Financial Spread Betting Software

Why Some Traders Go For Managed Forex Trading

noreply@blogger.com (Unknown) — Thu, 05 Nov 2009 09:31:00 +0000

By Bart Icles

Among the most popular money-making ventures nowadays is investing in the forex market through a forex trading account. With an average daily turnout of trillions of dollars all over the world, the foreign exchange market is attracting financial investors from all walks of life like honey to bees. As a general overview, the foreign exchange market deals with different currencies. It is a venue wherein one party purchase a certain currency in exchange for another. It has gained rapid popularity and has exponentially grown since the 1970s.

Before, typical forex players are large banks, government institutions, big corporations, and other financial institutions. Today, though, because of the rising amount of users of technology, especially because the internet is now considered a commodity, ordinary individuals can already do trading. However, sometimes, people just do not have enough time to deal with and to focus on their forex trading activities, and when this happens, even though the trader is bent on achieving success through his or her forex trading account, it just wouldn't be possible. Is it possible, then, to engage in forex trading even if you are busy?

Yes, it is entirely possible. All you need to do is to make sure that you opt for a managed forex account. What is it, though?

A managed forex account is a forex account that is managed by somebody other than the actual owner of the account. This is very ideal for traders who cannot really focus on all of his or her forex trading activities and instead of just letting their forex accounts lay idle, they, instead, hire people or companies to do their trading activities for them. If you are considering having a managed forex account, you should make sure that you have a hundred percent confidence on whoever you will be hiring. Otherwise, it is going to be pretty useless for you to do so since you might end up either worrying too much or losing a lot or worse, both.

For a lot of people, managed forex accounts are easier means in order to be able to succeed in forex trading. People who do not really have the time to learn the ropes in forex trading but wishes to take advantage of its incomparable liquidity prefer having them. It can really be advantageous to some, but others would prefer learning the ropes on their own than having somebody do everything for them. As mentioned earlier, trust is a very important factor in having managed forex accounts. So, to be able to have the feeling of security that you wish to have when dealing with managed forex, you should learn everything about it first. Chances are, you would be more successful.

About the Author:

Managed forex starts with a desire to learn and a drive to become a great trader. Learning mini forex trading takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Know These Stop Loss Rules

noreply@blogger.com (Unknown) — Wed, 04 Nov 2009 09:17:00 +0000

By Ahmad Hassam

You need to lean how to position your stop loss in relation to the market activity. Placing arbitrary stops is not a good idea. Many traders incorrectly choose a stop so their loss is the same amount each time they are stopped out. Dont pick an arbitrary place to put your stop loss.

You need to place the stops in accordance with the market conditions. If you use an arbitrary place for your stops, you are completely disregarding the meaningful market support and resistance levels where the stops should be placed.

Where to place your initial stop loss? Try to set your initial stop 3% below the support level. The important thing in this method is to correctly identify the support area. Test this method and see if it works for you.

Identifying correct support and resistance is very important for a trader. For example, you have a trading system that can determine an entry point. However, your trading system does not provide an exit based on the market dynamics. First you need to identify the support area. Set your stop loss 3% below the support area.

For example, suppose that the support level in a bullish trend is $30. You should set the stop loss at 3% below the support level in a bullish trend if you have an area of support at $30. The formula that you will use is $30 (support price)*0.97 (3 percent less) = $29.1 (Initial Stop Loss Level).

Do not use arbitrary stops based on flat dollar amounts that you are willing to lose. For example to say that you are willing to lose $200 in a trade is to disregard the current market conditions.

If you do not use stops at all, you are inviting failure. Another approach can be to set your stop loss one tick below the support in a bullish trend or one tick above the support in a bearish trend.

For example in trading stocks, if you do not use stops and hang on to a losing trade to the point that you emotionally feel that the loss is so large that you cannot exit the trade, you are in trouble.

Some professional traders use mental stops only. In the currency market it is better not to put the stop actually in the market when you have the position on. Your broker will see your stop and if there are enough similar stops, the broker may try and hit your stop. This way the broker makes money and you do not.

You need to become a disciplined trader. Using a mental stop will need psychological toughness and discipline to get out when you are supposed to get out. You can set a mental stop and get out quickly if you are hit in such a market like the currency market.

Never move your stop for emotional reasons especially when it is your initial stop. As new trailing stops are determined, you can move your stops to lock in profits. In case you add on to your winning trade by increasing your trade size, you must adjust your stops to keep your risk in relation to your trade size.

Learn how to place the stop loss correctly. As the trade progresses learn how to move the stops. Always move the stop closer to the current position to lower the risk in relation to your larger trade size when adjusting your stop due to an increase in trade size.

