Mar 29 - Apr 4 Filter
Date 12:18pm Currency Impact Detail Actual Forecast Previous Chart
Sun
Mar 29 5:45pm NZD Building Consents m/m 11.6% 13.0%
6:21pm AUD HIA New Home Sales 3.9% 8.6%
6:30pm USD Treasury Sec Geithner Speaks
7:50pm JPY Prelim Industrial Production m/m -9.4% -9.1% -10.2%
Mon
Mar 30 4:30am GBP Net Lending to Individuals m/m 1.3B 1.3B 1.2B
4:30am GBP Mortgage Approvals 38K 34K 32K
5:00am EUR Consumer Confidence -34 -33 -33
10:30am EUR ECB President Trichet Speaks
11:30am USD FOMC Member Duke Speaks
2:05pm CAD BOC Gov Carney Speaks
7:01pm GBP GfK Consumer Confidence -35 -35
7:15pm JPY Manufacturing PMI 31.6
7:30pm JPY Household Spending y/y -4.6% -5.9%
7:30pm JPY Unemployment Rate 4.3% 4.1%
8:00pm AUD RBA Deputy Gov Battellino Speaks
8:30pm AUD Private Sector Credit m/m 0.5% 0.6%
9:30pm JPY Average Cash Earnings y/y -1.4% -1.3%
10:00pm NZD NBNZ Business Confidence -41.2
10:20pm AUD RBA Assist Gov Debelle Speaks
Tue
Mar 31 1:00am JPY Housing Starts y/y -17.6% -18.7%
2:00am CHF UBS Consumption Indicator 0.99
3:55am EUR German Unemployment Change 53K 40K
4:00am EUR Italian Retail Sales m/m -0.4% 0.0%
4:30am GBP Index of Services 3m/3m -1.0% -0.9%
5:00am EUR CPI Flash Estimate y/y 0.7% 1.2%
5:00am EUR Italian Prelim CPI m/m 0.2% 0.2%
8:30am CAD GDP m/m -0.6% -1.0%
8:30am CAD RMPI m/m 0.2% 1.4%
8:30am CAD IPPI m/m 0.4% -0.1%
9:00am GBP MPC Member Tucker Speaks
9:00am USD S&P/CS Composite-20 HPI y/y -18.5% -18.5%
9:45am USD Chicago PMI 34.3 34.2
10:00am USD CB Consumer Confidence 27.8 25.0
6:30pm AUD AIG Manufacturing Index 31.7
7:50pm JPY Tankan Manufacturing Index -55 -24
7:50pm JPY Tankan Non-Manufacturing Index -26 -9
8:30pm AUD Building Approvals m/m 1.5% -3.7%
8:30pm AUD Retail Sales m/m -0.5% 0.2%
Wed
Apr 1 1:30am AUD Commodity Prices y/y 19.1%
2:00am EUR German Retail Sales m/m 0.2% -0.9%
1st-9th GBP Halifax HPI m/m -2.0% -2.3%
3:30am CHF SVME PMI 33.0 32.6
4:00am EUR Final Manufacturing PMI 34.0 34.0
4:30am GBP Manufacturing PMI 34.9 34.7
4:30am GBP Housing Equity Withdrawal q/q -6.2B -5.7B
5:00am EUR Unemployment Rate 8.3% 8.2%
7:30am USD Challenger Job Cuts y/y 158.4%
8:15am USD ADP Non-Farm Employment Change -660K -697K
10:00am USD ISM Manufacturing PMI 35.7 35.8
10:00am USD Pending Home Sales m/m 0.3% -7.7%
10:00am USD Construction Spending m/m -1.7% -3.3%
10:00am USD ISM Manufacturing Prices 32.4 29.0
10:30am USD Crude Oil Inventories 3.3M
All Day USD Total Vehicle Sales 9.3M 9.1M
2:10pm CAD BOC Gov Carney Speaks
2:45pm CAD BOC Gov Carney Speaks
7:50pm JPY Monetary Base y/y 6.8% 6.4%
8:30pm AUD Trade Balance 0.70B 0.97B
10:00pm NZD ANZ Commodity Prices m/m -4.6%
Thu
Apr 2 2:00am GBP Nationwide HPI m/m -1.5% -1.8%
All Day ALL G20 Meetings
4:00am CHF Gov Board Member Hildebrand Speaks
4:30am GBP BOE Credit Conditions Survey
4:30am GBP Construction PMI 27.6 27.8
7:45am EUR Minimum Bid Rate 1.00% 1.50%
8:30am EUR ECB Press Conference
8:30am USD Unemployment Claims 653K 652K
10:00am EUR ECB President Trichet Speaks
10:00am USD Factory Orders m/m 1.5% -1.9%
10:30am USD Natural Gas Storage 3B
6:30pm AUD AIG Services Index 32.2
Fri
Apr 3 2:00am EUR German Import Prices m/m -0.3% -0.5%
3:15am CHF CPI m/m 0.0% 0.2%
4:00am EUR Final Services PMI 40.1 40.1
4:30am GBP Services PMI 43.6 43.2
8:30am USD Non-Farm Employment Change -662K -651K
8:30am USD Unemployment Rate 8.5% 8.1%
8:30am USD Average Hourly Earnings m/m 0.2% 0.2%
10:00am USD ISM Non-Manufacturing PMI 41.9 41.6
11:00am USD FOMC Member Kohn Speaks
12:00pm USD Fed Chairman Bernanke Speaks
Sat
Apr 4 10:00am NZD Daylight Saving Time Shift
12:00pm AUD Daylight Saving Time Shift
Monday, August 3, 2009
Sunday, August 2, 2009
Forex Glossary
Forex Glossary
Ask (Offer) — price of the offer, the price you buy for.
Aussie — a Forex slang name for the Australian dollar.
Bank Rate — the percentage rate at which central bank of a country lends money to the country's commercial banks.
Bid — price of the demand, the price you sell for.
Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.
Cable — a Forex traders slang word GBP/USD currency pair.
Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.
CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.
Commission — broker commissions for operation handling.
CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.
EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.
ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.
ECB (European Central Bank) — the main regulatory body of the European Union financial system.
Fed (Federal Reserve) — the main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.
Fibonacci Retracements — the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.
Flat (Square) — neutral state when all your positions are closed.
Fundamental Analysis — the analysis based only on news, economic indicators and global events.
GDP (Gross Domestic Product) — is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.
GTC (Good Till Cancelled) — order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.
Hedging — maintaining a market position which secures the existing open positions in the opposite direction.
Jobber — a slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.
Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.
Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.
Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.
Liquidity — the measure of markets which describes relationship between the trading volume and the price change.
Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.
Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
Margin — money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
Margin Account — account which is used to hold investor's deposited money for FOREX trading.
Margin Call — demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.
Market Order — order to buy or sell a lot for a current market price.
Market Price — the current price for which the currency is traded for on the market.
Momentum — the measure of the currency's ability to move in the given direction.
Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
Offer (Ask) — price of the offer, the price you buy for.
Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.
Order — order for a broker to buy or sell the currency with a certain rate.
Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.
Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).
Profit (Gain) — positive amount of money gained for closing the position.
Principal Value — the initial amount of money of the invested.
Realized Profit/Loss — gain/loss for already closed positions.
Resistance — price level for which the intensive selling can lead to price increasing (up-trend).
Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.
Settled (Closed) Position — closed positions for which all needed transactions has been made.
Slippage — execution of order for a price different than expected (ordered), main reasons for slippage are — "fast" market, low liquidity and low broker's ability to execute orders.
Spread — difference between ask and bid prices for a currency pair.
Standard Lot — 100,000 units of the base currency of the currency pair, which you are buying or selling.
Stop-Limit Order — order to sell or buy a lot for a certain price or worse.
Stop-Loss Order — order to sell or buy a lot when the market reaches certain price. It is used to avoid extra losses when market moves in the opposite direction. Usually is a combination of stop-order and limit-order.
Support — price level for which intensive buying can lead to the price decreasing (down-trend).
Swap — overnight payment for holding your position. Since you are not physically receiving the currency you buy, your broker should pay you the interest rate difference between the two currencies of the pair. It can be negative or positive.
Technical Analysis — the analysis based only on the technical market data (quotes) with the help of various technical indicators.
Trend — direction of market which has been established with influence of different factors.
Unrealized (Floating) Profit/Loss — a profit/loss for your non-closed positions.
Useable Margin — amount of money in the account that can be used for trading.
Used Margin — amount of money in the account already used to hold open positions open.
Volatility — a statistical measure of the number of price changes for a given currency pair in a given period of time.
VPS (Virtual Private Server) — virtual environment hosted on the dedicated server, which can be used to run the programs independent on the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.
source: http://www.earnforex.com/forex_glossary.php
Ask (Offer) — price of the offer, the price you buy for.
Aussie — a Forex slang name for the Australian dollar.
Bank Rate — the percentage rate at which central bank of a country lends money to the country's commercial banks.
Bid — price of the demand, the price you sell for.
Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.
Cable — a Forex traders slang word GBP/USD currency pair.
Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.
CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.
Commission — broker commissions for operation handling.
CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.
EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.
ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.
ECB (European Central Bank) — the main regulatory body of the European Union financial system.
Fed (Federal Reserve) — the main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.
Fibonacci Retracements — the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.
Flat (Square) — neutral state when all your positions are closed.
Fundamental Analysis — the analysis based only on news, economic indicators and global events.
GDP (Gross Domestic Product) — is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.
GTC (Good Till Cancelled) — order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.
Hedging — maintaining a market position which secures the existing open positions in the opposite direction.
Jobber — a slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.
Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.
Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.
Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.
Liquidity — the measure of markets which describes relationship between the trading volume and the price change.
Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.
Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
Margin — money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
Margin Account — account which is used to hold investor's deposited money for FOREX trading.
Margin Call — demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.
Market Order — order to buy or sell a lot for a current market price.
Market Price — the current price for which the currency is traded for on the market.
Momentum — the measure of the currency's ability to move in the given direction.
Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
Offer (Ask) — price of the offer, the price you buy for.
Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.
Order — order for a broker to buy or sell the currency with a certain rate.
Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.
Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).
Profit (Gain) — positive amount of money gained for closing the position.
Principal Value — the initial amount of money of the invested.
Realized Profit/Loss — gain/loss for already closed positions.
Resistance — price level for which the intensive selling can lead to price increasing (up-trend).
Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.
Settled (Closed) Position — closed positions for which all needed transactions has been made.
Slippage — execution of order for a price different than expected (ordered), main reasons for slippage are — "fast" market, low liquidity and low broker's ability to execute orders.
Spread — difference between ask and bid prices for a currency pair.
Standard Lot — 100,000 units of the base currency of the currency pair, which you are buying or selling.
Stop-Limit Order — order to sell or buy a lot for a certain price or worse.
Stop-Loss Order — order to sell or buy a lot when the market reaches certain price. It is used to avoid extra losses when market moves in the opposite direction. Usually is a combination of stop-order and limit-order.
Support — price level for which intensive buying can lead to the price decreasing (down-trend).
Swap — overnight payment for holding your position. Since you are not physically receiving the currency you buy, your broker should pay you the interest rate difference between the two currencies of the pair. It can be negative or positive.
Technical Analysis — the analysis based only on the technical market data (quotes) with the help of various technical indicators.
Trend — direction of market which has been established with influence of different factors.
Unrealized (Floating) Profit/Loss — a profit/loss for your non-closed positions.
Useable Margin — amount of money in the account that can be used for trading.
Used Margin — amount of money in the account already used to hold open positions open.
Volatility — a statistical measure of the number of price changes for a given currency pair in a given period of time.
VPS (Virtual Private Server) — virtual environment hosted on the dedicated server, which can be used to run the programs independent on the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.
source: http://www.earnforex.com/forex_glossary.php
Futures Versus Forex (Foreign Exchange Market)
Todays current futures market is quite unlike the futures of the 19th century. Todays future market is a worldwide one that includes manufactured goods, financial currencies and treasury bonds, and agricultural products.
When you speculate on futures it is not the actual good that is speculated upon rather it is the contract for the goods that is traded as value. Every futures contract includes a buyer and a seller. The following is an example of a futures speculation: A farmer agrees to deliver 1000 bushels of corn to a baker at a price of $5.00 a bushel. If the daily price of corn futures falls to $4.00 a bushel, the farmer's account is credited with $1000 ($5.00 — $4.00 X 1000 bushels) and the baker's account is debited by the same amount. Futures accounts are settled every day.
Using the above as an example this is how the contract settlement would play out: If the price of corn futures is still at $4.00 the farmer will have made $1000 on the futures contract and the baker will have lost an equal amount. However, the baker can now purchase corn on the open market at $4.00 a bushel — $1000 less than the original contract, so the amount he lost on the futures contract is made up by the cheaper cost of corn. Also, the farmer must sell his corn on the open market for $4.00 a bushel, less than what he anticipated when entering the futures contract, but the profit generated by the futures contract makes up the difference.
Speculators profit by daily fluctuations in the futures market by choosing to buy from the seller (buying short) or from the buyer (buying long).
The FOREX market has advantages over the futures market. FOREX is the largest financial market in the world. It is a liquid market and stop orders can be executed more easily and with less slippage than in other markets. The FOREX market is open 5 days a week, 24 hours a day. Traders can take advantages of opportunities as they become available. FOREX transactions are usually instantly executed. FOREX transactions are commission free. Brokers earn money on the spread.
Some investors feel that due to built in safeguards that FOREX trading is safer than futures trading.
source: http://www.earnforex.com/articles/futures_versus_forex_foreign_exchange_market.php
When you speculate on futures it is not the actual good that is speculated upon rather it is the contract for the goods that is traded as value. Every futures contract includes a buyer and a seller. The following is an example of a futures speculation: A farmer agrees to deliver 1000 bushels of corn to a baker at a price of $5.00 a bushel. If the daily price of corn futures falls to $4.00 a bushel, the farmer's account is credited with $1000 ($5.00 — $4.00 X 1000 bushels) and the baker's account is debited by the same amount. Futures accounts are settled every day.
Using the above as an example this is how the contract settlement would play out: If the price of corn futures is still at $4.00 the farmer will have made $1000 on the futures contract and the baker will have lost an equal amount. However, the baker can now purchase corn on the open market at $4.00 a bushel — $1000 less than the original contract, so the amount he lost on the futures contract is made up by the cheaper cost of corn. Also, the farmer must sell his corn on the open market for $4.00 a bushel, less than what he anticipated when entering the futures contract, but the profit generated by the futures contract makes up the difference.
Speculators profit by daily fluctuations in the futures market by choosing to buy from the seller (buying short) or from the buyer (buying long).
The FOREX market has advantages over the futures market. FOREX is the largest financial market in the world. It is a liquid market and stop orders can be executed more easily and with less slippage than in other markets. The FOREX market is open 5 days a week, 24 hours a day. Traders can take advantages of opportunities as they become available. FOREX transactions are usually instantly executed. FOREX transactions are commission free. Brokers earn money on the spread.
Some investors feel that due to built in safeguards that FOREX trading is safer than futures trading.
source: http://www.earnforex.com/articles/futures_versus_forex_foreign_exchange_market.php
Forex Trading: The Perfect Forex Trading System.
Trading the Forex market has become very popular in the last few years. But how difficult is it to achieve success in the Forex trading arena? Or let me rephrase this question, how many traders achieve consistent profitable results trading the Forex market? Unfortunately very few, only about 5% of traders achieve this goal. One of the main reasons of this is because Forex traders focus in the wrong information to make their trading decisions and totally forget about the most important factor: Price behavior.
Most Forex trading systems are made off technical indicators. But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.
There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as "the MA crossover made the price go up," but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.
Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.
So, how to create a perfect Forex trading system?
First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.
Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.
Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.
Most Forex trading systems are made off technical indicators. But what are technical indicators? They are just a series of data points plotted in a chart; these points are derived from a mathematical formula applied to the price of any given currency pair. In other words, it is a chart of price plotted in a different way that helps us see other aspects of price.
There is an important implication on this definition of technical indicators. The fact that the readings obtained from them are based on price action. Take for instance a long MA crossover signal, the price has gone up enough to make the short period MA crossover the long period MA generating a long signal. Most traders see it as "the MA crossover made the price go up," but it happened the other way around, the MA crossover signal occurred because the price went up. Where I’m trying to get here is that at the end, price behavior dictates how an indicator will act, and this should be taken into consideration on any trading decision made.
