Foreign exchange is the simultaneous buying of one currency and selling another. Currencies are traded through a broker or dealer and are executed in currency pairs; for example, the Euro dollar and the US dollar (EUR/USD) the British pound and the US dollar (GBP/USD). The Foreign Exchange Market (FOREX) is the largest financial market in the world, with a volume of over $1.95 trillion daily. This is more than three times the total amount of the stocks and futures markets combined.

Unlike other financial markets, the FOREX spot market has neither a physical location nor a central exchange. It operates through an electronic network of banks, corporations, and individuals trading one currency for another. The lack of a physical exchange enables the FOREX market to operate on a24-hour basis, spanning from one time zone to another across the major financial centers. This fact-that there is no centralized exchange-is important to keep in mind as it permeates all aspects of the FOREX experience.

A spot market is any market that deals in the current price of a financial instrument. Futures markets, such as the Chicago Board of Trade, offer commodity contracts whose delivery date may span several months into the future.

Legion Trade Limited offers various currencies to trade via its online trading platform. The trading volume of the major currencies (along with their symbols) is given in descending order: the U.S. dollar (USD), the Euro dollar (EUR), the Japanese yen (JPY), the British pound sterling (GBP), the Swiss franc (CHF), the Canadian dollar (CAD), and the Australian dollar (AUD). All other currencies are referred to as minors.

FOREX currency symbols are always three letters, where the first two letters identify the name of the country and the third letter identifies the name of that country currency. (The “CH” in the Swiss franc acronym stands for Confederation Helvetica).

FX market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates. Making a transaction on the Foreign Exchange Market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.

In today’s marketplace, the dollar constantly fluctuates against the other currencies of the world. Several factors, such as the decline of global equity markets and declining world interest rates, have forced investors to pursue new opportunities. The global increase in trade and foreign investments has led to many national economies to be interconnected with one another. This interconnection, and the resulting fluctuations in exchange rates, has created a huge international market: FOREX.

For many investors, this has created exciting opportunities and new profit potentials. The FOREX market offers unmatched potential for profitable trading in any market condition or any stage of the business cycle.

Historically, the securities markets have been considered by the majority of the public, as an investment vehicle. In the last few years, securities have taken on a more speculative nature. This was perhaps due to the downfall of the overall stock market as many security issues experienced extreme volatility because of the “irrational exuberance” displayed in the marketplace. The implied return associated with an investment was no longer true. Many traders engages in the day trader rush of the late 1990s only to discover that from a leverages standpoint it took quite a bit of capital to day trade, and the return-while potentially higher than long-term investing-was not exponential, to say the least.

After the onset of the day trader rush, many traders moved into the futures stock index markets where they found they could better leverage their capital and not have their capital tied up when it could be earning interest or making money somewhere else. Like the futures markets, spot currency trading is an excellent vehicle for the pattern day trader that desires to leverage his or her current capital to trade.

Spot currency trading provides more options and greater volatility while at the same time stronger trends than are currently available in stock futures indexes. Former securities day traders have an excellent home in the FOREX market. There are approximately 4,000 stocks listed on the New York Stock Exchange. Another 2,800 are listed on the NASDAQ. Which one will you trade? Trading just the six major USD currency pairs instead of 7,800 stocks simplifies matters significantly for the FOREX trader. Few decisions, less headaches.

The futures contract is precisely that - a legally binding agreement to deliver or accept delivery of a specified grade and quantity of a given commodity in a distant month. FOREX, however, is a spot (cash) market in which trades are executed within the same business day. Legion Trade Limited allows their investors to “roll over” open trades to the next business days. In addition to the advantages listed, FOREX trades are executed at the time and price asked by the traders. There are numerous horror stories about futures traders being locked into open position even after placing the liquidation order.

