Tag Archives: Learn Forex Trading

Instant Forex Profits

Instant Forex Profits is a high quality forex trading course offered by Kishore M an ex Hedge Fund Manager. In the following Instant Forex Profits review, you will see what is included in the Instant Forex Profits course, what is Instant FX system and the user reviews and ratings.

Instant Forex Profits Review :
Instant Forex Profits course is a complete forex training course designed to make you an expert trader. Please note that iFxProfits in not an automated forex trading robot like Forex BulletProof.
The course is jam packed with information from beginner’s tutorials to advanced currency trading strategies. The Instant FX Profits from Kishore M is the only foreign exchange trading course that is certified by a tertiary instituition (Metropolitan Business School, UK).

Watch iFxProfits Videos   |   Join Instant Fx Profits Course

Watch the videos to see the creator behind iFx Profits course talking on Bloomberg, BBC, Channel News Asia etc.

Limit Order in Forex

When you learn forex trading you might have come across the terms stop/loss and limit order. What are they and how they benefit for you to make money from trading?
limit-orderLimit order and Stop/Loss are conditional orders. We call these conditional orders because they will not come into effect unless certain conditions are met. There are two types of conditional order that you can place while trading forex. They are the stop loss (which is also known as stop/loss) and the limit order.

The Stop/Loss
The stop loss is a familiar order that controls the risk involved in a trade. With a stop loss, you are giving instructions to the broker, “If the price goes this far against me, I want out.” So if you have bought a currency pair expecting an increase in price, but then the price falls, your whole account balance will not get wiped out. The stop loss will be triggered when the loss reached at certain level according to your settings and protect the majority of your funds.

A Limit Order
A limit order is similar but applies to the opposite situation, the condition where you have a winning trade. With a limit order, you are instructing the broker, “If the price reaches this level, that’s enough, I’ll close there and take it.” Once set, the limit order will be activated if your pre arranged price (desired profit level) is reached and the trade will be closed at that price.

Many new forex traders are reluctant to use limit orders when they first start out. For them limit order seems counter intuitive. After all if the market is going your way, why would you want to close the trade? Wouldn’t you want to hold on as long as possible to get the most profit out of it? This is a serious mistake committed by many new traders.
The trouble with that approach is that sooner or later the price will reverse, and often it does it sooner rather than later. If you do not place a limit order, when will you close the trade? How will you know when it has gone as far as it is going? If you wait too long, a sudden reversal could see all of your profits wiped out.

So unless you have a system that is set up with very precise criteria to tell you when to close a trade, you will probably be better off if you use limit orders.

And where do you set them? Back testing your system can be helpful here. You can check through the last months and years of markets that would trigger a trade under your system and figure out what would have been the optimal setting for the limit order. However remember that past results are not necessarily going to be repeated in the future. Testing your limit order settings in a forex demo account is also useful.

In most cases you will want the limit order to be further from your starting point than your stop loss, even after spread is taken into account. This will mean that you only have to score a 50% success rate to be in profit. Setting the limit order at twice the pips of the stop loss, either before or after spread, might be appropriate. However, this depends on your system. Don’t skip the testing.

Using limit orders has another valuable benefit too. Once you have both stop loss and limit order in place, you can walk away from the computer and get on with your day. Though you won’t get the kind of freedom you can achieve through automated forex trading robots, with limit order and stop/loss in place there is no need to watch every little fluctuation of price until one or the other is triggered. This reduces stress and makes it less likely that you will panic and deviate from your original plan. So using limit orders in forex trades makes for a happier, more profitable trader.
For complete hands-free forex trading I suggest you to get a good automated forex robot like Forex Auto-Pilot Turbo (See FAP Turbo Review) or Forex Megadroid.

Automated Currency Trading Software

Gone are the days where you will have to sit in front of the monitor and make frequent telephone calls to do the currency trading. With the help of automated currency trading software any currency trader can make the most of their investments from the lucrative forex market. The foreign exchange market is now bigger and more liquid than all stock markets in the world added together. Utilizing automated forex software tools can help you make the most of this enormous opportunity with ease.

Now before you experienced traders argue that automated forex trading doesn’t work and manual trading is the only way to go, I do agree that manual trading has its advantages. In fact I would advice everyone who is new to forex to learn how to trade manually so that you know the forex market and the basics of currency trading. Similar to all speculative forms of investments, currency trading is risky and the more you learn about it, the better you will be prepared to overcome the risks. Shielding your funds with risk management is one of the most essential skills that you can have as a forex trader. When you trade manually you will learn to manage your risk and learn how to handle the funds. Of course you don’t have to spend your hard earned money for this; since you can learn manual trading from a demo account, which is provide by most forex brokers now.

Advantages of Automatic Currency Trading
Automated forex trading has its advantages when compared to manual trading. However successful you may be in the forex market as a manual trader, you cannot expect to observe several currency pairs simultaneously and never miss few excellent trading opportunities. This is where automated forex trading software can help where the software keeps track of the market and do the trades automatically whenever there is good trading opportunity.