Trading decisions based on technical indicators without taking price action into consideration will give us less accurate results. For example, again a long signal generated by a MA crossover as the market approaches an important resistance level. If the price suddenly starts to bounce back off that important level there is no point on taking this signal, price action is telling us the market doesn’t want to go up. Most of the time, under this circumstances, the market will continue to fall down, disregarding the MA crossover.
Don’t get me wrong here, technical indicators are a very important aspect of trading. They help us see certain conditions that are otherwise difficult to see by watching pure price action. But when it comes to pull the trigger, price action incorporation into our Forex trading system will definitely put the odds in our favor, it will generate higher probability trades.
So, how to create a perfect Forex trading system?
First of all, you need to make sure your trading system fits your trading personality; otherwise you will find it hard to follow it. Every trader has different needs and goals, thus there is no system that perfectly fits all traders. You need to make your own research on various trading styles and technical indicators until you find a concept that perfectly works for you. Make sure you know the nature of whatever technical indicator used.
Secondly, incorporate price action into your system. So you only take long signals if the price behavior tells you the market wants to go up, and short signals if the market gives you indication that it will go down.
Third, and most importantly, you need to have the discipline to follow your Forex trading system rigorously. Try it first on a demo account, then move on to a small account and finally when feeling comfortably and being consistent profitable apply your system in a regular account.
Saturday, August 1, 2009
FOREX WORLD TRADING TIMES
The dollar’s role is being challenged as the world’s main reserve currency!!
What will be the next major currency: Yuan or Euro??
THE Chinese used to call dollars mei jin, which means “American gold”. Buying black-market dollars was considered the safest way to protect one’s savings. Yet in June when Tim Geithner, America’s treasury secretary, told students at Peking University that China’s official holdings of Treasury bonds were safe, the audience laughed. Faith in the greenback is waning.
In the build-up to the annual summit of G8 countries, which began on July 8th in the Italian city of L’Aquila, officials in China, Russia and India all called for an end to the dollar’s dominance in the international monetary system. Dmitry Medvedev, Russia’s president, declared on July 5th that the dollar system is “flawed”; his central bank has been reducing its dollar holdings. The People’s Bank of China (PBOC), China’s central bank, repeated its call for a new global reserve currency in June and is now taking the first steps towards turning the yuan into a global currency.
Beijing is particularly influential in this debate. The dollar accounts for 65% of the world’s foreign-exchange reserves (see chart), only slightly less than a decade ago and well ahead of the euro’s 26% share. Three-quarters of all reserves are in the hands of emerging economies; China alone holds one-third of the global stash.
So China has particular cause to worry that America’s massive printing of money in response to the financial crisis will undermine the value of its dollar reserves. There is much domestic anger about the potential losses China may face as a result of its lending to rich Americans. The government would like to diversify out of dollars: its new purchases of Treasury securities have fallen sharply this year. But any attempt to dump its stock of dollars would risk triggering a plunge in the currency. Instead, officials are mulling two ways out of the “dollar trap”: persuading the world to adopt a new global currency and encouraging the international use of the yuan.
In an essay in March, Zhou Xiaochuan, the governor of the PBOC, argued that basing the international financial system on a national currency will tend to exacerbate global imbalances. The dollar’s reserve-currency status let America borrow cheaply, causing the country’s credit and housing bubbles to persist for longer than they otherwise would have. Mr Zhou proposed that the world should replace the dollar with a global reserve currency, the SDR (Special Drawing Rights). Created by the IMF in 1969, and now based on the weighted average of the dollar, euro, yen and pound, the SDR was designed as a reserve currency but never took off. SDRs today add up to less than 1% of total reserves.
Under Mr Zhou’s plan the amount of SDRs would be hugely increased and the basket expanded to include other currencies, notably the yuan. Mr Zhou also proposes an SDR-denominated fund, managed by the IMF, into which dollar reserves could be exchanged for SDRs. Countries could then reduce their dollar exposure without pushing down the dollar (although it is unclear who would bear any exchange-rate losses).
Brazil, India and Russia have backed Mr Zhou’s proposal. But the SDR is unlikely to become a reserve currency any time soon. It would take years to develop SDR money markets that are liquid enough to be a reserve asset. Although the IMF’s executive board approved the first issuance of SDR-denominated bonds on July 1st, as the fund attempts to boost its resources, the bonds can only be bought and traded by central banks, not by private investors.
China’s alternative ploy is to promote the yuan’s use in international trade and finance. Starting on July 6th selected firms in five Chinese cities are now allowed to use yuan to settle transactions with businesses in Hong Kong, Macau and ASEAN countries. Foreign banks will be able to buy or borrow yuan from mainland lenders to finance such trade. In June Russia and China agreed to expand the use of their currencies in bilateral trade; Brazil and China are discussing a similar idea.
The PBOC has also signed currency-swap agreements with Argentina, Belarus, Hong Kong, Indonesia, Malaysia and South Korea. The central bank will make yuan available to pay for imports from China if these countries are short of foreign exchange. In another recent move, Hong Kong banks are now allowed to issue yuan-denominated bonds, a step towards building an offshore yuan market.
Qu Hongbin, an economist at HSBC, predicts that by 2012 nearly $2 trillion of annual trade (over 40% of China’s total) could be settled in yuan, making it one of the top three currencies in global trade. Others reckon this is too optimistic. Although Chinese firms are keen to invoice in yuan, trading partners will be more reluctant. There is no real forward market for the yuan, making it hard to hedge risk, and it is not accepted by most other countries.
The yuan will be used more widely for trade over the next decade but the idea that the yuan can become a reserve currency in the near future is ridiculous, says Arthur Krober at Dragonomics, a research firm based in Beijing. Not only does China lack the economic and political track record required to underpin a reserve currency, but its currency is not fully convertible. China would need to scrap capital controls so foreigners could invest in yuan assets and then freely repatriate their capital and income, but the government is wary of moving too quickly. A reserve currency also requires a deep and liquid bond market, free from government interference. This, says Mr Krober, implies a big retreat from China’s state-led model of credit allocation.
Even if China immediately scrapped capital controls the yuan would be unlikely to challenge the dollar as a reserve currency for years. The dollar did not replace sterling until half a century after America’s economy had overtaken Britain’s. America’s GDP is around three times as big as China’s, and its total trade is still larger.
Both the SDR plan and measures to internationalise the yuan also seem to assume that China’s problem is simply that too many of its reserves are in dollars. But China’s real problem is that it is running a persistent current-account surplus; in order to keep the yuan closely tied to the dollar it has to keep buying more dollar assets. If China really wants to reduce its exposure to the greenback it must allow the yuan to rise. It would incur a loss on its existing reserves but stem future losses. But so long as China maintains its current exchange-rate policy, it is, ironically, helping keep the dollar dominant.
INDIA ---- FOREX
Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance offoreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues such as retail trading platforms platforms offered by companies such as ParagonEX, First Prudential Markets and Saxo Bank have made it easier for retail traders to trade in the foreign exchange market. In 2006, retail traders constituted over 2% of the whole FX market volumes with an average daily trade volume of over US$50-60 billion (see retail trading platforms).[5] Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house.
The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 34.1% in April 2007. The ten most active traders account for almost 80% of trading volume, according to the 2008 Euromoney FX survey.[3] These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203 on a retail broker. Minimum trading size for most deals is usually 100,000 units of base currency, which is a standard "lot".
Thursday, July 30, 2009
What is Foreign Exchange / Forex / FX?
Foreign exchange is the simultaneous purchase of one currency and sale of another – currencies are always traded in pairs. International currencies are traded on floating exchange rates. There is a daily average turnover of about US$1.5 trillion in the foreign exchange markets. The foreign exchange market is known as the "Forex," or "FX" market. It is the largest financial market in the world.
Is there a central location for the Forex Market?
Forex trading is not managed through an exchange. Since transactions are conducted between two counterparts, the FX market is an “inter-bank,” or over the counter (OTC) market.
Who participates in the FX market?
