Forex Knowledge Strategy | Increase Profit Forex Commodity Trading

Praise for FOREX CONQUERED "In this amazing book, John covers it all. From trading systems to money management to emotions, he explains easily how to pull money consistently from the most complicated financial market in the world. John packs more new, innovative information into this book than I have ever seen in a trading book before." —Rob Booker, independent currency trader "John Person is one of the few rare talents that are uniquely qualified to help traders understand the process of successful trading. With today's markets becoming increasingly challenging, John has cut right into the essentials and brought forward the much-needed tools of forex trading. This clear and well-organized publication is a major step forward in helping traders gain an edge. I would highly recommend Forex Conquered as a valuable handbook for both aspiring and experienced traders alike." —Sandy Jadeja, Chief Market Analyst and EditorLondon Stock Exchange, London, England "Forex Conquered is a bold title, but this book delivers the tools needed for successful forex trading. There is no fluff here, just the wisdom of a trading veteran that I have always respected-and followed." —Michael Kahn, Editor, Quick Takes Pro market letter and Columnist, Barron's Online "This is a wonderful, in-depth view into the explanation of technical analysis and prudent money management guidelines in the forex market." —Blake Morrow, President, 4XMadeEasy "Forex Conquered is a meaningful contribution to the growing number of books on forex trading. John Person provides a professional view of forex trading that readers will be able to use as a guide for strategies and tactics that work. The scope of the book covers more than forex and includes salient aspects of futures and option trading. It should be read and then re-read!" —Abe Cofnas, President, Learn4x.com Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file. From the Inside Flap If you intend on successfully trading in today's foreign exchange market, you need to be familiar with the strategies and systems that can help you capture consistent profits and effectively manage risk. Nobody knows this better than author John Person. With almost thirty years of experience in the trading business—as a broker, trader, and teacher of traders—Person understands what it takes to make it in this fast-paced environment, and with Forex Conquered, he wants to show you how. Whether you're a position trader, swing trader, or day trader, Forex Conquered can show you how to successfully navigate this dynamic market by using proven technical analysis techniques. Filled with in-depth insight, expert advice, and detailed examples, this book presents you with a comprehensive set of trading tools and reliable trading tactics that can be applied to everyday forex trading. And through discussions of different issues associated with trading the currency market, it also provides you with the knowledge needed to properly enter a position; identify a trade setup, trigger, or entry execution order; effectively place stops; and exit a trade without hesitation. Written with the serious trader in mind, Forex Conquered: * Examines what it takes to develop a trading system, how to evaluate it from a hypothetical standpoint, and apply it in real-world forex trading situations * Covers the fundamentals of candlestick charting and explains how to utilize them * Highlights the benefits that leading price indicators like Fibonacci price corrections, extensions, and projections analysis have to offer * Introduces Elliott wave theory and illustrates how to apply this method in the forex market * Outlines three effective trading systems based on pivot points—the stochastics system, the MACD histogram system, and the pivot point moving average system—that can be immediately implemented in your forex trading endeavors * Explores essential trade and risk management issues In addition to the valuable information found throughout these pages, this book's companion CD contains a Fibonacci calculator as well as a pivot point calculator, which can assist you in developing a trading plan without having to purchase extra software. Best of all, these calculators may give you an edge in determining longer-term price objectives, such as quarterly or annual price outlooks, which most software cannot do. The CD also includes six separate tutorials totaling more than 40 minutes of one-on-one instruction. You can achieve success in today's foreign exchange market, and Forex Conquered can show you how. This practical guide will help you make the most informed trading decisions possible and show you how to profit from one of the largest financial markets in the world.

