The aim of forex trading

The aim of Forex trading is to make profit with increasing or decreasing currency prices. A trade is place when you expect the value of a specific currency to increase. In a currency pair, when the currency you buy increases, you must sell the other currency to make a profit. An open trade, or open position, this a trade in which you have already bought or sold a currency pair, but have not yet bought back an the same amount. The five most popular currency pairs in Forex at the moment are USD/Yen, Euro/Yen, Pound/USD, Swiss franc/USD, and the Euro/USD.

10 Things You Should Beware of During Currency Trading:

• Watch out of those who guarantee large profits.
• Stay away from those who promise no financial free
• Beware of those everything sounds very easy.
• Don’t trade on Margin unless you have been trained
• Please take cautious to online/phony transferring cash in online trading
• Make sure its really interbank market
• Job offer as Account Executive might lead you to use your money for currency trading
• Need to ensure the company background
• Avoid those company who won’t let you know their background
• Don’t fully trust any agency or broker, put some effort to understand currency trading by yourself.

Forex account activation and confirmation

Because we are dealing with real money accounts, you are required to verify your details and your email, through various needed steps. Before you sign the terms and conditions of the Forex trading account, make sure you understand what the site is offering. You should make sure you understand about the various conditions that include:- The Forex site's hours of operation and the availability of live support.- The bid/ask spread that the site offers for major currencies, in relation to what other sites offer.- Make sure that proper leverage is available through the margin per trade.- Find out about The minimum account size and lot size.- Check that there are no small print or hidden commissions that the site's operators prefer you don’t know about.- If you can, try out the Forex trading platform, as well as the charting and technical analysis options beforehand.- Check the general contract and make sure you save it along with the requoting policy on your computer

Working with statistics

Trade Balance

The trade balance is a measure of the difference between imports and exports of tangible goods and services. The level of the trade balance and changes in exports and imports are widely followed by foreign exchange markets.

The trade balance is a major indicator of foreign exchange trends. Seen in isolation, measures of imports and exports are important indicators of overall economic activity in the economy.

It is often of interest to examine the trend growth rates for exports and imports separately. Trends in export activities reflect the competitive position of the country in question, but also the strength of economic activity abroad. Trends in import activity reflect the strength of domestic economic activity.

Typically, a nation that runs a substantial trade balance deficit has a weak currency due to the continued commercial selling of the currency. This can, however, be offset by financial investment flows for extended periods of time.

Gross Domestic Product

The Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity available. Reported quarterly, GDP growth is widely followed as the primary indicator of the strength of economic activity.

GDP represents the total value of a country's production during the period and consists of the purchases of domestically produced goods and services by individuals, businesses, foreigners and the government.

As GDP reports are often subject to substantial quarter-to-quarter volatility and revisions, it is preferable to follow the indicator on a year-to-year basis. It can be valuable to follow the trend rate of growth in each of the major categories of GDP to determine the strengths and weaknesses in the economy.

A high GDP figure is often associated with the expectations of higher interest rates, which is frequently positive, at least in the short term, for the currency involved, unless expectations of increased inflation pressure is concurrently undermining confidence in the currency.

Consumer Price Index

The Consumer Price Index (CPI) is a measure of the average level of prices of a fixed basket of goods and services purchased by consumers. The monthly reported changes in CPI are widely followed as an inflation indicator.

The CPI is a primary inflation indicator because consumer spending accounts for nearly two-thirds of economic activity. Often, the CPI is followed but excludes the price of food and energy as these items are generally much more volatile than the rest of the CPI and can obscure the more important underlying trend.

Rising consumer price inflation is normally associated with the expectation of higher short term interest rates and may therefore be supportive for a currency in the short term. Nevertheless, a longer term inflation problem will eventually undermine confidence in the currency and weakness will follow.

Producer Price Index

The Producer Price Index (PPI) is a measure of the average level of prices of a fixed basket of goods received in primary markets by producers. The monthly PPI reports are widely followed as an indication of commodity inflation.

The PPI is considered important because it accounts for price changes throughout the manufacturing sector.

The PPI is often followed but excludes the food and energy components as these items are normally much more volatile than the rest of the PPI and can therefore obscure the more important underlying trend.

Studying the PPI allows consideration of inflationary pressures that may be accumulating or receding, but have not yet filtered through to the finished goods prices.

A rising PPI is normally expected to lead to higher consumer price inflation and thereby to potentially higher short-term interest rates. Higher rates will often have a short term positive impact on a currency, although significant inflationary pressure will often lead to an undermining of the confidence in the currency involved.

Payroll Employment

Payroll employment is a measure of the number of people being paid as employees by non-farm business establishments and units of government. Monthly changes in payroll employment reflect the net number of new jobs created or lost during the month and changes are widely followed as an important indicator of economic activity.

Payroll employment is one of the primary monthly indicators of aggregate economic activity because it encompasses every major sector of the economy. It is also useful to examine trends in job creation in several industry categories because the aggregate data can mask significant deviations in underlying industry trends.

Large increases in payroll employment are seen as signs of strong economic activity that could eventually lead to higher interest rates that are supportive of the currency at least in the short term. If, however, inflationary pressures are seen as building, this may undermine the longer term confidence in the currency.

Durable Goods Orders

Durable Goods Orders are a measure of the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. Monthly percent changes reflect the rate of change of such orders.

Levels of, and changes in, durable goods order are widely followed as an indicator of factory sector momentum.

Durable Goods Orders are a major indicator of manufacturing sector trends because most industrial production is done to order. Often, the indicator is followed but excludes Defence and Transportation orders because these are generally much more volatile than the rest of the orders and can obscure the more important underlying trend.

Durable Goods Orders are measured in nominal terms and therefore include the effects of inflation. Therefore the Durable Goods Orders should be compared to the trend growth rate in PPI to arrive at the real, inflation-adjusted Durable Goods Orders.

Rising Durable Goods Orders are normally associated with stronger economic activity and can therefore lead to higher short-term interest rates that are often supportive to a currency at least in the short term.