Central, commercial and investment banks have traditionally dominated the Forex market. Other market participation is rapidly increasing, and now includes international money managers and brokers, multinational corporations, registered dealers, options and futures traders, and private investors.
When is the FX market open for trading?
Forex is a true global 24-hour marketplace. The trading day begins in Sydney, and moves around the globe as each financial center comes to life. Tokyo follows, then London, and finally New York. Investors can respond in real time to any fluctuations caused by current economic, social and political events.
What are the most common currencies in the Forex markets?
The most “liquid” currencies in the Forex market are those of countries with low inflation, stable governments, and respected central banks. Nearly 85% of daily transactions involve the major currencies, including the U.S. Dollar, Japanese Yen, the European Union Euro, British Pound, Swiss Franc, and the Canadian and Australian Dollars.
Is is capital intensive to trade forex?
Forex Capital Management requires a minimum deposit of $300 to open a Mini Account and $2000 for a regular account. Your relationship with Forex Capital Management enables you to conduct highly leveraged trades (as much as a 200 to 1 leverage ration in the Mini Account.) You set the degree of leverage that you wish to deploy. Unless otherwise specified, your leverage level is set at the most lenient level required by your account size. Please remember that while this degree of leverage enables you to maximize your profit potential, there is an equally great potential for loss.
What is Margin?
Margin is a performance bond that insures against trading losses. Margin requirements in the FX marketplace allow you to hold positions much larger than the asset value of your account. Trading with Forex Capital Management includes a pre-trade check for margin availability, the trade is executed only if there are sufficient margin funds in your account. The Forex Capital Management trading system calculates cash on hand necessary to cover current positions, and provides this information to you in real time. If funds in your account fall below margin requirements, the system will close all open positions. This prevents your account from falling below your available equity, which is a key protection in this volatile, fast moving marketplace.
What are “short” and “long” positions?
Short positions are taken when a trader sells currency in anticipation of a downturn in price. Making this move allows the investor to benefit from a decline. Long positions are taken when a trader buys a currency at a low price in anticipation of selling it later for more. Making these moves allows the investor to benefit from changing market prices. Remember! Since currencies are traded in pairs, every forex position inevitably requires the investor to go short in one currency and long in the other.
What is the difference between an "intraday" and "overnight position"?
Intraday positions are all positions opened anytime during the 24 hour period AFTER the close of Forex Capital’s normal trading hours at 5:00pm EST. Overnight positions are positions that are still on at the end of normal trading hours (5:00pm EST), which are automatically rolled by Forex Capital Management.
How is pricing determined for certain currencies?
The full range of economic and political conditions impact currency pricing. It is generally held that interest rates, inflation rates and political stability are top among important factors. At times, governments participate in the forex market in order to influence the traded value of their currencies. These and other market factors such as very large orders can cause extreme relative volatility in currency prices. The sheer size of the forex market prevents any single factor from dominating the market for any length of time.
How can I manage risk?
The most common risk management tools in Forex trading are the stop-loss order and the limit order. The stop-loss order directs that a position be automatically liquidated at a certain price in order to guard against dramatic changes against the position. A limit order sets the maximum price that the investor is willing to pay in a transaction, as well as a minimum price to be received in exchange. The foreign exchange marketplace is so liquid that it is easy to execute stop-loss and limit orders. Forex Capital Management guarantees execution of stop-loss and limit orders at the specified price on orders up to US$1 million.
What trading strategy should I use?
Both economic fundamentals and technical factors influence the decisions of currency traders. Those who follow economic fundamentals use government issued reports, current news, and broad economic trends to anticipate movements in price. Technical traders rely on trend lines, support and resistance levels, and a variety of charts and mathematical analysis to identify trading opportunities. Over time, the most significant price movements occur in close association with unexpected events. Perhaps the central bank changes rates without warning, or an election puts an unexpected candidate in power. News from conflicts certainly impacts currency pricing. More often than not, it is the expectation of a certain event rather than the actual event that drives price pressures.
How often can trades be made?
As one might expect, trading activity on any particular day is dictated by current market conditions. Some small to medium size traders might make as many as 10 transactions in a day. By not charging commission and offering tight spreads, Forex Capital Management investors can take positions as often as is necessary without concern for excessive transaction costs.
How long should a position be maintained?
Forex traders generally hold positions until one of three criteria is met:
1. A sufficient profit has been realized from the position.
2. A pre-set stop-loss order is triggered.
3. A better potential position emerges and the trader needs to liquidate funds to take advantage of it.
How do margin calls work?
A margin call is generated when the equity balance in an account drops below the margin requirement for that size account. If the maximum allowable leverage has been exceeded, any open positions are immediately liquidated, regardless of the nature or size of the positions.
source: http:// forextradings.org /forex_faq-en-fx_faq.ht
Is there a central location for the Forex Market?
Forex trading is not managed through an exchange. Since transactions are conducted between two counterparts, the FX market is an “inter-bank,” or over the counter (OTC) market.
Who participates in the FX market?
Central, commercial and investment banks have traditionally dominated the Forex market. Other market participation is rapidly increasing, and now includes international money managers and brokers, multinational corporations, registered dealers, options and futures traders, and private investors.
When is the FX market open for trading?
Forex is a true global 24-hour marketplace. The trading day begins in Sydney, and moves around the globe as each financial center comes to life. Tokyo follows, then London, and finally New York. Investors can respond in real time to any fluctuations caused by current economic, social and political events.
What are the most common currencies in the Forex markets?
The most “liquid” currencies in the Forex market are those of countries with low inflation, stable governments, and respected central banks. Nearly 85% of daily transactions involve the major currencies, including the U.S. Dollar, Japanese Yen, the European Union Euro, British Pound, Swiss Franc, and the Canadian and Australian Dollars.
Is is capital intensive to trade forex?
Forex Capital Management requires a minimum deposit of $300 to open a Mini Account and $2000 for a regular account. Your relationship with Forex Capital Management enables you to conduct highly leveraged trades (as much as a 200 to 1 leverage ration in the Mini Account.) You set the degree of leverage that you wish to deploy. Unless otherwise specified, your leverage level is set at the most lenient level required by your account size. Please remember that while this degree of leverage enables you to maximize your profit potential, there is an equally great potential for loss.
What is Margin?
Margin is a performance bond that insures against trading losses. Margin requirements in the FX marketplace allow you to hold positions much larger than the asset value of your account. Trading with Forex Capital Management includes a pre-trade check for margin availability, the trade is executed only if there are sufficient margin funds in your account. The Forex Capital Management trading system calculates cash on hand necessary to cover current positions, and provides this information to you in real time. If funds in your account fall below margin requirements, the system will close all open positions. This prevents your account from falling below your available equity, which is a key protection in this volatile, fast moving marketplace.
What are “short” and “long” positions?
Short positions are taken when a trader sells currency in anticipation of a downturn in price. Making this move allows the investor to benefit from a decline. Long positions are taken when a trader buys a currency at a low price in anticipation of selling it later for more. Making these moves allows the investor to benefit from changing market prices. Remember! Since currencies are traded in pairs, every forex position inevitably requires the investor to go short in one currency and long in the other.
What is the difference between an "intraday" and "overnight position"?
Intraday positions are all positions opened anytime during the 24 hour period AFTER the close of Forex Capital’s normal trading hours at 5:00pm EST. Overnight positions are positions that are still on at the end of normal trading hours (5:00pm EST), which are automatically rolled by Forex Capital Management.
How is pricing determined for certain currencies?
The full range of economic and political conditions impact currency pricing. It is generally held that interest rates, inflation rates and political stability are top among important factors. At times, governments participate in the forex market in order to influence the traded value of their currencies. These and other market factors such as very large orders can cause extreme relative volatility in currency prices. The sheer size of the forex market prevents any single factor from dominating the market for any length of time.
How can I manage risk?
The most common risk management tools in Forex trading are the stop-loss order and the limit order. The stop-loss order directs that a position be automatically liquidated at a certain price in order to guard against dramatic changes against the position. A limit order sets the maximum price that the investor is willing to pay in a transaction, as well as a minimum price to be received in exchange. The foreign exchange marketplace is so liquid that it is easy to execute stop-loss and limit orders. Forex Capital Management guarantees execution of stop-loss and limit orders at the specified price on orders up to US$1 million.