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. Try This 1500 Pips A Day Forex Signal Service from heaven! Learn These Candlestick Patterns! You can get a unique content version of this article from the Uber Article Directory.

Educate Yourself About Forex Pips

noreply@blogger.com (Unknown) — Tue, 03 Nov 2009 10:20:00 +0000

By Bart Icles

Forex traders, even though they are not the one actually managing their forex accounts, should have ample knowledge about the workarounds in the forex market and trading in it. Those who are planning to engage in forex trading should make sure that they go through the phase of educating themselves about the different twists and turns in the forex trading world, otherwise, it would be like Alice in Wonderland but in the real world this time.

A big chunk of forex trading basics are dedicated to learning the different forex terms or jargons that are embedded in all the trading activities that a forex trader will be engaging in, whether he or she has been doing trading for a long time now or is just a beginner in the field. Learning what the different terms are for and understanding them at the same time would be a great help in making sure that a forex trader is on the right track.

The most common term used in forex trading is the term "forex pip." Even if you aren't trading yet, by now, you might have heard of this term at one point or another. What is a forex pip? How come it's important in all your forex trading activities?

PIP is actually an acronym, which stands for "Percentage In Point." As a general rule in forex trading, all the profits and all the losses that a forex trader will be incurring in all his or her forex trading activities are measured using forex pips. Because of this simple fact, it is very much a necessity for any forex trader to know what a forex pip is and what its significance is in the forex market.

Generally speaking, a forex pip is the smallest price increment that a currency being traded can make. It allows traders to check the rise and fall in forex currency values in terms of percentage. It is an alternative measure of dollars and cents in trading. It is necessary to measure forex spreads in terms of forex pips because there isn't a universal value that can indicate forex values. So, depending on the currency in question, the value of the forex pip would vary when profits and losses are computed. It is like a universal measure of profits and losses in forex trading.

All major forex currencies except the Japanese Yen are quoted to 4 decimal points. The Japanese Yen is an exception since its value is much lower than the other currencies. To make it more clearer, if you are trading EUR/USD, 1 forex pip is equivalent to 0.0001. If you are trading USD/JPY, then one forex pip is equivalent to 0.01.

Learning about forex pips would, eventually, help you understand all your forex trading activities better. Start with the basics and you will go a long way.

About the Author:

Forex investing starts with a desire to learn and a drive to become a great trader. Learning forex software takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Make Trading Easy With A Forex Trading Course

noreply@blogger.com (Unknown) — Mon, 02 Nov 2009 10:50:00 +0000

By Bart Icles

The Forex trading market is undeniably one of the biggest and most promising investment market in existence today, with its potential to generate very large amount of profits in a very realistic and achievable manner, and in the shortest time possible to the player who plays his cards right. Everyone engaged in it - even the most experienced and well-trained traders have incurred losses at some point in their trading, especially when they fail to follow up on the set guidelines and principles essential to Forex success. So, before anyone commits one's self and one's money to the market, one must first learn how to play the game correctly in order not to get wiped out on the first day of trading by way of a Forex Trading Course.

A Forex Trading Course simply works by instilling within the student/trader all the needed information regarding currency trading, what rules and methods apply for certain trade transactions, and to know the many different strategies to use to help reach favorable trade decisions that ultimately will lead to certain profits. Doing the needed research to help any new trader enter the market easily is fairly easy to do and within anyone's reach as information and many technical data on the investment market has already been done for many years now.

With a good Forex trading course as your guide, one can progress through the entire process of learning easily and confidently as your growth and development expands and improves with each passing day. It will greatly sharpen your mind and trading skills to the point of making your capabilities as a trader more rounded. You will also be introduced to some of the markets trading software programs that will be essential to your trading activities, and to let you operate the market with ease and confidence.

There are many types of Forex trading softwares online, with some of them being offered for free by some providers, that let you test and practice your new-found skills. Others may offer home training programs that help ease your transition into the real world of Forex trading as simply and easily as can be.

It is vital for those new to Forex trading to get a good education regarding the market and the principles of Forex currency trading, and to know to it by heart, if they want to succeed in it. Once the book learning phase has been duly accomplished, the trader can and should by now know and able to do basic trade analysis of currency fluctuations, make a fair conclusion based on the learned and act on it accordingly. A Forex Trading Course will also provide the trader the know-how on how to manage one's funds effectively, risk management and many other skill-enhancing plans and strategies to apply in the road to becoming a good, if not, an excellent trader.

About the Author:

We love forex trading and we love to teach how to use the platform properly and money management skills in addition to our forex strategy to help you succeed. Come learn more about our free forex trading course.