Selective Forex Trading skillfully outlines author Don Snellgrove’s S90/Crossover: an independently verified technical indicator that has provided traders with the ability to achieve over 100 consecutive Forex trades without a single loss. Whether you’re a seasoned professional or just getting started, this approach—which is based on historical resistance and support points within a trading range—can assist you in entering and exiting positions for the greatest profits possible. From the Inside Flap During the early days of the foreign exchange market, banks and other large financial institutions were the primary players in this field. Today, thanks in part to advances in technology, this market has quickly grown into a global electronic network of banks, financial institutions, and individual traders. With a reported volume of over $1.8 trillion changing hands every day, the time to get involved in this exciting global market has never been better. So how can you capture significant profits from the Forex market? With this reliable resource, author Don Snellgrove—an active Forex trader and educator of traders—will show you how. Written in a straightforward and accessible style, Selective Forex Trading skillfully outlines the S90/Crossover©: an independently verified technical indicator developed by Snellgrove that has provided traders with the ability to achieve over 100 consecutive Forex trades without a single loss. Whether you're a seasoned professional or just getting started, this approach—which is based on historical resistance and support points within a trading range—can assist you in entering and exiting positions for the greatest profits possible. In order to clearly understand the methodology described throughout this book—which includes the S90/Crossover as well as several other applications—you need to determine trends, resistance, support, and confirming procedures through software that utilizes ROI, RC, RCU/D, and their extensions with cluster formations for possible reversal entries. A brief explanation of each of these subjects is provided when they are initially discussed. Beyond providing hands-on guidance into using the S90/Crossover and Extreme levels, Selective Forex Trading also features specific exercises for creating and maintaining a strong mental discipline. These proven strategies will help you stay focused and committed even during the most difficult of times. The S90/Crossover and Extreme levels of the market are not the only methodologies that will allow you to increase returns and control risk, but they may be the simplest and most reliable approaches to consistently trading the foreign exchange market. Filled with in-depth insights and practical advice, Selective Forex Trading will help you enter this dynamic market with confidence and exit with profits.

Forex Knowledge is what I say to explain all about Forex. This blog will give anything information about Forex such forex indikator, forex strategy, forex broker, forex tutorial, ebook forex, and all information about forex. So let's start increase your forex knowledge with this introduction.

What is FOREX? The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you can easily see how enormous the Foreign Exchange really is. It actually eq9 P a g e uates to more than three times the total amount of the stocks and futures markets combined! Forex rocks! What is traded on the Foreign Exchange? The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY). Because you're not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy. In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country's economy, compared to the other countries' economies. Unlike other financial markets like the New York Stock Exchange, the Forex spot market has neither a physical location nor a central exchange. The Forex market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. Until the late 1990’s, only the “big guys” could play this game. The initial requirement was that you could trade only if you had about ten to fifty million bucks to start with! Forex was originally intended to be used by bankers and large institutions - and not by us “little guys”. However, because of the rise of the Internet, online Forex trading firms are now able to offer trading accounts to 'retail' traders like us. All you need to get started is a computer, a high-speed Internet connection, and the information contained within this site.