Retail Sales

Retail Sales are a measure of the total receipts of retail stores. Monthly percentage changes reflect the rate of change of such sales and are widely followed as an indicator of consumer spending.

Retails Sales are a major indicator of consumer spending because they account for nearly one-half of total consumer spending and approximately one-third of aggregate economic activity.

Often, Retail Sales are followed less auto sales because these are generally much more volatile than the rest of the Retail Sales and can therefore obscure the more important underlying trend.

Retail Sales are measured in nominal terms and therefore include the effects of inflation. Rising Retail Sales are often associated with a strong economy and therefore an expectation of higher short-term interest rates that are often supportive to a currency at least in the short term.

Housing Starts

Housing Starts are a measure of the number of residential units on which construction is begun each month and the level of housing starts is widely followed as an indicator of residential construction activity.

The indicator is followed to assess the commitment of builders to new construction activity. High construction activity is usually associated with increased economic activity and confidence, and is therefore considered a harbinger of higher short-term interest rates that can be supportive of the involved currency at least in the short term.

DOUBLING STOCKS

Just in case you did not already know, it is the first commercially available stock trading robot made by the same guy in this case michael who made a similar stock trading picking robot for Goldman-Sachs which is now responsible for the over $4 billion in profits which they make. So why should you try Doubling Stocks?1. it is so easy to use to make money, all you have to do is to wait for the newsletter to come and it usually comes on the sunday of each week it might come late if there are not able to come up with any trades2. you have a 56 day guarantee, so you are free to try it out for almost 2months and if you still do not like it you are free to return it

Pakistan news of March 18, 2009 - Karachi Stock Exchange maintains upward trend

2009-03-18 14:45:27 (GMT) (Caymanmama.com - Pakistan News News)

Pakistan news of March 18, 2009

• Crisis still not over despite restoration of judiciary
• Government courts to stop functioning in Swat
• Opposition activists detained last week must be freed - UN
• Bangladesh backs off from sending their cricket team to Pakistan
• Karachi Stock Exchange maintains its upward trend

Crisis still not over despite restoration of judiciary

Washington (Dawn News): With the present political crisis ending with a tilt of world politicians towards PML-N which left doubt in the mind of US officials over the ability of the government in tacking domestic issues as well as in controlling terrorists.

The US left a threat of cut off of aid if the present crisis in not resolved citing that their interest in the region would be hurt and the funds flowing to Pakistan as aid would not be effectively utilized. Chairman of the Senate in the US, Patrick J. Leahy, said that there is a strong desire in the congress to provide economic assistance to Pakistan but, ‘ if Pakistan is in such a state of internal political turmoil that US aid can’t be used effectively, that’s going to limit what can be done.’

Government courts to stop functioning in Swat

Mingora (Dawn News): Sharia courts have started to function in Swat since yesterday after Manulana Sufi Mohammad asked the Judges to not to come to courts citing that these courts were against Sharia. Maulana Sufi Mohammad’s son told the newsmen that the judges made a wise decision about not attending the courts while Maulana Sufi Mohammad said that in Sharia there in no room for English Law.

Opposition activists detained last week must be freed - UN

United Nations (Dawn News) : Ms. Navi Pillay, the chief of Human Rights in the UN welcomed the gestures of the Pakistani President of restoring judiciary terming it an important step towards political harmony but said that the political activists and leaders who had been arrested during last week must be release.

Bangladesh backs off from sending their cricket team to Pakistan

Wednesday (AFP): Players safety first, Bangladesh yesterday officially announced that they could not send their team to Pakistan on their scheduled tour where the teams of Pakistan and Bangladesh were supposed to play 5 one day international matches and two test matches.

‘We have had to suspend the tour for the time being because of security concerns,’ said Bangladesh sports minister Ahad Ali Sarke.

Karachi Stock Exchange maintains its upward trend

Karachi (Business Recorder): Karachi Stock Exchange staged another rally where investors and traders were seen busy buying stocks. The index at KSE marked a rise of 74.99 points and closed at 6,138.53 points.

Technical Analysis - Indicators

Technical Analysts believe that all the financial markets move by trends. They are of the opinion that Forex trading market is not that unpredictable as it seems to some. If the past movements and price trends of the market are thoroughly studied, then according to the technical analysts, current as well as future movements of the market prices can be easily estimated.

And for sighting these past trends and movements and representing them clearly and orderly, Technical indicators are used. These indicators are basically figures and data of past market records based on diverse statistical calculations. These indicators facilitate the traders using technical analysis, to predict if there are any continuations or turnarounds in the market trends.

There are many different types of technical indicators which are used in technical analysis, a few of which are given below:

Trend indicators

The continuances or reversals of a price movement in any particular direction over a period of time can be defined as a Trend or a Pattern. It is believed by the technical analysts that trends seem to move in three directions, either up, or down or sideways.

Trend indicators are used to even out inconsistent price records and stats to produce a combination of market trends. They also reflect the direction and the momentum of the current trend. The most common Trend indicator is Moving Averages.

Flux indicators

Flux or volatility indicators are used to reflect the degree, or magnitude, of everyday rate variations with or without describing its direction. These indicators are important as it is seen that variations in volatility can be liable to show traders a way to price changes. The most common Flux indicator is Bollinger Bands.

Support / resistance indicators

Support and resistance indicators are used to reflect orderly, the effect of the basic process of demand and supply on the price levels due to which the markets ascend or descend time and again. The most common Support / resistance indicator is Trend Lines

Oscillators/ Momentum indicators

Oscillators/ Momentum indicators are used to reflect systematically, the momentum at which rates or prices move about in a specified period of time. They help the analysts in establishing the advantage or disadvantage of a trend or pattern as it develops over a time period.
It is believed that strength of a trend or a pattern is maximum at the initiation of a trend and minimum at crossroads or transition phase of a trend. The most common Oscillators/ Momentum indicators are RSI, Stochastic and MACD.

