FOREX TRADING

EXNESS, Best Standard Forex Broker Asia 2012

2012-03-19T19:11:00.001-07:00

A glance of EXNESS
EXNESS founded in St. Petersburg by a group of like-minded enthusiasts with backgrounds in financial markets and information technology. EXNESS acquires a license for MetaTrader 4 from MetaQuotes Software Corp. Company starts Forex trading and signs its first clients and partners in 2008.
For mored detail see the History of EXNESS

Based on Global Banking & Finance Review Awards 2012, EXNESS awarded the best Best Standard Forex Broker Asia 2012. Its means good reputation of EXNESS as A Forex Broker.

How to Open Account
There are three type of account, Mini Account, Classic Account and Expert Account.
Mini Account Classic Account Expert Account

Minimum deposit	$10	$5,000	$50,000
Leverage	up to 1:2000	up to 1:400	up to 1:100
Deposit via e-currency	Yes	No	No
Deposit via wire transfer	Yes	Yes	Yes
Spread	from 0.7	from 0.3	from 0.1
Commission on CFD	from 0.25%	from 0.2%	from 0.2%
Minimum lot size	0.01 lot (1K)	0.1 lot (10K)	1 lot (100K)
Maximum cumulative volume of positions	No limit	No limit	No limit
Maximum number of positions	50	No limit	No limit
Hedged margin	25 %	25 %	50 %
Place transactions by telephone	No	Yes	Yes
Margin call / Stop out	60% / 30%	30% / 10%	30% / 10%
Access to interbank market	No	Dealer's choice	Automatic
Order execution (FOREX)	Instant execution	Instant execution	Market execution
Orders execution (CFD & Futures)	Market execution	Market execution	Market execution

OPEN ACCOUNT

How to Become IB (Patner)

The EXNESS Partner Program is your chance to start your own turnkey business on the best terms. It’s an opportunity to make money no matter where you are located and regardless of the timing and frequency of your clients’ trades. Every time your client executes a transaction, you receive a commission.

EXNESS uses a percentage system for paying partners, which maximizes our partners’ profits without affecting their clients’ trading costs. Our partners have found that this system benefits them more than anything offered by other companies.

You can choose how you want to work with EXNESS:

EXNESS Partner Commission of a Partner is 30% of the spread on Level 1 clients’ transactions

Premium Partner (Introducing Broker) Increased commission on Level 1 clients’ transactions, commission on Level 2 client’s transactions

Regional Representative Official representative status in your region

White Label Start an internet trading business under your own brand

EXNESS considers every client a partner. Every client can earn a commission of 30% of spread on transactions by clients they introduce to EXNESS. It’s easy – just use your unique agent link to invite new clients.

START BECOME IB BROKER (PARTNER)
REMEMBER! TO BECOME EXNESS PARTNER YOU HAVE TO OPEN ACCOUNT FIRST AND THE YOU GET PARTNER ACCOUNT (AFFILIATE LINK).

OPEN ACCOUNT EXNESS
Source GlobalFX

OCTAFX PROMOTION ;Open Account in OctaFX welcome free 8 USD bonus Without Deposit

2012-02-24T17:23:00.000-08:00

Open Account in OctaFX welcome free 8 USD bonus

1. 1. Open a real micro account, Open a new real micro account and verify it

2. 2. Click "Get Bonus Now!"

3 3. Enjoy y our trading!

Requote-free trading and the fastest execution at OctaFX!

OPEN ACCOUNT NOW GET $8 FREE

Get 8 USD free bonus right away!

Try amazing requote-free trading with OctaFX and get DOUBLE bonus back. Open a real account today and get 8 USD free bonus

OPEN ACCOUNT NOW

Source Globalfx.us

Open Micro Account Get $12 Welcome Bonus Without Deposit

2012-02-24T17:21:00.000-08:00

NANO4X is one of New Forex Broker was founded in 2010. Nano4X has Head office in London United Kingdom.

Nano4x is an FX provider to retail, professional and institutional investors looking to trade in international financial markets.

Our management team has a great experience in the financial industry and bring its depth of knowledge that enables it to use the latest technologies in order to provide the best services to clients.

The company is founded to provide active online traders and investors with excellent trading terms, automatic execution with no delays and no system failures, and other benefits including non-trading operations such as deposit and withdrawal operations.

Nano4x Promotion;

WELCOME BONUS $12

In 2012 Nano4x offers welcome bonus $12 to every client

Try out trading advantages on the Real account without even making a deposit! Start trading right now! and you can withdraw your profit anytime!