Tip 1. Gamblers go to casino. All unproved, spontaneous actions in Forex trading — are a part of pure gambling.Any attempt to trade without analysis and studying the market is equal to a game. Game is fun except when you are losing real money...
Tip 2. Never invest money into a real Forex account until you practice on a Forex Demo account! Allow at least 2 month for demo trading. Consider this: 90% of beginners fail to succeed in the real money market only because of lack of knowledge, practice and discipline. Those remaining 10% of successful traders had been sharpening and shaping their skills on demo accounts for years before entering the real market.A good demo account to start practicing with could be.
Tip 3. Go with the trend! Trend is your friend. Trade with the trend to maximize your chances to succeed. Trading against the trend won't "kill" a trader, but will definitely require more attention, nerves and sharp skills to rich trading goals.
Tip 4. Always take a look at the time frame bigger than the one you've chosen to trade in. It gives the bigger picture of market price movements and so helps to clearly define the trend. For example, when trading in 15 minute time frame, take a look at 1 hour chart; trading hourly would require obtaining a picture of daily, weekly price movements.
If a trend is hard to spot — choose a bigger time frame. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers have no need to spend their time studying big trends, what's happening in the market here and now (during 5-10 minute time frame) should be of only importance to a Forex scalper.
Tip 5. Never risk more than 2-3% of the total trading account. One important difference between a successful and an unsuccessful trader is that the first is able to survive under unfavorable conditions on the market, while an unsuccessful trader will blow up his account after 5-10 unprofitable trades in the row.
Even with the same trading system 2 traders can get opposite results in the long run. The difference will be again in money management approach. To introduce you to money management, let's get one fact: losing 50% of total account requires making 100% return from the rest of money just to restore the original balance.
Tip 6. Put emotions down. Trade calm. Don't try to revenge after losing the trade. Don't be greedy by adding lots of positions when winning.Overreaction blocks clear thinking and as a result will cost you money. Overtrading can shake your money management and dramatically increase trading risks.
Tip 7. Choose the time frame that is right for you. Choosing wise means that you are comfortable and have time enough to analyze the market, place and close orders etc. Some people can't wait for hours for the price to make a move, they like action and therefore prefer smaller time frames. On the contrary, for others 10-15 minutes is a hustle to be able to make the right decision.

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"Beat the odds..." seems to be an updated and edited version of Igrok's previous book `Rules of Engagement" which I also got from his site about a couple years ago. At that time I paid for the book $300, but still have no regrets though. The book was worth its price then and definitely worth its price now when it finally became available to a larger trading audience. I bought a copy of his book for the price of $300 largely out of pure curiosity because right before then I came across a bunch of trading strategies called "Igrok's trading templates" offered for sale on the internet by some Russian intellectual pirates. Sellers actually claimed that those templates were "secretly developed by US government funded financial institute" and that "the rate of success of applying those strategies in real trading exceeds 80% in average". So, becoming intrigued, I decided to take some risk and ordered the book directly from the author's website. To my surprise I wasn't disappointed with what I got in return for my money. To make a long story short I think that the book, no doubt, is written by a top-notch professional trader with about 13 or so years of practical FX trading experience with outstanding skills and incredible trading results. I saw his track record. It's quite impressive. The author was (still is?) actually managing multi-million USD funds in the wholesale interbank currency market making hefty living out of his performance-based job. He is not a fake and is unlike lots of others so called "trading instructors", "market analysts" and "trading advisors" often good only for collecting commissions and subscription fees from their customers or proudly sitting on monthly paychecks in numerous dealing companies and still being completely unable to steal a few bucks from the market. I have to admit though that the book is not so easy read for the beginners. In my opinion the author has skipped on lots of trading related basic stuff probably assuming that everyone reading his book knows enough about the market. With me it was not the case. I had to come back to some technical textbooks first in order to better understand Igrok's concepts. Nonetheless I recommend this book to any individual FX trader. Sure, it is not an ultimate cure for someone's stupidity or lack of experience, but to some it might offer a great deal of relief. Whatever works for Igrok himself might work for someone else. * Rating Hands-on trading guide Aug 15, 2006 (26 of 34 found this helpful) I view this book as the best possible instruction manual and survival guide in a cold and merciless trading world. Igor presents you with a practical hands-on walk through the world and practices of trader's battleground. You will find the needed body armor (money and risk management) allowing you to take a direct hit and actually teaching you how many direct hits you can possibly take. But of course you would want victory, not just survival, so this book will also teach you how to build a battle plan, starting with exit strategy. Like a sharpshooter, learning to master breath control, you will gain knowledge of timing issues. And finally and most importantly Igor provides you with topographical map of FOREX terrain and behavior patterns of its inhabitants. This essential and hard learned knowledge comes only through experience most needed to identify trading opportunities and to setup a proper ambush. And if that's not enough, you will also have his large set of trading templates - many possible waylay scenarios including entry traps end seize points. This book demystifies one of the most intricate lines of work bringing in logic and structure and making it less dicey. * Rating A light at the end if the tunnel Aug 15, 2006 (25 of 27 found this helpful) Being exposed to Forex for a little more than 13 years now, I have to honestly say that having read numerous volumes on the subject this book stands out both by it's simplicity and complexity combined. It is a well known fact that a majority of really great things are simple. Here is where this book comes in. Even though it might lool a bit comlex after reading it carefully and grasping the idea, or better put, the strategy that Igor describes you will get the sense of safe heaven. Forex markets are driven both internally and externally by such an abundance of information that it is difficult and sometimes very tiresome to make sense of it all. This book gives a clear cut picture of what needs to be done at a a very specific points in time. It doesn't just give you the tools to trade but also, and that's extremelly important, teaches you the right attitude to forex. It gives the trader the peace of mind with clear cut money management and trading techniques to be applied when the market presents it's opportunities. This strategy can be used by both seasones traders as well as novices. You can work and still manage 20 to 40 min a day to do your analyses and enter the orders for the trades. Or you can watch the market constantly and identify and react to the situations that present itself. I highly recomend this book as a unique approach to trading and consistently making money with a very limited stress that most people experience in this bussiness. For a person with an opened mind this could be a breakthrough that they need to develop their own profitable trading routine.

