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Nine Reasons To Begin Trading FOREX!

Start Trading The Forex Market – Your How To Guide Part 3

NINE REASONS TO BEGIN TRADING FOREX!

In an increasing trend, seasoned traders, investors and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency, or FOREX, because of the following reasons:

  •  FOREX is the largest financial market in the world.

With a daily trading volume of over $2 trillion USD, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.

  • FOREX is a True 24-hour market.

The FOREX Market never sleeps.  Trading positions can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.

  • There is never a Bear Market in FOREX.

You can have access to a seamless exchange of currencies. Currencies trade in "pairs" (for example, Euro vs. the US dollar (EUR/USD); or US dollar vs. Swiss franc (USD/CHF), one side of every currency pair (for example, EUR/USD) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long (you bought) or short (you sold).

  • High Leverage - up to 1000:1 Leverage.

You are permitted to trade foreign currencies on a highly leveraged basis - up to 1000 times your investment with Hydra Markets LLC and with some other brokers.

A standard $100,000 USD currency lot can be traded with as little as 0.1% margin, or $100.

Hydra ECN live accounts are permitted to trade with just 0.1% margin, meaning, just $10 allows you to control a 10,000-unit currency position.

Futures traders, who are accustomed to margin requirements generally equal to 5-7%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there’s no comparison. If you’re looking for an efficient use of trading, trade the Forex Market.

  • Price Movements might be Highly Predictable.

Currency prices in the FX market generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the "technical" methods and strategies.

 Unlike stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, to enter and exit positions.

  • YOU only pay a small commission or fee to trade FOREX

When you trade FOREX, through Hydra Markets you can have two choices of trading account.

ECN – You trade a tight spread and also pay a commission
Standard – The commission is included in the spread.

Hydra Markets requires a very low minimum amount to open a brokerage account, only $100 USD or equivalent. To open a live account please click on the following link- https://vault.hydramarkets.com/open-live-account

  • YOU don't have to pay trading fees or exchange fees.

There are none of the usual fees, which futures and equity traders are accustomed to pay:

NO exchange or clearing fees,

NO NFA or SEC fees.

Because currencies trade over-the-counter (OTC), via a global electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.

In the equity and commodity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.

  • Market Transparency.

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the many recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing companies).

As Hydra Markets is an ECN broker and also because of this transparency, as an FX trader, you will be able to apply risk management strategies in accordance to your fundamental and technical indicators.

  • Instantaneous Order Execution

The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.

In Forex, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine.

There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays. (Will be continued)...

Risk Warning:
The speculation of both leveraged foreign exchange (FX) and Contracts For Difference (CFDs) products is undertaken in order to potentially earn a profit from the price difference between the opening and closing of the transaction. Because leverage can work either in favour of or against the investor, FX and CFD transactions carry an extreme level of risk. For these reasons, FX and CFD trading may not be suitable for all investors as it is possible to lose a partial or full amount of the invested capital. You should only trade with capital that you are willing to lose. In addition, before making any trading decisions, it is highly suggested that you review the associated risks while taking into account your investment objects and level of experience. Past trading performance is not a reliable indicator of future performance. If you have any doubts, seek independent advice from a financial advisor.

Why Has Trading FOREX Become So Popular?

Start Trading The Forex Market – Your How To Guide Part Two

Why has trading FOREX  become so popular?

One of the main reasons that FOREX trading is so popular is because you can trade from virtually anywhere. From your kitchen table, bedroom, office, and garage, from your nearest Starbucks coffeehouse and even from your tablets or smartphones!

If you have or like to travel, take your laptop with you and you can trade the FOREX anywhere in the world where you have an Internet connection.

When you want to start trading the Forex Market nobody is asking you for a diploma, a formal license or a proof of how many hours you have spent studying the Foreign Exchange Market and/or Banking Industry.

FOREX Trading is Economical and Start-up Costs are Low!

With Hydra Markets ( www.hydramarkets.com) , you can open an account to trade Forex with as little as $100 USD.

I personally do recommend taking things slow, playing with the free demo accounts and learning how to trade before placing any money on the table.  To open a Hydra demo account click here - https://vault.hydramarkets.com/open-demo-account

The Main Benefits of Trading the FX Spot Market are:

  • YOU can trade 24-hours a day ! ( Sunday evening to Friday evening)
  • YOU can trade up to 1000:1 Leverage !
  • YOU can have FREE Streaming executable Price quotes and live charts!
  • YOU can have FREE Streaming Price quotes and live charts!

It is important to know the differences between cash FOREX (SPOT FX) and currency futures.

In currency futures, the contract size is predetermined.

With FOREX (SPOT FX), you may trade electronically any desired amount, from $1000 USD up to $10 Million USD in a single trade.

