US Dollars of forex

USD - The US Dollar EUR - The currency of the European Union "EURO" GBP - The British Pound JPN - The Japanese Yen CHF - The Swiss Franc AUD - The Australian Dollar CAD - The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you can not ever trade a EUR by itself. You always need to compare one currency with another currency to make a trade possible.

Some of the common PAIRS are:

EUR/USD Euro / US Dollar "Euro"

USD/JPY US Dollar / Japanese Yen "Dollar Yen"

GBP/USD British Pound / US Dollar "Cable"

USD/CAD US Dollar / Canadian Dollar "Dollar Canada"

AUD/USD Australian Dollar/US Dollar "Aussie Dollar"

USD/CHF US Dollar / Swiss Franc "Swissy"

EUR/JPY Euro / Japanese Yen "Euro Yen"

The listed currency pairs above look like a fraction. The numerator (top of the fraction or "left" of the / however you want to SEE it) is called the base currency. The denominator (bottom of the fraction or "right" of the /however you want to SEE it) is called the counter currency. When you place an order to buy the EUR/USD, for instance, you are actually buying the EUR and selling the USD. If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency. You are always doing the opposite of what you did with to base currency with the counter currency.

If this seems confusing then you’re in luck. You can always get by with just thinking of the entire pair as one item. Then you are just buying or selling that one item. Thinking like this will still enable you to place trades. You only need to be aware of the base/counter concept for Fundamental Analysis issues.

So why is it important to know about the base/counter currency? The base/counter currency concept illustrates what is actually taking place in a Forex transaction. Some of you reading this, know that short-selling was restricted in the stock market *(Short-selling is where you sell a stock/currency/option/commodity first and then try to buy it back at a lower price later). But in the FOREX you are always buying one currency (base) and selling another (counter). If you sell the pair you are simply flipping which one you buy and which one you sell. The transaction is essentially the same. This allows you to short-sell with no restrictions.

You want to be able to short-sell with no restrictions so you can make money when the market drops as well as when it rises. The problem with traditional stock market trading is that the market has to go up for you to make money. With FOREX trading you can make money in all directions.

Placing a trade in the foreign exchange market is simple. What you need is to open a trading account with a reliable broker. You can start trading almost immediately after the account is up. Beginners are advisable to observe the traders' rules and read more books and articles from experienced traders before getting their hand wet.

Now, we have an bird-eye view of what Forex trading is. Next, we will move on to the introduction of forex market. What you need to prepare before you trade.

Speaking of dollars
have been thinking about this whole economic mess lately and something interesting occured to me.Before this huge hole in the economy happened, we were exporting a record amount of dollars. Oil prices were at an all time high and money was flowing out of the country in huge waves. Not to mention all those chinese products at walmart.Does anyone wonder if perhaps we just exported so much money that it created this void which the goverment is now madly trying to fill?This mess has been attributted to a credit freeze. While it’s obvious that America has been living on too much credit, it’s hard to believe that the economy can reverse course so hard on credit alone.This is all just food for thought. Right now, the government is trying to ride in and convince us all that we absolutely must spend all this money to save the system. Not to mention, they want us to go for that, without really questioning how it happened in the first place.What do you think is the real cause of this mess? Any suggestions on the solution? We know what solution we are getting, but is it the right one?

