FXstreet.com (Barcelona) - EUR/USD attempt to recovery was not strong enough, and the Euro has turned downwards after testing 1.3035 resistance level. After yesterday's 150 pip decline, the Euro continues consolidating in the area between 12985 and 1.3035.
Support levels stand at 12985, and below here next support levels could lie 1.2950/45 and 1.2920. On the upside, next resistance level lies at the 1.3035/50 area, and once above here, the Euro might find resistance at 1.3085 and 1.3160.
EUR/GBP has found resistance at the 0.8980 area (24 April low) on its recovery move from 0.8880 low yesterday. At the moment, the Euro trades 0.55% above its opening price on its way to test 0.8980 again. Above here, the Euro might find resistance at 0.9020 and 0.9080. On the downside, support levels lie at 0.8890 and 0.8845.
For more information, read our latest forex news.
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Tuesday, May 5, 2009
3 Technical Tools To Improve Your Trading
Technical analysis is the study of stock prices and pricing patterns that can help investors determine whether a stock is overbought (expensive) or oversold (cheap). By using various technical indicators together, called correlation, traders can bring the "big picture" about a stock into clearer focus.
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Here we'll look at volume, the Aroon indicator and Fibonacci numbers, three technical analysis tools that can be used to help facilitate more profitable trades. In fact, investors can use them in conjunction with each other to spot emerging trends and stay ahead of the crowd. Read on to find out how.Turn Up the VolumeVolume is defined as the number of shares that trade during a period of time such as an hour, a day, a week or a month. This shows the strength of an upward or downward price move. Generally, low volume occurs when prices move sideways or stay within a trading range, or during market bottoms. Conversely, high volume signals the beginning of a new trend (two or more high or low points) in the stock. High volume also occurs at market tops when there is strong conviction that prices will be moving higher, and can be used to confirm an upward or downward trend. If the stock is moving upward it should have higher volume on the upward moves and less volume on the downward side. Conversely, heavy volume on the downward moves and lower volume on the upward moves points to a downturn. By using volume in conjunction with movements in the stock you can spot the right areas to get into a trade. (For background reading, see Volume Oscillator Confirms Price Movements.)
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Tune in to AroonThe Aroon indicator can help pinpoint the strength of a trend and the chances that it will continue. Generally investors look for a move above or below zero (the no-trend, or neutral zone) to determine whether a new trend is emerging. A cross above zero indicates an upward trend (an "Aroon up"), while a cross below zero indicates a downward trend (an "Aroon down"). An indication near the zero line with no solid crossovers up or down indicates that the stock could continue to consolidate for a while until a direction is confirmed. The Aroon indicator can help uncover an emerging trend and enable you to take profits or protect yourself from losses. (Finding The Trend With Aroon explains how to use this tool in greater detail.)Fibonacci RetracementFibonacci numbers or studies are a series of numbers in which the following number is the sum of the two previous numbers, such as 1,1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and 233. You can use these numbers in trading in conjunction with support (the price where the stock has stopped falling in the past) and resistance levels (the price where prices have stopped rising previously). (For background reading, see Taking The Magic Out Of Fibonacci Numbers.)After a significant move up or down, the stock will usually retrace its movement by a certain percentage. During these movements, investors can use the Fibonacci number to see if a stock is going to touch a support or resistance level and bounce off. If it does, this signals that the stock is going to resume its original direction, either up or down. If the stock breaks that level, the investor looks to the next area of resistance or support to see if that is the point where the stock will resume its original move. (To learn more, read Retracement Or Reversal: Know The Difference.)As general rule, Fibonacci numbers should be used in conjunction with support and resistance levels to confirm whether the stock has bottomed out or stopped rising at these points. Putting It All TogetherUsing volume, Aroon and Fibonacci indicators together can help investors pinpoint whether a stock is likely to move up or down. Volume signals enthusiasm or fear, and whether the stock will continue to move higher, trend lower, top out or hit bottom. The Aroon indicator shows whether a stock is beginning a new trend or staying in a trading range, while the Fibonacci number will signal whether the stock has hit areas of strong support or resistance. While no one indicator is more important than the other, using the combination of all three can provide clues about a stock's overall directions
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Here we'll look at volume, the Aroon indicator and Fibonacci numbers, three technical analysis tools that can be used to help facilitate more profitable trades. In fact, investors can use them in conjunction with each other to spot emerging trends and stay ahead of the crowd. Read on to find out how.Turn Up the VolumeVolume is defined as the number of shares that trade during a period of time such as an hour, a day, a week or a month. This shows the strength of an upward or downward price move. Generally, low volume occurs when prices move sideways or stay within a trading range, or during market bottoms. Conversely, high volume signals the beginning of a new trend (two or more high or low points) in the stock. High volume also occurs at market tops when there is strong conviction that prices will be moving higher, and can be used to confirm an upward or downward trend. If the stock is moving upward it should have higher volume on the upward moves and less volume on the downward side. Conversely, heavy volume on the downward moves and lower volume on the upward moves points to a downturn. By using volume in conjunction with movements in the stock you can spot the right areas to get into a trade. (For background reading, see Volume Oscillator Confirms Price Movements.)
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Tune in to AroonThe Aroon indicator can help pinpoint the strength of a trend and the chances that it will continue. Generally investors look for a move above or below zero (the no-trend, or neutral zone) to determine whether a new trend is emerging. A cross above zero indicates an upward trend (an "Aroon up"), while a cross below zero indicates a downward trend (an "Aroon down"). An indication near the zero line with no solid crossovers up or down indicates that the stock could continue to consolidate for a while until a direction is confirmed. The Aroon indicator can help uncover an emerging trend and enable you to take profits or protect yourself from losses. (Finding The Trend With Aroon explains how to use this tool in greater detail.)Fibonacci RetracementFibonacci numbers or studies are a series of numbers in which the following number is the sum of the two previous numbers, such as 1,1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 and 233. You can use these numbers in trading in conjunction with support (the price where the stock has stopped falling in the past) and resistance levels (the price where prices have stopped rising previously). (For background reading, see Taking The Magic Out Of Fibonacci Numbers.)After a significant move up or down, the stock will usually retrace its movement by a certain percentage. During these movements, investors can use the Fibonacci number to see if a stock is going to touch a support or resistance level and bounce off. If it does, this signals that the stock is going to resume its original direction, either up or down. If the stock breaks that level, the investor looks to the next area of resistance or support to see if that is the point where the stock will resume its original move. (To learn more, read Retracement Or Reversal: Know The Difference.)As general rule, Fibonacci numbers should be used in conjunction with support and resistance levels to confirm whether the stock has bottomed out or stopped rising at these points. Putting It All TogetherUsing volume, Aroon and Fibonacci indicators together can help investors pinpoint whether a stock is likely to move up or down. Volume signals enthusiasm or fear, and whether the stock will continue to move higher, trend lower, top out or hit bottom. The Aroon indicator shows whether a stock is beginning a new trend or staying in a trading range, while the Fibonacci number will signal whether the stock has hit areas of strong support or resistance. While no one indicator is more important than the other, using the combination of all three can provide clues about a stock's overall directions
The Great Unraveling of the Yen Carry Trade
The Great Unraveling of the Yen Carry TradeThe yen carry trade became all the rage among investors and speculators, but by 2006, some experts began warning of the dangers that could arise if and when these carry trades were reversed or "unwound." These warnings went unheeded. The global credit crunch that developed from August 2007 led to the gradual unraveling of the yen carry trade. A little over a year later, as the collapse of Lehman Brothers and the U.S. government rescue of AIG sent shockwaves through the global financial system, the unwinding of the yen carry trade commenced in earnest. (For more insight, see How does a credit crunch occur?)Speculators began to be hit with margin calls as prices of practically every asset began sliding. To meet these margin calls, assets had to be sold, putting even more downward pressure on their prices. As credit conditions tightened dramatically, banks began calling in the loans, many of which were yen-denominated. Speculators not only had to sell their investments at fire-sale prices, but also had to repay their yen loans even as the yen was surging. Repatriation of yen made the currency even stronger. In addition, the interest rate advantage enjoyed by higher-yielding currencies began to dwindle as a number of countries slashed interest rates to stimulate their economies. (For more on this concept, check out the Margin Call section of our Margin Trading Tutorial.)The unwinding of the gigantic yen carry trade caused the Japanese currency to surge against major currencies. The yen rose as much as 29% against the euro in 2008. By February 2009, it had gained 19% against the U.S. dollar since September, rising to a 13-year high of about 90.
Why the Carry Trade Works
As noted earlier, during the boom years of 2003-2007, there was large-scale borrowing of Japanese yen by investors and speculators. The borrowed yen was then sold and invested in a variety of assets, ranging from higher-yielding currencies, such as the euro, to U.S. subprime mortgages and real estate, and including volatile assets such as commodities and emerging market stocks and bonds. In order to get more bang for their buck, large investors such as hedge funds used a substantial degree of leverage in order to magnify returns. But leverage is a double-edged sword – just as it can enhance returns when markets are booming, it can also amplify losses when asset prices are sliding. (For more on how leverage hurt the hedge funds during this period, read Hedge Fund Failures Illuminate Leverage Pitfalls.)As the carry trade gained momentum, a virtuous circle developed, whereby borrowed currencies such as the yen steadily depreciated, while the demand for risky assets pushed their prices higher. It is important to note that currency risk in a carry trade is seldom, if ever, hedged. This meant that the carry trade worked like a charm as long as the yen was depreciating, and mortgage and commodity portfolios were providing double-digit returns. Scant attention was paid to early warning signs such as the looming slowdown in the U.S. housing market, which peaked in the summer of 2006 and then commenced its long multiyear slide. (For more on this, see Why Housing Market Bubbles Pop.)
Example - Leverage Cuts Both Ways in Yen Carry TradeLet's run through an example of a yen carry trade to see what can happen when the market is booming and when it goes bust.
Borrow 100 million yen for one year at 0.50% per annum
Sell the borrowed amount and buy U.S. dollars at an exchange rate of 115 yen per dollar
Use this amount (approximately US$870,000) as 10% margin to acquire a portfolio of mortgage bonds paying 15%
The size of the mortgage bond portfolio is therefore $8.7 million (i.e. $870,000 is used as 10% margin, and the remaining 90%, or $7.83 million, is borrowed at 5%). After one year, assume the entire portfolio is liquidated and the yen loan is repaid. In this case, one of two things might occur:Scenario 1 (Boom Times) Assume the yen has depreciated to 120, and that the mortgage bond portfolio has appreciated by 20%.Total Proceeds = Interest on Bond Portfolio + Proceeds on Sale of Bond Portfolio = $1,305,000 + $10,440,000 = $11,745,000Total Outflows = Margin Loan ($7.83 million principal + 5% interest) + Yen Loan (principal + 0.50% interest) = $8,221,500 + 100,500,000 yen = $8,221,500 + $837,500 = $9,059,000 Overall Profit = $2,686,000 Return on Investment = $2,686,000 / $870,000 = 310%
Scenario 2 (Boom Turns to Bust)Assume the yen has appreciated to 100, and that the mortgage bond portfolio has depreciated by 20%.Total Proceeds = Interest on Bond Portfolio + Proceeds on Sale of Bond Portfolio = $1,305,000 + $6,960,000 = $8,265,000Total Outflows = Margin Loan ($7.83 million principal + 5% interest)+ Yen Loan (principal + 0.50% interest) = $8,221,500 + 100,500,000 yen = $8,221,500 + $1,005,000 = $9,226,500 Overall Loss = $961,500 Return on Investment = -$961,500 / $870,000 = -110%
Example - Leverage Cuts Both Ways in Yen Carry TradeLet's run through an example of a yen carry trade to see what can happen when the market is booming and when it goes bust.
Borrow 100 million yen for one year at 0.50% per annum
Sell the borrowed amount and buy U.S. dollars at an exchange rate of 115 yen per dollar
Use this amount (approximately US$870,000) as 10% margin to acquire a portfolio of mortgage bonds paying 15%
The size of the mortgage bond portfolio is therefore $8.7 million (i.e. $870,000 is used as 10% margin, and the remaining 90%, or $7.83 million, is borrowed at 5%). After one year, assume the entire portfolio is liquidated and the yen loan is repaid. In this case, one of two things might occur:Scenario 1 (Boom Times) Assume the yen has depreciated to 120, and that the mortgage bond portfolio has appreciated by 20%.Total Proceeds = Interest on Bond Portfolio + Proceeds on Sale of Bond Portfolio = $1,305,000 + $10,440,000 = $11,745,000Total Outflows = Margin Loan ($7.83 million principal + 5% interest) + Yen Loan (principal + 0.50% interest) = $8,221,500 + 100,500,000 yen = $8,221,500 + $837,500 = $9,059,000 Overall Profit = $2,686,000 Return on Investment = $2,686,000 / $870,000 = 310%
Scenario 2 (Boom Turns to Bust)Assume the yen has appreciated to 100, and that the mortgage bond portfolio has depreciated by 20%.Total Proceeds = Interest on Bond Portfolio + Proceeds on Sale of Bond Portfolio = $1,305,000 + $6,960,000 = $8,265,000Total Outflows = Margin Loan ($7.83 million principal + 5% interest)+ Yen Loan (principal + 0.50% interest) = $8,221,500 + 100,500,000 yen = $8,221,500 + $1,005,000 = $9,226,500 Overall Loss = $961,500 Return on Investment = -$961,500 / $870,000 = -110%
The Credit Crisis And The Carry Trade
Broadly speaking, the term "carry trade" means borrowing at a low interest rate and investing in an asset that provides a higher rate of return. For example, assume that you can borrow $20,000 at an interest rate of 3% for one year; further assume that you invest the borrowed proceeds in a certificate of deposit that pays 6% for one year. After a year, your carry trade has earned you $600, or the difference between the return on your investment and the interest paid times the amount borrowed.
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Of course, in the real world, opportunities like these rarely exist because the cost of borrowing funds is usually significantly higher than interest earned on deposits. But what if an investor wishes to invest low-cost funds in an asset that promises spectacular returns, albeit with a much greater degree of risk? In this case, we are referring to the currency, or forex, markets, where carry quickly became one of the most important strategies. These trades allowed some traders to rake in big profits, but they also played a part in the credit crisis that struck world economic systems in 2008. Read on to find out how to execute these trades. (To learn more about currency carry trades, such as the yen carry trade, read Currency Carry Trades Deliver.)
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Of course, in the real world, opportunities like these rarely exist because the cost of borrowing funds is usually significantly higher than interest earned on deposits. But what if an investor wishes to invest low-cost funds in an asset that promises spectacular returns, albeit with a much greater degree of risk? In this case, we are referring to the currency, or forex, markets, where carry quickly became one of the most important strategies. These trades allowed some traders to rake in big profits, but they also played a part in the credit crisis that struck world economic systems in 2008. Read on to find out how to execute these trades. (To learn more about currency carry trades, such as the yen carry trade, read Currency Carry Trades Deliver.)
A New Millennium for Carry Trades
A New Millennium for Carry TradesIn the 2000s, the term "carry trade" became synonymous with the "yen carry trade", which involved borrowing in the Japanese yen and investing the proceeds in virtually any asset class that promised a higher rate of return. The Japanese yen became a favored currency for the borrowing part of the carry trade because of the near-zero interest rates in Japan for much of this period. By early 2007, it was estimated that about US $1 trillion had been invested in the yen carry trade. (For more on yen carry trades, see Profiting From Carry Trade Candidates.)Carry trades involving riskier assets are successful when interest rates are low and there is ample global appetite for risky assets. This was the case in the period from 2003 until the summer of 2007, when interest rates in a number of nations were at their lowest levels in decades, while demand surged for relatively risky assets such as commodities and emerging markets. The unusual appetite for risk during this period could be gauged by the abnormally low level of volatility in the U.S. stock market (as measured by the CBOE Volatility Index or VIX), as well as by the low risk premiums that investors were willing to accept (one measure of which was the historically low spreads of high-yield bonds and emerging market debt to U.S. government Treasuries). Carry trades work on the premise that changes in the financial environment will occur gradually, allowing the investor or speculator ample time to close out the trade and lock in profits. But if the environment changes abruptly, investors and speculators could be forced to close their carry trades as expeditiously as possible. Unfortunately, such a reversal of innumerable carry trades can have unexpected and potentially devastating consequences for the global economy.
Forex Live rates, Forex Recommendations, Forex Levels, Forex News, Forex Investments, Forex Managed Accounts
FOREX is the world’s largest and most liquid trading market. In our opinion ,FOREX is one of the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for speculations (in the same way banks and large corporations do) since 1998, it is just now becoming the cool, hip, new "thing" to talk about at parties, business events, and other social gatherings.
Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading because of what they perceive as its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.
But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.
So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.
Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, operate in this market
The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.
But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.
So, you're probably wondering where it's at ... or ... how to access the FX market?
The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.
Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.
Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:
Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate between the two currencies.
In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.
Example:
EUR/USD last trade 1.3680 - One Euro is worth $1.3680 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets.
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. 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 Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.
There's plenty of opportunities using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them enter this market.
MANAGE YOUR FOREX ACCOUNT
Forex2Earn has specialized team in providing professional Forex investment management account on a discretionary basis wide variety of markets including the worldwide inter-bank foreign exchange (Forex) market. Its programs are technical, trend-following, support & resistance, volatility systems and are speculative in nature. In managed Account you don't need to send money to us its very simple you just have to open an account with your bank nearest to your locality . We will only open your account with FXCM on your request with your name. Managed Account investors are advised to carefully check your account statement weekly, fortnightly and monthly basis. Invest in your future and Trade FOREX with a managed account. Forex2Earn team is always ready and vigilant to manage you accounts.
Managed Account's Goal
The goal of Forex2Earn team is to provide Maximum exposure and Maximum Trading Oportimotoes in the Currency Market to our investor through opening individual accounts traded by professional of Forex2Earn team's managers. We will only get 50% profit which we earn in your account on monthly basis. You can open an account from our web site to click Individual Account or Mini Accounts. We are ready to serve our investor/client in best manner.
Forex2earn is Giving Effecient & Different Services
Forex2Earn has very trained and experienced team members. They are doing Currencies business since last 10 years and have gained a lot of experience. Here is a little difference which our Client gain during the previous month on little investment.So Become a Member and get more services to improve your Trading.
Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to the all-electronic world of FOREX trading because of what they perceive as its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities.
But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, the mind has to be open and the slate has to be clear for starting out fresh with the CORRECT information.
So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what the heck "FX" (FOREX) means, what it is, and why it exists.
Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, operate in this market
The Foreign Exchange Market, also referred to the "FOREX" or "FX" market, is the spot (cash) market for currency.
But, don't mistake FX as trading the futures market, where you buy a contract to purchase a particular currency at a future price in time.
So, you're probably wondering where it's at ... or ... how to access the FX market?
The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to the fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period.
Yes, if that's the first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you.
Here's what you are actually trading when you participate in the Foreign Exchange (FOREX) market:
Essentially, like the large banks who use the FX market to protect themselves from the fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and the price that is quoted to us is the exchange rate between the two currencies.
In other words, simply the quoted price is how many of the one currency is worth 1 of the other currency.
Example:
EUR/USD last trade 1.3680 - One Euro is worth $1.3680 US dollars.The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
The FOREX has a DAILY trading volume of around $1.5 trillion dollars - 30 times larger than the combined volume of all U.S. equity markets.
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the FOREX. 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 Japan can sell products in the United States and be able to receive Japanese Yen in exchange for US Dollar.
There's plenty of opportunities using FOREX for plenty of traders that use the right trading techniques / tactics that will allow them enter this market.
MANAGE YOUR FOREX ACCOUNT
Forex2Earn has specialized team in providing professional Forex investment management account on a discretionary basis wide variety of markets including the worldwide inter-bank foreign exchange (Forex) market. Its programs are technical, trend-following, support & resistance, volatility systems and are speculative in nature. In managed Account you don't need to send money to us its very simple you just have to open an account with your bank nearest to your locality . We will only open your account with FXCM on your request with your name. Managed Account investors are advised to carefully check your account statement weekly, fortnightly and monthly basis. Invest in your future and Trade FOREX with a managed account. Forex2Earn team is always ready and vigilant to manage you accounts.
Managed Account's Goal
The goal of Forex2Earn team is to provide Maximum exposure and Maximum Trading Oportimotoes in the Currency Market to our investor through opening individual accounts traded by professional of Forex2Earn team's managers. We will only get 50% profit which we earn in your account on monthly basis. You can open an account from our web site to click Individual Account or Mini Accounts. We are ready to serve our investor/client in best manner.
Forex2earn is Giving Effecient & Different Services
Forex2Earn has very trained and experienced team members. They are doing Currencies business since last 10 years and have gained a lot of experience. Here is a little difference which our Client gain during the previous month on little investment.So Become a Member and get more services to improve your Trading.
Business Finances - Problems and Their Solutions
If you want to succeed in business, you need to know about financial management. When starting a business one of the biggest things you must make sure you have control over and have a plan for is your finances. Poor financial management is one of the leading reasons that businesses fail. In many cases, failure could have been avoided if the owners had applied sound financial principles to all their dealings and decisions. Financial management is not something that you can leave to your banker, financial planner, or accountant — you need to understand the basic principles yourself and use them on a daily basis, even if you plan to leave the more complicated work to hired professionals.
There are two types of financing: equity and debt financing. When looking for money, you must consider your company’s debt-to-equity ratio - the relation between dollars you’ve borrowed and dollars you’ve invested in your business.
If your firm has a high ratio of equity to debt, you should probably seek debt financing. However, if your company has a high proportion of debt to equity, experts advise that you should increase your ownership capital (equity investment) for additional funds. That way you won’t be over-leveraged to the point of jeopardizing your company’s survival.
There are many sources for debt financing: banks, savings and loans, commercial finance companies. State and local governments have developed many programs in recent years to encourage the growth of small businesses in recognition of their positive effects on the economy.
In addition to equity considerations, lenders commonly require the borrower’s personal guarantees in case of default. This ensures that the borrower has a sufficient personal interest at stake to give paramount attention to the business. For most borrowers this is a burden, but also a necessity
Most small or growth-stage businesses use limited equity financing. As with debt financing, additional equity often comes from non-professional investors such as friends, relatives, employees, customers, or industry colleagues. However, the most common source of professional equity funding comes from venture capitalists. These are institutional risk takers and may be groups of wealthy individuals, government-assisted sources, or major financial institutions. Most specialize in one or a few closely related industries.
Venture capitalists are often seen as deep-pocketed financial gurus looking for start-ups in which to invest their money, but they most often prefer three-to-five-year old companies with the potential to become major regional or national concerns and return higher-than-average profits to their shareholders.
Different venture capitalists have different approaches to management of the business in which they invest. They generally prefer to influence a business passively, but will react when a business does not perform as expected and may insist on changes in management or strategy. Relinquishing some of the decision-making and some of the potential for profits are the main disadvantages of equity financing.
There are two types of financing: equity and debt financing. When looking for money, you must consider your company’s debt-to-equity ratio - the relation between dollars you’ve borrowed and dollars you’ve invested in your business.