Sequence indicators

Sequence indicators are those which are used to signify recurring trends in any market movements, related to repeated patterns or events such as specific time of the year, wars, elections etc.
Due to such events and happenings, many financial markets have a trend of moving in cyclic patterns. The most common Sequence indicator is Elliott Wave.

Strength indicators

These indicators are used to reflect market strength and the power of market opinions relating to an outlay by studying the market situations obtained by different market traders and investors.
Being the fundamental elements of this indicator, Volume or open interest generate signs that are immediate or driving the market. The most common Strength indicator is Volume.

These days, nearly all charting packages contain some of the above mentioned technical indicators. Traders while choosing a charting package can easily add their preferred technical indicators to their charts.

Handling Forex with Risk management strategies

The enormous size of the Forex market gives it the speed and liquidity like no other financial world market. Losses exist, but Profits are even higher! But just like any other speculative trade, amplified risks are involved along with the probability for a higher profit/loss.

Exit the market at profit targets
Limit orders let the Forex investors stop further trading and leave the market at preset profit objectives. Creating a disciplined trading methodology, Limit orders allow the traders to fix a limit of the profits which they want to make, and then exit the market. Also, they are free from the work of continuous monitoring the market sitting in front of their computers all day.

Limit your losses
Stop/loss commands also follow the same motive as that of the limit orders, by allowing the investors to set an exit point for a loss. By limiting your losses to a pre set position, Stop/loss orders help investors control their risk conditions. By placing them well in advance, you have an almost accurate idea of how much in loss will you be, in case the stop/loss order is hit!

Accurate placing of stop and limit orders
Where does the investor place his stop and limit orders respectively, determines the amount of risk he is taking up. It is advisable not to place your stop/loss orders too close to the normal market price, as a little fluctuation in the market, can then trigger the order. Likewise, limit orders should also reflect a rational hope of profits you are expecting, based on the market's trading activity. They should be set at the rate which is not overexposed to the trade, and also not too close to the market.
'Stop-loss' and 'limit' orders can lower an investor's exposure to risk by a large proportion.

Analyze while trading Forex
The things to know about Forex Comprehending all the intricacies of the basics behind an investment, and understanding behind the major market trading, is the right way to go about trading Forex. Skilled technical analysis and good money management skills are the basic essentials to trade well. Analyze the market and create a position, establishing rational stop loss and profit taking levels.

With MarketForex, an investor has the facility to change their trade orders as many times as they want, either as a stop loss order or as a limit order. Currency markets are highly unpredictable and tentative in nature, as any currency can fluctuate to becoming very expensive or very cheap in relation to other.

There is always a momentous risk in any Forex or currency deal, and thats the shortcomings of being a Forex Broker. At MarketForex, our expertise and tools link to the world’s Forex trading floors, getting you the lowest foreign currency rates with the prospects of making a transaction.

Stock Exchange Traders see new year blues

A Filipino priest officiates a mass inside the trading floor of the Philippine Stock Exchange

Traders around the globe tried different methods of seeing in 2008, but the New Year brought difficult conditions for most of the world's stock markets.

In Pakistan, the Karachi Stock Exchange continued to fall in its third open session since Benazir Bhutto's assassination. The index lost almost 3pc as it appeared that elections would be postponed.

Supplication from a Roman Catholic priest during the annual mass that follows the closing bell on the first trading day of the year couldn't prevent the Philippines Stock Exchange from closing down 0.1pc on the day at 3617, while an inflatable sculpture of a bull left traders in South Korea similarly unimpressed as the Kospi Index opened the year 2.3pc down at 1853.

In China, the Shanghai Composite Index was one of the few global markets to get the year off to a positive start as the index rose 0.2pc to 5273.

Investing Blunders made in Forex

Whenever you decide to step into the Forex market by investing into this trading business, you should prepare yourself for entering into the market, somewhat blind.

This because you or anyone else, who is just stepping in, can not entirely know what position of the investing trend is currently going on, in which you are entering at.
Or, you might invest in the Forex market just before the market trend changes.

Smart and planned investments are the ones which protect your trading flow and help you put up a stop loss order on all your trades. And yes, this exit point of your trade has to be decided beforehand, that is before you enter the trade.
Once in the market or trade, you won’t have much time to think and last minute uncertainty can give room to blunders.

A stop loss order can plainly be defined as a trade exit point decided beforehand, which helps a trader in keeping a track of the right point at which to exit the position he is trading at.

A predefined exit point shields your investing plan for trading purposes by cutting your losses, and also guards against all your emotional or gut feelings which might tell you that you may get lucky with this deal or that.
Hence making you go ahead and bet in a deal without thinking much about your position and whether you will be able to bear its results if the market moves against you.

Another important fact about the history of investment blunders is that all the giant investing losses had once begun as a series of small losses. And this is exactly the reason why predefining a stop-loss order is so vital before you begin with a trade.

There is however a very common doubt which seems to be appearing in every trader’s mind while deciding the stop-loss order, “How wide should I set my stop?”
And although there are no standard answers to this doubt, it can still be cleared with some help.

Firstly, the width of your stop-loss order totally depends on the time frame for which you are planning to invest.

If investing short-term, you will have to set a stop loss order which is closely set to the currency price. But if you are investing long-term, you will have to give your currency price some more room to shift or move about and therefore, set your stop-loss order a little lesser.

Secondly, once it is clear to you what time structure you will be trading for, you are now required to eradicate the typical market disturbance in terms of instability, in that specific time structure.

Setting very tight or limited stop-loss orders can have some serious drawbacks to it, some of which are as follows:

• Firstly, setting tight stop-loss orders will actually minimize the consistency of your trading system because due to a tight order, you will get stopped out of the trade a little too often.

• Secondly, since your trading transaction costs add up for a key share of your company expenses, you considerably amplify your transaction costs

Therefore, it is always advisable for the Forex traders to develop a trading system that is operational for a somewhat extended time structure.

