New Trade Online Free Forex Training Trading Strategies

1 2 3 Trading System

2008-04-13T02:47:00.000-07:00

One of the
first trading strategies I was taught when I
started trading was the simple 123 pattern.
Whilst I cannot trade every system I write
about every day, the 123 system can give
exact entries and tight stops.

The 123 trading system is a break out system
where we label the current high or low point
1 the next high or low is point 2 and the
pull back high or low is point 3. Our entry
point for the trade is always the break of
point 2.Lets
look at a GBP/USD 15 min chart where I have
Identified a number of trades based on the
123pattern.

I have labeled the 123 patterns and
high-lighted the the first trade blue. The
market broke short then retraced and made a
new high. At this stage the market could
have gone in any direction but when it
failed to continue down past the previous
low this was a good indication of a reversal
but not a confirmation, the confirmation
would only come at the break of point 2
provided the price does not go below point 1
of the pattern.

At the break of point 2 in our pattern the
new trend was confirmed and we entered the
trade long at 2.0312 with our immediate
target the previous high in the market at
2.0390 about 70 pips above. The stop loss
was placed just below 2.0239.

The risk reward ratio was not great on the
trade at 1:1 but the profit target was
achieved.

The Next trade, orange high lights we again
entered the break of 2 at 2.0275 with a much
tighter stop at 2.0312. The target on this
trade the previous low at 2.0090. The down
move stopped at 2.0098 just short of our
target. The trade was closed when price
broke above the high of the retracement 115
pips from our entry.

There was also a third trade, (Blue High
Lites) as we can see the pattern is fairly
common and can appear a number of times a
week. The method can also be used
effectively across all time frames.

As with all trading systems they can be more
effective when used in conjunction with
other indicators. A popular indicator to use
with the 123 pattern is a 21

exponential moving average which I have
added to the same chart. In this case we
enter the market when the 123 pattern is
confirmed by a break of the 21 ema.

We can stay in the trade until we hit a
predefined target or until price breaks
above or below the 21 ema which confirms the
reversal. The initial stop loss is the same
as the normal method.

The
pink moving average line has been added to
the same chart and confirmed all the above
trades when price broke our point 2 it had
also breached the 21 ema to give further
confirmation of the trade.

Another effective indicator to use with the
1 2 3 formation is Bollinger bands. On the
next chart I have added a standard Bollinger
band. Using

Bollinger bands we wait until the price
hits or penetrates and outer band or or
center line before breaking point 2.

Looking
at trade 1 price penetrated the lower band
before retracing and forming the high at
point 2 then dropped again to form point 3
which was higher than point 1. When price
broke point 2 our Bollinger bands started to
widen further confirming the up move.

Trade 2 also penetrated the upper band
before retracing and forming point 2. Point
3 stalled at the center band before breaking
short. Our stop loss is the same as in the
other methods but here our target can be the
lower band or until we get a reversal
pattern.

All the other trades are also confirmed with
the

Bollinger bands.

Summary

Exercise
patience whilst waiting for the pattern
to form

Only enter
the trade at the break of point 2

Set Stop
loss above point 3.

If using
the 21 ema strategy then only enter the
trade when price breaks the ema line as
well as point 2 in the pattern.

If using
the Bollinger band method price must
first touch an outer or center band then
reverse to form point 2.

The better
trades will be when the entry is
confirmed by the widening of the
Bollinger Bands and a bounce off one of
the center line of the band.

USD: Worst Quarter in 4 Years

2008-04-12T04:00:00.002-07:00

In the first three months of 2008, the USD notched its worst quarterly performance since 2004, falling over 8%. During the same period, the Dollar lost 10% of its value against the Japanese Yen and 6.4% against a broad basket of currencies. Forex analysts reckon the slide was so steep because investors have taken stock of the US economic situation and have concluded that recession is inevitable. The story is also being driven by interest rates. The Fed has already cut rates by 300 bps in the current cycle of easing, making the benchmark federal funds rate the lowest in the industrialized world, in real terms. Meanwhile, the European Central Bank is giving every indication that it will maintain rates at current levels in order to keep a lid on inflation. As a result, the Dollar could fall further, especially if the Fed continues to hike rates and investors use the currency to fund carry trades. Reuters reports:
[According to one analyst], "And to call a bottom now is still a very risky call. It's too early to say the worst is behind us and the dollar's in for a sharp rebound."
Read More: Dollar logs weakest quarter vs euro since 2004

Barclays Introduces Carry Trade ETN

2008-04-12T04:00:00.001-07:00

Through its trademark iPATH line of funds, Barclays Bank recently introduced a new ETN designed to mimic the carry trade. In accordance with this strategy, this note is linked to the performance of the Barclays Intelligent Carry Index, which aims sell low-yielding currencies and use the proceeds to invest in those that offer higher yields. This index holds varying combinations of the so-called G10 currencies, which includes all of the majors as well as the Norwegian Krona and Swedish Krona. Traditionally, carry traders have sold one specific currency (i.e. Japanese Yen) in favor of another currency (i.e. the New Zealand Dollar). By instead purchasing this note, which will trade under the ticker ICI, investors can buy a share of an entire portfolio, optimized expressly for this strategy. Comtex reports:
The index is composed of ten cash-settled currency forward agreements, one for each index constituent currency, as well as a "Hedged USD Overnight Index" which is intended to reflect the performance of a risk-free U.S. dollar-denominated asset.
Read More: Barclays Launches New iPATH ETN

Fundamentals Harm Emerging Market Currencies

2008-04-12T03:59:00.001-07:00

Since the inception of the credit crunch, one of the themes in forex markets has been the surprising strength of the Dollar. Despite growing economic uncertainty, the US is still viewed as a relatively safe place to invest. On the other hand, emerging markets, especially those with current account deficits, have witnessed capital flight and subsequent currency depreciation. The currencies of South Africa and Iceland, for example, have both experienced declines 20% since the start of this year. Risk premiums had fallen to historic lows prior to the credit crunch, and neither country experienced great difficulty financing its respecive deficits. However, investors are growing increasingly nervous and are shifting capital to countries with stable current account balances. The Financial Times reports:
Goldman Sachs says: "We have long argued that in times of global turmoil suppliers of capital are poised to outperform countries in need of capital. However, it is only since January 2008 that we have seen the current account theme really gain momentum in the FX market."
Read More: Currencies at mercy of deficits

IberiaBank Visa® Classic Card

2008-04-10T17:22:00.000-07:00

The IberiaBank Visa® Classic Card, issued by Pulaski Bank, is designed for those with average credit who may occasionally carry a balance.
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Brighter Planet Visa® Credit Card

2008-04-10T17:20:00.000-07:00

The Brighter Planet Visa® Credit Card, issued by FIA Card Services, N.A., is designed for those with very good credit who would like to support an organization dedicated to monitoring and protecting the environment and will take advantage of the EarthSmart reward program.
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2008-04-08T16:31:00.001-07:00

Our expertise in IT allowed us to create revolutionary infrastructure, where traders can trade with institutional price feed over Metatrader platform. IKON's partnership with top dozen forex liquidity providers gives ability to trade up to 50 mln usd per single click without request for quote. We believe that our technology solution will satisfy customer needs.

ONLINE FOREX TRADING PLATFORM

2008-04-08T16:28:00.002-07:00

Our online trading platform Metatrader 4 is one the most advanced online trading platform in the industry. It has a user friendly front-end trading interface. Provides technical analysis, charting and expert advisors to develop own fully automated currency trading strategies.

Free Education

2008-04-08T16:28:00.001-07:00

Take our online trading courses absolutely free of charge! You will hear the instructor's voice as you view the presentation of informational charts, graphs, and even short movies that highlight key elements of trading. Your trading will improve with each course:
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How to Save $5000 on Forex Trading Training and Get it Free

2008-04-07T15:39:00.000-07:00

How to Save $5000 on Forex Trading Training and Get it Free

Euro hovers near all-time high

2008-04-06T07:05:00.000-07:00

The Euro is currently hovering above its all-time high against the USD, and is flirting with levels never-before-seen in the Euro’s brief, eight-year history. The Euro had toyed with the record for the last couple of weeks, before finally breaching it upon last Friday’s release of US GDP data, which indicated the US economy had weakened to its slowest pace of growth in over four years. Investors are now waiting to see how the Fed responds to this latest development, as the bank has found itself in the unenviable position of navigating rising inflation and a slowing economy. Reuters reports:
Benign inflation data and modest growth in Midwest business activity provided more evidence of slowing U.S. economic growth, keeping sentiment bearish for the dollar, traders said.
Read More: Dollar stays near record low vs euro in quiet trade

Norwegian Krone Rises on Rate Hike

2008-04-06T07:04:00.000-07:00

The Norwegian Krone is certainly not a very popular currency among participants in the forex markets. Nonetheless, the currency has enjoyed a strong year, having moved away from clinging to the coattails of the Euro and has actually surpassed the common currency by a considerable margin. In fact, the Krone recently touched a 10-month high against the Euro, and a multi-year high against the USD, spurred on by a rate increase by the Central Bank of Norway. In addition, the consensus among analysts is that the Central Bank will hike rates several more times over the next year, bringing the benchmark rate to 5.75% by 2008. Surely, the most opportunistic among us has already begun searching for a broker that facilitates trading in Krone!
Read More: Norwegian krone jumps as central bank hikes interest rates

Central Banks in the News

2008-04-05T10:39:00.000-07:00

As we wrote last week, the direction of the Dollar may be influenced more by external economic events rather than by internal activity. Accordingly, it would behoove forex traders to direct their attention away from the Fed and towards the Bank of England and the European Central Bank, both of which face important monetary policy decisions later in the month. With regard to the Bank of England, futures markets have priced in a 2/3 chance that rates will be cut by 25 basis points. In the case of the ECB, the markets are expecting rates to be maintained at current levels. However, analysts will be scrutinizing the Banks' respective press releases and monitoring other developments in this area due to the implications for the US-EU-Britain interest rate differential. Reuters reports:
Some analysts think that hawkish comments from Trichet will be brushed aside with weaker economic data leading to the prospect of falling euro zone rates later in the year.

Dollar Falls to Record Lows

2008-04-05T10:38:00.001-07:00

Over the last couple weeks, the Dollar has plummeted against all of the major currencies, falling below the $1.50 mark against the Euro for the first time ever. It seems investors are reacting to a spate of negative economic data which are painting an increasingly bearish picture for the US economy. In addition, the Fed seems likely to lower rates further while the ECB will maintain rates at current levels. For a brief period, talk of recession was actually helping the Dollar, as investors predicted that the global economy would be harmed more than the US economy, but it looks like that period has passed. As a result, the EU is growing increasingly alarmed, and the pressure is building for some kind of intervention. AFX News Limited reports:
Euro group president Jean-Claude Juncker said currency markets are overreacting to the short-term outlook for the US economy. " We don't like excessive volatility in exchange rates," Juncker said.

USD: Worst Quarter in 4 Years

2008-04-05T10:37:00.001-07:00

Forex Leads Equities

2008-04-05T10:36:00.001-07:00

In recent months, the credit crunch has ignited a global trend towards risk aversion. As a result, a correlation has developed between equities, which serve as a proxy for risk, and certain currencies. The Forex Blog previously covered the link between the S&P 500 and the Japanese Yen, whereby the Japanese Yen moved inversely with the S&P as a decline in risk appetite led carry traders to unwind their positions. Perhaps, this connection can be seen in other currencies. Since the forex markets are open 24 hours a day and are the most liquid financial markets in the world, macroeconomic events are often priced into currencies before they are priced into equities. In addition, carry trading strategies have expanded beyond the Japanese Yen. In fact, the USD is now a decent candidate as interest rates are negative,when adjusted for inflation. Thus, an increase in risk appetite could simultaneously boost the S&P and punish the Dollar!

Euro Could Replace Dollar

2008-04-03T13:45:00.000-07:00

WFXAdvisor - Professional FX signal service

2008-04-03T13:38:00.000-07:00

Dear visitors,WFXAdvisor is a professional signal service working on FOREX market. With an +563 pips monthly profit average , WFXAdvisor has been able to provideaccurate, precise and clear investment advices to it's customers since 3 years.Each trading day, during european morning, OrderBook is send to each members.The OrderBook contains all pending, active, and closed trades.You just have to manage your trades according to OrderBook changes,and it takes less than 10 minutes a day.WFXAdvisor strategies has been made to fit FX trading style. We adapt ourstrategies to market behavior, we limit risks and maximize profits by keepingpositions managed for several hours to several days.All trades provided by WFXAdvisor contains stop-loss and take-profit points,and include a money management scale to adapt your position size to each trade.Our trades can be suited for every investors whatever equity amount andgeographic situation.To know more, visit our website : http://www.wfxadvisor.com===Last months performance :June 2007 : +422 pipsJuly 2007 : +672 pipsAugust 2007 : +384 pipsSeptember 2007 : +593 pips===Our performance details, OrderBook archive, performance-tracking statement,and all you need to know are available on our website.http://www.wfxadvisor.com

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2008-04-03T13:37:00.000-07:00

As an FX Nation Live member, you'll be one of the first to see this incredible profit-generating system. Imagine creating an on-going stream of hands-free money by bringing new accounts to the table. The profit potential is staggering and the lifestyle could be what you've always been looking for.FX Nation Live- Live, daily FX market video commentary.- Free Charting with exclusive institutional level tools and Free E-Signal data feeds – a combined value of $289!- Desktop or SMS alerts delivering commentary, trades, and research if you miss the live session or just for review.-FX Training and Education ResourcesFX Nation Live

Forex System Reviewed

2008-04-03T13:34:00.002-07:00

Hi, I just wanted to tell people about a new forex system I started to use just recently. After trying several systems and not having much success I went on to this one. Its really good if you have never traded in forex before as it walks you through it and can be left to trade for you. It brings me in a regular income each month with me only really checking up on it to see how it is doing. The site is http://easymoneyforexsystem.comIf you have used this forex system please post your feedback as I want to know your thoughts on it.Also, I opened two accounts with this system. I kept one account and the other account I asked for a refund to test the 100% refund policy. I got all my money back instantly. Fab

Lots of Forex Junk out there.

2008-04-03T13:34:00.001-07:00

I know there is a lot of Forex junk out there.My advice if looking for advisory service or ebook or software make sure they have a good guarantee behind them. So you don't have risk. Then demo trade it for a while until you get comfortable.Also have realistic goals. Turning $100 into $10,000 in 30 days isn't realistic.Trading is a long term solution not get rich quick.I told a friend of mine about this site

Beginners trading strtegy ??

2008-04-03T13:33:00.000-07:00

Hello There!!I need to know what simple strategy I need to employ base on the following facts.I am a newbie1. I have an access to FXCM practice plarform.2. I can only place practice trades early in the morning 4:30 - 6:00 am. than leave for work, while at work entry positins w/ stop and limits are unattended.3. Home by 3:30pm to look at the results.A- What time charts I need to study in the morning ( monthly, weekly, daily, hourly etc.)B- What pivots points (PP) I should use on what charts/ using Peter Bains trading strategy. His strategy is to place daily PP on 15min. chart and weekly PP on daily chart and also placing weekly PP on 60min charts. I basicly need to scale it up or similar to my time frame charts as mentioned above. C. What technical indicator(s) I should use.At this point I want to keep it simple. Master this techniqe first and than move to higher level. I also dont care about profits that much since I am paper trading. As you may know one can learn a lot from loosing games than from winning games. My tennis coach at ASU (AZ State Univ.) told me that many times.

How to profit off buying USD when account is in USD?

2008-04-03T13:29:00.000-07:00

I've been working on understanding pip-worth calculations. I can calculate the (pip/rate) * (notional amount) formula but I would like to understand how to derive it. Brokers must have various currencies in banks to allow me to buy USDJPY when all I have in my account is USD, correct? If I buy one 10k lot of USDJPY at 130.26, the broker holds $50 of my money as a margin and then transfers $10k worth of yen (JPY 1,302,600 in this example) into USD.If I later sell USDJPY at 130.36, the broker changes the $10k back into JPY which at this point becomes JPY 1,303,600. The broker must now use the original exchange rate of 130.26 to calculate how much I have gained, correct? I guess this only makes sense because if they used the new exchange rate my account balance would not change at all. I'd just like someone to verify this or point out where my thinking went wrong if I'm incorrect.

best forx learn forex new very new

2008-04-02T18:04:00.000-07:00

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/SIf 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 systemCurrencies 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 hoursThe 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 marginsA 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 marginRollover 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 bestDefine 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 exchangeForeign exchange glossary.Spreads and margin requirements.Execution methodology.Trading examples.Forex order types.Phone trading terminology.Trading with a strategy.
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Forex - Euro Challenging Multi-month High Versus Yen On Increased Risk Appetite

2008-04-02T18:03:00.000-07:00

4/2/2008 12:29:44 PM Increased risk appetite drove the euro to a monthly high versus the yen Wednesday morning, and the single currency is now within hailing distance of its highest level in over two months. The euro jumped to 160.56 from an early level near 159. A move above 161.39 would bring the euro to its best since January 14.Forex - US Dollar Falls To 1-week Low Against Brazilian Real [USD/BRL]4/2/2008 12:06:19 PM During early New York trading on Wednesday, the US currency weakened against its Brazilian counterpart. After moving sideways, the dollar ticked down around 8:15 am ET against the real and touched a 6-day low of 1.7255 by about 12:00 pm ET. According to a report released by the Department of Commerce on Wednesday, the new orders for manufactured goods fell 1.3 percent in February following a revised 2.3 percent decrease in January. Forex - Japanese Yen Declines Further Against Majors [USD/JPY]4/2/2008 11:41:27 AM The Japanese currency declined further against its major counterparts during early New York trading on Wednesday. Currently, the yen is trading near 101.27 versus the franc, 102.78 against the greenback, 203.77 against the pound, 160.50 versus the euro and 100.98 against the loonie.

Forex - Global Round-Up For Wednesday -- Bernanke Signals Economy May Contract In 1H 2008 []

2008-04-02T18:02:00.000-07:00

4/2/2008 2:06:00 PM Federal Reserve Chairman Ben Bernanke took to Capitol Hill on Wednesday to deliver testimony's on the US economy to a joint Congressional committee. Market watchers worldwide were seeking insights about the health of the world's biggest economy and on the Fed's role in brokering the takeover of Bear Stearns by rival JP Morgan Chase.Bernanke's testimony overshadowed the release of the ADP's employment report, which showed that employers in the private sector surprising added 8,000 jobs - a good indication that Friday's pivotal government jobs report could show the jobs situation stabilizing.In prepared remarks, Bernanke addressed the recent financial turmoil and actions that the Federal Reserve is taking to address these issues. For the first time, Bernanke admitted that GDP may “contract” slightly in the first half of 2008, citing a weaker near-term economic outlook.“It now appears likely that real gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly,” Bernanke said.Aside from policy actions, the Federal Reserve's role in the Bear Stearns (BSC) sale in mid-March is evidence of their expanding role as a market stabilizer.“With financial conditions fragile, the sudden failure of Bear Stearns likely would have led to a chaotic unwinding of positions in those markets and could have severely shaken confidence,” the Fed Chairman explained. “Given the current exceptional pressures on the global economy and financial system, the damage caused by a default by Bear Stearns could have been severe."Before the opening bell Wednesday morning, Automatic Data Processing, Inc. (ADP) released its report on private sector employment in the month of March, showing that the private sector unexpectedly added jobs compared to the previous month. The report showed that non-farm private employment increased by 8,000 jobs in March following a revised decrease of 18,000 jobs in the previous month. Economists had expected a decrease of about 30,000 jobs compared to the decrease of 23,000 jobs originally reported for February.Not all the news on the economic front was rosy. Orders for manufactured goods fell more than economists had been excepting in February, according to a report released by the Department of Commerce on Wednesday, with orders for both durable and non-durable goods showing notable declines. The report showed that new orders for manufactured goods fell 1.3 percent in February following a revised 2.3 percent decrease in January. Economists had expected orders to fall 0.7 percent compared to the 2.5 percent decrease originally reported for the previous month.Rounding out the economic releases from the US, the Energy Information Administration released its report on oil inventories in the week ended March 28, showing that crude oil inventories rose much more than expected while gasoline inventories fell more than expected. The report showed that crude oil inventories increased by 7.4 million barrels after coming in unchanged in the previous week. Analysts had been expecting a much more modest increase of about 2.3 million barrels. Overseas, Euro zone producer prices rose 0.6% month-on-month in February, the Eurostat said Wednesday. Producer prices climbed at a faster pace of 0.9% in January. The monthly growth in producer prices matched economists' expectations. The European Central Bank has refrained from lowering interest rates despite concerns about a strong euro, maintaining that inflation control remains its primary focus.Forex - Greenback Falls Sharply Against Majors [EUR/USD]4/2/2008 1:06:02 PM The US dollar fell sharply against its major counterparts at about 1:00 pm ET. As of now, the dollar is trading near 1.9868 versus the pound, 1.5657 against the euro, 1.0118 versus the franc and 0.9138 against the Aussie.Forex - US Currency Sets Multi-day High Versus Kenyan Shilling [USD/KES]4/2/2008 12:55:48 PM The US dollar strengthened against the Kenyan currency in New York on Wednesday. At about 9:10 am Eastern Time, the dollar-shilling pair hit 5-day high of 63.00, compared to yesterdays' close of 62.85. Currently, the pair is trading at 62.95.According to a report released by the Department of Commerce on Wednesday, showed that new orders for manufactured goods fell 1.3 percent in February following a revised 2.3 percent decrease in January. Economists had expected orders to fall 0.7 percent compared to the 2.5 percent decrease originally reported for the previous month. Wednesday morning, Automatic Data Processing, Inc. (ADP) released its report on private sector employment in the month of March. The report showed that non-farm private employment increased by 8,000 jobs in March following a revised decrease of 18,000 jobs in the previous month.

Forex - US Dollar Plummets To New Multi-year Lows Versus Nuevo Sol

2008-04-02T17:59:00.000-07:00

4/2/2008 4:44:35 PM The US currency slumped to new multi-year lows versus the Peru's Nuevo sol and weakened against its Brazilian, Mexican and Colombian counterparts in New York trading on Wednesday. However, the greenback edged up against the Chilean peso.Orders for manufactured goods fell more than economists had been excepting in February, according to a report released by the Department of Commerce on Wednesday. The report showed that new orders for manufactured goods fell 1.3 percent in February following a revised 2.3 percent decrease in January. Economists had expected orders to fall 0.7 percent compared to the 2.5 percent decrease originally reported for the previous month.Payroll processor ADP announced its monthly employment report 8:15 am Eastern Time, indicating private sector employment was up 8,000 in March versus a revised decline of 18,000 in February. Economists expected a decline of about 30,000 jobs compared to the decrease of 23,000 jobs originally reported for February. During early New York trading on Wednesday, the US currency weakened against its Brazilian counterpart. After moving sideways, the dollar ticked down around 8:15 am ET against the real and touched a 9-day low of 1.7210 by about 4:20 pm ET. As of now, the pair is worth 1.7255.During New York afternoon deals on Wednesday, the US dollar reversed from morning session's 2-week low against its Chilean counterpart. At about 1:25 pm ET, the pair climbed to 438.15 from morning session's 2-week low of 434.95. Currently, the pair is worth 437.18.The US dollar that closed yesterday's trading at 10.5644 against the Mexican peso, weakened to 10.5433 by about 11:45 am ET, Wednesday. This set a lowest point for the pair since March 02, 2006. Thereafter, the dollar has strengthened slightly and is now trading near 10.57. The dollar has been weakening against the peso for the past two days.Against the Colombian peso, the dollar weakened on Wednesday New York trading. The pair dropped to 1823.50 by about 9:10 am ET, compared to yesterday's close of 1831.50. As of now, the pair is trading at 1825.00.The US currency edged down against Peru's Nuevo Sol during New York afternoon trading on Wednesday. The pair dropped to a new multi-year low of 2.7205 at about 4:17 pm ET, versus Tuesday's New York session close of 2.7488.Forex - Dollar Bounces Back From Multi-year Low Against Mexican Peso [USD/MXN]4/2/2008 4:41:32 PM After hitting a new multi-year low at noon ET, the dollar bounced back against the Mexican Peso during Wednesday afternoon trading in New York. At about 3:50 pm ET, the dollar reached 10.5870 against the Mexican peso, up from a low of 10.5433. The pair closed yesterday's deals at 10.5644. As of now, the dollar is quoted at 10.5735 versus the Mexican Peso.

Tips For Global Forex Trading

2008-04-02T17:50:00.000-07:00

You’ve decided to become a trader on the Forex market but since you’ve never played on the currency market you aren’t sure where to start. Not to worry – we’ve got some great tips for global Forex trading,
Forex is the foreign exchange market where currencies are bought and sold. It began back in the 1970’s with the introduction of free exchange rates and floating currencies. Thanks to the internet more and more people are able to reap the profits of the currency market with global Forex trading.
This is a market that trades as over US$1 trillion a day. It trades more than any other market. There are some distinct differences in the currency market compared to the stock market. Money moves much faster so no single investor has the ability to actually affect market price and trades are able to open and close within seconds which is not possible on the stock market.
To start your global Forex trading you need to open a Forex account. Just fill in the application and the sign the margin agreement which let’s the broker intervene at any time. That makes sense since it’s the broker’s money that just makes sense.
You need to choose a trading strategy that works for you. Different strategies work for different traders to don’t try to makes something work, instead find the right trading strategy for you.
It’s important to understand that trends move prices so a smart investor will make trends their friend and even go so far as to examine historical trends.
The top five currency pairs are USD/Yen, Euro/Yen, Swiss franc/USD, Pound USD/ and the Euro/USD. Make sure you know and understand them.
Examine the charts at 1 hour, 4 hour, and daily. This will give you the daily trends and plenty of opportunity to trade. Sure you can trade every 15 minutes if you like but that’s not really practical.
Now that you’ve got all your global Forex trading tips you’re ready to see some profits.
This entry was posted on Sunday, May 6th, 2007 at 11:45 am and is filed under Forex Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

History of the Foreign Exchange

2008-04-02T17:49:00.000-07:00

Until the mid-seventies, major industrial economies were governed by the Bretton Woods agreement of 1944. The Bretton Woods agreement—which was named after the location of the international conference establishing this new monetary order—obliged participating international economies to peg their currencies to the dollar, which itself remained within a 1% standard deviation from the prevailing gold rate.The architects of the Bretton Woods agreement hoped to prevent countries from artificially devaluating currencies, in order to make goods more attractive in the international marketplace, which led, in part, to a disastrous shrinking of the world economy in the 30s.The system they established lasted for the next three decades. Shrinking confidence in the dollar, however, lead to a new international monetary system of floating rates, meaning that regular market forces, rather than governmental intervention, would determine the value of currencies. It was from this new system that the modern Forex market arose.In a floating exchange rate system, market demand determines the relative value of currencies. Such a system is thought of as self-correcting, as any inefficiency is hammered out in the market. If, for instance, global demand for a particular currency falls, goods will become cheaper, and thus the value will begin to rise with the newly created demand.In a floating exchange system, traders can exploit inefficiencies before the market corrects itself. These traders are called arbitrageurs, and they are able to utilize online brokers to execute their trades. If you are interested in beginning to trade in the Foreign Exchange, please visit our broker’s page to find a broker suitable for you.
This entry was posted on Wednesday, November 7th, 2007 at 11:10 am and is filed under Forex Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Choosing Forex Trading Software

2008-04-02T17:47:00.002-07:00

If you plan to start trading with Forex online you will need the right software system to give you the ability to collect information on market prices and make Forex trades quickly and easily. There are two types of Forex software available. One is web based while the other is client based.
The Forex market is a high paced fast moving market and to make good trades you need good information and with the right software and a high speed internet connection everything you need is only mouse click away. You just need to decide on which software is best for you.
Client based Forex trading software is downloaded and then installed on your computer. The biggest draw back to a client based system is that you can only access it from the computer on which it is installed. You also need to be concerned with the security on your system.
Web based software lets you login in with an internet connection and you can use any computer anywhere. Web based software tends to less vulnerable to viruses and hackers because of the high security implemented.
Whether you use web based or client based it needs to provide you with real time quotes and the means to quickly buy and sell on the market. If you choose client based software it pays to pay the fee that ensures you software updates because there are regular changes.
Brokers house your client information on two servers in two different locations for security and safety of your data. So for example if a server has a power failure the data is automatically transferred to the other server and you won’t even realize there was an interruption. Brokers also back up their server using an ongoing system so nothing is ever lost.
You may have found your calling with Forex. There is plenty of money to be made on the currency market. The first step is taking a little risk, the next step is choosing the right Forex trading software, and finally you’ll reap the rewards in profits.

Tips For Global Forex Trading

2008-04-02T17:47:00.001-07:00

Fundamental or Technical analysis: which one is for you?

2008-04-02T17:46:00.001-07:00

The fundamental analyst in Forex attempts to draw overall conclusions concerning the economic health of a particular economy based on political, social and economic indicators. Based on these conclusions, fundamental analysts determine whether a particular currency is over or undervalued, and trade accordingly.While fundamental analysis is useful in determining the overall health of an economy, the number of factors contributing to the health of an economy may condemn the fundamental trader to a life of constant analysis. And while, when a conclusion is drawn, a fundamental analyst can confidently hold a long term position, some might say they are missing out on other profitable opportunities.Unlike the Fundamental analyst, Technical analysts believe that all the forces impacting currency price are instantly factored into the market. Eschewing news trading, the technical analyst attempts to construct forecast models for particular currencies based on previous market activity, as reflected in the charts.There are certain patterns that continuously appear in online Forex movements, and if a particular pattern can be recognized before it is complete, online traders can make substantial profit.Beneath the sound and fury of seemingly arbitrary price fluctuations, the technical analysts locates identifiable patterns in the charts. Certain patterns that continuously appear in currency movements—such as head and shoulders, ascending and descending triangles, and wedges, to name a few—and technical traders look for these in order to identify entry and exit points.Some brokerages provide complimentary advanced charting features, complete with dozens of indicators and tools used to aid in technical analysis.

Why trade on the Foreign Exchange?

2008-04-02T17:45:00.001-07:00

There are tons of reasons!-The high level of liquidity ensures instantaneous order executions in most market conditions.-24 hour trading! The major Foreign Exchange centers are located in New York, London, and Hong Kong. The end of one trading day is the beginning of another. Traders are able to trade at any convenient time, no matter where their location. Furthermore, traders can always react quickly to any market altering news.-Because of the immense size of the market, no single actor can substantially impact the market. Even multibillion dollar transactions are a relatively small percentage of the overall market, and can alter prices only slightly, and in the short term.-Investors can trade on very high leverage, controlling large positions with relatively small amounts of money. Of course, while a movement in the trader’s favor results in large earnings relative to investment, movement against the position can result in the investment being wiped out. Using high leverages can be both risky and rewarding.- Unlike, for instance, the stock market, in which traders must be familiar with hundreds of stocks, a online Forex trader need only be familiar with a few currencies.-Whether a given currency is rising or falling, investors have the same profit potential. The Foreign Exchange is truly always a bull market.Experience the online Forex market for yourself! Give one of our reviewed brokers a test drive. Sign up for a demo account, and gain instant access to the world’s largest market.

History of the Foreign Exchange

2008-04-02T17:44:00.001-07:00

Forex Scalping

2008-04-02T17:43:00.001-07:00

Forex scalping is a trading strategy in which the trader makes dozens or even hundreds of trades daily, looking to capture a few pips per trade. Generally, scalpers stay in trades for less than a minute, bolting as soon as their position captures a few pips.Brokers do not look kindly upon scalpers, as many times scalpers will exit a position before the dealing desk has time to deal your order. This means that the brokerage has to eat the position—a successful scalper will consistently earn money—money that comes directly from the brokerage’s pocket.To avoid this conflict of interest between scalpers and the brokerages, scalpers often trade with electronic communication network (ECN) brokerages, which circumvent the dealing desk allowing online traders to trade directly with one another. ECN brokerages usually have less liquidity than traditional dealing desk brokerages and charge a per trade commission, but their pip spreads are narrower.To be a successful online Forex scalper, traders must follow strict risk management rules. Because the scalper grabs only a couple of pips at a time, one big loss can wipe out dozens and dozens of careful, meticulous trading. Traders should be sure to use stop loss orders, ensuring that the profit/loss margin on each trade is very small.

Carry Trading

2008-04-02T17:42:00.000-07:00

The carry trade is a popular online Forex strategy which takes advantage of the different interest rates between two currencies. If one currency has a relatively low interest rate it can be sold against a currency with a high interest rate and the trader may pocket the interest rate differential. Speculators are guaranteed rollover interest deposits in their account at the end of each trading day. This can provide a significant boost to trader’s profit. If, for instance, an investor buys the NZD against the JPY, which have interest rates of 7.25 and .25 respectively, the trader can make a profit of 7% provided the market doesn’t move.However, even when exploiting interest rate differentials, there are still significant risks to a trader. Obviously, the market can still move against the trader’s position, though the rollover interest adjustments do help mitigate potential losses. Considering that most carryover traders use exceptionally high leverages to exploit interest rate differentials, even a small move against a position can lead to very high losses.

The Foreign Exchange

2008-04-02T17:41:00.000-07:00

The Foreign Exchange is the largest financial market in the world, with trillions of dollars traded each and every day. Initially utilized just by large banks, multinational corporations and extremely wealthy currency speculators, the influx of online brokerages tailored to the retail market has created a vibrant retail foreign exchange market! Now, with a relatively small initial investment, anyone with an internet connection can take advantage of the online Forex market.While banks and large multinational corporations generally execute foreign exchange transactions simply as a function of doing international business or to hedge their base currency to protect against devaluation, currency speculators exploit fluctuations in the foreign exchange market exclusively for profit. While trading currencies is a bit riskier than trading other instruments, like stocks and commodities, the potential for profit is unparalleled. For example George Soros, perhaps the most successful Forex trader, made $1 billion in a single day when he sold the pound against the dollar in 1992.The major currencies traded on the foreign exchange are the US dollar, the Eurodollar, the Japanese Yen, the Swiss Franc, and the British Pound. These different currencies are expressed as pairs. When these pairs are traded, one of the currencies is bought and the other currency is sold concurrently. Today, anyone with an internet connection can trade these pairs under the same conditions once reserved for high value individuals and corporations. Most retail brokerages offer real time currency prices, instant execution, advanced charting features and extensive real time news and analysis feeds.If you are interested in trying out the foreign exchange, we have assembled a list of quality brokerages that offer free “fake money” accounts where one may trade in real market conditions. Not only is their immense profit potential in the Foreign Exchange market, it is quite exhilarating as well. Why not give it a shot?

Whither the dollar?

2008-04-02T17:40:00.000-07:00

Strong U.S. consumer price data led to a lower than expected federal reserve interest rate cut, causing the strongest one-day dollar rally against the Euro since May, 2005. By the end of the day Friday the 14th, the Euro fell 1.5 percent to 1.4412, the lowest it has been since October. This is the third week in a row that the dollar has rallied against major currencies.Strong consumer spending reports have served to partially abate worries that the mortgage crisis would force the US economy into a recession, and widespread inflationary concerns would seem to point to a continued conservative approach to interest rate cuts by the feds, which is more good news for the greenback.Many analysts are now predicting the dollar rally will continue in the short term, fingering 1.43—or even 1.40—as reasonable support levels. Moreover, there has been a rising chorus of voices saying that the dollar will rebound in 2008, due to shrinking budget and trade deficits. If we are correct in assuming that the Fed will be conservative in cutting interest rates, this will lead to an increased international appetite for investment in the US market, creating greater demand for the dollar.On the other hand, we are wary that the dollar rally is simply a correction, rather than a trend reversal. Furthermore, we would not be surprised to see another test of the $1.50 level in the short term, even if prospects for the dollar are good in 2008.

How do I get started in Forex?

2008-04-02T17:32:00.000-07:00

Do you see the profit potential in trading currencies, but learning to trade just seems too daunting? Have you watched with excitement the recent crashing of the value of the USD, but simply don’t know how to get started trading?
While it is simple to begin trading Forex online, maintaining profitability in the long term is no easy task. You have probably heard that 90% of Forex traders lose their money in the long term. If indeed this is true, it is the result of a couple of different factors.
Overtrading: Each trade costs you a couple of pips—Consider your trades well before you make them. Each faulty trade, even if exited quickly, drains equity.
Bad money management: One bad trade can wipe out a year of patient, smart trading. Manage your risk using stop loss orders, so that you never risk too high a percentage of your equity on any one single trade.
Lack of knowledge: If you have never traded Forex before, educate yourself! Successful traders are not born that way. The difference between success and failure in the Forex market depends in no small part on the knowledge and education of a trader. For the beginning trader, a proper education is essential before investing in the Foreign Exchange. Find a program you are comfortable with, and begin practicing on a demo account.
Trading on the foreign exchange offers unparalleled opportunities for profit, but it is also extremely risky. Make sure you know what you are getting into before you start trading, and start trading only when you are comfortable in your knowledge and ability.

What's Forex?

2008-04-02T17:28:00.000-07:00

Forex" stands for foreign exchange; it's also known as FX. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. Currencies trade in pairs, like the Euro-US Dollar (EUR/USD) or US Dollar / Japanese Yen (USD/JPY). Unlike stocks or futures, there's no centralized exchange for forex. All transactions happen via phone or electronic network. Who trades currencies, and why? Daily turnover in the world's currencies comes from two sources:
Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.
Speculation for profit (95%). Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs. The world's biggest market, trading 24 hours a day With average daily turnover of US$3.2 trillion, forex is the largest market in the world. A true 24-hour market from Sunday 5 PM ET to Friday 5 PM ET, forex trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond immediately to currency fluctuations, whenever they occur - day or night.
More Info "All About the Foreign Exchange Markets in the United States", from the Federal Reserve Bank of New York.

forexglossary

2008-04-02T16:59:00.000-07:00

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

Best Forex Why Easy-Forex™ Trading Platform?

2008-04-02T16:58:00.000-07:00

Freeze the Rate you see and trade Forex onlineWhen 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 forx learn forex new very new

2008-04-02T16:55:00.000-07:00

New to ForexWhen 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/SIf 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 systemCurrencies 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 hoursThe 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 marginsA 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 marginRollover 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 bestDefine 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 exchangeForeign exchange glossary.Spreads and margin requirements.Execution methodology.Trading examples.Forex order types.Phone trading terminology.Trading with a strategy.
Posted by highprotection at 5:19 PM

trade on line

2008-04-02T16:47:00.000-07:00

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
Posted by highprotection at 7:10 PM 0 comments

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
Posted by highprotection at 7:09 PM 0 comments