Hi friends...
Let us talk about forex market. What exciting things happened today? lets review these news.
Major and more exciting news is there are no UK figures or policy maker speeches today. The data highlight comes on Wednesday when all eyes will be watching whether the ONS revises up its first estimate of Q3 GDP frmo -0.4%, which at the time defied expectations of the UK exiting recession during the quarter. Given the Q3 PMIs and recent signs of strength in other data, we have pencilled in a modest upward revision to -0.3%. Governor King and four of his MPC colleagues testify on the Inflation Report projections at the Treasury Select Committee (tomorrow).
The flash PMIs for November are published for the euro area today. We expect the headline indices from both the manufacturing and services sectors to edge higher in the month, to 51.0 from 50.7, and to 52.8 from 52.6, respectively. As a result, the composite PMI should also post a gain, supporting our view that activity in the euro area is expanding in the current quarter at a similar rate to the 0.4% recorded in Q3 - see chart. ECB President Trichet is scheduled to speak this afternoon.
Heading into the US Thanksgiving break on Thursday, trading conditions are expected to be thin. Today, there is only the existing home sales report. Given the strong improvement in September, we expect only a modest gain in sales to 5.6m for October. It was all about today. have a great day ahead.
Monday, November 23, 2009
EUR/USD: Euro rallies past 1.4945/50 area
Euro has recovered its position in market. Euro recovery from Friday's low at 1.4800, has extended with a 100 pips rally during Asian session, reaching levels around past 1.4950 at the moment of writing; 0.65% above its day opening price.
At the moment, the Euro could find resistance at 1.4965 (Nov 19 high), and above here, 1.4990 (Nov 18 high) and 1.5015 (Nov 16 high). On the downside, support levels are 1.4910/15, and below here, 1.4875/80 and 1.4830.
EUR/GBP has continued crawling higher during Asian session, extending upleg from 0.8835 low on November 17 to 0.9040 session high on Monday. Resistance levels are 0.9060 and 0.9120. Support levels are 0.8980 and 0.8930
It was all about position of EURO today. And trend index is slightly bullish today.
At the moment, the Euro could find resistance at 1.4965 (Nov 19 high), and above here, 1.4990 (Nov 18 high) and 1.5015 (Nov 16 high). On the downside, support levels are 1.4910/15, and below here, 1.4875/80 and 1.4830.
EUR/GBP has continued crawling higher during Asian session, extending upleg from 0.8835 low on November 17 to 0.9040 session high on Monday. Resistance levels are 0.9060 and 0.9120. Support levels are 0.8980 and 0.8930
It was all about position of EURO today. And trend index is slightly bullish today.
USD/JPY: Dollar breaks below 88.65, hits 6-week low
In FXstreet.com, it is reported today that USD/JPY has finally broken through 88.65 support, the floor of the latest two day's trading range, the Yen attacked 89.00 level on early Asian session, filed, and turned lower reaching a fresh 6-week low at 88.55.
In case of confirming decline below 88.65 (Nov 19 and 20 low), next support levels lie at 88.35 (Oct 9 low) and 88.00 (Oct 7 low). On the upside, resistance levels lie at 89.00 (session high), and above here, 89.15 (Nov 20 high) and 89.50 (Nov 18 and 17 high).
EUR/JPY bounced at 131.85 low on early Asian session, right above key support at 131.75/80, and the pair rallied through the session to reach 132.85 high. Resistance levels lie at 132.90/00 and 134.00. Support levels are 132.80 and 132.45/60
It was all about forex market's today's position. And the trend index was slightly bearish.
In case of confirming decline below 88.65 (Nov 19 and 20 low), next support levels lie at 88.35 (Oct 9 low) and 88.00 (Oct 7 low). On the upside, resistance levels lie at 89.00 (session high), and above here, 89.15 (Nov 20 high) and 89.50 (Nov 18 and 17 high).
EUR/JPY bounced at 131.85 low on early Asian session, right above key support at 131.75/80, and the pair rallied through the session to reach 132.85 high. Resistance levels lie at 132.90/00 and 134.00. Support levels are 132.80 and 132.45/60
It was all about forex market's today's position. And the trend index was slightly bearish.
Tuesday, November 17, 2009
The use of high leverage
By offering high leverage, the market maker encourages traders to trade extremely large positions. This increases the trading volume cleared by the market maker and increases his profits, but increases the risk that the trader will receive a margin call. While professional currency dealers (banks, hedge funds) never use more than 10:1 leverage, retail clients are generally offered leverage between 50:1 and 200:1
A self-regulating body for the foreign exchange market, the National Futures Association, warns traders in a forex training presentation of the risk in trading currency. “As stated at the beginning of this program, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all customers. The only funds that should ever be used to speculate in foreign currency trading, or any type of highly speculative investment, are funds that represent risk capital; in other words, funds you can afford to lose without affecting your financial situation.
A self-regulating body for the foreign exchange market, the National Futures Association, warns traders in a forex training presentation of the risk in trading currency. “As stated at the beginning of this program, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all customers. The only funds that should ever be used to speculate in foreign currency trading, or any type of highly speculative investment, are funds that represent risk capital; in other words, funds you can afford to lose without affecting your financial situation.
Commodities traded on the New York Mercantile Exchange
NYMEX Division:
Coal
Crude oil
Electricity
Gasoline
Heating oil
Natural gas
Palladium
Platinum
Propane
Uranium
COMEX Division:
Aluminum
Copper
Gold
Silver
Coal
Crude oil
Electricity
Gasoline
Heating oil
Natural gas
Palladium
Platinum
Propane
Uranium
COMEX Division:
Aluminum
Copper
Gold
Silver
Oil
Building on the infrastructure and credit and settlement networks established for food and precious metals, many such markets have proliferated drastically in the late 20th century. Oil was the first form of energy so widely traded, and the fluctuations in the oil markets are of particular political interest.
Some commodity market speculation is directly related to the stability of certain states, e.g. during the Persian Gulf War, speculation on the survival of the regime of Saddam Hussein in Iraq. Similar political stability concerns have from time to time driven the price of oil.
The oil market is an exception. Most markets are not so tied to the politics of volatile regions - even natural gas tends to be more stable, as it is not traded across oceans by tanker as extensively.
Some commodity market speculation is directly related to the stability of certain states, e.g. during the Persian Gulf War, speculation on the survival of the regime of Saddam Hussein in Iraq. Similar political stability concerns have from time to time driven the price of oil.
The oil market is an exception. Most markets are not so tied to the politics of volatile regions - even natural gas tends to be more stable, as it is not traded across oceans by tanker as extensively.
Regulation of commodity markets
Cotton, kilowatt-hours of electricity, board feet of wood, long distance minutes, royalty payments due on artists' works, and other products and services have been traded on markets of varying scale, with varying degrees of success.[citation needed] One issue that presents major difficulty for creators of such instruments is the liability accruing to the purchaser:
Unless the product or service can be guaranteed or insured to be free of liability based on where it came from and how it got to market, e.g., kilowatts must come to market free from legitimate claims for smog death from coal burning plants, wood must be free from claims that it comes from protected forests, royalty payments must be free of claims of plagiarism or piracy, it becomes impossible for sellers to guarantee a uniform delivery.
Generally, governments must provide a common regulatory or insurance standard and some release of liability, or at least a backing of the insurers, before a commodity market can begin trading. This is a major source of controversy in for instance the energy market, where desirability of different kinds of power generation varies drastically. In some markets, e.g. Toronto, Canada, surveys established that customers would pay 10-15% more for energy that was not from coal or nuclear, but strictly from renewable sources such as wind.[citation needed]
In the United States, the principal regulator of commodity and futures markets is the Commodity Futures Trading Commission.
Unless the product or service can be guaranteed or insured to be free of liability based on where it came from and how it got to market, e.g., kilowatts must come to market free from legitimate claims for smog death from coal burning plants, wood must be free from claims that it comes from protected forests, royalty payments must be free of claims of plagiarism or piracy, it becomes impossible for sellers to guarantee a uniform delivery.
Generally, governments must provide a common regulatory or insurance standard and some release of liability, or at least a backing of the insurers, before a commodity market can begin trading. This is a major source of controversy in for instance the energy market, where desirability of different kinds of power generation varies drastically. In some markets, e.g. Toronto, Canada, surveys established that customers would pay 10-15% more for energy that was not from coal or nuclear, but strictly from renewable sources such as wind.[citation needed]
In the United States, the principal regulator of commodity and futures markets is the Commodity Futures Trading Commission.
Futures contracts
A futures contract has the same general features as a forward contract. Futures contracts are transacted through a futures exchange. Commodity and Futures contracts are based on what’s termed "Forward" Contracts. Early on these "forward" contracts (agreements to buy now, pay and deliver later) were used as a way of getting products from producer to the consumer. These typically were only for food and agricultural Products. Forward contracts have evolved and have been standardized into what we know today as futures contracts. Although more complex today, early “Forward” contracts for example, were used for rice in seventeenth century Japan. Modern "forward", or futures agreements, began in Chicago in the 1840s, with the appearance of the railroads. Chicago, being centrally located, emerged as the hub between Midwestern farmers and producers and the east coast consumer population centers.
