currencies are traded in dollar amounts called 'lots'. one is equal to 1,000$, whcih control 100,000.$ in currency.
currencies are always traded in pairs in FOREX.
some of common pairs are
EUR/USD EURO /US DOLLAR "EURO"
USD / JPY US DOLLAR / JAPANESSE YEN "DOLLAR YEN"
GBD / USD BRITISH POUND / US DOLLAR "CABLE"
USD / CAD US DOLLAR / CANADIAN DOLLAR "DOLLAR CANADA"
EUR /JPY EURO / JAPANESSE "EURO YEN
this are most useful currecies
Friday, July 31, 2009
Technical Analysis
Technical analysis is an industry term that more often than not sounds much more complicated than the actual process is. Really, it ought to be referred to as “price analysis”, as this would be a more accurate description.
Through the use of charted data traders around the world analyze their market of choice. The objective: attempt to determine future price movement. The means: understanding price movement patterns of the past.
Through the use of charted data traders around the world analyze their market of choice. The objective: attempt to determine future price movement. The means: understanding price movement patterns of the past.
The Power of Small Consistent Returns
For most of us, 'safe investments' are limited to the rate of return that we can earn on our savings accounts or long-term deposits. The return would depend on the interest rate applicable in each country. At the time of writing, November 2007, the interest rate earned on a savings account in Australia is around 7% a year. That is a return of 0.57% a month. Despite this fact, many have preconceptions regarding the type of returns they can make from trading the financial markets.
A novice trader puts on a winning trade and gains between ten to fifty percent of his trading account. He forms a belief that, by trading, he can quickly become a millionaire. Indeed, if we assume a 20% return per month on a $10,000 trading account, we can expect $89,161 by the end of our first twelve months of trading. What if we assume an estimate of 50% return per month? We would have $1,297,463 by the end of the year. Of course, the problem with expectations like these is that they are unrealistic. Even most of those who claim to have made these types of returns have only done so in simulated environments, in trading competitions using game accounts, for example, where real money was not at risk.
A novice trader puts on a winning trade and gains between ten to fifty percent of his trading account. He forms a belief that, by trading, he can quickly become a millionaire. Indeed, if we assume a 20% return per month on a $10,000 trading account, we can expect $89,161 by the end of our first twelve months of trading. What if we assume an estimate of 50% return per month? We would have $1,297,463 by the end of the year. Of course, the problem with expectations like these is that they are unrealistic. Even most of those who claim to have made these types of returns have only done so in simulated environments, in trading competitions using game accounts, for example, where real money was not at risk.
Saturday, July 25, 2009
Educate yourself before trading in Forex market
As in any trading markets, building up your trading skills and knowledge is the very first step that you must take. To further your learning in Forex trading, seminars, workshops, video tutorials, online learning, or even books are handful to help us learn from the professional.
Things You Should Know About Forex Trading
How difficult is it to make money trading the Forex market? How much time does it take to actually be able to make a living trading the Forex market? These and other important aspects of trading are to be discussed in this article.
Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.
Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who
Trading the Forex market has many benefits over other financial markets, among the most important are: superior liquidity, 24hrs market, better execution, and others. Traders and investor see the Forex market as a new speculation or diversifying opportunity because of these benefits. Does this mean that it is easy to make money trading the Forex Market? Not at all.
Forex brokers agree that 90% of traders end up losing money, 5% of traders end up at break even and only 5% of them achieve consistent profitable results. With these statistics shown, I don’t consider trading to be an easy task. But, is it harder to master any other endeavor? I don’t think so, consider musicians, writers, or even other businesses, the success rates are about the same, there are a whole bunch of them who
Learn How to Trade in Forex Market from the Basics
Forex trading is well known as a lucrative way to make money online. It has become an essential part for investor’s portfolio as you can gain thousands in minutes by trading currencies. For those who are new to the forex trading, Forex means Foreign Exchange Market where it involves buying and selling the different currencies of the world. Profits are made through the difference of selling and buying price - you earn when you buy-low and sell-high.
Forex market is a 24-hour market. The trade begins each day in Sydney, and moves around the globe to Tokyo, London, and then New York. Unlike any other financial market, investors can respond to money-value fluctuations caused by economic, social and political events at the time they occur - day or night. Major currencies traded nowadays are U.S. dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.
Forex market is a 24-hour market. The trade begins each day in Sydney, and moves around the globe to Tokyo, London, and then New York. Unlike any other financial market, investors can respond to money-value fluctuations caused by economic, social and political events at the time they occur - day or night. Major currencies traded nowadays are U.S. dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.
Thursday, July 16, 2009
Fundamental Analysis On Forex Trading
It has become imperative for every forex trader to learn how to predict the price trend and which method or software is the best.
When you do forex trading, it is very important to understand the difference between fundamental analysis and technical analysis. A quick explanation of the difference among the two types of analysis is: fundamental analysis focuses on money policy, government policy and economic indicators such as GDP, exports, imports etc within a business cycle framework while technical analysis focuses on price action and market behavior, especially on chart and technical indicators.
Needless to say both schools are equally disparaging about the other, and both believe their techniques are infinitely superior. But the reality is that it has become increasingly difficult to be a purist of either persuasion. Fundamentalists need to keep an eye on the various signals derived from the price action on charts, while few technicians can afford to completely ignore impending economic data, critical political decisions or the myriad of societal issues that influence prices.
Generally speaking, fundamental analysis can only judge which direction the market will move, and technical analysis can supply both direction and rough currency rate.
Keeping in mind that the financial underpinnings of any country, trading bloc or multinational industry takes into account many factors, including social, political and economic influences, staying on top of an extremely fluid fundamental picture can be challenging. Meanwhile, forecasting models are as numerous and varied as the traders and market buffs that create them. Different people can look at the exact same data and come up with two completely different conclusions about how the market will be influenced by it. At the end, some may make huge profit and some lose their money. You can not say fundamental analysis is easy.
Remember, fundamental analysis is a very effective way to forecast economic conditions, but not necessarily exact market prices. For example, when analyzing an economist's forecast of the upcoming GDP or employment report, you begin to get a fairly clear picture of the general health of the economy and the forces at work behind it. However, you'll need to come up with a precise method as to how best to translate this information into entry and exit points for a particular trading strategy.
Tip: If you are new to do forex trading and do not trade frequently, you can mainly use fundamental analysis for your trading.
Don't disturb yourself by information overload. Sometimes traders fall into this trap and are unable to pull the trigger on a trade. Normally, your first feel is the answer for you to do forex trading. At that time, you are sure which currency is strong and which country's economy is good. The more simple, the more useful.
However, trading a particular market without knowing a great deal about the exact nature of its underlying elements is unbelievable. You might get lucky and snare a few on occasion but it's not the best approach over the long haul.
For forex traders, the fundamentals are everything that makes a country tick. From interest rates and central bank policy to natural disasters, the fundamentals are a dynamic mix of distinct plans, erratic behaviors and unforeseen events. Therefore, it is very important to understand fundamental analysis and use them on forex trading.
When you do forex trading, it is very important to understand the difference between fundamental analysis and technical analysis. A quick explanation of the difference among the two types of analysis is: fundamental analysis focuses on money policy, government policy and economic indicators such as GDP, exports, imports etc within a business cycle framework while technical analysis focuses on price action and market behavior, especially on chart and technical indicators.
Needless to say both schools are equally disparaging about the other, and both believe their techniques are infinitely superior. But the reality is that it has become increasingly difficult to be a purist of either persuasion. Fundamentalists need to keep an eye on the various signals derived from the price action on charts, while few technicians can afford to completely ignore impending economic data, critical political decisions or the myriad of societal issues that influence prices.
Generally speaking, fundamental analysis can only judge which direction the market will move, and technical analysis can supply both direction and rough currency rate.
Keeping in mind that the financial underpinnings of any country, trading bloc or multinational industry takes into account many factors, including social, political and economic influences, staying on top of an extremely fluid fundamental picture can be challenging. Meanwhile, forecasting models are as numerous and varied as the traders and market buffs that create them. Different people can look at the exact same data and come up with two completely different conclusions about how the market will be influenced by it. At the end, some may make huge profit and some lose their money. You can not say fundamental analysis is easy.
Remember, fundamental analysis is a very effective way to forecast economic conditions, but not necessarily exact market prices. For example, when analyzing an economist's forecast of the upcoming GDP or employment report, you begin to get a fairly clear picture of the general health of the economy and the forces at work behind it. However, you'll need to come up with a precise method as to how best to translate this information into entry and exit points for a particular trading strategy.
Tip: If you are new to do forex trading and do not trade frequently, you can mainly use fundamental analysis for your trading.
Don't disturb yourself by information overload. Sometimes traders fall into this trap and are unable to pull the trigger on a trade. Normally, your first feel is the answer for you to do forex trading. At that time, you are sure which currency is strong and which country's economy is good. The more simple, the more useful.
However, trading a particular market without knowing a great deal about the exact nature of its underlying elements is unbelievable. You might get lucky and snare a few on occasion but it's not the best approach over the long haul.
For forex traders, the fundamentals are everything that makes a country tick. From interest rates and central bank policy to natural disasters, the fundamentals are a dynamic mix of distinct plans, erratic behaviors and unforeseen events. Therefore, it is very important to understand fundamental analysis and use them on forex trading.
Will I get rich from Forex? Definitely! Are you ready to learn?
The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day.
That is larger than all US equity and Treasury markets combined!
Unlike other financial markets that operate at a centralized location (i.e. stock exchange), the worldwide Forex market has no central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in the buying and selling of national currencies. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.
Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. With advances in technology over the years, however, the Forex market is now available to everybody, from banks to money managers to individual traders trading retail accounts. The time to get involved in this exciting, global market has never been better than now. Open an account and become an active player in the largest market on the planet.
The Forex Market is very different than trading currencies on the futures market, and a lot easier, than trading stocks or commodities.
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the exchange of currencies. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollar.
So you know how it is financially rewarding if you traded successfully in the forex market every single day. Whether a bad economy or not, it has made millions taking advantage of the flactuations in the market. And the good thing is that trading is now available to all of us, having internet access and right knowledge creates wealth.
Ok, ok , i got your point, how do I start trading in forex?
Well, forex is like any other investment or business, it has signifitcant amount of loss sometime.But it is better than having a job because you can work for so little time, yet earn so much more. There is a career waiting for people who are willing to exert their effor, time and mind to learning and benefiting from the Currency Market.
That is larger than all US equity and Treasury markets combined!
Unlike other financial markets that operate at a centralized location (i.e. stock exchange), the worldwide Forex market has no central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in the buying and selling of national currencies. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.
Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. With advances in technology over the years, however, the Forex market is now available to everybody, from banks to money managers to individual traders trading retail accounts. The time to get involved in this exciting, global market has never been better than now. Open an account and become an active player in the largest market on the planet.
The Forex Market is very different than trading currencies on the futures market, and a lot easier, than trading stocks or commodities.
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the exchange of currencies. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollar.
So you know how it is financially rewarding if you traded successfully in the forex market every single day. Whether a bad economy or not, it has made millions taking advantage of the flactuations in the market. And the good thing is that trading is now available to all of us, having internet access and right knowledge creates wealth.
Ok, ok , i got your point, how do I start trading in forex?
Well, forex is like any other investment or business, it has signifitcant amount of loss sometime.But it is better than having a job because you can work for so little time, yet earn so much more. There is a career waiting for people who are willing to exert their effor, time and mind to learning and benefiting from the Currency Market.
16.Money Management Principles
One of the worst blunders that forex traders can make is attempting to trade without sufficient capital.
The trader with limited capital not only will be a worried trader, always looking to minimize losses beyond the point of realistic trading, but he will also frequently be taken out of the trading game before he can realize any sense of success trading the method(s) or patterns.
Exercise Discipline
Discipline is probably one of the most overused words in forex trading education. However, despite the clich¨¦, discipline continues to be the most important behaviour one can master to become a profitable trader. Discipline is the ability to plan your work and work your plan.
It¡¯s the ability to give your trade the time to develop without hastily taking yourself out of the market simply because you are uncomfortable with risk. Discipline is also the ability to continue to trade the methods and patterns even after you¡¯ve suffered losses. Do your best to cultivate the degree of discipline required to be a world-class trader.
Employ Risk-to-Reward Ratios
The following shows you possible risk-to reward ratios, and the win ratios required to break even in a trading system.
Risk-to-Reward Ratio (in pips)and Win Ratio Required to Break Even(%)
40/20 (2 to 1) = 67%, 40/40 (1 to1) = 50%, 40/60 (1 to 1.5) = 40%,
40/80 (1 to 2) = 33.5%,
60/20 (3 to 1) = 75%,
60/60 (1 to 1) = 50%,
60 /90 (1 to 1.5) = 40%,
60/120 (1 to 2) = 33.5%
Important Note
Never risk more pips on a trade then you plan to make. It doesn¡¯t make sense to risk 100 pips in order to make only 10. Why? See below example.
Profit taking level (pips): 10
Stop used or pips at risk: 100
You win 10 times which makes 100 winning pips. You ONLY lose once and have to give back all profits!!!
This type of trading makes no sense and you will lose on the long term guaranteed!
The trader with limited capital not only will be a worried trader, always looking to minimize losses beyond the point of realistic trading, but he will also frequently be taken out of the trading game before he can realize any sense of success trading the method(s) or patterns.
Exercise Discipline
Discipline is probably one of the most overused words in forex trading education. However, despite the clich¨¦, discipline continues to be the most important behaviour one can master to become a profitable trader. Discipline is the ability to plan your work and work your plan.
It¡¯s the ability to give your trade the time to develop without hastily taking yourself out of the market simply because you are uncomfortable with risk. Discipline is also the ability to continue to trade the methods and patterns even after you¡¯ve suffered losses. Do your best to cultivate the degree of discipline required to be a world-class trader.
Employ Risk-to-Reward Ratios
The following shows you possible risk-to reward ratios, and the win ratios required to break even in a trading system.
Risk-to-Reward Ratio (in pips)and Win Ratio Required to Break Even(%)
40/20 (2 to 1) = 67%, 40/40 (1 to1) = 50%, 40/60 (1 to 1.5) = 40%,
40/80 (1 to 2) = 33.5%,
60/20 (3 to 1) = 75%,
60/60 (1 to 1) = 50%,
60 /90 (1 to 1.5) = 40%,
60/120 (1 to 2) = 33.5%
Important Note
Never risk more pips on a trade then you plan to make. It doesn¡¯t make sense to risk 100 pips in order to make only 10. Why? See below example.
Profit taking level (pips): 10
Stop used or pips at risk: 100
You win 10 times which makes 100 winning pips. You ONLY lose once and have to give back all profits!!!
This type of trading makes no sense and you will lose on the long term guaranteed!
Online Currency Trading requires Patience
When the going gets tough, the tough get going. This adage often brings back the memories of my past days when I was trading initially in the currency exchange market. Indeed, there's nothing more hurtful than losing your invested money in the FX market. But, online currency trading is like life where you're got to learn from your wrong moves and keep moving on. Learning the basic skills of online forex trading could be easy but, practically, one needs to acquire the advanced skills to play safe through thick and thin of FX trading.
I have traded in forex for many years and, if you count on me, I must tell you that the secret of successful trading lies largely on the hunch and intuition of an trader. Technically expressed, you should have the accurate forex alerts and forex signals to be able to make the right moves in the currency market. However, this is easier said than done as the skills of the Currency Trading Signal takes a long time to master. This is why while a few people are able to boost their forex pips in a short span of time, the others take a long time to achieve the same or maybe, some of them get frustrated and just give it up! The reality is that not many people are ready to be entirely devoted to the perilous process of online forex trading.
Having said this, I still wonder why some people choose to be a dare-devil and risk their money instead of simply following an established and renowned Account Forex Online Trading. I began trading in 1997 and there is one important thing I have learnt in my trading career so far, i.e., you have to got to be patient to learn the tricks of making right moves at the right times and profit from your trading.
Since I have led quite a successful career in forex trading, I have been sharing the tips and tricks of online currency trading with many traders around the world through my G7 Forex Trading System which as you know has remained pretty successful for many traders so far. My G7 Forex Trading System is an easy-to-follow, step-by-step trading manual offering in-depth online forex trading review.
If you visit my site (www.forex-science.com) you will find many of my existing customers are pretty satisfied with the performance of their investments and in fact, most of them have been able to increase their forex pips drastically. You would be surprised to know quite a few of them haven't traded for a long time! Now, this is what we call success in the forex trading, eh?
I have traded in forex for many years and, if you count on me, I must tell you that the secret of successful trading lies largely on the hunch and intuition of an trader. Technically expressed, you should have the accurate forex alerts and forex signals to be able to make the right moves in the currency market. However, this is easier said than done as the skills of the Currency Trading Signal takes a long time to master. This is why while a few people are able to boost their forex pips in a short span of time, the others take a long time to achieve the same or maybe, some of them get frustrated and just give it up! The reality is that not many people are ready to be entirely devoted to the perilous process of online forex trading.
Having said this, I still wonder why some people choose to be a dare-devil and risk their money instead of simply following an established and renowned Account Forex Online Trading. I began trading in 1997 and there is one important thing I have learnt in my trading career so far, i.e., you have to got to be patient to learn the tricks of making right moves at the right times and profit from your trading.
Since I have led quite a successful career in forex trading, I have been sharing the tips and tricks of online currency trading with many traders around the world through my G7 Forex Trading System which as you know has remained pretty successful for many traders so far. My G7 Forex Trading System is an easy-to-follow, step-by-step trading manual offering in-depth online forex trading review.
If you visit my site (www.forex-science.com) you will find many of my existing customers are pretty satisfied with the performance of their investments and in fact, most of them have been able to increase their forex pips drastically. You would be surprised to know quite a few of them haven't traded for a long time! Now, this is what we call success in the forex trading, eh?
Forex Profits by buying and selling at the same time?
This article is one of a series which looks at the advantages and weaknesses of trading using the hedged, grid trading system to trade volatile markets.
We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.
The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let's take some to look at this more closely.
Let's say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.
The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let's assume that the price moves back to level 100.
The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.
Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.
The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some champagne.
There are many, many other market movements that turn this strange buy and sell at the same time activity into gains. These will be covered in future articles and are covered in a free grid trading course which is available at the expert-4x.com website for those traders whose curiosity has been aroused.
There will be more on the hedged grid trading articles to be issued regularly. Please watch Forex Article Collection for future articles.
We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.
The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let's take some to look at this more closely.
Let's say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.
The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let's assume that the price moves back to level 100.
The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.
Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.
The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some champagne.
There are many, many other market movements that turn this strange buy and sell at the same time activity into gains. These will be covered in future articles and are covered in a free grid trading course which is available at the expert-4x.com website for those traders whose curiosity has been aroused.
There will be more on the hedged grid trading articles to be issued regularly. Please watch Forex Article Collection for future articles.
Forex UK - and the housing crisis.
Tuesday, 15 July 2008 15:08
As one learns the phrase "housing crisis" spoke, the U.S. Directly springs to mind. Not without cause, naturally, because the United States housing marketplace is the biggest in the world, and the range of any U.S. housing crisis is certain to overshadow a corresponding dilemma in any other nation, in absolute terms. Simultaneously, let us not forget that costs in the United Kingdom, for instance, started out to fall earlier than in the United States. Additionally, as a editorialist points out, the affect of the UK housing dilemma may be comparatively larger on the United Kingdom economic system. While a few of the statistics he cites are in question, housing and consumer debt could in fact be bigger in the UK than in the United States. As a consequence, the ongoing correction in housing costs would be expected to penalise the United Kingdom to a higher degree than the U.S.. The account may be the same for the Pound, vis-a-vis the U.S. Dollar bill. Currency & marketplace articles: forex uk
[Our analyst] is...a long-term bear about the Brits pound and thinks some rallyings in the money stand for an opportunity to go in short at a more favorable price. Selling the British pound versus the dollar on a 10-12 calendar month time frame might give one of the better opportunities in the money marketplace today.
As one learns the phrase "housing crisis" spoke, the U.S. Directly springs to mind. Not without cause, naturally, because the United States housing marketplace is the biggest in the world, and the range of any U.S. housing crisis is certain to overshadow a corresponding dilemma in any other nation, in absolute terms. Simultaneously, let us not forget that costs in the United Kingdom, for instance, started out to fall earlier than in the United States. Additionally, as a editorialist points out, the affect of the UK housing dilemma may be comparatively larger on the United Kingdom economic system. While a few of the statistics he cites are in question, housing and consumer debt could in fact be bigger in the UK than in the United States. As a consequence, the ongoing correction in housing costs would be expected to penalise the United Kingdom to a higher degree than the U.S.. The account may be the same for the Pound, vis-a-vis the U.S. Dollar bill. Currency & marketplace articles: forex uk
[Our analyst] is...a long-term bear about the Brits pound and thinks some rallyings in the money stand for an opportunity to go in short at a more favorable price. Selling the British pound versus the dollar on a 10-12 calendar month time frame might give one of the better opportunities in the money marketplace today.
Forex Money Management
Arrange 2 greenhorn traders before the screen, furnish them with your top high-probability set-up, and for adept measure, let each one take on the opposite face of the trade. Most likely, both will end up turning a loss profit. Yet, whenever you get 2 professionals and let them trade the opposite way from one another, rather often both traders will end up gaining revenue - despite the apparent contradiction of the premise. What's the deviation? What are the most significant factors separating the veteran traders from the amateurs? The response is revenue management.
Much like dieting and figuring out, revenue management is something that more traders give lip service to, but fewer apply in actual life. The rationality is simple: just like eating wholesome and remaining fit, money management can appear like a taxing, awful activity. It pressures traders to perpetually monitor their holdings and to conduct requisite losses, and few folks like to do that. All the same, loss-taking is critical to long-term trading success.
Much like dieting and figuring out, revenue management is something that more traders give lip service to, but fewer apply in actual life. The rationality is simple: just like eating wholesome and remaining fit, money management can appear like a taxing, awful activity. It pressures traders to perpetually monitor their holdings and to conduct requisite losses, and few folks like to do that. All the same, loss-taking is critical to long-term trading success.
Forex Automated Trading
Forex Automated Trading is a way of trading that takes neither human deciding nor participation, but applies a pre-programmed strategy founded on technical or fundamental analysis to mechanically perform trades thru an machine-driven software package programme.
For Example you own a trading account at a broker that calls for a 1% margin deposit for all trades. The actual quote for EUR/USD is 1.9225/28 and you prefer to send a marketplace order to buy one regular lot of hundred thousand Euros at 1.4328, for a total value of US$143,280 (100,000 * $1.4328). The broker asks you to deposit one% of the total, or $1432.80 to start the trade. Concurrently you place a take-profit order at 1.4378, 50 pips above your rate cost. In accepting this trade you anticipate the Euro to beef up against the U.S. dollar.
As you anticipate, the Euro strengthens versus the U.S. dollar and you take your earnings at 1.4378, closing down the trade. While each pip is worth US$10, your total profit for this trade is $500, for a complete return of 38%.
For Example you own a trading account at a broker that calls for a 1% margin deposit for all trades. The actual quote for EUR/USD is 1.9225/28 and you prefer to send a marketplace order to buy one regular lot of hundred thousand Euros at 1.4328, for a total value of US$143,280 (100,000 * $1.4328). The broker asks you to deposit one% of the total, or $1432.80 to start the trade. Concurrently you place a take-profit order at 1.4378, 50 pips above your rate cost. In accepting this trade you anticipate the Euro to beef up against the U.S. dollar.
As you anticipate, the Euro strengthens versus the U.S. dollar and you take your earnings at 1.4378, closing down the trade. While each pip is worth US$10, your total profit for this trade is $500, for a complete return of 38%.
Forex Trading and Your Emotions
Be emotionless: Two biggest emotions in trading: greed and fear. Do not let greed and fear regulate your trade. Trading is a machinelike operation and it's not for the emotional ones. If you sit next to a productive trader and keep an eye on him or her, you may not be able to tell whether he or she is producing or losing revenue. That's how emotionally stable a prosperous trader is.
Don't trade based on leads from other people: Trade only when you've finished your own research. Be an aware trader.
Maintain a trading diary: When you purchase a marketplace instrument, write down the causes why you buy, and your intuitive feeling* at that time. You behave the same when you sell. Dissect and put down the errors you have made, likewise the things that you have done right. By consulting to your trading journal, you learn from your previous errors. Improve on your errors, keep on acquiring and keep rising.
Don't trade based on leads from other people: Trade only when you've finished your own research. Be an aware trader.
Maintain a trading diary: When you purchase a marketplace instrument, write down the causes why you buy, and your intuitive feeling* at that time. You behave the same when you sell. Dissect and put down the errors you have made, likewise the things that you have done right. By consulting to your trading journal, you learn from your previous errors. Improve on your errors, keep on acquiring and keep rising.
Plan Your Trades
Plan your trade and trade your plan: You must have a trading program to win. A Forex trading program should consist of positioning, why you get in, stop loss point, income taking level, a healthy profit management scheme. A beneficial program will take away all the emotions from your deals. All this advise can you master it in our free forex forum and chat room. And use a free forex buy and sell indicator that can find in your platform.
The trend is your friend: don't charge the course. When the marketplace is bullish, go long. On the other hand, if the market is pessimistic, you short. Never go against the trend. You must obey your indicator to succeed in forex trading.
The trend is your friend: don't charge the course. When the marketplace is bullish, go long. On the other hand, if the market is pessimistic, you short. Never go against the trend. You must obey your indicator to succeed in forex trading.
Forex Killer
Whenever you are searching an automatic, forex trading signal generator that may assist you better your forex trading results, you have got to check into the Forex Killer Trading System.
Among the biggest troubles that traders face is determining when to get into a trade. This indecisiveness as to whether the signal is “correct” or “wrong” makes an unbelievable quantity of uncertainness which may cause you to overlook extremely rewarding trades!
With Forex Killer, you receive a entirely impartial, automated and mechanised trading signal source that takes away any doubt from making a trade. This means you no longer will question “if only” you had acquired that trade that soared sky high into revenues.
There is no longer imagining whether you had better acquire a trade since your trading scheme is entirely and wholly generated by the Forex Killer software package. It is unemotional, it is indifferent, and it may be extremely advantageous for you.
Whether you're a day-trader or position trader, the Forex Killer system of rules works good in ascertaining your advantageous trades to acquire. With the probability calculator, you will be able to determine whether to acquire only trades that come with a seventy% or greater chance of being fruitful!
By acting so, you're already utilising statistical analysis to set the odds in your favor. It means you could have to pass by on a few signals, but hey, you are able to still confirm those shorter chance swops with any different filters or indicants you have. Nonetheless, Forex Killer already takes away a big burden of coming up with rewarding trades off your spine!
Emotions are a hard matter to suppress, and it is the scourge of a lot of traders who may have progressed to gain 100s of thousands of bucks from trading the forex marketplaces.
I have discovered that the Forex Killer can and does take away emotion and guessing from trading, and when applied correctly you will be able to make 100s of pips a calendar month. Just verify the trading out comes that forexusa.com and the Forex Killer squad make each month!
Among the biggest troubles that traders face is determining when to get into a trade. This indecisiveness as to whether the signal is “correct” or “wrong” makes an unbelievable quantity of uncertainness which may cause you to overlook extremely rewarding trades!
With Forex Killer, you receive a entirely impartial, automated and mechanised trading signal source that takes away any doubt from making a trade. This means you no longer will question “if only” you had acquired that trade that soared sky high into revenues.
There is no longer imagining whether you had better acquire a trade since your trading scheme is entirely and wholly generated by the Forex Killer software package. It is unemotional, it is indifferent, and it may be extremely advantageous for you.
Whether you're a day-trader or position trader, the Forex Killer system of rules works good in ascertaining your advantageous trades to acquire. With the probability calculator, you will be able to determine whether to acquire only trades that come with a seventy% or greater chance of being fruitful!
By acting so, you're already utilising statistical analysis to set the odds in your favor. It means you could have to pass by on a few signals, but hey, you are able to still confirm those shorter chance swops with any different filters or indicants you have. Nonetheless, Forex Killer already takes away a big burden of coming up with rewarding trades off your spine!
Emotions are a hard matter to suppress, and it is the scourge of a lot of traders who may have progressed to gain 100s of thousands of bucks from trading the forex marketplaces.
I have discovered that the Forex Killer can and does take away emotion and guessing from trading, and when applied correctly you will be able to make 100s of pips a calendar month. Just verify the trading out comes that forexusa.com and the Forex Killer squad make each month!
Difference between forex and stock
1. The Forex market has a lot of advantages compare to stock market: A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.
2. Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.
3. Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.
Ice land stock exchange
Iceland Stock Exchange (Icelandic: Kauphöll Íslands) or ICEX was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the central bank. Trading began in 1986 in Icelandic government bonds, and trading in equities began in 1990. Equities trading increased rapidly thereafter. A wide variety of firms are currently listed on the exchange, including firms in retail, fishing, transportation, banks, insurance and numerous other areas. Because of the small size of the Icelandic economy and the low cost of public listing, many of the companies traded on the ICEX are relatively small and are relatively illiquid.
All domestic trading of Icelandic bonds, equities and mutual funds takes place on the ICEX. Bonds and equities are regularly traded, though the liquidity is small in comparison with other exchanges. No mutual funds are currently listed on the market. Since its founding, the ICEX has used various electronic systems. Since 2000, it has used the SAXESS system of theNOREX alliance, which allows for the cross-listing of stocks on Nordic stock exchanges. No foreign company lists directly on the ICEX, as the small size and illiquidity of the market makes such a move redundant. Conversely, few Icelandic firms have listed abroad, including DeCODE.Faroese bonds were listed on behalf of Virðisbrævamarknaður Føroya in November 2003, and since December 2007 four Faroese equities have been listed on the OMX Nordic Exchange in Iceland.
Since 1 January 1999, the ICEX has operated as a private company, owned by the listed companies (29%), member firms (29%), the Central Bank of Iceland (16%), pension funds (13%) and the Association of Small Investors (13%).
Þórður Friðjónsson is the current president of ICEX (February 2006). ICEX agreed to be taken over by larger rival OMX Nordic Exchange on 19 September 2006. [1]
On 6 October 2008, the Icelandic Financial Supervisory Authority decided to temporarily suspend trading on regulated market financial instruments issued by Glitnir, Kaupthing Bank, Landsbanki, Straumur Investment Bank, Spron and Exista.[2] When the exchange reopened on 14 October, the stock index fell by 76% [3].
Forex home bussiness
The more you understand about any subject, the more interesting it becomes. As you read this article you’ll find that the subject of forex home business is certainly no exception.
When running a forex home business, a person quickly gains knowledge of how the business world works. Whether it be selling crafts, doing a home delivery business, or selling real-estate, after investing a lot of time and effort into a home or small business, a person quickly becomes aware of the few basic business truths that govern business.
One of those truths is that you have to have time and money to start a small business or any business for that matter. More often than not, the people that have the time dont have the money to invest in a home-based business and the people that have the money dont have the time. With Forex home business, it is quite possible to generate an income with a small time investment per day, after studying FOREX for a few months, and a very small investment as little as $50 in some cases.
The second truth, and these are probably quite obvious to most people, is that in order to make money a business has to have some sort of product to sell or perform some type of service. In the FOREX world, nothing is being sold and no service is being performed, but rather money is being exchanged. You are making a profit based on the actual exchange value of one currency against another currency. This eliminates the need for employees, such as customer service personnel and human resource people if your company were to become that big.
Is everything making sense so far? If not, I’m sure that with just a little more reading, all the facts will fall into place.
Also, because of the huge size of the FOREX market, trading nearly $1.5 trillion dollars a day, such things as social events, bad publicity, and changes in political climate will have no effect on your business. In fact, after studying FOREX, you will be able to see how these things will actually benefit your FOREX home business.
The third and last classical business truth is that most people are prevented from starting a home-based business because they dont feel good enough about themselves. They dont feel like theyre educated enough. I read stories all of the time about people that feel passionate about something or they just pick something that they are relatively good at or have done before and start a business. They just take a chance. If you want to do it, step out. Take that first step. Dont drop any huge sums of money, of course, but do a little research, make a small investment and start your adventure down to the road to FOREX trading.
When running a forex home business, a person quickly gains knowledge of how the business world works. Whether it be selling crafts, doing a home delivery business, or selling real-estate, after investing a lot of time and effort into a home or small business, a person quickly becomes aware of the few basic business truths that govern business.
One of those truths is that you have to have time and money to start a small business or any business for that matter. More often than not, the people that have the time dont have the money to invest in a home-based business and the people that have the money dont have the time. With Forex home business, it is quite possible to generate an income with a small time investment per day, after studying FOREX for a few months, and a very small investment as little as $50 in some cases.
The second truth, and these are probably quite obvious to most people, is that in order to make money a business has to have some sort of product to sell or perform some type of service. In the FOREX world, nothing is being sold and no service is being performed, but rather money is being exchanged. You are making a profit based on the actual exchange value of one currency against another currency. This eliminates the need for employees, such as customer service personnel and human resource people if your company were to become that big.
Is everything making sense so far? If not, I’m sure that with just a little more reading, all the facts will fall into place.
Also, because of the huge size of the FOREX market, trading nearly $1.5 trillion dollars a day, such things as social events, bad publicity, and changes in political climate will have no effect on your business. In fact, after studying FOREX, you will be able to see how these things will actually benefit your FOREX home business.
The third and last classical business truth is that most people are prevented from starting a home-based business because they dont feel good enough about themselves. They dont feel like theyre educated enough. I read stories all of the time about people that feel passionate about something or they just pick something that they are relatively good at or have done before and start a business. They just take a chance. If you want to do it, step out. Take that first step. Dont drop any huge sums of money, of course, but do a little research, make a small investment and start your adventure down to the road to FOREX trading.
learn about 5 new Bussiness
1. Do something you love.
If you are in a business that you hate, then it's a good bet you won't be successful. Find where your true passion, talents and skills lie and get in a business that exploits them. The saying, "Do what you love and the money will follow" is true. Remember success is more attitude than aptitude and never forgetthat failure is only the opportunity to begin again more intelligently.
2. Believe in yourself and think positive.
Although it certainly helps to have an in-demand product, its more important that you believe in your product whole-heartedly. If you have a positive frame of mind going into your venture, if you believe you will be successful, your energy and enthusiasm will communicate itself to others and you will be successful! It won't happen overnight, but it will happen if you plan and promote to the very best of your ability.
3. Even though it's home-based, it's still work.
One of the hardest aspects of owning your own business is maintaining the discipline or motivation to work each day. It's so easy to get distracted and put off the essential tasks that need to get done. Don't sleep late or watch daytime TV during work hours. It's tempting sometimes, but successful businessesare built on the days that you don't feel like it, not on the days that you do. Develop a to-do list EVERYDAY. Set goals for the week. We all struggle with this and it's one of the key elements of success.
4. Only fools rush in - don't be one of them.
The first and most important thing you need to acquire in order to succeed in a small business is... knowledge. Talk to any succeessful marketer and he or she will tell you that one of the primary reasons for their success is their passion for learning all there is to learn about their business - and about thebusiness of conducting their business. From my own experience (I was one of the fools) I'd advise you to do all the research you can and learn as much as you can about how business operates on the internet before you take the big plunge. There are thousands of resources you can use - the best of which are all organized and categorized for you right at websuccessmaker.com.
5. Your computer is your lifeline, make sure it's reliable.
If you're planning on conducting the majority of your business on line, don't count pennies when it comes your computer set-up. Plan for success by paying a little extra up front for the fastest modem, the most memory, the speediest processor, a printer with fax, etc. It may cost a bit more up front, but you'll be grateful you did down the line.
Online forex
Mistakes Can be Expensive In Forex Trading - Part 2 Another common, but costly mistake is when investors buy and trade on unfounded tips. This is one of the most common mistakes, even with more experienced traders. It is easy to be tempted to buy or trade...
Forex is the one of the risky bussiness
In each and every business there is the risk but the about the forex is the one of the greatest risky business ever. Therefore while you are investing in this business you should know that you are going to bear the risk...
Forex optimizer
Absolutely new revolutionary trade platform, is intended both for beginners, and for the tempered traders of Forex. Beginners can study market Forex, using a simulator, not risking the capitals and not being connected to the Internet. For more skilled traders Forex Optimizer allows to create and optimize trade strategy, not having knowledge in programming to operate (to make trading operations) the real account of the broker. The platform can offer professionals greater functionality for application of the strategy and methods of trade in market Forex
Personal finance and profit
If you are constantly surfing the net for the right Forex strategy and do not know which training course to attend to get the best hands-down knowledge abut this business, you are reading the right article for finding the right answers. The first step to get started with Forex trading is to decide on the amount of investing money and then decide on the most cost-effective training program to help you get
Forex trading system
Here you will find a big selection of trading systems, remember there is a trading system for each type of trader.No one system can work for every Body, so take your time and go threw the products and find the one that is right for you.
Ten tips to loose nothing
Many thing has b e e n s aid ab o ut F o r e x b ut o ne thing that r e lative ly c o m e s to m ind w he n w e talk o f F o r e x is ho w r is k y it is ? C an o ne tr ade F o r e x w itho ut any lo s s ? this is a m illio n do llar que s tio n. Altho ug h o ne w ill s ay it is no t p o s s ib le to tr ade F o r e x w itho ut lo s ing . E as y F o r e x tr ading c an
Validate the companies reputation
So remember:
1. Validate the companies reputation.
2. Make sure they are tied to the forex legitimatly.
3. If the company is small and unheard of, stay away.
4. Finally if the broker has a proven online track record, a legitimate financial institution affiliation, and a few good reviews, give them a try.
My ultimate advice is, if unsure, invest the smallest amount you can, and find out for yourself. This is how i usually used to find brokers, and it worked for me.
The attraction of the forex market
The attraction of the forex market can be overwhelming. The scent of huge profits often overpower the common sense of the average person. They enter eagerly, just waiting to invest their life savings.Lying in wait are the scammers with huge promises, they capture the new investors money, and suddenly dissapear.
The good news is, is that many genuine forex brokers do actually exist. Easy-Forex, Oanda, and many more have proven track records that justify their positions in the market. Usually if a company is small, has no affiliation to forex or a financial institution, then stay away. Also a word on looking for reviews about brokers online. You can find honest reviews on forex brokers online, however there seems to be a habit of late of competing forex companies, and/or traders engaging in negative marketing of each other. Dig deeper and you will usually find an honest answer.
Choosing a forex broker
At the best of times Forex currency trading can be a risky business with a huge potential for profit or loss. As a fulltime trader i have seen the best and the worst that the forex market has to offer, the dizzying highs of large wins, and the gut wrenching lows of people going bust.
You might be a forex trader yourself, or maybe you are just curious about how forex markets work, whomever you are, you need to learn how to seperate the legit forex brokers from the scam merchants. The internet has a great deal of genuine forex dealers offering quality services, it is also unfortunately infected with just as many thieves dressed up as companies who will gladly take your money and then dissapear. This fear of being taken advantage of puts a lot of people off the idea of trading forex, this shouldn't be the case.