Hot Trading Secrets

Master the market for maximum profits with HOT TRADING SECRETS Playing the trading game takes audacious confidence, but winning takes more. It's about making chances instead of taking chances. As founder of the remarkably successful Taipan Group-a team of independent financial analysts-author J. Christoph Amberger knows: ""There is always an opportunity to make exceptional stock market profits . . . as long as you know how to read the signs."" In Hot Trading Secrets,
Amberger gives you a blueprint for making big money in any financial climate. He will teach you: How to trade on ""insider information"" legally and profitably The secret strategies of CBOE floor traders How to profit from the ""Red Zones"" How to become a stone-cold profit predator In a simple step-by-step presentation, Amberger will liberate you from restrictive conventional fallacies. Using Hot Trading Secrets as your guide, you will learn to exploit volatile market events to achieve consistent profits-whether the market is up or down.

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Book Description:

Discover a New Approach to Analyzing Price Fluctuations in the Foreign Exchange Market Forex Wave Theory provides spot currency speculators and commodity futures traders with an innovative new approach to analyzing price fluctuations in the foreign exchange. Written by Jim Bickford, a successful veteran online spot currency trader, this expert financial tool explains the four most significant categories within technical analysis_pattern recognition, econometric models, crossover trading systems, and wave theory_and includes critical definitions of technical terms. Forex Wave Theory examines in detail different length cycles of two through six waves, with special emphasis on their predictive reliability. The book also converts raw security data (OHLC quotes) to swing data through the application of a refined minimum reversal algorithm. Based on solid mathematical and statistical models, Forex Wave Theory is a highly visual resource that uses over 200 images to explore: * Currency Markets_ Spot Currencies; Currency Futures * Technical Analysis_ Pattern Recognition; Econometric Models; Crossover Trading Systems; Wave Theory * Reversal Charts_Point & Figure Charts; Renko Charts; Swing Charts * Brief History of Wave Theory_ Origin of Wave Theory; Gann Angles; Kondratiev Wave; Elliott Wave Theory; Gartley Patterns; Goodman Swing Count System * Two-Wave Cycles_Two-Wave Cycle Properties; Enhancing the Forecast * Three-Wave Cycles_Basic Three-Wave Cycle Types; Forecasting the Third Wave * Four-Wave Cycles_Multi-Wave Cycle Names; Four-Wave Cycle Properties * Five-Wave Cycles_Properties; Forecasting the Fifth Wave * Six-Wave Cycles_Properties; Forecasting the Sixth Wave; Double-Wave Forecasting * Advanced Topics_Data Operations; Swing Operations This on-target reference also features instructive case studies of the author's unique method, together with a wide range of important supplemental information covering ISO currency pairs, exchange rates, global banking hours, basic three-wave cycles, and related resources. A vital tool for success in the currency market, Forex Wave Theory gives traders a powerful new method for analyzing fluctuations in the foreign exchange markets_and accurately determining market waves. About the Author James L. Bickford began trading in commodity futures in the early 1980s