Best Forex Trading Hands Down

noreply@blogger.com (Unknown) — Sun, 01 Nov 2009 12:02:00 +0000

By Scott McDonald

Seeking out the best forex trading methods can be difficult with so many places to start and so many strategies to use. Looking at different strategies available it is a good idea to test them out one after another until you find the best one that suits you. Searching for a method that works can be a long time consuming process that drags on. Wouldn't it be great to skip all the guess work and just get straight to the method that actually works? This one method I have discovered has done nothing but pump out profits!

Determining the best forex trading takes an assessment of many variables. It could take a week or two to determine the results, but it is well worth it once you find your gravy method. The best would depend on factors such as: How much time do you have to put into this method? The cost for this one method that I discovered was nothing considering in the first week I doubled my returns!

See what the best forex trading method is, discover what the big traders don't want you to know about. By adding this one method to your trading it can easily make your profits jump to a higher level. If you are sick of searching through methods that just don't work, you need to discover this one method I use that has turned my forex into a success!

Another best forex trading question; how difficult is it to repeat this method? It must be repeatable to make a success out of it. Sure there are traders that make profits on quick tactics, but that can not guarantee a long term income. Can you make consistent profitable trades with this method? Your total of winning trades versus your total of losing trades in a rolling average would determine if there is profit. The method I use has been repeatable since the day it started!

Looking for the best forex trading method? You surely must be lost, but there is hope yet. Scalping trading is one sure way to making money and making it fast. In as little as a few weeks a trader can be making profits. This is a great method for all, but there has to be something to take it to another level. Ah yes, this method that I have learned from the guru's, that they don't want you to know about has made massive returns!

About the Author:

Are you serious about getting out of the ditch and making dough like the "Big Wigs"? Own with the Best Forex Trading method out today. Stop letting the "Big Wigs" spoon feed you bull, find out their Best Forex Trading secrets today!

Maximize Your Profits Using Currency Options Trading!

noreply@blogger.com (Unknown) — Sun, 01 Nov 2009 11:13:00 +0000

By John Varlalin

The rapid expansion of the trading volume in the currency market has led to a rapid expansion in currency options trading market as well. It functions in many ways like the equity options market with a few differences. If the option trader believes a currency price will move higher, he/she will buy calls on the currency. This gives them the right to buy the currency at a set price for a specific amount of time. If prices are trending lower, he/she will buy puts on the currency. This gives them the right to sell the currency at a set price before the option expires.

One type of currency option is the traditional option contract. Since currencies trade in pairs so do currency options. With the traditional option the trader selects the strike price as well as tje expiration date of the option contract. These factors are used by the broker in arriving at the premium they will charge for the trade. If the trader feels the premium is fair the option/options are purchased. An example of an option contract is when the trader feels that the dollar will move higher against the Swiss franc. They will purchase calls on the USD/CHF. If the dollar does move up against the franc, the trader in with a traditional option will exercise the option by buying the dollar at the strike price and turning around and selling it at the current market price to realize the profit.

One of the easiest contracts to trade is the SPOT contract. The reason it is easier is because it does not have to be exercised to realize a profit. The trader picks the strike price and the expiration date just like they would with the traditional contract. The broker sets the premium. The premiums are typically higher on SPOT contracts than they are on traditional ones. You purchase calls on the base currency if you feel prices will rise. If this does in fact happen, the profit is automatically deposited into your account. If it does not happen your losses are limited to the amount of the premium.

Premiums on currency options, as mentioned before are set by the broker. The closer the strike price is to the current market price the higher the premium will be. The premium will be higher also the longer the time until expiration. If the currency is experiencing wide swings in price this is likely to raise premium levels as well.

The most popular reason for getting involved with the currency options trading market is speculation. Traders are purely trading for profits. The exposure to risk is limited to the amount of the premium that the trader pays to own the option. This factor makes it much more appealing.

Hedging is another reason for using currency options trading. The person buying options may own the currency because of business dealings they have with that country. They are interested in protecting themselves from price swings between the currency and their own country's currency. Options can help to do this.

Traders can sell options as well. They receive the premium. If the option expires rather than being exercised the person makes a small amount of money. Due to the higher risk exposure, the broke will require a much higher capital deposit on these types pf transactions.

Becoming active in the currency options trading market is growing in popularity. Risks are limited to the amount of the premium paid, but if trades work, the profits can be very large.

About the Author:

To REALLY make a big splash in currency options trading you MUST get a good currency trading education!