What trading strategy should I use?
Both economic fundamentals and technical factors influence the decisions of currency traders. Those who follow economic fundamentals use government issued reports, current news, and broad economic trends to anticipate movements in price. Technical traders rely on trend lines, support and resistance levels, and a variety of charts and mathematical analysis to identify trading opportunities. Over time, the most significant price movements occur in close association with unexpected events. Perhaps the central bank changes rates without warning, or an election puts an unexpected candidate in power. News from conflicts certainly impacts currency pricing. More often than not, it is the expectation of a certain event rather than the actual event that drives price pressures.
How often can trades be made?
As one might expect, trading activity on any particular day is dictated by current market conditions. Some small to medium size traders might make as many as 10 transactions in a day. By not charging commission and offering tight spreads, Forex Capital Management investors can take positions as often as is necessary without concern for excessive transaction costs.
How long should a position be maintained?
Forex traders generally hold positions until one of three criteria is met:
1. A sufficient profit has been realized from the position.
2. A pre-set stop-loss order is triggered.
3. A better potential position emerges and the trader needs to liquidate funds to take advantage of it.
How do margin calls work?
A margin call is generated when the equity balance in an account drops below the margin requirement for that size account. If the maximum allowable leverage has been exceeded, any open positions are immediately liquidated, regardless of the nature or size of the positions.
source: http:// forextradings.org /forex_faq-en-fx_faq.ht
Forex(FX) Trading Strategy
A forex trading strategy can provide profit for a skilled speculator. A FX trading strategy is, simply put, a method for using foreign exchange rates of currency from various countries to buy one country’s currency when it is undervalued, and exchange it for another country’s currency with it is of normal or higher value, with the difference being profit.
A common forex trading strategy could involve US dollars and the Euro, the official currency of most European countries. To use a simple example of a forex trading strategy, a speculator would buy Euros when they were undervalued; let’s say two Euros equaled one US dollar. This would be unusual because normally the two currencies are almost equal.
By spending one hundred US dollars to buy two hundred Euros a speculator would be able to buy more goods in Germany, France or other European countries. When the market changed and became more even, the speculator would have twice as many goods as he normally would have, and would be able to exchange those goods for US dollars once again.
The difference would be profit. This is a very simple explanation of a forex trading strategy, but gives the basics to the new speculator.Of course, when coming up with a forex trading strategy the trader should only use money that he or she can afford to loose. This is speculation, as opposed to investment. The chances for profit are real, and could come quick but if the market turns the opposite way than expected the trader could actually loose money.
A forex trading strategy can reap large profits, but if anyone tells you that all trades will result in profit, they haven’t studied the market as well as they should have and they are not correct. Still having a sound forex trading strategy for a competent businessman can be a profitable venture. It requires study of the markets, which takes time and is usually best accomplished by reading financial newsletters and using tools available on the Internet.
Getting the advice of a professional forex trading strategy specialist can also be a sound choice. Professionals have the time, education and skills and can generally help a trader come up with a forex trading strategy that will result in profit more often than one could do without their help.The most sound forex trading strategy options are generally used by large multinational corporations who are often able to make steady profits.
Watching what large corporations do who are involved in forex trading, looking for patterns they may have set, can help a trader to get the benefit of the very expensive expertise used by these large companies. Making watching of the large traders a part of a person’s education is definitely a good place to start a forex trading education. Identifying the state of the market, determining the time frame you are working in, and the currencies that have fluctuation and getting the advice of professionals through self study can be the wisest forex trading strategy option available.
source: http://forextradings.org/forex_strategy-en-fx_strategy.html
A common forex trading strategy could involve US dollars and the Euro, the official currency of most European countries. To use a simple example of a forex trading strategy, a speculator would buy Euros when they were undervalued; let’s say two Euros equaled one US dollar. This would be unusual because normally the two currencies are almost equal.
By spending one hundred US dollars to buy two hundred Euros a speculator would be able to buy more goods in Germany, France or other European countries. When the market changed and became more even, the speculator would have twice as many goods as he normally would have, and would be able to exchange those goods for US dollars once again.
The difference would be profit. This is a very simple explanation of a forex trading strategy, but gives the basics to the new speculator.Of course, when coming up with a forex trading strategy the trader should only use money that he or she can afford to loose. This is speculation, as opposed to investment. The chances for profit are real, and could come quick but if the market turns the opposite way than expected the trader could actually loose money.
A forex trading strategy can reap large profits, but if anyone tells you that all trades will result in profit, they haven’t studied the market as well as they should have and they are not correct. Still having a sound forex trading strategy for a competent businessman can be a profitable venture. It requires study of the markets, which takes time and is usually best accomplished by reading financial newsletters and using tools available on the Internet.
Getting the advice of a professional forex trading strategy specialist can also be a sound choice. Professionals have the time, education and skills and can generally help a trader come up with a forex trading strategy that will result in profit more often than one could do without their help.The most sound forex trading strategy options are generally used by large multinational corporations who are often able to make steady profits.
Watching what large corporations do who are involved in forex trading, looking for patterns they may have set, can help a trader to get the benefit of the very expensive expertise used by these large companies. Making watching of the large traders a part of a person’s education is definitely a good place to start a forex trading education. Identifying the state of the market, determining the time frame you are working in, and the currencies that have fluctuation and getting the advice of professionals through self study can be the wisest forex trading strategy option available.
source: http://forextradings.org/forex_strategy-en-fx_strategy.html
Wednesday, July 29, 2009
The explosion of the Euro market
The rapid development of the Eurodollar market, where US dollars are deposited in banks outside the US, was a major mechanism for speeding up Forex trading. Likewise, Euro markets are those where assets are deposited outside the currency of origin.
The Eurodollar market first came into being in the 1950s when the Soviet Union's oil revenue -- all in US dollars -- was being deposited outside the US in fear of being frozen by US regulators. This resulted in a vast offshore pool of dollars outside the control of US authorities. The US government therefore imposed laws to restrict dollar lending to foreigners. Euro markets then became particularly attractive because they had fewer regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euro markets an advantageous place for holding excess liquidity, providing short-term loans and financing imports and exports.
London was and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London's convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euro market.
source: http://au.biz.yahoo.com/forex-education/euro-explosion.html
The Eurodollar market first came into being in the 1950s when the Soviet Union's oil revenue -- all in US dollars -- was being deposited outside the US in fear of being frozen by US regulators. This resulted in a vast offshore pool of dollars outside the control of US authorities. The US government therefore imposed laws to restrict dollar lending to foreigners. Euro markets then became particularly attractive because they had fewer regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euro markets an advantageous place for holding excess liquidity, providing short-term loans and financing imports and exports.
London was and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London's convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euro market.
source: http://au.biz.yahoo.com/forex-education/euro-explosion.html
Sunday, July 26, 2009
Important Tips For Newbies in Forex Trading
The process of becoming a forex trader is full of twists and turns and it definitely doesn't happen overnight. To obtain professional trading skills might take just as long as you would expect to become a well-known lawyer, a best-seller book writer or a top-notch computer programmer. Yes, I am talking about years and years of learning and experience.
Success walks hand in hand with forex trading. Your efforts to learn and improve trading skills are the key. Comparing forex trading to other meaningful professions gives an important insight - trading is like an abstract painting. It is an art without rules, without exact features. Forex trading is an art of changes and volatility.
Learning and mastering the fundamentals of trading will later on help you to create your own strategy. You will develop your own reactions and adjustments to the trading circumstances of forex market. It's not the style that matter, but the level of preparedness you have got to deal with the changes.
It might look boring and unworthy, but let me reassure you that time and practice invested in forex trading pays off. Your patience and improvement will grow each day and over time you will find the success beyond your expectations.
In my opinion, it is better to learn everything you can yourself before you start asking questions. Not that questions are bad for you and there are many great communities and traders eager to help newbies but not everyone on the internet is qualified to give advices. Some answers can be harmful to a new traders' mind! Besides, don't try to skip through steps. You can't expect to enroll to university and ask the questions related to third-year disciplines. You simply won't be able to understand the answers! It's like trying to dance ballet without ever exercising!
