FOREX TRADING

Six types of basic forex trading strategies

noreply@blogger.com (Arsalan) — Tue, 26 May 2009 13:51:00 +0000

When you are new trader or an existing trader there are several strategies that you should use while trading so as to obtain great returns. Several forex trading strategies are available and you have to select the one which suits you. Depending on the total amount you intend to invest will eventually make you to choose certain strategies. If you are not a high risk taker then you will also limit yourself to some of the strategies available which are of high risk but they also reward great.

Therefore as a trader you should be able to select the best strategy that will help you trade effectively. In this article I have briefly outlined some of the trading strategies available. These strategies will also help you to protect your investment as well as yield profit. For beginners I would highly recommend you to first try out the basic forex trading strategies before you attempt to explore new strategies.

Simple Moving Average (SMA):

This is one of the best trading strategies that will eventually award you a high return. This strategy optimizes you risk with respect to your reward. This strategy has a disciplined method of limiting risk and at the same time making the most favorable market moves. With this strategy you definitely get good results if it is used properly.

Support and Resistance Levels:

This is a technical analysis where a trader will tend to trade below its resistance levels and trade above its support levels. If a resistance or support level is broken then the market will follow in that direction. The determination of these levels can be analyzed by charts and accessing at which point the market has encountered unbroken resistance or support.

Hedging:

This is the process by which traders will reduce their risks by holding a particular forex. Traders would sell their forex within a certain period of time so as to offset the risk of a decrease in forex prices. Once the price of the stock falls, there will be an increase in the put option. This strategy will become more expensive if put options are bought against individual stocks. Another way of hedging against market declines is by selling financial futures such as the S&P 500 futures.

Dogs of the Dow:

This is a strategy that gained popularity is the 90s. It involves the buying of stocks which are favorable to be the best in the Dow Industrial Average. Therefore this would be the stocks with the highest dividends yield and lowest P/E ratios.

Buying on Margin:

This is the buying of forex using borrowed money, the money would be from the broker and hence it is called buying on margin. In the event that the forex that you are trading on loses value the losses will eventually be big too. This would be the fact that you would have made two loses. You now have to return the money you had borrowed and also interest applies and again you lost it on the forex trade. When making use of this strategy you should definitely be tactile and aggressive. You should be able to limit your risks and also as to identify when you can enter and exit a trend. In order for this strategy to work effectively you should make sure that you have stop – loss orders so as to limit the losses in case of market reversal. This is one of the strategies with high risks but it also has a high reward basing on the fact that if you are successful you will be able to return the borrowed money and keep the rest of the profit to yourself.

Dollar Cost and Value Averaging:

This is a strategy which involves the investment of fixed dollar amounts on regular basis. A drop in price will result in investors receiving more dividend yield. Value averaging is an alternative to dollar cost averaging and this makes investors to determine the value that they wish to invest. This will also average the investor’s percentage return and this strategy minimizes risks but the rewards are not too great than compared to the other strategies.

As a forex trader you should be able to analyze several strategies so that you are able to profit more from your investment.

Pratice Trading is Crucial in Forex

noreply@blogger.com (Arsalan) — Mon, 25 May 2009 14:04:00 +0000

Our inbox gets this message at least once a month: "I lost a lot of money when I first started trading, but after I got the hang of it I did better." We quickly learn that these people failed to include a vital step in their trading education: Practice.

And practice trading isn't just for newbies. Anytime you develop a new strading strategy, you MUST backtest and then practice trade before you try it in the live market. This is a lesson you can learn the easy way, or the hard way. Please, choose the easy way

Why would you not practice first?

Imagine you've been selected to shoot a free-throw at half-time of an upcoming basketball game for the chance to win $10,000. Would you spend some time practicing the shot leading up to the game, or would you simply strut in there and plan to sink the basket?

Of course, you'd practice. But sadly, many traders jump into the markets with live money, and end up losing lots of simply because they weren't prepared for the ins-and outs of actually placing trades and managing them.

Don't kid yourself, you need practice. A MAJOR part of your market education should be learning how a trade is actually placed, order types, commissions, timing your entries and exits (if you plan to trade on market timing or with a trend). All of these things take practice and refinement, and it's way to painful a lesson to learn with real money.

Practice until you've got it

If you're new to the market, we're not talking about practicing for just a couple hours, or even days. For some, it may take weeks to get a strategy and the mechanics down, while others may take months. And some will even decide they can't take the emotional stress investing your own money brings, and they decide they just need to learn enough to pick a good financial planner or investment advisor.

A word of advice: Paper trade like you mean it!

Sometimes new traders open a practice trading account, and begin placing hundreds of thousands of play money on the line, trading wildly and recklessly. That's fine if you're just looking for a good time.

But if you want valuable practice that will help you in the live market, trade just like you would if it was real money on the line. Make your practice trading account balance similar to your actual account balance. And make sure you've developed a trading strategy to test and refine.

Forex Trading - Which Is Best Fundamental or Technical Analysis?

noreply@blogger.com (Arsalan) — Mon, 25 May 2009 14:00:00 +0000

Fundamental Analysis

Currencies are affected by the fundamentals and these include:

The political situation, strength of the economy, government policy, the interest rate outlook to name just a few.

These are FACTS and the various participants look at them and decide which way prices should go.

The main advantage is:

The direction of the currency is normally in line with the long term fundamentals and this is reflected in currency trends lasting for months or years in line with economic and political cycles.

The main disadvantage is:

The people who look at the fundamentals are NOT making logical judgements they are influenced by the emotions of greed and fear.

We all have the same facts to look at but we all make subjective judgements on what the facts mean.

This means that price spikes are common and these don’t always reflect the fundamentals – Keep in mind it is humans as a collective group that decide price and they do NOT Conform to objective criteria.

To compound the problem we live in a world of instant communications, where the news is discounted in seconds and reflected in the price in a split second.

Now let’s look at technical analysis and why it is the best way for a trader should base his forex strategy upon it.

Forex Technical Analysis

Technical analysis contrary to belief, actually takes into account the fundamentals – it simply assumes that all fundamentals will show up in price action - but it does something more it takes into account the greed and fear of the participants, that motivate the individual participants.

A simple equation for this is:

Fundamentals + Investor Psychology = Price.

Forex technical analysis takes into account both inputs that make up price and they simply look at their forex charts and let them tell them where to execute their trading signals.

The advantages of forex technical analysis are:

It gives you the overall picture, is less time consuming, keeps your emotions out of trading and lets you trade the reality - without having to impose an opinion.

You trade the truth and that is the market price as you see it NOT what you think it should be.

The disadvantage is:

In the way that people use it – Most forex traders think they need to predict but that’s just guessing and hoping and you wont get far doing that!

Technical analysis will work, but only if you view it as a method to put the odds in your favour and act on confirmation of price changes.

For most traders a forex trading system based upon technical analysis is the best way to trade - you just need to be able to understand its advantages and limitations but that won’t stop you making a lot of money if you trade with the odds.

One final point:

They are completely separate forms of analysis and you should not mix the two – you are either a fundamental or technical trader. Our view is you should be the latter if you want to achieve currency trading success over the longer term.

What Are Forex Training Programs?

noreply@blogger.com (Arsalan) — Mon, 25 May 2009 13:48:00 +0000

Forex Training programs will teach you how to increase your money making potential. Unfortunately, they focus on mainly one profitable FX market technique.

You should really be looking at other educational that can teach you a broad range of trading skills all the way from the basic level to the advanced trader.

The easiest way to engage profitably with currency markets is to take the short term approach. Learn what concepts you can quickly and apply those lessons to start making money. These forex classes will teach you simple, easy ways to trade. If you pay attention, youll be generating income shortly after you start learning the concepts!

The two best courses are Forex Trading Made EZ and 10 Minute Forex Wealth Builder. Both classes have a very simple approach which doesnt waste your valuable time. Learn, apply, and then youll start making money! A class titled Hector Trader is a trend trading specialization course but that class requires more of your time before you are able to turn a profit. The videos you watch for the class are very complicated and you might have to watch each video several times.

Therefore, learn the techniques outlined in the basic classes. They use very different methods of training and if you follow their teachers, your portfolio will be adequately diverse. With a diverse portfolio, you should experience profitability on a monthly basis.

Then, I would attend a class that would educate me fully about the markets so that I would not appear ignorant while learning some of the things in other classes.

If you complete two courses in particular, Fap Winner and Straight Forex, and use their three techniques for the short term and a long term technique in your investments, you will certainly be very profitable.

It all boils down to hard work. If you are ready to get your hands dirty and be prepared to work, there is absolutely no reason as to why you can’t succeed.

Why is trading Forex so lucrative?

noreply@blogger.com (Arsalan) — Sat, 23 May 2009 15:25:00 +0000

FOREX trading is one of the few ways to start with small stakes and build wealth quickly. The good news is that everything about successful Forex Trading can be learned by those willing to put in the time and effort.

If you want proof of this go to the Forex Education section where you can read how a group traders with no previous experience learned to trade in just 14 days and went on to make over $100 million!

1. Leverage

Leverage is the ability to trade more funds than you actually have and if you use it correctly, you can make huge gains and build wealth quickly.

For example, if you deposit $5,000 with a FOREX broker they will allow you to trade with a leverage of at least 100:1. This gives you the ability to trade $1 million and considerably enhances your profit potential.

Leverage of course can work for or against you.

If however you can keep losses small and run profits then you can build wealth quickly

A PROVEN Forex trading system with good money management, combined with leverage, is the secret of making long term capital gains.

2. Profit Opportunities in Bull or Bear Markets

As one currency rises another must be falling and vice versa, this gives profit potential in ANY economic climate. Currencies are volatile and trading opportunities emerge somewhere in the world every day.

3. Currencies Trend

Currencies reflect the overall health of a country's economy and these economic trends last for months or even years. If you can spot and lock into these long term trends, you can build significant long term wealth.

4. liquidity

The currency markets are the world's largest investment medium and trillions of dollars are traded daily. This volume of transactions and liquidity means traders are able to open and close positions quickly, to lock in profits, or cut losses.

Turning Opportunity Into Profit

Forex trading is perhaps the ultimate home business and has more profit potential than any other including:

* You can trade from Home in just an hour a day
* You only need a computer and an internet connection
* Money you invest in your business can be leveraged 100 times or more
* You don’t need staff or stock and you don’t need to market your business
* There is never a bear market
* There are opportunities all the time to make profit
* Anyone can learn this business
* You can take holidays when you want
* You can build wealth quickly

Turning Potential Into Profit

Of course you have to turn the above potential into profit and you need a plan and proven tools to get the odds in your favor - If you have the right attitude to achieve success and a willingness to learn, you could soon be building wealth in the world’s biggest and most exciting business.

