Basic Fundamental Analysis in Forex

Learn about the basics of fundamental analysis in Forex

Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. Fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis: Supply and demand, seasonal cycles, weather and government policy.

USD EUR Currency Pair

There are four fundamental determinants to the USD EUR Currency Pair Forex Exchange Rate

Four factors are identified as fundamental determinants of the real euro to dollar exchange rate: The international real interest rate differential; Relative prices in the traded and non-traded goods sectors; The real oil price; The relative fiscal position.

The basic theories underlying the dollar to euro exchange rate:

Law of One Price

In competitive markets free of transportation cost barriers to trade, identical products sold in different countries must sell at the same price when the prices are stated in terms of the same currency.

What is a Basis Point?

Definition of a Basis Point: A commonly used financial jargon in describing interest rates or forex trading price movements

In financial terms, a basis point is one percent or one hundred pips. For example, having a quote of 1.3493 EUR/USD - to move one basis point the currency would need to increase by 100 pips. So a move from 1.3493 to 1.3593 would be a move by one basis point.

What are Pips?

What is the definition of a pip? A term commonly used on forex trading

In forex trading, a PIP is the abbreviation of "Price Interest Points." Most traders measure their forex trading profits by counting pips. One pip is one-hundredth (1/100) of one percent (1%) of a currency contract price. For example, if the AUD/USD currency pair was to move by one pip the price movement could be from 0.7483 to 0.7484.

Actual Forex Trade – Post Interest Rate & Federal Budget

In this eBook we will have a look at two of my trades taken a week after the Australian Interest rate hike and during the week

The Australian dollar has been particularly active against the US dollar as of late. So what are the main forces behind the volatility in the Aussie dollar?

Forex = Stock Market on Steroids

I compare and discuss the differences between forex market trading and share market trading

To be honest I haven't been trading the stock markets for a while now. It's not because the markets are in a downturn at the moment it was simply a conscious decision to give the forex markets a go using the same technical indicators I use in the stock markets in an attempt to make similar returns or more. And after a few months of currency trading I’ve concluded that the forex markets are simply like the stock markets on steroids from a traders' perspective.

Forex Trading Hypothetical eBook

Forex Trading Hypothetical eBook For Your Downloading Pleasure

This is my second free trading ebook. Its about trading forex (again), but the same technical analysis prinicples are used in trading stocks - such as basic usage of support and resistance as well as trading channels are explored. In this eBook I look at a "trading hypothetical" - basically a trade that I didn't participate in, but I observed the characterstics of the trade. You can download your copy of the eBook here.

Forex Trading with CMC Markets

I was bored last night so I traded Forex with CMC markets using their Marketmaker platform

I trade both stocks and forex. I trade forex for profit, more more importantly to execrise my risk management discipline and keep my and technical analysis skills sharp - as the forex markets are mostly traded on a technical (besides the economic fundamentals that do affect these markets). So, when I was bored last night, I went to try out some forex trading using the CMC Marketmaker platform that CMC markets uses.

Where can I learn how to trade the markets (Futures and Options or even Forex)?

Learn to trade the stock market from a website

Where can I find a great FREE website that teaches stock market Trading and Investing?
It could be anything from stock market trading to Futures and Options or even Forex. Could be Day-trading, Online-trading, etc. Please feel free to list as many websites as you might know about - as long as they are FREE. Also, any good book suggestions and/or tips?

First of all - you should focus your learning on one or the other. I'm a trader myself and trading and investing are two totally different things.

Forex Trading Information: Beware of Frauds

For new traders this forex trading information is critical in starting off your trading career on a clean slate.

You may have been solicited to trade “foreign exchange contracts” or “forex”. For new traders this forex trading information is critical in starting off your trading career on a clean slate. Frauds are infiltrating the forex trading grounds and it is critical to your success to be aware of the frauds that abound the markets. Be aware of these frauds being perpetrated in the financial markets to safeguard your forex trading. So when you consider and shop around for a forex broker be sure that this forex trading information serves you well.

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