Two American economists recently conducted a computer simulation to determine how the role of the US Dollar as the world's reserve currency will evolve over the next decade. Their hypothesis- that the Dollar's preeminence would be maintained- was contradicted by the simulation leading them to conclude that the Euro will overtake the Dollar within the next 10-15 years. This may be hard for many analysts to stomach, since the Dollar's share in global currency reserves is 66%, compared to the Euro's 25%. In addition, the Dollar has held its title for nearly 150 years, and it's difficult to fathom its being replaced.
However, two factors have emerged within the last 10 years, lending support to the argument. First, the US twin deficits have exploded; the current account deficit approximates $800 Billion and the national debt is estimated at $9.4 Trillion. Second, prior to the inception of the Euro, there didn't exist a credible alternative to the Dollar. The Deutsch Mark and Japanese Yen initially seemed like potential candidates, but the German currency was folded into the Euro, and the Japanese economy has soured and taken over by deflation. Then there are peripheral factors, like US monetary policy, which is facilitating inflation and eroding the Dollar. There are also signs that a neo-imperialist foreign policy has overstretched the US, and foreign Central Banks are becoming nervous. The Financial Times reports:
Many developing countries will find it harder to maintain their dollar pegs. They may be reluctant to drop them now but there will come a point when the rise in inflationary pressures becomes unbearable.
Read More: This crisis could bring the euro centre-stage
Friday, March 28, 2008
Euro Could Replace Dollar
Return of the Carry Trade?
Return of the Carry Trade?
After the Fed cut its benchmark lending rate by 75 basis points last week, the Dollar immediately rallied 2.5% against the Japanese Yen, marking its highest daily rise in nine years. Some analysts are at a loss to explain this phenomenon, since a narrower interest rate differential should have produced the opposite effect. Perhaps, the answer can be found in the carry trade, whereby investors sell Yen in favor of higher-yielding currencies. Support for the carry trade typically moves inversely with volatility. For example, when risk aversion rises due to economic uncertainty, investors typically unwind their carry trade positions. With the Fed rate cut last week, however, risk aversion actually fell, and the S&P 500 Index surged. By no coincidence, the Yen fell. Reuters reports:
As U.S. stocks rallied, with investors willing to take on more risk, the dollar recouped some of Monday's sharp losses versus the low-yielding yen.
Read More: Dollar posts biggest gain vs yen in nine years
Japan (Also) Mulls Intervention
Yesterday, the Forex Blog reported that the risk of intervention in forex markets is growing, in order to prop up an ailing Dollar. The focus of the post was on the Euro, which is hovering below the record high of $1.60 reached last week. With this post, we wish to extend coverage of the potential intervention to include Japan. In some respects, Japan is actually a more likely candidate for intervention, since it has a history of actively depressing its currency. Most recently, in 2004, it accumulated $350 Billion in Dollar-denominated assets in a large scale effort to keep the Yen from rising out of control.
Japan's consumers are notoriously tightfisted, and consequently, its economy is dependent on the export sector to drive growth. Unfortunately, the more expensive Yen is making this sector less competitive. In addition, Japan's new Prime Minister has yet to lay out an economic plan, and the stock market is foundering. A number of creative solutions are being mulled, including one to buy American mortgage-backed securities, in order to head off the international opposition to intervention. The New York Times reports:
That might win Washington’s approval by helping to ease the credit squeeze in the United States, but given such securities’ role in precipitating the crisis of the last several months, it might well set off cries of dismay here.
Read More: As Dollar Keeps Falling, Talk of a Move by Japan
The Rising Threat of Intervention
The Rising Threat of Intervention
Last week, the Euro retreated from the record high of $1.60 that it achieved earlier in the week. Policymakers are still concerned, however, and are perhaps using this lull to come up with a plan of action should the Dollar resume its slide. In fact, the consensus among analysts is that coordinated intervention is likely if the Euro crosses a certain threshold- perhaps $1.65. In order to be successful, the intervention would need to involve the Federal Reserve Bank and the European Central Bank principally, as well as the peripheral participation of the Central Banks of Switzerland, Japan and England. The situation is complicated by the monetary policy of the ECB, the tightness of which is causing the interest rate differential with the US to widen dramatically. Already, volatility levels in forex markets are slowly climbing, suggesting that investors are bracing themselves for a big move. The Guardian UK reports:
ECB Executive Board member Lorenzo Bini Smaghi said in a speech on Tuesday markets sometimes overshot, with possible negative implications for the world economy. Since his speech, the dollar has strengthened by almost 2 cents against the euro.