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Ask Price ¨C Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote ¨C e.g. EUR/USD 1.1965 / 68 ¨C means that one euro can be bought for 1.1968 UD dollars.Bar Chart ¨C A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information ¨C the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price.Base Currency ¨C is the first currency in a currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote - USD/JPY 112.13 ¨C US dollars are the base currency, with 1 US dollar being worth 112.13 Japanese yen.Bid Price ¨C is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote - e.g. EUR/USD 1.1965 / 68 ¨C means that one euro can be sold for 1.1965 UD dollars.Bid/Ask Spread ¨C is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker's fee, and varies from broker to broker.Broker ¨C the intermediary between buyer and seller. Most FOREX brokers are associated with large financial institutions and earn money by setting a spread between bid and ask prices.Candlestick Chart - A type of chart used in Technical Analysis. Each time division on the chart is displayed as a candlestick ¨C a red or green vertical bar with extensions above and below the candlestick body. The top of the extension shows the highest price for the chart division and the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price is rising.Cross Currency ¨C A currency pair that does not include US dollars ¨C e.g. EUR/GBP.Currency Pair ¨C Two currencies involved in a FOREX transaction ¨C e.g. EUR/USD.Economic Indicator ¨C A statistical report issued by governments or academic institutions indicating economic conditions within a country.First In First Out (FIFO) ¨C refers to the order open orders are liquidated. The first orders to be liquidated are the first that were opened.Foreign Exchange (FOREX, FX) ¨C Simultaneously buying one currency and selling another.Fundamental Analysis ¨C Analysis of political and economic conditions that can affect currency prices.Leverage or Margin ¨C The ratio of the value of a transaction to the required deposit. A common margin for FOREX trading is 100:1 ¨C you can trade currency worth 100 times the amount of your deposit.Limit Order ¨C An order to buy or sell when the price reaches a specified level.Lot ¨C The size of a FOREX transaction. Standard lots are worth about 100,000 US dollars.Major Currency ¨C The euro, German mark, Swiss franc, British pound, and the Japanese yen are the major currencies.Minor Currency ¨C The Canadian dollar, the Australian dollar, and the New Zealand dollar are the minor currencies.One Cancels the Other (OCO) ¨C Two orders placed simultaneously with instructions to cancel the second order on execution of the first.Open Position ¨C An active trade that has not been closed.Pips or Points ¨C The smallest unit a currency can be traded in.Quote Currency ¨C The second currency in a currency pair. In the currency pair USD/EUR the euro is the quote currency.Rollover ¨C Extending the settlement time of spot deals to the current delivery date. The cost of rollover is calculated using swap points based on interest rate differentials.Technical Analysis ¨C Analysis of historical market data to predict future movements in the market.Tick ¨C The minimum change in price.Transaction Cost ¨C The cost of a FOREX transaction ¨C typically the spread between bid and ask prices.Volatility ¨C A statistical measure indicating the tendency of sharp price movements within a period of time.

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Analysis in Forex
There are 2 basic types of analysis you can take when approaching the forex:
1. Fundamental analysis
2. Technical analysis.
There has always been a constant debate as to which analysis is better, but to tell you thetruth, you need to know a little bit of both. So let’s break each one down and then come back and put them together.
Fundamental Analysis
Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand. In other words, you look at whose economy is doing well, and whose economy sucks. The idea behind this type of analysis is that if a country’s economy is doing well, their currency will also be doing well. This is because the better a country’s economy, the more trust other countries have in that currency. For example, the U.S. dollar has been gaining strength because the U.S. economy is gaining strength. As the economy gets better, interest rates get higher to control inflation and as a result, the value of the dollar continues to increase. In a nutshell, that is basically what fundamental analysis is. Later on in the course you will learn which specific news events drive currency prices the most. For now, just know that the fundamental analysis of the Forex is a way of analyzing a currency through the strength of that country’s economy.

