Forex Secrets

Terms and Conditions

LEGAL NOTICE

The Publisher has strived to be as accurate and complete as possible

in the creation of this report, notwithstanding the fact that he does

not warrant or represent at any time that the contents within are

accurate due to the rapidly changing nature of the Internet.

While all attempts have been made to verify information provided in

this publication, the Publisher assumes no responsibility for errors,

omissions, or contrary interpretation of the subject matter herein.

Any perceived slights of specific persons, peoples, or organizations

are unintentional.

In practical advice books, like anything else in life, there are no

guarantees of income made. Readers are cautioned to reply on their

own judgment about their individual circumstances to act

accordingly.

This book is not intended for use as a source of legal, business,

accounting or financial advice. All readers are advised to seek services

of competent professionals in legal, business, accounting and finance

fields.

You are encouraged to print this book for easy reading.

Foreword

Current info about Forex is not always the easiest thing to locate.

Fortunately, this report includes the latest Forex info available.

Think about what you've read so far. Does it reinforce what you

already know about Forex? Or was there something completely new?

What about the remaining paragraphs?

The foreign exchange market (Forex, FX, or currency market) is a

worldwide decentralized over-the-counter financial market for the

trading of currencies. Financial centers around the world function as

anchors of trading between a wide range of different types of buyers

and sellers around the clock, with the exception of weekends. The

foreign exchange market determines the relative values of different

currencies.

So now you know a little bit about Forex. Even if you don't know

everything, you've done something worthwhile: you've expanded your

knowledge.

Forex Secrets And The Art Of Buying And Selling Any

Commodity

Learning The Mindset Of Powerful Traders And Mastering

The Art Of Currency And Commodity Trading Easily.Chapter 1:

What Is Forex

Synopsis

The Forex options market began as an over-the-counter financial

system for large banks, financial organizations and boastfully

international corporations to hedge against foreign currency

exposure.

Forex option trading has come forth as an alternative investment

vehicle for a lot of traders and investors. As an investment tool, Forex

option trading provides both big and little investors with better

flexibility when ascertaining the appropriate Forex trading and

hedging techniques to apply.

Most Forex options trading are conducted thru telephone, as there

are only a few Forex brokers offering net Forex option trading

programs.

The Basics

A Forex option is a financial currency agreement giving the Forex

option purchaser the right, but not the obligation, to buy or sell a

particular Forex spot contract at a particular price on or before the

expiration date. The sum the Forex option purchaser pays to the

Forex option seller for the Forex option contract rights is known as

the Forex option "premium”.

Either the buyer, or holder, of a foreign currency option has the

option to sell the foreign currency option contract before expiration,

or he or she may decide to hold the foreign currency options contract

till expiration and exercise his or her right to take a position in the

underlying spot foreign currency. The act of using the foreign

currency option and taking the subsequent underlying position in the

foreign currency spot market is called "assignment" or being

"assigned" a spot positioning.

The only initial liability of the foreign currency option purchaser is to

pay the premium to the seller up front once the foreign currency

option is initially bought. Once the premium is paid, the foreign

currency option holder has no additional liability till the foreign

currency option is either offset or runs out.

On the expiration date, the call purchaser may exercise his or her

right to purchase the underlying foreign currency spot position at the

foreign currency option's strike price, and a put holder may exercise

his or her right to trade the underlying foreign currency spot position

at the foreign currency option's strike cost. Most foreign currency

options are not exercised by the purchaser, but rather are offset in the

market prior to expiration. Foreign currency options runs out

worthless if, at the time the foreign currency option runs out, the

strike price is "out-of-the-money”. In easiest terms, a foreign currency

option is "out-of-the-money" if the underlying foreign currency spot

price is below a foreign currency call option's strike price, or the

underlying foreign currency spot price is greater than a put option's

strike price. When a foreign currency option has ran out worthless,

the foreign currency option contract itself runs out and neither the

purchaser nor the seller have any further duty to the other party.

The foreign currency option seller might likewise be called the

"writer" or "grantor" of a foreign currency option contract. The seller

of a foreign currency option is contractually bound to take the

opposite underlying foreign currency spot position if the purchaser

exercises his right. Reciprocally for the premium paid by the

purchaser, the seller assumes the risk of taking a potential adverse

position at a later point in the foreign currency spot market.

Exchanges in the Forex market occur instantaneously. Even the

expert traders and bankers are challenged to make really good and

well-informed trades. A single Forex trade ought to be done after

cautiously considering some factors. According to the expert traders,

it’s easy to trade in the Forex market but for the newbies, it might be a

bit hard. You see, there are some things that you need to consider.

Many traders lose their capital and according to statistics, these

traders make up 90% of the total number of traders in the Forex

market. The other 10% is still split into two wherein the 5% are the

breakeven traders and other 5% are those traders that attain good

results.

The percentage of successful Forex traders is indeed very little as

compared to the unsuccessful ones; because of this fact, a lot of

individuals are scared to invest in the Forex market.

Education is critical if you wish to succeed as a Forex trader. You

ought to have adequate knowledge about the market and each detail

you can learn is very crucial. In fact, in each transaction you make,

you’re bound to learn something that you may use in your future

exchanges.

As a Forex trader, you ought to have your very own strategy or trading

system. A lot of individuals find it hard to follow rules and guidelines

and if you’re like that, the Forex market isn't the place for you. You

have to be very strict in following your devised techniques or trading

system. This is the only way to bring in more profits.

Aside from having your own trading system and techniques, you

ought to be able to analyze and study the price behavior in the Forex

market. Prices tend to alter rather rapidly and so you have to be

prepared at all times. Surprises in the Forex market are natural and

you ought to be prepared for them.

The purchasing or selling decisions of traders are often influenced by

psychological issues. Not all traders are rationally thinking in each

transaction they make and you will be able to use this knowledge to

your benefit. That way, you'll be able to easily decide when to enter or

exit. Successful traders know how to manage their cash or

investment. You have to ensure that the trading account is adequately

funded and you shouldn't enter into any transaction blindly.