Read More: Euro intervention edging nearer, but still distant
Brazil to Alter Forex Rules
Brazil to Alter Forex Rules
In a thinly disguised effort to stem the appreciation of its currency, Brazil has announced sweeping changes to its rules governing forex. Rather than revert to outright intervention in the forex markets, however, Brazil will permit businesses to hold more foreign currency as part of their reserves. In this way, the Central Bank won't have to purchase Dollar-denominated assets directly. Instead, it is hoping that the natural attraction of US and other Western capital markets will be enough to drive private Brazilian companies to increase their holdings abroad. It is intended that this will act against the upward pressure on the Real, which rose 20% against the Dollar in 2007, and 5% already in 2008, and now threatens to drag down the economy. Dow Jones reports:
The strong real has made some Brazilian manufactured exports such as textiles and footwear less competitive. Meanwhile, it also has introduced a boom in imports resulting in a narrowing of the country's trade surplus.
Read More: Brazil Council To Meet Wed To Change Forex Rules
USD: 0 for 3
In a recent commentary piece, the Market Oracle used the analogy of baseball to outline why this will be an "off year" for the Dollar, listing three reasons to support its claim. Consumer spending was listed first because it represents the largest component of US GDP. Since much consumption is financed through borrowing and since the credit crunch has forced banks to rein in lending, the Oracle reasoned that consumer spending will be especially hard hit. Next, there is the worsening employment picture. As its moniker implies, the "jobless recovery" that has characterized the US economy over the last few years did not add many jobs, and due to the economic downturn, jobs are now being shed. Finally, the Market Oracle has identified the Federal Reserve as a primary contributor to the decline of the Dollar. While the Fed is trying to shore up the economy, it is simultaneously enabling inflation. Thus, even if the battle is won and recession is averted, the Fed may still find that it has lost the war- on prices.
Read More: Three Strikes Against the U.S. Dollar
Fed Rate Cut has Small Effect
Fed Rate Cut has Small Effect
On Tuesday, the Federal Reserve Bank lowered its benchmark federal funds rate by 75 basis points, its sharpest cut in decades. The markets initially reacted positively to the move, which was intended to shore up sagging confidence in the economy and financial markets. But the next day, most of the gains had been lost, as investors feared both that the recession has already begun and that the Fed is giving up on fighting inflation to battle the lost cause of the economy. In fact, as many analysts feel a recession is a foregone conclusion, the focus may soon turn to inflation, especially given exploding commodity prices and the sagging dollar. The New York Times reports:
"I'm disappointed," said an economist at Citigroup. "It's not as if we're trying to gauge policy priorities on a sunny day. I'd like to know how you're going to get inflation in an environment with suffocating financial restraint and pervasive slowing in demand."
Read More: Fed Trims Rates Sharply, Sending the Markets Up
Tuesday, March 25, 2008
Monday, March 17, 2008
...:::| Forex Money Management | Forex articles |:::...
Put two rookie traders in front of the screen, provide them with your best high-probability set-up, and for good measure, have each one take the opposite side of the trade. More than likely, both will wind up losing money. However, if you take two pros and have them trade in the opposite direction of each other, quite frequently both traders will wind up making money - despite the seeming contradiction of the premise. What's the difference? What is the most important factor separating the seasoned traders from the amateurs? The answer is money management.
Like dieting and working out, money management is something that most traders pay lip service to, but few practice in real life. The reason is simple: just like eating healthy and staying fit, money management can seem like a burdensome, unpleasant activity. It forces traders to constantly monitor their positions and to take necessary losses, and few people like to do that. However, as Figure 1 proves, loss-taking is crucial to long-term trading success.
How to Read a Chart & Act Effectively | Forex articles
Introduction
This is a guide that tells you, in simple understandable language, how to choose the right charts, read them correctly, and act effectively in the market from what you see on them. Probably most of you have taken a course or studied the use of charts in the past. This should add to that knowledge.
Recommendation
There are several good charting packages available free. Netdania is what I use.
Using charts effectively
The default number of periods on these charts is 300. This is a good starting point;
Hourly chart that’s about 12 days of data.
15 minute chart its 3 days of data.
5-minute chart it’s slightly more than 24 hours of data.
You can create multiple "tabs" or "layouts" so that it’s easy to quickly switch between charts or sets of charts.