Speaking of questions, I think that in order to become a successful forex trader you have to understand yourself. Understanding your purpose and limitations can help you figure out your risk tolerance, money management techniques and trading methods. To do so I suggest asking yourself these questions:
1. Can I handle the possibility of losing money? (both financially and emotionally)
2. What do I seek in forex trading? (money, excitement, profession, mortgage payment!)
3. Am I willing to spend a decent amount of time learning and practicing trading?
4. Am I deeply emotional and how do I react to stressful situations?
Understanding only yourself is not enough. You have to explore the waters you are getting into - the forex market, the price movements, influences and consequences.
Once you know the basics of forex trading you need to learn what influences the price movements in the market. This isn't an exact science where two plus two is four. The market is constantly under the bombardment of changes and what might have worked yesterday might not be worthy today.
Then of course come the tools. You have to master the trading tools and not just know that they exist in your trading platform.
And finally, the most important suggestion is to take is easy, learn hard and improve daily. Take time analyzing your trading history, find the mistakes, make notes, maybe even have trading journal. Eventually the puzzle pieces will all fit together into a perfect picture. Good luck!
Success walks hand in hand with forex trading. Your efforts to learn and improve trading skills are the key. Comparing forex trading to other meaningful professions gives an important insight - trading is like an abstract painting. It is an art without rules, without exact features. Forex trading is an art of changes and volatility.
Learning and mastering the fundamentals of trading will later on help you to create your own strategy. You will develop your own reactions and adjustments to the trading circumstances of forex market. It's not the style that matter, but the level of preparedness you have got to deal with the changes.
It might look boring and unworthy, but let me reassure you that time and practice invested in forex trading pays off. Your patience and improvement will grow each day and over time you will find the success beyond your expectations.
In my opinion, it is better to learn everything you can yourself before you start asking questions. Not that questions are bad for you and there are many great communities and traders eager to help newbies but not everyone on the internet is qualified to give advices. Some answers can be harmful to a new traders' mind! Besides, don't try to skip through steps. You can't expect to enroll to university and ask the questions related to third-year disciplines. You simply won't be able to understand the answers! It's like trying to dance ballet without ever exercising!
Speaking of questions, I think that in order to become a successful forex trader you have to understand yourself. Understanding your purpose and limitations can help you figure out your risk tolerance, money management techniques and trading methods. To do so I suggest asking yourself these questions:
1. Can I handle the possibility of losing money? (both financially and emotionally)
2. What do I seek in forex trading? (money, excitement, profession, mortgage payment!)
3. Am I willing to spend a decent amount of time learning and practicing trading?
4. Am I deeply emotional and how do I react to stressful situations?
Understanding only yourself is not enough. You have to explore the waters you are getting into - the forex market, the price movements, influences and consequences.
Once you know the basics of forex trading you need to learn what influences the price movements in the market. This isn't an exact science where two plus two is four. The market is constantly under the bombardment of changes and what might have worked yesterday might not be worthy today.
Then of course come the tools. You have to master the trading tools and not just know that they exist in your trading platform.
And finally, the most important suggestion is to take is easy, learn hard and improve daily. Take time analyzing your trading history, find the mistakes, make notes, maybe even have trading journal. Eventually the puzzle pieces will all fit together into a perfect picture. Good luck!
Motorola ROKR ZN50Touchscreen phone in Korea
Motorola Korea Inc today announces the launch of ROKR ZN50Touchscreen phone in Korea, a sophisticated 3G full-touch screen sliding phone with excellent music capabilities.
Highlights:
• Ultimate Music Player Features and Service Benefits
• Excellent Music Infrastructure
• Superior Sound System
• Free Access to Melon Free Club
• Full-touch Screen and Multimedia adding Usability and Fun
Features and Specifications:
• WCDMA 2100, GSM 900/1800/1900, HSDPA 7.2 Mbps connectivity
• 3.2”, 240×427px 262k TFT color display
• 3.2 mpx camera
• SRS WOW HD sound system, built-in EQ
• 30 hours of Music Play
• Built in GPS
• microSD slot for up to 16GB of memory
• T-DMB2 TV tuner
• Bluetooth 2.0
• USB 2.0 (HS),
• 3.5 mm headphone jack
• 950 mAh battery
ROKR is available in two unique color combinations: chic black and red and cool blue and white.
• Dimensions: 54 (W) x 108.9 (H) x 14.34(T) mm
• Weight: 143g
Highlights:
• Ultimate Music Player Features and Service Benefits
• Excellent Music Infrastructure
• Superior Sound System
• Free Access to Melon Free Club
• Full-touch Screen and Multimedia adding Usability and Fun
Features and Specifications:
• WCDMA 2100, GSM 900/1800/1900, HSDPA 7.2 Mbps connectivity
• 3.2”, 240×427px 262k TFT color display
• 3.2 mpx camera
• SRS WOW HD sound system, built-in EQ
• 30 hours of Music Play
• Built in GPS
• microSD slot for up to 16GB of memory
• T-DMB2 TV tuner
• Bluetooth 2.0
• USB 2.0 (HS),
• 3.5 mm headphone jack
• 950 mAh battery
ROKR is available in two unique color combinations: chic black and red and cool blue and white.
• Dimensions: 54 (W) x 108.9 (H) x 14.34(T) mm
• Weight: 143g
Motorola TLKR T7 walkie-talkies
Motorola have long been the name in walkie-talkies, or two-way radios as they should perhaps be called. The TLKR T7 are aimed at those who want to stay in contact in harsh environments, with the box suitably adorned with skiers, snowboarders and the like.
In the box you get the two handsets themselves, a docking station for charging those two handsets, belt clips and battery packs.
The base charges the handsets directly when they are slotted in, but you also have the option of charging the battery packs separately, for example if you have more than one pack. You could also use four standard AAA batteries to power a handset, which is a nice fallback should the worst happen.
The handsets aren't the smallest around, but they are suitably rugged. Measuring 54x 30 x 202 (including the aerial) they sit comfortably in the hand, with the rubber surround providing a secure grip in gloved or wet hands. The push-to-talk button on the left-hand side seems to fall naturally under the thumb or forefinger of whichever hand you are holding them in.
A small 1-inch LCD screen sits on the front, which is large enough to convey all the relevant information and lets you see which channel you are on, what options are selected and so on. Below this screen is a range of control buttons which are too small for operating with gloves, but it is most likely that you'd set these things up before setting out.
The handsets have 8 channels with 121 subcodes, which will have to be the same before setting out. But this is a sophisticated device, so should the need arise, you can set Dual Watch, which will cover two separate channels - perhaps as a control station for two opposing factions in a team game.
Channel setting is easy directly through the menu, or using the scan feature that will zip through and pause on transmitting channels. When you hit the right channel, a button press exits the scan leaving you connected (to someone at least).
The menus present a whole array of advanced features that many will never use, but they do make the T7 a highly versatile choice of walkie-talkie. You can set a room monitor mode (like a baby monitor), silent mode (with vibration alerting) as well as a timer.
There are also a range of group functions which do take some time to get used to, but will allow you to individually name each handset, which comes in handy as you can use the T7 for direct calling of other users in your group, as well as transmitting to the entire group. Caller ID is a real bonus when working in larger groups too.
You'll also be able to opt for handsfree operation, meaning you don't have to push the button to communicate, although you'll need to buy an additional headset to make this possible. The VOX option can then be selected in the menus, as well as setting the sensitivity level, so it will respond to positive voice signals, but not laboured breathing for example.
The battery life is also really impressive, giving you about 18 hours from the battery pack, or 20 hours from AAA batteries, so it is not only flexible, but performs well too.
The great thing about the T7 though is the quality of voice transmission, which came over loud and clear and free from interference. Neat features like the roger beep that let you know the other person has finished transmitting make them simple to use and with plenty of volume, so if your handset is stuffed in a rucksack pocket, you'll still be able to hear it.
The T7 are rated to 10km in perfect conditions, which of course will depend very much on terrain and so on. Built-up areas will reduce this significantly, so don't think about ditching your mobile phone, but for group activities outdoors you should be within range.