Learning Forex Like It's Nothing

noreply@blogger.com (Unknown) — Sat, 31 Oct 2009 08:07:00 +0000

By Scott McDonald

I was learning forex for months, day after day trying to figure it out. I soon realized that this can be a longer process than I imagined. If you are anything like me than you don't want to wait forever to get results, you want them instantly. I went on a testing spree to see what methods would work. After testing out many I discovered this one that the big traders have been using for years. This one produced insane results compared to the rest.

When learning forex, most people give up before they have ever made any progress. A key aspect to succeeding in this is to be persistent and not to give up. Thinking that success comes over night is a little far off and should be thought of in the long term. People that make it big, work hard for it, the question is do you want make it big? After adapting this one method to my trading the results should speak for them self. Doubling my trading account every month is regular.

When learning forex, most people give up before they have ever made any progress. A key aspect to succeeding in this is to be persistent and not to give up. Thinking that success comes over night is a little far off and should be thought of in the long term. People that make it big, work hard for it, the question is do you want make it big? After adapting this one method to my trading the results should speak for them self. Doubling my trading account every month is regular.

Learning forex from the start can be hard at first, especially with no prior knowledge. Getting your self familiar with forex lingo and terms is a good place to start, but one is going to need something to push them further than the rest. Having an edge over other traders is what this industry is all about. If you have a few tactics that work for you and put you ahead of the rest, you are laughing. Once I incorporated this one tactic into my trading, it was a matter of time before I was the leader of my trading group of friends.

After learning forex basics it was time to go into more advanced forex principles. Seeking out more of an advanced method is what a successful person needs. Learning the scalping method became a favorite and I decided to stick to it. Shortly after I added this one dominating method to it that the big traders use and did it ever turn results!

About the Author:

If your trades aren't raking the dough you need, you need to check out how the "Big Wigs" make Learning Forex look easy. If your tired of the searching and you want to make real profits for your self, stop letting the "Big Wigs" feed you BS, take action and find out their untold secrets to Learning Forex today!

Better To Be A Buyer Or Seller Of Options

noreply@blogger.com (Unknown) — Mon, 19 Oct 2009 09:09:00 +0000

By Maclin Vestor

To buy options, or sell them?

If you are a seller of options, you have a fixed amount of income that you can collect. You will always receive this portion of the option. Now, there is another part of the option that you may or may not receive. You always receive the theta or time value. Now the rest of the option is based on what the stock does. If a $50 strike priced option expires at $49.99, you collect that entire premium. Now if you were to sell a $40 strike priced option for a $50 stock, you might receive $10.50 per share. This .50 per share is what you will always get. You will also technically get the $10 per share, but you will have your shares "called" in, and that means that you have to sell them at $40, but you keep the $10.50 so if it expired at the same price, you would only gain the $.50. Now say you instead sold a $50 strike price. Now the value might be $1.00. The theta value is now $1, which is much greater. However, in the last example, if the stock dropped from $50, to $40, you would still end up with a slight gain. In this example, if the stock fell to $40, you would incur a $9 a share loss.

Now lets say you buy a stock with $50 a share, and sell an option at $60 a share. Now this option might cost you $0.50. Again the time value is 0.50. The difference is, now you have room for your stock to go up and less of your upside is capped. However, Now if your stock goes to $40, that's a $9.59 loss. These aren't real numbers based on a real stock and real options, but they illustrate the point. The point is that whether you buy or sell a stock option depends on your outlook, and what strike price you are looking at.

Buying and selling options have advantages.

As the buyer of a call option, you are saying, I believe this stock will go up. You would buy an at the money option because you want the full leverage per 100 shares and you want to get as close to a gain as 100 shares as you can. You would buy a deep in the money option because you want to pay less for theta, allow you to lose a smaller amount percentage wise, keep actual money tied up so you aren't tempted to put more leverage on or if you do you have better money management. You need less of a move to make money with a deep in the money option, and it's practically buying the stock for a discount if you buy deep enough in the money.

As the buyer of an out of the money option, you first must have enough money on the side, but you believe that if you can get a stock to move big, that you should bet big, you allow yourself to buy more shares and diversify while still keeping a lot of capital on the side (which you will have to do). If you can manage your larger swings, these have limited time value, and very high upside. Now a covered call is when you own the actual stock so things will be different.

A covered call you would sell a deep in the money call if you want to collect the theta, but want to insure against greater losses and are willing to accept less for this protection. You would sell an at the money option because you want to collect the maximum theta, don't believe the stock will decline much in value, but you don't believe the upside will be that great. You would sell out of the money options if you bet on the stock being slightly bullish. This is just a start which tells you what to consider when determining what strike price to buy an option at, it does not tell you what to consider when determining whether you want a long term, or short term option, but thats another story.