If your firm has a high ratio of equity to debt, you should probably seek debt financing. However, if your company has a high proportion of debt to equity, experts advise that you should increase your ownership capital (equity investment) for additional funds. That way you won’t be over-leveraged to the point of jeopardizing your company’s survival.
There are many sources for debt financing: banks, savings and loans, commercial finance companies. State and local governments have developed many programs in recent years to encourage the growth of small businesses in recognition of their positive effects on the economy.
In addition to equity considerations, lenders commonly require the borrower’s personal guarantees in case of default. This ensures that the borrower has a sufficient personal interest at stake to give paramount attention to the business. For most borrowers this is a burden, but also a necessity
Most small or growth-stage businesses use limited equity financing. As with debt financing, additional equity often comes from non-professional investors such as friends, relatives, employees, customers, or industry colleagues. However, the most common source of professional equity funding comes from venture capitalists. These are institutional risk takers and may be groups of wealthy individuals, government-assisted sources, or major financial institutions. Most specialize in one or a few closely related industries.
Venture capitalists are often seen as deep-pocketed financial gurus looking for start-ups in which to invest their money, but they most often prefer three-to-five-year old companies with the potential to become major regional or national concerns and return higher-than-average profits to their shareholders.
Different venture capitalists have different approaches to management of the business in which they invest. They generally prefer to influence a business passively, but will react when a business does not perform as expected and may insist on changes in management or strategy. Relinquishing some of the decision-making and some of the potential for profits are the main disadvantages of equity financing.
Day Trading Robots Facts
Are you looking for reviews from people who have joined the Day Trading Robot Newsletter? This automated stock trading robot is created by Jason Kelly, and he claims that his software can make highly accurate analysis and recommendations that will generate huge profits every day. On his website, he shows how he managed to utilize his own software to make more than 100% in his money in just 1 to 2 days.
Download Day Trading Robot Now!
1. Can You Download the Day Trading Robot Software?
This software will cost you about $10,000, which is a very expensive fee for most people to pay. As a result, Jason has created a newsletter service to release reports and analysis generated by the robot. This information can then be sent out to all other subscribers and is sent out whenever his auto software finds a suitable chart pattern to profit from.
2. How is Day Trading Robot Created? Does it Really Work?
This stock trading robot is developed by Dr. Robert Finn and James Holt who have experience making money for financial institutions. The tools contains a large database of chart patterns that it uses to decipher whether other stock charts are going to become very bullish in the near future. This database of price patterns is a collection of tens of thousands of price charts analyzed. History has shown that the robot starts working better and better when time goes by as it learns and accumulates more and more bullish chart patterns.
3. How Exactly Does the Day Trading Robot Find Profitable Trades?
This stock trading robot will download and analyze data from the penny stocks market every day to find upward trending, bullish chart patterns. All this information is analyzed within seconds and profit opportunities can be found quickly by the robot.
Jason Kelly has made a remarkable change in it. Day Trading Robot stock picks are now available to you at a reasonable price. With a one time investment of $97, you can get the latest info on stock tips through the newsletter. Isn’t it simpler than investing over $100,000 a year?
Best of all, you are put to ZERO risk. With Day Trading Robot, you are provided with 100% satisfaction guarantee. If at all you are not satisfied with the performance of Day Trading Robot, you can simply ask for a refund. So that means, you can try DAY TRADING ROBOT absolutely free.
The specialspecial thing about Day Trading Robot is that they have even mentioned the postal address, contact telephone with exact extension number along with email address for technical support.
What more can we expect from a genuine day trading robot? Surely, an incredible and reliable Automated Stock Trading Robot. With correct stock trading tools, you greatly minimize the risk. Go, get Day Trading Robot and make bigger profits.
Buy Day Trading Robot Here
Discover the best way to manage your earned money! Visit this blog and find a lot of useful info about forex managed account!
Download Day Trading Robot Now!
1. Can You Download the Day Trading Robot Software?
This software will cost you about $10,000, which is a very expensive fee for most people to pay. As a result, Jason has created a newsletter service to release reports and analysis generated by the robot. This information can then be sent out to all other subscribers and is sent out whenever his auto software finds a suitable chart pattern to profit from.
2. How is Day Trading Robot Created? Does it Really Work?
This stock trading robot is developed by Dr. Robert Finn and James Holt who have experience making money for financial institutions. The tools contains a large database of chart patterns that it uses to decipher whether other stock charts are going to become very bullish in the near future. This database of price patterns is a collection of tens of thousands of price charts analyzed. History has shown that the robot starts working better and better when time goes by as it learns and accumulates more and more bullish chart patterns.
3. How Exactly Does the Day Trading Robot Find Profitable Trades?
This stock trading robot will download and analyze data from the penny stocks market every day to find upward trending, bullish chart patterns. All this information is analyzed within seconds and profit opportunities can be found quickly by the robot.
Jason Kelly has made a remarkable change in it. Day Trading Robot stock picks are now available to you at a reasonable price. With a one time investment of $97, you can get the latest info on stock tips through the newsletter. Isn’t it simpler than investing over $100,000 a year?
Best of all, you are put to ZERO risk. With Day Trading Robot, you are provided with 100% satisfaction guarantee. If at all you are not satisfied with the performance of Day Trading Robot, you can simply ask for a refund. So that means, you can try DAY TRADING ROBOT absolutely free.
The specialspecial thing about Day Trading Robot is that they have even mentioned the postal address, contact telephone with exact extension number along with email address for technical support.
What more can we expect from a genuine day trading robot? Surely, an incredible and reliable Automated Stock Trading Robot. With correct stock trading tools, you greatly minimize the risk. Go, get Day Trading Robot and make bigger profits.
Buy Day Trading Robot Here
Discover the best way to manage your earned money! Visit this blog and find a lot of useful info about forex managed account!
Forex Market Comparison
Forex Market Comparison
Forex vs. Stocks
Advantage
Forex Market
Stock Market
Trade Around the Clock
Yes
Limited
Pay No Commissions*
Yes
Limited
Unlimited Short-selling
Yes
No
Market Information Easily Available
Yes
Yes
Trade Around the Clock
The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.
Pay No Commissions*
In the forex market costs are confined to the bid-ask spread. FXCM charges no commission or additional transaction fees, and its customers trade on spreads provided to FXCM by some of the world's largest banks via the FX Trading Station. In the stock market, “no-fee” programs are frequently offered only with provisos mandating minimum account balances or minimum trades per month.
* FXCM is compensated through the bid/ask spread except where otherwise noted. Please note commission charges apply for certain classes of non-standard accounts such as Active Trader. For additional information click here.
No Uptick Rule
Unlike the equity market, there is no restriction on short selling in the forex currency market, no matter which way the market is moving. Since currency trading involves buying one currency and selling another, a trader has the same ability to trade in a rising market as in a falling one.
Forex Market Information Easily Accessible
Information about stocks is abundant, but so are the stocks. Finding a trade opportunity in the equities markets may mean sifting through data on thousands of stocks, while the forex trader has only six major currencies to research. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.
We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.
To learn more about transitioning from trading equity markets to trading in the Forex market, contact the FXCM staff today at 888-503-6739. *FXCM is compensated for its services through the bid ask spread. -->
High Risk Investment
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Forex vs. Stocks
Advantage
Forex Market
Stock Market
Trade Around the Clock
Yes
Limited
Pay No Commissions*
Yes
Limited
Unlimited Short-selling
Yes
No
Market Information Easily Available
Yes
Yes
Trade Around the Clock
The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.
Pay No Commissions*
In the forex market costs are confined to the bid-ask spread. FXCM charges no commission or additional transaction fees, and its customers trade on spreads provided to FXCM by some of the world's largest banks via the FX Trading Station. In the stock market, “no-fee” programs are frequently offered only with provisos mandating minimum account balances or minimum trades per month.
* FXCM is compensated through the bid/ask spread except where otherwise noted. Please note commission charges apply for certain classes of non-standard accounts such as Active Trader. For additional information click here.
No Uptick Rule
Unlike the equity market, there is no restriction on short selling in the forex currency market, no matter which way the market is moving. Since currency trading involves buying one currency and selling another, a trader has the same ability to trade in a rising market as in a falling one.
Forex Market Information Easily Accessible
Information about stocks is abundant, but so are the stocks. Finding a trade opportunity in the equities markets may mean sifting through data on thousands of stocks, while the forex trader has only six major currencies to research. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.
We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.
To learn more about transitioning from trading equity markets to trading in the Forex market, contact the FXCM staff today at 888-503-6739. *FXCM is compensated for its services through the bid ask spread. -->
High Risk Investment
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
How to Trade Forex the Right Way - Do You Really Need Forex Scalping?
Daniel S. asked:
You can look at many different types of forex trading strategies when trying to increase your profits. Some people may choose the forex scalping method because they think it is a fast and easy way to reap the wealth from the market. But I will say that it is one of the most inaccurate and risky way of trading. Having the idea that you need to break down every aspect of the market and constantly be in action is the wrong way to go.
When you look at the most successful traders, and each depend upon the forex trading guide that has proven time and time again to be profitable for them. That being the case, many people will argue that learning how to trade forex is an extremely tedious business.
Some newer traders will look at the market and try to use too many methods to evaluate their trends. This is a great way to overcomplicate things and become extremely disorganized. If you are just coming into the market, you need to realize that you need to develop some forex trading techniques that will consistently produce your profits in the market.
Another pratfall when looking for your forex trading system is that people think they have to discover the next new super forex trend system or holy grail that will produce a hundred pips a day for them. It is quite impossible and absolutely not necessary as you can have a good living with the system that will produce just a few hundreds pips per month.
If you are looking for a system that is the be-all end-all where a forex trading guide is concerned, I need to tell you that it simply does not exist. Your goal is to find a simple system that will put money in your pocket on a steady basis and stick with it.
You should be looking for quality instead of quantity trades. One of the common forex trading strategies is to follow the trend or using breakouts. There are some forex indicators that will allow you to use those strategies effectively, the only challenge is choosing the right forex trading strategies in different market conditions. Bottomline is you should identify how you’re going to focus your trading, make it profitable and stick with it.
The knock on this that forex trading can be boring and that you will lose interest. If you really struggle in forex trading, then you may want to consider some of the automated forex trading systems that will make you some profits in the long run. But of course, it is not advisable to use that if you have no idea on currency trading at all.
So if you find a good forex tradin guide that will allow you to identify trends and make the long-term moves, why would still you mess around with forex scalping? The most profitable traders find their niche and stick with it.
If you are still not making consistent profits from the market, you can get my free forex trading guide that will provide all the information you need on how to trade forex successfully. You will also find a simple and proven forex trading strategy that can get you started to make some profits - consistently.
You can look at many different types of forex trading strategies when trying to increase your profits. Some people may choose the forex scalping method because they think it is a fast and easy way to reap the wealth from the market. But I will say that it is one of the most inaccurate and risky way of trading. Having the idea that you need to break down every aspect of the market and constantly be in action is the wrong way to go.
When you look at the most successful traders, and each depend upon the forex trading guide that has proven time and time again to be profitable for them. That being the case, many people will argue that learning how to trade forex is an extremely tedious business.
Some newer traders will look at the market and try to use too many methods to evaluate their trends. This is a great way to overcomplicate things and become extremely disorganized. If you are just coming into the market, you need to realize that you need to develop some forex trading techniques that will consistently produce your profits in the market.
Another pratfall when looking for your forex trading system is that people think they have to discover the next new super forex trend system or holy grail that will produce a hundred pips a day for them. It is quite impossible and absolutely not necessary as you can have a good living with the system that will produce just a few hundreds pips per month.