Thursday, July 16, 2009
The Advantages of Online Forex Trading
The Advantages of Online Forex Trading
Every year the attraction on online trading is fast increasing specifically on trading shares and forex trading. The coming out of a new profession, that is, dealer of currency, was caused by the remarkable development of the Internet. Forex trading can be done now not only in the office but also at home. Hence, the online forex trading was well accepted.The level of qualification for forex brokers was raised due the incredible advancement of online forex trading, the security program and telecommunications. Somehow, the online forex trading made the forex brokers to develop more their abilities for their own sake. Surely, the danger will be lower while on the operation. Thus, if the level of trading qualification is higher, then the trade amount will also be higher.The typical methods of the forex trading were completely changed because of the presence of dealing systems, which is automated in the eighties, together with the co-coordinating systems in the nineties. The systems of dealing are online computer systems wherein the banks are integrated in a united net, whereas, the co-coordinating systems are electronic brokers.The forex traders will have an increased number of present transactions because the dealing systems are very dependable and very efficient. Furthermore, they are safer as you will see the executors of the dealings. The online forex trading is continually expanding precisely of the dependability, safety, and swiftness of the dealing systemsThe online forex trading has been widely accepted considering the basic role of the computers. The dealing systems and the co-coordinating system are interconnected to all the traders of the world, thus, forming an electronic brokers market. The account report, filling vouchers, the work of the secretary, and the methods of lowering the risk are well in place.In order to use your investment capital to the maximum, you should be wise enough to avail the online forex trading. What are the advantages of the forex markets online? They are different compared to the other traders. We have the following advantages.1. The biggest market is the forex market. Forex traders are given approximately limitless liquidity and flexibility.2. The forex trading does not sleep. There is no need to wait for the opening of the market. They are open all night. This is the motive why the online forex trading is very much popular that suits practically to your day or night.3. You will have the same opportunity in having a profit whatever way the currency goes to. Aside from that, there are only fourteen pairs of currencies to trade, as compared to the several thousands of stocks and options.4. The online forex trading gives a great leverage. Your resources for investment will be treated to the fullest on online forex trading. In view of this, traders avail the online forex trading.5. The prices of the online forex trading are unsurprising. Prices of currency, though unstable have the tendency to produce and go along with the trends.6. There are no commissions for online forex trading. No exchange fees or any unknown fees whatsoever. The forex market is so transparent. No computation of commissions or any fees in executing a deal.7. The online forex trading is amazingly fast. The orders can be done within 1-2 seconds. You can choose whichever you think is faster and something that will be profitable for you.
Pros and Cons of Trading With Metatrader
Pros and Cons of Trading With Metatrader
In every item or device we use, they all have their own weaknesses and strengths. In using metatrader4 for trading, we find it useful though it also its limitations.
In using metatrader4 first, you will be able to check if there is still money available on your account. If there is not enough money on the account, the operation of opening a position will not be successful. It is for this reason that one need to have sufficient funds for investments.
With metatrader4, you can access history data by using the predefined arrays of Time, Open, Low, High, Close, and Volume. Due to historical reasons, index in these arrays increases from the end to the beginning. Another way of accessing history data is by using other time intervals and even using other currency pairs.
Another advantage in using the metatrader4 is that you can get the information about errors in the program. The “GetLastError” function is very useful. For example, an operation with an order always returns the ticket number. You can also define the beginning of a new bar but this method can fail while loading the history. That is, the number of bars is changed while the “previous” one has not been finished yet. In this case, you can make checking more complicated by introducing a check for the difference between the values equal to one.
The next method is based on the fact this method can fail to work when there are a lot of incoming price ticks. The matter is that incoming price tricks are processed in a separate thread. And if this thread is busy when the next tick comes, this new incoming tick is not processed to avoid overloading the processor. In this case you can also make checking more complicated by saving the previous “Volume” value.
After all pros and cons review, it is for the user to follow directions on how to use it and care for it so that the trading will be more successful and the goal will be achieved.
Thinking of trying your Luck in the Forex Market
Thinking of trying your Luck in the Forex Market
The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. Compare that to the $25 billion a day volume that the New York Stock Exchange trades. Making money in such a market should be easy, right? Not necessarily. But it can be done. And with the advent of the internet, its now more easier than ever for the average person to get involved in speculative forex trading. In the past, forex trades had to be carried out through a broker and the initial requirement was that you could trade only if you had about ten to fifty million dollars to start with! Today, carrying out a trade can be done by anyone from the comfort of your home or in front of any pc with internet access using an online trading account.
The fact that there is so much risk and yet so much potential involved with forex trading is what draws most people to it, sort of like gambling. Its all about the adrenaline rush. And making money, of course.
There are many benefits and advantages to trading forex such as no commissions, no middlemen, no fixed lot size, low transaction costs, a 24 hour market, no one can corner the market, leverage, high liquidity, free “demo” accounts, news, charts, and analysis and “mini” and “micro” Trading
However, the speed and complexity of market movements can be a deterrent to aspiring investors. Unless you have a trading system you follow and a good grasp of the forex market, you can find yourself struggling.
So many new entrants into the forex market always tend to search for the ‘ultimate’ forex trading system. And there are so many such trading systems being flouted on the internet as the next best thing.
A good trading system will provide you ‘signals’ or ‘alerts’ about market movements as they arise based on popular Forex indicators like the Relative Strength Index and MACD lines. However, what you need is a complete trading system, one that gives you a trading strategy or ‘auto trade’ option, not just a signal service.
With time, it is important that you take the time to develop your own trading strategies. Take the time to sit down and thrash out your entry and exit tactics.
Before you start trading, it is imperative that you ask yourself these questions:
1. How much money are you willing to risk per trade?
2. How much margin are you comfortable with trading on?
3. Do you have a recovery strategy in the event your trades take you below margins.
4. How do you intend to manage the overall growth of your portfolio?
5. Will you take all your profits out or reinvest them to achieve your set targets?
The Foreign Exchange market, also referred to as the "FOREX" or "Forex" or "Retail forex" or “FX” or "Spot FX" or just "Spot" is the largest financial market in the world, with a volume of over $2 trillion a day. Compare that to the $25 billion a day volume that the New York Stock Exchange trades. Making money in such a market should be easy, right? Not necessarily. But it can be done. And with the advent of the internet, its now more easier than ever for the average person to get involved in speculative forex trading. In the past, forex trades had to be carried out through a broker and the initial requirement was that you could trade only if you had about ten to fifty million dollars to start with! Today, carrying out a trade can be done by anyone from the comfort of your home or in front of any pc with internet access using an online trading account.
The fact that there is so much risk and yet so much potential involved with forex trading is what draws most people to it, sort of like gambling. Its all about the adrenaline rush. And making money, of course.
There are many benefits and advantages to trading forex such as no commissions, no middlemen, no fixed lot size, low transaction costs, a 24 hour market, no one can corner the market, leverage, high liquidity, free “demo” accounts, news, charts, and analysis and “mini” and “micro” Trading
However, the speed and complexity of market movements can be a deterrent to aspiring investors. Unless you have a trading system you follow and a good grasp of the forex market, you can find yourself struggling.
So many new entrants into the forex market always tend to search for the ‘ultimate’ forex trading system. And there are so many such trading systems being flouted on the internet as the next best thing.
A good trading system will provide you ‘signals’ or ‘alerts’ about market movements as they arise based on popular Forex indicators like the Relative Strength Index and MACD lines. However, what you need is a complete trading system, one that gives you a trading strategy or ‘auto trade’ option, not just a signal service.
With time, it is important that you take the time to develop your own trading strategies. Take the time to sit down and thrash out your entry and exit tactics.
Before you start trading, it is imperative that you ask yourself these questions:
1. How much money are you willing to risk per trade?
2. How much margin are you comfortable with trading on?
3. Do you have a recovery strategy in the event your trades take you below margins.
4. How do you intend to manage the overall growth of your portfolio?
5. Will you take all your profits out or reinvest them to achieve your set targets?
Forex Signals Services - Path to Profits or Trail to Tears
Retail forex trading is the most risky form of investing, yet every day hundreds, even thousands of people turn to forex as a way to make a quick buck. The idea of taking the time to learn the market and trade a demo account for months before risking real money can sound boring and nonproductive, so many seek out a way to start making money now, fast and easy. They seek out trading signals providers, there are hundreds out there with slick websites and claims of hundreds or thousands of pips per month, for a monthly subscription. The question is: Why do these signals providers really exist if they are truly making the amount of pips and profits they claim to be earning?