Recent Trends in Commodities
The global increase in prices of commodities in 2008 was more increased by high demand from the likes of India and China and uncontrollable speculation in forward markets. This price increase was for every commodity from coal to corn. This become at its peak in the closing months of 2008 across the board. As a result, after years of record revenue farmers are expected to face a sharp drop in crop prices. Other commodities, such as steel, are also expected to tumble due to lower demand. It may be positive for manufacturing industries. These industries will experience a drop in some input costs, partly offsetting the decline in downstream demand.
Commodity market
Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.
This article focuses on the history and current debates regarding global commodity markets. It covers physical product (food, metals, electricity) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a commodity. Articles on reinsurance markets, stock markets, bond markets and currency markets cover those concerns separately and in more depth. One focus of this article is the relationship between simple commodity money and the more complex instruments offered in the commodity markets.
The modern commodity markets have their roots in the trading of agricultural products. While wheat and corn, cattle and pigs, were widely traded using standard instruments in the 19th century in the United States, other basic foodstuffs such as soybeans were only added quite recently in most markets.[citation needed] For a commodity market to be established, there must be very broad consensus on the variations in the product that make it acceptable for one purpose or another.
The economic impact of the development of commodity markets is hard to overestimate. Through the 19th century "the exchanges became effective spokesmen for, and innovators of, improvements in transportation, warehousing, and financing, which paved the way to expanded interstate and international trade."[citation needed]
[edit] Early history of commodity markets
Historically, dating from ancient Sumerian use of sheep or goats, or other peoples using pigs, rare seashells, or other items as commodity money, people have sought ways to standardize and trade contracts in the delivery of such items, to render trade itself more smooth and predictable.
Commodity money and commodity markets in a crude early form are believed to have originated in Sumer where small baked clay tokens in the shape of sheep or goats were used in trade. Sealed in clay vessels with a certain number of such tokens, with that number written on the outside, they represented a promise to deliver that number. This made them a form of commodity money - more than an "I.O.U." but less than a guarantee by a nation-state or bank. However, they were also known to contain promises of time and date of delivery - this made them like a modern futures contract. Regardless of the details, it was only possible to verify the number of tokens inside by shaking the vessel or by breaking it, at which point the number or terms written on the outside became subject to doubt. Eventually the tokens disappeared, but the contracts remained on flat tablets. This represented the first system of commodity accounting.
However, the Commodity status of living things is always subject to doubt - it was hard to validate the health or existence of sheep or goats. Excuses for non-delivery were not unknown, and there are recovered Sumerian letters[citation needed] that complain of sickly goats, sheep that had already been fleeced, etc.
If a seller's reputation was good, individual "backers" or "bankers" could decide to take the risk of "clearing" a trade. The observation that trust is always required between market participants later led to credit money. But until relatively modern times, communication and credit were primitive.
Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood and weapons, most of which had standards of quality and timeliness. Considering the many hazards of climate, piracy, theft and abuse of military fiat by rulers of kingdoms along the trade routes, it was a major focus of these civilizations to keep markets open and trading in these scarce commodities. Reputation and clearing became central concerns, and the states which could handle them most effectively became very powerful empires, trusted by many peoples to manage and mediate trade and commerce.
This article focuses on the history and current debates regarding global commodity markets. It covers physical product (food, metals, electricity) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a commodity. Articles on reinsurance markets, stock markets, bond markets and currency markets cover those concerns separately and in more depth. One focus of this article is the relationship between simple commodity money and the more complex instruments offered in the commodity markets.
The modern commodity markets have their roots in the trading of agricultural products. While wheat and corn, cattle and pigs, were widely traded using standard instruments in the 19th century in the United States, other basic foodstuffs such as soybeans were only added quite recently in most markets.[citation needed] For a commodity market to be established, there must be very broad consensus on the variations in the product that make it acceptable for one purpose or another.
The economic impact of the development of commodity markets is hard to overestimate. Through the 19th century "the exchanges became effective spokesmen for, and innovators of, improvements in transportation, warehousing, and financing, which paved the way to expanded interstate and international trade."[citation needed]
[edit] Early history of commodity markets
Historically, dating from ancient Sumerian use of sheep or goats, or other peoples using pigs, rare seashells, or other items as commodity money, people have sought ways to standardize and trade contracts in the delivery of such items, to render trade itself more smooth and predictable.
Commodity money and commodity markets in a crude early form are believed to have originated in Sumer where small baked clay tokens in the shape of sheep or goats were used in trade. Sealed in clay vessels with a certain number of such tokens, with that number written on the outside, they represented a promise to deliver that number. This made them a form of commodity money - more than an "I.O.U." but less than a guarantee by a nation-state or bank. However, they were also known to contain promises of time and date of delivery - this made them like a modern futures contract. Regardless of the details, it was only possible to verify the number of tokens inside by shaking the vessel or by breaking it, at which point the number or terms written on the outside became subject to doubt. Eventually the tokens disappeared, but the contracts remained on flat tablets. This represented the first system of commodity accounting.
However, the Commodity status of living things is always subject to doubt - it was hard to validate the health or existence of sheep or goats. Excuses for non-delivery were not unknown, and there are recovered Sumerian letters[citation needed] that complain of sickly goats, sheep that had already been fleeced, etc.
If a seller's reputation was good, individual "backers" or "bankers" could decide to take the risk of "clearing" a trade. The observation that trust is always required between market participants later led to credit money. But until relatively modern times, communication and credit were primitive.
Classical civilizations built complex global markets trading gold or silver for spices, cloth, wood and weapons, most of which had standards of quality and timeliness. Considering the many hazards of climate, piracy, theft and abuse of military fiat by rulers of kingdoms along the trade routes, it was a major focus of these civilizations to keep markets open and trading in these scarce commodities. Reputation and clearing became central concerns, and the states which could handle them most effectively became very powerful empires, trusted by many peoples to manage and mediate trade and commerce.
Monday, November 16, 2009
List of United States 's stock market indices
Amex indices:
Amex Major Market Index
Amex Volatility Index
Amex Composite Index
Amex Gold Miners Index
CBOE indices:
CBOE DJIA BuyWrite Index (BXD)
CBOE NASDAQ-100 BuyWrite Index (BXN)
CBOE S&P 500 BuyWrite Index (BXM)
CBOE Volatility Index (VIX)
CBOE S&P 100 Volatility Index (VXN)
Dow Jones & Company indices:
Dow Jones Composite Average
Dow Jones Global Titans
Dow Jones Industrial Average
Dow Jones Transportation Average
Dow Jones Utility Average
Dow Jones U.S. Large Cap Growth
Dow Jones U.S. Large Cap Value
Dow Jones U.S. Small Cap Growth
Dow Jones U.S. Small Cap Value
Dow Jones U.S. Total Market
Dow Jones Wilshire 4500
Dow Jones Wilshire 5000 Total Stock Market
Goldman Sachs indices:
GSTI Semiconductor Index
GSTI Software Index
Nasdaq indices:
NASDAQ Composite ([19])
NASDAQ-100
NASDAQ Volatility Index
Russell Indexes (published by Russell Investment Group):
Russell 3000
Russell 3000 Growth
Russell 3000 Value
Russell 1000
Russell 1000 Growth
Russell 1000 Value
Russell 2000
Russell 2000 Growth
Russell 2000 Value
Russell Top 200
Russell Top 200 Growth
Russell Top 200 Value
Russell MidCap
Russell MidCap Growth
Russell MidCap Value
Russell 2500
Russell 2500 Growth
Russell 2500 Value
Russell Small Cap Completeness
Russell Small Cap Completeness Growth
Russell Small Cap Completeness Value
Standard & Poor's indices :
S&P 500
S&P Completion
S&P 500/BARRA Growth
S&P 500/BARRA Value
S&P Midcap 400
S&P Midcap 400/BARRA Growth
S&P Midcap 400/BARRA Value
S&P SmallCap 600
S&P SmallCap 600/BARRA Growth
S&P SmallCap 600/BARRA Value
CPMKTE - The Capital Markets Equity Index
Amex Major Market Index
Amex Volatility Index
Amex Composite Index
Amex Gold Miners Index
CBOE indices:
CBOE DJIA BuyWrite Index (BXD)
CBOE NASDAQ-100 BuyWrite Index (BXN)
CBOE S&P 500 BuyWrite Index (BXM)
CBOE Volatility Index (VIX)
CBOE S&P 100 Volatility Index (VXN)
Dow Jones & Company indices:
Dow Jones Composite Average
Dow Jones Global Titans
Dow Jones Industrial Average
Dow Jones Transportation Average
Dow Jones Utility Average
Dow Jones U.S. Large Cap Growth
Dow Jones U.S. Large Cap Value
Dow Jones U.S. Small Cap Growth
Dow Jones U.S. Small Cap Value
Dow Jones U.S. Total Market
Dow Jones Wilshire 4500
Dow Jones Wilshire 5000 Total Stock Market
Goldman Sachs indices:
GSTI Semiconductor Index
GSTI Software Index
Nasdaq indices:
NASDAQ Composite ([19])
NASDAQ-100
NASDAQ Volatility Index
Russell Indexes (published by Russell Investment Group):
Russell 3000
Russell 3000 Growth
Russell 3000 Value
Russell 1000
Russell 1000 Growth
Russell 1000 Value
Russell 2000
Russell 2000 Growth
Russell 2000 Value
Russell Top 200
Russell Top 200 Growth
Russell Top 200 Value
Russell MidCap
Russell MidCap Growth
Russell MidCap Value
Russell 2500
Russell 2500 Growth
Russell 2500 Value
Russell Small Cap Completeness
Russell Small Cap Completeness Growth
Russell Small Cap Completeness Value
Standard & Poor's indices :
S&P 500
S&P Completion
S&P 500/BARRA Growth
S&P 500/BARRA Value
S&P Midcap 400
S&P Midcap 400/BARRA Growth
S&P Midcap 400/BARRA Value
S&P SmallCap 600
S&P SmallCap 600/BARRA Growth
S&P SmallCap 600/BARRA Value
CPMKTE - The Capital Markets Equity Index
List of Europe 's stock market indices
Dow Jones Stoxx 50 - 50 large blue chip companies in Europe.
