex account offers up to a huge 200:1 leverage, this means that just a $50 margin deposit will allow you to trade lots worth roughly $10,000.
Default Margin: set at 0.5% ($50 per mini-lot)

There is no downside to trading a Forex mini account, you will be enjoying all the benefits that full-size FX account holders enjoy. This mini accounts are ideal for a beginner forex trader to gain experience.

Beware, trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.