5 Useful Tips For Your Success In Forex Trading

noreply@blogger.com (Arsalan) — Fri, 22 May 2009 15:19:00 +0000

1. Implement a trading plan.

A trading plan is especially crucial in Forex trading to stay ‘in-control’ against the emotional stress in speculative situation. Often, your emotions will blind and lead you to the negative sides: greed causes you to over-ride on a win while fear causes you to cut short in your profits. Hence, a well organized operation has to be predetermined and strictly followed. Always remember: “If you fail to plan, you plan to fail”.

2. Trade within your means

If you cannot afford to lose, you cannot afford to win. Losing is a not a must but it is the natural in any trading market. Trading should be always done using excess money in your savings. Before you start to trade in Forex, we suggest you to put aside some of your income to set up your own investment funds and trade only using that funds.

3. Trade along side with the majorities

Trade on popular currency pairs and avoid thin market in Forex. The lack of public participation will cause difficulties in liquidate your positions. If you are beginners, we suggest the big five: USD/EUR, USD/JPY, USD/GBD, USD/CHF, and EUR/JPY. Avoid trading in too many markets as you may end up confusing yourself by all sorts of currency studies. Go for the major currency pairs and drill down your research in it.

4. Avoid emotion trading

If you do not have a trading plan, make one. If you have a trading plan, follows it strictly! Never ever attempt to hold your weakened position and hope the market will turn back in your favor direction. You might end up losing all your capital if you keep holding. Move on, stay within your trading plan, and admit your mistakes if things do not turn as you want.

5. Love the trends

Trends are your friends. Although currency values fluctuate but from the big picture it normally goes in a steady direction. If you are not sure on certain moves, the long term trend is always your primary reference. In long run, trading with the trends improves your odds in the Forex market.

Forex trading is getting more and more popular among small investors nowadays. Main reasons are mostly because of its high money liquidity, high leverage value with Forex brokers, and 24-7 trading time. However, being as a popular market does not mean that Forex trading is easy. In fact, trading in Forex involves high risks and the market is much volatile compare to other conventional trading markets.

Without a doubt, Forex trading needs much more than just a few guidelines or tips to be successful. Experience, knowledge, capital, fortitude, and even some help of luck are all crucial in one’s success in the FX market. if you lose in a trade, do not lose the experience in it. Learn from your mistakes and regain your position in the next trade.

Forex Trading - Fantastic Tip

noreply@blogger.com (Arsalan) — Fri, 22 May 2009 14:09:00 +0000

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Learning To Trade Forex

noreply@blogger.com (Arsalan) — Tue, 19 May 2009 18:37:00 +0000

Learning To Trade Forex:

Forex trading is one of those industries where anyone who has ever had any level of success thinks they're an expert. The forums are full of people who have had one or two weeks of profits or maybe made a decent amount of money in the past, and want to offer advice to other people. The fact is that you have to be very careful who you listen to.

The real professionals in the forex industry are those traders who have successfully made money over a number of years, and particularly those who work for themselves because they are always risking their own money when they trade. Sadly these people are in the minority (estimates suggest that just 5% of traders are profitable) and those that do fall into this category don't tend to hang around in forums.

So next time you're browsing the forex forums, be aware that most of the traders will not be profitable in the long run. Therefore any advice that is offered should be taken with a pinch of salt.

The same can be said for the vast majority of forex products that are being sold online. While there are a few excellent products on the market, the vast majority of them offer false promises that they simply cannot deliver.

For instance if you look at the sales page for many of these products you will often notice that most of them promise vast riches if you buy their trading system or robot. They will blow you away with incredible trading results and impressive-looking trading systems but the reality is that when you come to try out the trading method or automated robot yourself, the results are nowhere near as impressive. In fact most times you will actually end up losing money.

This is hardly surprising because if these $97 robots or trading systems were consistently profitable, then all the large banks and financial institutions would be using them themselves.
The same can be said for the vast majority of forex products that are being sold online. While there are a few excellent products on the market, the vast majority of them offer false promises that they simply cannot deliver.

For instance if you look at the sales page for many of these products you will often notice that most of them promise vast riches if you buy their trading system or robot. They will blow you away with incredible trading results and impressive-looking trading systems but the reality is that when you come to try out the trading method or automated robot yourself, the results are nowhere near as impressive. In fact most times you will actually end up losing money.

This is hardly surprising because if these $97 robots or trading systems were consistently profitable, then all the large banks and financial institutions would be using them themselves.

So the point is that if you are looking online for general information on forex trading always be wary of who you listen to. This industry is full of get-rich-quick product sellers and scam artists so you need to take some time to seek out the small minority of experienced and profitable traders that are out there. A good mentor can be the difference between making money and losing money in this industry.So the point is that if you are looking online for general information on forex trading always be wary of who you listen to. This industry is full of get-rich-quick product sellers and scam artists so you need to take some time to seek out the small minority of experienced and profitable traders that are out there. A good mentor can be the difference between making money and losing money in this industry.

Forex Terminal Pakistan

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:47:00 +0000

Forex Terminal Strives to deliver the highest standards in the financial trading market through building a financial network of partners throughout Pakistan to cover clients’ needs of support, training, money management, and assistance.

Forex Terminal is building a network of partners throughout Pakistan to cover clients’ needs of local support, training, money management, and assistance.