Dow Jones Euro Stoxx 50 - 50 large blue chip companies in the Eurozone
FTSE Eurotop 100 - 100 most highly capitalised blue chip companies in Europe
FTSE Euromid - A definitive benchmark for medium capitalisation pan-European equities.
FTSE Euro 100 - The 100 most highly capitalised blue chip companies resident and incorporated within countries representing the Europe Monetary Union (EMU).
FTSEurofirst 80 Index - the 60 largest companies by market capitalisation in the
FTSE Eurozone Index and 20 additional companies selected for their size and sector representation in the Eurozone exclusive of the United Kingdom.
FTSEurofirst 100 Index - the 60 largest companies by market capitalisation in the
FTSE Developed Europe Index and 40 additional companies selected for their size and sector representation in the Eurozone including the United Kingdom.
FTSEurofirst 300 Index - the 300 largest companies ranked by market capitalisation in the FTSE Developed Europe Index.
S&P Europe 350
Dow Jones Euro Stoxx 50 - 50 large blue chip companies in the Eurozone
FTSE Eurotop 100 - 100 most highly capitalised blue chip companies in Europe
FTSE Euromid - A definitive benchmark for medium capitalisation pan-European equities.
FTSE Euro 100 - The 100 most highly capitalised blue chip companies resident and incorporated within countries representing the Europe Monetary Union (EMU).
FTSEurofirst 80 Index - the 60 largest companies by market capitalisation in the
FTSE Eurozone Index and 20 additional companies selected for their size and sector representation in the Eurozone exclusive of the United Kingdom.
FTSEurofirst 100 Index - the 60 largest companies by market capitalisation in the
FTSE Developed Europe Index and 40 additional companies selected for their size and sector representation in the Eurozone including the United Kingdom.
FTSEurofirst 300 Index - the 300 largest companies ranked by market capitalisation in the FTSE Developed Europe Index.
S&P Europe 350
List of Global stock market indices
Large companies not ordered by any nation or type of business. It is in alphabetical order.
BBC Global 30
MSCI World
S&P Global 100
S&P Global 1200
Russell Global 10000 Launched 17/01/07
FTSE CNBC Global 300
FTSE Global 100
Dow Jones Global Titans 50
BBC Global 30
MSCI World
S&P Global 100
S&P Global 1200
Russell Global 10000 Launched 17/01/07
FTSE CNBC Global 300
FTSE Global 100
Dow Jones Global Titans 50
List of futures exchanges
This is a list of futures exchanges.
1) North America
1.1 Canada
1.2 USA
1.3 Mexico
1.4 Caribbean
Canada:
Montreal Exchange
ICE Futures Canada formerly Winnipeg Commodity Exchange
Toronto Stock Exchange and TSX Ventures
Alternative Trading Systems ATS include:
CHI-X Canada
PURE Trading
Alpha Trading
Omega Trading
USA:
Chicago Board Options Exchange (CBOE)
Chicago Mercantile Exchange (CME)
Chicago Board of Trade (CBOT) [Merged 2007, now CME Group]
Chicago Climate Exchange
ELX Electronic Liquidity Exchange
International Securities Exchange (Eurex ISE)
ICE Futures U.S. (Formerly New York Board of Trade or NYBOT)
Kansas City Board of Trade (KCBT)
Minneapolis Grain Exchange (MGEX)
Nadex (formerly HedgeStreet)
NASDAQ OMX Futures Exchange (formerly Philadelphia Board of Trade)
NASDAQ OMX PHLX (formerly Philadelphia Stock Exchange)
New York Mercantile Exchange (NYMEX) [Acquired, August 2008, now CME Group]
NYSE Liffe US
OneChicago (Single-stock futures (SSF's) and Futures on ETFs)
Mexico :
Mexican Derivatives Exchange (MexDer)
Caribbean:
Caribbean Exchange Network (CXN)
2) Europe
2.1 Pan-European
2.2 Austria
2.3 Belgium
2.4 Czech Republic
2.5 Germany
2.6 Greece
2.7 Hungary
2.8 Italy
2.9 The Netherlands
2.10 Poland
2.11 Portugal
2.12 Romania
2.13 Russia
2.14 Spain
2.15 Switzerland
2.16 Turkey
2.17 United Kingdom
Pan-European :
Eurex
Euronext.liffe
European Climate Exchange
OMX
Austria :
Österreichische Termin-und Optionenbörse (ÖTOB)
Belgium :
BELFOX (Belgian Futures & Options Exchange)
NYSE Euronext - Euronext Brussels Derivatives Exchange
Czech Republic:
PSE (Prague Stock Exchange)
Germany :
Risk Management Exchange (RMX), previously called Warenterminbörse Hannover (Commodity Exchange Hannover, WTB)
Greece:
ADEX (Athens Derivatives Exchange)
Hungary:
Budapest Stock Exchange (BSE)
Italy:
IDEM (Italian Derivatives Equity Market)
The Netherlands:
ENDEX (European Energy Derivatives Exchange)
APX Group
Poland :
WGT (Warsaw Commodity Exchange)
GPW (Warsaw Stock Exchange)
Portugal :
BDP (Porto Derivatives Exchange)
Romania :
Bursa de Valori Bucureşti (BVB) (Bucharest Stock Exchange)
Bursa Romana de Marfuri (BRM)
Sibiu Monetary Financial and Commodities Exchange (BMFMS)
Russia :
Moscow Interbank Currency Exchange (MICEX)
Futures & Options RTS (Russian Trading System) (FORTS)
Spain:
Mercado Español de Futuros Financieros (MEFF)
Switzerland:
SOFFEX (Swiss Options & Financial Futures Exchange)
Turkey:
Turkish Derivatives Exchange
United Kingdom:
ICE Futures Europe
London International Financial Futures and Options Exchange (LIFFE), precursor to Euronext.liffe
London Metal Exchange (LME)
NYMEX Europe
3) Asia
3.1 Bangladesh
3.2 Nepal
3.3 China
3.4 Hong Kong
3.5 India
3.6 Indonesia
3.7 Iran
3.8 Japan
3.9 Korea
3.10 Malaysia
3.11 Pakistan
3.12 Singapore
3.13 Taiwan
3.14 Thailand
3.15 United Arab Emirates
Bangladesh :
Bangladesh Commodity Exchange (BCE)
Nepal :
Mercantile Exchange Nepal Limited (MEX)
Nepal Derivative Exchange Limited (NDEX)
China :
Dalian Commodity Exchange (DCE)
Shanghai Futures Exchange (SHFE)
Zhengzhou Commodity Exchange (ZCE)
China Financial Futures Exchange (CFFEX)
Hong Kong :
Hong Kong Exchanges and Clearing (HKEx)
Hong Kong Futures Exchange (HKFE) [merged]
Hong Kong Stock Exchange (HKSE) [merged]
India :
National Stock Exchange of India (NSE)
Bombay Stock Exchange (BSE)
Multi Commodity Exchange of India (MCX)
National Multi Commodity Exchange of India (NMCE)
National Commodity and Derivatives Exchange (NCDEX)
Complete list of Futures Exchanges in India
Indonesia :
Jakarta Futures Exchange (JFX)
Iran :
International Oil Bourse
Japan :
Central Japan Commodity Exchange (C-COM)
Kansai Commodities Exchange (KEX)
Osaka Securities Exchange (OSE)
Tokyo Commodity Exchange (TOCOM)
Tokyo Stock Exchange (TSE)
Tokyo Grain Exchange (TGE)
Yokohama Commodity Exchange (Y-COM)(merged, 2006)
Tokyo Financial Exchange (TFX)
Korea:
Korea Exchange (KRX), formed from merger of
KSE: Korea Stock Exchange: Stock Market Division;
KOFEX: Korea Options & Futures Exchange: Derivatives Division;
KOSDAQ: Technology Stocks: Growth Stocks Market Division.