With a smart and planned trading system employed, stop-loss limit set to minimize investing risk, and a well structured money management strategy in place, any trader can be well positioned to get the most out of their market trading and profits.

Forex Investors Trade Currency Pairs

Everything is relative in the forex market. The euro, by itself, is neither strong nor weak. The same holds true for the U.S. dollar. By itself, it is neither strong nor weak. Only when you compare two currencies together can you determine how strong or weak each currency is in relation to the other currency.

Currencies always trade in pairs. You never simply buy the euro or sell the U.S. dollar. You trade them as a pair. Some of the most well-known currency pairs are:

EUR/USD	(Euro / U.S. dollar)
GBP/USD	(British pound / U.S. dollar)
USD/JPY	(U.S. dollar / Japanese yen)

Investors, just like you, make money every day by trading currency pairs. By determining what is going to happen to a currency pair in the future, investors can act today to take advantage of coming price movements.

Currency pairs can do one of the following three things:

• They can go up
• They can go down
• They can go sideways

If you can determine which way a currency pair is going to move, you can become quite profitable.

Canada Stock Exchange -17-03-09

Current News

News from TMX Group, Toronto Stock Exchange, TSX Venture Exchange and NGX

The TMX Group of companies are frequently profiled in the news on a daily basis. We are also active contributors to the news-making process by regularly distributing news releases to more than 500 journalists at Canada's print and electronic media, national and international wire services, Participating Organizations and securities commissions. This section contains the latest news releases from TMX Group, Toronto Stock Exchangeand TSX Venture Exchange. If you are looking for news and information on NGX, click here to be taken to the NGX web site.

Click here to view the holidays on which our markets are closed.

Consumer Price Index (CPI)

This Forex trading economic indicator is published by the Bureau of labor statistics in the U.S. Department of Labor, every 13th of a month. The economic index is relevant for the passing month, and measures the price of a fixed basket of goods and services that is bought by consumers. This is the most used measure of inflation, an important tool for the Forex trading market.It is important to state that this Forex economic indicator does not measure technological commodities which change in price, and this is something the CPI has been criticized for.When you use the CPI to measure Forex trading price changes, you should always remember to take into consideration the movements in the food and energy prices, because they can change and rise or drop regardless of the Forex currency or the inflation levels

What moves the currency rates?

A lot of reasons can have their hands behind the fluctuating market and currency rates, and not one or two can be blamed for any sort of rise or fall in them. Although it would not be entirely wrong to say that the Forex market business is more or less based on these fluctuations only. Traders trade in this market, purchase and sell various currencies with the expectation of making gains if the value of the exchange moves in their favor. Now this sudden movement in the market can be caused by either market news or current events all over the world, which have an effect on the demand and supply of these currencies.

This law of demand and supply is what works well in this Forex market too. When the demand of a particular currency goes up, its market price also escalates as compared to the other currencies in the market.
Similarly, if the demand of a particular currency goes down, traders are no longer interested in holding it back with them, and so the market price of the currency also decreases.

Economic development

It is quiet obvious that the traders trading in currencies and interested in exchange markets, will be equally keen and interested in knowing about the overall economic development of the countries whose currencies they hold, or are interested in buying. Every trader wants to be convinced that they economy they are about to invest in is developing with a solid and steady growth, which can be known by studying various factors such as unemployment, import and export, and the GDP statistics of a particular country.

Rise in Unemployment experienced by any particular country is considered as a negative factor, whereas a fall in Unemployment is always measured as a positive aspect.

Similarly, an increase in the GDP figures of a particular country is considered as a positive feature, whereas a decrease in GDP figures is always measured as a negative aspect.

Also, a mount in the Exports numbers of a particular country are always considered as a positive trait as compared to the decrease in Exports numbers which is looked upon as a negative aspect.

Political strength

Lots of factors are responsible for determining the political stability of a particular country. These factors can be any kinds of alterations in government or by the government, rising unemployment rates, elections or international and political conflicts.

Every investor is cautious enough and considers all these factors in his mind before going in for investing in a particular economy.

Any kind of Political conflicts, natural calamity or terrorism attacks or wars are major contributors in making or marring the economy of a country.

Interest Rates

Around the world, interest rates are always followed by money. If the interest rates of a particular country rise up, investors big and small from all over the world would want to invest their money with it in order to gain higher returns on their investments.

Mostly it can be said that if you want to capitalize on higher investments, then you have to keep an eye on the rise and fall of the interest rates in a particular country. And the factors which will help you determine this rise and fall are mostly the financial rise indicators in addition to the speeches of the current leading, dominating and significant figures like big politicians, iron and steel magnets and businessmen.
The interest rate movements generally take place during the programmed meetings by the central banks like BOE, FED, ECB, and BOJ.

An increase in the Interest Rates is always considered as a positive factor for a particular country as compared to the decreased in Interest Rates.

Hong Kong Stock Exchange (HKSE)

About the Hong Kong Stock Exchange :

Although the trade of securities began in the middle of the 19th c., Hong Kong Stock Exchange was established at the end of the century. Today with its total securities market capitalization of a record sum of HK$ 8,260.3 billion (US$ 1,063.9 trillion), the HKSE ranks 8th place by market capitalization in the world.

The HKSE has 4338 stocks listed on the exchange with the market turnover of HK$4,520.4 billion (US$ 0,582.2 trillion) in 2005. The turnover increased by 14% from the previous year. Local institutional and retail investors are the main contributors of market turnover (56%). The exchange also has a leading derivatives market in the Asia-Pacific region with the daily turnover of 103.332 contracts per day that has increased by even 30% from 2004.

In 2000, the Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited together with Hong Kong Securities Clearing Company Limited merged under a single exchange HKEx. HKEx listed its shares on the stock exchange in June 2000.

The trading system of the Exchange is an order-driven system. HKEx securities market operates on two trading platforms - the Main Board and the Growth Enterprise Market (GEM). Each trading platform has a different set of requirements. The Main Board is the market for capital growth by established companies that meet profit requirements. Meanwhile, the Growth Enterprise Market provides a fund raising venue for 'high growth, high risk' companies. It promotes the development of technology industries and venture capital investments.

In October 2000, HKEx developed a trading system AMS/3 consisting of four components - Trading Terminal, Multi-Workstation System ('MWS'), Broker Supplied System ('BSS'), and Order Routing System ('ORS') that investors can choose among. The ORS allows investors to place requests electronically. In addition to trading through terminals in the Trading Hall, exchange participants are enabled to trade from their offices through installed off-floor terminals.

The HKSE has the leading index the Hang Seng for shares traded on the Hong Kong Stock Exchange that was introduced in 1969. The Hang Seng index consisting of the 33 largest companies traded on the exchange represent around 70% of the value of all stocks traded on the HKSE.

What are the Secrets in Forex Trading?

More than 100 million people in the world are looking for profitable investment. We love talking investment because this is the energyless but high profit gain business. Forex Trading is the world's largest financial market with an estimated daily average turnover between $1.5 trillion to $2.5 trillion that we cannot doubt. If we want to make profit from this investment, there are some related knowledges that we definitely need to know.

• Use Future data to justify market trend.
• Pivot Program shows entry & exit signals.
• Familiar Chart Patterns and Trend lines.
• how big dogs are doing?
• euro vs USD Tricks.
• Be Smart to Filter Various Currency pairs.
• Confident to Control Up and Down Trendy.
• Avoid Pitfalls of Dumb money.
• Intelligent stop loss strategies implementation.
• AIME methodology
• History is your tips.
• Hedge currency Trades .

What Drives Currency Prices

The key to making money in the forex is understanding what makes currency pairs move. Ultimately, it is investors who make currency pairs move as they buy and sell different currencies, but these investors buy and sell for a reason. Either they see something happening fundamentally in the global economy that makes them believe a currency is going to get stronger or they see something happening fundamentally that makes them believe a currency is going to get weaker. In other words, they watch the fundamentals and make their decisions according to what they see.

Fundamentals make currency pairs move. If the economic fundamentals in the United States are improving, the U.S. dollar (USD) will most likely be getting stronger because forex investors will be buying dollars. Conversely, if the economic fundamentals in the United States are declining, the U.S. dollar (USD) will most likely be getting weaker because forex investors will be selling dollars.

Euro Trading Tips

Learn to identify trends and trading opportunities with the euro. See and discuss important chart patterns and current events with a euro trader.Learn the best time to trade the euro. Learn how to anticipate movements and confirm trends in the euro. Discuss what’s happening in the euro today with a Power Course instructor.DailyFX+ Live11:00 am EST (16:00 GMT) and 7:00 pm EST (00:00 GMT)Experience the power of DailyFX+ in a live video walkthrough!Discuss current market movements. Discuss the day's price action. Identify signals for immediate trading. How to use DailyFX+ to find trades

Free Daily Forecast Forex

The Forex system is a relatively easy one to understand at its basic level but it can also be as intricate as you can possibly imagine. What the system actually is, is a way of trading currency from various parts of the world. These currencies are always traded in pairs and you need to purchase one currency with another in the hopes of making a profit whenever the difference between the two moves in your favor. A good example of this is that people will buy euros with dollars or perhaps the yen with the American dollar as well.People who have done Forex successfully in the past, often caution individuals from jumping on board too quickly because the entire system can be a little bit unpredictable. Currency prices tend to change on a whim according to news stories or perhaps world events that happen which can affect the part of the world in which the currency is operative. This can either work in your favor or against you so it is definitely something that is not for those who are unwilling to take a risk. That being said, there are also some indicators that will give you a good idea of how well something will do, barring any unforeseen circumstances

Mini Forex Account

Rapid and fair trade execution. Market orders are confirmed within seconds at prices clicked on or accepted by the client. Furthermore, GCI has a "zero slippage guarantee" for all Forex Stop and Entry Stop orders that are placed at least one minute before the market reaches your specified price.Zero commissions for all accounts. Client trading performance is enhanced by eliminating all commissions.State-of-the-art trading software. The GCI trading software provides real-time prices in 23 major currencies, 5 equity indices, plus gold, silver, and crude oil. Live charts, and real-time P&L and account equity tracking are fully integrated into the free software. Windows-based and Java-based versions are available

Tips for New Forex Traders

Forex has always been a magnet for investors and traders, who are looking for an exciting business venture to invest in, giving them the thrill, adventure and excitement, along with an idea of a quick and easy way to make profits.

But, for those who are relatively new to the Forex trading world, it is extremely important to know exactly what you are getting into. When it comes to the matter of investing a huge amount of your hard earned money into something, first time investors should always make sure what they ought to expect out of it. What should and should not be done. What steps should be taken to play safe and what to do that keeps them at away from the frauds and scams.

First of all what needs to be learnt is, what is Forex and how does it work? What need’s to be known next are a few important trading tips, which will facilitate you during your transactions.

Foreign Exchange or Forex or FX is one of the biggest money market in the world, and is a platform where currency is sold and bought freely between buyers and sellers. Forex, unlike any other financial markets, has no physical location or central exchange.

With over $1.5 trillion USD being traded daily, the foreign exchange market has now become a market which is open to trading by an average investor as much as it is open to a high investor.

Launched over three decades back, in the early seventies, Market Forex introduced free exchange rates worldwide, according to which, the price of the currencies was determined on the basis of demand and supply only.

A number of reasons are responsible for making Forex a distinctive financial market. To begin with, no external regulatory authority is allowed to set or fix currency prices or rates in this market, making Forex is market which cannot be controlled in any way. Also, it is one of those few money markets that necessitate very little trading education, training and experience.

In order to know the Forex market well, the new traders should know how to start trading Forex. The few important things to be kept in mind when beginning to trade Forex are as follows:

What needs to be done firstly is, to open a Forex account. This can be done by filling up an application form, providing the required essential credentials, like personal details, financial particulars, and other details such as whether or not, a broker will be allowed to mediate with any trade if it appears to get too precarious and dicey.