Follow these steps to receive FREE $12 on your trading account:

1. Register and open trading account

Note: We kindly ask you to fill in only actual personal and contact data. Wrong and uncertain data can be the reason for refusal to credit the bonus and to withdraw profit.

2. Confirm email address using the link contained in the received "registration confirmation" email.

3. Upload copy of ID containing your photo (maximum file size is 300kB) on the "Personal data" page and wait for confirmation. Documents are confirmed by our staff within 24 hours.

4. Click on "Get welcome bonus" button on the "Summary" page. Welcome Bonus $12 will be credited on your trading account within several seconds.

Note:

You can trade without making a deposit on "Micro" account only. If you have received welcome bonus on "Standard" account you must fund your account at the total amount of $100

For example: if you have bonus $12 on your "Standard" account you must fund it at $88 or more to start trading.

5. Leave a feedback on the wall on the Company`s official web page on the Facebook (www.facebook.com) containing the text: Account № ___ welcome bonus $12 was credited.

Nano4x reserves the right to cancel bonus and profits for the client did not leave such feedback.

Withdrawal conditions.

1. The withdrawal is processed to verified payment details only. When account is funded at any amount the system automatically saves and verifies Webmoney or Liberty Reserve purse.

Note: If you have not funded your account, you need to fund it at any amount from $2 , the system automatically saves the number of your purse and you can apply for a withdrawal.

2. The withdrawal from bonus accounts is processed to Webmoney and Liberty reserve only.

Contact support to apply for a withdrawal to Bank account.

3. There is a fee for the first withdrawal application (other withdrawals are without any fee):

- $24 on "Micro" account

- $17 on "Standard" account

Note:

a) "Micro" account is automatically changed to "Standard" account type when balance is more than $100.

Example: You get 12 USD to the "Micro" account. You need to earn 88 USD or recharge up to 100 USD, and the account will be changed to "Standard"

b) On your account there should be the sum of the withdrawal + fee for the first withdrawal application, otherwise the system will tell you that you do not have enough money.

4. Minimum amount of completed trades to send the first withdrawal request:

- 15 trades on "Micro" account

- 10 trades on "Standard" account

5. Mobile phone number must be verified. Verification code is send to specified mobile phone number during the first withdrawal application.

6. Leave a feedback on the wall on the Company`s official web page on the Facebook (www.facebook.com) containing the text: Account № ___ withdrawal -amount __ $- completed.

Nano4x reserves the right to withdraw profits for the client only after p. 6 is done

7. The first withdrawal request is processed within 48 hours

8. Before the first withdrawal the account is checked for compliance with p. 8 of "Welcome bonus terms"

CREDITING

NANO4X offers crediting of trading accounts. A client can get additional margin for trading to his standard available trading leverage. A client can get a loan on every trading account he has after his account is funded.

How to get credit on trading account?

1. Open account HERE

2. Fund account

3. Send a request by clicking on "Get credit" and choose a required amount in percents (from 1% to 100%).

4. Your request will be considered within 24 hours. Status of your request you can see on this page.

5. If your request is approved you will see credit on your trading account in Metatrader 4.

Crediting terms:

1. Maximum credit amount is 100% from the initial deposit on the account.

2. A client can remove credit from his account manually by clicking on "remove" in the credit column next to your account number on this page.

3. A credit is removed from account when the equity of the account is less or equal to the amount of credit.

4. The credit can`t increase the Balance of the trading account. In the case of such situation the credit will be reduced to the amount of balance automatically.

Note:

Credit is a way to increase the trading leverage and to perform more trading operations on the account. It can be very helpful for intraday trading strategies aimed at committing a large number of short-term trading operations on the account.

Credit is not used to maintain a losing position open when the loss is more than client`s equity on the account.

With the use of 100% credit actually stop out of the account is equal to 0% and in case of loss all funds may be lost.

So what you WAITING FOR? OPEN ACCOUNT NOW BEFORE PROMO END and GET WELCOME BONUS $12 WITHOUT DEPOSIT or if you have no money to trade you can choose Crediting option by requesting get credit.