The high liquidity of the foreign exchange market (roughly three times the trading Volume of all the futures market combined) ensures the prompt execution of all orders (entry, exit, limit etc) at the desired price and time. The Authority governing futures exchange authorized the exchange to place daily limit on contract that significantly hamper the ability to enter and exit the market at the selected time and price. No such limit exists in FOREX market.

Opening an account with Legion Trade limited is easy and simple. Once you have completed the online application, you will receive secure email stating your username, temporary password and a guide on how to fund your trade account.

INDIVIDUAL ACCOUNT
An Individual is an account in your own name and gives you access to the account funds and live trading. An Individual Account can also be opened in the name of a trust, where the trust officers have access to the account funds and live trading.

JOINT (SPOUSAL) OR CO-OWNER ACCOUNT
A Joint Account is an account between you and your spouse (spousal) or you and another individual (co-owner). A joint account allows both applicants to have access to the account funds and live trading.

CORPORATE, PARTNERSHIP OR LLC ACCOUNT
A Corporate, Partnership or LLC Account is an account in the name of a corporation, partnership or LLC and gives certain officers of the corporation, partnership or LLC access to the account funds and live trading.

To help fight the funding of terrorism and money laundering activities, Legion Trade is require to obtain, verify, and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

1  Define how long you can trade.

2  Define the currency pair you feel the most comfortable with.

3  Choose the tradable amount. (Lots)

4  Before opening a position, you have to consider how much profit you
    intend to make or how much loss you are prepared to lose. Depending
    on your analysis, place stop and/or limit orders.

5  Open your position or place an entry order.

6  Follow significant news events and technical indicators which you can
    either consult in our charting software or our live news feed windows.

Currencies are quoted in pairs, for example – EUR/USD or USD/JPY. The first currency in the pair is called the base currency and the second is called the counter currency. The base currency is the ‘basis’ for purchases and sales. For example, if you buy EUR/USD, then you acquire Euros and sell Dollars. You do this if you expect the Euro to grow against the Dollar. Also please note that no physical currency delivery will be made.

A security deposit is not, as many traditional traders suggest, the payment in cash for purchasing market shares. A security deposit is in fact a guarantee or a trust deposit, providing protection from losses during a deal. It allows traders to open positions on amounts that greatly exceed their account limits and so increase their buying power. Legion Trade Limited offers a 1% security deposit (or leverage), which means you can control 100 times your deposit in the real market. If the funds in the account, in the course of trading, fall below the prescribed Security Deposit, your open position will be hedge automatically. Using this system, the client’s account cannot go overdrawn even under volatile, fast-changing market conditions.

Withdrawing funds from your Trade Account is easily done by logging into your trading platform and submitting your withdrawal request by pressing the payment button on the top right hand side of your screen. Withdrawal requests are processed within the period as defined in the Trading Agreement signed between us.

Formulating a trading plan should include :
1  the initial entry position,
2  the risk management loss objective
3  the targeted profit objective

Trading style is what criteria you use to make selection in various arrears of trading. A trading style does not develop out of blue but will emerge as you make your fist trade. Once you start trading, continue to think about your trading style from time to time. Giving yourself feedback on ongoing basis is the best way to stay fresh and about getting in a rut or just plain going nuts from watching the markets.

Trading successfully is by no means a simple matter. It requires time. market knowledge, market understanding and large amount of self restraint. Anyone who say you can consistently make money in foreign exchange market is being untruthful. Foreign market is by nature a volatile market. The practice of trading it by way of margin increase that volatility geometrically.

We are therefore talking about a very fast market that is naturally inconsistent. Following that concept, it is logical to say that in order to make successful trade, a trader has to take into account technical analysis and fundamental data and make an informed decision based on his or her perception of market sentiment and market expectation. Timing a trade correctly is probably the most important aspect of a trading successfully, but invariably there will be cases where trader’s timing is off. A successful trader does not expect to generate returns on every trade.

