InstaForex Great Race

While surfing the web I have found this excellent opportunity to try your trader’s skills and gilt your pocket. They are starting another traders contest among the DEMO accounts with the prize fund in amount of 22 000 USD. I have to recommend this to everyone because the beginner's can use some practice on the DEMO accounts and maybe even earn a few buck. On the other hand the advanced traders can test their skills against each other.

The Contest consists of four steps.
First step of the Contest starts on the April, 1 2009 and will continue till the end of the month. You can register in the Contest following this link right now. The last day of registration is March, 30. 2009.
At the end of the Contest 11 owners of the most profitable accounts will be announced as happy winners of the money prizes:
• 1 prize – 3000 USD
• 2 prize – 2000 USD
• 3 prize – 1000 USD
• 4 prize – 750 USD
• 5 prize – 500 USD
• 6 prize – 250 USD
• 7 prize – 100 USD + 40 bonus points
• 8 prize – 100 USD + 30 bonus points
• 9 prize – 100 USD + 20 bonus points
• 10 prize – 100 USD + 10 bonus points
• 11 prize – 100 USD + 5 bonus points

Besides the money funds also the bonus points are provided in the first four steps of the Contest "InstaForex Great Race", which can be used in the final of the Contest. Conditions and volume of the bonus points are stipulated in regulations of the appropriate steps.

After the first four steps of the contest, the final will start on the November, 30. 2009 and it will last until the January, 29. 2010.
At the end of the final 14 most sucessful traders will be awarded the following money prizes:
• 1 prize – 5000 USD
• 2 prize – 3000 USD
• 3 prize – 2000 USD
• 4 prize – 1000 USD
• 5 prize – 1000 USD
• 6 prize – 500 USD
• 7 prize – 500 USD
• 8 prize – 500 USD
• 9 prize – 250 USD
• 10 prize – 250 USD
• 11 prize – 100 USD
• 12 prize – 100 USD
• 13 prize – 100 USD
• 14 prize – 100 USD

Anyone can play, you just have to register an account at InstaForex, which is completey free. This is a great opportunity for all of the Forex traders and you shouldn't pass on it. Good luck to all of the contestants!
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What is Forex?

If you would go out on a dinner with your friends or family and you mentioned that you were trading on the Forex market most of them wouldn’t know what you were talking about. The worst thing is that most of the Forex traders that join the Forex market don’t know what they are doing. Understanding what Forex is, is the first good step to your success at Forex trading.

The foreign exchange market (Currency, Forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. Forex transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when world over countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.

Today, the Forex market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements. Since then, the market has continued to grow. According to Euromoney's annual Forex Poll, volumes grew a further 41% between 2007 and 2008.

Forex Turnover

Forex Turnover
Main foreign exchange market turnover, 1988 - 2007, measured in billions of USD.
The purpose of Forex market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, Yen, etc., and the need for trading in such currencies. Since you aren’t buying anything physical this kind of trading can be confusing. When buying a currency think of it as buying a part in that particular country’s economy because the currency rate reflects the economical situation of the country when compared to others.


List of most popular currencies on the Forex market

Forex used to be a closed market because only the “big boys” because you needed between 10 and 50 million $ to open an account. But today, with the development of internet, online Forex brokers have the possibility to offer their services to “little” traders. All you need to start is a computer, fast internet connection and information which you can find on this page also.

This enormous market is like the dangerous sea where you can meet lots of sharks and dangerous waters but at the same time it is the only one where two weeks of trading can hypothetically bring you $1,000,000 out of $1,000 of initial investment.

This is certainly hypothetically because a lot of newbie traders deal with their trades as gambling, that surely bring them to having nothing in the end. You should always keep the phrase "be careful!" in your mind. This market would give you its profit possibilities only if you learn the basic things hard and make lots of demo trading.

The statistics is that as much as 95% of traders come to losing their money at Forex, 5% have profit and less than 1% of traders make large fortune at Forex. You shouldn't produce, sell or advertise anything trading at Forex. Your assets are your knowledge, experience and a small amount of cash.

This market is a platform for banks, transnational corporations and individual traders to change the currencies they possess into other ones. This is the spot Forex market. At this market you can trade with up to 1:400 leverage which means that you'll get $400 on your account for each dollar invested. So, you can trade with the $400,000 sum having invested $1,000 onto your account.

Forex is unique among other world markets because in any time of day and night, somewhere in the world, a financial centre is open for business, banks and corporations exchange currency all the time, with a little lower frequency during the weekend.

Why to trade on Forex?

1. There is no commission fee for trading at Forex.
2. There is no intermediary, you can trade directly at Forex.
3. Forex is open 24-hours a day.
4. Nobody can influence the market for a longer period.
5. High liquidity.
6. Free demo accounts, analysis and charts.
7. Small accounts that allow everyone to try out his luck.

Hope this has answered a lot of questions you were asking yourself about Forex and that you can now start trading. Also make sure that you check out other articles on this blog which can help you earn your fortune.

Good luck to everyone!