Let’s jump right into how to spread trade currency, but first a definition of spread trading. There are two different basic types of currency spread trades in currency futures. The first type uses the same underlying currency future such as the Swiss Franc. In a Swiss Franc calendar spread the trader would trade two Swiss Franc contracts each with a different expiration date. The trader would buy one contract and sell short the other contract.

How to spread trade currency – If you want to spread trade two different currencies you can buy one currency at the same time you sell another . For instance, you can buy the British Pound and sell the Swiss Franc.

Successful currency spread trading requires that you are familiar with how currencies move in relation to each other. Spread trading currencies has been popular over the years for it’s ability to be profitable while at the same time having comparatively low risk.

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There are number of different types of Forex trading software. Trading software can do anything from help you design your own trading system to automatically place your trades for you.

Here’s a brief outline of the different types of trading software and what they are used for:

Forex Trading Platform – Your trading platform is the interface between you and your broker. Trading platform software is what makes online Forex trading possible.  Forex trading platform software is downloaded from your Forex broker’s website for you to install on your computer.  Once your account is open and funded you will be able to place trades directly from your computer.  This is one of the greatest things about Forex trading as you can trade from anywhere in the world that has a reliable Internet connection.

Forex System Development Software – System development software is used by traders wishing to develop their own Forex trading systems.  Development software allows a trader to test their trading ideas by using historical data.  This process is called back testing and is very useful for seeing how a particular trading idea might have performed in the past.

Forex Robots – A Forex robots already has a Forex trading system programmed inside of it. It is called a robot because it automatically generate Forex signals for the trader without human intervention. When interfaced with a compatible Forex trading platform a Forex robot can place trades automatically.  This is the ultimate in Forex trading automation.  Keep in mind that before you attempt to allow a Forex robots to trade for you automatically you should thoroughly test and observe it in a demo account without having any real money at risk  Once you are absolutely confident that it performs as it should then you can have it trade in your live funded account.

Forex System Software – Forex system software is similar to a Forex robot in that it generates Forex signals for the trader. The software can be used standalone and generates signals which the trader can then manually place using their Forex trading platform.

As you can see Forex trading software can definitely make life more convenient for the Forex trader. In the case of Forex robots and Forex system software, make certain that you investigate them thoroughly before your purchase.  It is this type of trading software that can mean the difference between success and failure in Forex trading.

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Forex trading platforms serve as the interface between the Forex trader and the Forex broker.  A Forex platform is also called Forex trading software and is downloaded from your Forex broker. These platforms are what make online Forex trading possible.

Different brokers have different platform options.  Fortunately for today’s Forex trader just about every broker offers a free Forex demo account.  This is your broker’s way of allowing you to see the many features of their trading platform as well as get a feel for its ease of use in day to day trading.

Here are some of the features available in many of today’s Forex trading platforms.

Up-to-the-minute equity status – You can see your account balance in real time as the market changes.  It’s not important to watch your account balance constantly, but it is nice to know that you can find out exactly what it is at any moment during the day or night.

One click order placement – Many platforms allow you to simply click on the currency pair you wish to trade as either a buy or sell to enter a position. This is especially convenient and allows you to enter or exit a trade virtually instantaneously.

Trailing stops – For those traders who use trailing stops this is an especially useful feature.  Rather than having to watch the market you are able to set trailing stops to lock in your profit as your trading position goes in your direction.

Automated Forex trading – Certain platforms have the ability to place trades for you automatically based upon the Forex trading system you have chosen.  This is the ultimate in hands-free Forex trading.  Quite naturally, when using such a system is wise to make certain that it works the way you expected by using a Forex demo account first.

Forex charts – It’s very common for today’s Forex trading platforms to have Forex charts included. Trading using charts, especially candlestick charts, has become the standard of many successful Forex traders.

We just covered a few of the many features available in today’s Forex trading platforms.  Before deciding on one platform feel free to take advantage of the many free Forex demo accounts available to you.  Remember that finding a trading platform that you are comfortable with is an important factor in your success as a Forex trader.

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Technorati Tags: Forex Trading Platform, Forex Trading software

There are a number of things that the top Forex traders in the world do in order to trade Forex successfully. Becoming a profitable Forex trader does not happen by accident. Quite surprisingly profitable Forex trading does not need to be difficult if you follow some simple guidelines.