If you are looking for a system that is the be-all end-all where a forex trading guide is concerned, I need to tell you that it simply does not exist. Your goal is to find a simple system that will put money in your pocket on a steady basis and stick with it.
You should be looking for quality instead of quantity trades. One of the common forex trading strategies is to follow the trend or using breakouts. There are some forex indicators that will allow you to use those strategies effectively, the only challenge is choosing the right forex trading strategies in different market conditions. Bottomline is you should identify how you’re going to focus your trading, make it profitable and stick with it.
The knock on this that forex trading can be boring and that you will lose interest. If you really struggle in forex trading, then you may want to consider some of the automated forex trading systems that will make you some profits in the long run. But of course, it is not advisable to use that if you have no idea on currency trading at all.
So if you find a good forex tradin guide that will allow you to identify trends and make the long-term moves, why would still you mess around with forex scalping? The most profitable traders find their niche and stick with it.
If you are still not making consistent profits from the market, you can get my free forex trading guide that will provide all the information you need on how to trade forex successfully. You will also find a simple and proven forex trading strategy that can get you started to make some profits - consistently.
Benifits of Forex Trading
Benifits of Forex Trading
One of the must lucrative and viable global money-making ventures today is the Foreign Exchange, or Forex Trading, where an average of 3 Trillion US dollars are being traded everyday.Forex trading and its benefits remain to be one of today's most sought-after ventures and has been getting a lot of attention lately in the international market.There are two possible scenarios that best describe the implications of trading in the forex trade market.One is the bear market, where it indicates a sustained fall in prices and which does not look like it will recover quickly and a bull market, which is characterized by enthusiastic and sustained buying.All the same, both market circumstances are the two situational extremes in a Forex trading market and it will take a lot of lot of resolve and risk to make good in this market, but good planning, common sense, keen analytical and statistical acumen will surely work best in the forex trading market.But Why Trade Forex?One of the best advantages of the forex trade market is its dynamic and 'round the clock' trading operations beginning Sunday at 20:00 GMT to Friday evening 22:00 GMT.This is mainly because of the fact that the worldwide distribution of trading centers rely on the respective time zones of each country where the trading centers are located.Another benefit of this dynamic timeframe is the chance to react quickly to breaking news, fluctuations or developments that affect the markets.Another main benefit of the forex trading market is its superior liquidity, based on the fact that there will always be buyers or sellers to trade with, regardless of the currency that is being considered.The liquidity of the forex trade market, particularly among the major currencies, ensures of price stability and narrow spreads and this liquidity mainly comes from banks that provide liquidity to investors and other currency market players.Another benefit of Forex trading is that most traders find it very attractive to trade frequently since it is a commission-less trade practice.Most traders also find the best leverage value for their money, since the forex trading practice can help gear up their position up to 100 times their margin deposit. For example, a USD 25,000 deposit for investment can command to as high as USD 2,500,000 through leverage, and could even extend collateral to as much as 50 times the margin value.A good understanding into the basics of forex trading and its benefits can help you explore this dynamic and high-income potential market.
Article:freearticles.com.
One of the must lucrative and viable global money-making ventures today is the Foreign Exchange, or Forex Trading, where an average of 3 Trillion US dollars are being traded everyday.Forex trading and its benefits remain to be one of today's most sought-after ventures and has been getting a lot of attention lately in the international market.There are two possible scenarios that best describe the implications of trading in the forex trade market.One is the bear market, where it indicates a sustained fall in prices and which does not look like it will recover quickly and a bull market, which is characterized by enthusiastic and sustained buying.All the same, both market circumstances are the two situational extremes in a Forex trading market and it will take a lot of lot of resolve and risk to make good in this market, but good planning, common sense, keen analytical and statistical acumen will surely work best in the forex trading market.But Why Trade Forex?One of the best advantages of the forex trade market is its dynamic and 'round the clock' trading operations beginning Sunday at 20:00 GMT to Friday evening 22:00 GMT.This is mainly because of the fact that the worldwide distribution of trading centers rely on the respective time zones of each country where the trading centers are located.Another benefit of this dynamic timeframe is the chance to react quickly to breaking news, fluctuations or developments that affect the markets.Another main benefit of the forex trading market is its superior liquidity, based on the fact that there will always be buyers or sellers to trade with, regardless of the currency that is being considered.The liquidity of the forex trade market, particularly among the major currencies, ensures of price stability and narrow spreads and this liquidity mainly comes from banks that provide liquidity to investors and other currency market players.Another benefit of Forex trading is that most traders find it very attractive to trade frequently since it is a commission-less trade practice.Most traders also find the best leverage value for their money, since the forex trading practice can help gear up their position up to 100 times their margin deposit. For example, a USD 25,000 deposit for investment can command to as high as USD 2,500,000 through leverage, and could even extend collateral to as much as 50 times the margin value.A good understanding into the basics of forex trading and its benefits can help you explore this dynamic and high-income potential market.
Article:freearticles.com.
Dollar extends gains against Euro and Swiss Franc
FXstreet.com − Dollar is rising across the board. Against the euro got stronger and went bellow 1.3300 for the first time of the day to 1.3280 (lowest for the session). Ainst the Swiss Franc the dollar is also stronger. USD/CHF has recently reached a day high at 1.1360[ Full Story ]
Online Forex Trading Easy And Cost-effective
Largest world market: The largest financial market in the world is the Forex Market with an approximate USS$ 1.5 trillion trade per day. The main reason for the huge size of the market is the extreme demand worldwide for foreign currency. Central banks and international businesses thrive on International Trade as a main income sources with currency prices floated and not dependant upon gold prices. The ease of online forex trading has made the market even more attractive and lucrative.
Reasons for online trading: Online forex trading has many great advantages such starting trade with a couple of hundred US Dollars, trade twenty-four hours a day, seven day a week and no commissions payable to middlemen, making returns on capital more. Online forex trading companies generally offer high leverage ratio’s to clients as an added bonus. Special trade software provides real-time news, charts and analysis as well as demo accounts for you to try your hand at trading with no risk.Cost efficient: Using online forex trading instead of normal brokered forex trading will save you bags of money as there is no middleman fees payable-you are your own broker. However online trading will attract costs in the form of opening, managing or administrating the account as well as software.
Experience required: Experience is required if you are planning to play the foreign exchange market online. Do a course or research on foreign exchange trade as you may just stumble upon terms or transactions you are not familiar with. Please bear in mind that your are exposed to high risks with this market type. The Forex Market has high returns as well as high risk. The positive and negative must be well-balanced to be successful.
High risk: Due to the fact that foreign currency trading is conducted over-the-counter, no organised or formal market legislations or regulations are strictly applicable, opening the door for fraud, money laundering or theft. Gearing or leverage effects will have either a positive or negative impact on you as even the smallest of movement in the market will have a possible great impact on your deposit. Orders intended to reduce risk may not always be effective as they may not be executable depending on the market conditions.
Reasons for online trading: Online forex trading has many great advantages such starting trade with a couple of hundred US Dollars, trade twenty-four hours a day, seven day a week and no commissions payable to middlemen, making returns on capital more. Online forex trading companies generally offer high leverage ratio’s to clients as an added bonus. Special trade software provides real-time news, charts and analysis as well as demo accounts for you to try your hand at trading with no risk.Cost efficient: Using online forex trading instead of normal brokered forex trading will save you bags of money as there is no middleman fees payable-you are your own broker. However online trading will attract costs in the form of opening, managing or administrating the account as well as software.
Experience required: Experience is required if you are planning to play the foreign exchange market online. Do a course or research on foreign exchange trade as you may just stumble upon terms or transactions you are not familiar with. Please bear in mind that your are exposed to high risks with this market type. The Forex Market has high returns as well as high risk. The positive and negative must be well-balanced to be successful.
High risk: Due to the fact that foreign currency trading is conducted over-the-counter, no organised or formal market legislations or regulations are strictly applicable, opening the door for fraud, money laundering or theft. Gearing or leverage effects will have either a positive or negative impact on you as even the smallest of movement in the market will have a possible great impact on your deposit. Orders intended to reduce risk may not always be effective as they may not be executable depending on the market conditions.
Foreign exchange market
The foreign exchange market (currency, forex, or FX) is where currency trading takes place. It is where banks and other official institutions facilitate the buying and selling of foreign currencies. [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.
Presently, 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.
Presently, 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.
Forex Tutorial - Its Importance
Starting a career in Forex market is a highly ambitious move that requires learning the industry’s complex system by way of a Forex tutorial course. Through this you can gain an excellent overview of what makes the system works and of how it operates, and it will provide you with all the essential, basic information you will need to navigate the market’s highly vibrant yet volatile world. Therefore, the importance of such a training or tutorial course should never be overlooked.
Not too long ago, accessibility to Forex trading was only limited to banks and large financial institutions. With the advent of the Internet and introduction of new technologies, Forex trading expanded and opened its doors to small companies and individual parties through online trading. With online trading came other new opportunities with online businesses benefiting the most, and online tutorials being one of them.
There are two ways you can enroll in a Forex tutorial or training course: online or on-location. Either one of these two options is a viable way of getting a basic knowledge on the subject. Because such courses are being offered by organizations, institutions, or by many highly-skilled and experienced individuals, finding one to suit your personal preferences and needs will prove to be easier.
The online tutorial course is better suited for individuals such as those already committed to an existing job or vocation and can only devote themselves to learning the lessons during their spare time. This allows the student to learn at his pace, and within the time and place of his choosing. While the on-location option gives the student the benefits of personally interacting with the teacher and other students as well, it can only be done within the confines of a school environment. Such advantages are strictly dependent and relevant to the preferences of the individual.
Having knowledge of the basics of Forex trading is just one important factor in equipping and preparing you for doing business in the currency market. It should not be taken as a guarantee for you or anyone to make a sure profit or profits from currency trading. Knowledge, together with the use of one’s inherent skills and accumulated experience, go hand in hand in determining the outcome of your day to day transactions.
Learning the basics of Forex trading by way of Forex tutorials is a good foundation that can greatly help you in building and developing your skills as a successful trader. So take a Forex tutorial course now and broaden your current outlook and perspective about the Forex market.
About the Author:
A forex tip are powerful when coupled with a desire to learn and a drive to become a great trader. Learning free forex tips takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
Not too long ago, accessibility to Forex trading was only limited to banks and large financial institutions. With the advent of the Internet and introduction of new technologies, Forex trading expanded and opened its doors to small companies and individual parties through online trading. With online trading came other new opportunities with online businesses benefiting the most, and online tutorials being one of them.
There are two ways you can enroll in a Forex tutorial or training course: online or on-location. Either one of these two options is a viable way of getting a basic knowledge on the subject. Because such courses are being offered by organizations, institutions, or by many highly-skilled and experienced individuals, finding one to suit your personal preferences and needs will prove to be easier.
The online tutorial course is better suited for individuals such as those already committed to an existing job or vocation and can only devote themselves to learning the lessons during their spare time. This allows the student to learn at his pace, and within the time and place of his choosing. While the on-location option gives the student the benefits of personally interacting with the teacher and other students as well, it can only be done within the confines of a school environment. Such advantages are strictly dependent and relevant to the preferences of the individual.
Having knowledge of the basics of Forex trading is just one important factor in equipping and preparing you for doing business in the currency market. It should not be taken as a guarantee for you or anyone to make a sure profit or profits from currency trading. Knowledge, together with the use of one’s inherent skills and accumulated experience, go hand in hand in determining the outcome of your day to day transactions.
Learning the basics of Forex trading by way of Forex tutorials is a good foundation that can greatly help you in building and developing your skills as a successful trader. So take a Forex tutorial course now and broaden your current outlook and perspective about the Forex market.