What to look at first
...:::| Currency Trading Training - 7 Favorite Tips | Forex trading |:::...
Currency Trading Training - 7 Favorite Tips
Currency trading training is not over when a trader finally sees the equity increasing in their account.The Forex market is a very demanding environment and for a trader to maintain a success level, constant currency trading training is necessary.The following 7 favorite tips can be used as timely reminders and need to be read and absorbed on a regular basis:#1 - Take Responsibility"The buck stops here." Don't blame the markets, or a host of other factors for a losing trade. You entered it for whatever reasons you had at the time. Take responsibility for it.
...:::| Make The Currency Cross Your Boss | Forex articles |:::...
FOREX Trading Strategy - The Secret of Timing | Trading strategy
Once you،¯ve identified a trading opportunity, the next step is to decide EXACTLY when to buy - and this is where many traders go wrong.Here we explain how to incorporate better market timing into your FOREX strategy - so that you can make bigger profits.Most traders time their entry levels incorrectly, so here،¯s the right way to do it:Using Support and Resistance CorrectlyA basic wisdom of market timing is ،°buy low, sell high،± - well, the reality is, if you try this in FOREX trading, you،¯ll end up losing money. First, let،¯s define what support and resistance meansA support level is a historical price that traders come in, and buy to ،°support the market،± ¨C and the more times it،¯s tested, the more valid the support will be.Conversely, a resistance level is a level on the charts that ،°resisted prices from moving higher،±- again the more times it،¯s tested, the more significant it becomes.Why Buy Low and Sell High doesn،¯t Work،°Buy low, sell high،± is accepted wisdom by the majority of traders - but this logic is fundamentally flawed - use it in FOREX trading, and you،¯re asking for trouble. Why? - If you wait for a pullback, you،¯re going to miss some of the biggest moves.Think about it - what if a currency starts to trend and doesn،¯t pullback? (How often have you seen this?) If you،¯re waiting for a pullback that never comes, you،¯ll never get in on the trade ¨C and you،¯ll miss a major opportunity.You Need to Feel UncomfortableWhen Trading in the FOREX market, you should usually feel uncomfortable (and that،¯s why most traders don،¯t make these trades) - as no one likes to buy or sell after the market has started trending - but doing this will make you money.The fact is, the more comfortable you feel when entering a trade at support, the less likely the trade will be a big winner.During any given year, most of the big moves in currencies, take place from new MARKET HIGHS with NO pullback.If you base your FOREX Trading strategy around waiting for a warm comfy entry, at key support, you،¯re going to miss the biggest and most profitable trades ¨C so step away from the losing majority of traders.Your FOREX trading strategy should give you a different mindset - most traders ،°buy low and sell high،± - so you should ،°buy high and sell higher،± ¨C i.e. you should be doing the opposite of what the crowd are doing.Don،¯t worry - most traders lose money, and their FOREX Trading strategy is based on the flawed logic we have just discussed - so not doing what they do makes total sense. Therefore, look for breakouts through support and resistance - and sell and buy respectively.Its Tough Mentally - But it Makes Money!Sure, it،¯s hard to do - the majority don،¯t agree with you - and no one likes to go against the majority. However, it،¯s the right thing to do, to make your FOREX trading successful. Think about what we،¯ve just said, and you،¯ll see it makes logical sense.Has this Happened to You?How many times do traders buy into support, and the market breaks support, stops them out and continues to decline. On the other hand, another common scenario is, price never get to support - it simply goes higher - and the trader misses the chance to get in on the trend.This type of trading is tough mentally - that،¯s why 90% of traders don،¯t do it - they want to be comfortable - well being comfortable is great, but you،¯ll lose money.Breakouts work, and if you use them in your FOREX Trading strategy, you won،¯t be comfortable on entry - but you،¯ll make money - and that will more than compensate.The way to succeed in FOREX trading is to do what the losing majority don،¯t do -
Monday, March 10, 2008
best forx learn forex new very new
New to Forex
When starting to trade on the forex market, you have to be aware of this market's specificity.The Forex market allows a trader to make profit when buying or selling. There is no commission per trade, but a spread between the buying and selling price.The below lines contain everything you should know about the forex market.
What is Forex (Foreign Exchange, FX) ?
ACM offers online forex trading services for traders wanting to make speculative transactions on the exchange rate between two currencies.