What follows will be a list of those things which must be done, some must be done before you begin to trade Forex and some must be done after you begin to trade Forex.

Decide Why You Want To Trade Forex – It is important to understand why you want to trade Forex in the first place.  You might say that quite obviously everyone wants to trade Forex in order to make money.  You would not be wrong in that statement, but different people will have different reasons in addition to making money.  Some of these reasons may include quitting your day job and trading Forex full time or earning a good living while traveling the world.

All the above are valid reasons as long as they are kept in perspective.  For instance, it would be unrealistic to expect to earn a full-time living trading Forex after your first week of trading.

Have Realistic Expectations – This is one of the most important things that you can do in order to trade Forex successfully.  It’s easy for any of us to find products with exaggerated claims of making unbelievable amounts of money after only trading for a short period of time.  Many beginning traders fall into the trap of thinking that these exaggerated, atypical earnings claims are the norm in Forex trading.  As a result of this many beginning traders abandon perfectly good Forex trading strategies because they may compare the returns with unrealistic returns they see elsewhere.

Have realistic expectations of your Forex trading and realize that much like Rome your Forex trading fortune will not be built in one day.

Have Adequate Working Capital – It is very inexpensive to open an account and begin to trade Forex.  There are micro accounts available that can be opened for a minimum of $25.  Forex mini accounts start at around a $400 minimum deposit level.

It makes perfect sense to open up a smaller account when you are honing your ideas and trading strategies. If your plan is to trade for a living then quite obviously starting off with a $25 account isn’t going to cut it.  There are a number of factors you’ll need to consider in order to determine how much is necessary to fund your account.  Here are a few things which must be considered:

Know Your Trading Profit Goals – If you’re planning on generating $100,000 in Forex trading profits and your trading method can generate 100% return annually then you will need $100,000 in initial working capital.

Know Your Maximum Drawdown – Your Forex trading strategy’s maximum drawdown must be factored in.  Your maximum drawdown is the largest peak-to-valley dip in equity that your trading system has historically experienced.  Here’s a quick example:

If your trading strategy has a maximum historical drawdown of $25,000 you should not open a Forex trading account with only $25,000.  The reason for this is that this leaves you absolutely no breathing room.  If and when your $25,000 trading account experiences this level of drawdown you will no longer be able to trade.  This means that you will not be able to take advantage of any trading opportunities after your drawdown level is reached.

Have A Solid Forex Trading Plan  – Every successful business creates a business plan before they open their doors for business. There is no reason that Forex trading should be any different. Planning is important in Forex trading because planning helps you to keep on track and minimize uncertainty. Your trading plan doesn’t have to be complex for you to trade Forex effectively.

Have A Good Forex Trading System/Forex Strategy  – This may seem obvious, but you would be surprised how many people trade Forex on a whim. There may be a few gifted traders who have an uncanny knack for choosing the right market direction. For the rest of us who wish to trade successfully it’s important that we use a good trading system already proven to yield positive results.

Test Your Trading System On A demo Account/Micro Account – Try hard to resist the sometimes overwhelming temptation to jump in and start trading with a large amount of real money. Practice and perfect your skills first using a Forex demo account. Your demo account will be your "acid test". If you can’t make your demo account grow then it is unlikely that the trading methods you are using will make you money in a real-money account.

It is recommended that you use a demo account to refine each new Forex trading strategy that you use. Remember, in Forex trading practice really does make perfect.

Learn Forex Trading – It may not be the most prudent thing to do to simply buy a Forex robot and let it start to trade for you. In the long run you will be a much more successful trader by learning to trade Forex yourself. Get your Forex education started by reading Forex books, taking a few Forex courses, and practicing what you’ve learned on a Forex demo account.

Trade Only With Risk Capital – Risk capital is also referred to as "money you can afford to lose". This is money specifically set aside for speculation in the Forex market.  Another way to look at this is that if you were to lose all the money in your Forex account that it will not affect your lifestyle in any way.

Trading with money that you cannot afford to lose is also referred to as trading with "scared money".  Scared money is money that you are afraid to lose and will agonize over even to the point of having sleepless nights.

If you can not afford to lose money in your Forex trading account you are treading on dangerous ground. Keep in mind that even a great Forex trading strategy may not deliver the exact profit that you need at the exact time that you need it.  

