Well it is simple for sure, but first you need to understand leverage and risk. Someone else tried to educate you in another thread but you ignored them unfortunately, otherwise you may have learned something http://www.elitetrader.com/vb/showthread.php?threadid=116843
Average is usually 2 on Eur/Usd and Usd/Jpy, 3 on Gbp/Usd and Usd/Chf, maybe 7 or 8 on Gbp/Jpy, reasonable enough.
Yeah I think I'm going to give forex a try. Do you basically have to trade to different markets. You can pair the dollar with the pound or whatever combination. Do you have to be right on both currencies?
I kinda don't get it. You are pairing two different things. So let's say I pair the dollar against the pound. I bet the pound will fall and the dollar will rise. Let's say the pound falls(i was correct) and the dollar also falls (i was incorrect) How does that work....do I break even. Do you basically have to be correct on both currency trades.
it matters on the price of the PAIR....which is a ratio. right now the eur:usd pair is currently at 1.4679. so if you buy the euro (go long) and the exchange rate goes to 1.4779...and you sell...then you made a 100 pip profit. you don't actually just buy a currency, it matters what price you got the currency for in relation to the exchange rate (euro vs usd ratio). the most common pairs are the eur/usd, usd/jpy, gbp/usd, euro/jpy, etc. so just follow the exchange rate and how each currency changes in relation to each other (i.e. the pairs mentioned above.)
Alright I think I understand now. So you are watching the currency rate of the pairs. Is that where your profit lies? How does it work though. Trading commodities is simple. You think gold will go up you buy. I'm assuming everything for the most part is paired against the dollar??? If the euro, pound, can. dollar etc... goes up then the dollar goes down? I'm also assuming there is a lot less capital that needs to be invested than in commodities.
just think of the pairs as ticker symbols, and trade it just like you would anything else. I'm up 235.7% from jan 31st. IM me if u want.
I primarily trade currency futures on CME. I decided on futures rather than spot forex because I wanted to trade options in the same account, because you aren't dealing with bucket shop brokers, you can trade any other futures asset classes in the same account and last, tthose forex commercials on CNBC and Blomberg really annoy me. What about FX on FXMarketSpace or US Futures Exchange? Is anyone currently trading on either of those?