Price Movements

Trading Forex is exciting business. The market is always on the
 move, and every
tiny shift in currency rates can mean profits and losses of hundreds and even
thousands of dollars!
Let’s demonstrate how that can happen:
In general, the eight most traded currencies on the Forex market are:
USD U.S. Dollar
EUR Euro
GBP British Pound
JPY Japanese Yen
CAD Canadian Dollar
CHF Swiss Franc
NZD New Zealand Dollar
AUD Australian Dollar
Forex trading is always done in pairs, since any trade involves the simultaneous
buying of a currency and selling of another currency. The trading revolves around
18 main currency pairs. These pairs are:
USD/CAD EUR/JPY
EUR/USD EUR/CHF
USD/CHF EUR/GBP
GBP/USD AUD/CAD
NZD/USD GBP/CHF
AUD/USD GBP/JPY
USD/JPY CHF/JPY
EUR/CAD AUD/JPY
EUR/AUD AUD/NZD
When buying or selling a currency pair, each pair has its own Bid/Ask rate, for
example:
Pair Bid Ask
EUR/USD 1.5420 1.5422

Money Management

Is there a secret to becoming a successful trader?
There is a method that all successful traders use, and it’s no secret. It’s called
money management.
Money management is not some vague industry lingo – it simply means the
knowledge and skill of managing your Forex trading account. As simple as that
may seem, it’s the key to a long and successful trading career. And yet it is often
forgotten or neglected in the thrill of the trade. We’d like to take this opportunity
to lay out some ground rules by which you can effectively manage your account.
Don’t go looking for the Big Win; it will most likely result in a big loss. Successful
trading means consistent trading, where small wins amount to large long term
profits. Never assume that all your trades will be profitable, and plan on losses.
You should only risk a small percentage of your total account balance on each
trade. This simply minimizes your risk, so that even if you end up losing your
entire investment on a trade, it doesn’t have a critical effect on your account
balance. The recommended amount is 2% of your account balance per trade.
More aggressive traders go as high as 5%, but never higher than that. It is a very
important rule to keep, since the lower your account balance drops, the harder it
is to rebuild it.
Using Limit Orders
Learn to use the Stop Loss and Take Profit orders effectively. These orders protect
your investment and realize your profits. They are very simple tools that can make
all the difference to your account balance.
Size of Trades
You are suggested to open small trades, because in the case of a losing trade, you
can then open the opposite trade with a bigger investment or higher leverage,
thus compensating for losses.
Practice with Virtual Money
Use virtual money mode for practice. One of the unique features of eToro is that
our platform provides you with a practice environment. Virtual money mode
works exactly the same as real trading mode and uses the same real time rates,
with the small difference of no risk involved. We recommend using the practice
mode to get to know the platform and gain Forex trading experience.
And even after you’ve begun trading with real money, it is the perfect place to try

Basic Forex Trading Why Forex?

Why Forex?

If you are reading this guide, you have most likely taken some sort of interest in
the Forex market. But what does the Forex market have to offer you?
Accessibility – It’s no wonder that the Forex market has the trading
volume of 3 trillion a day - all anyone needs to take part in the action is a
computer with an internet connection.
24 Hour Market - The Forex market is open 24 hours a day, so that you can
be right there trading whenever you hear a financial scoop. No need to
bite your fingernails waiting for the opening bell.
Narrow Focus – Unlike the stock market, a smaller market with tens of
thousands of stocks to choose from, the Forex market revolves around
more or less eight major currencies. A narrow choice means no rooms for
confusion, so even though the market is huge, it’s quite easy to get a clear
picture of what’s happening.
Liquidity - The foreign exchange market is the largest financial market in
the world with a daily turnover of just over $3 trillion! Now apart from
being a really cool statistic, the sheer massive scope of the Forex market is
also one of its biggest advantages. The enormous volume of daily trades
makes it the most liquid market in the world, which basically means that
under normal market conditions you can buy and sell currency as you
please. You can never be in a jam for currency to buy or stuck with
currency that you can’t unload.
The Market Can’t Be Cornered - The colossal size of the Forex market also
makes sure that no one can corner the market. Even banks don’t have
enough pull to really control the market for a long period of time, which
makes it a great place for the little guy to make a move.
Click here to open a free eToro Practice account and join the Forex
market today!

what is robot

A forex robot is a piece of software that will automatically handle the currency trading process for you, it enters and exits trades with the goal of making a profit. A lot of traders eventually switch to a piece of software like this because they are tired of entering in all these trades manually. When you’re trading manually you have to spend a lot of time each day keeping up with the market, and you have to spend a huge amount of time staying current with the trades you have active. A Forex robot can take the pain out of this process for you, eliminating the need to enter this information manually.
The majority of Forex robots will only come prepackaged with one specific way to trade. They only have one set of rules they follow, no matter what the market conditions could be, they’re built to trade strictly currency pair. Because the market is constantly changing hour by hour this can be a big problem, as each currency pair will need to be treated differently. This is why the very best Forex robot is quite different from the others, Forex experts are constantly updating the software, these people monitor the market 24 hours a day.

Introduction

Retail participation in
off-exchange foreign currency
(forex) markets has
increased dramatically in
the past few years. If you
are a retail investor considering
participating in this
market, you need to fully
understand the market and
some of its unique features.
Like many other investments,
off-exchange foreign currency
trading carries a high level of
risk and may not be suitable for
all investors. In fact, you could
lose all of your initial investment
and may be liable for additional
losses. Therefore, you need to
understand the risks associated
with this product.
You should also understand
the language of the forex markets
before trading in those markets.
The glossary in the back of this
booklet defines some of the most
commonly used terms.