Technical Analysis
The most IMPORTANT thing you will ever learn in technical analysis is the trend! Many, many, many, many, many, many people have a saying that goes, “The trend is your friend”. The reason for this is that you are much more likely to make money when you can find a trend and trade in the same direction. Technical analysis can help you identify
these trends in its earliest stages and therefore provide you with very profitable trading
opportunities. Now I know you’re thinking to yourself, “Geez, these guys are smart. They use crazy words like "technical" and "fundamental" analysis. I can never learn this stuff!” Don't worry yourself too much. After you're done with the School of Pipsology, you too will be just as....uhmmm..."smart?" as us.

So which type of analysis is better?
Ahh, the million dollar question. Throughout your journey as an aspiring Forex trader you will find strong advocates for both fundamental and technical trading. You will have those who argue that it is the fundamentals alone that drive the market and that any patterns found on a chart are simply coincidence. On the other hand, there will be those who argue that it is the technicals that traders pay attention to and because traders pay attention to it, common market patterns can be found to help predict future price movements. Do not be fooled by these one sided extremists! One is not better than the other... Technical analysis is the study of price movement. In one word, technical analysis = charts. The idea is that a person can look at historical price movements, and, based on the price action, can determine at some level where the price will go. By looking at charts, you can identify trends and patterns which can help you find good trading opportunities. In order to become a true Forex master you will need to know how to effectively use both types of analysis. Don't believe me? Let me give you an example of how focusing on only one type of analysis can turn into a disaster.
• Let’s say that you’re looking at your charts and you find a good trading opportunity. You get all excited thinking about the money that’s going to be raining down from the sky. You say to yourself, “Man, I’ve never seen a more perfect trading opportunity. I love my charts.”
• You then proceed to enter your trade with a big fat smile on your face (the kind where all your teeth are showing).

There are some basic order types that all brokers provide and some others that sound
weird. The basic ones are:
• Market order
A market order is an order to buy or sell at the current market price. For example,EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly execute a buy order at that exact price. If you ever shop on Amazon.com, it's (kinda) like using their 1-Click ordering. You like thecurrent price, you click once and it's yours! The only difference is you are buying or selling one currency against another currency instead of buying Britney Spears CDs.
• Limit order
A limit order is an order placed to buy or sell at a certain price. The order essentially contains two variables, price and duration. For example, EUR/USD is currently trading at 1.2050. You want to go long if the price reaches 1.2070. You can either sit in front of your monitor and wait for it to hit 1.2070 (at which point you would click a buy market order), or you can set a buy limit order at 1.2070 (then you could walk away from your computer to attend your ballroom dancing class). If the price goes up to 1.2070, your trading platform will automatically execute a buy order at that exact price. You specify the price atwhich you wish to buy/sell a certain currency pair and also specify how long you want the order to remain active (GTC or GFD).
• Stop-loss order
A stop-loss order is a limit order linked to an open trade for the purpose of preventing additional losses if price goes against you. A stop-loss order remains in effect until the position is liquidated or you cancel the stop-loss order. For example, you went long (buy) EUR/USD at 1.2230. To limit your maximum loss, you set a stop-loss order at 1.2200. This means if you were dead wrong and EUR/USD drops to 1.2200 instead of moving up, your trading platform would automatically execute a sell order at 1.2200 and close out your position for a 30 pip loss (eww!). Stop-losses are extremely useful if you don't want to sit in front of your monitor all day worried that you will lose all your money. You can simply set a stop-loss order on any open positions so you won't miss your basket weaving class.
• GTC (Good ‘til canceled)
A GTC order remains active in the market until you decide to cancel it. Your broker will not cancel the order at any time. Therefore it's your responsibility to remember that you have the order scheduled.
• GFD (Good for the day)
A GFD order remains active in the market until the end of the trading day. Because foreign exchange is a 24-hour market, this usually means 5pm EST since that that's U.S. markets close, but I’d recommend you double check with your broker.
• OCO (Order cancels other)
An OCO order is a mixture of two limit and/or stop-loss orders. Two orders with price and duration variables are placed above and below the current price. When one of the orders is executed the other order is canceled. Example: The price of EUR/USD is 1.2040. You want to either buy at 1.2095 over the resistance level in anticipation of a breakout or initiate a selling position if the price falls below 1.1985. The understanding is that if 1.2095 is reached, you will buy order will be triggered and the 1.1985 sell order will be automatically canceled.

