The definitive introduction to FOREX trading
Getting Started in Currency Trading, Fourth Edition is
both an introduction and a reference manual for beginning and
intermediate traders. Starting with a description of the Foreign
Exchange (FOREX) market and a brief history, the book includes an
invaluable section made up of relevant FOREX terms clearly defined
using examples. The FOREX market has grown substantially and
evolved dramatically in recent years, and this new edition is
designed to help the reader to adapt and take advantage of these
changes.
Including coverage of how to open a trading account, a
step-by-step walk through the physical processes of placing and
liquidating currency orders, and information on trading strategy
and tactics complete with fundamental and technical analysis, the
book has everything needed to assist the trader in the decision
making process.
* New edition is revised and expanded to take into account all of
the recent changes in the currency market
* Now includes a step-by-step introduction for the new trader and
additional material on regulation
* FOREX arithmetic calculations are presented in a clear, easy to
understand way
* Recommendations, guidelines, and caveats appear throughout the
book
This new edition of Getting Started in Currency Trading
contains significant new information, including a chapter on
computers and FOREX, managed FOREX, and new information about
regulation, alongside the author's successful trading plan,
designed to help the reader put it all together.
Autorentext
MICHAEL DUANE ARCHER has been an active futures and FOREX trader for over thirty-five years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. Archer currently trades and is involved in several technical analysis research projects. He hosts the FOREX website www.goodmanworks.com.
Zusammenfassung
The definitive introduction to FOREX trading
Getting Started in Currency Trading, Fourth Edition is both an introduction and a reference manual for beginning and intermediate traders. Starting with a description of the Foreign Exchange (FOREX) market and a brief history, the book includes an invaluable section made up of relevant FOREX terms clearly defined using examples. The FOREX market has grown substantially and evolved dramatically in recent years, and this new edition is designed to help the reader to adapt and take advantage of these changes.
Including coverage of how to open a trading account, a step-by-step walk through the physical processes of placing and liquidating currency orders, and information on trading strategy and tactics complete with fundamental and technical analysis, the book has everything needed to assist the trader in the decision making process.
- New edition is revised and expanded to take into account all of the recent changes in the currency market
- Now includes a step-by-step introduction for the new trader and additional material on regulation
- FOREX arithmetic calculations are presented in a clear, easy to understand way
- Recommendations, guidelines, and caveats appear throughout the book
This new edition of Getting Started in Currency Trading contains significant new information, including a chapter on computers and FOREX, managed FOREX, and new information about regulation, alongside the author's successful trading plan, designed to help the reader put it all together.
Inhalt
Acknowledgments xix
Introduction
About This Book xxi
Part 1 The Foreign Exchange Markets
Chapter 1 The World of FOREX 3
IntroductionWhat is FOREX? 3
What is a Spot Market? 4
Which Currencies Are Traded? 4
Who Trades on the Foreign Exchange? 5
How Are Currency Prices Determined? 6
When Do Currencies Trade? 8
How is Money Made in FOREX? 8
Why Trade Foreign Currencies? 9
What Tools Do I Need to Trade Currencies? 13
What Does It Cost to Trade Currencies? 13
FOREX versus Equities 14
FOREX versus Futures 14
Summary 15
Chapter 2 A Brief History of Currency Trading 17
Introduction 17
Ancient Times 17
The Gold Standard, 1816 to 1933 18
The Federal Reserve 18
Securities and Exchange Commission, 1933 to 1934 20
The Bretton Woods System, 1944 to 1973 21
The End of Bretton Woods and the Advent of Floating Exchange Rates 21
International Monetary Market 22
Into the Millennium 22
Arrival of the Euro 23
The CFTC and the NFA 25
Summary 25
Chapter 3 Five FOREX Markets 27
IntroductionSpot, Futures, Forwards, Options, Spread Betting 27
Currency Futures 29
Contract Specifications 29
Currencies Trading Volume 30
U.S. Dollar Index 30
Volume and Open Interest 31
Where to Trade Currency Futures 33
FOREX Futures 33
Summary 33
Chapter 4 Regulation: Past, Present, and Future 35
Introduction 35
Regulation in the FOREX Market 35
Regulation Past 36
Regulation Present 39
Regulation Future 43
Summary 44
Part 2 Getting Started
Chapter 5 The Language of FOREX 47
Introduction 47
Currency Pairs 47
Major and Minor Currencies 48
Cross Currency 48
Exotic Currency 48
Base Currency 48
Quote Currency 49
Pips 49
Ticks 49
Margin 50
Leverage 51
Bid Price 52
Ask Price 52
Bid-Ask Spread 52
Quote Convention 52
Market Maker and ECN 53
Transaction Cost 53
Rollovers 54
Correlation 54
Summary 55
Chapter 6 FOREX by the Numbers 57
Introduction 57
Pips 58
Profit and Loss 59
Margin 60
Leverage 62
The Bid-Ask Spread 62
Profit Threshold 63
For Futures Traders 66
Summary 66
Chapter 7 A Guide to FOREX Trading Platforms 69
Introduction 69
Trading Platform Features 71
More Trading Platforms 79
Professional FX Platforms 80
Trading Platform Checklist 81
A Kid in the Candy Store 82
Summary 82
Chapter 8 Selecting a FOREX Broker 83
Introduction 83
Broker-Dealer Due Diligence 84
Demo Accounts 85
Market Maker or ECN? 86
Costs 87
Liquidity Providers 89
Customer Service 90
Trading Pair Palette 91
Financial Stability 91
Complaint and Error Resolution 92
Account Options 92
Games Brokers Play 93
Top Broker-Dealers 93
Popular Broker-Dealers 99
The Big Four Broker-Dealers 100
For the Professional and Non-U.S. Trader 101
Spread Betting 102
Fraud, Scams, and Off-Exchange 103
Broker-Dealer Checklist 103
Summary 103
Chapter 9 How to Open a FOREX A...