Forex Terminal is complying with The Central Bank of Pakistan you can find here more information about Forex Terminal regulations.

To talk to us about benefits of Pakistan oriented Forex Account.

One of Forex Terminal top priorities has always been to build and maintain a long-term relationship with it's clients based on mutual trust by providing them the best premium financial services and the best support to achieve the ultimate goals which are to get our clients to achieve their financial objectives and targets in FOReign EXchange (FOREX) Market all over the world.

Clients from Pakistan can trade using Asian Account, Global Account or any other account type at Forex Terminal.

Forex Terminal Provides the clients with unbeatable trading tools and capabilities through platform and mailing services.

Forex Terminal uses Wire Transfer and e-gold in deposits and withdrawal process. Regardless of deposit type, security is the highest priority, and advanced precautionary measures are taken to safeguard the clients' personal information.

Here's A List of banks in Pakistan that Forex Terminal is dealing with:

National Bank of Pakistan
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If your bank is not in the list, please Contact Us or check with your bank

Forex Terminal is offering outstanding opportunity to qualified Introducing Brokers, Money Managers and White Labels in: Islamabad,

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Useful Links to Pakistani financial sites:

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You can negotiate with Forex Terminal representatives to get a financial investor program that will enhance your business with our financial skills.

Global Investing Opportunities

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:44:00 +0000

With the global markets becoming increasingly intertwined, investors are no longer limited to just investing in their local market. In this day and age of advanced technology, US investors can trade UK or Japanese stocks just as easily as they can trade US stocks. The same is true for other investors around the world who are seeing easier access to foreign markets thousands of miles away. However, as certain as you may be about where the Nikkei is headed, investing internationally comes with a risk that may not be as apparent. Foreign or currency risk is a gripe for investors big and small. Sometimes they can compound profits, but just as often, they can significantly reduce losses. Therefore, hedging or at least keeping an eye on the currency market is a must for any investor dabbling internationally. Over the past year, we have already seen currency fluctuations have a profound impact on market returns.

Forex Pakistan

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:42:00 +0000

iness people from around the globe meet both in person and online to exchange various currencies for other currencies in hopes of making big money.com.This is probably more familiar to common stock traders.The US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar make up more than 85% of all forex trades.The modern system of money, and eventually forex trading, was born out of the answer to this problem.Conversely, if the economic situation is not so good, the money is worth less.The ability to make forex trades 24 hours a day is a fundamental part of what makes foreign exchange trading so popular.A simulated investing environment provides a place for a forex trader to implement new systems and to track their performance without putting any of his or her own assets at risk.Learn forex trading and take advantage of one of the fastest growing global investment opportunities.Once you have done some research and have found several forex trading systems with which you are comfortable, you should do some additional research to check on the validity of those few.Since money worth is based off almost nebulous forces, an organization can attempt to gauge a country's current economical situation.Just keep the basic principles of currency in mind and start studying.The second part of forex quotes that you need to look at is the pricing portion of the quote.It is vital that that you be able to have the latest updates when you are planning trades.They key is to remain alert and don't take any promises at face value.This is a great tool for those who are completely unfamiliar with forex trading but who are serious about getting comfortable with the processes involved.com.Another benefit is the lack of commissions.pro-forex.Bid prices and ask prices, which make up an integral part of forex quotes,

Forex Overview

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:29:00 +0000

What is FOREX?

Foreign Exchange (ForEex) trading is simply the exchanging of one currency for another - Each Forex trade can theoretically be viewed as a 'spread ' trade where to buy one currency you must sell another. Convention dictates that currencies are measured in units per 1 USD. For example, 1 USD is worth approximately 125 JPY (Japanese Yen) or 1 USD is worth approximately 1.5000 CHF (Swiss Francs). As a result, when USD/JPY appreciates in value, it is the USD that has appreciated in value relative to the JPY and not vice-versa. Position-wise, to own or be 'Long' USDJPY means that you are long the USD and concurrently short the JPY. USD, therefore, is the default 'lead' currency.

Forex tutorial - fundamental analysis

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:27:00 +0000

Forex Fundamental Analysis

One of the two major strategies when trading foreign currency is through the use of what is known as fundamental analysis. Loosely defined, it is the approach based on studying current events, political and financial policy trends, and overall economic movement. In general traders using this technique are usually interested in long-term trades when trying to create returns. Economic conditions and environments are the major factor in determining the potential movements or upcoming trends that fundamental traders will use to not only predict future valuations of currencies, but also correct present values as well. Unfortunately one of the downfalls of fundamental trading is that during periods of little activity, and quite markets it is hard to find any useful data. Fundamental analysis itself is broken down into two broad subcategories, capital flows, and trade flows.

Tracking Balance of Payments

These study the demand of a currency over a given period of time, which is also known as the balance of payments. Capital flows are the net amount of currency being bought or sold through capital investments, which can include anything from foreign direct investments, joint ventures, third party licensing agreements, equity market investments, and fixed income market investments. The first three types of investments mentioned are physical flows of capital that can reflect the financial stability and economic growth of a country and its currency. The latter two are the flow of more common portfolio investments and international government bonds.

