This book serves as a basic beginner’s guide to the Forex and Futures financial world. It is intended for readers with very limited knowledge of both markets. Language of this book is intentionally simple and easy to understand even for people who are being intimidated by complicated financial terms. The author based contents on her own experience dealing with clients while working as a series 3 broker. This 140-page book is a well-crafted attempt to answer many commonly asked questions with various useful tips. Overall, it should be considered as a guide and an essential manual for every beginner ready to learn the basics about Forex, Futures, and Technical Analysis.
Copyright 2009
Retail Price $29.95.

ABOUT FOREX

Forex is simply the abbreviation for the Foreign Exchange Market and it’s been also referred to as the FX in the trading world. Forex is a place where currencies are traded just like stocks are traded on a stock exchange thus could simply be thought of as an exchange for currency.

By far, Forex is the largest financial market in the world, much bigger than the stock or the futures markets. In fact, you have central, private or investment banks, corporations and speculators, all trading in this market which explains its size. Moreover, it’s one of the most liquid markets, simply because you trade moneys thus gaining or losing them directly.

Forex involves buying one currency while concurrently selling another currency in your possession in anticipation that the currency you bought will increase its value compared to the currency you sell. Therefore, currencies are always traded in pairs - buy one and sell another.

You should also note that in Forex there are no underlying physical assets as in case of the futures market and you need to understand this non-tangible nature of Forex clearly before getting involved.

ABOUT FUTURES

Futures trading essentially consists of trading in futures contracts and is done like any other financial trading including the stock market. The difference is that you don’t deal with individual shares but with contracts of enumerated lot sizes based on the specified amount of shares. Therefore, an understanding of futures contracts is essential.

Futures contract is basically a contract stating that you can buy or sell a specific amount of a commodity at a specified date in future (commodity here can refer to physical commodities like rice, wheat, oil, etc. or non-traditional commodities such as foreign currencies, lots of stocks, bonds, etc.). At this specified date in the future, called the Settlement date, the seller must deliver the commodity to the buyer, as per the norms of the contract.

The word future doesn’t refer to future prices but to future settlements. This means that the trading is done in today’s prices, but the delivery is done on a future date. There is no time lag between payment and delivery and you don’t have to take a physical control of the traded commodity instead you deal only with virtual possessions.

Georgia Anderson` Financial News Network, trader, trader education, online forex, daytrader,forex currency, forex software, investors, forex trading, forex.