Malaysia:
Bursa Malaysia
Pakistan :
Karachi Stock Exchange (KSE)
National Commodity Exchange Limited (NCEL)
Singapore :
Singapore Commodity Exchange (SICOM)
Singapore Exchange (SGX)
Taiwan:
Taiwan Futures Exchange (TAIFEX)
Thailand:
Thailand Futures Exchange (TFEX)
Bond Electronic Exchange (BEX)
Agricultural Futures Exchange of Thailand (AFET)
United Arab Emirates:
NASDAQ Dubai
Dubai Gold & Commodities Exchange (DGCX)
Dubai Mercantile Exchange (DME)
4) South America
4.1 Argentina
4.2 Brazil
Argentina:
MATba Mercado a Termino de Buenos Aires
ROFEX (Rosario Futures Exchange)
Brazil :
Brazilian Mercantile and Futures Exchange (BM&F)
Maringá Mercantile and Futures Exchange
5) Oceania
5.1 Australia
5.2 New Zealand
Australia:
Australian Securities Exchange
New Zealand :
New Zealand Exchange
New Zealand Futures & Options Exchange
6) Africa
6.1 South Africa
South Africa:
South African Futures Exchange (SAFEX)
1) North America
1.1 Canada
1.2 USA
1.3 Mexico
1.4 Caribbean
Canada:
Montreal Exchange
ICE Futures Canada formerly Winnipeg Commodity Exchange
Toronto Stock Exchange and TSX Ventures
Alternative Trading Systems ATS include:
CHI-X Canada
PURE Trading
Alpha Trading
Omega Trading
USA:
Chicago Board Options Exchange (CBOE)
Chicago Mercantile Exchange (CME)
Chicago Board of Trade (CBOT) [Merged 2007, now CME Group]
Chicago Climate Exchange
ELX Electronic Liquidity Exchange
International Securities Exchange (Eurex ISE)
ICE Futures U.S. (Formerly New York Board of Trade or NYBOT)
Kansas City Board of Trade (KCBT)
Minneapolis Grain Exchange (MGEX)
Nadex (formerly HedgeStreet)
NASDAQ OMX Futures Exchange (formerly Philadelphia Board of Trade)
NASDAQ OMX PHLX (formerly Philadelphia Stock Exchange)
New York Mercantile Exchange (NYMEX) [Acquired, August 2008, now CME Group]
NYSE Liffe US
OneChicago (Single-stock futures (SSF's) and Futures on ETFs)
Mexico :
Mexican Derivatives Exchange (MexDer)
Caribbean:
Caribbean Exchange Network (CXN)
2) Europe
2.1 Pan-European
2.2 Austria
2.3 Belgium
2.4 Czech Republic
2.5 Germany
2.6 Greece
2.7 Hungary
2.8 Italy
2.9 The Netherlands
2.10 Poland
2.11 Portugal
2.12 Romania
2.13 Russia
2.14 Spain
2.15 Switzerland
2.16 Turkey
2.17 United Kingdom
Pan-European :
Eurex
Euronext.liffe
European Climate Exchange
OMX
Austria :
Österreichische Termin-und Optionenbörse (ÖTOB)
Belgium :
BELFOX (Belgian Futures & Options Exchange)
NYSE Euronext - Euronext Brussels Derivatives Exchange
Czech Republic:
PSE (Prague Stock Exchange)
Germany :
Risk Management Exchange (RMX), previously called Warenterminbörse Hannover (Commodity Exchange Hannover, WTB)
Greece:
ADEX (Athens Derivatives Exchange)
Hungary:
Budapest Stock Exchange (BSE)
Italy:
IDEM (Italian Derivatives Equity Market)
The Netherlands:
ENDEX (European Energy Derivatives Exchange)
APX Group
Poland :
WGT (Warsaw Commodity Exchange)
GPW (Warsaw Stock Exchange)
Portugal :
BDP (Porto Derivatives Exchange)
Romania :
Bursa de Valori Bucureşti (BVB) (Bucharest Stock Exchange)
Bursa Romana de Marfuri (BRM)
Sibiu Monetary Financial and Commodities Exchange (BMFMS)
Russia :
Moscow Interbank Currency Exchange (MICEX)
Futures & Options RTS (Russian Trading System) (FORTS)
Spain:
Mercado Español de Futuros Financieros (MEFF)
Switzerland:
SOFFEX (Swiss Options & Financial Futures Exchange)
Turkey:
Turkish Derivatives Exchange
United Kingdom:
ICE Futures Europe
London International Financial Futures and Options Exchange (LIFFE), precursor to Euronext.liffe
London Metal Exchange (LME)
NYMEX Europe
3) Asia
3.1 Bangladesh
3.2 Nepal
3.3 China
3.4 Hong Kong
3.5 India
3.6 Indonesia
3.7 Iran
3.8 Japan
3.9 Korea
3.10 Malaysia
3.11 Pakistan
3.12 Singapore
3.13 Taiwan
3.14 Thailand
3.15 United Arab Emirates
Bangladesh :
Bangladesh Commodity Exchange (BCE)
Nepal :
Mercantile Exchange Nepal Limited (MEX)
Nepal Derivative Exchange Limited (NDEX)
China :
Dalian Commodity Exchange (DCE)
Shanghai Futures Exchange (SHFE)
Zhengzhou Commodity Exchange (ZCE)
China Financial Futures Exchange (CFFEX)
Hong Kong :
Hong Kong Exchanges and Clearing (HKEx)
Hong Kong Futures Exchange (HKFE) [merged]
Hong Kong Stock Exchange (HKSE) [merged]
India :
National Stock Exchange of India (NSE)
Bombay Stock Exchange (BSE)
Multi Commodity Exchange of India (MCX)
National Multi Commodity Exchange of India (NMCE)
National Commodity and Derivatives Exchange (NCDEX)
Complete list of Futures Exchanges in India
Indonesia :
Jakarta Futures Exchange (JFX)
Iran :
International Oil Bourse
Japan :
Central Japan Commodity Exchange (C-COM)
Kansai Commodities Exchange (KEX)
Osaka Securities Exchange (OSE)
Tokyo Commodity Exchange (TOCOM)
Tokyo Stock Exchange (TSE)
Tokyo Grain Exchange (TGE)
Yokohama Commodity Exchange (Y-COM)(merged, 2006)
Tokyo Financial Exchange (TFX)
Korea:
Korea Exchange (KRX), formed from merger of
KSE: Korea Stock Exchange: Stock Market Division;
KOFEX: Korea Options & Futures Exchange: Derivatives Division;
KOSDAQ: Technology Stocks: Growth Stocks Market Division.
Malaysia:
Bursa Malaysia
Pakistan :
Karachi Stock Exchange (KSE)
National Commodity Exchange Limited (NCEL)
Singapore :
Singapore Commodity Exchange (SICOM)
Singapore Exchange (SGX)
Taiwan:
Taiwan Futures Exchange (TAIFEX)
Thailand:
Thailand Futures Exchange (TFEX)
Bond Electronic Exchange (BEX)
Agricultural Futures Exchange of Thailand (AFET)
United Arab Emirates:
NASDAQ Dubai
Dubai Gold & Commodities Exchange (DGCX)
Dubai Mercantile Exchange (DME)
4) South America
4.1 Argentina
4.2 Brazil
Argentina:
MATba Mercado a Termino de Buenos Aires
ROFEX (Rosario Futures Exchange)
Brazil :
Brazilian Mercantile and Futures Exchange (BM&F)
Maringá Mercantile and Futures Exchange
5) Oceania
5.1 Australia
5.2 New Zealand
Australia:
Australian Securities Exchange
New Zealand :
New Zealand Exchange
New Zealand Futures & Options Exchange
6) Africa
6.1 South Africa
South Africa:
South African Futures Exchange (SAFEX)
Lahore Stock Exchange
Lahore Stock Exchange (Guarantee) Limited is Pakistan's second largest stock exchange after the Karachi Stock Exchange. It is located in Lahore, Pakistan.
History
The Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of Lahore. The number of listed companies has increased to 519 since its inception. With 37 sectors of the economy and 519 listed companies with total capital of Rs. 555.67 billion having market capitalization of around Rs. 3.64 trillion . The LSE has 152 members of which 81 are corporate, and 54 are individual members. The LSE was the first stock exchange in Pakistan to use the internet and currently 50% of its transactions are via the internet.
The Lahore Stock Exchange has opened branches in the industrial cities of Faisalabad and Sialkot for trading. The Sialkot branch is referred to as the "Sialkot Trading Floor".
LSE Index
LSE-25: The Lahore Stock Exchange Twenty Five company index also calculates the performance of stocks assuming that all rights issues and bonus share issues only increase the listed capital. In the case of bonuses or rights the prices of the shares are not adjusted as they are in the case of the LSETRI. However, the LSE25 assumes that dividends paid out by a component company are not reinvested. In summary, in the LSE25, no price adjustments are made when any component company issues cash dividends.