Trade Flows

The second type of fundamental analysis is trade flows, measuring imports and exports of a nation and its impact on the valuation of its currency. International trade plays a large role in the forex market, since importers must sell currency in order to purchase foreign goods or services. It is a one of the first ways used to understand the changes in exchange rates, and still among the most predictable ways to study the value of currencies. Net importers, or countries that run trade deficits traditionally experience devaluation of their currency, while those that run trade surpluses increase the value of theirs. The balance between trading partner and their affect on international trade transfer to the balance of payments and capital flows.

Monitoring Global Events

Fundamental traders follow global events, and their impacts on international investments. This makes both political relations, as well as financial status important to the trade process. Any changes in the relationship of one country’s government with another’s can effect the pricing of any currency pair in the forex market. Thus when using fundamental analysis it is important to stay abreast of current breaking news in order to produce profits.

Forex Exchange Market (Forex Glossary)

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:23:00 +0000

A : Aggressor: A trader dealing on an existing price in the market. Appreciation: The increase in the value of an asset. Arbitrage: Profiting from differences in the price of a single currency pair that is traded on more than one market. Ask: The price at which a currency pair or security is offered for sale; the quoted price at which an investor can buy a currency pair. This is also known as the 'offer', 'ask price', and 'ask rate'. Ask Price: See 'ask'. Ask Rate: See 'ask'. Asset: An item having commercial or exchange value.
B : Back Office: The office location, or department, where the processing of financial transactions takes place. Base Currency: In terms of foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. The base currency is the currency against which exchange rates are generally quoted in a given country. Examples: USD/JPY, the US Dollar is the base currency; EUR/USD, the EURO is the base currency. Bear Market: An extended period of general price decline in an individual security, an asset, or a market. Bid: The price at which an investor can place an order to buy a currency pair; the quoted price where an investor can sell a currency pair. This is also known as the 'bid price' and 'bid rate'. Bid/Ask Spread: The point difference between the bid and offer (ask) price. Big Figure: The first two or three digits of a foreign exchange price or rate. Examples: USD/JPY rate of 108.05/10 the big figure is 108. EUR/USD price of .8325/28 the big figure is .83 Bull Market: A market which is on a consistent upward trend. Buy Limit Order: An order to execute a transaction at a specified price (the limit) or lower. Buy On Margin: The process of buying a currency pair where a client pays cash for part of the overall value of the position. The word margin refers to the portion the investor puts up rather than the portion that is borrowed.
C : Cable: The British pound/US Dollar exchange rate GBP/USD. Candlestick Chart: A chart that displays the daily trading price range (open, high, low and close). Carry (Interest-Rate Carry): The income or cost associated with keeping a foreign exchange position overnight. This is derived when the currency pairs in the position have different interest rates for the same period of time. Central Bank: A bank, administered by a national government, which regulates the behavior of financial institutions within its borders and carries out monetary policy. Chartist: A person who attempts to predict prices by analyzing past price movements as recorded on a chart. Closing a Position: The process of selling or buying a foreign exchange position resulting in the liquidation (squaring up) of the position. Closing Market Rate: The rate at which a position can be closed based on the market price at end of the day. Commission: The fee levied by an institution to undertake a trade on behalf of a customer. Confirmation: Written acknowledgment of a trade, listing important details such as the date, the size of the transaction, the price, the commission, and the amount of money involved. Counterpart: A participant in a financial transaction. Cross-Rate: The exchange rate between 2 currencies where neither of the currencies are USD. Currency: Money issued by a government. Currency Pair: The two currencies that make up a foreign exchange rate. IE: USD/YEN. Currency Risk: The possibility of an unfavorable change in exchange rates.
D : Day Order: A buy or sell order that will expire automatically at the end of the trading day on which it is entered. Day Trade: A trade opened and closed on the same trading day. Day Trader: A trader who buys and sells on the basis of small short-term price movements. Day Trading: Refers to a style or type of trading where trade positions are opened and closed during the same day. Dealer: An individual or firm that buys and sells assets from their portfolio, acting as a principal or counterpart to a transaction. Depreciation: A fall in the value of a currency due to market forces. Devaluation: The act by a government to reduce the external value of its currency. Discretionary Account: An account in which the customer permits a trading institution to act on the customer's behalf in buying and selling currency pairs. The institution has discretion as to the choice of currency pairs, prices, and timing-subject to any limitations specified in the agreement.
E : Euro: The common currency adopted by eleven European nations(Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal) on January 1, 1999. European Central Bank (ECB): The Central Bank for the new European Monetary Union. Execution: The Process of completing an order or deal.
F : Federal Deposit Insurance Corporation (FDIC): The regulatory agency responsible for administering bank depository insurance in the United States. Federal Reserve (Fed): The Central Bank of the United States. Fill: The process of completing a customer's order to buy or sell a currency pair. Fill Price: The price at which a buy or sell order was executed. Financial Risk: The risk that a firm will be unable to meet its financial obligations. Flat: Term describing a trading book with no market exposure. Forward: A transaction that settles at a future date. Forward Points: The points that are added to or subtracted from the spot rate to calculate the forward rates for a forward foreign exchange transaction. These points are based on the differential between the interest rates of the two currency pairs. Forward Price: (See forward rates). Forward Rates: The net price resulting from calculating the forward points and subtracting them from the existing spot rate. This is the rate at which a currency can be purchased or sold for delivery in the future.
G : Good Till Cancelled Order (GTC): A buy or sell order which remains open until it is filled or canceled.
H : Hedge: A transaction that reduces the risk on an existing investment position.
I : Initial Margin: The deposit a customer needs to make before being allocated a trading limit. Initial Margin Requirement: The minimum portion of a new security purchase that an investor must pay for in cash.
J : Jobber: A trader who trades for small, short-term profits during the course of a trading session, rarely carrying a position overnight.

