Forex Digest

I'm confuse. i want to start trading but not sure what the differents between Forex , Option, and Commodity? whats is less risker but higher returns? thanks for all your answers. I really like this Q&A in yahoo. so many smart people here and its great to have there ideas on things.

Forex - this is the foreign exchange market in which currency pairs are traded such as the USD/CAD. Within this market you can trade the spot market, which is the most recent price changes, similar to buying and selling stocks, typically through the use of leverage (for every $1 put up you could control $100). You can also trade futures and options on the future price of currencies. The more leverage you use the more risk but the higher the potential return.

Optios - this is a contract that gives you the right but not the obligation to buy the underlying security at a set price before a set date. A call option gives you the right to buy while a put option gives you the right to sell. While you effectively control a lot more of the underlying security with a smaller outlay with an option they are a risky investment for the average investor.

Commodities - in terms of the commodity market this is simply the trading of commodity products such as oil, gold, beef, etc. The typical way to trade these are through futures, which is a contract to purchase or sell the underlying commodity at a set price by a set date. This market is considerably more advanced and risky for the average investor.

For more information on each:
Commodities - http://www.investopedia.com/articles/tra ding/05/021605.asp
Forex -
http://www.investopedia.com/university/f orexmarket/
Options -
http://www.investopedia.com/university/o ptions/

2006-12-17 12:57:45 by john doe

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Anybody can tell me how forex options affect forex market? Do they actually affect the market only when they are exercised? Does an exercise of a forex option occur at the same time as a sell-off of the option? (My understanding is that when an option expires, you have to exercise it then sell it to make profit)
OK, for more clarification, my understanding is that, when an option is exercised, you open a position at the stated price. But I don't know if the opened position has to be closed immediately. Correct me if I am wrong.

Typically, what happens is you will be given the difference between the strike price and the current market price, as clearly the Writer of the Option cannot physically deliver a curreny pair at an older, lesser price than the market. So they owe to indemnify you, or place in you in a financial position similar to that as if you have the currency pair at the current market value.
Now as for option contracts, YOU DO NOT need to exercise them if they are about to expire. That would make no sense, as if they are 'out-the-money' you would lose money. A contract can expire, leaving you out the contract's premium.

Hope this helped

2007-12-26 14:09:15 by Pat

There quite a number of companies promising good returns in forex,some of them are promising upto 5% returns. Any body knows dealing with forex which are not scam.
can anybody also give me names of companies that can invest forex on my behalf.I am uninitiated as far as forex dealing is concerned.Any company that ican invest in forex ,they do the neccessary investmentand give me back the returns/profit

My dad does a lot of forex trading and has made great money off it. He has friends that started out with 100 grand and are now billionaires.

2006-04-13 20:04:02 by memagna

Hello guys,

I'm interested in learning more about forex, options and futures trading. I heard that there are mini or micro account that can go as little as US$ 200 or 300 dollar. Is it true ?


Also, any recommendations for free forex, options and futures trading simulators ? I know that some websites provide this service but usually the virtual capital is too high (10K or up), and I want to set the initial capital to small amount like US$ 300 or 500.


If possible, is there any recommendations for courses/books ? I'm not aiming for those "fancy" amount of income, several thousand/month is OK. Of course I'm not looking for courses that cost hundreds or thousands of dollars...
Thanks for the input. I agree that it's a bit too much to expect thousands of returns for such a small amount of capital.

But, if I expect my capital which is around 300 or 500 to be doubled by around 1-2 month. Doesn't is sound possible ????
My plan is actually something like this :
The capital will be 300 or 500. The goal is to double the capital by around 1 - 2 mounth(s).
When I have more money, I will buy more lots...

To make it safer, every time I manage to double the previous capital, I will do one more time before I plan to use more capital to trade.

It will be something like this (US$500 capital) :
500 - 1000 - 1000 (don't use for trading) - 2000 - 2000(don't use for trading) - 4000 and so on ...

Now the problem is to find the system that are able to do this... Any recommendations ?

I personally distrust systems that cost hundreds or thousands or dollars. There are simply too many scams...

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2007-04-14 21:13:37 by 06294086

how much do we need to be really investing? i'm really interested...just that i have no idea how it works...thanks

if you haven't done yet, you need to read books, prints and online alike, and try to understand the methodology as much as you can. i can't tell you much about the other investment opportunities but when it comes to forex, i could surely recommend this site. being one of the leaders in forex business, this is a very legitimate, trusted and reliable site. simply register and download a Free Forex Ebook for your initial reading. if you want to accelerate your learning process, you may open a mini account for a hundred dollars and you will be provided a personal Account Service manager (ASM) to walk you through the basics, giving you not only the idea on how forex works but also the tips and strategies you need to be profitable. your ASM will be your personal mentor, consultant and trading partner as well. aside form the mini, they also have other accounts namely, gold,platinum and vip- the higher account you choose entitles you to better trading features and benefits. all the best.

2008-10-18 05:08:46 by Laney