About the Author:
A forex tip are powerful when coupled with a desire to learn and a drive to become a great trader. Learning free forex tips takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
What is an Online Forex Trading?
What is an Online Forex Trading?Written by admin on May 5th, 2009
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For-ex stands for Foreign Exchange; it is a global market for dealing currencies at floating exchange rates. The foreign exchange is world’s biggest currency market, on an average everyday dollar one to two trillion is traded in the foreign exchange. The trade is mostly done over the internet and telephone lines. Online forex trading is a fast, safe and easy mode of investing. It offers huge returns like twenty to thirty percent every month, yes unbelievable but truth, however that’s only in some cases and you need a lot of experience to be able to extract that amount of interest! There is no fixed centre for the trade so all the trade is done over telephone, internet and fax. The foreign exchange trade witnessed a massive boom only after online forex trading systems were introduced, internet and telephone has helped the trade grow from $70 billion a day in the 80s to around $1.5 trillion to $2 trillion today. The currency market is made up of around five thousand institutions most of which are international banks, central government banks, commercial companies as well as big brokers and all these are connected with each other and do business on the go through online forex trading system. The major centers for online forex trading are New York, Frankfurt, London, Paris, Tokyo, Hong Kong, Bombay among others, and all these centers also communicate and deal through online forex trading. The benefits of online forex trading are listed below: - Currency market never sleeps: online forex trading allows you to keep track and deal from anywhere at anytime. - Mini accounts: some websites offer mini accounts that allow you to get started with as less as $200. - No Commission! - Online forex trading is commission free, there’s no exchange or hidden fee either. Your broker earns from the spreads. - Instant: it’s instant unlike offline trade which may involve paperwork. The nature of the market is such that risk comes inherent and can not be separated but risk can be minimized if you are trading at the right point of time and the right point of time can be anytime only online forex trading allows you to be there at the right time as all other methods as explained above are slow and usually take up a lot of time in processing. Want to learn more about Online Forex Trading?, feel free to visit us at: Forex Trading Resources About the Author Want to learn more about Online Forex Trading?, feel free to visit us at: Forex Trading Resources
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For-ex stands for Foreign Exchange; it is a global market for dealing currencies at floating exchange rates. The foreign exchange is world’s biggest currency market, on an average everyday dollar one to two trillion is traded in the foreign exchange. The trade is mostly done over the internet and telephone lines. Online forex trading is a fast, safe and easy mode of investing. It offers huge returns like twenty to thirty percent every month, yes unbelievable but truth, however that’s only in some cases and you need a lot of experience to be able to extract that amount of interest! There is no fixed centre for the trade so all the trade is done over telephone, internet and fax. The foreign exchange trade witnessed a massive boom only after online forex trading systems were introduced, internet and telephone has helped the trade grow from $70 billion a day in the 80s to around $1.5 trillion to $2 trillion today. The currency market is made up of around five thousand institutions most of which are international banks, central government banks, commercial companies as well as big brokers and all these are connected with each other and do business on the go through online forex trading system. The major centers for online forex trading are New York, Frankfurt, London, Paris, Tokyo, Hong Kong, Bombay among others, and all these centers also communicate and deal through online forex trading. The benefits of online forex trading are listed below: - Currency market never sleeps: online forex trading allows you to keep track and deal from anywhere at anytime. - Mini accounts: some websites offer mini accounts that allow you to get started with as less as $200. - No Commission! - Online forex trading is commission free, there’s no exchange or hidden fee either. Your broker earns from the spreads. - Instant: it’s instant unlike offline trade which may involve paperwork. The nature of the market is such that risk comes inherent and can not be separated but risk can be minimized if you are trading at the right point of time and the right point of time can be anytime only online forex trading allows you to be there at the right time as all other methods as explained above are slow and usually take up a lot of time in processing. Want to learn more about Online Forex Trading?, feel free to visit us at: Forex Trading Resources About the Author Want to learn more about Online Forex Trading?, feel free to visit us at: Forex Trading Resources
10 Minute Forex Wealth Builder Review - Can You Build Wealth in 10 Minutes a Day?
Dean Saunders 10 Minute Forex Wealth Builder is a very affordable eBook and video currency trading training course that is written for people who want to learn currency trading but who only have ten or fifteen minutes a day to spare for trading. But does it work and is it worth the money?
Your Currency Trading Training - Currency Trading Basics and Beyond
The course is written in an interesting, straight to the point manner. Your currency trading training begins with the currency trading basics - currency pairs, the bid and the ask, and information about the Forex market itself.
Dean Saunders then recommends a specific broker who offers both free charting software based on the Meta Trader 4 (or MT4) charting platform along with very narrow spreads between the bid and the ask.
Spreads vary from one broker to the next. Some can be three times as much as another. Using a broker who offers narrow spreads can have a huge impact on your bottom line.
He also recommends this specific broker because they allow you to trade micro lots. This is especially good news for the beginning trader because if you start trading micro lots you do not have to risk a lot of money while you’re learning to trade.
The importance of money management, risk calculation, and the trader’s mindset cannot be overstated and the 10 Minute Forex Wealth Builder spends ample time on all of those along with a realistic approach to helping you to determine your short and long term Forex trading goals.
This information alone is worth the price of the course, and that’s before Dean Saunders’s 10 Minute Forex Wealth Builder has even begun to teach you his trading techniques.
Learn Currency Trading with the 10 Minute Forex Wealth Builder’s Two Forex Trading Strategies
Now you’re in for a treat as he proceeds to teach you two different types of trading strategies - a breakout system and a swing trading system.
He then goes beyond currency trading basics as he shows you exactly what to look for in order to initiate your trades, where to enter, where to place your stops, and where to take your profits. The included videos show you live trade examples of what you’ve learned.
The 10 Minute Forex Wealth Builder is a very good place for you to begin to learn currency trading. And, as your currency trading training and experience grows, you will see how worthwhile this course truly is.
Next, to get a more in-depth 10 Minute Forex Wealth Builder Review along with reviews on more than a dozen other Forex trading courses and software, go to http://www.fxonlinetradingreport.com/
Your Currency Trading Training - Currency Trading Basics and Beyond
The course is written in an interesting, straight to the point manner. Your currency trading training begins with the currency trading basics - currency pairs, the bid and the ask, and information about the Forex market itself.
Dean Saunders then recommends a specific broker who offers both free charting software based on the Meta Trader 4 (or MT4) charting platform along with very narrow spreads between the bid and the ask.
Spreads vary from one broker to the next. Some can be three times as much as another. Using a broker who offers narrow spreads can have a huge impact on your bottom line.
He also recommends this specific broker because they allow you to trade micro lots. This is especially good news for the beginning trader because if you start trading micro lots you do not have to risk a lot of money while you’re learning to trade.
The importance of money management, risk calculation, and the trader’s mindset cannot be overstated and the 10 Minute Forex Wealth Builder spends ample time on all of those along with a realistic approach to helping you to determine your short and long term Forex trading goals.
This information alone is worth the price of the course, and that’s before Dean Saunders’s 10 Minute Forex Wealth Builder has even begun to teach you his trading techniques.
Learn Currency Trading with the 10 Minute Forex Wealth Builder’s Two Forex Trading Strategies
Now you’re in for a treat as he proceeds to teach you two different types of trading strategies - a breakout system and a swing trading system.
He then goes beyond currency trading basics as he shows you exactly what to look for in order to initiate your trades, where to enter, where to place your stops, and where to take your profits. The included videos show you live trade examples of what you’ve learned.
The 10 Minute Forex Wealth Builder is a very good place for you to begin to learn currency trading. And, as your currency trading training and experience grows, you will see how worthwhile this course truly is.
Next, to get a more in-depth 10 Minute Forex Wealth Builder Review along with reviews on more than a dozen other Forex trading courses and software, go to http://www.fxonlinetradingreport.com/
Automated Forex Trading
Many people are turning towards forex trading after losing their money in the recent stock market crash. In fact, forex trading is the best work from home opportunity. Forex trading can be done anywhere from the world if you have a computer and an internet connection. Forex trading is the answer to the today’s global recession.
Forex market is quite different from the stock market. The stock market is less liquid as compared to the forex market. Stocks were traditionally seen as long term investments, where people buy stocks or a group of stocks in mutual funds and wait for them to appreciate and build in their retirement accounts.
Forex markets are open 24 hours as compared to stock markets that have fixed trading hours. There is no way to buy or sell a certain stock that is only traded on one stock exchange when that exchange is closed. You can trade forex online from anywhere in the world 24 hours.
Forex trading is a highly liquid market. Most of the participants in the forex markets are either hedgers or speculators. Big institutions are looking for hedging their forex exchange risk whereas small traders are looking for speculating opportunities and willing to take on risk. Stocks are considered to be a long term investment.
In forex trading, you are only dealing with mostly 5 currencies: USD, GBP, CHF, EURO and JPY whereas in stock trading, you have to look for promising stocks among thousands of stocks listed on the stock markets.
The trading costs are also lower in forex where you only pay the bid/ask spread as compared to the stock trading where you have to pay a commission to your broker per trade. So, you can see yourself forex trading is a better opportunity than stock trading.
Then, dont forget the Stock Market Crash of 2008. People have lost 50-to-75% of their portfolios and retirement accounts, even with so called blue chip stocks - those having proven value over many years and many bought as the backbone of an investment portfolio.
Stock markets are going to take a few more years to recover. There is always either a bull market or a bear market prevailing in stocks. In forex, there is always a bull market. Since forex trading is done in currency pairs, if one currency goes down, the other currency goes up.
Over the years, forex markets have grown in size. Daily $3+ trillion are being traded in currencies all over the world. If you combine, all the stock exchanges in the world, they still can’t reach 40% of this figure. Currency markets have become so huge that they are beyond the capacity of any single agency or agent to control.
Now, most of the people are wondering how they can recoup their losses in the stock market crash and build their retirement accounts again
Learning forex trading is the answer. Many people want to learn forex trading but are afraid. If you can only spare one hour per day, you can learn forex trading in a month. Forex trading as a hobby has the potential of making you a fortune.
I have a blog where I give many risk free forex trading strategies. One method that I recommend only cost $149. You can try this method of 60 days risk free. It is the best method to trade forex on autopilot. Once you set your system, you only need to give 10 minutes daily to see how much money you have made overnight.
Forex market is quite different from the stock market. The stock market is less liquid as compared to the forex market. Stocks were traditionally seen as long term investments, where people buy stocks or a group of stocks in mutual funds and wait for them to appreciate and build in their retirement accounts.
Forex markets are open 24 hours as compared to stock markets that have fixed trading hours. There is no way to buy or sell a certain stock that is only traded on one stock exchange when that exchange is closed. You can trade forex online from anywhere in the world 24 hours.
Forex trading is a highly liquid market. Most of the participants in the forex markets are either hedgers or speculators. Big institutions are looking for hedging their forex exchange risk whereas small traders are looking for speculating opportunities and willing to take on risk. Stocks are considered to be a long term investment.
In forex trading, you are only dealing with mostly 5 currencies: USD, GBP, CHF, EURO and JPY whereas in stock trading, you have to look for promising stocks among thousands of stocks listed on the stock markets.
The trading costs are also lower in forex where you only pay the bid/ask spread as compared to the stock trading where you have to pay a commission to your broker per trade. So, you can see yourself forex trading is a better opportunity than stock trading.
Then, dont forget the Stock Market Crash of 2008. People have lost 50-to-75% of their portfolios and retirement accounts, even with so called blue chip stocks - those having proven value over many years and many bought as the backbone of an investment portfolio.