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The FX market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.
The object of Forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.
Example of making money by buying Euros
Trader's Action EUR USD You purchase 10,000 euros at the EUR/USD exchange rate of 1.18
Two weeks later, you exchange your 10,000 euros back into US dollars at the exchange rate of 1.2500.
you earn a profit of $700. 0 +700
EUR $10,000 x 1.18 = US $11,800
EUR $10,000 x 1.25 = US $12,500
An exchange rate is simply the ratio of one currency valued against another currency. For example, the USD/CHF exchange rate indicates how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar. How to Read an FX Quote Currencies are always quoted in pairs, such as GBP/USD or USD/JPY. The reason they are quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar:
GBP/USD = 1.7500
The first listed currency to the left of the slash ("/") is known as the base currency (in this example, the British pound), while the second one on the right is called the counter or quote currency (in this example, the U.S. dollar). When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency. In the example above, you have to pay 1.7500 U.S. dollar to buy 1 British pound. When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency. In the example above, you will receive 1.7500 U.S. dollars when you sell 1 British pound. The base currency is the “basis” for the buy or the sell. If you buy EUR/USD this simply
means that you are buying the base currency and simultaneously selling the quote currency.
You would buy the pair if you believe the base currency will appreciate (go up) relative to the quote currency. You would sell the pair if you think the base currency will depreciate (go down) relative to the quote currency.
Long/Short
First, you should determine whether you want to buy or sell. If you want to buy (which actually means buy the base currency and sell the quote currency), you want the base currency to rise in value and then you would sell it back at a higher price. In trader's talk, this is called "going long" or taking a "long position". Just remember: long = buy.
If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you would buy it back at a lower price. This is called "going short" or taking a "short position". Short = sell. Bid/Ask Spread
All Forex quotes include a two-way price, the bid and ask. The bid is always lower than the ask price. The bid is the price in which the dealer is willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (as the trader) will sell. The ask is the price at which the dealer will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy. The difference between the bid and the ask price is popularly known as the spread. Let's take a look at an example of a price quote taken from a trading platform:
On this GBP/USD quote, the bid price is 1.7445 and the ask price
is 1.7449. Look at how this broker makes it so easy for you to
trade away your money.
If you want to sell GBP, you click "Sell" and you will sell pounds
at 1.7445. If you want to buy GBP, you click "Buy" and you will
buy pounds at 1.7449.
In the following examples, we're going to use fundamental analysis to help us decide whether to buy or sell a specific currency pair. If you always fell asleep during your economics class or just flat out skipped economics class, don’t worry! We will cover fundamental analysis in a later lesson. For right now, try to pretend you know what’s going on…
EUR/USD
In this example Euro is the base currency and thus the “basis” for the buy/sell. If you believe that the US economy will continue to weaken, which is bad for the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will rise versus the US dollar. if you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold Euros in the expectation that they will fall versus the US dollar.
USD/JPY
In this example the US dollar is the base currency and thus the “basis” for the buy/sell. If you think that the Japanese government is going to weaken the Yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will rise versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and converting all their U.S. dollars back to Yen, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.
GBP/USD
In this example the GBP is the base currency and thus the “basis” for the buy/sell. If you think the British economy will continue to do better than the United States in terms of economic growth, you would execute a BUY GBP/USD order. By doing so you have bought pounds in the expectation that they will rise versus the US dollar. If you believe the British's economy is slowing while the United State's economy remains strong like bull, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.
USD/CHF
In this example the USD is the base currency and thus the “basis” for the buy/sell. If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that the US housing market bubble burst will hurt future economic growth, which will weaken the dollar, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc. I don't have enough money to buy $10,000 euros. Can I still trade?
You can with margin trading! Margin trading is simply the term used for trading with borrowed capital. This is how you're able to open $10,000 or $100,000 positions with as little as $50 or $1,000. You can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Margin trading in the foreign exchange market is quantified in “lots”. For now, just think of the term "lot" as the minimum amount of currency you have to buy. When you go to the grocery store and want to buy an egg, you can't just buy a single egg; they come in dozens or "lots" of 12. In Forex, it would be just as foolish to buy or sell $1 EUR, so they usually come in "lots" of $10,000 or $100,000 depending on the type of account you have.
For Example:
• You believe that signals in the market are indicating that the British Pound will go up
against the US Dollar.
• You open 1 lot ($100,000) for buying the Pound with a 1% margin at the price of
1.5000 and wait for the exchange rate to climb. This means you now control $100,000
worth of British Pound with $1,000. Your predictions come true and you decide to
sell.
• You close the position at 1.5050. You earn 50 pips or about $500. (A pip is the
smallest price movement available in a currency). So for an initial capital investment
of $1,000, you have made 50% return. Return equals your $500 profit divided by your
$1,000 you risked to trade.
Your Actions GBP USD
Your Money
You buy 100,000 pounds at the GBP/USD exchange
rate of 1.5000
+100,000 -150,000 $1,000
You blink for two seconds and the GBP/USD
exchange rate rises to 1.5050 and you sell.
-100,000 +150,500** $1,500
You have earned a profit of $500. 0 +500
When you decide to close a position, the deposit that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.
We will also be discussing margin more in-depth in the next lesson, but hopefully you're
able to get a basic idea of how margin works.