These rates may be influenced by world economic and political events, currency rate differentials, as well as many other factors including extreme weather conditions (hurricanes), acts of terror etc.
The Forex is the largest marketplace in the world with more than 1.8 trillion dollars changing hands daily and so making it one of the most attractive and lucrative markets.
How does the Forex work?
The forex market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates.
Making a transaction on the Forex Market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.
Buying/Selling - B/S
If you want to open a position (i.e.: place an order to sell – to make a profit if the exchange rate falls) you have to choose the amount (i.e.: 100.000 EURUSD) from the drop down menu on the platform and then click the mouse on the sell currency button: SELL (if you want to place an order to buy, you should act in reverse).
This will open a position in the market and you will receive an immediate notification of it on your trading station.
To close an open position, you have to do the opposite of the initial operation – in our case buy the 100.000 EURUSD back.
Different order types also exist to open or close a position under a certain condition.
How does the B/S system work?
As with any market, for each currency pair, there are 2 prices. The difference between them is called the spread.
The spread is measured in points or pips – lowest decimal figure in a currency rate.
For a EURUSD a pip equals 0.0001 (or 10 dollars on 100.000), for EURJPY a pip equals 0.01 (or 1000 yen on 100.000). More information on P/L calculation on the following page: profit and loss.
Forex currencies quotation system
Currencies are quoted in pairs, for example – EUR/USD or USD/JPY.
The first currency in the pair is called the base currency and the second is called the counter currency.
The base currency is the ‘basis’ for purchases and sales. For example, if you buy EUR/USD, then you acquire Euros and sell Dollars. You do this if you expect the Euro to grow against the Dollar.
It is also possible for a currency pair to be quoted as USD/EUR, but this method is used extremely rarely.
Each transaction must have 2 sides – a buy and a sell (or a sell and a buy).By this we mean that it is impossible to buy 100.000 EUR/USD and then exchange it for another currency pair (i.e.: EUR/JPY) without closing the first position.
Also please note that no physical currency delivery will be made. For these purposes banks and exchange companies, which specialize in low-rate currency conversions are available.
Forex market working hours
The Forex Market, based on ‘spot’ transactions, is unique in comparison with all other global markets.This is because trading takes place 24 hours a day, 5 days a week (ACM platform works from Monday 00:00 to Friday 23:00 CET). Financial centers are open for work, and banks and other organizations exchange currencies in different parts of the world for different purposes.
Therefore, trading never stops apart from a short break during the weekend. Early closings are possible depending on calendar arrangement such as, for example, Christmas or new year’s eve.
Forex trading margins
A margin deposit is not, as many traditional traders suggest, the payment in cash for purchasing market shares. A margin is in fact a guarantee or a trust deposit, providing protection from losses during a deal? It allows traders to open positions on amounts that greatly exceed their account limits and so increase their buying power. ACM offers a 1% margin (or 1:100 leverage), which means you can control 100 times your deposit in the real market.
If the funds in the account, in the course of trading, fall below the prescribed margin, your positions will be closed automatically without prior notice. Using this system, the client’s account cannot go overdrawn even under volatile, fast-changing market conditions.
The formula for calculating margins is as follows: (account balance + profit/loss) : open position = the margin
Rollover of positions (swap)
For the sake of transparency and unlike any other online broker we actually have a complete explanation of applied cost of carry on behalf of the market or the customer on open positions held overnight. This overnight cost of carry is presented as a simple flat fee either paid or charged on a customer's account. This process makes for extremely simple statements and greatly increased executional transparency since we do not modify the original price of the position entered into by the customer.
You can find a more detailed explanation on the following page: overnight positions.
How to start trading forex ?
Open a live account if you feel ready to trade in the real market OROpen a demo account on one or both of our trading platforms and choose which suits you best
Define how long you can trade for.
Define the currency pair you feel most comfortable with.
Choose the tradable amount.
Before opening a position, you have to consider how much profit you wish to make or how much loss you are eventually prepared to take. Depending on this analysis, place stop and/or limit orders.
Open your position or place an entry order.
Follow significant news events and technical indicators which you can consult inside your trading station or from third party sources (find out more about different types of analysis on the following pages:
Technical vs fundamental analysis.
Forex technical indicators.
Forex fundamental analysis.
Also please consult the following pages for more information or contact customer support.
Learn more about foreign exchange
Foreign exchange glossary.
Spreads and margin requirements.
Execution methodology.
Trading examples.
Forex order types.
Phone trading terminology.