Stock markets are going to take a few more years to recover. There is always either a bull market or a bear market prevailing in stocks. In forex, there is always a bull market. Since forex trading is done in currency pairs, if one currency goes down, the other currency goes up.
Over the years, forex markets have grown in size. Daily $3+ trillion are being traded in currencies all over the world. If you combine, all the stock exchanges in the world, they still can’t reach 40% of this figure. Currency markets have become so huge that they are beyond the capacity of any single agency or agent to control.
Now, most of the people are wondering how they can recoup their losses in the stock market crash and build their retirement accounts again
Learning forex trading is the answer. Many people want to learn forex trading but are afraid. If you can only spare one hour per day, you can learn forex trading in a month. Forex trading as a hobby has the potential of making you a fortune.
I have a blog where I give many risk free forex trading strategies. One method that I recommend only cost $149. You can try this method of 60 days risk free. It is the best method to trade forex on autopilot. Once you set your system, you only need to give 10 minutes daily to see how much money you have made overnight.
The cost of technical trading rules in the Forex market: A utility-based evaluation
We compute the opportunity cost for rational risk averse agents of using technical trading rules in the foreign exchange rate market. We decompose this opportunity cost into two parts: (i) a cost related to the misallocation of wealth, which increases with the investor's level of risk aversion (allocational cost); and (ii) a cost related to the investor's erroneous belief regarding the sign of the expected excess return (expectational cost). We find that even for low levels of risk aversion the opportunity cost of using chartist rules tends to be prohibitively high.
iForex Forex Broker Review
About iForex Forex Broker
iForex is a British Virgin Islands based forex trading company, with a solid customer service and ok trading platform.
The platform of iForex is not a 5/5 software, as there are times that it experiences lags and slowdowns, but the same goes with all forex brokers. Admittedly, there are better designed platforms out there, but iForex’s is certainly far from being the worst. However, the simplicity of the company’s interface does backfire a bit when it comes to sophisticated traders, as some might not like its over-simplicity. The graphs and charts are not as detailed as other mature users might like.
The customer service of iForex is noted as one of the best in the market. This is not to say that there are no blunders in their part, but it is quite obvious that the staff of iForex do their best when it comes to serving their clients.
Basic Broker Details
Site
http://www.iforex.com/
Country of Origin
British Virgin Islands
Accepted Deposit Modes
Bank transfer, any major credit card
Withdrawal Method
Bank transfer
Leverage
Max 1:400
Regulation Body
None
Spread
3 pips (EUR or USD)
Minimum Account Requirement
$100
Pros of iForex Forex Broker
*Web and standalone platform available
*Good customer support
Cons of iForex Forex Broker
* No MetaTrader 4
iForex is a British Virgin Islands based forex trading company, with a solid customer service and ok trading platform.
The platform of iForex is not a 5/5 software, as there are times that it experiences lags and slowdowns, but the same goes with all forex brokers. Admittedly, there are better designed platforms out there, but iForex’s is certainly far from being the worst. However, the simplicity of the company’s interface does backfire a bit when it comes to sophisticated traders, as some might not like its over-simplicity. The graphs and charts are not as detailed as other mature users might like.
The customer service of iForex is noted as one of the best in the market. This is not to say that there are no blunders in their part, but it is quite obvious that the staff of iForex do their best when it comes to serving their clients.
Basic Broker Details
Site
http://www.iforex.com/
Country of Origin
British Virgin Islands
Accepted Deposit Modes
Bank transfer, any major credit card
Withdrawal Method
Bank transfer
Leverage
Max 1:400
Regulation Body
None
Spread
3 pips (EUR or USD)
Minimum Account Requirement
$100
Pros of iForex Forex Broker
*Web and standalone platform available
*Good customer support
Cons of iForex Forex Broker
* No MetaTrader 4
Forex Essentials in 15 Trades
Traders are constantly learning their craft. Those who do not share information, discuss tactics and review prior trades are doomed for failure. Global-View.com knows this. It is the leading destination for Forex traders looking to learn and discuss trading. With over 33,000 registered users from 125 countries, Global-View.com exposes its users to an incredible base of knowledge.
In this book, the authors dissect each of 15 chosen trades, using the material to expose some of the best (and worst) practices of a Forex trader. The book weaves a plethora of Global-View.com information into the detailed dissection. Each description will include how the trade was selected and why it was made, as well as money management and psychological aspects of the trade. Entertaining anecdotal stories are interspersed throughout each trade story.
In this book, the authors dissect each of 15 chosen trades, using the material to expose some of the best (and worst) practices of a Forex trader. The book weaves a plethora of Global-View.com information into the detailed dissection. Each description will include how the trade was selected and why it was made, as well as money management and psychological aspects of the trade. Entertaining anecdotal stories are interspersed throughout each trade story.
Currency Trading - Should you Really Invest? Useful Things to Know
Currency Trading - Should you Really Invest? Useful Things to Know
filed in Forex Market on May.05, 2009
Forex trading is all about putting your cash into other currencies, so you can gain the involve for the night, for occasion period or the nonconformity in trading money unabbreviated around. Forex trading does involve antithetic assets along with money, but because you are investing in contrary countries and drag other businesses that are dealing mastery other currencies the basis whereas the money you cause or lose will be based on the trading of finance. You can play forex online that can make money online.
Constant trading is done in the forex markets as time zones bequeath vary and the markets will open in one country while and is near closing. What happens sway one vend will have an end on the other countries forex markets, but it is not always number one or good, sometimes the margins of trading are near each contrastive. Many people are doing it as work from home.
A forex market will be present when two countries are involved control trading, and when money is traded seeing goods, services or a combination of these things. Currency is the cash that trades hands, from one to numerous. oftentimes times, a bank is response to be the origin of forex trading, as millions of dollars are traded daily. There is nearly two trillion dollars traded daily on the forex market. Should you get complicated in forex trading? If you are already involved in the stock market, you have some idea of what forex trading really is outright about.
The stock vend involves buying shares of a company, and you govern how that troop does, waiting for a more fitting return. credit the forex markets, you are purchasing items or products, or goods, and you are lucky money for them. As you obtain this, you are gaining or losing as the currency joust differs daily from country to sovereignty. To better prepare you for the forex markets you can nose out about trading and purchasing online using free ‘game’ like software.
You commit almanac on also initiate an account. Entering information about what you are interested in further what you inclination to do. The ‘game’ will allow you to effect purchases and trades, involving unalike currencies, so you blame then deal with number one hand what a gain or loss will be revel in. As you stand on keep from this fake invoice you will see first hand how to trigger decisions based on what you know, which means you will have to read about the market changes or you will have to take a brokers information at value and theatre from qualified.
filed in Forex Market on May.05, 2009
Forex trading is all about putting your cash into other currencies, so you can gain the involve for the night, for occasion period or the nonconformity in trading money unabbreviated around. Forex trading does involve antithetic assets along with money, but because you are investing in contrary countries and drag other businesses that are dealing mastery other currencies the basis whereas the money you cause or lose will be based on the trading of finance. You can play forex online that can make money online.
Constant trading is done in the forex markets as time zones bequeath vary and the markets will open in one country while and is near closing. What happens sway one vend will have an end on the other countries forex markets, but it is not always number one or good, sometimes the margins of trading are near each contrastive. Many people are doing it as work from home.
A forex market will be present when two countries are involved control trading, and when money is traded seeing goods, services or a combination of these things. Currency is the cash that trades hands, from one to numerous. oftentimes times, a bank is response to be the origin of forex trading, as millions of dollars are traded daily. There is nearly two trillion dollars traded daily on the forex market. Should you get complicated in forex trading? If you are already involved in the stock market, you have some idea of what forex trading really is outright about.
The stock vend involves buying shares of a company, and you govern how that troop does, waiting for a more fitting return. credit the forex markets, you are purchasing items or products, or goods, and you are lucky money for them. As you obtain this, you are gaining or losing as the currency joust differs daily from country to sovereignty. To better prepare you for the forex markets you can nose out about trading and purchasing online using free ‘game’ like software.
You commit almanac on also initiate an account. Entering information about what you are interested in further what you inclination to do. The ‘game’ will allow you to effect purchases and trades, involving unalike currencies, so you blame then deal with number one hand what a gain or loss will be revel in. As you stand on keep from this fake invoice you will see first hand how to trigger decisions based on what you know, which means you will have to read about the market changes or you will have to take a brokers information at value and theatre from qualified.
Central bank FOREX interventions assessed using realized moments
This paper assesses the impact of G3 official central bank interventions on daily realized moments of DEM/USD exchange rate returns obtained from intraday data, 1989–2001. Event studies of the realized moments for the intervention day, the days preceding and following the intervention illustrate the shape of this impact. Rolling regressions results for an AR(FI)MA model for realized moments are used to measure the impact and its significance. The analysis confirms previous empirical findings of a temporary increase of volatility after a coordinated central bank intervention. It highlights new findings on the timing and the temporary nature of the impact of coordinated interventions on exchange rate volatility and on cross-moments between foreign exchange markets.
Learn The Advantages of Forex Trading
Tags : ForexCategories : Forex
by Bart Icles
With a daily volume of more than 3.2 million U.S. dollars, the foreign exchange is indisputably the most liquid financial market in the world. Simply put, it is the trading of almost all the currencies in the world. Since forex trading involves selling and buying different currencies from all over the world and profiting from the differences of the current exchange rates, it can yield high profits. This is a very good advantage especially if you’re looking to earn big, however, the disadvantage in playing in the forex market is that is can also be very risky. This is because forex trading is speculative in nature, that is, a lot of its activities are largely based on guided speculations, and there is only a low percentage of market activity that represent companies’ and governments’ fundamental currency conversion needs.
Forex trading is directly taking place between the two entities who are necessary participants to make a trade possible. It can take place over the phone or over the electronic networks all over the globe. The main forex trading centers are New York in the United States, Tokyo in Japan, Sydney in Australia, Frankfurt in Germany, and London in the United Kingdom. Having these centers in place makes sure that the forex market is trading 24 hours.
Gauging whether putting your stake in the forex market is worth it or not can be done when one is given enough education on the advantages and disadvantages that the forex market entails. Some of its advantages are: 1. The liquidity of the forex market is like no other. This ensures price stability and narrow “spreads,” that is, the difference between the asking rate and the bid. 2. It showcases a high leveraging capacity which enables one to have a position worth up to a hundred times more than one’s margin deposit. 3. Trading occurs 24 hours, from Sunday evening (8:00 PM GMT) to Friday evening (10:00 pm GMT). This gives one the much-needed opportunity to be able to do something about bad news affecting the forex markets. 4. There is profit potential even in falling markets. Since forex trading is very dynamic in nature, there are a lot of opportunities to earn profits. Say for example the USD is stronger against the EUR and vice versa, you can sell EUR and you can buy it back later at a lower price. 5. Forex trading occurs without parties having commissions. DISADVANTAGE: 1. Since it is a very dynamic market, it can present a high risk if one does not watch it too closely.
Having a forex trading system shouldn’t be complicated. Once a system works, one should keep using it.
About the Author:
Forex education starts with a desire to learn and a drive to become a great trader. A forex trading education takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
by Bart Icles
With a daily volume of more than 3.2 million U.S. dollars, the foreign exchange is indisputably the most liquid financial market in the world. Simply put, it is the trading of almost all the currencies in the world. Since forex trading involves selling and buying different currencies from all over the world and profiting from the differences of the current exchange rates, it can yield high profits. This is a very good advantage especially if you’re looking to earn big, however, the disadvantage in playing in the forex market is that is can also be very risky. This is because forex trading is speculative in nature, that is, a lot of its activities are largely based on guided speculations, and there is only a low percentage of market activity that represent companies’ and governments’ fundamental currency conversion needs.