The Lahore Stock Exchange Total Return Index calculates the performance of stocks assuming that all payouts are reinvested in the index on the ex-date. The LSETRI assumes that if a component company issues bonus shares or announces a rights issue it will increase the listed capital. Additionally, the LSETRI also assumes that all pay-outs by a component company are 100% reinvested in the index. Therefore, the LSETRI is adjusted against such payouts announced by any of index constituents on its ex-date allowing the index value to remain comparable over time.
History
The Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of Lahore. The number of listed companies has increased to 519 since its inception. With 37 sectors of the economy and 519 listed companies with total capital of Rs. 555.67 billion having market capitalization of around Rs. 3.64 trillion . The LSE has 152 members of which 81 are corporate, and 54 are individual members. The LSE was the first stock exchange in Pakistan to use the internet and currently 50% of its transactions are via the internet.
The Lahore Stock Exchange has opened branches in the industrial cities of Faisalabad and Sialkot for trading. The Sialkot branch is referred to as the "Sialkot Trading Floor".
LSE Index
LSE-25: The Lahore Stock Exchange Twenty Five company index also calculates the performance of stocks assuming that all rights issues and bonus share issues only increase the listed capital. In the case of bonuses or rights the prices of the shares are not adjusted as they are in the case of the LSETRI. However, the LSE25 assumes that dividends paid out by a component company are not reinvested. In summary, in the LSE25, no price adjustments are made when any component company issues cash dividends.
The Lahore Stock Exchange Total Return Index calculates the performance of stocks assuming that all payouts are reinvested in the index on the ex-date. The LSETRI assumes that if a component company issues bonus shares or announces a rights issue it will increase the listed capital. Additionally, the LSETRI also assumes that all pay-outs by a component company are 100% reinvested in the index. Therefore, the LSETRI is adjusted against such payouts announced by any of index constituents on its ex-date allowing the index value to remain comparable over time.
Karachi Stock Exchange
The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh, Pakistan. Founded in 1947, it is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings. Its current premises are situated on Stock Exchange Road, in the heart of Karachi's Business District.
History
Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan. It was declared the “Best Performing Stock Market of the World for the year 2002”. As of Sept25, 2009, 654 companies were listed with a market capitalization of Rs. 2.806 trillion (US$ 33.81 billion) having listed capital of Rs. 705.873 billion (US$ 10.615 billion). The KSE 100TM Index closed at 9359 on Sept 29, 2009.
Trading
The exchange has pre-market sessions from 09:15am to 09:30am and normal trading sessions from 09:30am to 03:30pm. It is the second oldest stock exchange in South Asia.[2] The karachi stock exchange has undergone a considerable deal of downturn partly due to global financial crisis and partly on account of domestic troubles. It remained suspended in excess of 4 months and resumed normal trading only on December 15, 2008. The KSE 100 Index and KSE 30 Index after hitting the low around mid january has now rebounced and recovered 20-25% till March 12 2009.
History
Karachi Stock Exchange is the biggest and most liquid exchange in Pakistan. It was declared the “Best Performing Stock Market of the World for the year 2002”. As of Sept25, 2009, 654 companies were listed with a market capitalization of Rs. 2.806 trillion (US$ 33.81 billion) having listed capital of Rs. 705.873 billion (US$ 10.615 billion). The KSE 100TM Index closed at 9359 on Sept 29, 2009.
Trading
The exchange has pre-market sessions from 09:15am to 09:30am and normal trading sessions from 09:30am to 03:30pm. It is the second oldest stock exchange in South Asia.[2] The karachi stock exchange has undergone a considerable deal of downturn partly due to global financial crisis and partly on account of domestic troubles. It remained suspended in excess of 4 months and resumed normal trading only on December 15, 2008. The KSE 100 Index and KSE 30 Index after hitting the low around mid january has now rebounced and recovered 20-25% till March 12 2009.
Islamabad Stock Exchange
Islamabad Stock Exchange is one of the three stock exchanges of Pakistan. Islamabad Stock Exchange is located in the capital of Pakistan. Islamabad Stock Exchange was incorporated on October 25, 1989 and it became fully operational on August 10, 1992. Islamabad Stock Exchange is centrally located in Anees Plaza, Fazal ul Haq Road, Islamabad. A new development project is underway to establish a new building for the stock exchange.
MEMBERS
At present there are 119 members out of which 93 are corporate bodies including commercial and investment banks, DFIs and brokerage houses. The other 26 Members are individual persons who are well educated, enterprising and progressive minded. The affairs of the Exchange are governed by the Board of Directors.
Board of Directors
The Board of Directors consists of ten directors. OUT OF TEN, five are elected member directors and four are non-member directors nominated by the SECP while the managing director by virtue of his office is the tenth director of the Board . In order to protect the interest of the investing public, an Investors Protection fund has been established by the Exchange.
ISECTS
Since the inception of automated trading system (ISECTS), the trade volume has been multiplying day by day and the average daily turnover has now crossed the figure of 1 million shares. Now all the listed securities are traded through the ISECTS. The system of physical handling of shares and securities has been phased out and majority of the scrips are settled through Central Depository Company of Pakistan Limited.
At the moment there are 241 companies/securities listed on the Exchange with an aggregate capital of Rs. 389.512 billion. The market capitalization stood at Rs. 2,275.00 billion as on 04-04-2007 . The pace of listing has remained slow as the economy of the Country is under consistent pressure due to internal as well as external factors.
The functioning of capital market in Pakistan is still very much in its infancy and lacks advanced technology in comparison with major financial markets around the World. In this context efforts are being made to edited by khalid shah ciit.
MEMBERS
At present there are 119 members out of which 93 are corporate bodies including commercial and investment banks, DFIs and brokerage houses. The other 26 Members are individual persons who are well educated, enterprising and progressive minded. The affairs of the Exchange are governed by the Board of Directors.
Board of Directors
The Board of Directors consists of ten directors. OUT OF TEN, five are elected member directors and four are non-member directors nominated by the SECP while the managing director by virtue of his office is the tenth director of the Board . In order to protect the interest of the investing public, an Investors Protection fund has been established by the Exchange.
ISECTS
Since the inception of automated trading system (ISECTS), the trade volume has been multiplying day by day and the average daily turnover has now crossed the figure of 1 million shares. Now all the listed securities are traded through the ISECTS. The system of physical handling of shares and securities has been phased out and majority of the scrips are settled through Central Depository Company of Pakistan Limited.
At the moment there are 241 companies/securities listed on the Exchange with an aggregate capital of Rs. 389.512 billion. The market capitalization stood at Rs. 2,275.00 billion as on 04-04-2007 . The pace of listing has remained slow as the economy of the Country is under consistent pressure due to internal as well as external factors.
The functioning of capital market in Pakistan is still very much in its infancy and lacks advanced technology in comparison with major financial markets around the World. In this context efforts are being made to edited by khalid shah ciit.
List of stock exchanges
Africa : Johannesburg Securities Exchange
Americas : NASDAQ
Americas : São Paulo Stock Exchange
Americas : Toronto Stock Exchange
Americas : New York Stock Exchange
Asia-Pacific : Australian Securities Exchange
Asia-Pacific : Bombay Stock Exchange
Asia-Pacific : Hong Kong Stock Exchange
Asia-Pacific : Korea Exchange
Asia-Pacific : National Stock Exchange of India
Asia-Pacific : Shanghai Stock Exchange
Asia-Pacific : Shenzhen Stock Exchange
Asia-Pacific : Tokyo Stock Exchange
Europe : Euronext
Europe : Frankfurt Stock Exchange (Deutsche Börse)
Europe : London Stock Exchange
Europe : Madrid Stock Exchange (Bolsas y Mercados Españoles)
Europe : Milan Stock Exchange (Borsa Italiana)
Europe : Nordic Stock Exchange Group OMX1
Europe : Swiss Exchange
Americas : NASDAQ
Americas : São Paulo Stock Exchange
Americas : Toronto Stock Exchange
Americas : New York Stock Exchange
Asia-Pacific : Australian Securities Exchange
Asia-Pacific : Bombay Stock Exchange
Asia-Pacific : Hong Kong Stock Exchange
Asia-Pacific : Korea Exchange
Asia-Pacific : National Stock Exchange of India
Asia-Pacific : Shanghai Stock Exchange
Asia-Pacific : Shenzhen Stock Exchange
Asia-Pacific : Tokyo Stock Exchange
Europe : Euronext
Europe : Frankfurt Stock Exchange (Deutsche Börse)
Europe : London Stock Exchange
Europe : Madrid Stock Exchange (Bolsas y Mercados Españoles)
Europe : Milan Stock Exchange (Borsa Italiana)
Europe : Nordic Stock Exchange Group OMX1
Europe : Swiss Exchange
Sunday, November 15, 2009
How to get the Best Exchange Rate?
Between commissions, credit card surcharges, ATM fees and other expenses, we almost always have to pay a little extra for the privilege of exchanging one currency for another. How can we minimize these expenses and get the best exchange rate when we are traveling in a foreign country? Lets discuss about it briefly.
We must know what is the current rate? Before we leave for our trip, check out the XE currency converter for an idea of what should be our exchange rate? If we are taking an extended trip, we must check the rate periodically to stay abreast of any major changes in market.