US Stimulus Package Passes
The stimulus package passed in the US this past week. The markets don’t seem to be breathing the sigh of relief that was expected.The stimulus package is only like a shot in the arm for the US economy. While the shot will help, it doesn’t solve the problems that created the illness.It’s time to address the “irrational exuberance” that brought on this current credit mess. The government has it right by focusing on jobs and infrastructure, but this is the third swing in a series of billion dollar swings.The first swing was the infamous “stimulus checks”, which turned out to be a total waste of money and useless extension of debt. The second swing was over 700 billion dollars aimed at shoring up banks, yet banks are failing left and right.
Bank of Canada Pushes Rates Towards Zero
The Bank of Canada lowered interest rates on the Canadian dollar by 50 basis points for January. The Canadian interest rate now stands at a very low 1 percent. This is the lowest level for interest rates in Canada since 1934.Canada has been experiencing a lot of trouble with exports and general economic conditions in the country deteriorating. I have no doubt that within two months they will have an interest rate of 25 basis points or lower. Interest rates hitting zero is just a reality now for countries around the globe. The rabbit hole goes so deep, that no one really knows where it ends. Central banks are just reacting during each meeting with a look at trends and facing the reality that they don’t know where the end of the line is.Numerous politicians in the US have said this is a crisis on confidence, and while most of us might laugh at that, it is true to an extent. I wouldn’t say that we are in a “mental recession”, however, how it this has been approached has a lot to do with the spreading crisis. As businesses and people get nervous and stop spending, the cycle just starts over. Governments are paranoid because there really isn’t a way to communicate with people without committing political suicide.Most of the governments around the world have been slow to react as the global economy turned down, and they have reacted rashly and without enough thought when they finally did act.The world is to the point where the officials that are responsible for economic policy have to stop playing shell games. They need to just admit that there are problems with the system and that some real purging must be done. It is inevitable. The truth is that all these central banks should have done 3 or 4 percent rate cuts a few months ago, and given the system a real shock that was fast and hard instead of waiting to see how bad the damage was going to be. Generally, I don’t support actions like that, I think it is smarter to be more cautious. However, we are facing the implosion of some very dangerous games that have taken place throughout the global economy. It is all interconnected more than ever, so everyone is affected. It’s not that anything like this has never happened before, it’s just that this is the biggest.The global reality is interest rates have to be at almost zero before any type of recovery is going to be seen. Interest rates are not the only key, but they are an important part of the equation.

Trading the forex Market Through a expart Advisor
You would think the Forex market isnt for everyone. As the largest market of the world, with a value of over 2 trillion dollars it seems a big man game only. However, even students and housewives can trade the forex market through a expert advisor.Also known in the business world as EA, the forex expert advisor is an automated system software built by experts on the field of currency trading who have had the experience inside and out. From the name itself, individuals who make use of the EA are given the option to choose their trade parameters and are advised by the system which part of the trade would be beneficial and which could potentially make you lose your money.The tricks and expertise of the programmer, his strategies are embedded on the software. Since the trading itself is automatically executed by the system, it saves an individual a great deal from emotional stress and the physical strains of trading. After setting the needed parameters, you can minimize your acting on impulse and instinct, working mathematically. Although both impulse and instinct will allways remain factors.These forex expert advisor systems run on Meta Trade 4 platform which protects the individual with a highly developed security, interfaces that a user can customize and set the parameters with, flexibility, multilingual support and historical data. The last part refers to a previous success in the trading industry, that once the system detects the same winning condition, can send you an advice and make the trade.However, some may view the use of robots and forex expert advisors as ineffective. Since the foreign exchange is a fast moving market, the first reason why people doubt it is due to inability to point out new circumstances which arise from a combination of different elements. A new development in the market, which the program is not acquainted or programmed with, may throw off the system from considering other options and alternatives. This goes completely in contrast with the flexibility offered by the Meta Trade 4 platform. Another closely related to this are news releases. Changes in government policies, economy fluctuation and other such factors significantly affect the foreign currency trading market.Since these are conflicting advantages and disadvantages, individuals who wish to succeed in the business of trading should be careful and indentify the ratings objectively. Although the forex expert advisors may seem to do everything for you and help increase those dollar signs, a sound decision should come directly from you. If others deem that there are disadvantages against using these systems, then negate them by doing the actions yourself. Make sure the program you do buy is reviewed and has a good name in the field. Then, you can start experiencing the forex trad
Forex News
Find the latest in the world of Foreign Exchange Markets both at TMB, Nationally and Internationally. Get the latest upto date news / report about the forex related information from us. Learn about the interest rate movements as and when they happen right here right now. This can be your one stop forex news point for the latest and upto date news about forex markets.

Forigen Exchange market
The foreign exchange (currency or FX) market is where currency trading takes place. FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.[1] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.[2]The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies.