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Question about forex

  • #1
  • First Post: Apr 18, 2007 3:14pm Apr 18, 2007 3:14pm
To anyone out there I just have a very basic question about forex how does it work? (1) Can you pair the currency of choice or do you have to pick from a certain amount of pairs.


(2) Also do you have to predict two markets...when I trade commodities it's very basic I think oil will increase I buy a futures contract...it's that simple. With forex it's different I'm pairing two different currency so am I trying to predict two different markets.

Let's say I pair the dollar with the pound. I think the dollar will go up I think the pound will go down. I'm pairing two markets...do they have to move inversely to each other?
  • #2
  • Apr 18, 2007 8:29pm Apr 18, 2007 8:29pm
Quoting erock
To anyone out there I just have a very basic question about forex how does it work? (1) Can you pair the currency of choice or do you have to pick from a certain amount of pairs.
You can play Any of the Pairs your Borker supports.

Quoting erock
(2) Also do you have to predict two markets...when I trade commodities it's very basic I think oil will increase I buy a futures contract...it's that simple. With forex it's different I'm pairing two different currency so am I trying to predict two different markets.
In a nutshell, Yes/No. GBPUSD is ONE Market.
eg.
NO:
British Pound/Ecconomy Very Strong = Bullish Sterling.

YES:
US Dollar/Ecconomy Mildly Bullish = Bullish Bucks?
British Pound/Ecconomy stagnent = Neutral Sterling.
= Bullockish USDGBP

Quoting erock
Let's say I pair the dollar with the pound. I think the dollar will go up I think the pound will go down. I'm pairing two markets...do they have to move inversely to each other?
Only As compared to each other.
Yes & No. I say this because only One of them can have > 50% of the power shared between them. Therefore, it is inherant that, if the USD is gaining on the Pound, the facts are in. The GBPUSD Chart will show a decline in prices.

What if there is a decrease in price of EURUSD
but also see an Increase in price of GBPUSD
then...
You have just been informed that the "Weakness is in the Euro." {at least graeter weakness than in the G'Back} Act accordingly.

Clear as mud. Right?
  • #3
  • Apr 18, 2007 8:54pm Apr 18, 2007 8:54pm
Quoting Bemac
You can play Any of the Pairs your Borker supports.


In a nutshell, Yes/No. GBPUSD is ONE Market.
eg.
NO:
British Pound/Ecconomy Very Strong = Bullish Sterling.

YES:
US Dollar/Ecconomy Mildly Bullish = Bullish Bucks?
British Pound/Ecconomy stagnent = Neutral Sterling.
= Bullockish USDGBP


Only As compared to each other.
Yes & No. I say this because only One of them can have > 50% of the power shared between them. Therefore, it is inherant that, if the USD is gaining on the Pound, the facts are in. The GBPUSD Chart will show a decline in prices.

What if there is a decrease in price of EURUSD
but also see an Increase in price of GBPUSD
then...
You have just been informed that the "Weakness is in the Euro." {at least graeter weakness than in the G'Back} Act accordingly.

Clear as mud. Right?
Not exactly clear as mud....I trade with elliott wave I have been using this with commodities and having very good success with it. If you could please try to be clear with me.

What I plan on doing is spotting currency that are overbought and pairing them with currencies that are undersold. This is why I ask are your trading two markets
  • #4
  • Apr 18, 2007 9:36pm Apr 18, 2007 9:36pm
I suggest that you take a forex course. Also, check out the links associated with being a beginner on this forum.
  • #5
  • Last Post: Apr 18, 2007 11:49pm Apr 18, 2007 11:49pm
Quoting erock
Not exactly clear as mud....I trade with elliott wave I have been using this with commodities and having very good success with it. If you could please try to be clear with me.

What I plan on doing is spotting currency that are overbought and pairing them with currencies that are undersold. This is why I ask are your trading two markets
Be careful, the words "overbought" and "oversold" are subjective. You're basically saying you want to pick tops and bottoms, which is a risky business. Good luck to you.
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