Mini Forex

Work on mini-forex means work with contracts less than 100 000$. Mini-forex offers an opportunity to receive the services equal to those that traders who work with several thousands/tens of thousands dollars deposits receive, but depositing only 100$.

When trading on mini-forex a trader just makes less than 1.0 lot deals. Till 2003 there was difference between mini-forex and forex in trading terms. Till 2003 3$ commission was charged for each transaction on mini-forex without reference to the transaction volume.

Forex is an interbank market with the minimal transaction size $1 mln. A logical question occurs – How transactions of $10,000 size, made on miniforex, get into the interbank market? Broker is clients’ counterparty for such transactions. If a broker has a lot of clients who trade on mini-forex he can transfer a joint client position to Forex. If a company works for a long time and has thousands/tens of thousands clients (both on Forex and mini-forex), then as a rule the joint client position is transferred to Forex and a broker isn’t interested in his clients to lose. Every client’s transaction (without reference to its financial result) brings 1-2 pips to broker. The more successful a client is, the more transactions he/she will make and the more profit a broker will take. So, work on mini-forex in large companies doesn’t differ from work on Forex. Read rest of these entry>>>

New to FOREX?

Knowledge is the key to success.Trading in financial markets can be profitable but risky. Is it very difficult to makemoney in the Forex market? Definitely not, provided you know all about Forex and
currency trading. It is very important to know everything you can about Forex and currency trading before you start trading. For those of you who are new to Forex, the information given in this section covers the basics of currency trading. Alpari recommends that you read it carefully and open a demo account before you start trading with us on a live account.

In this section you will find articles on trading, written by our experts. More detailed information on Forex and CFD is given here. We have also developed a tutorial in order you could better understand how to make a deal. Trading successfully in the Forex market is not an easy task. However, knowing a lot about Forex and currency trading you can make it possible. Read rest of these entry>>>

What is FOREX?

Foreign Exchange Market (Forex) is the arena where a nation's currency is exchanged for that of another at a mutually agreed rate. It was created in the 70's when international trade transitioned from fixed to floating exchange rates, and nowadays is considered to be the largest financial market in the world because of its tremendous turnover.

Probability of earning on Forex is based on the fact that every national currency is a good, as well as wheat or sugar, and a medium of exchange, as gold or silver. As the world is changing so fast, economic conditions of every country (production, inflation, unemployment etc) are getting more and more dependant on each other, as a result, the rate of a currency changes against other currencies. This is the main reason of the process of rate fluctuations. Read rest of these entry>>>

Why FOREX?

Nowadays Foreign Exchange Market (FOREX) is the most profitable sector for your investments. Unlike other financial markets the Forex market has no physical location, like stock exchange, for example. It operates through the electronic network of banks, computer terminals or just by phone. The lack of physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone
to another across the major financial centers (Sydney, Tokyo, Hong Kong, Frankfurt, London, New York etc). In every financial center there are a lot of dealers, who buy and sell currencies 24 hours a day during the whole business week.

Here the most important reasons why Forex is so popular nowadays:

• Liquidity. Forex is the largest financial market in the world, with the equivalent of over 3-4 trillion changing hands daily when the volume on the stock markets is only 500 billions of dollars.

• Flexibility. Because of 24-hour trading participants of the foreign exchange market would not wait to react on some events, as this happens on other markets (for example: stock markets). On other markets you simply can be late if you have to wait till morning to show your reaction, as in the morning
the event will be already in the price, greatly differ from the desired level.

• Lower transaction costs. Traditionally the Forex market has no commissions, except spread, the difference between ask and bid prices.

• Price stability. High liquidity helps ensure price stability, when unlimited contract size can be executed at a fair price. It helps to avoid the problem of instability, as it happens in the stock market and other exchange-traded markets because of the lower trade volume, where at one price only limited number of contracts can be executed.

• Margin. Margin size for trading on Forex is defined in the contract entered between a client and a bank or a brokerage company, which gives the opportunity to enter the market for the individuals and usually it is 1:100. So, the collateral of 1000 US dollars allows a trader to make deals on $100.000.
Such high leverage combining with the rapid rates fluctuation make this market profitable but at the same time extremely risky.

FOREX may be classified by several features:

Type of transactions. For example, there is an international conversion market (conversion transactions such as US Dollar / Japanese Yen or US Dollar / Canadian Dollar etc.).

Geographic feature. Unlike other financial markets the Forex market has no physical location, like stock exchange, for example. It operates through the electronic network of banks, computer terminals or just by phone. The lack of physical exchange enables the Forex market to operate on a 24-hour basis,
spanning from one zone to another across the major financial centers (Sydney,Tokyo, Hong Kong, Frankfurt, London, New York etc). In every financial center there are a lot of dealers, who buy and sell currencies 24 hours a day during the whole business week. Trading session starts in Far East, in New
Zealand (Wellington), then Sydney, Tokyo, Hong Kong, Singapore, Moscow,Frankfurt-on-Maine, London and ends in New York and Los Angeles. Read rest of these entry>>>