Once your account has been created and recognized, you can begin to flow cash in to it and start trading Forex.

New Forex traders are always advised to create two accounts while trading, one of them being a real account, while the other being a demo one. A real account will facilitate the trader to actually trade in the market, with real money.

The demo account helps the new investor learn more about the trading business. This way the new trader can practice his moves of trading in the market, without the fear of losing all his money in case he/ she goofs up or ends up making the wrong deal.

Also, before you start trading in the market, you should have a closer look at all the top five foreign currencies and their current rates to make sure, you are aware of the current rates and are not missing anything.
The top five Forex currencies are: Pound/USD, Swiss franc/USD, Euro/Yen, USD/Yen and Euro/USD.

Always keep a check on the market. With the time intervals on hourly, daily and weekly schedules with all the currencies that are in any way related to your trade.

Being a successful trader requires to come up with individual and unique trading strategies. There is no “Golden Mantra” or “Trade Secret”, which will work for the traders.

Every investor needs to come up with their own, personal and distinctive trading approach when it comes to the market. There are different ways by which, the traders approach the market. Sometimes they may bank solely on industrial and technical analysis.

Some may like better to go in for a more elementary and basic approach for trading, while others may make use of the past records of the market, combined with both technical as well as fundamental techniques for trading.
All these strategies help the traders in studying the patterns of currency price trends and movements, making it easier for them to foresee the course of the potential developments in the Forex market.

Currency prices in Forex market mostly move in trends. They have a pattern, through which, certain movements can be studied. Some of these movements which have been studied over several years mostly help in discovering that pattern in the market trend. These trends are what should be recognized and valued properly, to facilitate the creation of an excellent trading strategy.

Any factors, financial or political, having some control over the value or the price of a currency, have already been measured by the market to be included as an important factor in creating a price trend.

When trading for the first time, it is always advisable to invest by the trends. Trading with a trend can facilitate you by advancing your chances with profit. Many new investors are enthusiastic to start trading as soon as they can, eventually ending up trading in any direction.
Trading by a trend or following a pattern and studying the market can increase your odds of being favored by the market, making your trading prospects high.

FOREX-KILLER

Forex-killer software package is very intuitive and easy to use and understand. Forex Killer provides you the exact information you need to buy sell or hold like no other software or trading system currently available.The package and the learning videos really set the standards.Anyone into trading will find this package a great tool and have a lot of success with it. Highly Recommended

How to earn in Forex

How to earn in Forex

Forex, where the commodity to be traded is currency, and not stocks and shares, is a trading market which gives its investors, returns in the form of the relative value of one currency exchanged against another. Forex trading is therefore, always dealt in currency pairs with the major currency pairs being Euro/US Dollar (EUR/USD) and US Dollar/Japanese Yen (USD/JPY), to name a few.

And it is with concurrent buying and selling of currencies that the trader hopes to make a profit on favorable exchange rate fluctuations. Exchange rates are always fluctuating, going down as well as up, within seconds and the whole art of trading lies in perfectly foreseeing the trend of the variation between two currencies.

But, how do you make money in such a competitive and incessant Trade market?

Well, here is an example to illustrate how…
Supposing the current bid/ask price for EUR/USD is going by the rate of 1.5027/30, giving you the option to buy 1 euro with 1.5030 US dollars or sell 1 euro for 1.5027 US dollars. Now, if you feel that the Euro is underrated against the US dollar, you would opt on buying Euros, selling your dollars at the same time. So you buy 100,000 euros by paying 150,300 dollars. You can then start analyzing the market, waiting for the exchange rates to rise. One can also opt in for Spot Forex Trading due to its benefits

As predicted, the rates begin to rise and then you decide a favorable rate at which you plan to sell your Euros to get a hefty profit. Supposing the Euro rises to 1.5090/93. Now, to realize your profits, you sell 100,000 euros at the current rate of 1.5090, and receive $150,900. You bought 100k Euros at 1.5030, paying $150,300. You sold 100k Euros at 1.5090, receiving $150900. That's a difference of $600 or in other words, you successfully earned a profit of $600.

Change and fluctuation, in any trading market is quiet frequent and rapid, especially in the Forex market, where these recurrent changes are also influenced by various other world events and factors like oil prices, interest rates and economic conditions. But with all these rapid fluctuations going on, the main aim of any Forex investor still remains on making profit. Every trader is predicting and waiting for the value of the currencies to change in his favor. You can also learn more about the

Difference between the forex market and the stock market

When trading is done in the forex market, it requires at least two or more than two countries and it can take place anywhere in the world. In this market, one country is the investor and the other country is where the money is invested. In the majority of the cases, the transactions are done through the broker, such as a bank.Importance of the forex marketThe forex market involves a variety of transactions and countries. The countries that are involved in the forex market do trading in large volumes and invest a huge amount of money. It takes money to make

Types of Forex Traders

Foreign Investments Companies

Foreign investment companies are basically the investment organizations which are carrying out foreign currency trading operations in the market. These companies show great requirements for a particular foreign currency. For example, if we talk about foreign investment companies like importers of certain products, that these firms would like to buy in bulk, a particular foreign currency for trading and business purposes.

Same is the case with other investment firms like exporters of certain products, who would like to sell a particular type of currency more. These firms do not have a direct admission to Forex market. They operate their conversion and depository processes via commercial banks only.

Commercial Firms

Commercial Firms make for a sizable part of the Forex trading market and a significant part of the market gets its way from the economic activities of such firms which are looking for foreign currency to pay for all the goods and services they employ.

As compared to the big financial companies and huge banks, these commercial firms often trade a rather small amount of money, and their trading mostly has a slight temporary effect on the overall market rates.
Trade flows, in terms of internationally big companies, becomes a central issue in the lasting direction of a currency's Forex rate. Some of these global giants are also capable of having an impulsive impact on the market rates, especially when very large positions are filled, of which, not many retail or individual traders are aware.