We almost always get the best interbank exchange rate when buying foreign currency with either ATM cards or credit cards, which will usually be 2 to 7 percent better than the rates we'll get when exchanging cash or traveler's checks. We must try to use credit cards whenever possible for large purchases such as hotel bills, tickets , car rentals and other such expeses. We must keep in mind that most credit card companies add fees for transactions made in foreign currencies. Local vendors such as restaurants and shops may also charge a fee for credit card transactions. We musr read more about using credit cards wisely in Money Matters on the Road.
If ATM's are easily accessible in the country we're visiting, we must use ATM card for day-to-day cash needs. But again, remember that our bank (and the local bank) may charge us an additional fee for each transaction -- making it generally a good idea to take out as much money at a time as you feel comfortable carrying, rather than making multiple stops at the ATM.
When exchanging traveler's checks, most of the time it is better to exchange our money in the country we're going to, not in the U.S. An exception to this might be if we are convinced the dollar is going to head sharply lower while we are gone and want to exchange at the current rate by purchasing traveler's checks in a foreign currency.
We usually get the best exchange rates at banks, post offices and American Express offices. Hotels are also worth a try. Avoid the change bureaus we see everywhere in airports, train stations and touristy areas. They usually have the worst rates, though occasionally we get lucky.
We must read the posted exchange rates carefully, and ask for the net rate after commissions. Some commissions are charged on a per-item basis on each transaction, others on a percentage basis. To lure customers, some money changers will post the sell rate for U.S. dollars rather than the buy rate.
We must know what is the current rate? Before we leave for our trip, check out the XE currency converter for an idea of what should be our exchange rate? If we are taking an extended trip, we must check the rate periodically to stay abreast of any major changes in market.
We almost always get the best interbank exchange rate when buying foreign currency with either ATM cards or credit cards, which will usually be 2 to 7 percent better than the rates we'll get when exchanging cash or traveler's checks. We must try to use credit cards whenever possible for large purchases such as hotel bills, tickets , car rentals and other such expeses. We must keep in mind that most credit card companies add fees for transactions made in foreign currencies. Local vendors such as restaurants and shops may also charge a fee for credit card transactions. We musr read more about using credit cards wisely in Money Matters on the Road.
If ATM's are easily accessible in the country we're visiting, we must use ATM card for day-to-day cash needs. But again, remember that our bank (and the local bank) may charge us an additional fee for each transaction -- making it generally a good idea to take out as much money at a time as you feel comfortable carrying, rather than making multiple stops at the ATM.
When exchanging traveler's checks, most of the time it is better to exchange our money in the country we're going to, not in the U.S. An exception to this might be if we are convinced the dollar is going to head sharply lower while we are gone and want to exchange at the current rate by purchasing traveler's checks in a foreign currency.
We usually get the best exchange rates at banks, post offices and American Express offices. Hotels are also worth a try. Avoid the change bureaus we see everywhere in airports, train stations and touristy areas. They usually have the worst rates, though occasionally we get lucky.
We must read the posted exchange rates carefully, and ask for the net rate after commissions. Some commissions are charged on a per-item basis on each transaction, others on a percentage basis. To lure customers, some money changers will post the sell rate for U.S. dollars rather than the buy rate.
Friday, November 13, 2009
Best Currency to Trade
By analyzing forex market tendencies it can be more precisely said that all traders should consider the Yen and Euro. If you had to pick just one, you should be in favor of the euro. Because its position in market is much strong than other currencies.
You should always consider the Swiss Franc and British Pound - if you are trading a basket of currencies, but you should also consider the Australian and Canadian dollar.
While traders often neglect the Australian and Canadian dollar, they offer an important advantage in terms of diversification.
Diversification enable currency traders to spread risk and this can increase overall capital gains and help reduce risk and volatility.
So the result of our discussion is, with regard to best currencies start with euro and yen and add other currencies in for diversification and reduction of risk.
You should always consider the Swiss Franc and British Pound - if you are trading a basket of currencies, but you should also consider the Australian and Canadian dollar.
While traders often neglect the Australian and Canadian dollar, they offer an important advantage in terms of diversification.
Diversification enable currency traders to spread risk and this can increase overall capital gains and help reduce risk and volatility.
So the result of our discussion is, with regard to best currencies start with euro and yen and add other currencies in for diversification and reduction of risk.
Best Currencies to Trade
I think the most important consideration in trading is the volume and liquidity of the currency traded in market.
By having good sense of currency trading, you will be able to exit positions quickly to lock in profits and just as importantly, cut losing trades quickly and keep losses to a minimum.
The most actively traded currencies against the dollar are:
. The Euro
· British Pound
· Swiss Franc
· Japanese Yen
All forex traders should consider these four currencies.
By having good sense of currency trading, you will be able to exit positions quickly to lock in profits and just as importantly, cut losing trades quickly and keep losses to a minimum.
The most actively traded currencies against the dollar are:
. The Euro
· British Pound
· Swiss Franc
· Japanese Yen
All forex traders should consider these four currencies.
trading currencies
In future conditions can be changed. so dont take this article crucial, it is just in accordance with present situation of forex market. Here is a brief personality of each currency and the advantages of trading it, based upon past performance:
British Pound
Thinner volume than the Euro or Japanese yen, means that short term trading should be done selectively, but this market is more suited to long term trend following. Thin volumes and low open interest can lead to exaggerated intraday moves and price spikes.
Euro
Any trader trading currencies should trade the euro. Good volume, high open interest and great long term trends, in addition good volatility is present for day traders and its recent status as a safe haven currency, means it is suitable for all traders.
Japanese Yen
The Yen offers fantastic long-term trends and offers some excellent volatility for day traders. Its slightly more erratic short-term price spikes than the euro, make it a currency that can produce more “false” signals than the euro, but generally, it is a great currency to trade. Like the euro volume and open interest is high.
Swiss Franc
In recent years the Swiss economy has become more integrated with Europe’s and the currency has a higher correlation to the euro, but it still represents a currency with great long term trends making it suitable for long term position traders. Like the British pound, volumes are not as high as the euro or yen and day trading conditions are not so good.
Australian Dollar
Quite thin volumes and large price spikes occur in Australian dollar, but it does offer good long-term trends and a diversification away from the major currencies.
Canadian Dollar
The Canadian Dollar is very similar to the Australian dollar. It offers good long-term trends and a diversification away from the major currencies; again, it is suitable for long-term trend followers and not day traders.
British Pound
Thinner volume than the Euro or Japanese yen, means that short term trading should be done selectively, but this market is more suited to long term trend following. Thin volumes and low open interest can lead to exaggerated intraday moves and price spikes.
Euro
Any trader trading currencies should trade the euro. Good volume, high open interest and great long term trends, in addition good volatility is present for day traders and its recent status as a safe haven currency, means it is suitable for all traders.
Japanese Yen
The Yen offers fantastic long-term trends and offers some excellent volatility for day traders. Its slightly more erratic short-term price spikes than the euro, make it a currency that can produce more “false” signals than the euro, but generally, it is a great currency to trade. Like the euro volume and open interest is high.
Swiss Franc
In recent years the Swiss economy has become more integrated with Europe’s and the currency has a higher correlation to the euro, but it still represents a currency with great long term trends making it suitable for long term position traders. Like the British pound, volumes are not as high as the euro or yen and day trading conditions are not so good.
Australian Dollar
Quite thin volumes and large price spikes occur in Australian dollar, but it does offer good long-term trends and a diversification away from the major currencies.
Canadian Dollar
The Canadian Dollar is very similar to the Australian dollar. It offers good long-term trends and a diversification away from the major currencies; again, it is suitable for long-term trend followers and not day traders.
choosing the right day trading firm
With the advent of the fast Internet oppertunities and much improved communication technology many investors are opting to trade from their homes. While you are trading from home there are a set of benefits if you choose to trade from the premises of a day trading firm and it makes sense at least initially to learn the tricks of the trade while working in a firm. You have access to the best available software platforms and the necessary hardware items. You must get to almost any data feed that you might be need. The most important and more crucial thing is that you get structured training programs and the opportunity to learn from other professional traders who can share their invaluable experience of trading with you.
There are too many firms offering you courses but to select best for you is the main quetion. Their training modules and fee structure differ from each other and you will have to pick the right course for you. The cheaper courses are not always the best. With a bit more investment you can get much more value for your money. So before you settle down on one particular firm spend some time and do a thorough research. Because spending money on a quality course can increase your money in trading.
there are some suggestions for you to select the best one for you.
• Before slecting you must take advice from professionals. But this is hardly the right alternatives to a personal experience. Clarify with the firms if they will allow you to spend a day or two at their firm for you to understand better the work ethics and the environment of the firm. If you find it suits you then you can shortlist the firm for your final list.
• Get to know how much of an account size would you need to be a member. It can range anything between $25000 to $50000.
• Find out whether there is any screening process in place for a person to become a member. If there is none and you are allowed to walk-in just because you have enough capital, then it is best to avoid such firms. Chances are you wont be getting the best of training there.