Trading with a strategy.
Friday, March 7, 2008
Best Forex Why Easy-Forex™ Trading Platform?
Competitive Spreads
How many "pips" do they offer as their spread?The spreads in our site assume deals of small and up to medium volumes. If you are a frequent trader dealing in larger volumes, we offer you a tailor-made account to suit your exact needs (spreads and leverage).
Best Forex Why Easy-Forex™ Trading Platform?
Special Terms for frequent traders
Can the trading terms I am offered be tailor-made to my personal preferences?The spreads and other terms in our site assume deals of small and up to medium volumes. If you are a frequent trader dealing in larger volumes, we offer you a tailor-made account to suit your exact needs (spreads, leverage ratio, mobile-phone alerts, etc.). contact us by e-mail or phone, to obtain your special trading terms.
Best Forex Why Easy-Forex™ Trading Platform?
Security and Safety
What kind of safety and security measures are taken to protect my transactions?Literally, the best. Easy-Forex™ treats the issues of data security, privacy, integrity and backup with the utmost attention and care. This is achieved through:
Ensuring authorized access only, Easy-Forex™ uses two layers of top class firewall: one at the server level and one at the application level.
For user authentication and data transfer Easy-Forex™ uses an advanced SSL by Verisign
Separating the application servers (the servers that handle our clients'' online activity) from the transaction information: those are stored on a different data server.
For data recovery, integrity and replication Easy-Forex™ uses two different server farms, physically located away from each other. Data has to be synchronized in both locations, thus cannot be tampered with. All the information on the servers is stored encrypted.
The physical security of each server farm is very high. Armed guards are situated 24 hours a day, and access to the premises is strictly forbidden except for authorized personnel. We make sure that whatever happens: failure, disaster, etc. your transactions are intact, secure, and backed up.
Best Forex Why Easy-Forex™ Trading Platform?
No hidden costs
Are all commissions clearly visible and well informed?Am I charged commissions on trading?Am I charged commissions on my profit withdrawals?Our transparent system assures you that with Easy-Forex™ you pay no commissions for the deals you make!! (see our Spreads and Commissions page). Easy-Forex™ acts as a market maker, and makes its earnings from the spreads that are embedded in the currency rates. In the "Day trading" zone you may roll over your positions to the next day, and then you pay a renewal fee. Please see our terms & conditions. As well, you are never charged for profit withdrawals or deposits.
Best Forex Why Easy-Forex™ Trading Platform?
Freeze the Rate you see and trade Forex online
When I select a rate for a deal, can I "FREEZE" it for a few seconds, before I should make my final decision? Do I have enough time to regret? Unlike any other trading platform today, Easy-Forex™ offers you the possibility to Freeze the Buy or the Sell rate that you see for a few seconds, irrespective of rate movements. That means that the rate you see and freeze is the rate you get (if indeed you decide to make the deal). During those "FREEZE" seconds, the Forex market could change, however - you are guaranteed to use the rate you have frozen, in case you wish to materialize it into a deal. Please note that guaranteeing the rate per such feature is available during regular market activity only. Under unusual conditions, this feature will not be guaranteed.
Best Forex Why Easy-Forex™ Trading Platform?
Margin trading with as little as US$100
What is the lowest amount I can risk and deal Forex with?The Easy-Forex™ system enables you to trade with small amounts as well. You can start using Easy-Forex™ even with an amount as little as $100! No bank would ever offer you such an opportunity! When trading, you may deposit the sum that suits you, or fits the amount that you are willing to risk. Starting to trade with such small amounts is the best way to get acquainted with the Forex marketplace. Much better than operating "DEMO" accounts, where you are not really risking your own money. After getting familiar with the system, you may increase your level and scope of activity, as you find fit.
Best Forex Why Easy-Forex™ Trading Platform?
Start trading in less than 5 minutes
Are there any tedious procedures needed for account set-up?Can I immediately register, deposit the margins for the deal, and start running?Of course you can, especially when you have no software to download, and you have the option to use your credit card for depositing the margin required for the trading. Please note that due to security measures, aimed to protect you, the Forex trader, the scope of deals on the first week of new users trading with Easy-Forex™ is limited. Such restriction will be removed after making a phone contact with our team.
Best Forex Why Easy-Forex™ Trading Platform?
