Technical Analysis is probably the most common and successful means of making trading decisions and analyzing forex and commodities markets.
Technical analysis differs from fundamental analysis in that technical analysis is applied only to the price action of the market, ignoring fundamental factors. As fundamental data can often provide only a long-term or "delayed" forecast of exchange rate movements, technical analysis has become the primary tool with which to successfully trade shorter-term price movements, and to set stop loss and profit targets.
Technical analysis consists primarily of a variety of technical studies, each of which can be interpreted to generate buy and sell signals or to predict market direction. Please see our Technical Studies page for a detailed description of these studies and their uses.
Support and Resistance Levels
One use of technical analysis, apart from technical studies, is in deriving "support" and "resistance" levels. The concept here is that the market will tend to trade above its support levels and trade below its resistance levels. If a support or resistance level is broken, the market is then expected to follow through in that direction. These levels are determined by analyzing the chart and assessing where the market has encountered unbroken support or resistance in the past.
For example, in chart below EURUSD has established a resistance level at approximately .9015. In other words, EURUSD has risen up to .9015 repeatedly, but has been unable to move above that point:
The trading strategy would then be to sell EURUSD the next time it gets close to .9015, with a stop placed just above .9015, say at .9025. This would have indeed been a good trade as EURUSD proceeded to fall sharply, without breaking the .9015 resistance. Hence a substantial upside can be achieved while only risking 10 or 15 pips (.0010 or .0015 in EURUSD).
On GCI's integrated charting system (GCI Multi-Currency Charts), the red support line shown above can be drawn by clicking on the "Trend" button at the top of the chart window, and then drawing a line by clicking the mouse once at the beginning of the line, and again at the end of the line.
Monday, March 30, 2009
Exiting Trades
As with entering trades, exiting trades can be done with either a "Market" order, a "Limit" order, or a "Stop" order. "Trailing Stops" are variations of stops and can also be used effectively to exit trades. Exiting trades will generally result in a loss or a gain on an open position, and should be done once you have reached your profit target, your maximum loss, or when your market view has changed.
Exiting with a Market Order. Exiting a trade with a market order means that you will sell at your brokers current "bid" price, or buy at your brokers current "ask" price, whatever that price currently is. For example, suppose you had purchased one lot of USDJPY, meaning you are long one lot. If you then assume that the current market is 127.51/55, you know that you can exit your existing long position at 127.51 (that is, sell it to close at 127.51).
On the GCI system, this is done by right clicking on the open position in the "Open Positions" window. You can then select "close position" from the pop up menu, enter the lot amount you wish to close, and click "OK".
Exiting with a Stop. Exiting a trade with a stop order means that your position will be closed after an adverse market move of a specified amount. This does not necessarily mean that you have incurred a loss on the trade (see "trailing stops" below). For example, if you had purchased 1 lot of USDJPY and it is now trading at 128.50/54, you could place a Stop at 128.20. This means that the order will only be filled if the market moves down to 128.20, limiting your loss to .30 (30 pips).
On the GCI system, you can place an order to exit a position on a Stop order by right-clicking on the position in the "Open Positions" window, and then selecting "Stop" from the pop up menu. You can then input the order size and price.
A Trailing Stop is placed in the same manner, but the concept here is that the stop will be moved as the market moves in your favor (the stop "trails" the market"). So for example, assume that you had placed your stop at 128.20 with a long USDJPY position at 128.50. If USDJPY moves up to 128.90, you could then move the stop up to 128.60. This would ensure a worse case of a gain of .10 (10 pips), while still allowing unlimited upside if USDJPY continues to rise.
The advantage of exiting with a Stop is that (1) you limit your downside to the amount you specify with your stop, and (2) you have unlimited upside in the event that the market continues to move in your favor. The disadvantage is that markets will occasionally move adversely initially, causing your stop to be filled and closing your position, and then proceed to move in the direction that you had originally anticipated.
Exiting with a Limit Order. Exiting a trade with a limit order is an effective way to ensure that you will capture profits once your profit target is reached.
On the GCI system, you can place an order to exit a position on a Limit order by right-clicking on the position in the "Open Positions" window, and then selecting "Limit" from the pop up menu. You can then input the order size and price.
The advantage of exiting a trade with a limit order is that your position will be successfully closed if your profit target is reached, even if only for a few seconds. For example, if you purchased USDJPY at 128.50 and placed a limit order to exit the trade at 129.50, you will successfully capture a 1.00 profit (100 pips) if 129.50 is reached even briefly and then the market falls again. The disadvantage is that you will limit your upside, foregoing additional gains if the market was to continue to move in your favor. Furthermore, you will not limit your downside if the market moves against you. For example, if the market rises to 132.00, your profit will still be limited to the 100 pips because your position was closed at 129.50. If the market moves down below 128.50, your losses will not be limited, unless you had also placed a stop on the open position (see "exiting with a Stop" above.
Using Stops and Limits Together. A common strategy is to place both a Stop and a Limit on the same open position. On the GCI system, the position will be closed by whichever order is reached first, and the other order will automatically be cancelled. This is known as "OCO" or "One Cancels the Other".
Exiting with a Market Order. Exiting a trade with a market order means that you will sell at your brokers current "bid" price, or buy at your brokers current "ask" price, whatever that price currently is. For example, suppose you had purchased one lot of USDJPY, meaning you are long one lot. If you then assume that the current market is 127.51/55, you know that you can exit your existing long position at 127.51 (that is, sell it to close at 127.51).
On the GCI system, this is done by right clicking on the open position in the "Open Positions" window. You can then select "close position" from the pop up menu, enter the lot amount you wish to close, and click "OK".
Exiting with a Stop. Exiting a trade with a stop order means that your position will be closed after an adverse market move of a specified amount. This does not necessarily mean that you have incurred a loss on the trade (see "trailing stops" below). For example, if you had purchased 1 lot of USDJPY and it is now trading at 128.50/54, you could place a Stop at 128.20. This means that the order will only be filled if the market moves down to 128.20, limiting your loss to .30 (30 pips).
On the GCI system, you can place an order to exit a position on a Stop order by right-clicking on the position in the "Open Positions" window, and then selecting "Stop" from the pop up menu. You can then input the order size and price.
A Trailing Stop is placed in the same manner, but the concept here is that the stop will be moved as the market moves in your favor (the stop "trails" the market"). So for example, assume that you had placed your stop at 128.20 with a long USDJPY position at 128.50. If USDJPY moves up to 128.90, you could then move the stop up to 128.60. This would ensure a worse case of a gain of .10 (10 pips), while still allowing unlimited upside if USDJPY continues to rise.
The advantage of exiting with a Stop is that (1) you limit your downside to the amount you specify with your stop, and (2) you have unlimited upside in the event that the market continues to move in your favor. The disadvantage is that markets will occasionally move adversely initially, causing your stop to be filled and closing your position, and then proceed to move in the direction that you had originally anticipated.
Exiting with a Limit Order. Exiting a trade with a limit order is an effective way to ensure that you will capture profits once your profit target is reached.
On the GCI system, you can place an order to exit a position on a Limit order by right-clicking on the position in the "Open Positions" window, and then selecting "Limit" from the pop up menu. You can then input the order size and price.
The advantage of exiting a trade with a limit order is that your position will be successfully closed if your profit target is reached, even if only for a few seconds. For example, if you purchased USDJPY at 128.50 and placed a limit order to exit the trade at 129.50, you will successfully capture a 1.00 profit (100 pips) if 129.50 is reached even briefly and then the market falls again. The disadvantage is that you will limit your upside, foregoing additional gains if the market was to continue to move in your favor. Furthermore, you will not limit your downside if the market moves against you. For example, if the market rises to 132.00, your profit will still be limited to the 100 pips because your position was closed at 129.50. If the market moves down below 128.50, your losses will not be limited, unless you had also placed a stop on the open position (see "exiting with a Stop" above.
Using Stops and Limits Together. A common strategy is to place both a Stop and a Limit on the same open position. On the GCI system, the position will be closed by whichever order is reached first, and the other order will automatically be cancelled. This is known as "OCO" or "One Cancels the Other".
Controlling Risks
Controlling risk is one of the most important ingredients of successful trading. While it is emotionally more appealing to focus on the upside of trading, every trader should know precisely how much he is willing to lose on each trade before cutting losses, and how much he is willing to lose in his account before ceasing trading and re-evaluating.
Risk will essentially be controlled in two ways: 1) by exiting losing trades before losses exceed your pre-determined maximum tolerance (or "cutting losses"), and 2) by limiting the "leverage" or position size you trade for a given account size.
Cutting Losses
Too often, the beginning trader will be overly concerned about incurring losing trades. He therefore lets losses mount, with the "hope" that the market will turn around and the loss will turn into a gain.
Almost all successful trading strategies include a disciplined procedure for cutting losses. When a trader is down on a positions, many emotions often come into play, making it difficult to cut losses at the right level. The best practice is to decide where losses will be cut before a trade is even initiated. This will assure the trader of the maximum amount he can expect to lose on the trade.
The other key element of risk control is overall account risk. In other words, a trader should know before he begins his trading endeavor how much of his account he is willing to lose before ceasing trading and re-evaluating his strategy. If you open an account with $2,000, are you willing to lose all $2,000? $1,000? As with risk control on individual trades, the most important discipline is to decide on a level and stick with it. Further information on the mechanics of limiting risk can be found at the Exiting Trades pages and Hedging pages.
