Monday, October 15, 2007

Making Money with Forex

Foreign exchange occurs when you buy and sell currencies at the same time. This simultaneous transaction occurs in the foreign exchange market that is made up by foreign banks and other institutions or participants that take place in the buying and selling of currencies. There is no exchange in foreign exchange so it is considered OTC or over the counter transactions. Transactions can occur quickly or be rolled over. The spot market is used for settlement of trades within two business days and rollover occurs when open transactions are “rolled over” to the next value date.

Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.

Start FOREX Trading with Marketiva

Marketiva was founded at the beginning of 2005 by a group of financial professionals and computer scientists. Our team has over 30 years of combined experience in financial markets. Marketiva is one of the most popular over-the-counter market makers in the world.

Novativa Streamster™ is a client application you need to download and install on your computer in order to subscribe to and use services provided by Marketiva. When you download and install the application on your local computer, you will be able to access Streamster Server at Marketiva that accepts connections from the client application.

Register free with Marketiva, and you can start trading with as little as $1. They give you $5 real money as signup bonus to help start trading. Also, we receive $10,000 virtual money to practive trading.

You can find lot of helpful information in the Resources section. First read and understand how forex works. Practice trading with the virtual money.


When you start the client application on your local computer, you will be asked to type-in your username, password and the server address where you want to connect to. You then need to type-in your username and password that you received through the registration process on Marketiva.com Web Site. For the server address, please type-in the server address specified above. After a few seconds your client application will connect to the Streamster Server at Marketiva and you will be able to subscribe to and use the services provided by Marketiva.

Few things I would like to share with you that I have acquired in teh process of learning how to trade FOREX with Marketiva

  • Marketiva provides over-the-counter market making services in Forex and Funds; $5 cash reward, so you can start trading right away without depositing your own funds; trading on 1% margin; zero-interest on open positions, no market commissions; virtual and live desks within one account; industry standard variable spreads; latest news, alerts on market events, chat channels, 24-hour support, sophisticated and easy-to-use direct-trading charting tool, and the best online trading experience.
  • The easiest way to start trading is to click on a market instrument in a price window. When [Send Order] dialog shows up, you can set [Quantity] field to 1 or more (depending on the amount of money you have on currently active trading desk). When you click button, the order will go into the market. You can find a collection of introductory articles and various other resources to help you understand trading basics at http://www.marketiva.com/index.ncre?page=resources page
  • The margin requirement on margin trading desks is 1%, which means that if you want to trade with quantity 300, you will need to have at least $3 in your account. When you open a position with quantity of 300, we will lock $3 until you close that position. We temporarily lock the margin ($3) as a security if there are huge movements in the market.
  • Here is an example that will help you understand margin requirements: if you have $15 on your trading desk and you open position with quantity of 1000, used margin will be $10 and you will have $5 left as the available margin. If your loss on the position reaches $5, the position will be closed by a margin call.
  • Long (buy then sell) position and short (sell then buy) position are: a long position is simply one in which a trader buys a market instrument at one price and aims to sell it later at a higher price. In this scenario, the trader benefits from a rising market. A short position is one in which the trader sells a market instrument in anticipation that it will depreciate. In this scenario, the trader benefits from a declining market. For more details, please check http://www.marketiva.com/index.ncre?page=re-orders-and-positions page.
  • If the position is long, close mean sell, Long (buy then sell) position and short (sell then buy) position are: a long position is simply one in which a trader buys a market instrument at one price and aims to sell it later at a higher price. In this scenario, the trader benefits from a rising market. A short position is one in which the trader sells a market instrument in anticipation that it will depreciate. In this scenario, the trader benefits from a declining market. For more details, please check http://www.marketiva.com/index.ncre?page=re-orders-and-positions page
  • As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds.
  • Here is an example that will help you understand margin requirements: if you have $15 on your trading desk and you open position with quantity of 1000, used margin will be $10 and you will have $5 left as the available margin. If your loss on the position reaches $5, the position will be closed by a margin call.
  • No matter if a customer uses the $5 reward or makes additional deposits to create profits, he / she will be able to withdraw all funds at any time.
So, after joining just practice with the virtual money $10,000 for few weeks. It helps you to understand how the trade works and introduce you to new terms which can be understood with the help of live support.

So, within a few weeks time, you should have managed to understand all the terms used in trading and understand the real trade.

You can then start trading with your real money that you received as signup bonus $5. Start with $1 and make yourself confident to do more and more trades.

I hope I have provided you all the necessary details to get you started. i will post new tips on trade that I will learn in my process of learning to trade with profit.

All the best.






Tuesday, October 2, 2007

What is a PIP?

In the Forex market, prices are quoted in pips. Pip stands for "percentage in point" and is the fourth decimal point, which is 1/100th of 1%.

In EUR/USD, a 3 pip spread is quoted as 1.2500/1.2503


Among the major currencies, the only exception to that rule is the Japanese yen. In USD/JPY, the quotation is only taken out to two decimal points (i.e. to 1/100 th of yen, as opposed to 1/1000th with other major currencies).

In USD/JPY, a 3 pip spread is quoted as 114.05/114.08

The smallest price increment in a currency, so instead of a point like in stocks, in the forex market it is called a pip.