About the Author:

Maclin Vestor teaches aboutinternet stock trading and how to buy stock.

Margin Is Key To The Popularity Of Foreign Exchange Trading

noreply@blogger.com (Unknown) — Sun, 18 Oct 2009 14:46:00 +0000

By John Eather

Margin is one of the key features that makes foreign exchange trading so exciting a prospect. Without a factor like margin, trading in this area would be completely out of reach for the ordinary man in the street who wants to invest in this area. However, what exactly does "Margin" mean?

Margin is a factor which allows foreign exchange traders to control large sums of currency while making relatively small deposits. This works by establishing a "margin Account". This has to be conducted through a forex broker and it will enable the new trader to control what they call currency lots. A currency lot is generally worth in the region of $100 000.

Your borrowing power in the margin account allows you leverage which is expressed in the form of a ratio. For example a leverage ratio of 100:1 allows the trader to control foreign exchange assets of 100 times the amount of their deposit. This means that with a 1% margin, a standard lot of $100 000 may be controlled with a deposit of $1 000.

Trading on a margin means that the broker is able to have access to very large profits. But as in all methods of investment there is risk too, so by the same token losses can be made. But reward does after all favor the brave. There are safeguards available that can limit the risk of losses and a broker will terminate a transaction which goes above the deposit margin. However it is still possible to lose more than the original deposit amount even if a small change in foreign exchange is experienced. By the same token, so can large profits be made.

Forex is actually traded in smaller units than cash is. For example the US dollar trades down to four decimal points. For instance instead of $1.42, it will ready as $1.4238. The smallest unit is known as a "pip". When trading US dollars in a value of a $100 000 lot, your pip is valued at $10. If the price of the dollar were to change from $1.4238 to 1.5238, it is a 100 pip difference and while this loss or profit of $10 may be meaningful to a tourist, it means very little to an investor. This example indicates how margin is able to increase potential profit or loss.

About the Author:

Learn more about foreign exchange trading. Stop by John Eather's site where you can find out all about forex trading systems and what it can do for you. Visit the Uber Article Directory to get a totally unique version of this article for reprint.

The Difference in Currency Trading and Stock Trading

noreply@blogger.com (Unknown) — Thu, 15 Oct 2009 14:03:00 +0000

By Rakesh Tambe

In present times all of us understand the concept of trading weather it is stock trading or currency trading. In the forex market the value of one currency is compared to another. If the value of one increases compared to the other then that currency is said to be performing better. Most people who trade stocks think that they understand the finance markets well. Though trading forex can become viable option for a stock trader but he must learn the differences between stock and currency trading.

In the beginning of forex trading career it is good to use a software like FAP TURBO which helps in making gains in the forex market. It is a computer
program which can make trades on its own (without you lifting a finger).

Currency trading is done in a different way than stocks and futures. While the stock markets are regulated by the exchange and have a particular governing body in every country, there is no such control over currency trading. There is no government authority to govern the trades. Therefore the arbitration cannot exist if a dispute
arises in a currency trade. In essence, the forex market works on the trust between traders and trades are made as mutual agreements.

This trust among the traders make the forex market to work at the same level for all the traders giving everyone an equal chance to make gains. This is very much different from the well structured stock market. As the traders have to rely on each other for trading, they have to cooperate with each other while they are also competing against each other.

The second key feature that separates the currency trading from the stock market is to take advantage of the inside information from the contacts in the industry or business. While using such information is restricted by law in the stock market, you can use it freely in the currency trading. You can position yourself for gains if you know certain facts in advance. Ironically, this insider news and facts are leaked to the traders in forex market days before making them public.

The forex market gives you the advantage of making high gains starting with very low investment. Once you gain experience, you can start increasing the size of your investment. Just follow the basic principles of trading: study the market, trade within limits, follow the stop-loss and control your greed. Always invest the spare money you have and not the money you need for your day-to-day expenses or running your business.

The most useful tool in currency trading is the automated trading robots or expert advisors (EA). These are computer programs that can trade automatically without you lifting a finger. Fap Turbo has become the most profitable robot in the market beating all its peers. This is the easiest to set-up and claims to double your money every month.

About the Author:

Learn more facts about Fap Turbo. Stop by my site where you can find out all about Fap Turboand what it can do for you.

The Determination of Foreign Exchange Rate

noreply@blogger.com (Unknown) — Sat, 20 Jun 2009 20:22:00 +0000

Foreign exchange market is by far the largest traded financial market in the world, involved trillions of dollar on daily basis. Foreign exchange market is a place where currency trading takes place. Bank and financial institutions facilitate the transactions (buying and selling) of foreign currency. The foreign exchange rate is the price of one currency in terms of another currency. The foreign exchange rate is determined by foreign exchange market.

