Forex-play by the rules

Foreign Exchange Trading (Forex) is an interesting and potentially profitable trade, but there are also significant risk factors. It is essential that you fully understand the implications of margin trading. Let us define a brief introduction to the Forex market, as well as their participants and some strategies that can be applied. However, if you have any questions on certain aspects of trade, you will be able to discuss in more detail and in depth with one of the best dealers Sachs Bank, SaxoTrader.
The terms of trade will be negotiated on an individual basis depending on the volume of your transactions, but in general it is much less expensive compared to other banks and brokers.
If you are going to become a successful currency trader in the Forex, then you need to learn a lot and learn.
One of the main indicators of the foreign exchange market are the economic reports of each country.

And it is not confined to the United States. Traders study the motion of the yen, British Pound, Canadian dollar or the euro (or any other currency, for that matter) and the promotion of economic news and reports.
There are many small-scale economic news, some of which may have an impact on the market Forex.


Five major economic news, which is required to monitor a trader:
1. Unemployment
2. Interest rates
3. Consumer price index
4. Trade balance (deficit to surplus)
5. Retail sales

Unemployment
The low unemployment rate is one of the strongest indicators of a strong, solid economy. In addition, the opposite applies to the indicators. Countries with high rates of unemployment is going through a difficult time.
For example, if the unemployment rate is expected to be about 6.5% for the country, as the report goes to 4.9%, while the currency of this country is going to become stronger because of unexpectedly good news.

Interest rates
Interest rates directly affect the strength of the currency. Higher interest rates tend to cause more than the number of currencies, as it will attract foreign investors and traders. Interest rates are one of the major influences on the currency.

Consumer price index (CPI)
Consumer Price Index is a monthly report that the price throughout the country are in comparison to wages. Basically this means that it monitors inflation, which is an important factor in the health of any economy. Sudden jump in inflation is never good news, but in some countries (Zimbabwe), it can be quite disastrous.

Trade Balance
Trade balance is defined as the trade surplus to deficit. This is the number of exports over imports. The deficit means that you will attract more than send. Sometimes you can hear the "trade deficit" of this is not always bad - it depends on the situation.

Retail sales
National report on retail sales might be the best indicator of how the economy operates. In the United States is a monthly report on how the sales going to selected enterprises.

Given these economic indicators and how they affect the market might be better to take fundamental decisions when trading foreign exchange.