Forex trading is directly taking place between the two entities who are necessary participants to make a trade possible. It can take place over the phone or over the electronic networks all over the globe. The main forex trading centers are New York in the United States, Tokyo in Japan, Sydney in Australia, Frankfurt in Germany, and London in the United Kingdom. Having these centers in place makes sure that the forex market is trading 24 hours.
Gauging whether putting your stake in the forex market is worth it or not can be done when one is given enough education on the advantages and disadvantages that the forex market entails. Some of its advantages are: 1. The liquidity of the forex market is like no other. This ensures price stability and narrow “spreads,” that is, the difference between the asking rate and the bid. 2. It showcases a high leveraging capacity which enables one to have a position worth up to a hundred times more than one’s margin deposit. 3. Trading occurs 24 hours, from Sunday evening (8:00 PM GMT) to Friday evening (10:00 pm GMT). This gives one the much-needed opportunity to be able to do something about bad news affecting the forex markets. 4. There is profit potential even in falling markets. Since forex trading is very dynamic in nature, there are a lot of opportunities to earn profits. Say for example the USD is stronger against the EUR and vice versa, you can sell EUR and you can buy it back later at a lower price. 5. Forex trading occurs without parties having commissions. DISADVANTAGE: 1. Since it is a very dynamic market, it can present a high risk if one does not watch it too closely.
Having a forex trading system shouldn’t be complicated. Once a system works, one should keep using it.
About the Author:
Forex education starts with a desire to learn and a drive to become a great trader. A forex trading education takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.
What prompts Japan to intervene in the Forex market? A new approach to a reaction function
This paper estimates and analyzes the reaction function of Japanese intervention in the foreign exchange (Forex) markets, using daily Japanese intervention data from April 1, 1991 to December 31, 2002. A theoretical friction model is adopted to describe the intervention as cost-minimizing behavior. An ordered probit model, consistent with the theoretical model, is employed to estimate authorities' reaction function. A noise-to-signal ratio is applied in selecting the optimal cutoff point in estimated ordered probit function. Major findings are as follows: (1) A regime change in June 1995 from small-scale frequent interventions to large-scale infrequent interventions is detected; (2) the optimum cutoff is higher in the first half than the second half.
WORLD FOREX: Dollar Bounces Back Vs Euro From One-Month Low
NEW YORK (Dow Jones)--The dollar recovered all its intraday losses against the euro Tuesday, bouncing back from a one-month low, as U.S. stocks declined.
Dropping stocks usually support the U.S. currency as traders reverse riskier bets back into the major funding currency of those positions.
The euro recently fell to an intraday low of $1.3318, after earlier hitting its highest level in one month, $1.3439.
Improving economic fundamentals have been encouraging traders to take on more risk, but caution has prevailed in afternoon New York trade, marked by relatively thinner markets after the exit of European desks.
Currency traders are taking profits on intraday moves ahead of the European Central Bank meeting on Thursday, the same day the U.S. government is expected to release the results of the banking stress tests. In addition, on Friday, the latest U.S. payrolls report will be released - and economists aren't expecting any positive news.
Tuesday afternoon in New York, the euro was at $1.3339, from $1.3405 late Monday, while the dollar was at Y98.87, from Y98.93. The euro was at Y131.86, from Y132.60. The U.K. pound was at $1.5085, from $1.5005 late Monday, while the dollar was at CHF1.1315, from CHF1.1275.
Nevertheless, there were signs Tuesday of normalization in the market. The euro, while down on the day, remains inside its recent range against the dollar, in which it has been mounting a comeback over the last couple weeks.
Libor moved below 1% Tuesday for the first time. Federal Reserve Chairman Ben Bernanke said U.S. economic growth is likely to resume later this year and said the weakened housing market appears to be reaching a bottom. Moreover, a report on activity in the U.S. service sector shrank less steeply than expected in April.
Along with the euro's earlier gains, as traders pushed forward riskier positions, the U.K. pound hit a four-month high of $1.5161 and the Australian dollar hit a seven-month high of $0.7479.
-By Riva Froymovich, Dow Jones Newswires; 201 938-5063; riva.froymovich@dowjones.com
Dropping stocks usually support the U.S. currency as traders reverse riskier bets back into the major funding currency of those positions.
The euro recently fell to an intraday low of $1.3318, after earlier hitting its highest level in one month, $1.3439.
Improving economic fundamentals have been encouraging traders to take on more risk, but caution has prevailed in afternoon New York trade, marked by relatively thinner markets after the exit of European desks.
Currency traders are taking profits on intraday moves ahead of the European Central Bank meeting on Thursday, the same day the U.S. government is expected to release the results of the banking stress tests. In addition, on Friday, the latest U.S. payrolls report will be released - and economists aren't expecting any positive news.
Tuesday afternoon in New York, the euro was at $1.3339, from $1.3405 late Monday, while the dollar was at Y98.87, from Y98.93. The euro was at Y131.86, from Y132.60. The U.K. pound was at $1.5085, from $1.5005 late Monday, while the dollar was at CHF1.1315, from CHF1.1275.
Nevertheless, there were signs Tuesday of normalization in the market. The euro, while down on the day, remains inside its recent range against the dollar, in which it has been mounting a comeback over the last couple weeks.
Libor moved below 1% Tuesday for the first time. Federal Reserve Chairman Ben Bernanke said U.S. economic growth is likely to resume later this year and said the weakened housing market appears to be reaching a bottom. Moreover, a report on activity in the U.S. service sector shrank less steeply than expected in April.
Along with the euro's earlier gains, as traders pushed forward riskier positions, the U.K. pound hit a four-month high of $1.5161 and the Australian dollar hit a seven-month high of $0.7479.
-By Riva Froymovich, Dow Jones Newswires; 201 938-5063; riva.froymovich@dowjones.com
Forex Trading - Japanese Candlesticks
You may be asking yourself, "If I can already use bar charts to view prices, then why do I need another type of chart?" The answer to this question may not seem obvious, but after going through the following candlestick chart explanations and examples, you will surely see value in the different perspective candlesticks bring to the table. In my opinion, they are much more visually appealing, and convey the price information in a quicker, easier manner. Candlestick chart is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval. It is most often used in technical analysis of equity and currency price... Full Story
Short-Term Forex Technical Outlook: EUR/GBP (Update)
The European Central Bank is widely expected to lower the benchmark interest rate by another 25bp to a record-low of 1.00% later this week, and as the Governing Council attempts to put a floor on the overnight lending rate, long-term expectations for higher borrowing costs could boost the appeal of the single-currency however, as policymakers fail to meet on common ground, the lack of decisive action could weigh on the exchange rate as the region faces its worst economic downturn in over half a century.
Currency Pair: EUR/GBPChart: 60 Min ChartsShort-Term Bias: Flat
Analysis Update
The EUR/GBP pushed higher during the overnight, but failed to break above the 120 SMA, and the pair may continue to hold a tight range over the remainder of the session as investors weigh the outlook for future policy. At the same time, as market participants expect the ECB to lower borrowing costs further this month and anticipate the Governing Council to adopt unconventional measures to stimulate the ailing economy, dovish commentary following the rate decision is likely to weigh on the exchange rate as the region faces its worst economic downturn in over half a century, and we may see the euro-pound retrace the advance from December if ECB President Trichet fails to put a floor on the interest rate. As a result, we are likely to see increased volatility for the pair on Thursday as the ECB and the BoE are scheduled to hold their policy meeting, and commentaries following the decisions are likely to move the markets as the Euro-Zone and the U.K. face their worst economic downturn since World War II. Nevertheless, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The European Central Bank is widely expected to lower the benchmark interest rate by another 25bp to a record-low of 1.00% later this week, and as the Governing Council attempts to put a floor on the overnight lending rate, long-term expectations for higher borrowing costs could boost the appeal of the single-currency however, as policymakers fail to meet on common ground, the lack of decisive action could weigh on the exchange rate as the region faces its worst economic downturn in over half a century. After reaching a low of 0.8233 on 11/28, the EUR/GBP surged to a high of 0.9805 in December as the Bank of England slashed borrowing costs at a rapid pace in an effort to soften the landing of the economy, and as BoE Governor Mervyn King is expected to hold the interest rate at the record-low, the lack of momentum to push back above 0.9480-90 (21.4% Fib) paired with expectations for further easing by the ECB should continue to lead the pair to retrace the advance from November. Over the next few hours of trading, we are likely to see the euro-pound attempt to push higher to retrace to sell-off from the previous week, and may work its way towards 0.9000 to fill-in the gap from the 120 SMA however, the pair is likely to face increased selling pressures over the week, and may break below its current range as the ECB is anticipated to adopt unconventional measures to shore up the economy as the interest falls close to zero. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
Currency Pair: EUR/GBPChart: 60 Min ChartsShort-Term Bias: Flat
Analysis Update
The EUR/GBP pushed higher during the overnight, but failed to break above the 120 SMA, and the pair may continue to hold a tight range over the remainder of the session as investors weigh the outlook for future policy. At the same time, as market participants expect the ECB to lower borrowing costs further this month and anticipate the Governing Council to adopt unconventional measures to stimulate the ailing economy, dovish commentary following the rate decision is likely to weigh on the exchange rate as the region faces its worst economic downturn in over half a century, and we may see the euro-pound retrace the advance from December if ECB President Trichet fails to put a floor on the interest rate. As a result, we are likely to see increased volatility for the pair on Thursday as the ECB and the BoE are scheduled to hold their policy meeting, and commentaries following the decisions are likely to move the markets as the Euro-Zone and the U.K. face their worst economic downturn since World War II. Nevertheless, the fundamental event risks scheduled for the next 24 hours may call for a change in our outlook.
Analysis
The European Central Bank is widely expected to lower the benchmark interest rate by another 25bp to a record-low of 1.00% later this week, and as the Governing Council attempts to put a floor on the overnight lending rate, long-term expectations for higher borrowing costs could boost the appeal of the single-currency however, as policymakers fail to meet on common ground, the lack of decisive action could weigh on the exchange rate as the region faces its worst economic downturn in over half a century. After reaching a low of 0.8233 on 11/28, the EUR/GBP surged to a high of 0.9805 in December as the Bank of England slashed borrowing costs at a rapid pace in an effort to soften the landing of the economy, and as BoE Governor Mervyn King is expected to hold the interest rate at the record-low, the lack of momentum to push back above 0.9480-90 (21.4% Fib) paired with expectations for further easing by the ECB should continue to lead the pair to retrace the advance from November. Over the next few hours of trading, we are likely to see the euro-pound attempt to push higher to retrace to sell-off from the previous week, and may work its way towards 0.9000 to fill-in the gap from the 120 SMA however, the pair is likely to face increased selling pressures over the week, and may break below its current range as the ECB is anticipated to adopt unconventional measures to shore up the economy as the interest falls close to zero. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
Forex news: euro’s weakening vs dollar, yen and pound, but it’s gaining vs franc
Forex news: euro’s weakening vs dollar, yen and pound, but it’s gaining vs franc
May 5, 2009 - 1:25pm author: kara deniz Markets News
During early deals on Tuesday, the euro showed weakness against its UK counterpart on speculation the European central bank will cut interest rate this week to counter a deepening recession. The 16-nation currency also lost ground versus its US and Japanese counterparts. On the other hand it reached an 11-day high against the Swiss franc.
Thereby, at about 2:45 am ET Tuesday, the euro slipped to near a 2-week low of 0.8862 against the sterling, with 0.881 seen as the near term resistance level. The pair closed Monday’s North American trading at the level of 0.8929.
