What is forex?

Forex stands for foreign exchange. Sometimes its also called FX.

A simple way to understand the foreign exchange market is to think of it as changing money when you travel abroad. When you alter money, you sell money and buy another at the current exchange rate. This is because the worth of your own money is not equal to the worth of the money you require to buy. In effect, you have traded money and this is similar to foreign exchange trading.

POUND NOT ABLE TO PRESERVE ONE PARTICULAR-WAY MOVEMENT TO UPSIDE

The Great Britain closed lower today despite another positive economic report that added to evidences of recovery in the United Kingdom. Forex traders were concerned that the currency was going too long in one direction.

Public sector net borrowing excluding temporary effects of financial interventions was at £13.2 billion in August. It was £1.3 billion lower than the budget deficit of £14.4 billion a year ago. Analysts have predicted slightly higher reading.

EURO RECEIVES AID FROM IMPROVED MORALE

Euro is getting a little help today, thanks to improved morale in the eurozone. Even though the 17-nation currency is struggling against the US dollar, the euro is higher against some of its other major counterparts. There is a lot for Forex traders to think about as this week draws to a close.

What is Forex Signal ?

A Forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time.The signal is generated either by a human analyst or an automated Forex robot supplied to a subscriber of the forex signal service. Due to the timely nature of signals, they are usually communicated via email, website, SMS, RSS, tweet or other relatively immediate method.

Source : Wikipedia 

Types of forex signals

Services provided fall into four categories:

1. Unpaid/free signals
2. Paid signals from one provider whether by personal analysis or algorithmic analysis
3. Paid signals aggregated from multiple signal sources or 'systems'

What Is Forex Margin Trading?

In the world of forex, margin trading (or "buying on margin", or "trading on margin") means trading with short-term borrowed capital. Margin is thus a form of borrowed money or debt. This borrowed capital is used to buy much more currency that you’d be able to purchase ordinarily (unless you have hundreds of thousands of dollars available). In the forex market, currencies are usually traded in lots, with a standard lot being $100,000. (The forex market is a highly leveraged market.)

CANADIAN DOLLAR ADVANCES ON GDP FIGURES

After Canada posted positive quarterly gross domestic product figures, the national currency benefited on the economic outlook and optimism, advancing versus most of the 16 main traded currencies in foreign-exchange markets.

POUND DOWN ON WEAKER THAN EU OUTLOOK

The pound started the week down versus the euro and the U.S. dollar as sentiment towards other wealthy nations in the world remain more positive than the U.K.’s economic perspectives, forcing investors to abandon pound priced assets to inject capital in more attractive currencies backed by fast recovering nations.

MEXICAN PESO UP AS STOCKS HIT RECORD HIGH

The Mexican currency had a winning performance versus several important currencies as stocks rallied on speculations that the Latin American economy will recover faster than other emergent markets.

YEN DROPS ON INTERVENTION TALKS

The Japanese currency declined versus most of the 16 main traded currencies after speculations rose that Japanese officials are ready to intervene on the current yen’s level, as it would be an obstacle for the Japanese economic recovery, decreasing competitiveness for the nation’s exports.

DOLLAR RISE ON U.S. STOCKS DECLINE

After a very sharp fall versus the euro and high-yielding currencies, the dollar gained today as equities markets, specially in the U.S. ended a rally that started in the beginning of the week with renewed optimism regarding the Dubai debt.

AUSSIE DOLLAR ROCKETING ON RATES HIKE

The Australian dollar rose versus most of the 16 main traded currencies as interest rates were once again raised in the country, making the Aussie currency one of the most attractive investment in foreign-exchange markets this year.

BRAZILIAN REAL BENEFITS FROM CHINA’S MANUFACTURING

The Brazilian real, together with most emergent markets currencies, climbed today, specially versus the greenback and the yen, as risk appetite returned to markets on renewed optimism.

Dollar Slumps After Jobs Miss and Other Top Forex News.

The U.S. dollar fell against most of its rivals on Friday after U.S. jobs data came in under expectations, fuelling uncertainty over the Federal Reserve’s next move.

Official data showed that the U.S. economy added 169,000 jobs in August, less than the expected 180,000 increase, after a downwardly revised 104,000 rise the previous month.

Top Trade Idea for September 6th, 2013 – EUR/USD

The EUR/USD daily chart shows a clear downtrend. There’s potential for a strong read on non-farm payrolls tonight to drive further USD strength, and another leg down for EUR/USD. Leaning on the daily trend, traders may turn to the hourly chart for an entry signal.