• Ask about the duration of the course. If the firm tries to sell you a crash course lasting a week, stay away. Day trading is not all that simple and don’t opt for courses which are do not run for at least a month. Be sure that they provide you with enough simulated training on trading so that at the end of your course you are ready to trade confidently in the real market.
• Obviously you got to find out what kind of an infrastructure the firm has in place and whether they will be providing you with the best software platforms and hardware tools available.
• Clarify if the firm is providing you with just a basic course on trading or they have course hours set aside for risk management strategies, and capital management basics. Such add-ons definitely help later in your career when you plan to trade all by yourself.
Find out if a firm demands a percentage of the profit you make while trading. If they ask for it then stay away from that firm. Better firms will allow you to keep your entire profit with you.
best of luck...
There are too many firms offering you courses but to select best for you is the main quetion. Their training modules and fee structure differ from each other and you will have to pick the right course for you. The cheaper courses are not always the best. With a bit more investment you can get much more value for your money. So before you settle down on one particular firm spend some time and do a thorough research. Because spending money on a quality course can increase your money in trading.
there are some suggestions for you to select the best one for you.
• Before slecting you must take advice from professionals. But this is hardly the right alternatives to a personal experience. Clarify with the firms if they will allow you to spend a day or two at their firm for you to understand better the work ethics and the environment of the firm. If you find it suits you then you can shortlist the firm for your final list.
• Get to know how much of an account size would you need to be a member. It can range anything between $25000 to $50000.
• Find out whether there is any screening process in place for a person to become a member. If there is none and you are allowed to walk-in just because you have enough capital, then it is best to avoid such firms. Chances are you wont be getting the best of training there.
• Ask about the duration of the course. If the firm tries to sell you a crash course lasting a week, stay away. Day trading is not all that simple and don’t opt for courses which are do not run for at least a month. Be sure that they provide you with enough simulated training on trading so that at the end of your course you are ready to trade confidently in the real market.
• Obviously you got to find out what kind of an infrastructure the firm has in place and whether they will be providing you with the best software platforms and hardware tools available.
• Clarify if the firm is providing you with just a basic course on trading or they have course hours set aside for risk management strategies, and capital management basics. Such add-ons definitely help later in your career when you plan to trade all by yourself.
Find out if a firm demands a percentage of the profit you make while trading. If they ask for it then stay away from that firm. Better firms will allow you to keep your entire profit with you.
best of luck...
Day trading
What the Day trading is? We are going to discuss with you what Day trading actually is? Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions are usually closed before the market close for the trading day.
The Traders that participate in day trading are called active traders or day traders.
Let us talk about the instruments of Day trading. Most commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.
Day trading used to be the preserve of financial firms and professional investors and speculators. Now question arise who are most common day traders? Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, with the advent of electronic trading and margin trading, day trading has become increasingly popular among casual, at home traders also.
The Traders that participate in day trading are called active traders or day traders.
Let us talk about the instruments of Day trading. Most commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures.
Day trading used to be the preserve of financial firms and professional investors and speculators. Now question arise who are most common day traders? Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, with the advent of electronic trading and margin trading, day trading has become increasingly popular among casual, at home traders also.
Using the Best FOREX Chart Indicator
For being successful you must have control over your investments using the best FOREX chart indicator. There are a lot of trading indicators that you can use, and not a single one will stand out above the rest. You need to use a combination of two or more trading indicators to be effective in a given circumstance and the mix of which will also vary, depending on the factors available in the current forex market.
Simple bar charts have long lost their popularity. But whether you believe it or not, they are still quite an effective tool, especially over the candlestick charts that present data like the daily open and close range that is already obvious.
how to make larger profits? this is the question which every investor have in his mind. With these four trading indicators that you can probably learn how to use in about thirty minutes each, you will be able to apply right away on your FOREX charts to plan out strategies.
1. The Stochastic is a very powerful trade indicator. It shows you the crossovers of bullish and bearish divergence of oversold and overbought levels. It also enables you to make those precise timings when the best time to trade is available for a particular currency.
2. Relative Strength Index shows you how high the trend can go by graphing when the RSI strengthens and weakens, so it acts as an advance warning for a move against you. Matched together in combination with the stochastic, these two make a powerful pair for establishing the proper timing in the market trend.
3. The Bollinger Bands show you the volatile price levels of a currency. Understanding how this properly works can help you achieve how to make decent earnings in the FOREX market.
You can use pops on the outer band, close to chart resistance and support, to check profit, or create an opposing trend. If there is a strong market trend, you will be able to see dips down the centre band of the moving average. These are areas of great value that you can add more possible watches to an upcoming trend.
These are the long term investments that you do not rush into.
4. Simple Moving Averages pertain to taking the average out of a certain period of days for analysis of long-term trends. A good basis for this sample would be between 18- to 25- day cycles.
Best selection of Forex charts can make a huge profit for you. Forex is the business where you earn huge profit while having good sense of market but if you are stranger in this field, then it can cause a big loss.
Simple bar charts have long lost their popularity. But whether you believe it or not, they are still quite an effective tool, especially over the candlestick charts that present data like the daily open and close range that is already obvious.
how to make larger profits? this is the question which every investor have in his mind. With these four trading indicators that you can probably learn how to use in about thirty minutes each, you will be able to apply right away on your FOREX charts to plan out strategies.
1. The Stochastic is a very powerful trade indicator. It shows you the crossovers of bullish and bearish divergence of oversold and overbought levels. It also enables you to make those precise timings when the best time to trade is available for a particular currency.
2. Relative Strength Index shows you how high the trend can go by graphing when the RSI strengthens and weakens, so it acts as an advance warning for a move against you. Matched together in combination with the stochastic, these two make a powerful pair for establishing the proper timing in the market trend.
3. The Bollinger Bands show you the volatile price levels of a currency. Understanding how this properly works can help you achieve how to make decent earnings in the FOREX market.
You can use pops on the outer band, close to chart resistance and support, to check profit, or create an opposing trend. If there is a strong market trend, you will be able to see dips down the centre band of the moving average. These are areas of great value that you can add more possible watches to an upcoming trend.
These are the long term investments that you do not rush into.
4. Simple Moving Averages pertain to taking the average out of a certain period of days for analysis of long-term trends. A good basis for this sample would be between 18- to 25- day cycles.
Best selection of Forex charts can make a huge profit for you. Forex is the business where you earn huge profit while having good sense of market but if you are stranger in this field, then it can cause a big loss.
What are the Best Times to Trade Forex?
Forex trading market is open almost 24 hours which gives it the flexibility unlike other investments. However, what are the best times to trade? It actually depends on which currencies that you want to trade in.
Firstly, the market is open between 0800 GMT and ends at 2200 GMT. During this period, the trade goes on around the world or as we know it, the office hours of every country. The time when most profits and losses are made is between 1300 GMT to 1600 GMT. So, if you want more selections this period will be the best to make your trade. Still, there are a few sessions that you can choose from.
What are the Best Times to Trade Forex Online?
Asian Session - Asian session is generally a slow moving one. However, with the current economy recession, it is best to do your own research and find out the pairs that can gain the most profit for you.
US Session - US session is often the most active and starts around 1300 GMT. Some currencies that are active are USD and EUR. However, watch out for yourself after the severe economic downturn in US.
London Session - London session starts around 0800 GMT and ends at 1600GMT. Some noted currencies would be the same as US.
On the last note, the best time to trade is between 1300GMT to 1600GMT. Around this time, most currency traders will make their trade and you will be able to choose from a variety of currencies. Even most of the vital news comes out during this period and you should not miss out on all the happenings in the forex market.
Firstly, the market is open between 0800 GMT and ends at 2200 GMT. During this period, the trade goes on around the world or as we know it, the office hours of every country. The time when most profits and losses are made is between 1300 GMT to 1600 GMT. So, if you want more selections this period will be the best to make your trade. Still, there are a few sessions that you can choose from.
What are the Best Times to Trade Forex Online?
Asian Session - Asian session is generally a slow moving one. However, with the current economy recession, it is best to do your own research and find out the pairs that can gain the most profit for you.
US Session - US session is often the most active and starts around 1300 GMT. Some currencies that are active are USD and EUR. However, watch out for yourself after the severe economic downturn in US.
London Session - London session starts around 0800 GMT and ends at 1600GMT. Some noted currencies would be the same as US.
On the last note, the best time to trade is between 1300GMT to 1600GMT. Around this time, most currency traders will make their trade and you will be able to choose from a variety of currencies. Even most of the vital news comes out during this period and you should not miss out on all the happenings in the forex market.
How To Choose a Forex Broker?
Finding the BEST FOREX BROKER is quite difficult. The basic knowledge you need to have is few basic qualities of a good and effectively working forex broker. The basic qualities are enumerated to help you to invest and do well through a FOREX BROKER.
Whether forex broker is regulated or not? and their compliance which shows their integrity and discipline.
Reliable and round the clock customer support help desk.
The list of currencies the broker trade on. Currencies like the Australian, Canadian and US dollars, the Euro, British Pound, Japanese Yen, Rupees, etc. Also how they work in accordance with the operating hours of the Global Forex market.