L : Limit Order: An order to execute a transaction at a specified price (the limit) or better. A limit order to buy would be at the limit or lower, and a limit order to sell would be at the limit or higher. Liquidity: Refers to the relationship between transaction size and price movements. For example, a market is "liquid" if large transactions can occur with only minimal price changes. Long: See long position. Long Position: In foreign exchange, when a currency pair is bought, it is understood that the primary currency in the pair is 'long', and the secondary currency is 'short'.
M : Maintenance: A set minimum margin that a customer must maintain in his margin account Margin: The amount of money needed to maintain a position. Margin Account: An account that allows leverage buying on credit and borrowing on currencies already in the account. Buying on credit and borrowing are subject to standards established by the firm carrying the account. Interest is charged on any borrowed funds and only for the period of time that the loan is outstanding. Margin Call: A call for additional funds in a margin account either because the value of equity in the account has fallen below a required minimum (also termed a maintenance call) or because additional currencies have been purchased (or sold short). Mark-to-Market: The theoretical value of an open position at the current market price. Market Close: This refers to the time of day that a market closes. In the 24 hour-a-day foreign exchange market, there is no official market close. 5:00 PM EST is often referred to and understood as the market close because value dates for spot transactions change to the next new value date at that time. Market-Maker: A person or firm that provides liquidity making two-sided prices (bids and offers) in the market. Market Order: A customer order for immediate execution at the best price available when the order reaches the marketplace. Market Rate: The current quote of a currency pair. Market Risk: The risks that occur when general market pressures cause the value of an investment to fluctuate. Maturity: The date on which payment of a financial obligation is due. Momentum: The tendency of a currency pair to continue movement in a single direction.

O : OCO-One Cancels the Other Order: A combination of two orders in which the execution of either one automatically cancels the other. Offer: The price at which a currency pair or security is for sale; the quoted price at which an investor can buy a currency pair. This is also known as the 'ask', 'ask price', and 'ask rate'. Open Order: Buy or sell order that remains in force until executed or cancelled by the customer. Open Position: Any position (long or short) that is subject to market fluctuations and has not been closed out by a corresponding opposite transaction. Order: A customer's instructions to buy or sell currencies. Overnight Position: Trader's long or short position in a currency at the end of a trading day.
P : Pip: The smallest increment of change in a foreign currency price, either up or down. Price: The price at which the underlying currency can be bought or sold. Price Transparency: The ability of all market participants to "see" or deal at the same price. Principal Value: The original amount invested by the client.
Q : Quote: A simultaneous bid and offer in a currency pair.
R : Rate: Price at which a currency can be purchased or sold against another currency. Resistance: Price level at which technical analysts note persistent selling of a currency. Revaluation: Daily calculation of potential profits or losses on open positions based on the difference between the settlement price of the previous trading day and the current trading day. Risk (Foreign Exchange Risk): The risk that the exchange rate on a foreign currency will move against the position held by an investor such that the value of the investment is reduced. Risk Management: The employment of financial analysis and use of trading techniques to reduce and/or control exposure to financial risk. Roll-Over: The process of extending the settlement value date on an open position forward to the next valid value date.
S : Sell Limit Order: An order to execute a transaction only at a specified price (the limit) or higher. Selling Short: A situation where a currency has been sold with the intent of buying back the position at a lower price to make a profit. Settlement: The actual delivery of currencies made on the maturity date of a trade. Short: See short position. Short position: In foreign exchange, when a currency pair is sold, the position is said to be short. It is understood that the primary currency in the pair is 'short', and the secondary currency is 'long'. Short Squeeze: The pressure on short sellers to cover their positions as a result of sharp price increases. Spot Market: Market where people buy and sell actual financial instruments (currencies) for two-day delivery. Spot/Next or S/N roll: The process of moving the spot settlement value date on an open position forward to the next valid value date. This process will affect the profit or loss on the overnight position. The forward points reflect the difference in interest rates between the currencies being rolled over. Spot Price: The current market price of a currency that normally settles in 2 business days (1 day for Dollar/Canada). Spread: This point or pip difference between the bid and ask price of a currency pair. Sterling: Another term for the British currency, 'The Pound'. Stop (loss) Order: Order to buy or sell when a given price is reached or passed to liquidate part or all of an existing position. Stop Order (or stop): An order to buy or to sell a currency when the currency's price reaches or passes a specified level. Support Levels: A price at which a currency or the currency market will receive considerable buying pressure. Swap: A transaction which moves the maturity date of an open position to a future date.
T : Take Profit Order: A customer's instructions to buy or sell a currency pair which, when executed, will result in the reduction in the size of the existing position and show a profit on said position. Tick: The smallest possible change in a price, either up or down. Tomorrow Next (Tom/Next), (T/N), T/N Roll: The process of moving the settlement value date on an open position forward from one business day after the trade date (tomorrow), to the next valid value date (next), the spot value date. Transaction Date: The date on which a trade occurs. Turnover: The total volume of all executed transactions in a given time period. Two-Way Price: A quote in the foreign exchange market that indicates a bid and an offer.

