Forex Education

OnlineForex.biz

Getting Started with Online Forex

OnlineForex.biz is covering major events in the Foreign Exchange industry by also offering educational material, reviews, and broker comparisons. There is a wide variety of articles and trading resources suitable for beginners and advanced currency traders.

MiFID is the European Markets in Financial Instruments Directive (Directive 2004/39/EC)

 

Introducing the Foreign Exchange Market -The Industry & Regulatory Scheme

Forex means FOReign EXchange and it is a 24/5 global market where world currencies are traded one against the other. » More about Forex

Forex is the largest financial market in the world, as the daily volume of transactions is estimated to exceed $4 trillion. Significant currency centers include London, New York, Tokyo, and Sydney.

» Liquidity Providers | » Institutional Forex

As the Forex Market is a non-centralized OTC market, proper brokerage regulation is a top issue for all traders and partners. Regulatory authorities can control Forex brokers to ensure the implementation of legitimate business practices. Additionally, they can impose high penalties and even withdraw a brokerage license if a firm is misbehaving. This means Forex brokers have a serious incentive to conduct business with ethics and transparency.

» More on Forex Market Regulation


Online ForexThe ECN Forex Network and Forex Brokerage Models

The global currency market operates via an electronic communication network called ECN. This network is a computerized system that automatically matches buy and sell orders in the market. This is particularly helpful in connecting participants located in different geographic areas.

NDD & DD Brokers

Before moving forward, we must understand which are the brokerage models in the currency market. Brokerage firms are divided into Non-Dealing Desk (NDD) and Dealing-Desk  (DD):

  • NDD: Non-Dealing-Desk brokers include ECN/STP brokers and provide direct access to the interbank exchange rates. That means traders get a better quotation and faster order-execution
  • DD: A Dealing-Desk or a Market Maker creates a market within the main market. Not a good choice for intraday Forex traders

ECN & STP Brokers

The Forex ECN network works as an electronic bridge connecting large liquidity providers such as banks with smaller market participants such as retail traders. Forex brokers use this network to provide their clients with access to the vast liquidity of the ECN network. These are called ECN brokers and make money by charging only trading commissions.

STP means Straight-Through Processing and refers to a method of transferring retail trading orders straight to liquidity providers, without any dealing desk intervention. STP Forex brokers usually offer a transaction speed between 70 and 150 milliseconds.

» ECN/STP Forex Brokers

Trading Strategy


Forex Educational Resources

Knowledge is power when trading the Foreign Exchange market. OnlineForex.biz includes various educational and technical resources.

Forex Currency Pairs or else an Exchange Rate

A currency pair is a quotation of two currencies (i.e. EURUSD). The first listed currency of the pair (i.e. EUR) is the base currency, and the second is the quote currency (i.e. USD). The most liquid pairs in the Foreign Exchange Market are: EURUSD, GBPUSD, USDJPY, CADUSD, AUDUSD, EURGBP, EURJPY, and NZD/USD

» Most Tradable Forex Currency Pairs

Trading Strategy and Money Management

Selecting and implementing a trading strategy is essential for every Forex trader. Forex strategies may involve several trading styles (scalping, news-trading, swing, etc.) and multiple timeframes {intraday, daily, weekly, or monthly}. A successful trading strategy must incorporate money management principles and reflect the risk appetite of each Forex trader. Money management aims to protect portfolios by helping investors decide how much to risk on any trade based on their total available capital.

» Forex Money Management 

Forex beginners

Forex trading is very demanding and requires a lot of skills to start trading successfully.  The importance of preparation before starting to trade is always highlighted on this website. Education and preparation is the only path to trade profitably in any financial market. You can find several educational resources for Forex beginners:

» Forex Trading for Beginners | » Forex Trading Resources

The MetaTrader Platform & Automated Forex Trading

MetaTrader is a free and very popular Trading PlatformThe MetaTrader platform from MetaQuotes is the standard platform of the Forex industry. There are two versions of MetaTrader, MT4, and MT5, that allow trading Forex, CFDs, and Futures. MetaTrader can meet the requirements of any trader, offering features such as a full set of trading orders, full customization, 1-click trading, built-in language for developing EAs, historical back-testing, depth of the market (MT5), and much more.

» MetaTrader-4 Tips and Tricks

Forex auto-trade refers to a method where a trading system (hardware/software) automatically executes and modifies trading orders in the Forex market on behalf of a certain trading account, without any human intervention. These orders follow certain criteria (rules) that are predefined by the administrator of the system.

» Compare Forex EAs | » Forex Auto-Trade Systems

Forex Trading Orders

A trading order is an instruction to your broker to buy or sell a financial asset on your behalf. The order-driven system in all modern exchanges automatically matches buyers and sellers. Forex trading offers a wide range of trading orders..Generally, trading orders are divided into market orders and pending orders:

  • A market order is an order to buy or sell a financial asset immediately, at any given price. This order type guarantees execution but does not guarantee the execution price.
  • Pending orders are executed at a pre-specified market price. A pending order can be placed in advance, or afterward, a position is opened, it can also be modified at any time. The great advantage of a pending order is its ability to eliminate the risk of slippage.

