What is FOREX? And, how do we approach Forex?

Forex is short for foreign exchange. When one speaks of a forex profit or loss, he/she is referring to the increased or decreased value of an investment caused solely by currency fluctuations. The Forex market consists of numerous currency pairs. The first currency symbol in a forex quotation represents base currency while the second symbol stands for counter currency. If you predict that base currency will rise in value against counter currency, you should BUY that currency pair. If you forecast that the opposite will happen, you need to SELL that pair. For example, in EUR/USD pair, EUR is the base currency and USD is the counter currency. A forex investor who thinks Euro will rise against US Dollar should buy EUR/USD pair. On the other hand, an investor who thinks that Euro will fall against US Dollar should sell (or Short) EUR/USD pair. At ForexsignalsTurkey, we make the Forex market easier for you to trade by providing services such as technical analysis tools, buy&sell signals, and possibility of executing orders from your home. Click to more...

View of markets

There are many roads people can take when it comes to investing their money. Making investment decisions is vital since it will have a great impact on one's future. An old fashined way to invest money is to buy physical gold and keep them at home hoping that the value of gold rises. People had used that strategy as an investment, mostly in the past. Another general method of investing money is purchasing stocks and/or bonds. Selecting a certain investment method would depend on how much risk one is willing to take and how much knowledge one has in the market he/she is investing in.

While basic investment methods can lead to decent returns, investors should not restrict themselves with only a few choices. Diversification has always been the rule of thumb for all investors. However, in order to follow diversification rule, investors must familarize themselves with different financial markets and invest in those markets. Buying nothing but gold or stocks will increase an investor's overall market risk. Owning various financial products in a portfolio can help protect one's investments.

One of the financial markets that maintains its great reputation for decades is called Forex (Foreign Exchange). Click to more...

Forex and Islam

Gaining halal money (legal way of earning money based on Islamic rules) is a very sensitive matter in Muslim world. When observing the Forex market from a religious point of view, one problem that can be seen is daily interest rates that investors pay or receive. However, at ForexSignalsTurkey, your account can be an interest-free account. We make sure to respect religious views of our clients, therefore we made agreements with our main brokers in order to allow you to operate interest-free accounts. You can contact us if you have any questions regarding our interest-free accounts. Another expectation a religious person might have regarding Forex would be an answer to the following questions: Is making trades and gaining profits (or incurring losses) in Forex market halal? Click to more...

Why Forex Trade?

24 Hour Market

FX is a global market that never sleeps. It is active 24-hours a day for almost 7-days a week. Most activity takes place between the time the New Zealand market opens on Monday, which is Sunday evening in Europe, until the US market closes on Friday evening. Psycho Box - It's not a requisite to spend time watching the market during 24 hours- it's even not advisable. The market never sleeps, but you should. With Forex, though, one could theoretically day trade in the evenings after work or in the mornings beforehand. This is very desirable, specially if you are starting out and want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.

Superior Liquidity

The FX market is huge and it is still expanding. According to the authoritative Triennial Central Bank Survey from Bank for International Settlements in 2010, Basel, daily average volume now reaches US$ 4 trillion. Technology has made this market accessible to almost anyone and retail traders have flocked to FX. Click to more...

Technical Analysis

The purpose of technical analysis is to carry out price forecasts. By processing historical market data of any instrument, you can try to anticipate how it should be traded. There are several premises in favor of the reliability of technical analysis that are based on the experience and prolonged observation. These premises are the following:

1. A market trend in motion is more likely to persist than to reverse.

This is obvious by simply looking at any price chart. Of course the aim of any trader is to be aware of the overall market direction, to lock into the prevailing trend and trade it for profit.

2. Markets are discounting mechanisms.

In other words, technical analysts assume that market fundamentals are already represented in the price so what you perceive in the charts is a reflection on any fundamental variable impacting the market. Nowadays, with instant communications this is truer than ever. Click to more...

Fundamental Analysis

One of the dominant debates among financial analysts is the relative validity of the two primary approaches of analyzing markets: fundamental and technical analysis. There are several points of distinction between fundamentals and technicals but it's true that both study the causes of market movements and both attempt to predict price action and market trends. Fundamentals focus on financial and economic theories, as well as political developments to determine forces of supply and demand.

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. This assumption is based on the belief that the exchange is determined by the underlying health of the two nations involved in the pair.

When evaluating one nation's currency relative to another, fundamental analysis relies upon a broad understanding of multinational macroeconomic statistics and events. Usually it examines core underlying elements that influence the economy of a particular currency. These might include, on the one hand, economic indicators such as interest rates, inflation, unemployment, money supply and growth rates. On the other hand, it also examines socio-political conditions which could impact on the level of confidence in a nation's government and affect the climate of stability. Click to more...

Margin and Leverage

Lots and Position Sizes
Currencies are traded in units of currencies which are grouped in lots. At a retail level, lots are divided into several categories: the so-called "full-size" or "standard" lots, "mini" lots, and "micro" lots. A standard lot consists of 100,000 units of whatever the base currency in the currency pair is. A mini lot consists of 10,000 units of the base currency and a micro lot 1,000 units of the base currency. As you can see, a mini contract is one-tenth the size of a standard contract and the micro lot one-tenth of the mini lot. So for instance, when buying one micro lot on the GBP/USD, you would buy 1,000 British pounds and sell an equivalent amount of US Dollars. Let's suppose the current exchange rate for GBPUSD is 2.4500 and you want to buy 10,000 US Dollars worth of this pair. Here's the math: For pairs with USD as the quote currency, take the dollar amount you want to purchase and divide it by the exchange rate: Click to more...

Forex is a High Risk Investment

Trading in the foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals. The high degree of leverage offered in the Forex markets can work against you as well as for you. Before deciding to trade in the foreign exchange markets you should carefully consider your investment objectives, your level of experience, and your risk appetite.

The possibility exists that you could sustain a loss of some or all of your equity and therefore you should not invest money that you cannot afford to lose. Only true discretionary cash should be used in trading. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.

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