Determining Position Size
Before beginning any trading program, an assessment should be made of the maximum account loss that is likely to occur over time, per lot (see "Drawdown" in "Glossary of Terms"). For example, assume you have determined that your worse case loss on any trade is 30 pips. That translates into approximately $300 per $100,000 position size. Further assume that the $100,000 position size is equal to one lot. Five consecutive losing trades would result in a loss of $1,500 (5 x $300); a difficult period but not to be unexpected over the long run. For a $10,000 account trading one lot, this translates into a 15% loss. Therefore, even though it may be possible to trade 5 lots or more with a $10,000 account, this analysis suggests that the resulting "drawdown" would be too great (75% or more of the account value would be wiped out).
Any trader should have a sense of this maximum loss per lot, and then determine the amount he wishes to trade for a given account size that will yield tolerable drawdowns.
Risk will essentially be controlled in two ways: 1) by exiting losing trades before losses exceed your pre-determined maximum tolerance (or "cutting losses"), and 2) by limiting the "leverage" or position size you trade for a given account size.
Cutting Losses
Too often, the beginning trader will be overly concerned about incurring losing trades. He therefore lets losses mount, with the "hope" that the market will turn around and the loss will turn into a gain.
Almost all successful trading strategies include a disciplined procedure for cutting losses. When a trader is down on a positions, many emotions often come into play, making it difficult to cut losses at the right level. The best practice is to decide where losses will be cut before a trade is even initiated. This will assure the trader of the maximum amount he can expect to lose on the trade.
The other key element of risk control is overall account risk. In other words, a trader should know before he begins his trading endeavor how much of his account he is willing to lose before ceasing trading and re-evaluating his strategy. If you open an account with $2,000, are you willing to lose all $2,000? $1,000? As with risk control on individual trades, the most important discipline is to decide on a level and stick with it. Further information on the mechanics of limiting risk can be found at the Exiting Trades pages and Hedging pages.
Determining Position Size
Before beginning any trading program, an assessment should be made of the maximum account loss that is likely to occur over time, per lot (see "Drawdown" in "Glossary of Terms"). For example, assume you have determined that your worse case loss on any trade is 30 pips. That translates into approximately $300 per $100,000 position size. Further assume that the $100,000 position size is equal to one lot. Five consecutive losing trades would result in a loss of $1,500 (5 x $300); a difficult period but not to be unexpected over the long run. For a $10,000 account trading one lot, this translates into a 15% loss. Therefore, even though it may be possible to trade 5 lots or more with a $10,000 account, this analysis suggests that the resulting "drawdown" would be too great (75% or more of the account value would be wiped out).
Any trader should have a sense of this maximum loss per lot, and then determine the amount he wishes to trade for a given account size that will yield tolerable drawdowns.
Entering Trades
Trades can be initiated in one of three ways: 1) a Market Order, 2) a Stop, and 3) a Limit.
Market Order. Placing a market order means that you will buy at your brokers current "ask" price, or sell at your brokers current "bid" price, whatever that price currently is. For example, suppose you are buying EURUSD. The current market, as quoted by your broker or on GCI's "Dealing Rates" window, is .9152/56. This means that your broker is willing to buy EURUSD from you at .9152, and sell it to you at .9156. To place a market order to buy
Click on the rate (Sell or Buy) field within the order record or right click anywhere within the order record and then choose Market order command from pop-up menu. The Amount input screen will appear:
Enter desired amount measured in lots and press OK. New order marked with letter ‘I’ (Initiate) will appear on the Trader’s Orders window. Dealer now is able to confirm operation or to reject it due to market movement.
Stop Order. Initiating a trade with a stop order means that you will only have a position if the market moves in the direction you are anticipating. For example, if USDJPY is currently 128.50 and you believe it will move higher, you could place a "buy stop" at 128.60. This means that the order will only be filled if the market moves up to 128.60. The advantage is that if you are wrong and the market moves straight down, you will not have bought (because 128.60 will never have been reached). The disadvantage is that 128.60 is clearly a less attractive rate at which to buy than 128.50. Initiating a trade with a Stop order is usually appropriate if you wish to trade only with strong market momentum in a particular direction.
On the GCI system, you can enter a trade with a stop order by right-clicking on the appropriate currency rate in the "Dealing Rates" window, and then selecting "Entry Stop" from the pop up menu. You can then input the order size and price.
Limit Order. A Limit order is an order to buy below the current price, or sell above the current price. For example, if EURUSD is trading at .9152/56 and you believe the market will rise, you could place a limit order to buy at .9145. If filled, this will give you a long position in EURUSD at .9145, which is 11 pips better than if you had just bought EURUSD with a market order. The disadvantage of this Limit order is that if EURUSD moves straight up from .9152/56, your limit at .9145 will never be filled and you will miss out on the profit opportunity even though your view on the direction of EURUSD was correct. Entering a trade with a Limit order is usually appropriate if you believe that the market will remain in a range before moving in your anticipated direction, allowing the order to be filled first.
On the GCI system, you can enter a trade with a limit order by right-clicking on the appropriate currency rate in the "Dealing Rates" window, and then selecting "Entry Limit" from the pop up menu. You can then input the order size and price.
Market Order. Placing a market order means that you will buy at your brokers current "ask" price, or sell at your brokers current "bid" price, whatever that price currently is. For example, suppose you are buying EURUSD. The current market, as quoted by your broker or on GCI's "Dealing Rates" window, is .9152/56. This means that your broker is willing to buy EURUSD from you at .9152, and sell it to you at .9156. To place a market order to buy
Click on the rate (Sell or Buy) field within the order record or right click anywhere within the order record and then choose Market order command from pop-up menu. The Amount input screen will appear:
Enter desired amount measured in lots and press OK. New order marked with letter ‘I’ (Initiate) will appear on the Trader’s Orders window. Dealer now is able to confirm operation or to reject it due to market movement.
Stop Order. Initiating a trade with a stop order means that you will only have a position if the market moves in the direction you are anticipating. For example, if USDJPY is currently 128.50 and you believe it will move higher, you could place a "buy stop" at 128.60. This means that the order will only be filled if the market moves up to 128.60. The advantage is that if you are wrong and the market moves straight down, you will not have bought (because 128.60 will never have been reached). The disadvantage is that 128.60 is clearly a less attractive rate at which to buy than 128.50. Initiating a trade with a Stop order is usually appropriate if you wish to trade only with strong market momentum in a particular direction.
On the GCI system, you can enter a trade with a stop order by right-clicking on the appropriate currency rate in the "Dealing Rates" window, and then selecting "Entry Stop" from the pop up menu. You can then input the order size and price.
Limit Order. A Limit order is an order to buy below the current price, or sell above the current price. For example, if EURUSD is trading at .9152/56 and you believe the market will rise, you could place a limit order to buy at .9145. If filled, this will give you a long position in EURUSD at .9145, which is 11 pips better than if you had just bought EURUSD with a market order. The disadvantage of this Limit order is that if EURUSD moves straight up from .9152/56, your limit at .9145 will never be filled and you will miss out on the profit opportunity even though your view on the direction of EURUSD was correct. Entering a trade with a Limit order is usually appropriate if you believe that the market will remain in a range before moving in your anticipated direction, allowing the order to be filled first.
On the GCI system, you can enter a trade with a limit order by right-clicking on the appropriate currency rate in the "Dealing Rates" window, and then selecting "Entry Limit" from the pop up menu. You can then input the order size and price.
Making Trading Decisions
Making trading decisions and developing a sound and effective trading strategy is an important foundation of trading.
Before developing a trading strategy, a trader should have a working knowledge of technical analysis as well as knowledge of some of the more popular technical studies. Please visit these pages for detailed information.
Sample Strategy 1 - Simple Moving Average
Successful trading is often described as optimizing your risk with respect to your reward, or upside. Any trading strategy should have a disciplined method of limiting risk while making the most out of favorable market moves. We will illustrate one decision making model which uses a Simple Moving Average ("SMA") technical study, based on a 12-period SMA, where each period is 15 minutes. This is one example of a trading decision making strategy, and we encourage any trader to research other strategies as thoroughly as possible.
We will use a simple algorithm: when the price of the currency crosses above the 12-period SMA, it will be taken as a signal to buy at the market. When the currency price crosses below the 12-period SMA, it will be a signal to "Stop and Reverse" ("SAR"). In other words, a long position will be liquidated and a short position will be established, both with market orders. Thus this system will keep the traders "always in" the market - he will always have either a long or short position after the first signal. In the chart below, the white line represents the price of USDJPY, the purple line represents the 12-period SMA of USDJPY, and the red line indicates where USDJPY crosses above the SMA, generating a buy signal at approximately 129.90:
This is a simple example of technical analysis applied to trading. Many strategies used by professional traders make use of moving averages along with other indicators or "filters". Note that the moving average method has an element of risk control built in: a long position will be stopped out fairly quickly in a falling market because the price will drop below the SMA, generating a stop-and-reverse signal. The same holds true for a sell signal in a rising market. Note that the SMA is generated automatically by GCI's integrated charting application.
Please review the technical studies described in this site for additional resources on developing technical trading strategy.
Sample Strategy 2 - Support and Resistance Levels
One use of technical analysis, apart from technical studies, is in deriving "support" and "resistance" levels. The concept here is that the market will tend to trade above its support levels and trade below its resistance levels. If a support or resistance level is broken, the market is then expected to follow through in that direction. These levels are determined by analyzing the chart and assessing where the market has encountered unbroken support or resistance in the past.