Exchange rate regimes
In a fixed exchange rate regime, the government (central bank) intervenes in the foreign exchange market to maintain a fixed rate. A fixed exchange rate is most conducive to trade as uncertainty and risk are minimized but the disadvantage is continuous monitoring and intervention required the government to set aside reserves for such occasions. Fixed exchange rate also means little or no speculation. When regime is a freely floating exchange rate, no intervention is required as the exchange rate is determined by the forces of supply and demand in the market, but the system is unstable and volatile as it invites speculation.

International monetary system is on a managed floating system. A managed floating system would have a band or margin within which the exchange rate is allowed to change and no intervention is required unless it is out of bound. Under the managed floating regime, when the exchange is exceeds the upper bound rate, the government will need to buy the local currency using its reserves or borrowing. When exchange rate is below the lower bound rate, the government will sell local currency. This will build up the reserves or use the reserves to pay back the loans.

Purchasing Power Parity and Balance of Payment
Purchasing Power Parity and Balance of Payment are two of the models developed to explain foreign exchange rate. The use of these models might not give thorough explanation as many macroeconomic factors affect the exchange rates and in the end currency prices are a result of dual forces of demand and supply. Supply and demand for any given currency are influenced by several elements. We can categorize these elements into three categories: economic factors, political conditions and market psychology.

Economic factors
Economic factors include economic policy and economic conditions. Economic policy comprises government fiscal policy (government budget or spending) and monetary policy (a condition where central bank influences the supply of money by determining the interest rates level)

Economic conditions include:
i) Government budget deficits or surpluses
A currency value reacts negatively to widening government budget deficits, but positively to narrowing budget deficits.
ii) Trade surpluses or deficits
A trade surpluses and deficits reflect the competitiveness of a nation’s economy. Trade flow (demand for goods and services) between countries also indicates demand for the country currency to conduct trade. A trade surplus may have a positive impact on a nation’s currency.
iii) Inflation
High or rising inflation will make a currency lose its value. Inflation erodes purchasing power which in term reduces demand for that currency.
iv) Economic growth and health
Factors such as high GDP, low unemployment level and increase retail sales indicate strong and healthy economic growth. This will yield more demand for the country currency, thus the better the currency is expected to perform.
v) Political conditions
Internal, regional, and international political conditions and events can have a profound effect on currency markets. Political instability may have a negative impact on the currency value. This is because unstable political condition can have a negative impact on the country’s economy. Similarly, in a country experiencing financial difficulties, the currency value can have the opposite effect s well. An events occurring in one country in a region may spur positive or negative interest in a neighboring country, thus affected its currency.

Market psychology
This is more towards trader perceptions influence the foreign exchange market in a variety of ways. Firstly, unsettling international events (political and economic uncertainties) can lead to investor seeking for stronger currency. Stronger currency will have greater demand, thus a higher price. Secondly, traders have anticipated how the market will react when rumor goes to their ears but the market react exactly the opposite direction. Last but not least, economic figures such as money supply, unemployment level, trade balance and inflation becomes important to market psychology and may have immediate impact on short-term market moves.

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City Index's Online Trading Platform

noreply@blogger.com (Unknown) — Mon, 18 May 2009 09:23:00 +0000

About City Index
City Index was established in 1983 and is part of Intercapital Private Group of Companies which has a significant shareholding in ICAP plc. City Index offers comprehensive range of spread betting products and instruments, including, UK, European, US and Far East markets, currencies, commodities and individual equities. City Index has 25 years’ experience delivering innovative trading solutions. City Index committed to price transparency with competitive spreads and margins.

City Index's Online Trading Platform
City Index provides a real time trading platform for its clients to perform their transactions. The trading platform itself is a sophisticated order management tool. It consists of a wide range of order types including stops, linked, and contingent orders allow sophisticated risk management while advanced tools for trade closure and auto-rollover offer trading flexibility. Comprehensive real time market news, prices, and market data provide resources to help you make informed trading decisions. In addition, you are able to access to professional charting package includes a range of indicators for technical analysts. The online trading platform offered 24 hour access to prices across global financial markets. The requirement for the usage of the online trading platform is very minimal, nothing more than a PC or laptop capable of running an internet browser such as Internet Explorer or Firefox will do. City Index also offer mobile trading platform for the convenience of their clients, who are always on the move.
For those who want to test the platform, you can always apply for a demo account. New registered member can always refer to the trading platform guide and charting guide for further explanation and guide on the usage of the trading platform.