There are lots of online brokers that offer comprehensive research; various demo programs, innovative and user friendly trading platforms with one click execution, and some forex brokers allow to start trading with as low amount as $25.
The Best Forex Brokers are characterized by their deep awareness of the techniques of money management. Trading signals understanding, possibility to analyze any market conditions rapid changes, and various market factors comprehension, such as interest rates are the criterion of this characteristic. Traders provided with such information carry out their trades consistently using these time-tested methods. Best Forex Brokers maintain very high standards of service, allowing traders to focus on trading opportunities in the forex market, while helping them control their margin and liquidity risk along with timely and effective customer support. There is no broker that is 100% perfect including the top rated Best Forex Brokers worldwide. Before you start dealing with any online Forex Broker it is strongly recommended to find out everything about the Forex Broker and try a demo.
Check out the top rated Forex Brokers at http://forextradingoverview.com/best-forex-brokers/
Whether forex broker is regulated or not? and their compliance which shows their integrity and discipline.
Reliable and round the clock customer support help desk.
The list of currencies the broker trade on. Currencies like the Australian, Canadian and US dollars, the Euro, British Pound, Japanese Yen, Rupees, etc. Also how they work in accordance with the operating hours of the Global Forex market.
There are lots of online brokers that offer comprehensive research; various demo programs, innovative and user friendly trading platforms with one click execution, and some forex brokers allow to start trading with as low amount as $25.
The Best Forex Brokers are characterized by their deep awareness of the techniques of money management. Trading signals understanding, possibility to analyze any market conditions rapid changes, and various market factors comprehension, such as interest rates are the criterion of this characteristic. Traders provided with such information carry out their trades consistently using these time-tested methods. Best Forex Brokers maintain very high standards of service, allowing traders to focus on trading opportunities in the forex market, while helping them control their margin and liquidity risk along with timely and effective customer support. There is no broker that is 100% perfect including the top rated Best Forex Brokers worldwide. Before you start dealing with any online Forex Broker it is strongly recommended to find out everything about the Forex Broker and try a demo.
Check out the top rated Forex Brokers at http://forextradingoverview.com/best-forex-brokers/
FOREX Market
The foreign exchange market (forex market) trades currencies. It lets banks and other institutions easily buy and sell currencies. [1]
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
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.
The foreign exchange market is unique because of
its trading volumes,
the extreme liquidity of the market,
its geographical dispersion,
its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
the variety of factors that affect exchange rates.
the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
the use of leverage
As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks.[citation needed] According to the Bank for International Settlements,[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this. This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:
$1.005 trillion in spot transactions
$362 billion in outright forwards
$1.714 trillion in foreign exchange swaps
$129 billion estimated gaps in reporting
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
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.
The foreign exchange market is unique because of
its trading volumes,
the extreme liquidity of the market,
its geographical dispersion,
its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
the variety of factors that affect exchange rates.
the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
the use of leverage
As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks.[citation needed] According to the Bank for International Settlements,[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this. This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:
$1.005 trillion in spot transactions
$362 billion in outright forwards
$1.714 trillion in foreign exchange swaps
$129 billion estimated gaps in reporting
Article on Forex Trading
Forex Trading stands for FOREIGN EXCHANGE TRADING.
FOReign EXchange market (forex market)becomes one of the most attractive instruments for investment.
Forex boundless opportunities, such as absolute liquidity, round-the-clock operation, global scale, up-to-date technologies have created a unique profession -Foreign Exchange Trader.
However, the art of making money using Forex trading, despite its simplicity, is not an easy matter.
Forex is the exchange you can buy and sell currencies. For example, you might buy British pounds (by exchanging them to the dollars you had), then, after pounds / dollar ratio goes up, you sell pounds and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.
The Forex market has much higher liquidity, then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planet and as a result it means 24 hour trading.
Unlike stocks, Forex trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-Forex, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.
The name convention. In Forex, the name of a "symbol" is composed of two parts — one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).
As with stocks, you can apply tools of the technical analysis to Forex charts. Trader's indexes can be optimized for Forex "symbols", allowing you to find winning strategy.
Example Forex transaction
Assume you have a trading account of $25,000 and you are trading with a 1% margin requirement. The current quote for EUR/USD is 1.3225/28 and you place a market order to buy 1 lot of 100,000 Euros at 1.3228, expecting the euro to rise against the dollar. At the same time you place a stop-loss order at 1.3178 representing a maximum loss of 2% of your account equity if the trade goes against you, 50 pips below your order price, and a limit order at 1.3378, 150 pips above your order price. For this trade, you are risking 50 pips to gain 150 pips, giving you a risk/reward ratio of 1 part risk to 3 parts reward. This means that you only need to be right one third of the time to remain profitable.
The notional value of this trade is $132,280 (100,000 * 1.3228). Your required margin deposit is 1% of the total, which is equal to $1322.80 ($132,280 * 0.01).
the Euro strengthens against the dollar and your limit order is reached at 1.3378. The position is closed. Your total profit for this trade is $1500, each pip being worth $10.
FOReign EXchange market (forex market)becomes one of the most attractive instruments for investment.
Forex boundless opportunities, such as absolute liquidity, round-the-clock operation, global scale, up-to-date technologies have created a unique profession -Foreign Exchange Trader.
However, the art of making money using Forex trading, despite its simplicity, is not an easy matter.
Forex is the exchange you can buy and sell currencies. For example, you might buy British pounds (by exchanging them to the dollars you had), then, after pounds / dollar ratio goes up, you sell pounds and buy dollars again. At the end of this operation you are going to have more dollars, then you had at the beginning.
The Forex market has much higher liquidity, then the stock market, as much more money is being exchanged. Forex is spread between banks all over the planet and as a result it means 24 hour trading.
Unlike stocks, Forex trades are performed with high leverage, usually it is 100. It means that by investing $1000 you can control $100,000, and increase potential profits accordingly. Some brokers provide also so called mini-Forex, where the size of minimum deposit equals $100. It makes possible for individuals to enter this market easily.
The name convention. In Forex, the name of a "symbol" is composed of two parts — one for first currency, and another for the second currency. For example, the symbol usdjpy stands for US dollars (usd) to Japanese yen (jpy).
As with stocks, you can apply tools of the technical analysis to Forex charts. Trader's indexes can be optimized for Forex "symbols", allowing you to find winning strategy.
Example Forex transaction
Assume you have a trading account of $25,000 and you are trading with a 1% margin requirement. The current quote for EUR/USD is 1.3225/28 and you place a market order to buy 1 lot of 100,000 Euros at 1.3228, expecting the euro to rise against the dollar. At the same time you place a stop-loss order at 1.3178 representing a maximum loss of 2% of your account equity if the trade goes against you, 50 pips below your order price, and a limit order at 1.3378, 150 pips above your order price. For this trade, you are risking 50 pips to gain 150 pips, giving you a risk/reward ratio of 1 part risk to 3 parts reward. This means that you only need to be right one third of the time to remain profitable.
The notional value of this trade is $132,280 (100,000 * 1.3228). Your required margin deposit is 1% of the total, which is equal to $1322.80 ($132,280 * 0.01).
the Euro strengthens against the dollar and your limit order is reached at 1.3378. The position is closed. Your total profit for this trade is $1500, each pip being worth $10.
What Is FOREX And How Does It Work?
FOREX stands for Foreign Exchange. The Foreign Exchange market is the biggest and largest financial market in the world. FOREX has a daily average turnover of US$1.9 trillion.
FOREX can be defined as Forex is the simultaneous buying of one currency and selling of another. In FOREX, Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So basically, Forex is trading.
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.
The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the FOREX market.
On one side of each speculative stock trade is a participant who believes he has superior information and on the other side is another participant who believes his information is superior.
For speculators, the best FOREX trading opportunities are with the most commonly traded (and therefore most liquid- meaning its in cash or convertible to cash) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors.
A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur — real time- day or night.
The Forex market is considered an Over The Counter (OTC) or 'interbank' market. This is because the transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange compared to stocks and futures markets.
Understanding FOREX quotes :
Reading a Forex quote may seem a bit confusing at first. However, it's really quite simple if you remember two things:
1) The first currency listed first is the base currency and
2) the value of the base currency is always 1.
The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.
When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.
In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.
In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.
Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.
When trading Forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).
FOREX can be defined as Forex is the simultaneous buying of one currency and selling of another. In FOREX, Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So basically, Forex is trading.
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.
The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the FOREX market.
On one side of each speculative stock trade is a participant who believes he has superior information and on the other side is another participant who believes his information is superior.
For speculators, the best FOREX trading opportunities are with the most commonly traded (and therefore most liquid- meaning its in cash or convertible to cash) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors.
A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur — real time- day or night.
The Forex market is considered an Over The Counter (OTC) or 'interbank' market. This is because the transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange compared to stocks and futures markets.
Understanding FOREX quotes :
Reading a Forex quote may seem a bit confusing at first. However, it's really quite simple if you remember two things:
1) The first currency listed first is the base currency and
2) the value of the base currency is always 1.
The US dollar is the centerpiece of the Forex market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.
When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.
The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.
In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.
In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.
Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.
When trading Forex you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).
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