The software as you can imagine, cannot make speculations like the human brain. Instead the automated currency trading software will work according to the set instructions given by you. This is actually an advantage since forex software is not affected by human emotions like fear and greed. Once you setup the forex software it will keep working round the clock identifying trends and trading on behalf of you. This way you can automate your successful manual trading system and work more efficiently.
You can utilize the free forex platform Metatrader 4 and set this up. However you either need software knowledge or have to hire a programmer who can create automated currency trading software according to your needs. If you are an expert trader I would suggest you to go this route since investing some cash to create an automated trading system will increase return and save time.

Nevertheless, if you are just a beginner at forex trading you might not want to invest lot of money for developing custom forex software. Instead you can buy forex robots like FAP Turbo which are readily available in the market. While these software programs may not match completely to your existing trading system, you adjust the various setting including stop-loss to setup the software according to your requirements.

Use the automatic currency trading software to trade with ease to make big profits

Interbank Currency Trading

What is meant by interbank currency trading?

If you go through forex discussion forums you might come across people using the term interbank to include any person who is occupied in forex trading including sellers and buyers. You migh also come across this term on a forex brokers website like Dukascopy. Naturally you might think that interbank currency trading is another term used for retail currency trading which is not true. Let’s see how interbank currency trading differs from retail forex trading.

In the beginning there were only banks and large financial institutions in forex market. These major financial institutions were exchanging different international currencies between each other as part of trading. This was done through dealing desk from which each would be in touch with the other banks around the globe. These banks would quote each other the rates at which they would be prepared to trade one currency for another currency and would strike the deal as soon they agree on the prices. These trades were happening between major financial institutions like insurance firms, mutual fund companies and mainly between banks. Hence these currency exchanges were called interbank currency trading.

Today the forex market is not entirely controlled by Banks though they are still the major players in the market. Speculative trading became possible in forex market during the 1970’s when exchange rates of most of the key currencies were almost fixed. During those days the trading was done by telephone almost exclusively. The major financial institutions like banks started utilizing the service of full time currency traders to raise their profits by speculating on the rise and fall of forex currency rates. During the late 1990s internet started gaining high popularity and today internet is the main medium of trading. These days just about anyone who got a personal computer can become a forex trader since almost all the developed and developing countries provide a high speed internet connection. But, a retail trader like you and me do not have the capability to set up our own dealing desk and communicate directly with the banks or currency traders around the world. This where forex brokers come in, since we need an intermediary to get involved in trading with others.

How Forex Brokers Work
Forex brokers let the small retail traders like us to open accounts with them as clients and then negotiate with the interbank forex trading market on our behalf. These brokers normally have an agreement with one of the banks to use their dealing desk to get involved in forex market. This gives the forex brokers the capability to accept smaller fund balances and hence many will let you open mini forex accounts. However this can result higher costs like a higher spread or you may come across bucket shops forex brokers who will manipulate the prices make sure that they are getting some profits on top of the bank’s spread involved. Large brokers who are directly part of the forex market usually have their own dealing desk. However these brokers are less likely to offer mini forex accounts and you mostly will be trading standard lots, which means you should have hefty sum in your account.
Now that you know about interbank currency trading why not take some action and make real money. You can either go with a manual trading system like 10 minute forex wealth builder or get an automated forex software like FAP turbo to make money with currency trading.

What is Forex Trading?

Everything concerning money has a pretty complex nomenclature; and Forex is no exception. Anyone who has tried Forex trading would know that there are lots of puzzling terms out there, and that is one major deterrent for normal people to get into forex trading. But don’t worry about all those complicated terms. In fact if you know the definition and meanings of forex terms it is pretty easy. Let’s see some of the most often used terms in forex trading and their definitions.

  • Forex – Foreign Exchange
  • Ask – Used instead of ‘offer’ – the price which you are willing to offer for buying
  • Pip – The slightest increase in currency amounts – like $ 1.1916 to $ 1.1917. While trading in large quantities, pips are what traders count
  • Spread – The margin in which you are willing to buy. This is usually between two amounts – example 1.30 – 1.35
  • Cost of Carry – The amount charged to hold currency for a specific period of time
  • Futures – Similar to futures trade in stock market, speculation price over futures contract
  • Leverage – The amount of exposure the trader is willing to give the customer
  • Limit – The amount at which the buy / sell is set to happen. Normally customers set buy prices at lower than market price, and selling price slightly higher
  • Stop – or stop loss. The price which a trader can set in advance at which the Forex is automatically
  • Sold – usually set to reduce loss in volatile markets
  • Market Order – A buy order to be executed at current market price
  • Trading Terminology – Like stocks have their own codes on the stock market, Forex also has trading terms that are common internationally. Like ‘Cable’ used for a trade between UK Pound and US Dollar

These are some of the common terms related to Forex. You will pick up the rest of the forex vocabulary while trading. However always remember to start small, learn the ropes, develop a strategy and then go ahead full steam.