Currency trading tips and tricks by forex experts

Currency market is traded basically in two contracts that is Spot Contract and Forward Contract. There are basically two markets one is currency market and the other one is Euro-Currency market. If we talk about the location of this particular market there is no physical existence of these exchanges. They are being operated in Central Banks, International Banks, and Large Banks and in their dealing rooms. The trade is executed through telephones and other modes of communications.

The currencies are traded in pairs and the trading depends entirely on the spread between the pairs. In a currency pair there is a base currency and the other one is known as secondary currency. Spread is the difference of price between the buying of currencies and selling price at the particular contract. The spread between the pairs can be tight and large which increases the investment to be made by the trader to cover the cost of buying and selling. Example: The spread between USD/EUR is tighter in comparison to USD/THB.

Forex market is open all through the day, whereas currency market is completed   by three trading sessions. They are Asian Session, European Session and U.S Session. Different currency pairs are active in different sessions of the currency market. The market is started with Asian Session, which is followed by the European Session which is in London and then the last session which opens in New York which is known as U.S Session. The currency pairs which are most commonly traded are USDINR, JPYINR, GBPINR & EURINR, GBPINR & EURINR. EURUSD,GBPUSD,EURJPY,GBPJPY,USDJPY .

Currency Tips have a set expiry date, time and also the amount of the currency to be traded. These standards are set by the Chicago Mercantile Exchange for trading. The expiry dates are set in the month of March, June, September and December.

Along with Currency market traders are also getting involved in Forex market, which is also known as Foreign Exchange Market. This market is gaining prominence due to following key points,

·        High liquidity due to the high trading volume.

·        Its geographical dispersion.

·        Its open all through the week and also all round the day.

·        Low margin required as compared to other markets.

·        Exchange rate is affected by variety of factors.

Currency market is more over much affected by natural calamities, economic boom, political interventions. The news related to economy, politics or any other natural issues which can render any change in the currency can adversely affect the currency market. This may change the fate of a trader in minutes. However, similar to other markets currency market is also full of risk and can register heavy movement within the trading sessions. The traders can take the help of experts in the field for the same. Currency is traded by individuals, retail investors, financial institutions, cooperates etc for individual gains and international business purposes. Trading should be properly planned out while trading on currency tips encountering the heavy movements and volatility and risk involved in the market.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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