V : Value Date: The maturity date of the currency for settlement, usually two business days (one day for Canada) after the trade has occurred. Variation Margin: Funds, which are required to bring the equity in an account back up to the initial margin level, calculated on a day-to-day basis. Volatility (VOL): Statistical measure of the change in price of a financial currency pair over a given time period.


Y : Yard: A slang word used in the currency industry meaning 'billion'.

Forex Books

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:22:00 +0000

		Trading in the Global Currency Markets by Cornelius Luca Book Info Text brings the complex machinations of the foreign currency markets to life, clearly and concisely analyzing the various currencies, market forces, and emerging technologies, and illuminating them with real-world examples and graphics.

		The Disciplined Trader: Developing Winning Attitudes by Mark Douglas Book Info This work aims to help traders learn the critical behaviors necessary in responding to market conditions and opportunities. The author - an experienced commodities trader - has considered and confronted the problems he experienced in trading.

		Technical Analysis from A to Z, 2nd Edition by Steven B. Achelis Book Info This revised edition provides a basic overview of technical analysis for readers who are new to the subject, explaining what technical analysis with regard to trading actually entails. It presents 102 technical indicators, arranged alphabetically.

		Technical Analysis Applications In The Global Currency Markets Second Edition by Cornelius Luca Book Info A comprehensive guide to the foreign currency market showing beginners and experienced traders how to use technical analysis to cash in on opportunities. The enclosed CD-ROM contains a software software demonstration program to test the methods in the text and apply them to real trading.

		Applying Elliott Wave Theory Profitably by Steven W. Poser Book Info "I have always found Elliott Wave difficult to understand and more difficult to apply, but finally Steve Poser has written a book that makes sense and is born from real experience. This is not Elliott made easy but Elliott that makes sense. Hats off to Poser for creating the book the marketplace has needed for so long." Bruce M. Kamich, CMT Adjunct Professor of Finance at Baruch College and Rutgers University

Pakistan Forex Trading

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:15:00 +0000

Now, you can make money online with Forex trading in the global Forex trading market, which is the world's largest, most profitable, most powerful and most persistent trading market.

For those who do not know it yet, FOREX an abbreviation for "FOReign EXchange" or "foreign currency exchange". Foreign exchange is the purchase or sale of a currency against sale or purchase of another. The FOREX market is the global interbank market where all currencies are traded.

"fxpakistan.com" will help you to become one of the top "Forex Traders" with our basic information on forex trading, in addition to other forex articles, forex tools, best forex books in the market, latest up-to-date forex trading news. Also, we will provide you with the best forex trading systems and forex brokers who are responsive to your individual needs as a forex trader.

Forex Essentials in 15 Trades

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 07:01:00 +0000

Forex Essentials in 15 Trades: The Global-View.com Guide to Successful Currency Trading (Wiley Trading) (Hardcover)
by Jay Meisler (Author), John Bland (Author), Michael Duane Archer (Author)

List Price: $65.00

Price: $40.95 & this item ships for FREE with Super Saver Shipping. Details
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DealBook® 360 – built to trade the way you do

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 06:58:00 +0000

The straightforward components of DealBook® 360 allow you to place trades in a variety of ways, including simplified trading directly from the charts, basic order tickets or via your customized pricing quoteboard.

With a setup tailored just for you, you can use a basic model to stay focused on the markets, all within a distraction-free trading environment. Many traders do not require all of the capabilities used by professional forex traders, and our software gives you the flexibility you need, no matter what level of trader you are.

Whether you want to watch one currency pair with just a few timeframes or several markets with just few tools, you can easily remove the tools you don't use to trade and keep only the ones you do - allowing you to streamline your experience from placing your forex orders to analyzing market entry and exit points.

Want to learn more about forex trading?

Features for new traders

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 06:53:00 +0000

Our forex trading platform, DealBook® 360, provides you with the tools you need to trade, especially if you are a novice forex trader and want to improve your trading confidence while gaining hands-on experience in the market. As a new forex trader, the number of choices available to you can seem overwhelming, but by choosing to trade with DealBook® 360, you don't have to be overwhelmed by your trading software.

Many of the features are quite user-friendly and can help you get used to trading, whether you need to find your way around a chart or set up an alarm to notify you when the market moves. We offer a wide range of customization tools, which allow you to choose the way you want to navigate and trade the forex market

Roll over the numbers above to learn more about the features of Dealbook® 360 for beginners.

WORLDWIDE LEADERS IN ONLINE CURRENCY TRADING

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 06:31:00 +0000

As a world–leading forex company that has received numerous awards for growth, technology and entrepreneurship, GFT is a truly innovative global foreign exchange provider. Since starting in 1997, we have built a loyal base of customers in more than 120 countries by drawing upon our expertise to provide exceptional software and services for trading forex.

Magical Forex Trading System

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 04:56:00 +0000

Trading Indicator & System Repository

Loads of indicators and systems for you to download.

Trading indicators and systems that will be shared here: Mesa T-Notes, Kannatta, Mesa Bonds, Dollar Trader for Currencies, Sledge Hammer, Crude Extreme, Black Gold, VOLPAT, Maxim, Qtech Bonds, Mesa Software & R-Mesa, Samurai 35, Anticipation IV, Mesa T-Notes, ATS-3200, ATS-6400, Keystone, Qtech Bellies, Natural Gas Offense, Delphi Universal, Impetus SP, Sledge Hammer, Tzar, R-Breaker, RC Success, RC Trend, RC Edge, STC S&P DayTrade, RC Success, Jurik, Kwik*POP (KwikPOP). '

FXConverter - Currency Converter for 164 Currencies

noreply@blogger.com (Arsalan) — Sun, 15 Mar 2009 04:39:00 +0000

FXConverter is a multilingual currency converter for over 164 currencies and 3 metals. It uses daily OANDA Rates®, the touchstone foreign exchange rates used by corporations, tax authorities, auditing firms, and financial institutions. These filtered rates are based on information supplied by leading market data contributors.