Commercial banks

In the world of Foreign exchange market, the maximum control is in the hands of huge multinational banks and organizations. This is because of the fact that their everyday degree of actions of trading and market cross over billions of dollars.

With such a huge figure in their hands, it would not be wrong to say that these commercial banks use up an indispensable amount of exchange transactions. The banks can be said to gather through all their clients, the growing and collective wants of the market for currency exchange. Also, in addition to agreement of clients’ purposes, the banks can sometimes trade for their own operations for their own means too.

Some of the well known international banks which are successfully involved with Foreign Exchange are Chase Manhattan Bank, Deutsche Bank, Citibank, Standard Chartered Bank and Barclays Bank to name a few. Their huge quantities of transactions can lead to noteworthy alterations in the currency rates. Mostly these big commercial banks are divided into Bulls and Bears.

Bulls

Bulls are those Forex market members who are concerned with the escalating of currency rates.

Bears

Bears are those Forex market members who are concerned with the depression of the currency rates.

By and large, the market is in a position where balance can be maintained between bulls and bears.

Asset Management Companies

Asset Management companies are the ones which basically handle big money accounts on behalf of their clients, like pension funds etc. Such companies employ Foreign currency market to assist dealings in foreign investments.
While such companies are into Forex market and trading currencies, they take these transactions as secondary to their real investment business, and hence, are not intended for revenue-maximization.

According to the BIS study of Triennial Central Bank Survey, year 2004, 14% were between a dealer and a non-financial company, 33% concerned a dealer (ie a bank) and a finance manager and a major 53% of transactions were totally interbank.

Intermarket Analysis of Forex Markets

Most traders stress the role of fundamental information and historical single-market price data in analyzing markets for the purpose of price and trend forecasting. Traders do need to look back at past price action to put current price action in perspective, but they also need to look forward to anticipate what will happen to prices if their analysis is to pay off in the real trading world.

To be able to look ahead with confidence, however, traders need to look in one other direction, and that is sideways to what is happening in related markets, which has a major influence on price action in a target market. What are the external market forces that affect the internal market dynamics – the intermarket context or environment in which the market you are trading exists?

Moving beyond single-market analysis

How to Trade Forex

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.

Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements.

Benefits of Forex Membership Sites

This article discusses what you can gain from joining one of the many online forex membership sites.

There are quite a few forex membership websites on the internet nowadays. There are sites that offer a one-off lifetime membership for a specific system or service, and there are monthly membership sites where you have to pay to remain a member. So what do these membership sites actually offer?

Well let’s start off my discussing one of the most common forex membership sites and that’s forex signal providers. If you do a search for ‘forex signals’ on the internet you will find hundreds, if not thousands of these sites. It has to be said that most of these sites are generally quite poor and do not offer the kind of profits that they claim to, but there are a small number of companies that do provide reliable, and more importantly profitable forex trading signals.

These sites appeal more to traders who haven’t been able to come up with their own profitable trading system, or those people who simply don’t have the time to watch and trade the markets all day themselves.

Similarly there are other membership-type sites that appeal to this type of trader and that’s automated trading robots. Although most can be purchased for a one-off fee, some of the more expensive and profitable robots require continuous monthly payments in order to pay for the license to continue using the robot or software.

Other forex membership sites are geared more towards those people who actually want to learn how to trade themselves. These websites tend to offer plenty of learning material and trading resources to help you become a profitable forex trader. Examples of some of the services offered includes videos, seminars, ebooks, trading systems, daily updates and one-on-one coaching.

These forex membership sites can become quite costly if you remain a member for several months. However they can also be invaluable because you will often get the chance to chat with, and learn from, the trading professionals and mentors behind the membership site as well as your fellow members via chatrooms and forums.

So overall forex membership sites can be extremely beneficial whether you simply want forex trading signals delivered to you, or want monthly use of an automated trading system, or if you simply want to learn how to become a profitable forex trader yourself. All of these sites are designed to help you make profits from forex trading so if they are successful at achieving this objective then they will more than pay for themselves.

For reviews of individual forex membership sites please click here to read James Woolley’s Forex Brotherhood review and Traders Club review.

Forex Broker Regulations

What good is Forex broker that you can trade and make money with, but when it comes time to take your money, they don't give it to you, because they don’t have it? Forex Broker Bust Story. Refco was the biggest Forex broker that was worth around $4 billion dollars. In October of 2005, Refco shut down its operations and every trader who had money with them got screwed big time. Refco was regulated and for some time they were spending not only their profits but also deposits of their clients. The amounts of money that traders saw on their trading platforms and the amounts of money Refco had in their bank accounts were different by $400 million. So when the news hit the wire that Refco is running at such deficit, traders panicked and started asking for withdrawals. The only problem was that Refco was $400 million short of what it owed to traders. There was a trial of course, and whatever assets the company had the court ordered to distribute among traders. I knew some people that had money with Refco. As far as I remember, after all assets were sold they got around 10% of what was owed to them. That means if person had $10,000 in his trading account, he got only $1,000 of it.

FOREX CURRENCY

The forex market has been rapidly growing since the internet has grown into just about every home. Every person from around the world would love to make a second income, so this is the best place to start. You get to work in your spare time and make a good income. That’s not to say that it is easy. It takes time to learn and time to grow as a trader. One of the best teachers is experience. You’ll learn a lot when you start trading, just remember to stick to my advice and you’ll do fine.

You’re going to have a demo account available to you. As the currency trader, you’re going to want to try this out until you feel comfortable trading. It’s just a very good real simulation, except you don’t have to risk any money. I encourage people to use this until they feel good with their trading. There is no rush to put money in the market because you can lose it pretty fast if you’re not ready.

I think another important factor is cutting your losses. You’re going to have bad trades, just like everyone else. You need to learn to limit their damage. That’s why I set a stop loss point before I make the trade. Basically, you decide if the trade goes down to “x” value, you’ll sell it. It’s a simple and objective way of protecting your bottom line.