Never Add To A Losing Trade — This is an easy trap to fall into. None of us is thrilled about taking a loss on a trade. We have to realize that losing trades are a natural part of Forex trading and every single one of the most successful Forex traders in the world has had losing trades.

New traders will often add another position to an already losing trade in order to "get a better average price". They believe that they will at least be able to break even when it goes in their desired direction. Unfortunately what often happens it that the market moves further and further against them. Now what was once a small manageable loss has become a large catastrophic loss.

The moral of the story here is simple. To trade Forex profitably never add to a losing trade.

Control Your Risk — By controlling your risk you control your reward. Never trade a system if you don’t know your risk level. Never enter a trade without setting a definite level to exit the trade if the market moves against you.

Risk control will allow you to "stay in the game" by preserving capital by not allowing for needless, out-of-control losses. Let’s look at an example.

If we have a $5,000 Forex account and decide to risk $2,500 on each trade how many times can we lose? It doesn’t take a rocket scientist to see that the above example was one of poor risk control.

Have Proper Trading Discipline – A lot has been written about Forex trading psychology and trading discipline.  Successful Forex traders know that it is absolutely crucial to trade in a disciplined fashion.  Without trading discipline and the mindset to maintain your discipline all Forex trading tools will be useless to you. Discipline helps you to stay focused and stick to your trading system. Sticking with a good trading system helps you to profit and eventually create wealth. By keeping your emotions in check you will be able to trade forex without guesswork, anxiety, or frustration.

We’ve covered some of the basic things you must do to trade Forex successfully. Each of these are important trading rules which continue to withstand the test of time. Refer to this list from time to time and apply the rules to your own trading. You will find that they will help keep you on the right path to successful Forex trading.

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The most common type of Forex trading done these days is Forex trading online.  Even though many Forex brokers have telephone support where you can place your order over the phone the vast majority of Forex traders enjoy the freedom and independence and flexibility of online Forex trading.

When you trade online you can be in and out of Forex trading position in a matter of seconds.  This is especially important in fast-moving Forex markets because in those markets to profit you sometimes have to be quick.

Forex trading online is done using your Forex brokers trading software which is also known as the Forex trading platform.  Once you open your account and you download and install your software you’re ready to begin.  After that you simply use your username and password and you will be logged into your account and then be ready to place trades.

Online Forex trading platforms vary widely from broker to broker.  Most all of them have a way for you to buy or sell immediately at the market simply by pressing a buy or sell button for the currency pair you wish to trade.  This will be known as the quick trading section of the Forex trading platform.  They’re also more advanced types of orders that you will be able to place and some brokers and allow you to place trailing stops on your order.

Forex trading online is the ultimate in convenience especially for the trader on the go.  You can trade from wherever you happen to have an Internet connection and these days that’s just about anywhere.  One of my favorite features of being able to trade online is to always have instant access to my exact account equity.  It’s nice to be able to see at a glance exactly where you stand at any moment in time. Having this type of instant feedback is why Forex trading online has become so popular.

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Technorati Tags: forex trading online, Forex Trading Platform, forex trading platforms, online forex trading

Fractal geometry Forex gets its fractal component derived from the Latin word "fractus" which means broken or fractured. Benoit Mandelbrot is credited with coining the phrase "fractal" prior to 1980.  Fractal geometry is used to describe shapes which Euclidean geometry simply cannot because of their "non-regular" characteristics.

It is Mandelbrot’s principle of self similarity which make the use of fractal geometry Forex trading grow in popularity.  Fractals exhibit "self similarity" which basically means that the non-regular geometric shapes appear the same whether you are far away or a close up.

Dr. Bill Williams provides a good overview of fractal patterns in his book "Trading Chaos".  In it he describes self similar patterns repeating themselves not only throughout different trading time frames such as hourly, daily, weekly, etc., but throughout different markets as well.

On method of using fractal geometry Forex trading is observing the patterns that take place at Forex market reversals and trading those patterns as they repeat in your chosen timeframe. Inside every monthly reversal pattern there is a weekly reversal pattern that has within it a daily reversal pattern that has within it an hourly reversal pattern, and so forth.

It is well know that even when you want ot catch a big move in the Forex market it is a good idea to look to multiple timeframes to better time your entry. Fractal geometry Forex trading methods will allow you to do just that.

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