If you are keen of trading Forex, it is crucial for you to know some important things before you execute your invest activities in online trading in the paper trade.To understand the Forex is all about understanding the importance of exchange rates. In finance, the term Forex rate refers to the disparities between two specific currencies in terms of worth. In other words, you will need to understand how one currency is worth with respect to another currency. I will give you an example. An exchange rate of 1 Singapore Dollar to the United States Dollar, would be, at current check, at a value of 0.67. This means that 1 Singapore dollar is worth about 60 American cents. In the Forex market, there are many types of rates that decide the worth of currencies when compared to another.

This is the main drive of the Forex market. This is also how investors make their money, in the hope that when currencies rise and fall due to a multitude of global and economic, and political conditions; they can predict these movements, invest in the right currency and make some money. The increase in currency value can be measured in percentage in points (pips), which can be both positive or negative value.

The more positive pips an investor makes, the more money he will accumulate. In terms of the rate though, there are several other things you as an investor should know about. This is especially pertinent if you are a novice or a beginner, or have been investing in other forms of commodity markets and have no idea about the mechanisms of the Forex market.In the Forex rate, there is a thing called current exchange rate which is also the spot exchange rate.This is the rate that is reflected by banks and tellers (region specific).

Then there is also the forward exchange rate where the exchange rate is quoted and traded on the same day, but paid for and delivered only in the future upon agreement between 2 investors. An exchange rate citation is prearranged by positioning the amount of units of “term legal tender” (or “price legal tender” or “quote legal tender”) that can be purchased in terms of 1 unit legal tender (namely, the base legal tender). An example would be a quotation that cites the EURUSD exchange rate being 1.3210 (1.3210 USD per EUR). The term currency would be USD and the base currency would be EUR.

Do remember to find out more about real and nominal FX rates and how these can effect the domestic currency. There is quite a lot to know about the Forex rate when you think about it and you really need to educate yourself on how it works before you decide to invest in the paper market.


A lot of people may have heard of the forex market and how it is possible to increase your wealth quickly, but not everyone knows where to start to learn forex trading. You may think that currency trading is for the big businesses and organisations, but that is not so. In fact, there are a lot of ordinary retail investors who are into online forex trading.
Online currency trading is the purchasing and selling of currencies in pairs. A typical example is the Euro/US Dollar. The idea of forex trading is to buy a currency at a lower price and sell it at a much higher value. But knowing this is not enough as online currency trading contains a lot of different aspects that not all individuals have proper knowledge of.
If you’re keen to learn forex trading, you can do it alone by reading guide books or learn forex trading online from websites, but it is preferable to attend a forex training course, or practice as an apprentice trader. The currency exchange market is volatile, and new traders may find it difficult because of the risks that it involves.
The last two options are better especially if you are new to the foreign exchange market. This way, you can learn a lot from having experienced instructors guide you while gaining first hand experience.
You have to know the process of forex trading first. Bear in mind that the FX market has no boundaries. So before jumping into the market, you have to know the right entry and exit points.
Knowing how charts work is also an important aspect of online forex trading. As charting applications are easily available today, you can obtain one so that you can study how the market moves.
Another important skill to learn is forex trading psychology. You need to know the mindset to deal with your losses, since you can’t expect to profit at all times. If you make a lot of losses over a short period, perhaps it’s time to stop for a while. Don’t be over confident in trading, or you may incur a lot of losses.
New traders who make money too rapidly may have the idea that they know too much. But you need to know that your good fortune may not last throughout. Good profits often encourage traders to over trade, without considering the risks involved. Discipline is one aspect that you should exercise. Although they may have made some gains at first, beginners are not likely to succeed in the currency exchange market for long without attempting to learn forex trading.
There is no substitute to formal learning. It gives you control over the trade, and you will be confident of making good decisions. It requires a lot of dedication to learn forex trading, but if you are able to do it, you will be rewarded in your profits.


Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.

MG Financial, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's DealStation™ allows them to participate in FOREX trading by providing a combination of live quotes, Real-Time charts, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis