Forex

Forex China 2010

2010-08-03T09:37:00.000-07:00

After the major downturn of the global economy, 2010 is predicted as a recovery. The foreign exchange business, constitutes the largest business component of the global financial market, is experiencing a paradigm shift. Although China remained a speedy increase in 2009, the foreign exchange related policies in 2010 will definitely change according to the bounce-back.
Risk management becomes the primary driver of change in FX dealing. The re-pricing of services to accurately reflect credit, operational and settlement risks inherent in running an FX business in today’s uncertain environment has shifted the resource mix at major dealers. Over the past year in particular, businesses that benefited from the rapid growth of the market, such as FX prime brokerage, have been redefined to focus on the most profitable of clients. This has come to the benefit of retail platforms that have picked up the smaller institutional business, alongside the still-booming retail trading community. The effort to ensure that businesses continue to run profitably and smoothly means that advances in technology will remain business-critical. The evolving role of the incumbent systems and new initiatives will be paramount to the future growth of this markets.

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Money From Forex 2010 My Forex Hubs

2010-08-03T09:36:00.000-07:00

Learn Forex CurrencyLearn how to convert currencies and note the difference in values, when you begin trading on Forex, as well as how currencies are exchanged between international lines...
About Stock MarketYou need to have a preparation and knowledge about stock maket this are the keys to success in any business. You also need to know the amount of money you plan to invest to make a profitable financial...
Best Online Stock TradingWhat is the best online stock trading ? If want to be able to trade easily and cheaply, and have good, clear records for taxes you wil need to know what is the best online stock trading companys.I give you...
Learn To Trade ForexNow you become somewhat acquainted with the way forex trading market works, from my other hubs (the links are below) so you understand to a point what trading on Forex Market implicated.Now you need to know...
Money Market All About Forex TrendsHere wi'll talk about money market and about forex trends. First let's talk about making decisions in the beginning .Before you become comfortable with the process of trading you need to stay away from...

Money From Forex 2010

2010-08-03T09:35:00.000-07:00

Money From Forex 2010
How to make money from forex is a good question !
"Foreign Exchange Market or" Forex "or" FX "is the largest financial market in the world with a daily circulation of more than a $ trillion Foreign Exchange Market is a complex interchange, which trades large sums of money, by actors in the market at a rate set at a certain date, in a certain time, in order to change (conversion) of currencies against each other.
Market was formed in the '70s, when international trade switched from the system fixed courses at floating rates system.
Forex does not have a physical location or a hub and other financial market but operate with banks, corporations and individuals all over the globe 24 hours of 24, except on weekends.There are 2 reasons to buy and sell currencies. About 5% of daily turnover is generated by companies and governments that buy or sell products and services in a foreign country, or who had to cover profits made in foreign currency, in national currency. The remaining 95% is the profit or speculative transactions. "
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Forex Supersonic

2010-08-03T09:27:00.001-07:00

You can see right through this guy, and I think you’ll like what you see. I know I did.
Forex Supersonic
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Forex Supersonic Official Site

What is Forex?

2010-08-03T09:27:00.000-07:00

Forex and ‘FX’ are shortened terms used for ‘foreign exchange’. Foreign exchange is the exchange of money from different countries. The value of one country’s currency is constantly changing against the value of another country’s currency. Forex traders make money through buying and selling currencies on the foreign exchange market.
What is the foreign exchange market? Markets are places to trade goods, and the same goes for Forex. The Forex ‘goods’ are the currencies of various countries. The Forex market is a money market that never stops. It is the “market”, anywhere in the world, where any exchange of currencies is made. It operates 24 hours a day, on computers all over the world. Foreign exchange market conditions can change at any time because events that happen across the world affect the value of money. The Forex market is the largest market in the world where trading between banks, organizations, investors and individuals happens. More than 2.5 trillion US dollars is traded every day. That comes to almost 29 million USD every second!
How to make money trading in Forex The profit potential comes from the fluctuations (changes) in the currency exchange market. You make money by buying a currency at a particular rate (or price) and selling it again for more than you bought it. The market is highly volatile which means it is constantly changing and therefore offers greater chances to profit but also greater risk. The incentive to trade in Forex is that regular daily fluctuations, say - around 1%, are multiplied by 100.
How Risky is Forex Trading? Losses are unlimited unless you have a 'Stop Loss' on your position. At Easy-Forex® there is always a Stop Loss therefore you cannot lose more than your ‘margin’, the money you are prepared to risk and the rolling fee if it's a Day Trade transaction. However, Forex is risky so only risk what you can afford and is not vital to your well-being.Forex trading can be very risky if you don't use proper risk management. Forex is considered to be one of the most risky forms of investing because of the availability of leverage. New forex traders can minimize the risks by learning proper risk management and developing a solid trading plan.

What is Forex (Foreign Exchange)?

2010-08-03T09:26:00.000-07:00

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers. Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets. MG Financial, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's DealStation™ allows them to participate in FOREX trading by providing a combination of live quotes, Real-Time charts, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis.

Trading systems on the web

2010-08-03T09:21:00.000-07:00

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Here are few places on the web - Forex Forums - where users post their trading systems. (Forexopia.com does not endorse any of them) These links are provided as a courtesy.
Forex Factory Trading systems
Trading System - FX Fisherman
Forex Trading Systems - Leverage FX
The Holy Grails - Free forex trading systemsNote: Every one of us has had atleast one-successful trade. Many of us spend way too much time figuring out BAD trades - when we should spend double the time figuring out GOOD trades - what did I do that made me profit? - what were the settings? - can I replicate the same results?.

If you can replicate any of your successful trades 7 times out of 10. You have a trading system. Period.

Go. Figure out your good trades. And you will come up with a great trading system.

Need rules - an idea to create trading system - read Steps to create your trading system

Forex Trading Guide

2010-08-03T09:19:00.001-07:00

If this is your first time coming across the online Forex market, then you've come to the right place.
This guide will provide you with the basic knowledge, tools and techniques a novice Forex trader should have as you take your first steps in the fascinating world of Forex.
Many of the trading concepts introduced here are explained in greater detail in later chapters of the guide.
If you are unclear about any Forex term you come across here, be sure to refer to the glossary of terms on our website.
If you are reading this guide, you have most likely taken some sort of interest in the Forex market. But what does the Forex market have to offer you?

Fundamental Analysis and Forex: A Beginners Guide

2010-08-03T09:15:00.002-07:00

Every time you hear someone talking about analyzing the Forex market they usually tout Technical and Fundamental Analysis. They talk about the need to use both in your analysis and then do very little to tell you how to do this. And while most traders are familiar with Technical Analysis it is hard to pin down exactly what Fundamental Analysis consists of, particularly for the forex market. Most traders are left with questions like"I don't get it" Is there a PE ratio of Japan?? Well, sort of. Fundamental Analysis differs for the Forex market just a bit but the same basic principles apply.
Fundamental analysis for the Forex market examines the macroeconomic indicators, asset markets and political considerations of one nation's currency as opposed to another. Macroeconomic indicators include things such as growth rates (Gross Domestic Product), interest rates, inflation, unemployment, money supply, foreign exchange reserves and productivity. Other macroeconomic indicators include the CPI " a measurement of the cost of living, and the PPI " a measurement of the cost of producing goods. Asset markets are made up of stocks, bonds and real estate. Political considerations influence the level of confidence in a nation's government, the climate of stability and level of certainty.
There is a basic rule of thumb that says a currency can become more valuable in two main ways: when the amount of currency available in the world market place is reduced (for example, when the US Fed increases the interest rates and causes a reduction in spending), or when there is an increase in the demand for that particular currency. But there are also many little influences that can nudge the currencies value enough for the retail forex trader to make (or lose) a substantial amount.
Let's take a moment to examine some of the Fundamental information that has the potential to move the forex market.

Forex

2010-08-03T09:15:00.001-07:00

Forex or Foreign Exchange trading is the exchange of currency. The daily transaction of the foreign exchange market is $2.5 trillion. In the foreign exchange market a trader trades one currency for another. Buying Euros with US dollars or selling pounds for euros can be a typical example of a foreign exchange transaction.
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The profit in a currency exchange trade comes from the small fluctuations in the value of one currency against another. Leveraging is a strategy which is adopted by traders to maximize their gains in a currency trade. A trader can trade $100, 000 by making an investment of $1000. However, foreign exchange trading is a risky business and traders can lose their entire investments if they are not careful with choosing the right currency pairs at the right price. It's usually adviced to read stock market reviews before entering the market.
95% of forex trade happens for speculative purpose. The rest 5% is for hedging purpose adopted by corporate houses to reduce their risk to currency fluctuations. There are 3 components of a forex trade namely the currency pairs, the principal amount and the agreed rate of exchange.
Some commonly used terminologies in a forex trade are “spread” and “pip”. Spread in the difference between the BID and ASK price of the currency pair. Pip is the smallest increment that takes place in price fluctuations in a currency. It is the fourth decimal digit in the currency rate. Global forex markets operate 24 hours a day over 5 days in a week. It is a highly liquid market giving traders the option to trade in different currency pairs in different markets. A trader can trade in the Japanese market in the morning and by day end close a deal in the US market. There are various risk management tools which gives traders the option to minimize their losses and maximize gains in any forex trade.

Introduction to Foreign Exchange Markets

2010-08-03T09:11:00.002-07:00

The forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets, hence investments appreciate or depreciate in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events. The main enticements of currency dealing to private investors and attractions for short-term forex trading are:
24-hour trading, 5 days a week with access to global forex dealers
An enormous liquid market making it easy to trade most currencies
Volatile markets offering profit opportunities
Standard instruments for controlling risk exposure
The ability to profit in rising or falling markets
Leveraged trading with low margin requirements
Many options for zero commission trading Forex trading The investor's goal in forex trading is to profit from foreign currency movements. Forex trading is always done in currency pairs. When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position. Private investors can trade in forex directly or indirectly through:
The spot market
Forwards and futures
Options
Contracts for difference
Spread betting It is estimated that anywhere from 70% to 90% of the forex market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency. Exchange rate Currencies are traded in pairs and exchanged one against the other when traded, so the rate at which they are exchanged is called the exchange rate. The majority of the currencies are traded against the US dollar (USD). The four next-most traded currencies are the euro (EUR), the Japanese yen (JPY), the British pound sterling (GBP) and the Swiss franc (CHF). These five currencies make up the majority of the market and are called the major currencies or "the majors". Some sources also include the Australian dollar (AUD) within the group of major currencies. Margin Banks and/or online trading providers need collateral to ensure that the investor can pay in case of a loss. The collateral is called the margin and is also known as minimum security in forex markets. In practice, it is a deposit to the trader's account that is intended to cover any currency trading losses in the future. Margin enables private investors to trade in markets that have high minimum units of trading by allowing traders to hold a much larger position than their account value. Leveraged financing Leveraged financing is the use of credit, such as a trade purchased on a margin. It is very common in forex trading, and results in being able to control $100,000 for as little as $1,000. Risks Although Forex trading can lead to very profitable results, there are risks involved: exchange rate risks, interest rate risks, credit risks, and country risks. Approximately 80% of all currency transactions last a period of seven days or less, while more than 40% last fewer than two days. Given the extremely short lifespan of the typical trade, technical indicators heavily influence entry, exit and order placement decisions.

Stock Exchanges

2010-08-03T09:11:00.001-07:00

A list of Stock Exchanges Worldwide and other foreign currency exchange resources. A stock exchange or share market is a corporation or mutual organization which provides Trading Facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends.

Forex Brokers Directory

2010-08-03T09:07:00.000-07:00

Choosing the best forex broker is important. The best currency trading broker provide you the services you're looking for. Here at FOREX.pk you'll find information, so you can better choose a forex brokerage firm for yourself. Foreign Exchange Currency trade is conducted via an international network of forex brokers. Until recently, the forex market was confined to larger brokers, major international commercial and investment banks, international money brokers and currency traders.

Forex: GBP/USD rises further to 1.5165

2010-07-17T23:05:00.000-07:00

Forex: GBP/USD rises further to 1.5165
FXstreet.com (Córdoba) – The Dollar is plummeting across the board as stocks rocket in Europe and in Wall Street. GBP/USD rose further to 1.5165 reaching a fresh intra-day high. The pair broke above 1.5130 and jumped 40 pips favored by current market sentiment.

THeEDgeFX Usdcad

2010-07-17T23:02:00.000-07:00

THeEDgeFX Usdcad
THeEDgeFX Usdcad Expert Advisor strategy combines a pioneering pattern recognition technology along with innovative market level indicators to create a truly dynamic system adjustable to all market conditions.

Leverage Forex – What Is Leverage In Forex?

2010-07-17T23:00:00.000-07:00

Leverage Forex – What Is Leverage In Forex?
The forex deals are accomplished in a plethora and every lot consists of 100,000 units of any particular distant currency, to purchase one single lot of foreign exchange a lot of investment is vital and that may run to hundreds of dollars of thousands of dollars which means the minute investors are left out of the fray. For this actually purpose the concept of leverage was introduced in the forex trade. Leverage backed providing credit, these kinds of as a outside edge account is very ubniquitous in Forex trade. The leverage consideration in which Forex can be sold for a combination of cash or collateral, what the broker accepts is rather popular amidst the forex traders. Usually the leverage in the margined account is collateralized by the earliest deposit made by you in the account, if the value of the trade goes low significantly next the broker may ask you to either deposit more and more cash, or sell a portion of your holding. Leverage Forex Margin requirements and interest vary among broker/dealers. The amount of leverage you use will depend on your broker and what you feel comfortable with. You can get leverage from a high as 1% with some brokers. This means you can control $100,000 with the investment of only $1,000. The broker sets a minimum account size also known as account margin or initial investment. Once you have deposited the required sum you will be able to trade in the forex market. The minimum security for each lot usually varies from broker to broker. While with the brokers you should be well aware of the Margin call. Suppose for any reason, if the broker thinks that your holdings are in danger and your losses are approaching your margin quite fast. He may ask you to deposit more money, or dispose your holding of the forex lots to limit your risk and his risk. Another term is quite relevant in this connection and that is variation margin. Variation Margin is also very important and it is the amount of profit or loss your account is showing on the holdings of the forex lots. There is one more point to keep in the mind is that some brokers require a higher margin during the weekends. It all depends on your broker. The leverage accounts in the forex market have actually made the life easy for the small investors. These leverage accounts helps the small investors to buy the big lots of the foreign currencies and in turn allow them to earn handsome profits. They also act as the alarm bell for the unaware investor while making any loosing proposition and in case of the loss it restricts the amount of the loss of the investor to a bearable limit of the initial investment. Living an average life? Always want to have financial freedom? Check out Leverage Forex Program. It’ll change your Life Forever!

Fibonacci Killer – Unlimited Fx Trading

2010-07-17T22:58:00.000-07:00

Fibonacci Killer – Unlimited Fx Trading
Conversions Are Insane! Lethally Accurate Forex System Inc. System & Indicator Enabling Anybody To Make Shocking Amounts Of Money Trading The Forex Market With Only A Few Minutes A Day! Huge 70% Commission!

Forex: USD/JPY rebounds from 88.00

2010-07-17T22:55:00.000-07:00

Forex: USD/JPY rebounds from 88.00
FXstreet.com (Buenos Aires) – Despite general bullish tone seen in Japanese Yen since past Asian session, USD/JPY rebounded back up after testing the 88.00 level; pair bearish tone is being interrupted by good tone in stocks markets, with European and American indexes aiming to end the day with strong gains.

foreign direct investment

2010-07-17T22:54:00.001-07:00

Investment by a company or government of one country in production facilities in a different country. The direct investment may be by means of purchasing a foreign company or constructing production facilities as part of an existing business. For example, in 2001 Swiss-based Nestlé paid $10 billion to acquire U.S. pet food maker Ralston Purina. Also called direct investment.

foreign exchange controls

2010-07-17T22:52:00.000-07:00

foreign exchange controls
Restrictions that are imposed by a nation on the free exchange and convertibility of its own currency. Foreign exchange controls are most often instituted by countries whose currencies are weak and whose citizens prefer to hold and use the currencies of other nations. Institution of foreign exchange controls hinders foreign investors who wish to extricate their funds.

foreign exchange

2010-07-17T22:44:00.000-07:00

Transaction of international monetary business, as between governments or businesses of different countries.
Negotiable bills drawn in one country to be paid in another country.

foreign exchange - Business Definition
Foreign currency and financial instruments that can be used to make payments in foreign countries.
The purchase or sale of foreign currencies
foreign exchange risk
The risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced. For example, if an investor residing in the United States purchases a bond denominated in Japanese yen, a deterioration in the rate at which the yen exchanges for dollars will reduce the investor's rate of return, since he or she must eventually exchange the yen for dollars. Also called exchange rate risk.

Forex Glossary

2010-07-17T22:34:00.000-07:00

A TO C
Appreciation - A currency is said to 'appreciate ' when it strengthens in price in response to market demand.
Arbitrage - The purchase or sale of an instrument and simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets.
Around - Dealer jargon used in quoting when the forward premium/discount is near parity. For example, "two-two around" would translate into 2 points to either side of the present spot.
Ask Rate - The rate at which a financial instrument if offered for sale (as in bid/ask spread).
Asset Allocation - Investment practice that divides funds among different markets to achieve diversification for risk management purposes and/or expected returns consistent with an investor's objectives.
Back Office - The departments and processes related to the settlement of financial transactions.
Balance of Trade - The value of a country's exports minus its imports.
Base Currency - In general terms, the base currency is the currency in which an investor or issuer maintains its book of accounts. In the FX markets, the US Dollar is normally considered the 'base' currency for quotes, meaning that quotes are expressed as a unit of $1 USD per the other currency quoted in the pair. The primary exceptions to this rule are the British Pound, the Euro and the Australian Dollar.
Bear Market - A market distinguished by declining prices.
Bid/Ask Spread - The difference between the bid and offer price, and the most widely used measure of market liquidity.
Big Figure - Dealer expression referring to the first few digits of an exchange rate. These digits rarely change in normal market fluctuations, and therefore are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.30/107.35, but would be quoted verbally without the first three digits i.e. "30/35".
Book - In a professional trading environment, a 'book' is the summary of a trader's or desk's total positions.
Broker - An individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission. In contrast, a 'dealer' commits capital and takes one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party.
Bretton Woods Agreement of 1944 - An agreement that established fixed foreign exchange rates for major currencies, provided for central bank intervention in the currency markets, and pegged the price of gold at US $35 per ounce. The agreement lasted until 1971, when President Nixon overturned the Bretton Woods agreement and established a floating exchange rate for the major currencies.
Bull Market - A market distinguished by rising prices.
Bundesbank - Germany's Central Bank.
Cable - Trader jargon referring to the Sterling/US Dollar exchange rate. So called because the rate was originally transmitted via a transatlantic cable beginning in the mid 1800's.
Candlestick Chart - A chart that indicates the trading range for the day as well as the opening and closing price. If the open price is higher than the close price, the rectangle between the open and close price is shaded. If the close price is higher than the open price, that area of the chart is not shaded.
Central Bank - A government or quasi-governmental organization that manages a country's monetary policy. For example, the US central bank is the Federal Reserve, and the German central bank is the Bundesbank.
Chartist - An individual who uses charts and graphs and interprets historical data to find trends and predict future movements. Also referred to as Technical Trader.
Clearing - The process of settling a trade.
Contagion - The tendency of an economic crisis to spread from one market to another. In 1997, political instability in Indonesia caused high volatility in their domestic currency, the Rupiah. From there, the contagion spread to other Asian emerging currencies, and then to Latin America, and is now referred to as the 'Asian Contagion'.
Commission - A transaction fee charged by a broker.
Confirmation - A document exchanged by counterparts to a transaction that states the terms of said transaction.
Contract - The standard unit of trading,
Counterparty - One of the participants in a financial transaction.
Country Risk - Risk associated with a cross-border transaction, including but not limited to legal and political conditions.
Cross Rate - The exchange rate between any two currencies that are considered non-standard in the country where the currency pair is quoted. For example, in the US, a GBP/JPY quote would be considered a cross rate, whereas in UK or Japan it would be one of the primary currency pairs traded.
Currency - Any form of money issued by a government or central bank and used as legal tender and a basis for trade.
Currency Risk - the probability of an adverse change in exchange rates.
D to G
Day Trading - Refers to positions which are opened and closed on the same trading day.
Dealer - An individual who acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
Deficit - A negative balance of trade or payments.
Delivery - An FX trade where both sides make and take actual delivery of the currencies traded.
Depreciation - A fall in the value of a currency due to market forces.
Derivative - A contract that changes in value in relation to the price movements of a related or underlying security, future or other physical instrument. An Option is the most common derivative instrument.
Devaluation - The deliberate downward adjustment of a currency's price, normally by official announcement.
Economic Indicator - A government issued statistic that indicates current economic growth and stability. Common indicators include employment rates, Gross Domestic Product (GDP), inflation, retail sales, etc.
European Monetary Union (EMU) - The principal goal of the EMU is to establish a single European currency called the Euro, which will officially replace the national currencies of the member EU countries in 2002. On January 1st, 1999 the transitional phase to introduce the Euro began. The Euro now exists as a banking currency and paper financial transactions and foreign exchange are made in Euros. This transition period will last for three years, at which time Euro notes an coins will enter circulation. On July 1,2002, only Euros will be legal tender for EMU participants, the national currencies of the member countries will cease to exist. The current members of the EMU are Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.
EURO - the currency of the European Monetary Union (EMU). A replacement for the European Currency Unit (ECU).
European Central Bank (ECB) - the Central Bank for the new European Monetary Union.
Federal Deposit Insurance Corporation (FDIC ) - The regulatory agency responsible for administering bank depository insurance in the US.
Federal Reserve (Fed) - The Central Bank for the United States.
Flat/square - Dealer jargon used to describe a position that has been completely reversed, e.g. you bought $500,000 then sold $500,000, thereby creating a neutral (flat) position.
Foreign Exchange - (Forex, FX) - the simultaneous buying of one currency and selling of another.
Forward - The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based upon the interest rate differential between the two currencies involved.
Forward points - The pips added to or subtracted from the current exchange rate to calculate a forward price.
Fundamental analysis - Analysis of economic and political information with the objective of determining future movements in a financial market.
Futures Contract - An obligation to exchange a good or instrument at a set price on a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange-Traded Contacts - ETC), versus forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
Good 'Til Cancelled Order (GTC) - An order to buy or sell at a specified price. This order remains open until filled or until the client cancels.
H to N

Hedge - A position or combination of positions that reduces the risk of your primary position.
Inflation - An economic condition whereby prices for consumer goods rise, eroding purchasing power.
Initial margin - The initial deposit of collateral required to enter into a position as a guarantee on future performance.
Interbank rates - The Foreign Exchange rates at which large international banks quote other large international banks.
Leading Indicators - Statistics that are considered to predict future economic activity.
LIBOR - The London Inter-Bank Offered Rate. Banks use LIBOR when borrowing from another bank.
Limit order - An order with restrictions on the maximum price to be paid or the minimum price to be received. As an example, if the current price of USD/YEN is 102.00/05, then a limit order to buy USD would be at a price below 102. (i.e., 101.50)
Liquidity - The ability of a market to accept large transaction with minimal to no impact on price stability.
Liquidation - The closing of an existing position through the execution of an offsetting transaction.
Long position - A position that appreciates in value if market prices increase.
Margin call - A request from a broker or dealer for additional funds or other collateral to guarantee performance on a position that has moved against the customer.
Market Maker - A dealer who regularly quotes both bid and ask prices and is ready to make a two-sided market for any financial instrument.
Market Risk - Exposure to changes in market prices.
Mark-to-Market - Process of reevaluating all open positions with the current market prices. These new values then determine margin requirements.
Maturity - The date for settlement or expiration of a financial instrument.
Momentum investor - A market participant who increase market exposure when the market is rising and decreases exposure or goes short when the market is declining.
O to S

Offer - The rate at which a dealer is willing to sell a currency.
Offsetting transaction - A trade with which serves to cancel or offset some or all of the market risk of an open position.
One Cancels the Other Order (OCO) - A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.
Open order - An order that will be executed when a market moves to its designated price. Normally associated with Good 'til Cancelled Orders.
Open position - A deal not yet reversed or settled with a physical payment.
Over the Counter (OTC ) - Used to describe any transaction that is not conducted over an exchange.
Overnight - A trade that remains open until the next business day.
Pips - Digits added to or subtracted from the fourth decimal place, i.e. 0.0001. Also called Points.
Political Risk - Exposure to changes in governmental policy which will have an adverse effect on an investor's position.
Position - The netted total holdings of a given currency.
Premium - In the currency markets, describes the amount by which the forward or futures price exceed the spot price.
Price Transparency - Describes quotes to which every market participant has equal access
Quote - An indicative market price, normally used for information purposes only.
Rate - The price of one currency in terms of another, typically used for dealing purposes.
Resistance - A term used in technical analysis indicating a specific price level at which analysis concludes people will sell.
Revaluation - An increase in the exchange rate for a currency as a result of central bank intervention. Opposite of Devaluation.
Risk - Exposure to uncertain change, most often used with a negative connotation of adverse change.
Risk Management - the employment of financial analysis and trading techniques to reduce and/or control exposure to various types of risk.
Roll-Over - Process whereby the settlement of a deal is rolled forward to another value date. The cost of this process is based on the interest rate differential of the two currencies.
Settlement - The process by which a trade is entered into the books and records of the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another.
Short Position - An investment position that benefits from a decline in market price.
Spot Price - The current market price. Settlement of spot transactions usually occurs within two business days.
Spread - The difference between the bid and offer prices.
Sterling - slang for British Pound.
Stop Loss Order - Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49.
Support Levels - A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance.
Swap - A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Swissy - Slang for Swiss Franc.
T to Z
GO TO TOP
Technical Analysis - An effort to forecast prices by analyzing market data, i.e. historical price trends and averages, volumes, open interest, etc.
Tomorrow Next (Tom/Next) - Simultaneous buying and selling of a currency for delivery the following day.
Transaction Cost - the cost of buying or selling a financial instrument.
Transaction Date - The date on which a trade occurs.
Turnover - The total money value of all executed transactions in a given time period; volume.
Two-Way Price - When both a bid and offer rate is quoted for a FX transaction.
Uptick - a new price quote at a price higher than the preceding quote.
Uptick Rule - In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.
US Prime Rate - The interest rate at which US banks will lend to their prime corporate customers
Value Date - The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.Variation Margin - Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements. Volatility (Vol) - A statistical measure of a market's price movements over time.
Whipsaw - slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
Yard - Slang for a billion

Stock Markets

2010-07-17T22:25:00.000-07:00

Indian stock markets recovered some earlier losses on Friday.
The 30-share index Sensex marked its closure after making small gains owing to subdued worldwide signals.
The bellwether index Sensex belled the day on a quite note accompanying pessimistic Asian peers and continued the dispirited session amid instability during the entire day.
During the second half, buying activity took the broad-based Nifty above 5,400 levels but failed to sustain the mark.

It’s Vital For Common Man To Know Benefits Of Investing In Capital Market

Union Minister for Corporate Affairs Salman Kurshid stated that it is important for the common man to be acquainted with the plus points of making investments in the capital market through investor education programmes.

Sensex closes 46 points up

Lack of any major news allowed Indian equities market to trade within a narrow range only. Nevertheless it carried on the positive trail to end the day in green.
While the benchmark Bombay Stock Exchange Sensex closed 46.36 points or 0.26 per cent up at 17,955.82, the 50 scrip-based Nifty at the National Stock Exchange ended the day 15.15 points or 0.28 per cent up.
However, the broader indices outperformed the benchmarks, even if it's by a smaller margin, at both BSE and NSE.

24hr Forex Trading – Forex Trading Hours

2010-05-28T20:50:00.000-07:00

Open a forex account and enjoy a 24hr Forex Trading experience. Currencies are traded 24 hours a day, from Sunday afternoon EST* (Eastern Standard Time) to Friday afternoon EST. Through this 5+ day week of market activity, there is always at least one financial center open for business. Indeed, as some markets close for the night, others open somewhere else on the planet. Since forex trading hours overlap, currencies are being traded continuously. In other words, forex practically never stops.

Traders new to the world of foreign exchange tend to think that since the market is open 24 hours a day, they may trade whenever they choose during the day. Although this preconceived idea is actually true, it needs to be clarified. Indeed when it comes to forex trading hours, some hours present better opportunities than others. By better opportunities, we mean of course potentially greater profit. So what are the most suitable forex trading hours and why?

Usually, the best time to enter forex markets is when large volumes of currencies are traded. At those hours, traders can take full advantage of forex benefits. Since the forex market is traded 24 hours a day, the best time to enter is when several countries are trading at the same time. In each time zone across the world, forex markets operate from 8 am to 4 pm. So, to take advantage of heavy trading volume, the best is to look at when forex market hours in different countries overlap. Those hours are usually the time when the forex market is the most active and has thus the largest volume of trades and the biggest pip movements. It is when currencies are the most active that traders have a better chance of making some profit. Slow markets offer little chances of profit and therefore, forex traders usually stay out of them. When do forex trading times overlap?

Worldwide Forex Trading Hours:

To see when markets overlap, let's have a look at the different forex trading times in each main financial center across the globe. (Times are displayed according to EST) So here are the times when two trading sessions overlap:

New York and London: from 8 am to 12 am (EST)
Sydney and Tokyo: from 7 pm to 2 am
London and Tokyo markets overlap one hour, from 3 am to 4 am.

What does this mean? Trading EUR/USD, GBP/USD, or USD/CHF between 8 am and 12 am (EST) can lead to good results since markets for those currencies (European and American) are both active at the same time. This is when the largest volume of trades occurs, creating a greater chance of making significant profit in the forex market.

Another good time to trade is from 1 am to 3 am EST. As you can see in the table above, at that time, European markets are waking up while Asian markets are closing, offering good trade opportunities. The same goes for the 7 pm to 10 pm EST time period, when the Asian and Australian markets overlap.

Also, you have probably noticed that from 4 pm to 6 pm EST, there is no interesting overlap. That’s when the US markets close without overlapping any other large market. At those hours, the volume of trades is much lower, offering less great trade opportunities.

You can thus see that while you can take advantage of a 24hr Forex Trading experience, some hours will allow for better opportunities than others.

*EST = UTC** - 5 hours
**UTC= Coordinated Universal Time

While some hours of the day are busier than others, meaning that forex trading activity is greater at those hours, price fluctuation varies from day to day. As a general rule, some days of the week are busier than others. Whether in London, Tokyo, or the U.S., pip range movements for all 4 majors tend to be greater towards the middle of the week.

May 29, 2010 Rates updated at 08:39 AM

2010-05-28T20:40:00.000-07:00

Foreign Currency Unit	Buying Rate PKR	Selling Rates PKR	Change	History
U.S. Dollar (USD)	85.10	85.30	---------
British Pound (GBP)	122.51	123.01	---------
Euro (EUR)	104.23	104.53	---------
Swiss Franc (CHF)	72.71	73.41	---------
Canadian Dollar (CAD)	80.49	80.99	---------
Chinese Yuan (CNY)	12.45	12.75	---------
UAE Dirham (AED)	23.10	23.17	---------
Saudi Arabian Riyal (SAR)	22.65	22.70	---------
Bahraini Dinar (BHD)	224.17	225.67	---------
Kuwaiti Dinar (KWD)	289.44	291.44	---------
New Zealand Dollar (NZD)	56.33	57.83	---------
Qatar Rial (QAR)	23.22	23.37	---------
Australian Dollar (AUD)	71.61	72.11	---------
Singapore Dollar (SGD)	59.76	60.46	---------
Hong Kong Dollar (HKD)	10.68	10.93	---------
Swedish Krona (SEK)	10.64	10.84	---------
Norwegian Krone (NOK)	12.95	13.10	---------
Danish Krone (DKK)	13.83	14.03	---------
Indian Rupee (INR)	1.77	1.82	---------
Japanese Yen (JPY)	0.92	0.93	---------
Malaysian Ringgit (MYR)	25.80	26.10	---------
Omani Rial (OMR)	219.48	220.98	---------

WORLD FOREX: Dollar steps forward Vs Rupee

2010-05-28T20:37:00.000-07:00

KARACHI: The dollar gained strength versus the rupee in the interbank market, dealers said on Tuesday.

The dollar initiated the day’s trading at Rs 84.55 for buying, appreciated by 10 paisas and closed at Rs 84.65 for buying and Rs 84.70 for selling.

Look at Dollar in open market currency rates

Other Currencies Vs Rupee: The euro shed strength versus the rupee, as it started the day’s trading at Rs 104.57 for buying, depreciated by Rs 1.26 and closed at Rs 103.31 for buying and Rs 103.51 for selling. Similarly, the pound sterling remained low versus the rupee, as it started the day’s trading at Rs 121.57 for buying, lost 70 paisas and closed at Rs 120.87 for buying and Rs 121.07 for selling.

The dollar appreciated versus the rupee, dealers said. The dollar commenced the day’s trading at Rs 84.50 for buying, gained 20 paisas and closed at Rs 84.70 for buying and Rs 84.85 for selling. The euro also recorded losses versus the rupee, as it started the day’s trading at Rs 104.40 for buying and after losing Rs 1.95 closed at Rs 102.45 for buying and Rs 102.95 for selling.

see forex rates in Pakistan

The pound sterling also recorded losses against the rupee, as it initiated the day’s trading at Rs 121.25 for buying, depreciated by Rs 1.35 and closed at Rs 119.90 for buying and Rs 120.40 for selling.

FOREX RATES

2010-05-28T20:35:00.000-07:00

Currency	Buying	Selling
Australian Dollar	72	73.5
Canadian Dollar	80.6	82.8
China Yuan	12.5	12.9
Euro	104.75	106
Japanese Yen	0.924	0.934
Saudi Riyal	22.58	22.75
U.A.E Dirham	23.08	23.33
UK Pound Sterling	123.8	125.3
US Dollar	84.95	85.25

History of the exchange in Japan

2010-05-28T20:24:00.000-07:00

In modern, the electric banking makes us possible to settle on the ledger. It becomes very easy to send money from A bank to B bank. The system has been changed and both A bank and B bank have to hold their own current accounts in each counterparty.

The recent system has greatly changed. The central bank takes a main roll of financial markets. The Bank of Japan falls on it and the central bank behaves as the bank for banks. All banks in the private section are forced to have their own current accounts in the central bank accordingly to the reservation system regulated by BOJ acts.

It is the basic that the banks collect a lot of deposits to make loans, but they cannot loan out all the deposits because it means they have no room to withdraw any more. The reservation system helps banks in trouble by huge withdrawal at the same time, which requires some proportion of their liability to be reserved in the current account in the central bank. These current accounts makes it possible that the banks in private section can settle each other. In short, each bank send their money to another through the central bank.

Assuming that Mr. Taro in Tokyo would send the money to Ms. Hanako in Osaka, and Taro would go to the A bank in order to send money to B bank in which Hanako has her savings account. A bank have to take the relevant action to shift money in the Zengin system from A bank to B bank. Here, the Zengin system is used to offset all the balances relating to Yen transactions and the shortage arising from the Zengin system needs to adjust in the current account in the central bank. In this way, Ms Hanako gets the money without delay.

The domestic exchange generally means like this remittance workflow. For your information, the Bank of Japan is called as "Nippon Ginko" in Japanese as you can take a look at the bill at hand.

How to Trade Forex

2010-05-28T20:19:00.000-07:00

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

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

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

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

Forex Trading Basics

2010-05-28T20:14:00.000-07:00

The global foreign exchange market is the biggest market in the world. The 3.2 trillion USD daily turnover dwarfs the combined turnover of all the world's stock and bond markets.

There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading.

Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.

In the following article, we would like to introduce you to some of the basic concepts of foreign exchange trading. If you would like any further information, we suggest that you sign up for a FREE Membership on this website, where you will be able to exchange views with other Forex traders and get answers to any questions you might have.

Margin Trading

Foreign exchange is normally traded on margin. A relatively small deposit can control much larger positions in the market. For trading the main currencies, Saxo Bank requires a 1% margin deposit. This means that in order to trade one million dollars, you need to place just USD 10,000 by way of security.

In other words, you will have obtained a gearing of up to 100 times. This means that a change of, say 2%, in the underlying value of your trade will result in a 200% profit or loss on your deposit. See below for specific examples. As you can see, this calls for a very disciplined approach to trading as both profit opportunities and potential risks are very large indeed. Please refer to our page Forex Rates & Conditions for current Spreads, Margins and Conditions.

Base Currency and Variable Currency

When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other.

The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this.

Dealing Spread, but No Commissions

When trading foreign exchange, you are quoted a dealing spread offering you a buying and a selling level for your trade. Once you accept the offered price and receive confirmation from our dealers, the trade is done. There is no need to call an exchange floor. There are no other time-consuming delays. This is possible due to live streaming prices, which are also a great advantage in times of fast-moving markets: You can see where the market is trading and you know whether your orders are filled or not.

The dealing spread is typically 3-5 points in normal market conditions. This means that you can sell US dollars against the euro at 1.7780 and buy at 1.7785. There are no further costs, commissions or exchange fees.

This ensures that you can get in and out of your trades at very low slippage and many traders are therefore active intra-day traders, given that a typical day in USDEUR presents price swings of 150-200 points.

Spot and forward trading

When you trade foreign exchange you are normally quoted a spot price. This means that if you take no further steps, your trade will be settled after two business days. This ensures that your trades are undertaken subject to supervision by regulatory authorities for your own protection and security. If you are a commercial customer, you may need to convert the currencies for international payments. If you are an investor, you will normally want to swap your trade forward to a later date. This can be undertaken on a daily basis or for a longer period at a time. Often investors will swap their trades forward anywhere from a week or two up to several months depending on the time frame of the investment.

Although a forward trade is for a future date, the position can be closed out at any time - the closing part of the position is then swapped forward to the same future value date.

Interest Rate Differentials

Different currencies pay different interest rates. This is one of the main driving forces behind foreign exchange trends. It is inherently attractive to be a buyer of a currency that pays a high interest rate while being short a currency that has a low interest rate.

Although such interest rate differentials may not appear very large, they are of great significance in a highly leveraged position. For example, the interest rate differential between the US dollar and the Japanese yen has been approximately 5% for several years. In a position that can be supported by a 5% margin deposit, this results in a 100% profit on capital per annum when you buy the US dollar. Of course, an even more important factor normally is the relative value of the currencies, which changed 15% from low to high during 2005 – disregarding the interest rate differential. From a pure interest rate differential viewpoint, you have an advantage of 100% per annum in your favour by being long US dollar and an initial disadvantage of the same size by being short.
Please refer to our page Forex Rates & Conditions for current Spreads, Margins and Conditions!

Such a situation clearly benefits the high interest rate currency and as result, the US dollar was in a strong bull market all through 2005. But it is by no means a certainty that the currency with the higher interest rate will be strongest. If the reason for the high interest rate is runaway inflation, this may undermine confidence in the currency even more than the benefits perceived from the high interest rate.

Stop-loss discipline

As you can see from the description above, there are significant opportunities and risks in foreign exchange markets. Aggressive traders might experience profit/loss swings of 20-30% daily. This calls for strict stop-loss policies in positions that are moving against you.

Fortunately, there are no daily limits on foreign exchange trading and no restrictions on trading hours other than the weekend. This means that there will nearly always be an opportunity to react to moves in the main currency markets and a low risk of getting caught without the opportunity of getting out. Of course, the market can move very fast and a stop-loss order is by no means a guarantee of getting out at the desired level.

But the main risk is really an event over the weekend, where all markets are closed. This happens from time to time as many important political events, such as G7 meetings, are normally scheduled for weekends.

For speculative trading, we always recommend the placement of protective stop-lossorders. With Saxo Bank Internet Trading you can easily place and change such orders while watching market development graphically on your computer screen.

Introduction to Trading Forex

2010-05-28T20:09:00.000-07:00

Foreign Exchange

This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as a bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.

As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.

Overview

Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is speculative, with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.

Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market.

Trading Forex

A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the euro/US dollar, or the GB pound/Japanese yen.). The most commonly traded currencies are the so-called “majors” – EURUSD, USDJPY, USDCHF and GBPUSD.

The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.

Forward Outrights

For forward outrights, settlement on the value date selected in the trade means that even though the trade itself is carried out immediately, there is a small interest rate calculation left. The interest rate differential doesn't usually affect trade considerations unless you plan on holding a position with a large differential for a long period of time. The interest rate differential varies according to the cross you are trading. On the USDCHF, for example, the interest rate differential is quite small, whereas the differential on NOKJPY is large. This is because if you trade e.g. NOKJPY, you get almost 7% (annual) interest in Norway and close to 0% in Japan. So, if you borrow money in Japan, to finance the trade and buying NOK, you have a positive interest rate differential. This differential has to be calculated and added to your account. You can have both a positive and a negative interest rate differential, so it may work for or against you when you make a trade.

Trading on Margin

Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually conducted with relatively small margin deposits. This is useful since it permits investors to exploit currency exchange rate fluctuations which tend to be very small. A margin of 1.0% means you can trade up to USD 1,000,000 even though you only have USD 10,000 in your account. A margin of 1% corresponds to a 100:1 leverage (or “gearing”). (Because USD 10,000 is 1% of USD 1,000,000.) Using this much leverage enables you to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.

Why Trade Forex?

24 hour trading
One of the major advantages of trading Forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
Superior liquidity
The Forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.
No commissions
The fact that Forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.
Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity. For more information on the trading conditions of Saxo Bank, go to the Account Summary on your SaxoTrader and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
100:1 Leverage
Leverage (gearing) enables you to hold a position worth up to 100 times more than your margin deposit. For example, a USD 10,000 deposit can command positions of up to USD 1,000,000 through leverage. You can leverage the first USD 25,000 of your investment up to 100 times and additional collateral up to 50 times.
Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the euro and vice versa. So, if you think the EURUSD will decline (that is, that the euro will weaken versus the dollar), you would sell EUR now and then later you buy euro back at a lower price. In case that the EURUSD indeed declines, then you can take your profit. The opposite trading scenario would occur if the EURUSD appreciates.

Important Forex Trading Terms

Spread
The spread is the difference between the price that you can sell currency at (Bid) and the price you can buy currency at (Ask). The spread on majors is usually 3 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled “Trading Conditions” found in the top right-hand corner of the Account Summary.
Pips
A pip is the smallest unit by which a cross price quote changes. When trading Forex you will often hear that there is a 3-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9878. The difference is USD 0.0003, which is equal to 3 “pips”.

On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is cancel out the four zeros on the amount you trade and you will have the value of one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.

Definitions of FOREX on the Web:

2010-05-28T20:05:00.000-07:00

The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.

The primary purpose of the foreign exchange market is to assist international trade and investment, by allowing businesses to convert one currency to another currency. For example, it permits a US business to import European goods and pay Euros, even though the business's income is in US dollars. It also supports speculation, and facilitates the carry trade, in which investors borrow low-yielding currencies and lend (invest in) high-yielding currencies, and which (it has been claimed) may lead to loss of competitiveness in some countries.

In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.

An Introduction to Forex Trading

2010-05-28T13:08:00.000-07:00

Firstly, I'd like to say welcome to this site! This site was designed to provide information for traders and investors who want to learn about the forex market and what it can offer. To help you navigate the site better, choose from one of the following three categories below as to what level of knowledge and experience you have of the forex market:

Forex

Forex China 2010

Money From Forex 2010 My Forex Hubs

Money From Forex 2010

Forex Supersonic

What is Forex?

What is Forex (Foreign Exchange)?

Trading systems on the web

Forex Trading Guide

Fundamental Analysis and Forex: A Beginners Guide

Forex

Introduction to Foreign Exchange Markets

Stock Exchanges

Forex Brokers Directory

Forex: GBP/USD rises further to 1.5165

THeEDgeFX Usdcad

Leverage Forex – What Is Leverage In Forex?

Fibonacci Killer – Unlimited Fx Trading

Forex: USD/JPY rebounds from 88.00

foreign direct investment

foreign exchange controls

foreign exchange

Forex Glossary

Stock Markets

24hr Forex Trading – Forex Trading Hours

May 29, 2010 Rates updated at 08:39 AM

WORLD FOREX: Dollar steps forward Vs Rupee

FOREX RATES

History of the exchange in Japan

How to Trade Forex

Forex Trading Basics

Margin Trading

Base Currency and Variable Currency

Dealing Spread, but No Commissions

Spot and forward trading

Interest Rate Differentials

Stop-loss discipline

Introduction to Trading Forex

Overview

Trading Forex

Forward Outrights

Trading on Margin

Why Trade Forex?

24 hour trading

Superior liquidity

No commissions

100:1 Leverage

Profit potential in falling markets

Important Forex Trading Terms

Spread

Pips

Definitions of FOREX on the Web:

An Introduction to Forex Trading