Now there are a few key differences between stock markets and forex markets that you are going to have to learn:
1. Forex has no centralised exchange house.
2. Forex trading is 24/7.
3. Forex is a largely unregulated market.
Looking at that list, it kind of seems that the forex market is akin to a wild west town full of outlaws and gunslingers. In this market there is noone to complain to, noone who will hold your hand. So how can you find the genuine dealers amid all the garbage? Do not trust any broker whose reputation cannot be confirmed, and whose company is not tied to the forex market
The forex markets have a very high liquidity
The forex markets have a very high liquidity, which is the amount of money traded, and therefore they are able to absorb large trades worth millions of dollars without the market being affected. If a person has several million dollars to trade with and wants to convert one currency to another indefinitely, forex trading is well suited.In a forex trading, traders can place up to 100 lots at a time and can also place stops, trailing stops or limits on open positions or have them preset on market orders. Sometimes they are traded with zero commissions and fees. Forex trading is not confined to one lot increment. Clients are able to trade .5 of a lot.1.2 lot or any amount where each lot is equal to 100000 currency units.It is possible for trading managers and funds to trade multiple customer accounts from a single window and a block order can be split up among multiple customer accounts as specified by the trader. Also traders can open positions in the same currency in the opposite directions without using any additional margin or without the positions offsetting. If the margin is low, there is more flexibility without getting a marginal call.The failure in online forex trading can be attributed to various factors like:
Over trading: the trades should be considered well before trading because each faculty trade may drain equity.Bad money management: the risk can be overcome using stop loss orders since single bad trade may nullify the whole year's patient smart trade. It is advisable not to risk a high percentage on a single trade.
Lack of knowledge: having a basic knowledge and equipping oneself is imminent before plunging into forex trading online. The knowledge and education of a trader play a vital role between the success and failure in the forex market.Websites offer a wide range of demo account, which can be practiced and utilized.Online forex trading offers a great opportunity for profits but with a high degree of risk. Therefore proper knowledge and guidance are essential for a beginner to take on online forex trading
Online forex tips and tricks
Currencies are the money of different countries and currency trading is the exchange of buying and selling of these currencies. Forex (FOReign EXchange) trading is one of the popular ways of trading in the currency markets. The actual exchange rate between the two markets is done through forex trading. The most popular forex market is the Euro to US dollar exchange rate that trades the value of one Euro in US dollars.Since forex markets are global markets, they trade round the clock. Forex markets differ from day trading markets in that forex markets are decentralized and are not provided by an exchange.
The trades are directly between two traders and there could be many different exchange rates for the same currencies depending upon the location of the traders and the brokers being used.The currencies are traded directly in a forex market and the minimum amount that can be traded is known as a lot, which is at least 25,000 dollars generally. This is a margin amount and the individual traders need not be anywhere near the lot size in trading their account since the forex broker would offer the lot size instead
Money management
Money management is another key component of any comprehensive currency trading strategy. Many traders unfortunately ignore this critical aspect of the forex markets. The best trading strategy goes for naught if your account blows up with a few initial large trades. Effective money management prevents putting at risk any more than a small percent of your portfolio on any one given trade. Left to their own devices many forex traders end up violating their own rules.
A forex autopilot robot stubbornly sticks to the set limits and does not deviate based upon exuberance or greed. The same can not be said for many forex participants who trade on their own whims. A robot imparts disciplined to even the most undisciplined traders. It can both assist in strategy formulation as well as acting akin to your forex personal trainer keeping you on the right path.
With the majority of currency accounts today you are able to test and refine strategies using your robot without risking a cent. Most accounts contain a practice mode which enables you to engage in dry runs in simulation mode. Making initial mistakes or refining given nuances of your strategy without corresponding financial risk is quite an advantage. This is especially salient for a novice trader.
Forex strategies are only as good as your ability to effectively deploy them. Automated software goes a long way in this regard. If you are an experienced trader you owe it to yourself to check out the benefits of a robot. If you are new to the forex markets, then a robot can be your guide into the new thrilling forex experience.
Forex strategies Towards Major profit
Forex strategies are the underpinning of any good currency trading regimen. There are myriad currency trading strategies as diverse as the traders who adhere to them. Shrewd traders are increasingly doing one thing in common. They are employing sophisticated forex trading software in pursuit of their forex profits. The best of these software packages include a robot which can automatically execute your strategy.
Some strategies are based upon technical indicators. Others are based on macro economic events. Unfortunately, some traders enter the foray with no strategy attempting to conquer the market with supposition and guesswork. The results many of these traders experience are a foregone conclusion. Trading on your own versus software is often akin to a high school team playing the champion professional team.
progressive fx
Forex, short for Foreign Exchange, is the simultaneous exchange of one country's currency for that of another country. Speculators in the FX market wish to purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the investor, whether from market news or events that take place in the world. The Forex market has become the world's largest financial market, with over $1.9 trillion USD being traded on a daily basis. It is part of the bank-to-bank currency market known as the Interbank market. The 24-hour Interbank market literally follows the sun around the world, moving from major banking centers of the United States to Australia, New Zealand to the Far East, to Europe then back to the United States.
Personal finance
If you are constantly surfing the net for the right Forex strategy and do not know which training course to attend to get the best hands-down knowledge abut this business, you are reading the right article for finding the right answers. The first step to get started with Forex trading is to decide on the amount of investing money and then decide on the most cost-effective training program to help you get
interest rate differentials turn
For those of you that make a living (i.e. trade forex) from interest rate differentials, consider that the US Treasury yield curve is now steeper than at any point in recent memory. Short-term rates are still close to zero, while long-term rates just passed 4% and are still rising. The theoretical implication is that one can borrow at a low short-term rate and reinvest at a higher long-term yield. The question is: would you want to?
The meeting this week of the Federal Reserve Bank yielded few surprises, as the Fed voted to hold its benchmark Federal Funds Rate at the current level of nil, and indicated that they would stay “unusually low” for the near-term. According to one analyst, “It was totally as expected. The market doesn’t seem to have reacted that much. Everybody pretty much knew that for sure they wouldn’t raise rates anytime soon and they wouldn’t do anything to withdraw liquidity.”
At the same time, the Fed voted to maintain (though not to increase) its $1.75 Trillion asset price program, in order to prevent long-term rates from rising. This was probably directed at mortgage rates, which had begun to move higher in recent weeks, leading some analysts to fear that the nascent economic recovery would be stillborn. However, “Part of the rise in rates may be caused by fears that the Fed will allow inflation to get out of control down the road and that it will print money to finance government deficits. To the degree that those fears are out there, expansion of the Fed programs could be counterproductive, sending rates up rather than down.” In other words, the Fed is naive in its assumption that it can buy rates down, since its very act of buying is actually sending rates up!
This could be very bad for the US Dollar, which loses on both ends of the curve. Low short-term rates make it cheap to use the Dollar as a funding currency, while high long-term rates imply the expectation of inflation, and thus capital erosion. Current market conditions are unique, however: “The enthusiasm of the past three months has led many to believe that the Fed has actually provided more than adequate liquidity…It is critically important to remember that the dollar is the funding currency whose availability, or lack of … will drive all the markets in the world,” said one analyst.
This, the lack of liquidity in credit markets (the very problem that the Fed is trying to counter) is actually good for the Dollar, since it implies an under-supply. On the other hand, if the Fed is “successful” in its asset purchase program, then the supply of Dollars must necessarily increase relative to the demand, in which case the Dollar will fall. It’s not as cut-and-dried as it was prior to the credit crisis, but interest rate differentials (both short and long-term) still hold represent one of the crucial determinants of exchange rates.
The meeting this week of the Federal Reserve Bank yielded few surprises, as the Fed voted to hold its benchmark Federal Funds Rate at the current level of nil, and indicated that they would stay “unusually low” for the near-term. According to one analyst, “It was totally as expected. The market doesn’t seem to have reacted that much. Everybody pretty much knew that for sure they wouldn’t raise rates anytime soon and they wouldn’t do anything to withdraw liquidity.”
