Forex Questions & Answers

[ForexWolf]

Here ya go--a Forex Q&A thread for any questions about Forex, how to get into it, methods or indicators, or if you have any suggestions for thread topics you would like to see here in the forum(books, trades, broker choices, education topics etc etc..).

FXW

[Ciao]

Hello FXW
the other day, I did post this on th ewelcome thread

first question
the prices on €$ are bid 1.3625 ask 1.3628
then on the buy/sell 25 /28 there is a small 2 above…. what that mean??
Same as £$ bid 03 with a small 1 ask 08 a small 6

hope you can understand what I mean

I use Foex.com, but not very happy, not valid explanation for a beginner IMO

I am doing very bad, because I can't follow my trades.... and yesterday in 2 occasion I couldn't open it....

thanks for your time

[ForexWolf]

Originally Posted by Ciao

Hello FXW
the other day, I did post this on th ewelcome thread


hope you can understand what I mean

I use Forex.com, but not very happy, not valid explanation for a beginner IMO

I am doing very bad, because I can't follow my trades.... and yesterday in 2 occasion I couldn't open it....

thanks for your time

Howdy,
Sorry I missed your question!

I have used Forex.com--which version of the platform feed are you using? It may have something to do with overseas feeds being different than north american--or it could be the exchange rates between the feed and the money base for the country you are in or are demo trading in--I honestly dont' know. They have HTML, Java and a new Downloaded platforms if I recall..and they have been pretty easy and straight forward as I recall... Could be there is a reference number--for instance you see the Euro/$ quoted--it may be quoted or referenced differently in the overseas data--there is a Trading Tools page usually--check to see if there is a reference to that number there.

I really do not recognize the issue you are describing from the platforms I have seen--they have always been pretty easy to follow. Did you try to ask Forex.com directly--they have a 24hr Live chat feature you click on and open a window where you can ask tech, platform or account questions directly...

Sorry if that is not very helpful...but without having seen your issue before I can't advise very well. Perhaps someone else knows what you are referring to and will post a reply soon...:o

FXW

[Ciao]

FXW
Thanks any way
I have to go out now( early morning here) but I will try to find more info
or resolve the "problem"

the trouble with them ... they keep me sending e-mail asking me to open an account but never answer my questions!!! :rolleyes:

good night to you

how much money do you need to have to play in this arena - have heard that you need to have a lot but i don't know what a lot is??

[ForexWolf]

Originally Posted by fireopal

how much money do you need to have to play in this arena - have heard that you need to have a lot but i don't know what a lot is??

You can start trading on mini and micro-mini lots with as little as $250 from most brokers... Forex uses leverage in trading...

DEMO trade and try it out first--its FREE from any broker to open a demo trade account to try out your hands at Forex trading at no risk to you...

For basic understanding and knowledge of what Forex is and how it works etc--go to www.babypips.com and check out the free tutorials--then come back with your questions and we'll help all we can.


FXW

Originally Posted by ForexWolf

You can start trading on mini and micro-mini lots with as little as $250 from most brokers... Forex uses leverage in trading...

DEMO trade and try it out first--its FREE from any broker to open a demo trade account to try out your hands at Forex trading at no risk to you...

For basic understanding and knowledge of what Forex is and how it works etc--go to www.babypips.com and check out the free tutorials--then come back with your questions and we'll help all we can.


FXW

wow that isn't much money at all and if i had known this i woulda been learning and playing this much sooner.... the few that i have spoken with about this have made it sound like you need a bazillion dollars but i think they have a bazillion dollars so that may be why lol

and thanks for link going to check it out now...

ok this looks like a great site and i'm gonna be in school for awhile so will be back when i have a clue b/c $250 is easy to come up with....

[bohogirl]

This is not an 'indicators' question, but rather a 'why' one - hope someone can shed some light for me.

Forex is sort of opposite of what we little people would think.
Took me quite some time to wrap my mind around these:
- Higher interest rates are good for a currency (while, as a consumer, I prefer lower interest rates).
- Weak currency is good for the economy because of the whole export/import thingy.
- Inflation makes currency stronger.

So, now, I come to find out that a when the stock market goes up, currency goes down and vice versa. I.e, look at the dollar when our stock market was soaring, and then look at it over the last few days, when Dow fell. Same with Yen currently - Asian stocks headed for their worst weekly loss since 1990 and the yen for the biggest gain in almost nine years.