» More on Forex Trading Orders


News & Events -Covering the Vast Foreign Exchange Market

Find Forex Expos..Forex trading is quite popular around the globe, and this means there are thousands of providers and millions of traders. OnlineForex.biz aimd to cover the main news and events in the Foreign Exchange market.

Forex Expos

There is a great number of high-class Forex expos happening every year. These expos are held all over the world, from New York to Cyprus, Dubai, and Hong Kong. During these events, retail traders and Forex companies have the chance to meet in person and discuss Forex trading. Moreover, Forex expos usually offer a strong educational incentive by offering seminars and workshops, and by hosting important spokesmen.

» Forex Events | » Market News

Forex Affiliate Programs

An affiliate program is a marketing program that rewards individuals for referring clients to certain businesses. These rewards involve three (3) major categories of financial incentives:

  • Cost Per Action: CPA → One-time payment that requires a client registration and usually the first deposit
  • Revenue Share: Paying commissions based on referred clients' trading volumes, these commissions are measured in pips or in lots
  • Hybrid Method: Combining CPA and Revenue Share in one program

» More about Forex Affiliate Programs


Find Online Forex Reviews & Ratings

OnlineForex.biz ratingsForex Reviews

OnlineForex.Biz specializes in trading reviews for brokers and trading systems. You may read these reviews like reading a business card. You may find information about the company, accounts, and trading environment. In addition, you can find Forex Brokers comparisons based on certain important trading aspects:

» Compare Forex Brokers

Forex Brokers Ratings

OnlineForex.Biz has developed a unique rating formula to evaluate Forex brokers. This formula was created by the financial analyst Giorgos Protonotarios, and it is used under license.

The rating formula incorporates various parameters, classified into four (4) major trading aspects:

 Safety of Trading Funds | Trading Cost | Trading Options | Efficient Technology

 Currently, OnlineForex.Biz uses the 2nd version of the formula, but there is also a 5th version of the formula (by the same developer):

» Rating Formula v.1.0 (OnlineForex.Biz) | » Rating Formula V.5.0 (TradingCenter.org)

 

□ Getting Started at Online Forex

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Forex Trading Orders

The Full Set of Forex Trading Orders

Forex trading offers a wide range of trading orders..

  • What is a Trading Order?

A trading order is an instruction to your broker to buy or sell a financial asset on your behalf. The order-driven system in all modern exchanges automatically matches buyers and sellers.

The proper use of a trading order adds control to your positions and significantly reduces risk and trading costs. Different brokers may offer different sets of trading orders, and therefore, when choosing a broker, you must ensure that the full range of trading orders is available.

Forex Trading Strategy and Risk

 Forex Trading Strategy

Designing and implementing a trading strategy is essential for every Forex trader. Forex strategies may involve several trading styles (scalping, news-trading, swing, etc.) and multiple timeframes {intraday, daily, weekly, or monthly}.

 

Key Principles for a Successful Forex Strategy

1. A Forex strategy must be compatible with your trading profile and your appetite for risk

2. Forex strategies will prove more efficient when they focus on a couple of Forex assets than when they cover the whole currency market

3. A successful Forex strategy must keep things simple and clear. Overcomplicated strategies tend to fail in the long run as they are very difficult to implement

Portfolio Management

This article presents three basic investment concepts and a series of significant portfolio management ratios...This article presents three basic investment concepts and a series of significant portfolio management ratios.

 

Three Basic Investment Concepts

  • risk-free rate
  • standard deviation
  • max drawdown

(i) Risk-Free Rate

The 'Risk-Free Rate' refers to the annual return that an investor can secure without taking any market risk. Usually the 'Risk-Free Rate' is calculated based on the annualized interest paid by holding a three (3) month treasury bill. Any investment offering lower returns than this guaranteed rate is considered an unacceptable investment.

  • In the EU, the 3-month Euribor is used
  • In the USA, the 3-month US Treasury bill

Most Tradable Forex Currency Pairs

Online ForexA currency pair or else an exchange rate is a quotation of two different currencies (i.e. EURUSD). The first listed currency of a currency pair (i.e. EUR) is called the base currency, and the second currency is called the quote currency (i.e. USD).

 There are 8 major currencies: United States Dollar (USD), Euro (EUR), Japanese Yen (JPY), United Kingdom Pound (GBP), Switzerland Franc (CHF), Canadian Dollar (CAD), Australian Dollar (AUD), and New Zealand Dollar (NZD)

The are also 7 major currency pairs that are called the 'Majors' and include the US Dollar against EUR, JPY, GBP, CHF, CAD, AUD, and NZD.

These are some of the most tradable Forex currency pairs.

Welcome Aboard

OnlineForex.biz provides reviews, news updates, and educational material regarding the Foreign Exchange market...

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