The futures market closes at the end of the business day (similar to the stock market).If important data is released overseas while the U.S. futures markets is closed, the next day's opening might sustain large gaps with potential for large losses if the direction of the move is against your position.

The Spot FOREX market runs continuously on a 24-hour basis from 7:00 am New Zealand time Monday morning to 5:00 pm New York Time Friday evening.

Dealers in every major FX trading center (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva and New York/Toronto) ensure a smooth transaction as liquidity migrates from one time zone to the next.

Furthermore, currency futures trade in non-USD denominated currency amounts only, whereas in spot FOREX, an investor can trade in almost any currency denomination, or in the more conventionally quoted USD amounts.

The currency futures pit, even during Regular IMM (International Money Market) hours suffers from sporadic lulls in liquidity and constant price gaps.

The spot FOREX market offers constant liquidity and market depth much more consistently than Futures.

With IMM futures one is limited in the currency pairs he can trade. Most currency futures are traded only versus the USD.

With spot FOREX, you may trade foreign currencies vs. USD or vs. each other on a 'cross' basis, for example: EUR/JPY, GBP/JPY, CHF/JPY, EUR/GBP and AUD/NZD

More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons: (will be continued)

 

Risk Warning:
The speculation of both leveraged foreign exchange (FX) and Contracts For Difference (CFDs) products is undertaken in order to potentially earn a profit from the price difference between the opening and closing of the transaction. Because leverage can work either in favour of or against the investor, FX and CFD transactions carry an extreme level of risk. For these reasons, FX and CFD trading may not be suitable for all investors as it is possible to lose a partial or full amount of the invested capital. You should only trade with capital that you are willing to lose. In addition, before making any trading decisions, it is highly suggested that you review the associated risks while taking into account your investment objects and level of experience. Past trading performance is not a reliable indicator of future performance. If you have any doubts, seek independent advice from a financial advisor.

What Is The FOREX Or FOREX MARKET?

Start Trading The Forex Market – Your How To Guide Part One

What Is The FOREX or FOREX MARKET?

The Forex market (also referred to as the FX, Foreign Exchange or Currency Exchange) is the largest financial market in the world, with over $2 trillion changing hands every day.

That is larger than all US equity and Treasury markets combined!

Unlike other financial markets that operate at a centralized location (i.e. stock exchange), the Forex market is worldwide and therefore has no central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in the buying and selling of national currencies. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.

Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. With advances in technology over the last decade, however, the Forex market is now available to everybody, from banks to money managers to individual traders trading retail accounts. The time to get involved in this exciting, global market has never been better than now. Open Hydra Markets trading account and become an active player in the largest market on the planet. Visit www.hydramarkets.com to open a live or demo account and see what Forex is all about.

The Forex Market is very different than trading currencies on the futures market, and a lot easier, than trading stocks or commodities.

Whether you are aware of it or not, you already play a role in the Forex market. The simple fact that you have money in your pocket makes you an investor in currency, particularly in the Euro or US Dollar. By holding Euros or US Dollars, you have elected not to hold the currencies of other nations. Your purchases of stocks, bonds or other investments, along with money deposited in your bank account, represent investments that rely heavily on the integrity of the value of their denominated currency, mainly the US Dollar. Due to the changing value of the US Dollar and the resulting fluctuations in exchange rates, your investments may change in value, affecting your overall financial status. With this in mind, it should be no surprise that many investors have taken advantage of the fluctuation in Exchange Rates, using the volatility of the Foreign Exchange market as a way to increase their capital.

Example: suppose you had $1000 and bought Euros when the exchange rate was 1.10 Euros to the dollar. You would then have 1100 Euros. If the value of Euros against the US dollar increased then you would sell (exchange) your Euros for dollars and have more dollars than you started with.

Example:

You might see the following:EUR/USD last trade 1.1000 means 1 Euro is worth $1.10 US dollars.

The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.

The FOREX plays a vital role in the world economy and there will always be a tremendous need for the exchange of currencies. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollar.

Risk Warning:

The speculation of both leveraged foreign exchange (FX) and Contracts For Difference (CFDs) products is undertaken in order to potentially earn a profit from the price difference between the opening and closing of the transaction. Because leverage can work either in favour of or against the investor, FX and CFD transactions carry an extreme level of risk. For these reasons, FX and CFD trading may not be suitable for all investors as it is possible to lose a partial or full amount of the invested capital. You should only trade with capital that you are willing to lose. In addition, before making any trading decisions, it is highly suggested that you review the associated risks while taking into account your investment objects and level of experience. Past trading performance is not a reliable indicator of future performance. If you have any doubts, seek independent advice from a financial advisor.