At the same time, the Fed voted to maintain (though not to increase) its $1.75 Trillion asset price program, in order to prevent long-term rates from rising. This was probably directed at mortgage rates, which had begun to move higher in recent weeks, leading some analysts to fear that the nascent economic recovery would be stillborn. However, “Part of the rise in rates may be caused by fears that the Fed will allow inflation to get out of control down the road and that it will print money to finance government deficits. To the degree that those fears are out there, expansion of the Fed programs could be counterproductive, sending rates up rather than down.” In other words, the Fed is naive in its assumption that it can buy rates down, since its very act of buying is actually sending rates up!
This could be very bad for the US Dollar, which loses on both ends of the curve. Low short-term rates make it cheap to use the Dollar as a funding currency, while high long-term rates imply the expectation of inflation, and thus capital erosion. Current market conditions are unique, however: “The enthusiasm of the past three months has led many to believe that the Fed has actually provided more than adequate liquidity…It is critically important to remember that the dollar is the funding currency whose availability, or lack of … will drive all the markets in the world,” said one analyst.
This, the lack of liquidity in credit markets (the very problem that the Fed is trying to counter) is actually good for the Dollar, since it implies an under-supply. On the other hand, if the Fed is “successful” in its asset purchase program, then the supply of Dollars must necessarily increase relative to the demand, in which case the Dollar will fall. It’s not as cut-and-dried as it was prior to the credit crisis, but interest rate differentials (both short and long-term) still hold represent one of the crucial determinants of exchange rates.
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If you require any more information or have any questions about our privacy policy, please feel free to contact us by email at bishnu.adhikari3[at]gmail (dot) com.
At www.aboutforexguide.blogspot.com, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by www.aboutforexguide.blogspot.com and how it is used.
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Like many other Web sites, www.aboutforexguide.blogspot.com makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.
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These third-party ad servers or ad networks use technology to the advertisements and links that appear on www.aboutforexguide.blogspot.com send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.
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You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. www.aboutforexguide.blogspot.com's privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.
If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites
If you require any more information or have any questions about our privacy policy, please feel free to contact us by email at bishnu.adhikari3[at]gmail (dot) com.
At www.aboutforexguide.blogspot.com, the privacy of our visitors is of extreme importance to us. This privacy policy document outlines the types of personal information is received and collected by www.aboutforexguide.blogspot.com and how it is used.
Log Files
Like many other Web sites, www.aboutforexguide.blogspot.com makes use of log files. The information inside the log files includes internet protocol ( IP ) addresses, type of browser, Internet Service Provider ( ISP ), date/time stamp, referring/exit pages, and number of clicks to analyze trends, administer the site, track user’s movement around the site, and gather demographic information. IP addresses, and other such information are not linked to any information that is personally identifiable.
Cookies and Web Beacons
www.aboutforexguide.blogspot.com does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser.
DoubleClick DART Cookie
.:: Google, as a third party vendor, uses cookies to serve ads on your site.
.:: Google's use of the DART cookie enables it to serve ads to your users based on their visit to your sites and other sites on the Internet.
.:: Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - google.com/privacy_ads.html
Some of our advertising partners may use cookies and web beacons on our site. Our advertising partners include .... Google Adsense
These third-party ad servers or ad networks use technology to the advertisements and links that appear on www.aboutforexguide.blogspot.com send directly to your browsers. They automatically receive your IP address when this occurs. Other technologies ( such as cookies, JavaScript, or Web Beacons ) may also be used by the third-party ad networks to measure the effectiveness of their advertisements and / or to personalize the advertising content that you see.
.aboutforexguide.blogspot.com has no access to or control over these cookies that are used by third-party advertisers.
You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. www.aboutforexguide.blogspot.com's privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.
If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browsers' respective websites
Learn about forex stragety
As tremendously we would like to predict the stock market movement correctly, this cannot be done with such precision. A lot of algorithms must be moved into account before formulating the desired fluctuations that will bring all the green luck in your fund portfolios.
Gradually, more and more experts have started to share their own unique strategies when it comes to investments and trading. An essential forex strategy will always come in handy for any prospective investor, so as not to lose a lot of their investments.
As a person who is just starting out in the stock industry, it is critical to know what right forex strategy to employ at every opportunity. Without the right techniques and knowledge, profits can be put in incredible risk and may let you lose a lot of hard-earned money. If you are worried about these possibilities, we have some of the most vital strategies that will help you make the most out of every investment.
The Simple Moving Average or SMA is one of the most basic strategies when it comes to foreign exchange. Every period indicated in the stock market holds fifteen minutes that can be used to your advantage.
With this forex strategy or plan in place, you can mark the signal should there be any major changes in the currency of your choice. Once the currency hits way below the twelve period, you will be signaled the opposite so as to get a clear view of a “Stop and Reverse”.
Candlestick pattern trading can also provide you with a lot of profitable opportunities in just a span of thirty minutes. This type of forex strategy is one of the most reliable mechanisms used in stock trading. The patterns will be able to recognize exactly what direction the currency is most likely to follow.
This action will prompt you to make the right allocations should your funds be at risk during fluctuation. The price levels are also estimated for specific currencies and will aid in determining the lowest points that will create the most formidable patterns for your investments.
With the right schemes in play, you can be assured that you will make the most of the money you have invested during trading. There an assortment of plans that can be applied for every Forex trading strategy, however it is always best to know which one is the right technique to use for every situation.
Gradually, more and more experts have started to share their own unique strategies when it comes to investments and trading. An essential forex strategy will always come in handy for any prospective investor, so as not to lose a lot of their investments.
As a person who is just starting out in the stock industry, it is critical to know what right forex strategy to employ at every opportunity. Without the right techniques and knowledge, profits can be put in incredible risk and may let you lose a lot of hard-earned money. If you are worried about these possibilities, we have some of the most vital strategies that will help you make the most out of every investment.
The Simple Moving Average or SMA is one of the most basic strategies when it comes to foreign exchange. Every period indicated in the stock market holds fifteen minutes that can be used to your advantage.
With this forex strategy or plan in place, you can mark the signal should there be any major changes in the currency of your choice. Once the currency hits way below the twelve period, you will be signaled the opposite so as to get a clear view of a “Stop and Reverse”.
Candlestick pattern trading can also provide you with a lot of profitable opportunities in just a span of thirty minutes. This type of forex strategy is one of the most reliable mechanisms used in stock trading. The patterns will be able to recognize exactly what direction the currency is most likely to follow.
This action will prompt you to make the right allocations should your funds be at risk during fluctuation. The price levels are also estimated for specific currencies and will aid in determining the lowest points that will create the most formidable patterns for your investments.
With the right schemes in play, you can be assured that you will make the most of the money you have invested during trading. There an assortment of plans that can be applied for every Forex trading strategy, however it is always best to know which one is the right technique to use for every situation.
How to win forex battle
Every trading activity is in fact participating in a battle. Winning the battle is a matter of knowledge, skill and experience. If you miss any of those you are going to join the long line of losers. Some says that 95 to 99 percent of the traders are lining up on the loser’s side.How to win the battle in the currency market? It is easy to answer that question, based on the above approach – prepare yourself for the battle. If you treat currency market activity as a hobby you’ll ultimately lose all investments there. If you treat it as a business you still may loose everything.The correct approach is: consider each pressing of the Buy/Sell button as entering a battlefield. If you enter it without having a knowledge, skill and experience on how to win, you are destined to fail. You may have some lucky trades in the beginning, though. That, by the way, is the worst case scenario for the rookie in trading.The earlier you get your “bad” lessons, the better for your overall experience. No mater how good you consider yourself prepared, after demo trading lessons, you have no idea of the forces ruling on the real market.In fact the worst enemy you are going to face in the very beginning is not hiding behind the walls of the global currency trading centers. Your most dangerous foe is hiding deep inside of you. That enemy is so powerful that you will be amazed how quickly it will wash away all your carefully considered decision.No one has been able to evade the force of that destructive power. No one can understand or realize that force unless it has been confronted face to face. Start trading with real money and you will face it too. Fear, Greed or Hope are some of the names of that power.Fear forces you to sell near the bottom and buy near the top. Greed forces you to get out of the market prematurely. Hope will keep in the trade until you loose everything. Fear may save you but hope may wreck you completely. Greed will never make you rich.It is easy to give advice to trade without emotions and use the logic, only. How you can achieve that if you never have been there. You need to go through that turmoil, pick up your loses due to your emotional decisions and than analyze.Study all your “bad” trades, because they are the most precious gifts on the way to proficiency in trading. Growing as an experienced trader is possible only after getting your losses in the beginning. Then sit down and carefully study the lessons they brought to you.One thing traders never want to do is to admit of being wrong. The market is a constantly changing and it demands flexibility in taking decision. That implies monitoring and constantly adjusting, changing your decision and action. When your logical analyzes suggest that you are wrong – get out, quickly.Once you overcome the emotions, concentrate on developing your signature way of trading. You can start with following different advisors and system and picking from them the things you like. Demo trade and test your ideas until you find the trade system which is matching completely your personality.Now, you have to go back to emotion in a controlled way. Every time your system suggests a trade look inside you and see how you feel about this trade.
foreign exchange market
The foreign exchange market (Currency, Forex, or FX) market is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. [1]FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.
Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.[3]
The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies.
Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.[3]
The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies.
Turkey Gold Market
Turkey has been an important regional gold market for many years; during the 1990s domestic jewellery fabrication averaged 125 tonnes (4.02 million oz). In addition, Turkey has been a key source of bullion for several neighbours countries. Turkish bullion imports, which normally exceed 100 tonnes (3.2 million oz) on an annual basis, came to 107 tonnes in 1999 but then rose significantly in 2000 to 205 tonnes (6.6 million oz). However, the following year bullion imports fell sharply. According to GFMS, this was partly due to the sharp devaluation of the Turkish currency and the associated economic and banking crises which affected the country. On a separate note, Turkey's position in the international market was enhanced by the full liberalisation of the local gold market in 1998 and the opening of the Istanbul Gold Exchange on 26 July 1995.
Japan Gold Market
Japan has evolved as a major market for gold for fabrication and investment since trading was liberalised in 1974. But the gold business in Japan has much earlier origins. Gold mines in Japan in the 17th century exported through the Dutch East India Company to East Asian countries. Tokuriki Honten, still an important refiner and fabricator, traces its history back to 1727. Tanaka Kikinzoku Kogyo, the leading precious metal refiner and trader, was established in 1885.
Actual mine production is limited. The only significant mine is Sumitomo Metal Mining's Hishikari on Kyushu island, opened in 1985, with output between seven and eight tonnes (0.25-0.26 million oz) annually. The Japanese market is supplied, therefore, both by imports of bullion and by-product gold from imported concentrates.
Total gold demand in Japan ranges between 200 and 275 tonnes (6.4 – 8.8 million oz), embracing jewellery fabrication, electronic and industrial uses, dental applications and physical bar investment . Japan is the world's foremost user in electronics, using over 100 tonnes (3.21 million oz) in 2000 according to GFMS (although this fell sharply, to around 70 tonnes or 2.25 million oz, in 2001 on the back of the slowdown in global demand). Japan's use of dental gold in 2001 was around 21 tonnes (675,000 oz) according to GFMS. Physical bar hoarding is also much higher than in other industrial countries, and is an anonymous way of holding wealth outside of the banking sector. GFMS estimate that it averaged just under 60 tonnes (1.9 million oz) over the past decade and exceeding 100 tonnes (13.2 million oz) in 1999. The first few months of 2002 saw a surge in Japanese hoarding demand due to fears about the health of the banking system.
It is also the custom in Japan for companies to give gifts of 24 carat ornaments such as teapots, saki cups, vases and chopsticks. The gold tea ceremony room at the Moa Art Museum in Shizuoka Province used 50 kilos (1,607 oz)
Actual mine production is limited. The only significant mine is Sumitomo Metal Mining's Hishikari on Kyushu island, opened in 1985, with output between seven and eight tonnes (0.25-0.26 million oz) annually. The Japanese market is supplied, therefore, both by imports of bullion and by-product gold from imported concentrates.
Total gold demand in Japan ranges between 200 and 275 tonnes (6.4 – 8.8 million oz), embracing jewellery fabrication, electronic and industrial uses, dental applications and physical bar investment . Japan is the world's foremost user in electronics, using over 100 tonnes (3.21 million oz) in 2000 according to GFMS (although this fell sharply, to around 70 tonnes or 2.25 million oz, in 2001 on the back of the slowdown in global demand). Japan's use of dental gold in 2001 was around 21 tonnes (675,000 oz) according to GFMS. Physical bar hoarding is also much higher than in other industrial countries, and is an anonymous way of holding wealth outside of the banking sector. GFMS estimate that it averaged just under 60 tonnes (1.9 million oz) over the past decade and exceeding 100 tonnes (13.2 million oz) in 1999. The first few months of 2002 saw a surge in Japanese hoarding demand due to fears about the health of the banking system.
It is also the custom in Japan for companies to give gifts of 24 carat ornaments such as teapots, saki cups, vases and chopsticks. The gold tea ceremony room at the Moa Art Museum in Shizuoka Province used 50 kilos (1,607 oz)
foreign exchange market
The foreign exchange market (Currency, Forex, or FX) market is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. [1]FX transactions typically involve one party purchasing a quantity of one currency in exchange for paying a quantity of another. The foreign exchange market that we see today started evolving during the 1970s when worldover countries gradually switched to floating exchange rate from their erstwhile exchange rate regime, which remained fixed as per the Bretton Woods system till 1971.
Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.[3]
The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies.
Today, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.[2] Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.[3]
The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies.
Automated trading platform
An automated trading platform is used both by trading system publishers, and the investors who subscribe to them. Using it, traders can track marked-to-market performance using several different metrics for verifiability.[1] In addition to tracking performance of these "black box" systems, the automated trading platform also provides a venue to permit the system's buy/sell signals to be executed to the subscriber'sbrokerage account automatically. Some of the automated trading platforms are completely broker-agnostic and permit an interface with almost any brokerage firm.
The immediate benefit to investors is that it allows them to have insight into various trading systems that are on offer, which may make claims of profitability. The platform "allows people or institutions that believe they can outperform the market to prove to the public in a verifiable way that they indeed can do so."[2] In the second stage of use, traders subscribe to one or more of these trading methodologies, and have the trades that are specified by the system executed automatically in a brokerage account.
Although turning over decisions and execution to a "black box" system requires the investor to give up an element of control, the automated trading platform does serve the purpose of allowing the trader to spend more time on strategy and on studying trends, rather than executing those strategies manually.
The immediate benefit to investors is that it allows them to have insight into various trading systems that are on offer, which may make claims of profitability. The platform "allows people or institutions that believe they can outperform the market to prove to the public in a verifiable way that they indeed can do so."[2] In the second stage of use, traders subscribe to one or more of these trading methodologies, and have the trades that are specified by the system executed automatically in a brokerage account.
Although turning over decisions and execution to a "black box" system requires the investor to give up an element of control, the automated trading platform does serve the purpose of allowing the trader to spend more time on strategy and on studying trends, rather than executing those strategies manually.
Saudi Forex reserves reach $250 Billions
By some measures, Saudi Arabia’s reserves are the fastest growing in the world. The country’s reserves recently crossed the $250 Billion threshold, and are now growing at a pace equivalent to nearly 40% per year. The source of the reserves should be a mystery to no one: oil. Oil prices have surged over the last five years, bestowing a windfall of profits to the entire Middle East region. Plus, as summer gets underway, oil prices are sure to climb further, which will ensure continued growth in Saudi forex reserves. Fortunately for the US, the majority of the world’s oil contracts are settled in USD, which means the boom in oil prices has actually stabilized the USD, despite its contribution to the US trade deficit. In addition, Saudi Arabia is one of the world’s most reliable investors in US capital markets, which means Dollar bulls can breathe a cautious sigh of relief that reserve “diversification” will probably be given.
Forex trading
The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.
However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.
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