source: School of Pipsology

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There are many benefits and advantages to trading Forex. Here are just a few reasons why
so many people are choosing this market:
• No commissions.
No clearing fees, no exchange fees, no government fees, no brokerage fees. Brokers are compensated for their services through something called the bid-ask spread.
• No middlemen.
Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.
• No fixed lot size.
In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5000 ounces. In spot Forex, you determine your own lot size. This allows traders to participate with accounts as small as $250 (although we explain later why a $250 account is a bad idea).
• Low transaction costs.
The retail transaction cost (the bid/ask spread) is typically less than 0.1 percent under normal market conditions. At larger dealers, the spread could be as low as .07 percent. Of course this depends on your leverage and all will be explained later.
• A 24-hour market.
There is no waiting for the opening bell - from Sunday evening to Friday afternoon EST, the Forex market never sleeps. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.
• No one can corner the market.
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.
• Leverage.
In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. But leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.
• High Liquidity.
Because the Forex Market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will. You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).
• Free “Demo” Accounts, News, Charts, and Analysis.
Most online Forex brokers offer 'demo' accounts to practice trading, along with breaking Forex news and charting services. All free! These are very valuable resources for “poor” and SMART
traders who would like to hone their trading skills with 'play' money before opening a live trading account and risking real money.
• “Mini” and “Micro” Trading:
You would think that getting started as a currency trader would cost a ton of money. The fact is, compared to trading stocks, options or futures, it doesn't. Online Forex brokers offer "mini" and “micro” trading accounts, some with a minimum account deposit of $300 or less. Now we're not saying you should open an account with the bare minimum but it does makes Forex much more accessible to the average (poorer) individual who doesn't have a lot of start-up trading capital.

sorce:School of Pipsology