Source GLOBALFX.US

How to Choose a Forex Broker

2009-01-08T17:12:00.003-08:00

With so many different choices out there, how does a Forex "newbie" pick a broker? Chances are most new traders have no idea on where to start - and that's okay! We're here to help! We have put together a simple three step process to help you find a broker that YOU think will best suit YOUR needs. You might be thinking now, "Three steps? That's it?" Yesssiirrrr!
In the first step, you will go through some of the main questions you need ask yourself when reviewing different brokers. Then you will take a look at different brokers and their available features. We have put together a comparison guide by taking some of the most frequently asked questions across the internet, and surveyed some of the most frequently asked about brokers out there, so that you don't have to.
With this guide, you can narrow your choices down and take the final step of talking with different brokers and demo trading on different platforms. Simple, right? Let's begin...

Step 1: Do your research

Before comparing brokers, do you know what to look for? No? Well, here are a few of the main questions you should ask yourself:

Is this broker registered with any regulating authorities? Check to see if your broker of choice is registered with the National Futures Association (NFA) or Commodity Futures Trading Commission (CFTC) if they're based in the US. If the broker is based in the United Kingdom, check with the Financial Service Authority (FSA). If the broker isn't registered with any of these or any other recognized regulating firm, then you may want to think twice before signing up with them.
Dealing Desk or Non-Dealing Desk broker? Does the broker offer fixed or non-fixed spreads? How wide are the spreads? These questions are more significant to those traders who like to take quick profits on a few pips. Large and/or variable spreads can cut into the profits of this type of trading strategy.
How much or how little leverage will a broker give you? We highly recommend you review "Leverage the Killer"before deciding on how much leverage would be suitable for your trading style. The phrase, "Less is More," can save every newbie
Of course, you’re not going to start trading with real money right away, right? Well, when you do having a winning strategy and you are ready to trade live; knowing how much risk capital you have to start with makes a big difference. If you have $2000 or less to start with then you probably want to start trading "micro" lots. Not every broker has this feature.
Does this broker credit or debit daily rollover interest? Some brokers either do both, deduct interest, or neither. This information is important to traders who hold positions overnight.
Does this broker over premium services such as charting, news feeds, and market commentary? How important are premium services to my trading?

Step 2: Compare brokers

Let's not beat around the bush, now you need go to Broker Comparison Guide.

Step 3: Open demo accounts and ask questions.

Pick at least two brokers that fits most of your criteria and open up demo accounts. Trade in different market environments. Learn all the different features of each trading platform. If you have questions, don't be afraid to ask. Many brokers have excellent customer service support and would be happy to answer your questions.
Most demo trading platforms are very similar to their live counterparts, but not exactly the same. There may be a difference in speed of execution, slippage, and platform reliability (most of the time live accounts are more reliable than demo accounts). When you do have your strategy down and you are ready to move to a live account, start off small, test the waters, and see if this particular broker will suit your trading needs.
Source Babypips
See Some Forex Brokers

Marketiva

Master Forex

Etoro

FOREXYARD

InstaForex

AVAFX

Understanding FOREX TRADING Terms

2009-01-08T14:58:00.002-08:00

Forex Trading Glossary of Terms

A
Accrual: The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals, over the period of each deal.
Actualize: The underlying assets or instruments which are traded in the cash market.
Adjustable Peg: Term for an exchange rate regime where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency, often the dollar or French Franc, but where the rate may be changed from time to time. This was the basis of the Bretton Woods system. See peg, and crawling peg.
Adjustment: Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.
Agent Bank: (1) A bank acting for a foreign bank. (2) In the Euro market - the agent bank is the one appointed by the other banks in the syndicate to handle the administration of the loan.
Aggregate Demand: Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and and firms in other countries for good and services.
Aggregate Risk: Size of exposure of a bank to a single customer for both spot and forward contracts.
Aggregate Supply: Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.
Agio: Difference in the value between currencies. Also used to describe percentage charges for conversion from paper money into cash, or from a weak into a strong currency.
Appreciation: Describes a currency strengthening in response to market demand rather than by official action.
Arbitrage: The simultaneous purchase and sale on different markets, of the same or equivalent financial instruments to profit from price or currency differentials. The exchange rate differential or Swap points. May be derived from Deposit Rate differentials.
Arbitrage Channel: The range of prices within which there will be no possibility to arbitrage between the cash and futures market.
Around: Used in quoting forward "premium / discount". "Five-five around" would mean five point on either side of the present spot value.
Asset Allocation: Dividing instrument funds among markets to achieve diversification or maximum return.
Ask: The price at which the currency or instrument is offered.
Asset: In the context of foreign exchange is the right to receive from a counterparty an amount of currency either in respect of a balance sheet asset (e.g. a loan) or at a specified future date in respect of an unmatched forward Forward or spot deal.
At Best: An instruction given to a dealer to buy or sell at the best rate that can be obtained.
At or Better: An order to deal at a specific rate or better.
Authorized Dealer: A financial institution or bank authorized to deal in foreign exchange.