Capital Spreads’ Online Trading Platform

noreply@blogger.com (Unknown) — Tue, 12 May 2009 08:14:00 +0000

About Capital Spreads
Capital Spreads is a division of London Capital Group Ltd (LCG) and LCG is authorised and regulated by the UK’s Financial Services Authority. LCG is a rapidly growing Financial Services organization.

Capital Spreads offer a wide variety of bets on financial products which include Indices, Shares (UK & US), Currencies (FX), Commodities (Metals, Oils & Coffee etc), Interest Rates and Bonds. You can bet on the Future, Cash (which expire at the end of each day) and Rolling Daily products.

Online Trading System
Capital Spreads has one of the most comprehensive online trading system. Here are some of the reasons why you should use Capital Spreads online trading interface.

Low Cost Dealing and Tight Spreads
Spread (The difference between the sell and buy price of a product) is the main cost to financial spread betting clients. Capital Spread create better value for its clients by offering permanently tight spread. The wider the spread, the more costly it is for you to trade.

Low Margin Requirements
Margin is the amount of money you need in your account in order to open a trade. The margin requirements offered by Capital Spreads are exceptionally low across all their markets. It means that you are required to deposit only a small percentage of the total notional value before opening a trade. For example, the Min IMR for the FTSE Rolling is 30, meaning for a £1 trade you need a minimum of just £30 in your account to open it.

Wide Range of Products
Thousands of different products including shares, commodities and metals, currencies and indices are offered by this spread betting company. You can make a trade on a variety of these products in just one currency.

Responsible Trading with Automatic Stop Losses
Spread Betting is a high-risk activity, every trade you open will have an automatic stop loss which is designed to help mitigate losses when you open a trade. But stop losses are not guaranteed so are subject to slippage.

24 Hour Trading
Capitals Spreads’ markets can be traded 24 hours a day including the major currency pairs and US indices.

Flexible Orders
Capital Spreads offers you a totally flexible stop loss facility. You can amend or revise stops to suit your needs. You can also create an opening order (with a stop loss and limit attached) to open a new position at a different level to where the market is currently trading or a limit order to close a position when you’ve reached your desired profit.

Professional Browser Based Trading Platform
The trading interface does not require any software download. You should be able to access your account from anywhere in the world that has an internet connection.

Free Charting Package
Free real-time, streaming charting facility which features both charts and diagnostics on all available spread products are provided by Capital Spreads website. These sophisticated charts represent the Capital Spreads prices which are derived from the underlying markets. A thorough tutorial is available from the trading platform which walks you through how to use the charting package.

Small Minimum Stake
With Capital Spreads you can trade from as little as £1 per point across all the markets we offer.

Learn to Spread Bet
Capital Spreads provides comprehensive seminar program and online learning tools such as our online Demo Account and User Manual.

IG Index’s PureDeal Resources

noreply@blogger.com (Unknown) — Sat, 09 May 2009 19:02:00 +0000

The previous post have mentioned about PureDeal resources provided by IG Index's dealing platform. The resources provide several important and useful tools required to be successful in financial spread betting. Lets look into each of the tools.

Reuter News
Pure Deal provides live streaming news from Reuter, the global information provider. This Reuter news service provided by IG Index is free. The news coverage includes wide-range of reports on international equities and completes coverage of economic release. There are 3 ways, Newflashes, Browse and Search, for you to keep up with the latest events. The feed is fast accurate and unbiased.

Fundamentals
Company information from individual shares is provided free to clients. You can get up to five years' financial data for each company, including revenue, income and EPS data, along with a broken-down cash flow history. You will also get the professionals’ forecast for earnings-per-share, dividend-per-share, sales and profit estimates from a survey of Brokers. Also provided are valuation ratios, dividend information, book value, ROE, ROA, margins and others relevant information. The overview page covered recent news about the company, snapshot charts and a summary of the company's structure and core businesses.

Research
Independent experts Trading Central supply the technical commentaries on equity, index, fixed income, forex and commodities markets. Their research is used by leading institutions.

Charts
PureDeal software offered wide range of charting options for basic analysis. The charting package is laden with features such as 70 preset indicators, real time, full customization, user friendly, tops movers, portfolios and lists, drawing capabilities and historical data.

PureDeal resources is a very comprehensive piece of spread betting software offered by IG Index. Traders can obtain lots of useful informations before making any decission on the most profitable financial spread bet.

IG Index's PureDeal Dealing Platform

noreply@blogger.com (Unknown) — Thu, 07 May 2009 08:44:00 +0000

About IG Index
IG Index is Britain's leading financial spread betting firm, offering prices in a huge range of indices, currencies, commodities and options, as well as thousands of individual shares. Financial spread betting has grown exponentially in the last decade because it offers traders and investors a unique combination of flexibility, speed of execution and tax-free profits. IG Index plc is part of IG Group, which has several operating companies offering a variety of speculative products to a retail and professional client base. IG Index provides competitive spreads on shares, indices, forex, commodities and more. With IG Index you are able to make your financial bet online or by phone, right around the clock.

