Monday, December 29, 2008

Trading Forex Using A Swing Trading Strategy

The Forex, or Foreign Exchange market is now the absolutely hottest thing on the trading and speculating scene. Just in sheer volume, the international trading market is about 5,000 times bigger than the total stocks, options, futures and bonds markets in the USA. It functions 24 hours a day, is very volatile, and is as thrilling as options trading

Forex trading involves the trading of currency pairs (e.g. GBP/USD) for almost all major currencies in the world. The most liquid and heavily traded pairs are:
EUR/USD : Euro and United States dollar
USD/JPY: United States dollar and Japanese yen
USD/CHF: United States dollar and Swiss franc
GBP/USD: Great British pound and United States dollar
AUD/USD: Australian dollar and United States dollar
USD/CAD: United States dollar and Canadian dollar
The first currency in the pair is the BASE currency; the second is called the QUOTE currency. So you may see a quote as follows:
GBP/USD = 1.9603
This means that you can buy 1 GBP (Base) for 1.9603 USD.


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