For example, in chart below EURUSD has established a resistance level at approximately .9015. In other words, EURUSD has risen up to .9015 repeatedly, but has been unable to move beyond that point:
The trading strategy would then be to sell EURUSD the next time it gets close to .9015, with a stop placed just above .9015, say at .9025. This would have indeed been a good trade as EURUSD proceeded to fall sharply, without breaking the .9015 resistance. Hence a substantial upside can be achieved while only risking 10 or 15 pips (.0010 or .0015 in EURUSD).
On GCI's integrated charting system (GCI Multi-Currency Charts), the red support line shown above can be drawn by clicking on the "Trend" button at the top of the chart window, and then drawing a line by clicking the mouse once at the beginning of the line, and again at the end of the line.
Before developing a trading strategy, a trader should have a working knowledge of technical analysis as well as knowledge of some of the more popular technical studies. Please visit these pages for detailed information.
Sample Strategy 1 - Simple Moving Average
Successful trading is often described as optimizing your risk with respect to your reward, or upside. Any trading strategy should have a disciplined method of limiting risk while making the most out of favorable market moves. We will illustrate one decision making model which uses a Simple Moving Average ("SMA") technical study, based on a 12-period SMA, where each period is 15 minutes. This is one example of a trading decision making strategy, and we encourage any trader to research other strategies as thoroughly as possible.
We will use a simple algorithm: when the price of the currency crosses above the 12-period SMA, it will be taken as a signal to buy at the market. When the currency price crosses below the 12-period SMA, it will be a signal to "Stop and Reverse" ("SAR"). In other words, a long position will be liquidated and a short position will be established, both with market orders. Thus this system will keep the traders "always in" the market - he will always have either a long or short position after the first signal. In the chart below, the white line represents the price of USDJPY, the purple line represents the 12-period SMA of USDJPY, and the red line indicates where USDJPY crosses above the SMA, generating a buy signal at approximately 129.90:
This is a simple example of technical analysis applied to trading. Many strategies used by professional traders make use of moving averages along with other indicators or "filters". Note that the moving average method has an element of risk control built in: a long position will be stopped out fairly quickly in a falling market because the price will drop below the SMA, generating a stop-and-reverse signal. The same holds true for a sell signal in a rising market. Note that the SMA is generated automatically by GCI's integrated charting application.
Please review the technical studies described in this site for additional resources on developing technical trading strategy.
Sample Strategy 2 - Support and Resistance Levels
One use of technical analysis, apart from technical studies, is in deriving "support" and "resistance" levels. The concept here is that the market will tend to trade above its support levels and trade below its resistance levels. If a support or resistance level is broken, the market is then expected to follow through in that direction. These levels are determined by analyzing the chart and assessing where the market has encountered unbroken support or resistance in the past.
For example, in chart below EURUSD has established a resistance level at approximately .9015. In other words, EURUSD has risen up to .9015 repeatedly, but has been unable to move beyond that point:
The trading strategy would then be to sell EURUSD the next time it gets close to .9015, with a stop placed just above .9015, say at .9025. This would have indeed been a good trade as EURUSD proceeded to fall sharply, without breaking the .9015 resistance. Hence a substantial upside can be achieved while only risking 10 or 15 pips (.0010 or .0015 in EURUSD).
On GCI's integrated charting system (GCI Multi-Currency Charts), the red support line shown above can be drawn by clicking on the "Trend" button at the top of the chart window, and then drawing a line by clicking the mouse once at the beginning of the line, and again at the end of the line.
Forex Market Background
The global marketplace has changed dramatically over the past several years. New investment strategies are becoming more important in order to minimize risk, as well as to maintain high portfolio returns. Among the most rewarding of the markets opening up to traders is the Foreign Exchange market. Identifiable trading patterns, as well as comparatively low margin requirements, have rewarding trading opportunities for many.
In contrast to the world’s stock markets, foreign exchange is traded without the constraints of a central physical exchange. Transactions are instead conducted via telephone or online. With this transaction structure as its foundation, the Foreign Exchange Market has become by far the largest marketplace in the world. Average volume in foreign exchange exceeds $1.5 trillion per day versus only $25 billion per day traded on the New York Stock Exchange. This high volume is advantageous from a trading standpoint because transactions can be executed quickly and with low transaction costs (i.e., a small bid/ask spread).
As a result, foreign exchange trading has long been recognized as a superior investment opportunity by major banks, multinational corporations and other institutions.
Spot foreign exchange is always traded as one currency in relation to another. So a trader who believes that the dollar will rise in relation to the Euro, would sell EURUSD. That is, sell Euros and buy US dollars. Forex-Training.com has compiled the following guide for quoting conventions:
Symbol Currency Pair Trading Terminology
GBPUSD British Pound / US Dollar "Cable"
EURUSD Euro / US Dollar "Euro"
USDJPY US Dollar / Japanese Yen "Dollar Yen"
USDCHF US Dollar / Swiss Franc "Dollar Swiss", or "Swissy"
USDCAD US Dollar / Canadian Dollar "Dollar Canada"
AUDUSD Australian Dollar / US Dollar "Aussie Dollar"
EURGBP Euro / British Pound "Euro Sterling"
EURJPY Euro / Japanese Yen "Euro Yen"
EURCHF Euro / Swiss Franc "Euro Swiss"
GBPCHF British Pound / Swiss Franc "Sterling Swiss"
GBPJPY British Pound / Japanese Yen "Sterling Yen"
CHFJPY Swiss Franc / Japanese Yen "Swiss Yen"
NZDUSD New Zealand Dollar / US Dollar "New Zealand Dollar" or "Kiwi"
USDZAR US Dollar / South African Rand "Dollar Zar" or "South African Rand"
GLDUSD Spot Gold "Gold"
SLVUSD Spot Silver "Silver"
Spot Forex versus Currency Futures
Many traders have made the switch from currency futures to spot foreign exchange ("forex") trading. Spot foreign exchange offers better liquidity and generally a lower cost of trading than currency futures. Banks and brokers in spot foreign exchange can quote markets 24 hours a day. Furthermore, the spot foreign exchange market is not burdened by exchange and NFA ("National Futures Association") fees, which are generally passed on to the customer in the form of higher commissions. For these reasons, virtually all professional traders and institutions conduct most of their foreign exchange dealing in the spot forex market, not in currency futures.
The mechanics of trading spot forex are similar to those of currency futures. The most important initial difference is the way in which currency pairs are quoted. Currency futures are always quoted as the currency versus the US dollar. In Spot forex, some currencies are quoted this way, while others are quoted as the US dollar versus the currency. For example, in spot forex, EURUSD is quoted the same way as Euro futures. In other words, if the Euro is strengthening, EURUSD will rise just as Euro futures will rise. On the other hand, USDCHF is quoted as US dollars with respect to Swiss Francs, the opposite of Swiss Franc futures. So if the Swiss Franc strengthens with respect to the US dollar, USDCHF will fall, while Swiss Franc futures will rise. The rule in spot forex is that the first currency shown is the currency that is being quoted in terms of direction. For example, "EUR" in EURUSD and "USD" in USDCHF is the currency that is being quoted.
The table below illustrates which spot currencies move parallel to the futures contract and which move inversely (opposite):
Forex
Symbol Currency Pair Futures
Symbol Directional
Relationship
GBPUSD British Pound / US Dollar BP Parallel
EURUSD Euro / US Dollar EU Parallel
USDJPY US Dollar / Japanese Yen JY Inverse
USDCHF US Dollar / Swiss Franc SF Inverse
USDCAD US Dollar / Canadian Dollar CD Inverse
AUDUSD Australian Dollar / US Dollar AD Parallel
NZDUSD New Zealand Dollar / US Dollar ND Parallel
In contrast to the world’s stock markets, foreign exchange is traded without the constraints of a central physical exchange. Transactions are instead conducted via telephone or online. With this transaction structure as its foundation, the Foreign Exchange Market has become by far the largest marketplace in the world. Average volume in foreign exchange exceeds $1.5 trillion per day versus only $25 billion per day traded on the New York Stock Exchange. This high volume is advantageous from a trading standpoint because transactions can be executed quickly and with low transaction costs (i.e., a small bid/ask spread).
As a result, foreign exchange trading has long been recognized as a superior investment opportunity by major banks, multinational corporations and other institutions.
Spot foreign exchange is always traded as one currency in relation to another. So a trader who believes that the dollar will rise in relation to the Euro, would sell EURUSD. That is, sell Euros and buy US dollars. Forex-Training.com has compiled the following guide for quoting conventions:
Symbol Currency Pair Trading Terminology
GBPUSD British Pound / US Dollar "Cable"
EURUSD Euro / US Dollar "Euro"
USDJPY US Dollar / Japanese Yen "Dollar Yen"
USDCHF US Dollar / Swiss Franc "Dollar Swiss", or "Swissy"
USDCAD US Dollar / Canadian Dollar "Dollar Canada"
AUDUSD Australian Dollar / US Dollar "Aussie Dollar"
EURGBP Euro / British Pound "Euro Sterling"
EURJPY Euro / Japanese Yen "Euro Yen"
EURCHF Euro / Swiss Franc "Euro Swiss"
GBPCHF British Pound / Swiss Franc "Sterling Swiss"
GBPJPY British Pound / Japanese Yen "Sterling Yen"
CHFJPY Swiss Franc / Japanese Yen "Swiss Yen"
NZDUSD New Zealand Dollar / US Dollar "New Zealand Dollar" or "Kiwi"
USDZAR US Dollar / South African Rand "Dollar Zar" or "South African Rand"
GLDUSD Spot Gold "Gold"
SLVUSD Spot Silver "Silver"
Spot Forex versus Currency Futures
Many traders have made the switch from currency futures to spot foreign exchange ("forex") trading. Spot foreign exchange offers better liquidity and generally a lower cost of trading than currency futures. Banks and brokers in spot foreign exchange can quote markets 24 hours a day. Furthermore, the spot foreign exchange market is not burdened by exchange and NFA ("National Futures Association") fees, which are generally passed on to the customer in the form of higher commissions. For these reasons, virtually all professional traders and institutions conduct most of their foreign exchange dealing in the spot forex market, not in currency futures.
The mechanics of trading spot forex are similar to those of currency futures. The most important initial difference is the way in which currency pairs are quoted. Currency futures are always quoted as the currency versus the US dollar. In Spot forex, some currencies are quoted this way, while others are quoted as the US dollar versus the currency. For example, in spot forex, EURUSD is quoted the same way as Euro futures. In other words, if the Euro is strengthening, EURUSD will rise just as Euro futures will rise. On the other hand, USDCHF is quoted as US dollars with respect to Swiss Francs, the opposite of Swiss Franc futures. So if the Swiss Franc strengthens with respect to the US dollar, USDCHF will fall, while Swiss Franc futures will rise. The rule in spot forex is that the first currency shown is the currency that is being quoted in terms of direction. For example, "EUR" in EURUSD and "USD" in USDCHF is the currency that is being quoted.
The table below illustrates which spot currencies move parallel to the futures contract and which move inversely (opposite):
Forex
Symbol Currency Pair Futures
Symbol Directional
Relationship
GBPUSD British Pound / US Dollar BP Parallel
EURUSD Euro / US Dollar EU Parallel
USDJPY US Dollar / Japanese Yen JY Inverse
USDCHF US Dollar / Swiss Franc SF Inverse
USDCAD US Dollar / Canadian Dollar CD Inverse
AUDUSD Australian Dollar / US Dollar AD Parallel
NZDUSD New Zealand Dollar / US Dollar ND Parallel
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Dollar's Status As Reserve Currency Coming Under Increasing Pressure
thelfb-forex.com - submitted by NewstraderFX 23 hr ago (6 comments)
Nobel Prize-winning economist Joseph Stiglitz, the former World Bank chief economist, said on Thursday that the use of the dollar as a reserve currency was "contributing to the weakness of the global...
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March 30 Market Commentary and Technical Levels
fxinstructor.com - submitted by FxInstructor 16 hr ago (2 comments)
Mon, 30th of March, 2009 March 30 Market Commentary and Technical Levels By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook Finally, the EURUSD made a breakdown to the downside from the...
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G-20 meeting likely to fail, could trigger intl bond market collapse
forexdatasource.com - submitted by Datasource 23 hr ago (3 comments)
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EUR/USD at critical support levels, next support could be 1.25
learningmarkets.com - submitted by PFXGlobal 11 hr ago
The EUR/USD is at a point forex traders will want to watch very closely this week, both on the daily chart and the hourly chart. The chart below shows the daily chart for the last six months or so,...
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Week Starts With Dollar’s Domination!
spikecharts.com - submitted by Manousarides 1 hr 51 min ago
Another week has started with markets down so far, as investors are bracing themselves for a really eventful week, what with G20 nearing and payroll data out of US later on! The new found confidence...
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COT Analysis - Large Specs Long US$, Flip Long AUD
forexrazor.com - submitted by Forexrazor 17 hr ago
Total open interest in the CME major currencies plus the Dollar Index was down 12,470 contracts. The biggest position change was in the Canadian $ which declined 35274 contracts. Large traders are...
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NZD/USD: Looking at two possiblilities in Support & Resistance
4rexacto.com - submitted by Forexacto 18 hr ago
We saw on Friday the USD taking back most of the gain the NZD had accomplished the night before. While the smaller charts are indicating continuation, the Daily chart is waiting for clearer signals..
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G.M. Chief Quits After Pressure From Administration
nytimes.com - submitted by Xerof 13 hr ago (1 comment)
DETROIT — The chairman and chief executive of General Motors, Rick Wagoner, resigned Sunday as part of a broad agreement with the Obama administration to funnel more government aid to the ailing auto...
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Big Week, Big Push-backs, Fed Test
thelfb-forex.com - submitted by TheLFB.com 16 hr ago
There is a heavy calendar of economics spread through the course of the next five days, and spread through most of the major economic regions. The heavy hitting releases really start from Tuesday...
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30 March Probability studies - EUR H&S still intact
fxinstructor.com - submitted by JCKriek 1 hr 25 min ago
by Johan Kriek (jkriek@fxinstructor.com) The daily Head and Shoulders continuation pattern might still be intact due to the fact that price made a peak at 1.3735 which could be the right shoulder’s...
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Risk appetite dominates Aussie
investica.co.uk - submitted by Investica 5 hr ago
Caution is liable to be a key feature over the next 48 hours with unease over the G20 meetings and renewed fears over the US auto sector. In this environment, the Australian dollar will remain...
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New Resistance Line for the Aussie
forexcrunch.com - submitted by Yohay 9 hr ago
AUD/USD fails to extend its gains despite good economic indicators and strong momentum. A new resistance line has been formed, and might be tested later this week.
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G-20 to Set New Rules for Tax Havens Under Regulatory Shake-Up
wsj.com - submitted by Calendar News 13 hr ago
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30 March - 3 April Technical Over View
4xtechnicales.com - submitted by 4XTechnicale 16 hr ago
GBPUSD GBPUSD on last week failed to form a higher high in order to confirm the down trend reversal. Instead, GBPUSD had formed a neutral top at 1.4777. For this week GBPUSD has to close either...
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GBP/USD - Targeting 1.4000
fxstreet.com - submitted by James Chen 2 hr 3 min ago
Monday morning price action on GBP/USD, a daily chart of which is shown, has extended its bearishness of last week, and currently appears to be targeting key support in the 1.4000 region ...
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ELLIOTT WAVE SUPPORT AND RESISTANCE FOR THE WEEK AHEAD |March 30, 2009
fxreturn.com - submitted by Fxreturn.com 9 hr ago
Monday March 30, 2009- Here are what we feel are the important technical price levels for the the rest of the week as related to the EUR/USD, GBP/USD, EUR/JPY, USD/CHF, USD/JPY, USD/CAD for March 30,...
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Forex Markets to Watch for the Week Ahead March 30, 2009 5:00GMT
fxreturn.com - submitted by Fxreturn.com 10 hr ago (2 comments)
Monday March 30, 2009- Good Morning. We have 8 News Trading opportunities this week for our TON: Trade On News Software starting with Tuesday's CAD GDP m/m figures.Wednesday, we have AUD Retail...
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New Zealand Building Permits +11.6% on Month in Feb
rttnews.com - submitted by Calendar News 17 hr ago
The number of building permits issued in New Zealand was up 11.6 percent in February compared to the previous month, Statistics New Zealand said on Monday. That follows a revised 13.0 percent monthly...
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GM CEO Wagoner to step down: source
reuters.com - submitted by Goat 17 hr ago (1 comment)
NEW YORK (Reuters) - General Motors Corp Chief Executive Rick Wagoner will resign from the top job at the struggling automaker, a person familiar with the matter said on Sunday, just a day before the...
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Forex Daily Outlook - March 30th 2009
forexcrunch.com - submitted by Yohay 21 hr ago
The forex market will be moved mostly by speeches around the globe. Important figures include Japanese Prelim Industrial Production and European Consumer Confidence. Let’s see what’s on the menu…
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GBP/USD This Week - Will support hold?
learningmarkets.com - submitted by lmarkets 21 hr ago (1 comment)
We're looking for a potential bounce off support short-term on both the hourly and daily charts. But British GDP showed the economy is slowing significantly, and we could see tests of support later...
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WEEKLY Technical Strategist: GBPUSD
fxtechstrategy.com - submitted by Mohammed Isah 23 hr ago
Shooting Star Formation With Downside Implication. GBPUSD- GBP’s recovery activated at the 1.3655 level, its Mar 11’09 low failed ahead of a key resistance at its Jan 16’09/Feb 09’09 highs at...
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A Simple 10 Minute Video for Understanding the US Economic Crisis
youtube.com - submitted by Simit Patel 46 min ago
This video offers a simple explanation of the economic crisis in the US, its causes, and potential solutions as well.
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Bloomberg Video: A Look at Replacing the USD with New Reserve Currency
informedtrades.com - submitted by David Waring 55 min ago
Good overview of China's proposal for a new reserve currency.
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This Weeks Events Clouds Growing Optimism
ac-markets.com - submitted by ACM Forex 3 hr ago
Participants are viewing this week as the potential turning point in the greenbacks fate. Equity markets are all lower with the DAX down -3.5% and Dow futures pointing to a weak opening as risk...
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FX Thoughts for the day : 30-Mar-2009...
fxthoughts.com - submitted by FXThoughts 3 hr ago
USD-CHF @ 1.1495/97...Consolidate near 1.1520-65 -------------------------------------- R: 1.1520-65 / 1.1579 / 1.1593 S: 1.1460 / 1.1397 / 1.1351 Dolar-Swiss has been seeing some consolidation...
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U.K. Mortgage Approvals Rise After Interest-Rate Reductions
bloomberg.com - submitted by Calendar News 6 hr ago
U.K. mortgage approvals rose in February as the Bank of England lowered interest rates, a sign the housing slump may be reaching a bottom. Loans for home purchase rose to 38,000, compared with...
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DAILY Technical Strategist
fxtechstrategy.com - submitted by Mohammed Isah 7 hr ago
USDJPY: Struggling With Upside Bias. USDJPY: While the pair’s recovery started at the 93.55 level remains in force, risk of a recapture of the 99.68 level, its Mar 05’09 high is likely. This is...