Dealing Platform
IG index account holder will be provided with a spread betting software called PureDeal, a dealing platform to perform their transactions. PureDeal provides all the equipment needed for spread betting, including professional tools and cutting edge dealing functions. Several notable features of PureDeals are:
1) Price improvement technology enables you to get a better price during execution of your deal.
2) Do not need a deal ticket as IG Index one click dealing option allow you to see the price you want and click to bet.
3) Find your market with ease using PureDeal searching feature.
4) There are four notable resources provided by PureDeal which will help you in making decision on choosing profitable trades.
a. Charts – fast technical charting on all IG Index markets.
b. Equity Fundamentals - an overview of the stock, along with all key financials. You will
also get consensus estimates, per-share data, valuation ratios and more.
c. Reuter News – IG Index have teamed up with Reuters to provide an integrated news
service covering all markets.
d. Research – access to technical analysis from independent experts Trading Central
which is updated throughout the day.

We are going to discuss more detail about PureDeal resources in the coming post.

Mobile Dealing Software
As an IG Index account holder you get free access to our mobile dealing software, allowing you to trade all our markets on the move. Mobile dealing software offer all the same markets as on main platform. You can trade as usual by just selecting the market you want. You are able to keep tabs on your portfolio wherever you are with full access to your Open Positions and Orders to Open. Mobile dealing allows you to Place Stops and Limits as you would in normally trading, with the Orders to Open feature. Overall, navigating is easy, with the main menu divided into six main functions: Watchlists, Open Positions, Orders to Open, Finder, Finance/Sports and Log off.

Spread Betting Sofware | Spread Betting System

noreply@blogger.com (Unknown) — Sun, 19 Apr 2009 13:47:00 +0000

Profitable Financial Spread Betting System

Most people lost money because they do not have a spread betting system which is profitable nor successful. Most people make the same mistake times and again but they never realized their mistakes. Here are some of the important points of a successful financial spread betting system which will ensure that you never fall to the same mistake again.

1) Stick to a Spread Betting System, Consistency Is The Key To Success.

If you use a system never try to predict a trade, it is always better to take a small loss than it is to miss out on the biggest profit taking opportunity for the year as this could be the difference between a profitable or a loss making year. Most people tend to over analyze and think that the particular trade generated by the system is not good enough.Why choose and pay for a system if you think that you know more or better? "This is the one of the most popular reason why traders fail to succeed."

2) Follow the Trend, Never Predict Tops or Bottoms

A person's natural tendency is to look for a bargain. There is no such thing as a bargain in financial spread betting. Always buy strength and sell weakness. This goes against everything we have grown to believe, but this works. When was the last time you bought HIGH and sold LOW, but I can assure you successful traders will always buy HIGH and sell LOW. "This is the most important lesson you will ever learn."

3) Let Your Winners Run, Never Exit a Trade Early.

Never ever exit a trade if you think that the price has reached the maximum or if you think the price is at the minimum. Trying to predict Tops or Bottoms will significantly reduce your profits, which in the end will cost you significantly and could result in failure.

4) Cut Your Losses.

The majority of trading systems fail by neglecting to cut losses. The key to consistent profit making in the markets is that your winning trades must be larger than your losing trades. A carefully controlled system calculate the limit on the amount you can trade based on your portfolio and precisely placed stops, winning trades have been consistently larger than the losing trades.

5) Never Add To a Losing Trade.

This is the most common mistake made by traders, generally once you start to add to a losing trade you find yourself "throwing good money after bad" believing that the market has had to have reached the TOP or BOTTOM. Unfortunately you can never predict the top or the bottom and, in many cases, end up losing a lot of money to the point where you may not be able to recover.

6) Money Management is the Most Important Key To Profit.

The key to success is regulating how much to place on each trade. Unless the market is "TRENDING" never risk more than 2% on any one trade. Therefore on a £100,000 account, 2% means each trade can only risk £2,000.
The 2% is not a static figure as you will have to always recalculate the 2% amount for each trade before placing any new trades. This is because the new account balance will have moved up or down. You might have gain profit of £50,000 and the account balance will then increase to £150,000. So the new 2% amount to be risked on each trade would now be £3,000 instead of £2,000.

These are few of the important points for a successful and profitable spread betting system. A good system can match any of the spread betting software available in the market and you will be able to make profit form it.