Euro, that closed yesterday’s New York session at the level of 1.3408 against US dollar, pared its gains falling from a 1-month high of 1.3419. Thus by about 2:55 am ET on Tuesday EUR/USD pair fell to 1.3332 point.
The euro also lost ground against the yen during Tuesday’s early trading in Asia and by 2:50 am ET declined as low as 131.78. The next downside target level for the pair was seen around 130.3. Late Monday in New York EUR/JPY pair was quoted as much as 132.48.
Against the Swiss franc the euro started recovering by about 12:20 am ET. Thus euro climbed from 1.5075 to 1.5145 by 2:40 am ET, setting an 11-day high for the pair. The next upside target was seen around 1.52 point. The EUR/CHF pair closed yesterday's session at 1.5103 level.
May 5, 2009 - 1:25pm author: kara deniz Markets News
During early deals on Tuesday, the euro showed weakness against its UK counterpart on speculation the European central bank will cut interest rate this week to counter a deepening recession. The 16-nation currency also lost ground versus its US and Japanese counterparts. On the other hand it reached an 11-day high against the Swiss franc.
Thereby, at about 2:45 am ET Tuesday, the euro slipped to near a 2-week low of 0.8862 against the sterling, with 0.881 seen as the near term resistance level. The pair closed Monday’s North American trading at the level of 0.8929.
Euro, that closed yesterday’s New York session at the level of 1.3408 against US dollar, pared its gains falling from a 1-month high of 1.3419. Thus by about 2:55 am ET on Tuesday EUR/USD pair fell to 1.3332 point.
The euro also lost ground against the yen during Tuesday’s early trading in Asia and by 2:50 am ET declined as low as 131.78. The next downside target level for the pair was seen around 130.3. Late Monday in New York EUR/JPY pair was quoted as much as 132.48.
Against the Swiss franc the euro started recovering by about 12:20 am ET. Thus euro climbed from 1.5075 to 1.5145 by 2:40 am ET, setting an 11-day high for the pair. The next upside target was seen around 1.52 point. The EUR/CHF pair closed yesterday's session at 1.5103 level.
Important Tips in Finding Your Forex Broker in Switzerland
Of course the first thing you need to know when it comes to finding your Swiss broker is your method of communication. Would you be able to speak to each other in English? This is very important so you can make discussions on how you can maximize your forex profits. Another thing you may want to consider is the background of the forex broker. It may be a good idea to consider those who have already previously experienced dealing with foreign individuals.
Then of course, you should also look into the possibility of getting forex brokers that have tie ups with Swiss banks. It would be best to consider getting Swiss forex brokers that are duly regulated by their local banks so that they can give you competitive and updated rates among these financial institutions. This would also help you leverage a more profitable venture when you start to look into the possibility of growing your forex profits in relation with its deposit value in a Swiss bank.
For the most recent forex news alerts & updates, there’s no better place to visit but Freshpips.
Remember to stay tuned on who are the best brokers you can count on. Know them through Forex Broker Reviews
Then of course, you should also look into the possibility of getting forex brokers that have tie ups with Swiss banks. It would be best to consider getting Swiss forex brokers that are duly regulated by their local banks so that they can give you competitive and updated rates among these financial institutions. This would also help you leverage a more profitable venture when you start to look into the possibility of growing your forex profits in relation with its deposit value in a Swiss bank.
For the most recent forex news alerts & updates, there’s no better place to visit but Freshpips.
Remember to stay tuned on who are the best brokers you can count on. Know them through Forex Broker Reviews
The History of Forex Trading
The History of Forex Trading
The origin of Forex trading traces its history to centuries ago. Different currencies and the need to exchange them had existed since the Babylonians. They are credited with the first use of paper notes and receipts. Speculation hardly ever happened, and certainly the enormous speculative activity in the market today would have been frowned upon.In those days, the value of goods were expressed in terms of other goods(also called as the Barter System). The obvious limitations of such a system encouraged establishing more generally accepted mediums of exchange. It was important that a common base of value could be established. In some economies, items such as teeth, feathers even stones served this purpose, but soon various metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value. Trade was carried among people of Africa, Asia etc through this system.Coins were initially minted from the preferred metal and in stable political regimes, the introduction of a paper form of governmental I.O.U. during the Middle Ages also gained acceptance. This type of I.O.U. was introduced more successfully through force than through persuasion and is now the basis of today's modern currencies.Before the First World war, most Central banks supported their currencies with convertibility to gold. However, the gold exchange standard had its weaknesses of boom-bust patterns. As an economy strengthened, it would import a great deal from out of the country until it ran down its gold reserves required to support its money; as a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities had hit bottom, appearing attractive to other nations, who would sprint into buying fury that injected the economy with gold until it increased its money supply, drive down interest rates and restore wealth into the economy.. However, for this type of gold exchange, there was not necessarily a Centrals bank need for full coverage of the government's currency reserves. This did not occur very often, however when a group mindset fostered this disastrous notion of converting back to gold in mass, panic resulted in so-called "Run on banks " The combination of a greater supply of paper money without the gold to cover led to devastating inflation and resulting political instability. The Great Depression and the removal of the gold standard in 1931 created a serious lull in Forex market activity. From 1931 until 1973, the Forex market went through a series of changes. These changes greatly affected the global economies at the time and speculation in the Forex markets during these times was little.In order to protect local national interests, increased foreign exchange controls were introduced to prevent market forces from punishing monetary irresponsibility.Near the end of World War II, the Bretton Woods agreement was reached on the initiative of the USA in July 1944. The conference held in Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US Dollar. International institutions such as the IMF, The World Bank and GATT were created in the same period as the emerging victors of WWII searched for a way to avoid the destabilizing monetary crises leading to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that reinstated The Gold Standard partly, fixing the USD at $35.00 per ounce of Gold and fixing the other main currencies to the dollar, initially intended to be on a permanent basis.The Bretton Woods system came under increasing pressure as national economies moved in different directions during the 1960's. A number of realignments held the system alive for a long time but eventually Bretton Woods collapsed in the early 1970's following president Nixon's suspension of the gold convertibility in August 1971. The dollar was not any longer suited as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.The last few decades have seen foreign exchange trading develop into the world's largest global market. 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.The European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. The quest continued in Europe for currency stability with the 1991 signing of The Maastricht treaty. This was to not only fix exchange rates but also actually replace many of them with the Euro in 2002. London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance.In Asia, the lack of sustainability of fixed foreign exchange rates has 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 also looking very vulnerable.While commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have discovered a new playground. The Forex exchange market initially worked under the central banks and the governmental institutions but later on it accommodated the various institutions, at present it also includes the dot com booms and the world wide web. The size of the Forex market now dwarfs any other investment market. The foreign exchange market is the largest financial market in the world. Approximately 1.9 trillion dollars are traded daily in the foreign exchange market. It is estimated that more than USD 1,200 Billion are traded every day. It can be said easily that Forex market is a lucrative opportunity for the modern day savvy investor.
The origin of Forex trading traces its history to centuries ago. Different currencies and the need to exchange them had existed since the Babylonians. They are credited with the first use of paper notes and receipts. Speculation hardly ever happened, and certainly the enormous speculative activity in the market today would have been frowned upon.In those days, the value of goods were expressed in terms of other goods(also called as the Barter System). The obvious limitations of such a system encouraged establishing more generally accepted mediums of exchange. It was important that a common base of value could be established. In some economies, items such as teeth, feathers even stones served this purpose, but soon various metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value. Trade was carried among people of Africa, Asia etc through this system.Coins were initially minted from the preferred metal and in stable political regimes, the introduction of a paper form of governmental I.O.U. during the Middle Ages also gained acceptance. This type of I.O.U. was introduced more successfully through force than through persuasion and is now the basis of today's modern currencies.Before the First World war, most Central banks supported their currencies with convertibility to gold. However, the gold exchange standard had its weaknesses of boom-bust patterns. As an economy strengthened, it would import a great deal from out of the country until it ran down its gold reserves required to support its money; as a result, the money supply would diminish, interest rates escalate and economic activity slowed to the point of recession. Ultimately, prices of commodities had hit bottom, appearing attractive to other nations, who would sprint into buying fury that injected the economy with gold until it increased its money supply, drive down interest rates and restore wealth into the economy.. However, for this type of gold exchange, there was not necessarily a Centrals bank need for full coverage of the government's currency reserves. This did not occur very often, however when a group mindset fostered this disastrous notion of converting back to gold in mass, panic resulted in so-called "Run on banks " The combination of a greater supply of paper money without the gold to cover led to devastating inflation and resulting political instability. The Great Depression and the removal of the gold standard in 1931 created a serious lull in Forex market activity. From 1931 until 1973, the Forex market went through a series of changes. These changes greatly affected the global economies at the time and speculation in the Forex markets during these times was little.In order to protect local national interests, increased foreign exchange controls were introduced to prevent market forces from punishing monetary irresponsibility.Near the end of World War II, the Bretton Woods agreement was reached on the initiative of the USA in July 1944. The conference held in Bretton Woods, New Hampshire rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US Dollar. International institutions such as the IMF, The World Bank and GATT were created in the same period as the emerging victors of WWII searched for a way to avoid the destabilizing monetary crises leading to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that reinstated The Gold Standard partly, fixing the USD at $35.00 per ounce of Gold and fixing the other main currencies to the dollar, initially intended to be on a permanent basis.The Bretton Woods system came under increasing pressure as national economies moved in different directions during the 1960's. A number of realignments held the system alive for a long time but eventually Bretton Woods collapsed in the early 1970's following president Nixon's suspension of the gold convertibility in August 1971. The dollar was not any longer suited as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.The last few decades have seen foreign exchange trading develop into the world's largest global market. 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.The European Economic Community introduced a new system of fixed exchange rates in 1979, the European Monetary System. The quest continued in Europe for currency stability with the 1991 signing of The Maastricht treaty. This was to not only fix exchange rates but also actually replace many of them with the Euro in 2002. London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance.In Asia, the lack of sustainability of fixed foreign exchange rates has 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 also looking very vulnerable.While commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have discovered a new playground. The Forex exchange market initially worked under the central banks and the governmental institutions but later on it accommodated the various institutions, at present it also includes the dot com booms and the world wide web. The size of the Forex market now dwarfs any other investment market. The foreign exchange market is the largest financial market in the world. Approximately 1.9 trillion dollars are traded daily in the foreign exchange market. It is estimated that more than USD 1,200 Billion are traded every day. It can be said easily that Forex market is a lucrative opportunity for the modern day savvy investor.
FOREX-Euro/dlr hits 1-mth high, boosted by risk demand
LONDON, May 5 (Reuters) - The euro hit a one-month high against the dollar on Tuesday as higher global shares added to the view that the worst of the economic downturn may have passed, spurring more demand for currencies perceived to be higher risk.
A 3 percent climb in UK share markets .FTSE helped to further the ongoing improvement in risk demand, pushing sterling to a four-month high against the dollar.
The euro rose as high as $1.3439 on electronic trading platform EBS, its highest since early April, although anticipated results of U.S. bank stress tests later this week capped a climb higher, traders said.
Analysts said data this week showing improving manufacturing in Europe, China and India, and an unexpected rise in U.S. existing homes sales added to the view that the global economy may have past the worst after months of intense weakness. Continued...
A 3 percent climb in UK share markets .FTSE helped to further the ongoing improvement in risk demand, pushing sterling to a four-month high against the dollar.
The euro rose as high as $1.3439 on electronic trading platform EBS, its highest since early April, although anticipated results of U.S. bank stress tests later this week capped a climb higher, traders said.
Analysts said data this week showing improving manufacturing in Europe, China and India, and an unexpected rise in U.S. existing homes sales added to the view that the global economy may have past the worst after months of intense weakness. Continued...
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