Forex Trading History

noreply@blogger.com (Arsalan) — Sat, 14 Mar 2009 19:05:00 +0000

In 1967, a Chicago bank refused a loan in pound sterling ? sought by a college professor by the name of Milton Friedman. He had intended to use the funds to short the British currency. Mr. Friedman had perceived sterling to be priced too high against the dollar, and wanted to sell the currency, then later buy it back to repay the bank after the currency declined, thus pocketing a quick profit. This is what's known as 'Selling Short'. The bank's refusal to grant the loan was due to the Bretton Woods Agreement, established twenty years earlier, which fixed national currencies against the dollar, and set the dollar at a rate of $35 per ounce of gold.

The Bretton Woods Agreement, set up in 1944, aimed at installing international monetary stability by preventing money from fleeing across national borders, and restricting speculation in the world currencies. Prior to the Agreement, the gold exchange standard--prevailing between 1876 and World War I--dominated the international economic system. Under the gold standard, currencies gained a new phase of stability as they were backed by the price of gold. It abolished the arbitrary practice used by kings and dictators of arbitrarily debasing money and triggering inflation.

But the gold standard wasn't without faults. As an economy strengthened, its imports would heavily increase until it ran down the gold reserves required to back its money. This would cause the money supply to shrink, interest rates would rise and economic activity could slow to the extent of recession. Eventually, prices of goods had to hit bottom, and become attractive to other nations, which would rush into buying frenzies that injected the economy with gold until it increased its money supply, thus driving down interest rates and recreating wealth in the economy. Such boom-bust patterns prevailed throughout the gold standard until the outbreak of World War I interrupted trade flows and the free movement of gold. This of course was followed by 'The Great Depression', which arguably was ended by World War II.

After the Wars, the Bretton Woods Agreement was established, whereby participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar and a corresponding rate of gold as needed. Governments were prohibited from devaluing their currencies to their trade advantage and were only allowed to do so for changes of less than 10%. Through the 1950s, the ever-expanding volume of world-wide trade led to massive capital transfers generated by post-war construction. This destabilized foreign exchange rates that had been set up in The Bretton Woods Agreement.

The Bretton Woods Agreement was finally abandoned in 1971, and the gold window was closed on the US dollar. By 1973, currencies of major industrialized nations became more freely floating, mainly controlled by forces of supply and demand acting in the foreign exchange market. Prices were floated daily, with volumes, speed and price volatility increasing through the 1970s These fluctuations gave rise to new financial instruments, market deregulation and trade liberalization.

Beginning in the 1980s, international capital movements accelerated with the explosion of computer technology and high speed communications. The world wide markets became virtual 'local market' through Asian, European and American time zones. Transactions in FOREX zoomed from about $70 billion a day in the 1980s, to more than $1.5 trillion a day two decades later.

THE EUROMARKET
A major catalyst to the increase in foreign exchange trading was the rapid development of the Eurodollar market, where US dollars are deposited in banks outside the US. Similarly, Euro markets are those where assets are deposited outside the currency of origin.

In the 1950s Russia's oil revenues-- all in dollars -- were deposited outside the US in fear of being frozen by US regulators. This gave rise to a vast offshore pool of dollars outside the control of US authorities with the attendant creation of The Eurodollar market. The US government imposed laws to restrict dollar lending to foreigners. Euro markets were particularly attractive because they had far fewer regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euro markets an advantageous center for holding excess liquidity, providing short-term loans and financing imports and exports.

London was the principal offshore market, as it remains even now. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds. This allowed them to maintain their leading position in global finance. London's convenient geographical (Time Zone) location (operating during Asian, Pacific and American markets) is also instrumental in preserving its dominance in the Euromarket.

The History of Currency Trading – Sailing the Seas of Money!

noreply@blogger.com (Arsalan) — Sat, 14 Mar 2009 19:03:00 +0000

There are a lot of things you can do with money. Think about it for a second. In this day and age, money really is the grease that drives our society. We use it to acquire things that will cover our basic needs, and when those are taken care of we start taking care of our wants.

Some of us spend it as soon as we get it, while others hoard it away and pinch every penny. But did you know that you can also trade it?

That’s right, you can trade money for more money, and the funny thing is, you can actually make even more money while doing it. It’s called currency trading, and it can lead you to big money. Really big money.

But where did this new market come from? In order to understand how currency trading came to be one of the fastest ways to get rich quick these days, it is important to take a look at the basics of currency in general.

There are four main versions of currency, and this is how they came to play a part in the economic systems that are alive and well today.

Forex Software

noreply@blogger.com (Arsalan) — Sat, 14 Mar 2009 18:55:00 +0000

Forex Programming

If you need financial programming of any sort for any type of project related to trading, custom trading platforms or integration of custom designed strategies into various brokers trading platforms, submit your project request here. Through its partners, GoForex provides programming for API and FIX protocol in multiple languages as well as MetaTrader Expert Advisor (EA) programming.