Forex Investment and Currency Trading

USD While the USD has exhibited extreme volatility in recent weeks, the overall trend likely remains lower as easy Fed policy and sluggish private capital inflow weigh on the USD.
EUR The EUR surged above 1.45 last week and retreated; while expect another run toward to the 200-day MA, a EUR/USD spike toward its record high appears very unlikely.
JPY The BoJ’s rate cut has eased risks of a JPY surge, but the JPY remains vulnerable to risk appetite developments. Repatriation may keep the JPY firm in coming months despite collapsing exports.
GBP Expectations for weak growth and sharply lower interest rates have [...]

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Averaging into a position refers to the practice of buying / selling at successively lower / higher prices to improve the average rate of the desired long / short position. For example, if you buy one lot of USD/JP at 120.50 and another lot at 120.30, you’d be long two lots at an average price of 120.40.
Take a look at what just happened there. To begin with, you were long one lot from 120.50. To add to the position at 120.30, it means the market had to be trading lower, which also means you were looking at an unrealized P/L [...]

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Live dealing is how you access the market to buy or sell at current market rates. Knowing exactly what you want to do is important, because when you make a live deal, it’s a done deal. If you make a mistake, you’ll have to make another trade to correct your erroneous trade, and that is very likely going to cost you real money.
There are a few different avenues to get to the market depending on how your broker is set up.
Clicking and dealing
Most forex brokers provide live streaming prices that you can deal on with a simple click of your [...]

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Interbank trading rooms are staffed by a variety of different market professionals and each has a different role to play. The typical currency trading room has

Flow traders: Sometimes called execution traders, these are the market-makers, showing two-way prices at which to buy and sell, for the bank’s customers. If the customer makes a trade, the execution trader then has to cover the resulting deal in the interbank market, hopefully at a profit. These traders are also responsible for watching and executing customer orders in the market. These are the traders who are generating most of the electronic prices and price [...]

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