Brief history of Forex trading

Initially, the value of goods was expressed in terms of other goods, i.e. an economy based on barter between individual market participants. The obvious limitations of such a system encouraged establishing more generally accepted means of exchange at a fairly early stage in history, to set a common benchmark of value. In different economies, everything from teeth to feathers to pretty stones has served this purpose, but soon metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value.

Originally, coins were simply minted from the preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Middle Ages. Such IOUs, often introduced more successfully through force than persuasion were the basis of modern currencies.

Before World War I, most central banks supported their currencies with convertibility to gold. Although paper money could always be exchanged for gold, in reality this did not occur often, fostering the sometimes disastrous notion that there was not necessarily a need for full cover in the central reserves of the government.

At times, the ballooning supply of paper money without gold cover led to devastating inflation and resulting political instability. To protect local national interests, foreign exchange controls were increasingly introduced to prevent market forces from punishing monetary irresponsibility.

In the latter stages of World War II, the Bretton Woods agreement was reached on the initiative of the USA in July 1944. The Bretton Woods Conference rejected John Maynard Keynes suggestion for a new world reserve currency in favour of a system built on the US dollar. Other international institutions such as the IMF, the World Bank and GATT (General Agreement on Tariffs and Trade) were created in the same period as the emerging victors of WW2 searched for a way to avoid the destabilising monetary crises which led to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that partly reinstated the gold standard, fixing the US dollar at USD35/oz and fixing the other main currencies to the dollar - and was intended to be permanent.

The Bretton Woods system came under increasing pressure as national economies moved in different directions during the sixties. A number of realignments kept the system alive for a long time, but eventually Bretton Woods collapsed in the early seventies following president Nixon's suspension of the gold convertibility in August 1971. The dollar was no longer suitable as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.

The following decades have seen foreign exchange trading develop into the largest global market by far. Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.

But the idea of fixed exchange rates has by no means died. The EEC (European Economic Community) introduced a new system of fixed exchange rates in 1979, the European Monetary System. This attempt to fix exchange rates met with near extinction in 1992-93, when pent-up economic pressures forced devaluations of a number of weak European currencies. Nevertheless, the quest for currency stability has continued in Europe with the renewed attempt to not only fix currencies but actually replace many of them with the Euro in 2001.

The lack of sustainability in fixed foreign exchange rates gained new relevance with the events in South East Asia in the latter part of 1997, where currency after currency was devalued against the US dollar, leaving other fixed exchange rates, in particular in South America, looking very vulnerable.

But while commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have found a new playground. The size of foreign exchange markets now dwarfs any other investment market by a large factor. It is estimated that more than USD 3,000 billion is traded every day, far more than the world's stock and bond markets combined.

FOREX TOOLBOX

SigmaForex Provide Traders With Premium Forex Trading Tools that are useful for Advanced, Professional And Beginner Traders. Technical and Fundamental Analysts are working in developing these tools to meet our clients with highest levels of satisfaction.

There are a number of different tools in the forex trader's toolbox and one of the most important is the forex chart. In its simplest form, a forex chart is a graph of the performance of a currency pair over a set time period. Reading a forex chart is central to any trader's business and so it is important to be able to read them and to understand just what they mean.

A forex chart is plotted for a single currency pair such as the EUR/USD or AUD/CAD and shows the movement of the currencies concerned against each other over time. For instance, a EUR/USD chart shows you how the US dollar and Euro have moved against each other over the period for which the chart has been drawn.

Along the bottom of the chart is the timeline that can for example be divided into 15 minute, one hour, one day, one week, or longer time periods. Going up the right-hand side of the chart are incremental values that are usually set to run from a bit below to a bit above the bottom and top prices attained during the period in question. For example, for a EUR/USD chart the values may run from 1.2534 at the bottom to 1.2564 at the top.

A forex chart is useful because it gives a very clear and easy to read picture of how a currency pair is doing and you can see at a glance whether a currency is strengthening or weakening so that you can act accordingly. The selection of a time frame for a chart is also important as a short time scale can help you to see very minor trends while a long time scale can help you to identify longer term trends.

Forex Charting in the Stock Market

Forex stock is the top Foreign-American trading system. People that trade in these stocks will often use charts. Most traders invest in companies and will often use Forex strategies to choose when the right time to sell is or trade stocks, as well as when to buy stocks.Forex charting however changes its patterns in the stock market exchange.Stock markets often have highs/low cycles, which at what time the markets is at the lowest, the stocks send indicators, which help traders, to know the best, time to buy or sell stocks, nor is it the best time to trade.The stock market is different in a few ways from the Forex market. The patterns change, since when the market is low in Forex exchange, traders still have a potential of winning during the buy/sell, or trading phrase.The Internet makes available FREE Charts in Forex, which you can download. Use these charts as a guide before you invest in stock markets.Download the charts. Monitor the charts closely to learn how Forex markets work. The Forex charts often pay close attention to foreign markets in addition to the American markets.You will notice in the charts change in the market, which include the sell/buy, trade, asks/bids, etc. You will also see when investors are trading amidst companies and foreign countries.Forex charts have menus. The menus enable traders to shift between multiple companies. Forex charts also provide you tips, which you can use to understand the high/lows in stock marketing, as well as the right time to sell, buy or trade.Use the Internet to find help in relating to stock market or Forex charts. Look for the current currencies online. Forex charts will focus on these currencies, which include “EUR/USD, EUR/JPY, USD/CAC, GBP/USD,” etc. Forex charts will guide you through the stock rates. You will learn about bids/ask, highs/lows, pips, spreads, and other stock details.

SAXO CAPITAL MARKETS

Located in Singapore, Saxo Capital Markets is a subsidiary of Saxo Bank, Denmark. Saxo Capital Markets specialises in local trading and in providing a focused and personal service for Asian clients. We offer our products and services to both private and institutional clients around the globe.
Trade the global Forex, Stock, Futures markets through Saxo Capital Markets — world leading multi-product trading