Forex in simple words refers to the exchange of foreign currencies. It is the largest financial market in the world. The average traded value on per day basis in forex is 1.9 trillion dollars. The world's currencies are on a floating exchange rate that contributes to the profits and losses in forex. It is always traded in pairs like Euro/Dollar or Dollar/Yen.

Unlike other trading options, it is not centralized on an exchange. The forex trading is carried out over the counter or Interbank market. The simple reason being, the transactions are to be carried out between two people over electronic network or telephone.

Being one of the biggest financial markets, forex involves participation from investment banks, commercial and central banks. But over the past few years, people like following have also started to participate in this investment domain:

• international money managers
• brokers
• multinational corporations
• registered dealers & options
• futures traders
• private investors.

It is a 24 hour market, it remains open on all 5 working days of the week. The trading day follows the following geographical cycle.

• Sydney
• Tokyo
• London
• New York

The forex market receives great response for any fluctuations caused due to the social, economic and current political events. The market is highly dynamic and it starts from Sunday 5pm (EST) and runs till Friday 4pm(EST). It is only closed for Saturdays.

Commonly traded currencies

Forex is nothing but exchange of foreign currencies and it completely depends on the countries with stable governments and low inflation rates. Some of the most commonly traded currencies on forex include:

• the U.S. Dollar (USD),
• Japanese Yen (JPY),
• Euro (EUR),
• British Pound (GBP),
• Swiss Franc (CHF),
• Canadian Dollar (CAD,
• Australian Dollar (AUD)
• and the New Zealand Dollar (NZD).

Margin To collateralize a particular position, the amount of equity that an investor must deposit is generally referred to as Margin.

Leverage It is one of the main attractions of forex trading. It simply refers to the fact that you are not required to put up full value for that particular position. The main advantage that one gets in forex for leverage is that you can have an amount of leverage that is 200 times the value of your account. Using the leverage, you can get higher returns on a very small dynamism in the market. But one should be very careful higher leverage refers to increased risks.

Margin calls: If the equity balance crashes below the margin for that size account then a margin call is said to be generated. At this point you will be asked to sell some of your assets or deposit additional money.

Bid/ask Spread: refers to the bid and offer price difference.

Long Positions & short Positions in Forex

Long position in the forex market is the one in which the trader buys a currency and aims to sell it at higher value some time later. So, in the long position the trader benefits from a rise in the market. Unlike Long position, in short position the trader benefits from the decline in market. By this we mean that the trader buys a currency and aims to sell it when the value of that currency depreciates. Another important facet to it all is that a trader needs to go in for long position in one currency and short for another currency.

Difference between Intraday & Overnight Position

Intraday Positions: Any position that remains opened at any time after the normal trading hours at 5:00pm EST during the 24 hour period is called Intraday position.
Overnight Positions: The positions that remain opened at the end of usual trading hours that is 5:00pm EST and get automatically rolled over are generally referred to as Overnight Positions.
Managing Risk Factor:
The basic tools that can be used in forex trading to lessen the risk factor are as follows:

• Stop-loss order: It refers to the directive that a position is required to be liquidated automatically at a particular price to guard against the risks of dynamic changes in the position.
• Limit Order: It refers to setting the minimum amount to be received in exchange and maximum price that is expected to be paid in the transaction.

In FOREX, the trading is usually affected by the following factors:

Economic Factors:

• government issued reports,
• current news,
• and broad economic trends
• Unexpected Events

• Trend lines,
• Support and
• Resistance levels,
• Variety of charts and mathematical analysis

Following is the criteria to help you determine on how long to hold a position:

• If a certain amount of satisfactory profit has been realized.
• If a pre-set stop-loss order has been activated.
• If a better position emerges that ensures more profitability.

No. Unlike the securities market, there is no central, geographic location such as the New York Stock Exchange (NYSE) where transactions are bid and cleared. As a result, foreign exchange trading requires the use of state-of-the-art technology to allow its investors to communicate instantly. Currency rates are influenced by supply and demand, making the foreign exchange market highly liquid. Average foreign exchange trading volume exceeds $1.5 trillion daily.

NetVest cannot guarantee profits or ensure against losses, but we will introduce you to quality management firms. Some of our clients prefer a more aggressive treatment which comes with a higher potential for gain or loss, while others are more conservative. We are able to accommodate either preference. Consult with your Account Executive to determine your personal objectives and disposition with your account.

Historically, the securities markets have been looked at as the primary means as an investment vehicle. In the last ten years securities have taken on a more speculative nature. This was perhaps due to the downfall of the overall stock market as many security issues experienced extreme volatility because of the "irrational exuberance" displayed in the marketplace. After three consecutive down years in the equities market, both institutional and individual investors abroad have sought haven in real estate, Treasury securities, corporate and municipal bonds and overseas equity markets. To an extent, investment in European and Japanese markets, has led to increase in demand for those respected currencies accentuating the volume of active participants within the currency market.

NetVest focus on the major currencies against the Dollar as well as the Euro, British Pound, Euro, Swiss Franc and Yen as well as the Canadian Dollar, New Zealand Dollar and the Australian Dollar. These currencies comprise nearly 75% of the liquidity of the entire market. In stark contrast, there are approximately 40,000 stocks listed on the NYSE and 2,800 are listed on the NASDAQ. Our traders focal point is dealing with the analysis of only the major currencies, permitting for continual and exclusive application with our trading methodology.

*Past performance is not indicative of future results. Forex trading involves substantial risk of loss and is not suitable for all investors. Leveraged trading magnifies profits and losses.

Choosing Forex Trading Platform:

While choosing a FOREX trading systems you should be well aware of the following facts:

• Credentials of the system
• Testimonials from the previous customers
• History of the system
• Trial version is available or not

While choosing a FOREX trading systems you should be well aware of the following facts
The credentials of the system
Testimonials from the previous customers
The history of the system
Whether a trial version is available or not
The right FOREX broker:

It takes a lifetime to earn money, and while trading, one must be very careful of how you manage your trading. If you are new to the FOREX market, be sure that you choose the right FOREX broker. Here are a few considerations while choosing the right FOREX

• Spread lower it is more money you make.
• Credentials
• Tools to learn more on the forex trading
• Leverage amount