The foreign exchange currency market holds the promise of great profitability for those who understand what it is and how to identify the best opportunities as they emerge. It is not a market for the faint of heart, however, or for those who have not taken the time to learn as much as possible about the FOREX market and reach a clear understanding of its many facets. Trading in the Global Currency Markets is a book written especially to help you get to know the FOREX market and give you the knowledge necessary to maximize your chances of being successful.
Why do you need to acquire this information?
The answer to this question is quite simple. If you do not put in the effort to fully learn and understand the many intricacies of the foreign exchange currency market, you will not be successful. In fact, you could lose a great deal of money in a very short period of time. Many people have entered the trading fray of the FOREX market thinking their knowledge of traditional financial markets is all they need, but they quickly find out this is not the case.
Foreign currency trading is tricky because the market is subject to frequent fluctuations and changes. The speed with which opportunities appear and disappear is sometimes no more than the blink of an eye, so without proper knowledge and preparation you simply cannot expect to do well over time.
The good news is there is plenty of money to be made on the foreign currency exchange market if you acquire the key information necessary to understand and participate in the market. Trading in the Global Currency Markets contains a wealth of information to help you, so much in fact that it might be considered one of the best resources available of its kind.
A wide ranging discussion and extensive knowledge base
The foreign exchange currency market is complex, but not incomprehensible by any means. With the wide ranging discussion and extensive knowledge base contained in Trading in the Global Currency Markets you will have the information you need at your fingertips.
Just how robust is this resource on the FOREX market? Take a look at what it contains:
Definition and development – You might be surprised at the long and significant history of the foreign currency exchange market, especially as it has grown in influence since about 1880 or so. A number of key points along its development path (the Bretton Woods Accord, free-floating foreign exchange markets, the European monetary system, etc.) are discussed quite thoroughly, giving you the background and framework necessary to better understand the rest of the FOREX market details.
Characteristics of different currencies – Each currency traded on the foreign currency exchange market is unique, with its own characteristics and specifics. Trading in the Global Currency Markets contains a full discussion of the most dominant currencies in the FOREX market, including the U.S. dollar, the Euro, the British pound, the Japanese yen, and the Swiss franc. Additionally, the overview of currency characteristics also covers ISO codes, the world’s major foreign exchange markets, and the major players in the foreign currency exchange market.
Understanding the risks – Trading on the foreign currency exchange market is extremely risky if you do not have a full understanding of how to do it correctly. Before you can become a solid trader, however, you need to have a firm grasp on the types and nature of risk you will encounter. These risks are related to the exchange rate, credit standing, interest rates, and specific countries, just to name a few.
Understanding the role of central banks – Central banks around the world play a key role in the foreign currency exchange market. The U.S. Federal Reserve is perhaps the best known of these banks, so Trading in the Global Currency Markets provides excellent detailed information about the Federal Reserve and the role it plays in the FOREX market. The book also covers key information about other major central banks across the rest of the “G-7” countries (Japan, Germany, France, United Kingdom, Italy, and Canada) in addition to the United States.
Terms and structure – The foreign currency exchange market has a unique structure and a unique assortment of specific terms to go along with it. You need a thorough understanding of the FOREX market’s price structure as well as the terminology of the FOREX market. The section on terms and structure covers the futures market, the spot market, the forward market, currency fixings, and an extensive list of terms and their definitions.
Corporations and the foreign currency exchange market – The corporate world was for many years one of the few real participants in the foreign currency exchange market, so it’s no wonder the FOREX market has an important role in their corporate finances. There is a great deal of information about the importance of this role as related to different types of corporations and the different types of exposure they may have on the FOREX market. This includes several different points of view as well as information about hedging and the actual execution of foreign currency exchange trading.
Settlement and conduct of the foreign exchange – A number of mechanisms are used to complete settlements on the foreign exchange. These include SWIFT, Advisory Bilateral Foreign Exchange Netting Service, ACCORD, and CHIPS. In terms of actual conduct of trading on the foreign currency exchange market, key information to understand relates to matching systems, dealing systems, direct dealing, and the broker market.
Types of foreign currency exchange markets – The foreign currency exchange market is not just a single monolithic market, but rather several types of markets within the larger whole. These include the spot market, the forward market, the futures market, the currency cross market, and the currency options market. Each of these is discussed in thorough detail, including unique characteristics of each market as well as specific mechanisms and tools of each market.
Strategy and fundamentals – Understanding the fundamentals of the foreign currency exchange market is crucial to understanding and executing successful strategies in different market conditions. The sections on strategy and fundamentals cover all aspects of both areas, linking them together in a way that is easy to understand.
Technical analysis – Foreign currency exchange market traders use technical analysis extensively, so of course you need to have a good understanding of what it is and how it works. The section on technical analysis covers a wide range of charts and other mechanisms used in this process.
Other analysis and trading methods – Several other trading methods and types of analysis can be used when trading on the foreign currency exchange market. These include quantitative methods, oscillators, studies, W.D. Gann analysis, Elliott wave, and more. Trading in the Global Currency Markets contains a good discussion of these other analysis and trading methods.
Final thoughts
The key to successful trading on the foreign currency exchange market is establishing a solid understanding of the market itself and how to identify good opportunities as they appear. Because of the complexity of the market and the speed with which it fluctuates, it is critical to spend time with a comprehensive resource to gain the knowledge you need.
Trading in the Global Currency Markets is one of the very best and most thorough resources available on the foreign currency exchange market. It contains clear, easy to understand information about the foundations and development of the FOREX market, giving you the basic knowledge necessary to move into the more detailed information about the mechanics and characteristics of the market itself. There is an excellent discussion of trading fundamentals, trading strategy, comprehensive analysis tools, and many other aspects of trading on this market.
Nobody should enter the foreign currency exchange market without a full understanding of the market because the risks are simply too high. The biggest mistake novice traders make is thinking they can “learn as they go”, which almost inevitably leads to losing a great deal of money in a very short time. If you want to avoid these kinds of mistakes and maximize your chances of turning a profit, consider adding Trading in the Global Currency Markets to your library.