Forex Education

With the rise of internet trading, many companies have begun offering courses in trading on forex. Some even offer courses for free, under the condition that you open an account with their company upon completion. In many such cases, the student is almost being set up to lose. Armed with only the bare minimum knowledge of forex and a live account, many will find themselves without the foundation of knowledge needed to trade successfully.
This begs the question: What separates a true forex trading education from having a minimal amount of knowledge to simply open an account and lose money? As any honest forex trader will tell you, trading on forex can be very profitable, but it takes quite a bit of knowledge.
At Euforex, we have something for everyone. Whether you are looking to start your trading career or take a successful hobby to the next level, we can help. Our introductory forex education classes provide a solid foundation on the nature of markets, the principles of risk management and an introduction to both technical and fundamental analysis. You will also learn crucial trading strategies, such as how to let your winners run and cut your losers off quickly, how to use Stop Loss and Take Profit orders effectively and much more. Build a strong foundation and the rest will follow.
Already been trading for a while and don’t need to be told what a pip is? Many forex education programs ignore the more experienced traders, directing all resources towards bringing in newcomers. We understand that, for many traders, the difference between up and down results and consistent earnings is in the details of more advanced analysis. More veteran traders will find our advanced courses profitable as they can go deeper into the nuances of various technical technical analysis systems or programming with MQL 4. Let our experts help you fine tune your trading.
Ultimately, we believe that a forex education should be just that - an education - and not just an instruction manual on how to get started.

Swap Transactions

A currency swap is where a contract is agreed to exchange currencies at a rate at the 'near' date and then exchange them in the other direction at the 'far' date at a different exchange rate. The difference between the exchange rates is principally determined by exchange rate differentials. Currency swaps make up about 60% of turnover in forex markets.

Spot Transactions

A spot contract is an agreement to exchange one currency for another currency at an agreed exchange rate and usually settles within 2 business days. There are some exceptions to this rule such as the Canadian Dollar which settles the next day. Spot transactions make up about 30% of forex market turnover.

Margin Trading

Private investors usually trade the forex markets on margin. This means that they lodge an initial deposit to their FX broker usually between 2% and 5% of the amount they wish to trade. If the investor's position starts to lose money the FX broker would normally 'margin' the client which is a request for more funds to cover the unrealised loss on the forex position.
Trading on margin allows the investors to have a much larger exposure to the forex market than would be possible if the investor needed to have the full face value of the amount to be traded. This brings greatly increase risks of significant losses but also makes possible significant profits.

Forex Trading

The forex trader's goal is to profit from moves in the exchange rate between two currencies. Exchange rates move up and down from minute to minute as buyers and sellers exert their influence over the market.
There are as many different exchange rates as there are combinations of pairs of different currencies, however the majority of trading occurs in the following currencies; Japanese Yen, US Dollar, Euro, British Pound, Australian Dollar and Canadian Dollar. These currencies have significant market depth (liquidity) which ensures very small bid/offer spreads and constant price discovery.
Private investors gain access to forex markets by trading on a leveraged basis on either the spot market or the futures market. The futures market has been overtaken in popularity by brokers offering leveraged foreign exchange via online dealing platforms that offer 24 hour access and very tight spreads.

Forex Trading & Exchange Rates

The foreign exchange market is a massive global market where trillions of dollars are traded on a daily basis. The market is primarily conducted directly between counterparties rather than through a central clearing house. The market is made up of a wide variety of participants.
The market makers, or liquidity providers, are generally banks. The end users include; currency speculators, companies involved in import/export, fund managers with international portfolios and central banks. The market consists of a variety of 'instruments' or contracts but the big four are the 'spot' market, the 'forward' market, the 'swap' market and the 'currency options' market. The spot market is by far the most accessible and popular for private investors.