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The transaction costs are calculated in terms of pips. Profiting from FOREX fx is the greatest to the trader when the spread between the bid/ask is the lowest number of pips required per trade by the broker. By comparing pip spreads of a half dozen brokers or so will reveal different transaction costs.
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For traders, Forex trading provides an alternative to stock market trading. While there are thousands of stocks to choose from, there are only a few major currencies to trade (the Dollar, Yen, British Pound, Swiss Franc, and the Euro are the most popular). Forex trading also provides a lot more leverage than stock trading, and the minimum investment to get started is a lot lower. Add to that the ability to choose flexible trading hours (forex trading goes on 24 hours a day) and you have the reason why so many stock traders have flocked to day trade currencies.
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As you can see many factors have a major influence in the Forex game. Please leave the speculating to the experts unless you trade on the forex as a hobby and don't have a lot of money invested.
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The highly liquid and volatile currency markets offer opportunities for speculators every day. Most speculators tend to focus on the so-called �majors,� which are the most actively traded currencies and include the U.S. dollar, the euro, the Japanese yen, the British pound, the Swiss franc, the Australian dollar and the Canadian dollar.
More Forex InfoDaily Forex Market Commentary for December 1, 2006Sat, 02 Dec 2006 04:20:00 GMT
GFT Daily Forex Market Commentary for December 1, 2006
Forex Market Commentary by Cornelius Luca, Currencies Analyst, GFT
The dollar made a collapsing decline on Thursday, due to pure spec and rumored corporate orders.
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