Instant Deposit with Credit Card
Am I bound to wait for the banking hours, or can I deposit trading margins with my credit card?Should I miss an opportunity, in case I would like to change the margins in the middle of the night?And when I profit, can I withdraw the profits to my credit card account?Easy-Forex™ is the only Forex platform which allows you to fund your account with your credit card, so you can start trading immediately, regardless of banking work days or hours! Easy-Forex™ cares about protecting your credit card security as well as protecting your privacy to the highest standards. To achieve that, we use the latest technologies and comply with all relevant regulations. Please read our terms & conditions
Best Forex Why Easy-Forex™ Trading Platform?
No software download
Is their internet platform friendly and easy to use?Do I need to download any software?Can the trading be performed immediately, without any obligation to a certain configuration or a computer?Easy-Forex™ Trading Platform is the only Forex platform that enables users to start trading immediately. With no software download required you may login to your account and trade anytime, from anywhere.
Best Forex Why Easy-Forex™ Trading Platform?
Rates, Limits and Stop-Loss
When I set a rate to a deal, is it executed "around", or "near" the rate I set, or rather exactly on it?Easy-Forex™ executes your set rates, including Stop-Loss and Take-Profit rates, by using the latest technologies. We are committed to the principle that you should not lose more than your Stop-Loss amount at risk, as defined by you. Please see our terms & conditions.As well, per your pre-set TAKE-PROFIT rate (if you choose to set such rate) your deal will be automatically closed, exactly on your pre-defined Take-Profit rate.Needless to say that you can change those pre-defined rates, Stop-Loss as well as Take-Profit, at any time while your deal is open.It is highly important that you know that, due to the nature of the forex global market, 100% guarantee to pre-set rates is impossible. Such may occur under highly volatile market conditions, where other parties to the Forex trade (e.g. – the trader, the platform, the liquidity provider, etc.) are unable to execute specific rates, or specific rate range, due to conditions that are beyond their control.Simply put: Easy-Forex™ makes any and all efforts to guarantee the rates, when it is able to doing so, unless market conditions prevent delivering the rate selected.
Best Forex Why Easy-Forex™ Trading Platform?
Live training, one-on-one help on first steps in online trading
Do they offer professional assisting tools?
Easy-Forex™ offers background information for the Forex market, Guided-Tour, seminars, one-on-one training, CHAT, telephone support, as well as other assistance tools, including technical support. You are never left alone to trade without help, if indeed you need it. Moreover, your personal Account Service Manager will guide you live, on your first trading steps, to help you get acquainted with the Easy-Forex™ system, and will answer your technical questions
Best Forex Why Easy-Forex™ Trading Platform?
Personal account management
Anybody there?Are there real people behind the phone (or the e-mail box)?Do I speak with the same person, managing the service to my Forex account and providing the personal touch and assistance, online?Easy-Forex™ expert team members are available for you, at all times, anytime. Moreover, you have your own Account Service Manager working closely with you, and the dealing room services are offered to you by expert Forex dealers. You may speak with us over the phone, over e-mail, or over the advanced online CHAT system that we run, as well as visit your regional office and meet in person. Yes, it''s internet, but we are real, and we take it personally.
Sunday, March 2, 2008
About Forex
To buy foreign goods or services, or to invest in other countries, companies and individuals may need to first buy the currency of the country with which they are doing business. Generally, exporters prefer to be paid in their country's currency or in U.S. dollars, which are accepted all over the world. The foreign exchange market, or the "FX" market, is where the buying and selling of different currencies takes place. The price of one currency in terms of another is called an exchange rate. The market itself is actually a worldwide network of traders, connected by telephone lines and computer screens there is no central headquarters. There are three main centers of trading, which handle the majority of all FX transactions United Kingdom, United States, and Japan .