Why is that? Why would a strong stock market make currency weaker, or a weak one strengthen the currency?

[norpenny]

Originally Posted by bohogirl

This is not an 'indicators' question, but rather a 'why' one - hope someone can shed some light for me.

Forex is sort of opposite of what we little people would think.
Took me quite some time to wrap my mind around these:
- Higher interest rates are good for a currency (while, as a consumer, I prefer lower interest rates).
- Weak currency is good for the economy because of the whole export/import thingy.
- Inflation makes currency stronger.

So, now, I come to find out that a when the stock market goes up, currency goes down and vice versa. I.e, look at the dollar when our stock market was soaring, and then look at it over the last few days, when Dow fell. Same with Yen currently - Asian stocks headed for their worst weekly loss since 1990 and the yen for the biggest gain in almost nine years.

Why is that? Why would a strong stock market make currency weaker, or a weak one strengthen the currency?

I don't have the whole answer, but part of the problem is that the market is based on debt....the higher the debt then, weakens the dollar and vice-versa.
Our national debt has a tremendous impact on the value of the dollar, and oil prices do as well. When oil is up, the dollar is down, and when oil prices go up it usually helps the stock market, so the correlation is there.

[ForexWolf]

Originally Posted by bohogirl

This is not an 'indicators' question, but rather a 'why' one - hope someone can shed some light for me.

Forex is sort of opposite of what we little people would think.
Took me quite some time to wrap my mind around these:
- Higher interest rates are good for a currency (while, as a consumer, I prefer lower interest rates).
- Weak currency is good for the economy because of the whole export/import thingy.
- Inflation makes currency stronger.

So, now, I come to find out that a when the stock market goes up, currency goes down and vice versa. I.e, look at the dollar when our stock market was soaring, and then look at it over the last few days, when Dow fell. Same with Yen currently - Asian stocks headed for their worst weekly loss since 1990 and the yen for the biggest gain in almost nine years.

Why is that? Why would a strong stock market make currency weaker, or a weak one strengthen the currency?

The answer to this is quite a bit complex....as I have understood it, it has to do with liquidity and banking/spending...but it also has to do with credit and debt and prices. Note tho that it is not a "set rule" to say that when the stock market goes up the dollar will go down--most of the times yes, but not every day....

This is how a "very rudimentary" explaination that I was told on this subject..keep in mind tho there are a lot of other factors--so this is just a "general" description.

When an interest rate goes up--its good for the currency because more folks will buy up that currency & put their money in US dollars and banks and bonds to earn the higher interest rates. This drive to buy up or decrease liquidity of a currency drives up the price as demand is high... This happens when a rate hike occurs and the currency goes up in value so more folks hold onto it.. But it is often bad for the stock markets as less folks are spending that money or investing it into stocks, with the higher interest rate.. This is especially true with foreign investors..their foreign currency will buy less US Dollar because the dollar value has risen--so they are better off holding their cash/euro/whatever..and this decreases liquidity in the stock market so as the Dollar rises--the stock market loses.

The opposite happens when a rate CUT occurs--more liquidity is given back into the markets to spend..and as such the devalued dollar more foreign currencies that are stronger can buy up more dollars--and invest more into stocks.. When a rate cut happens--less incentive to hold onto the money to save and so it gets spent and liquidity flows back into the currency market--more currency available means lesser value as its quite fliud...spending of those dollars goes up and folks take that money and poften put it into the stocks--so the stock market rises while the currency value decreases..


That above description is not the entire full picture however..there has to do with a lot of Credit and debt and prices--we are a nation that lives on credit and incurs a lot of Debt..and those factors such as lending and borrowing of money also play into things.. Another factor--when prices go up and spending goes down--bad for the dollar as that is inflationary. When prices go down and spending goes up--often good for the dollar as inflation lessens.. That is also a consideration...and basically if your dollar buys you less cause prices are high for goods and services--your dollar is weak.. Similar for production and manufacturing issues...

But the above description is how I was told to understand the corrolation between the two for a very bare bones basic understanding.. I'm not an economics guru to fully understand or explain the details...maybe someone else can shed some more light on this subject.. I just present that info for what little its worth as an answer.. Just know there is a lot more to it for a complex answer to why this occurs...

FXW