What you need to do in order to increase your chances for profitable trades :

Trade with Money You Can Afford to Lose
Trading Forex markets is speculative and can result in loses. It is also exciting, exhilarating and can be addictive. The more you are involved with your money, the harder it is to make a clear-headed decision. Money you have earned is precious, but money you need for survival should never be traded.

Identify the State of the Market
What is the market is doing? Is it trending upwards or downwards? Is it in a trading range? Is the trend strong or weak? Did it begin long ago or does it look like a new trend forming? Getting a clear picture of the market situation is laying the groundwork for successful trade. No matter how complex and leading-edge your strategy might be, it never hurts to sit back and eyeball the charts. Market often have a remarkable rhythm. Look for the following :

     •  The length of the primary trend versus the secondary trend
     •  The average time between tops and bottoms
     •  The average range of a bar, whether you are watching 1 minute chart,
        5 minute, or daily data.

Trading without a stop-loss limit order: Neglecting to set a stop loss is asking for financial disaster. In the event of a power outage, you may receive a margin call in the time it takes to reboot your computer.

Trading without a take-profit limit order.  Always set a reasonable takeprofit limit order. Again, in the event of a power outage, the market may hit your expectations and reverse to the market entry price (or further) in the time it takes to reboot the computer. Always remember: when a trade is beginning to move favorably, you can always adjust your take-profit farther from the market entry price

Using too much of your margin.  Your margin requirement is recalculated with each price change. This is especially noticeable when you have sold a position and the price is advancing. For small-capital traders, we recommend never using more than one-third of the total account balance on any single trade.

Overconfidence.  “Pride goeth before destruction, and a haughty spirit before a fall. ” Try to keep everything in the proper perspective. False expectations. Currency trading offers no guarantees. Do not become discouraged over losses. After all, you are not risking monies earmarked as your survival fund.

Trading without a plan.  Never enter a trade without first examining the big pictures. Scrutinizing the 5 minute chart alone is usually not sufficient. A long-term trend may be in motion, which is not clearly visible in a short time interval chart. Also, any available technical and / or fundamental analysis on targeted currency pair is also beneficial.

Never add to a losing position.  Exit the losing position, take a break, and start over. Compounding your loss will not force a price reversal.

Don’t exit because of whipsawing.  When a market begins whipsawing near your market entry price, there is no urgency to liquidate the position. Monitoring extended periods of whipsawing is like watching paint dry, the market is simply building up energy to make a significant breakout. In fact, most technicians feel that whatever price direction was in motion prior to whipsawing will resume in that same direction after the whipsawing period. Patience is a trading quality that must be learned.

Lack of focus.  Pay very close attention when initiating a new order. The two most common mistakes are entering the wrong action (buy or sell) and mistyping the number of units to trade. Neither can be corrected once the entry order is executed except by liquidation.

Clouded judgment.  Never let the results of a sour trade affect your judgment criteria for the subsequent trade. Each trade is a separate entity. Simply reversing the market action (buy to sell or sell to buy) after a loss does not guarantee that the current trend will continue.

If in doubt, don’t trade.  This speaks for itself. It is always better to make no trades than a series of costly trades. Take the day off or at least wait an hour or two.

The following guidelines should be reviewed even when things are moving smoothly:

1  First, take a break. The markets will always be there for you to trade again.

2  Review your performance log in detail. Pinpoint your strengths and your
    weaknesses.

3  You may need to increase or decrease the number of pips that you are
    using to set the stop-loss and take-profit limit orders.

4  Determine if you are entering the market too early or too late. Proper market
    timing is the key to profitable trading.

5  You may want to lower the number of lots traded (temporarily) simply to
    re-bolster trading confidence.

6  Try trading at different times in the day even if it means getting up early.
    Also, there is no reason that you cannot trade any of the six major USD
    currencies pairs once you gain some trading experience.

7  LEGION TRADE trading platforms provides an Activity Log that itemizes
    the details of each trade. Display the log on the screen (or even print a
    hard copy) to scrutinize any shortcomings on your part.