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No Need to Panic
alibaba.com - submitted by Dutching 9 hr ago
No Need to Panic Author: HU YUE There are no permanent friends in the world, only perpetual interests. This is the first lesson that many Chinese bankers are learning in the new year as their...
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G-20 Set to Fall Short of Grand Goals
wsj.com - submitted by Calendar News 11 hr ago
It was supposed to be the inauguration of a Global New Deal, in the hopes of British Prime Minister Gordon Brown, a comprehensive policy response to the world economic crisis, a root-and-branch...
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Dollar's Status As Reserve Currency Coming Under Increasing Pressure
thelfb-forex.com - submitted by NewstraderFX 23 hr ago (6 comments)
Nobel Prize-winning economist Joseph Stiglitz, the former World Bank chief economist, said on Thursday that the use of the dollar as a reserve currency was "contributing to the weakness of the global...
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March 30 Market Commentary and Technical Levels
fxinstructor.com - submitted by FxInstructor 16 hr ago (2 comments)
Mon, 30th of March, 2009 March 30 Market Commentary and Technical Levels By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook Finally, the EURUSD made a breakdown to the downside from the...
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G-20 meeting likely to fail, could trigger intl bond market collapse
forexdatasource.com - submitted by Datasource 23 hr ago (3 comments)
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EUR/USD at critical support levels, next support could be 1.25
learningmarkets.com - submitted by PFXGlobal 11 hr ago
The EUR/USD is at a point forex traders will want to watch very closely this week, both on the daily chart and the hourly chart. The chart below shows the daily chart for the last six months or so,...
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Week Starts With Dollar’s Domination!
spikecharts.com - submitted by Manousarides 1 hr 51 min ago
Another week has started with markets down so far, as investors are bracing themselves for a really eventful week, what with G20 nearing and payroll data out of US later on! The new found confidence...
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COT Analysis - Large Specs Long US$, Flip Long AUD
forexrazor.com - submitted by Forexrazor 17 hr ago
Total open interest in the CME major currencies plus the Dollar Index was down 12,470 contracts. The biggest position change was in the Canadian $ which declined 35274 contracts. Large traders are...
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NZD/USD: Looking at two possiblilities in Support & Resistance
4rexacto.com - submitted by Forexacto 18 hr ago
We saw on Friday the USD taking back most of the gain the NZD had accomplished the night before. While the smaller charts are indicating continuation, the Daily chart is waiting for clearer signals..
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G.M. Chief Quits After Pressure From Administration
nytimes.com - submitted by Xerof 13 hr ago (1 comment)
DETROIT — The chairman and chief executive of General Motors, Rick Wagoner, resigned Sunday as part of a broad agreement with the Obama administration to funnel more government aid to the ailing auto...
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Big Week, Big Push-backs, Fed Test
thelfb-forex.com - submitted by TheLFB.com 16 hr ago
There is a heavy calendar of economics spread through the course of the next five days, and spread through most of the major economic regions. The heavy hitting releases really start from Tuesday...
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30 March Probability studies - EUR H&S still intact
fxinstructor.com - submitted by JCKriek 1 hr 25 min ago
by Johan Kriek (jkriek@fxinstructor.com) The daily Head and Shoulders continuation pattern might still be intact due to the fact that price made a peak at 1.3735 which could be the right shoulder’s...
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Risk appetite dominates Aussie
investica.co.uk - submitted by Investica 5 hr ago
Caution is liable to be a key feature over the next 48 hours with unease over the G20 meetings and renewed fears over the US auto sector. In this environment, the Australian dollar will remain...
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New Resistance Line for the Aussie
forexcrunch.com - submitted by Yohay 9 hr ago
AUD/USD fails to extend its gains despite good economic indicators and strong momentum. A new resistance line has been formed, and might be tested later this week.
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G-20 to Set New Rules for Tax Havens Under Regulatory Shake-Up
wsj.com - submitted by Calendar News 13 hr ago
The 20 largest economic nations in the world are expected to produce a new set of rules for oversight, transparency and conduct for offshore tax havens next week as part of a broader effort to...
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30 March - 3 April Technical Over View
4xtechnicales.com - submitted by 4XTechnicale 16 hr ago
GBPUSD GBPUSD on last week failed to form a higher high in order to confirm the down trend reversal. Instead, GBPUSD had formed a neutral top at 1.4777. For this week GBPUSD has to close either...
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GBP/USD - Targeting 1.4000
fxstreet.com - submitted by James Chen 2 hr 3 min ago
Monday morning price action on GBP/USD, a daily chart of which is shown, has extended its bearishness of last week, and currently appears to be targeting key support in the 1.4000 region ...
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ELLIOTT WAVE SUPPORT AND RESISTANCE FOR THE WEEK AHEAD |March 30, 2009
fxreturn.com - submitted by Fxreturn.com 9 hr ago
Monday March 30, 2009- Here are what we feel are the important technical price levels for the the rest of the week as related to the EUR/USD, GBP/USD, EUR/JPY, USD/CHF, USD/JPY, USD/CAD for March 30,...
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Forex Markets to Watch for the Week Ahead March 30, 2009 5:00GMT
fxreturn.com - submitted by Fxreturn.com 10 hr ago (2 comments)
Monday March 30, 2009- Good Morning. We have 8 News Trading opportunities this week for our TON: Trade On News Software starting with Tuesday's CAD GDP m/m figures.Wednesday, we have AUD Retail...
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New Zealand Building Permits +11.6% on Month in Feb
rttnews.com - submitted by Calendar News 17 hr ago
The number of building permits issued in New Zealand was up 11.6 percent in February compared to the previous month, Statistics New Zealand said on Monday. That follows a revised 13.0 percent monthly...
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GM CEO Wagoner to step down: source
reuters.com - submitted by Goat 17 hr ago (1 comment)
NEW YORK (Reuters) - General Motors Corp Chief Executive Rick Wagoner will resign from the top job at the struggling automaker, a person familiar with the matter said on Sunday, just a day before the...
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Forex Daily Outlook - March 30th 2009
forexcrunch.com - submitted by Yohay 21 hr ago
The forex market will be moved mostly by speeches around the globe. Important figures include Japanese Prelim Industrial Production and European Consumer Confidence. Let’s see what’s on the menu…
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GBP/USD This Week - Will support hold?
learningmarkets.com - submitted by lmarkets 21 hr ago (1 comment)
We're looking for a potential bounce off support short-term on both the hourly and daily charts. But British GDP showed the economy is slowing significantly, and we could see tests of support later...
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WEEKLY Technical Strategist: GBPUSD
fxtechstrategy.com - submitted by Mohammed Isah 23 hr ago
Shooting Star Formation With Downside Implication. GBPUSD- GBP’s recovery activated at the 1.3655 level, its Mar 11’09 low failed ahead of a key resistance at its Jan 16’09/Feb 09’09 highs at...
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A Simple 10 Minute Video for Understanding the US Economic Crisis
youtube.com - submitted by Simit Patel 46 min ago
This video offers a simple explanation of the economic crisis in the US, its causes, and potential solutions as well.
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Bloomberg Video: A Look at Replacing the USD with New Reserve Currency
informedtrades.com - submitted by David Waring 55 min ago
Good overview of China's proposal for a new reserve currency.
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This Weeks Events Clouds Growing Optimism
ac-markets.com - submitted by ACM Forex 3 hr ago
Participants are viewing this week as the potential turning point in the greenbacks fate. Equity markets are all lower with the DAX down -3.5% and Dow futures pointing to a weak opening as risk...
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FX Thoughts for the day : 30-Mar-2009...
fxthoughts.com - submitted by FXThoughts 3 hr ago
USD-CHF @ 1.1495/97...Consolidate near 1.1520-65 -------------------------------------- R: 1.1520-65 / 1.1579 / 1.1593 S: 1.1460 / 1.1397 / 1.1351 Dolar-Swiss has been seeing some consolidation...
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U.K. Mortgage Approvals Rise After Interest-Rate Reductions
bloomberg.com - submitted by Calendar News 6 hr ago
U.K. mortgage approvals rose in February as the Bank of England lowered interest rates, a sign the housing slump may be reaching a bottom. Loans for home purchase rose to 38,000, compared with...
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DAILY Technical Strategist
fxtechstrategy.com - submitted by Mohammed Isah 7 hr ago
USDJPY: Struggling With Upside Bias. USDJPY: While the pair’s recovery started at the 93.55 level remains in force, risk of a recapture of the 99.68 level, its Mar 05’09 high is likely. This is...
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No Need to Panic
alibaba.com - submitted by Dutching 9 hr ago
No Need to Panic Author: HU YUE There are no permanent friends in the world, only perpetual interests. This is the first lesson that many Chinese bankers are learning in the new year as their...
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G-20 Set to Fall Short of Grand Goals
wsj.com - submitted by Calendar News 11 hr ago
It was supposed to be the inauguration of a Global New Deal, in the hopes of British Prime Minister Gordon Brown, a comprehensive policy response to the world economic crisis, a root-and-branch...
Forex Calender
Mar 29 - Apr 4 Filter
Date 12:18pm Currency Impact Detail Actual Forecast Previous Chart
Sun
Mar 29 5:45pm NZD Building Consents m/m 11.6% 13.0%
6:21pm AUD HIA New Home Sales 3.9% 8.6%
6:30pm USD Treasury Sec Geithner Speaks
7:50pm JPY Prelim Industrial Production m/m -9.4% -9.1% -10.2%
Mon
Mar 30 4:30am GBP Net Lending to Individuals m/m 1.3B 1.3B 1.2B
4:30am GBP Mortgage Approvals 38K 34K 32K
5:00am EUR Consumer Confidence -34 -33 -33
10:30am EUR ECB President Trichet Speaks
11:30am USD FOMC Member Duke Speaks
2:05pm CAD BOC Gov Carney Speaks
7:01pm GBP GfK Consumer Confidence -35 -35
7:15pm JPY Manufacturing PMI 31.6
7:30pm JPY Household Spending y/y -4.6% -5.9%
7:30pm JPY Unemployment Rate 4.3% 4.1%
8:00pm AUD RBA Deputy Gov Battellino Speaks
8:30pm AUD Private Sector Credit m/m 0.5% 0.6%
9:30pm JPY Average Cash Earnings y/y -1.4% -1.3%
10:00pm NZD NBNZ Business Confidence -41.2
10:20pm AUD RBA Assist Gov Debelle Speaks
Tue
Mar 31 1:00am JPY Housing Starts y/y -17.6% -18.7%
2:00am CHF UBS Consumption Indicator 0.99
3:55am EUR German Unemployment Change 53K 40K
4:00am EUR Italian Retail Sales m/m -0.4% 0.0%
4:30am GBP Index of Services 3m/3m -1.0% -0.9%
5:00am EUR CPI Flash Estimate y/y 0.7% 1.2%
5:00am EUR Italian Prelim CPI m/m 0.2% 0.2%
8:30am CAD GDP m/m -0.6% -1.0%
8:30am CAD RMPI m/m 0.2% 1.4%
8:30am CAD IPPI m/m 0.4% -0.1%
9:00am GBP MPC Member Tucker Speaks
9:00am USD S&P/CS Composite-20 HPI y/y -18.5% -18.5%
9:45am USD Chicago PMI 34.3 34.2
10:00am USD CB Consumer Confidence 27.8 25.0
6:30pm AUD AIG Manufacturing Index 31.7
7:50pm JPY Tankan Manufacturing Index -55 -24
7:50pm JPY Tankan Non-Manufacturing Index -26 -9
8:30pm AUD Building Approvals m/m 1.5% -3.7%
8:30pm AUD Retail Sales m/m -0.5% 0.2%
Wed
Apr 1 1:30am AUD Commodity Prices y/y 19.1%
2:00am EUR German Retail Sales m/m 0.2% -0.9%
1st-9th GBP Halifax HPI m/m -2.0% -2.3%
3:30am CHF SVME PMI 33.0 32.6
4:00am EUR Final Manufacturing PMI 34.0 34.0
4:30am GBP Manufacturing PMI 34.9 34.7
4:30am GBP Housing Equity Withdrawal q/q -6.2B -5.7B
5:00am EUR Unemployment Rate 8.3% 8.2%
7:30am USD Challenger Job Cuts y/y 158.4%
8:15am USD ADP Non-Farm Employment Change -660K -697K
10:00am USD ISM Manufacturing PMI 35.7 35.8
10:00am USD Pending Home Sales m/m 0.3% -7.7%
10:00am USD Construction Spending m/m -1.7% -3.3%
10:00am USD ISM Manufacturing Prices 32.4 29.0
10:30am USD Crude Oil Inventories 3.3M
All Day USD Total Vehicle Sales 9.3M 9.1M
2:10pm CAD BOC Gov Carney Speaks
2:45pm CAD BOC Gov Carney Speaks
7:50pm JPY Monetary Base y/y 6.8% 6.4%
8:30pm AUD Trade Balance 0.70B 0.97B
10:00pm NZD ANZ Commodity Prices m/m -4.6%
Thu
Apr 2 2:00am GBP Nationwide HPI m/m -1.5% -1.8%
All Day ALL G20 Meetings
4:00am CHF Gov Board Member Hildebrand Speaks
4:30am GBP BOE Credit Conditions Survey
4:30am GBP Construction PMI 27.6 27.8
7:45am EUR Minimum Bid Rate 1.00% 1.50%
8:30am EUR ECB Press Conference
8:30am USD Unemployment Claims 653K 652K
10:00am EUR ECB President Trichet Speaks
10:00am USD Factory Orders m/m 1.5% -1.9%
10:30am USD Natural Gas Storage 3B
6:30pm AUD AIG Services Index 32.2
Fri
Apr 3 2:00am EUR German Import Prices m/m -0.3% -0.5%
3:15am CHF CPI m/m 0.0% 0.2%
4:00am EUR Final Services PMI 40.1 40.1
4:30am GBP Services PMI 43.6 43.2
8:30am USD Non-Farm Employment Change -662K -651K
8:30am USD Unemployment Rate 8.5% 8.1%
8:30am USD Average Hourly Earnings m/m 0.2% 0.2%
10:00am USD ISM Non-Manufacturing PMI 41.9 41.6
11:00am USD FOMC Member Kohn Speaks
12:00pm USD Fed Chairman Bernanke Speaks
Sat
Apr 4 10:00am NZD Daylight Saving Time Shift
12:00pm AUD Daylight Saving Time Shift
Date 12:18pm Currency Impact Detail Actual Forecast Previous Chart
Sun
Mar 29 5:45pm NZD Building Consents m/m 11.6% 13.0%
6:21pm AUD HIA New Home Sales 3.9% 8.6%
6:30pm USD Treasury Sec Geithner Speaks
7:50pm JPY Prelim Industrial Production m/m -9.4% -9.1% -10.2%
Mon
Mar 30 4:30am GBP Net Lending to Individuals m/m 1.3B 1.3B 1.2B
4:30am GBP Mortgage Approvals 38K 34K 32K
5:00am EUR Consumer Confidence -34 -33 -33
10:30am EUR ECB President Trichet Speaks
11:30am USD FOMC Member Duke Speaks
2:05pm CAD BOC Gov Carney Speaks
7:01pm GBP GfK Consumer Confidence -35 -35
7:15pm JPY Manufacturing PMI 31.6
7:30pm JPY Household Spending y/y -4.6% -5.9%
7:30pm JPY Unemployment Rate 4.3% 4.1%
8:00pm AUD RBA Deputy Gov Battellino Speaks
8:30pm AUD Private Sector Credit m/m 0.5% 0.6%
9:30pm JPY Average Cash Earnings y/y -1.4% -1.3%
10:00pm NZD NBNZ Business Confidence -41.2
10:20pm AUD RBA Assist Gov Debelle Speaks
Tue
Mar 31 1:00am JPY Housing Starts y/y -17.6% -18.7%
2:00am CHF UBS Consumption Indicator 0.99
3:55am EUR German Unemployment Change 53K 40K
4:00am EUR Italian Retail Sales m/m -0.4% 0.0%
4:30am GBP Index of Services 3m/3m -1.0% -0.9%
5:00am EUR CPI Flash Estimate y/y 0.7% 1.2%
5:00am EUR Italian Prelim CPI m/m 0.2% 0.2%
8:30am CAD GDP m/m -0.6% -1.0%
8:30am CAD RMPI m/m 0.2% 1.4%
8:30am CAD IPPI m/m 0.4% -0.1%
9:00am GBP MPC Member Tucker Speaks
9:00am USD S&P/CS Composite-20 HPI y/y -18.5% -18.5%
9:45am USD Chicago PMI 34.3 34.2
10:00am USD CB Consumer Confidence 27.8 25.0
6:30pm AUD AIG Manufacturing Index 31.7
7:50pm JPY Tankan Manufacturing Index -55 -24
7:50pm JPY Tankan Non-Manufacturing Index -26 -9
8:30pm AUD Building Approvals m/m 1.5% -3.7%
8:30pm AUD Retail Sales m/m -0.5% 0.2%
Wed
Apr 1 1:30am AUD Commodity Prices y/y 19.1%
2:00am EUR German Retail Sales m/m 0.2% -0.9%
1st-9th GBP Halifax HPI m/m -2.0% -2.3%
3:30am CHF SVME PMI 33.0 32.6
4:00am EUR Final Manufacturing PMI 34.0 34.0
4:30am GBP Manufacturing PMI 34.9 34.7
4:30am GBP Housing Equity Withdrawal q/q -6.2B -5.7B
5:00am EUR Unemployment Rate 8.3% 8.2%
7:30am USD Challenger Job Cuts y/y 158.4%
8:15am USD ADP Non-Farm Employment Change -660K -697K
10:00am USD ISM Manufacturing PMI 35.7 35.8
10:00am USD Pending Home Sales m/m 0.3% -7.7%
10:00am USD Construction Spending m/m -1.7% -3.3%
10:00am USD ISM Manufacturing Prices 32.4 29.0
10:30am USD Crude Oil Inventories 3.3M
All Day USD Total Vehicle Sales 9.3M 9.1M
2:10pm CAD BOC Gov Carney Speaks
2:45pm CAD BOC Gov Carney Speaks
7:50pm JPY Monetary Base y/y 6.8% 6.4%
8:30pm AUD Trade Balance 0.70B 0.97B
10:00pm NZD ANZ Commodity Prices m/m -4.6%
Thu
Apr 2 2:00am GBP Nationwide HPI m/m -1.5% -1.8%
All Day ALL G20 Meetings
4:00am CHF Gov Board Member Hildebrand Speaks
4:30am GBP BOE Credit Conditions Survey
4:30am GBP Construction PMI 27.6 27.8
7:45am EUR Minimum Bid Rate 1.00% 1.50%
8:30am EUR ECB Press Conference
8:30am USD Unemployment Claims 653K 652K
10:00am EUR ECB President Trichet Speaks
10:00am USD Factory Orders m/m 1.5% -1.9%
10:30am USD Natural Gas Storage 3B
6:30pm AUD AIG Services Index 32.2
Fri
Apr 3 2:00am EUR German Import Prices m/m -0.3% -0.5%
3:15am CHF CPI m/m 0.0% 0.2%
4:00am EUR Final Services PMI 40.1 40.1
4:30am GBP Services PMI 43.6 43.2
8:30am USD Non-Farm Employment Change -662K -651K
8:30am USD Unemployment Rate 8.5% 8.1%
8:30am USD Average Hourly Earnings m/m 0.2% 0.2%
10:00am USD ISM Non-Manufacturing PMI 41.9 41.6
11:00am USD FOMC Member Kohn Speaks
12:00pm USD Fed Chairman Bernanke Speaks
Sat
Apr 4 10:00am NZD Daylight Saving Time Shift
12:00pm AUD Daylight Saving Time Shift
Forex Examples
Trading forex with City Credit Capital has been made simple and fast using our proprietary technology CCC Trader. Review the examples below to see how easy it is for yourself.
Opening a position
You decide to go long dollar against the yen. Our quote is 104.97/105.02. You buy one contract (equivalent of $100,000) at 105.02. To open this position, you just need to supply a deposit of $1000 (1% of $100,000).
Interest adjustments
If the position remains open overnight (when we run our day-end processing) your account is debited or credited daily to reflect the effect of the interest rate differential between the dollar and the yen. Dollar interest rates are higher than yen rates and you receive interest for holding a long position in the higher rate currency, so the interest adjustment is credited to your account.
Closing the position
Three weeks later, USDJPY has risen to 106.85/106.90 and you take your profit by selling one contract at 106.85. Your profit on the trade is calculated as follows:
Calculating profilts
Buy 1 contract at 105.02 (¥10,502,000)
Sell 1 contract at 106.85 (¥10,685,000)
Total Profit (profit plus interest)1712.68+(.70x3)
Return On Capital 85.7%
*Subject to variation
1% margin required ($1,000*)
¥183,000/106.85 = $1,712.68
Total Profit = $1,714.78
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
Opening a position
You decide to go long dollar against the yen. Our quote is 104.97/105.02. You buy one contract (equivalent of $100,000) at 105.02. To open this position, you just need to supply a deposit of $1000 (1% of $100,000).
Interest adjustments
If the position remains open overnight (when we run our day-end processing) your account is debited or credited daily to reflect the effect of the interest rate differential between the dollar and the yen. Dollar interest rates are higher than yen rates and you receive interest for holding a long position in the higher rate currency, so the interest adjustment is credited to your account.
Closing the position
Three weeks later, USDJPY has risen to 106.85/106.90 and you take your profit by selling one contract at 106.85. Your profit on the trade is calculated as follows:
Calculating profilts
Buy 1 contract at 105.02 (¥10,502,000)
Sell 1 contract at 106.85 (¥10,685,000)
Total Profit (profit plus interest)1712.68+(.70x3)
Return On Capital 85.7%
*Subject to variation
1% margin required ($1,000*)
¥183,000/106.85 = $1,712.68
Total Profit = $1,714.78
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
Trading Strategies
There are almost as many trading strategies used in the forex market as there are traders. But there is some commonality shared by most forex market participants.
The majority of forex traders choose to adopt a trading strategy based on either technical or fundamental analysis, or a combination of both. The description below outlines some of the defining features of both these approaches.
Technical Analysis
Fundamental Analysis
Technical Analysis concentrates on the simple fact that history repeats itself as well as a graphical representation of the market price action. This type of analysis is ideal for long-term to short-term strategies, depending on the timeframe used during the analysis process. Use the technical analysis to develop a trading plan and define the target and stop loss for any trade.
Fundamental Analysis focuses mainly on the economic, social and political forces that drive the supply and demand, hence the market price. This type of analysis concentrates on macroeconomic indicators such as economic growth rates, interest rates, monetary policy, inflation and unemployment.
Technical and fundamental analysis are both closely linked but they are independent and complementary. Fundamentals assess general market trends while technical analysis is more refined, providing specific entry and exit points for a trade. It is recommended to use a combination of both when defining your trading plan.
Any trading strategy in foreign exchange is based on the following assumptions:
The state of the market
Timeframe for trades
Time your trade properly
Gauge sentiment
First of all you take an overall view of where the market is going.
Determine if the position you want to take is long term or short term.
Don’t jump on the first price available, wait until YOUR price is available.
Review technical analysts' consensus and political conditions.
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
The majority of forex traders choose to adopt a trading strategy based on either technical or fundamental analysis, or a combination of both. The description below outlines some of the defining features of both these approaches.
Technical Analysis
Fundamental Analysis
Technical Analysis concentrates on the simple fact that history repeats itself as well as a graphical representation of the market price action. This type of analysis is ideal for long-term to short-term strategies, depending on the timeframe used during the analysis process. Use the technical analysis to develop a trading plan and define the target and stop loss for any trade.
Fundamental Analysis focuses mainly on the economic, social and political forces that drive the supply and demand, hence the market price. This type of analysis concentrates on macroeconomic indicators such as economic growth rates, interest rates, monetary policy, inflation and unemployment.
Technical and fundamental analysis are both closely linked but they are independent and complementary. Fundamentals assess general market trends while technical analysis is more refined, providing specific entry and exit points for a trade. It is recommended to use a combination of both when defining your trading plan.
Any trading strategy in foreign exchange is based on the following assumptions:
The state of the market
Timeframe for trades
Time your trade properly
Gauge sentiment
First of all you take an overall view of where the market is going.
Determine if the position you want to take is long term or short term.
Don’t jump on the first price available, wait until YOUR price is available.
Review technical analysts' consensus and political conditions.
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
Forex Prodect List
Trading forex with City Credit Capital gives you access to a wealth of foreign exchange products to trade regardless of whether you download the CCC Trader, trade on the web-based version or conduct your trading over the telephone.
The list below details the currency pairs you can trade, the reference market for each and the market opening hours.
Major Currency Pairs
AUD/USD
GBP/USD
EUR/CHF
NZD/USD
EUR/GBP
USD/CAD
EUR/JPY
USD/CHF
EUR/USD
USD/JPY
GBP/CHF
AUD/JPY
GBP/JPY
CHF/JPY
Spot FX
Reference Market: INTERBANK
Trading Hours: Sun 22:00 to Fri 21:00 - Time Break 22:00-22:05 (London Time)
Product Names
Contract Value
Min Pip
Tick Value
Margin Requirement
EUR/USD
100,000 EUR
0,0001
10 USD
$1,000
USD/JPY
100,000 USD
0,01
1,000 JPY
$1,000
GBP/USD
100,000 GBP
0,0001
10 USD
$1,000
USD/CHF
100,000 USD
0,0001
10 CHF
$1,000
USD/CAD
100,000 USD
0,0001
10 CAD
$1,000
AUD/USD
100,000 AUD
0,0001
10 USD
$1,000
NZD/USD
100,000 NZD
0,0001
10 USD
$1,000
EUR/JPY
100,000 EUR
0,01
1,000 JPY
$1,000
GBP/JPY
100,000 GBP
0,01
1,000 JPY
$1,000
CHF/JPY
100,000 CHF
0,01
1,000 JPY
$1,000
AUD/JPY
100,000 AUD
0,01
1,000 JPY
$1,000
EUR/GBP
100,000 EUR
0,0001
10 GBP
$1,000
EUR/CHF
100,000 EUR
0,0001
10 CHF
$1,000
GBP/CHF
100,000 GBP
0,0001
10 CHF
$1,000
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
The list below details the currency pairs you can trade, the reference market for each and the market opening hours.
Major Currency Pairs
AUD/USD
GBP/USD
EUR/CHF
NZD/USD
EUR/GBP
USD/CAD
EUR/JPY
USD/CHF
EUR/USD
USD/JPY
GBP/CHF
AUD/JPY
GBP/JPY
CHF/JPY
Spot FX
Reference Market: INTERBANK
Trading Hours: Sun 22:00 to Fri 21:00 - Time Break 22:00-22:05 (London Time)
Product Names
Contract Value
Min Pip
Tick Value
Margin Requirement
EUR/USD
100,000 EUR
0,0001
10 USD
$1,000
USD/JPY
100,000 USD
0,01
1,000 JPY
$1,000
GBP/USD
100,000 GBP
0,0001
10 USD
$1,000
USD/CHF
100,000 USD
0,0001
10 CHF
$1,000
USD/CAD
100,000 USD
0,0001
10 CAD
$1,000
AUD/USD
100,000 AUD
0,0001
10 USD
$1,000
NZD/USD
100,000 NZD
0,0001
10 USD
$1,000
EUR/JPY
100,000 EUR
0,01
1,000 JPY
$1,000
GBP/JPY
100,000 GBP
0,01
1,000 JPY
$1,000
CHF/JPY
100,000 CHF
0,01
1,000 JPY
$1,000
AUD/JPY
100,000 AUD
0,01
1,000 JPY
$1,000
EUR/GBP
100,000 EUR
0,0001
10 GBP
$1,000
EUR/CHF
100,000 EUR
0,0001
10 CHF
$1,000
GBP/CHF
100,000 GBP
0,0001
10 CHF
$1,000
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
WHY TRADE FOREX?
Why Trade Forex? The foreign exchange market, also referred to as the "Forex" or "FX" market, is the largest and most liquid, financial market in the world.
Three countries (UK, USA and Japan) continue to dominate the forex market. With a turnover of just under 3 trillion US dollars a day, the forex market dwarfs the London, New York and Tokyo stock exchanges combined. Forex provides several advantages when compared with traditional investments.
Below are several examples of these advantages:
Traditional Marketplace
Forex Market
Limited trading hours; trading times restricted to “local” market which decreases the attractiveness of the market for overseas investors.
The forex market is open 24 hours a day, 5 days a week. Because of the decentralised clearing of trades and overlap of major markets in Asia, London and the United States, the market remains open and liquid throughout the day and overnight.
Threat of limited liquidity, stocks are particularly vulnerable to large price fluctuations in after-hour markets or when trading smaller corporate issues.
The foreign exchange market is the most liquid market in the world eclipsing all others. In comparative terms, daily volumes are more than 40 times that of the Dow Jones Index.
Large capital requirements, high margin rates, restrictions on shorting, very little autonomy.
One consistent margin rate 24-hours a day allows forex traders to leverage their capital more efficiently.
Short selling and stop order restrictions.
No restrictions on type (market, limit or stop orders) or timing of trades.
Pattern day traders subject to restrictions requiring a substantial amount of cash on account prior to trading.
No restrictions. Very low account balances, due to leverage/margin strategy. Lower client account requirements.
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
Three countries (UK, USA and Japan) continue to dominate the forex market. With a turnover of just under 3 trillion US dollars a day, the forex market dwarfs the London, New York and Tokyo stock exchanges combined. Forex provides several advantages when compared with traditional investments.
Below are several examples of these advantages:
Traditional Marketplace
Forex Market
Limited trading hours; trading times restricted to “local” market which decreases the attractiveness of the market for overseas investors.
The forex market is open 24 hours a day, 5 days a week. Because of the decentralised clearing of trades and overlap of major markets in Asia, London and the United States, the market remains open and liquid throughout the day and overnight.
Threat of limited liquidity, stocks are particularly vulnerable to large price fluctuations in after-hour markets or when trading smaller corporate issues.
The foreign exchange market is the most liquid market in the world eclipsing all others. In comparative terms, daily volumes are more than 40 times that of the Dow Jones Index.
Large capital requirements, high margin rates, restrictions on shorting, very little autonomy.
One consistent margin rate 24-hours a day allows forex traders to leverage their capital more efficiently.
Short selling and stop order restrictions.
No restrictions on type (market, limit or stop orders) or timing of trades.
Pattern day traders subject to restrictions requiring a substantial amount of cash on account prior to trading.
No restrictions. Very low account balances, due to leverage/margin strategy. Lower client account requirements.
Risk Warning
The trading of Foreign Exchange, derivatives and Contracts for Difference carries a high level of risk to your capital and it is possible to lose more than your initial investment. Only speculate with money you can afford to lose. These products may not be suitable for all investors, therefore ensure you fully understand the risks involved and seek independent advice where necessary.
Thursday, March 26, 2009
Forex Beginner
1: Will I get rich from Forex? Definitely! Are you ready to learn?
The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day.
2: Online Currency Trading requires Patience
When the going gets tough, the tough get going. This adage often brings back the memories of my past days when I was trading initially in the currency exchange market. Indeed, there's nothing more hurtful than losing your invested money in the FX market. But, online currency trading is like life where you're got to learn from your wrong moves and keep moving on.
3: Forex - What is it?
The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration.
4: Short data about the origin and development of the currency exchange market
Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, which were transferable third-party payments that allowed flexibility and growth in foreign exchange dealings.
5: Risks by the foreign exchange on Forex
The Forex is essentially risk-bearing. By the evaluation of the grade of a possible risk accounted should be the following kinds of it: exchange rate risk, interest rate risk, and credit risk, country risk.
6: Charts for the technical analysis
Kinds of prices and time units. Charts for the technical analysis are being constructed in coordinates price (the vertical axis) � time (the horizontal axis)�. The following kinds of currency prices represented on charts are being distinguished on Forex:
7: Forex Glossary
Here are some of the most common terms used in FOREX trading. Ask Price ¨C Sometimes called the Offer Price, this is the market price for traders to buy currencies.
8: Forex Trading Education - The London Open Checklist
The start of the London trading session marks a period of increased volatility in the Forex market and a period of more opportunities to trade. As part of your Forex trading education, run through this checklist to see if you can identify good trade setups regularly at this time of day.
The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day.
2: Online Currency Trading requires Patience
When the going gets tough, the tough get going. This adage often brings back the memories of my past days when I was trading initially in the currency exchange market. Indeed, there's nothing more hurtful than losing your invested money in the FX market. But, online currency trading is like life where you're got to learn from your wrong moves and keep moving on.
3: Forex - What is it?
The international currency market Forex is a special kind of the world financial market. Trader’s purpose on the Forex to get profit as the result of foreign currencies purchase and sale. The exchange rates of all currencies being in the market turnover are permanently changing under the action of the demand and supply alteration.
4: Short data about the origin and development of the currency exchange market
Currency trading has a long history and can be traced back to the ancient Middle East and Middle Ages when foreign exchange started to take shape after the international merchant bankers devised bills of exchange, which were transferable third-party payments that allowed flexibility and growth in foreign exchange dealings.
5: Risks by the foreign exchange on Forex
The Forex is essentially risk-bearing. By the evaluation of the grade of a possible risk accounted should be the following kinds of it: exchange rate risk, interest rate risk, and credit risk, country risk.
6: Charts for the technical analysis
Kinds of prices and time units. Charts for the technical analysis are being constructed in coordinates price (the vertical axis) � time (the horizontal axis)�. The following kinds of currency prices represented on charts are being distinguished on Forex:
7: Forex Glossary
Here are some of the most common terms used in FOREX trading. Ask Price ¨C Sometimes called the Offer Price, this is the market price for traders to buy currencies.
8: Forex Trading Education - The London Open Checklist
The start of the London trading session marks a period of increased volatility in the Forex market and a period of more opportunities to trade. As part of your Forex trading education, run through this checklist to see if you can identify good trade setups regularly at this time of day.
Wednesday, March 25, 2009
Welcome to ForexArticleCollection.com
The Foreign Exchange market, also referred to as the Forex or FX market, is an international exchange market in the world, with a daily average turnover of approximately from 1.5 trillion to 2.5 trillion US dollar. Hundreds of thousands of individuals have already joined the Forex market.
In order to improve your Forex trading skills, you need to make the most of the information at your fingertips.
Here we collect the most popular and helpful Forex articles. All these Forex articles are written by the excellent Forex traders, strategists and analysts. You'll find the articles, trading courses and methods that are an indispensable inherent part of improving your Forex trading strategy.
CategoriesFinance
Forex Beginner
Forex Broker
Forex Trading
Fundamental Analysis
Futures and Options
Money Management
Stock Market
Technical Analysis
Trading Strategy
Trading Systems
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We have all heard and read how much money we can make from Forex Trading, so what are the real rules and tips that will make us money from Forex Trading? Below we will uncover the real tips for Success.
5: Stock Market Trading - Winning Trading Plan
Successful stock market trading begins with a winning trading plan. It's as simple as that. If you develop a well-conceived trading plan to guide your actions in the stock market you will already have the advantage over most of your market competition. Put simply, it gives you the edge you need to win over the long haul when trading the stock market or forex market.
In order to improve your Forex trading skills, you need to make the most of the information at your fingertips.
Here we collect the most popular and helpful Forex articles. All these Forex articles are written by the excellent Forex traders, strategists and analysts. You'll find the articles, trading courses and methods that are an indispensable inherent part of improving your Forex trading strategy.
CategoriesFinance
Forex Beginner
Forex Broker
Forex Trading
Fundamental Analysis
Futures and Options
Money Management
Stock Market
Technical Analysis
Trading Strategy
Trading Systems
Recommended Articles
1: Knowing the Ins and Outs of Chandelier Exit
Have you ever heard of a stop placement strategy that trails stop based on previous 'high' points? It is called Chandelier exit as it hangs down from the high point or the ceiling of our trade, just as a chandelier hangs from a room ceiling. The distance, which is usually calculated from the high point to the trailing stop; could also be calculated in dollars or in contract based points. However, the value of this trailing stop moves upward very promptly as higher highs is reached.
2: Cashing In On Discounted Loans
It is important to learn about any discount payday loan before applying for one. Always borrow responsibly.
Latest Articles
1: Forex Brokers - Make the Right Choice Not A Mistake
With the modern times of mobile communication, it is not unusual to find hidden in a home a trader or a broker who is doing their Forex Trading from the comfort of their own home. Today to be a forex trader all that you require is a computer setup to multi screen investing servers, the number of the casual or evens serious home based forex traders has grown a great deal of late and this is because of the internet and the popularity of certain commodity trades.
2: How to Start Forex with a Great Training Course
what to look for when choosing a forex training course.
3: CFD Trading 95% Lose - How To Win
Everybody starts out in CFD Trading wanting to make money but a whopping 95% of Traders lose, which leaves 5% winners. So what is it that the 5% of CFD Traders are doing to make them win in CFD Trading. What are the mistakes that the 95% of people are making, and how can you avoid them!
4: Forex Trading - The top 5 Tips
We have all heard and read how much money we can make from Forex Trading, so what are the real rules and tips that will make us money from Forex Trading? Below we will uncover the real tips for Success.
5: Stock Market Trading - Winning Trading Plan
Successful stock market trading begins with a winning trading plan. It's as simple as that. If you develop a well-conceived trading plan to guide your actions in the stock market you will already have the advantage over most of your market competition. Put simply, it gives you the edge you need to win over the long haul when trading the stock market or forex market.
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