forex charts
The live forex charts can be used to track ten currency pairs in real time and click on forex rates for a pop-up window of ten currency pairs with live rates for the EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD, EUR/JPY, EUR/GBP and EUR/CHF, including the daily highs and lows from 17:00 EST. For a selection of free ebooks, trial offers, calculators and tutorials, visit free downloads. For a current snapshot of the foreign exchange market, use the market monitor to display time zones for several key markets, as well as live forex rates, a sentiment indicator and an economic calendar in a detachable window. Use the online money management calculator to calculate the correct position size for your trade based on your risk profile. Browse the selection of forex books on offer in forex books which includes special sections on technical analysis and general trading. There is a great number of forex related resources to be found in the categorised forex directory to help you find a particular niche or service
forexglossary
Accrual The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals, over the period of each deal.Actualize The underlying assets or instruments which are traded in the cash market.Adjustable Peg An exchange rate system where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency. The official rate may be changed from time to time.Adjustment Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.Agent Bank A bank acting for a foreign bank. In the Euro market - the agent bank is the one appointed by the other banks in the syndicate to handle the administration of the loan.Aggregate Demand Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and and firms in other countries for good and services.Aggregate Risk Total amount of exposure a bank has with a customer for both spot and forward contracts.Aggregate Supply Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.Agio Difference in the value between currencies. Also used to describe percentage charges for conversion from paper money into cash, or from a weak into a strong currency.Aggressor A trader dealing on an existing price in the market.Appreciation A currency is said to 'appreciate' when it strengthens in price in response to market demand. Describes a currency strengthening in response to market demand rather than by official action.Arbitrage Profiting from differences in the price of a single currency pair that is traded on more than one market.Arbitrage Channel The range of prices within which there will be no possibility to arbitrage between the cash and futures market.Around Used in quoting forward "premium/discount". "Five-five around" would mean five points on either side of the present spot value.Ask Price Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote - e.g. EUR/USD 1.1965 / 68 - means that one euro can be bought for 1.1968 US dollars.Asset An item having commercial or exchange value.Asset Location Dividing instrument funds among markets to achieve diversification or maximum return.At Best An instruction given to a dealer to buy or sell at the best rate that is currently available in the market.At or Better An order to deal at a specific rate or better.Authorized Dealer A financial institution or bank authorized to deal in foreign exchange.Average Rate Option A contract where the exercise price is based on the difference between the strike price and the average spot rate over the contract period. Sometimes called an "Asian option".Back Office The office location, or department, where the processing of financial transactions takes place.Balance of Trade The value of a country's exports minus its imports.Bank Notes Paper issued by the central bank, redeemable as money and considered to be full legal tender.Bank Rate The rate at which a central bank is prepared to lend money to its domestic banking system.Bar Chart A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information - the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price.Base Currency In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which exchange rates are generally quoted in a given country. Examples: USD/JPY, the US Dollar is the base currency; EUR/USD, the EURO is the base currency. Bear Market An extended period of general price decline in an individual security, an asset, or a market.Bid Price is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote - e.g. EUR/USD 1.1923 / 68 - means that one euro can be sold for 1.1923 US dollars.Bid/Ask Spread is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker's fee, and varies from broker to broker.Big Figure The first two or three digits of a foreign exchange price or rate. Examples: USD/JPY rate of 108.05/10 the big figure is 108. EUR/USD price of .8325/28 the big figure is
how you can chose forex?
There are so many different trading systems you could use to trade the forex market, some better suited to certain people than others. For example some people may find it easier to comprehend and take into account fundamental factors as opposed to looking at a screen covered in technical indicators, and vice-versa. The first logical step in determining what type of trading system would best suit you is actually being aware and understand the widely known methods of analysis used in trading the currency market. Once you are aware of the tools that are available, you can generally tell what type of analysis suits you. For example some of the main technical analysis methods which are popular include: Pivot points Chart patterns Fibonacci retracements Candlestick patterns And some fundamental factors which are widely used include analyzing: Interest rates Trade balances Unemployment rates Gross domestic product (GDP) You may now actually be able to develop your own system by combining certain methods of analysis together, giving you a method which you are comfortable with. On the other hand you may decide that you would like to trade someone else’s system, either way, that brings us to the next step which is determining the profitability of a trading system. Determining Profitability Most people would think that back testing is the best way to determine a systems profitability. However back testing doesn’t always give you a true idea of how profitable a system is. The reason for this is because when you’re back testing your system on historical charts, you are only seeing the obvious setups which have occurred, and not always seeing the ones that are less obvious. These less obvious ones sometimes can produce losses, which is why back testing isn’t always the best method to implement
what is forex?
To buy foreign goods or services, or to invest in other countries, companies and individuals may need to first buy the currency of the country with which they are doing business. Generally, exporters prefer to be paid in their country's currency or in U.S. dollars, which are accepted all over the world. The foreign exchange market, or the "FX" market, is where the buying and selling of different currencies takes place. The price of one currency in terms of another is called an exchange rate. The market itself is actually a worldwide network of traders, connected by telephone lines and computer screens there is no central headquarters. There are three main centers of trading, which handle the majority of all FX transactions United Kingdom, United States, and Japan