Trading for others helps you be a better trader
I personally know someone who provides a forex trade signal. I have been trading with her for 2 years now on a daily basis, but she has been trading this market for more than 5 years and she also trades accounts for others. When I asked why she does the trade signals she exclaimed, “It makes me a better trader, making my trades public. I think twice or even three times before entering a trade, I double and triple check myself.” I thought that was a pretty good answer. She also told me that her percentage of losing trades to winners has diminished since starting the service. Not only does she make a few extra dollars by her subscription service, but she also uses it as a tool to keep her own trading in check. Pretty smart.
The best place to find a scam is on the internet
Yes, there are signal providers that are scams on the internet. Some start business knowing that they are a scam and just want to make as much money as possible from unsuspecting new traders before getting caught. Others actually start out thinking they will be great but soon end up making mistakes and making too many mistakes will soon mark you as a scam, whether you are one or not. In my opinion and years of seeing signals providers come and go, most services start with good intentions, but like with most trading systems they work for awhile and then lose their luster.
It is important to do some due diligence before sending money to any signals provider, for example:
1. Get a recommendation from another trader.
2. Check their website thoroughly, find out when they started giving signals and their trading methodology and performance record, and ask for a reference
3. A good provider will have a reduced rate trial offer
4. Money management is key, whether using a signal service or your own trading. Start with a demo first, then gradually add a mini lot, only adding to lot size if the trade signals prove to be consistently good.
At dailyforex.com we strive to provide helpful information to beginning and experienced traders. Therefore, we will be tracking various signals providers for their service and their monthly pip counts, to shed some light on the darker side of forex. Visit our website and join in the forums discussions regarding these services.
Learn Forex
| Unless your broker or signal provider is calling the shots for you, a certain amount of bona fide forex training is in order. From formal schooling to online education and learn-at-home courses, sorting through the various forex training alternatives can be more confusing than the subject of forex itself. Regardless of where you are in your forex career, make sure you stay abreast of current trends and changes as they apply to forex trading techniques, signals, pips, spreads, and more. As a well-educated forex trader, I still seek counsel from my favorite signal providers just to stay one step ahead. For many, one source of forex education is not enough, as different services offer varying degrees of information about the forex market. Make sure your forex education is both well rounded and from reputable trainers. Before turning over your last paycheck to pay for forex training, do as much research as possible. Study reviews and ask people in forums for advice. Obtain the industry basics through free forex training, including guides and online videos , such as those offered on Forex Justice. Once you have acquired enough information so you can speak intelligently about forex currency trading, consider the breadth of forex training opportunities that await you. Online forex courses come in two flavors: free and pay. Free forex education can range from the bare-boned basics (forex terms and definitions) to more elaborate forex schooling that advanced traders and professionals would need. Pay forex educationincludes courses offered by forex websites and training available from your signal provider. The variety and costs depend on the degree of forex training needed, the duration, materials (if any), and support provided. Understanding upfront what your pay forex training includes is the best way to avoid false expectations and inadequate education. After getting a grip on how the forex market works, you can advance to learning the types of charts needed to make good trading decisions. Charts are useful for technical analyses and teach you to apply historical price actions to your market predictions. Using forex charts to identify trends is paramount to learning when to buy and sell currency pairs. Your forex education will enable you to interpret various reports and graphs that incorporate Japanese candlestick patterns, Fibonacci ratios, the Elliot Wave Theory, and other important formulas. You’ll learn how to measure the market’s volatility with Bollinger Bands. You’ll acquire an appreciation for charting patterns and how they can spot big movements before they happen. You’ll see why leading and lagging indicators play a part in forex signals. You’ll understand why these tools are instrumental in assisting traders gage where the market is headed and which currency pairs to buy or sell. Best of all, you’ll speak the language of forex and reap the benefits this exciting industry has to offer. To begin trading forex currencies, all you need is a reliable computer with a high-speed Internet connection, a good knowledgebase, and, of course, a few hundred dollars or more. Start your education the smart way by reading forex reviews , a good way to avoid traps, spot scams, and invest in worthwhile forex training courses. |
An Introduction to Foreign Exchange
The Foreign Exchange market, also referred to as the "Forex" or "FX" market, is the largest financial market in the world, with a daily average turnover of over US$1.9 trillion - over 32 times larger than the combined volume of all U.S. equity markets.
The foreign exchange market grew out of the abandonment of the Bretton Woods Agreement and the progressive unwinding of the regime of fixed exchange rates in the 1970's.
Contrary to popular belief, the unification of many European currencies into one single currency (the Euro) has only strengthened and rendered more popular the use of foreign exchange as an investment, a hedging instrument and as a tool for speculation. The most marked development has been the growth of foreign exchange in the retail market, the tightening of spreads and drastic improvement of trading conditions for the small trader.
About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.
FX is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).
For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called "the majors." Today, more than 85% of all daily transactions involve trading of the majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.
A true 24-hour market, Forex trading begins each day in Auckland and Sydney and moves around the globe as the business day begins in each financial centre, then to Tokyo, Europe, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
The FX market is considered an Over The Counter (OTC) or "interbank" market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralised on an exchange, as with the stock, futures and options markets.
Forex trading holds several attractions for the individual investor: -
- 24-hour dealing, London Sunday 10pm to London Friday 10pm
- A vast liquid market
- The ability to profit in rising or falling markets
- The logical impossibility of a simultaneous downturn in all markets
- Recognised instruments for controlling risk
- Leveraged trading with low margin requirements
- Zero dealing commission
- Varied dealing sizes
Currency Pairs and the Rate of Exchange
Every foreign exchange transaction is an exchange between two currencies, each denoted by a unique three-letter code. Currency pairings are expressed as two codes usually separated by a division symbol (e.g. GBP/USD), the first representing the "base currency" and the other the "secondary currency". The base currency is the one that you are buying or selling. The exchange rate is the price of one currency in terms of another. For example GBP/USD = 1.7545 denotes that one unit of sterling (the base currency) can be exchanged for 1.7545 US dollars (the secondary currency).
Majors and Crosses
Pairings with the US dollar are known as the "majors". The "big four" majors are:
EUR/USD (Euro/US dollar),
GBP/USD (Sterling/US dollar, known as "cable"),
USD/JPY (US dollar /Japanese yen),
USD/CHF (US dollar / Swiss franc).
Pairings of non-US dollar currencies are known as "crosses".
Cross rates can be derived for Sterling, Euro, Japanese Yen and the Swiss Franc from the aforementioned major pairs but other major currencies to be traded in pairs include the Canadian, Australian and New Zealand dollar, the Swedish, Norwegian and Czech Kronor and the South African Rand.
Spot forex is margined offering a high degree of leverage. As with all highly leveraged products this is a two edged sword as losses will be magnified in addition to profits. Leverage is best defined as the amount, expressed as a multiple, by which the notional amount traded exceeds the margin required to trade. For example, if the notional amount traded (also referred to as the "lot size" or "contract value") is $100,000 and the required margin is $1,000, the client can trade with 100 times leverage ($100,000/$1,000) or 1% margin.
Typical spot forex traders include individual investors, financial professionals and intermediaries, institutional investors and fund managers, introducing agents and brokers
THE ULTIMATE TRADERS PACKAGE
The Ultimate Forex Trading Package is designed to prepare you to trade the forex. Forex education is as important for experienced day traders as it is for beginner forex traders.
The Ultimate Forex Traders Package™, developed by Jared F. Martinez, is a dynamic, interactive and innovative method of providing students with the most comprehensive Forex Education program available. Utilizing live online interactive Forex mentoring, in-depth Forex Video CD and workbook training modules, online Forex trading classes and on-site 2–day Forex classes. This in-depth forex education package also includes Forex trading and charting practice software, forex tools and unlimited support.
Market Traders Institute provides traders the ability to take advantage of the foreign currency exchange, so it doesn't take advantage of them! Empowering our clients to become a world class forex traders! Download MTI's Beginners Guide To The Forex FREE and take the first step to realizing your true Forex trading potential.
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