B
Back Office: Settlement and related processes.
Backwardation: Term referring to the amount that the spot price exceeds the forward price.
Balance of Payments: A systematic record of the economic transactions during a given period for a country. (1) The term is often used to mean either: (i) balance of payments on "current account"; or (ii) the current account plus certain long term capital movements. (2) The combination of the trade balance, current balance, capital account and invisible balance, which together make up the balance of payments total. Prolonged balance of payment deficits tend to lead to restrictions in capital transfers, and or decline in currency values.
Band: The range in which a currency is permitted to move. A system used in the ERM.
Bank Line: Line of credit granted by a bank to a customer, also known as a "line".
Bank Rate: The rate at which a central bank is prepared to lend money to its domestic banking system.
Base Currency: The currency in which the operating results of the bank or institution are reported.
Basis: The difference between the cash price and futures price.
Basis Point: One per cent of one per cent.
Basis Trading: Taking opposite positions in the cash and futures market with the intention of profiting from favorable movements in the basis.
Basket: A group of currencies normally used to manage the exchange rate of a currency. Sometimes referred to as a unit of account.
Bear Market: A prolonged period of generally falling prices.
Bear: An investor who believes that prices are going to fall.
Bid: The price at which a buyer has offered to purchase the currency or instrument.
Book: The summary of currency positions held by a dealer, desk, or room. A total of the assets and liabilities. If the average maturity of the book is less than that of the assets, the bank is said to be running a short and open book. Passing the Book refers normally to transferring the trading of the Banks positions to another office at the close of the day, e.g. from London to New York.
Bretton Woods: The site of the conference which in 1944 led to the establishment of the post war foreign exchange system that remained intact until the early 1970s. The conference resulted in the formation of the IMF. The system fixed currencies in a fixed exchange rate system with 1% fluctuations of the currency to gold or the dollar.
Broker: An agent, who executes orders to buy and sell currencies and related instruments either for a commission or on a spread. Brokers are agents working on commission and not principals or agents acting on their own account. In the foreign exchange market brokers tend to act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties. There are four or five major global brokers operating through subsidiaries affiliates and partners in many countries.
Bull Market: A prolonged period of generally rising prices.
Bull: An investor who believes that prices are going to rise.
Bundesbank: Central Bank of Germany.
Buying Rate: Rate at which the market and a market maker in particular is willing to buy the currency. Sometimes called bid rate.

C
Cable: A term used in the foreign exchange market for the US Dollar / British Pound rate.
Capital Risk: The risk arising from a bank having to pay to the counter party with out knowing whether the other party will or is able to meet its side of the bargain. see Herstatt.
Carry: The interest cost of financing securities or other financial instruments held.
Cash Delivery: Same day settlement.
Cash Market: The market in the actual financial instrument on which a futures or options contract is based.
Cash: Cash normally refers to an exchange transaction contracted for settlement on the day the deal is struck. This term is mainly used in the North American markets and those countries which rely for foreign exchange services on these markets because of time zone preference i.e. Latin America. In Europe and Asia, cash transactions are often referred to as value same day deals.
Cash and Carry: The buying of an asset today and selling a future contract on the asset. A reverse cash and carry is possible by selling an asset and buying a future.
Cash Settlement: A procedure for settling futures contract where the cash difference between the future and the market price is paid instead of physical delivery.
Central Bank: A bank which is responsible for controlling a countries monetary policy. It is normally the issuing bank and controls bank licensing, and any foreign exchange control regime.
Central Rate: Exchange rates against the ECU adopted for each currency within the EMS. Currencies have limited movement from the central rate according to the relevant band.
Chartist: An individual who studies graphs and charts of historic data to find trends and predict trend reversals which include the observance of certain patterns and characteristics of the charts to derive resistance levels, head and shoulders patterns, and double bottom or double top patterns which are thought to indicate trend reversals.
Clean Float: An exchange rate that is not materially effected by official intervention.
Closed Position: A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency.
Commission: The fee that a broker may charge clients for dealing on their behalf.
Confirmation: A memorandum to the other party describing all the relevant details of the transaction.
Contract: An agreement to buy or sell a specified amount of a particular currency or option for a specified month in the future (See Futures contract).
Conversion Account: A general ledger account representing the uncovered position in a particular currency. Such accounts are referred to as Position Accounts.
Conversion: The process by which an asset or liability denominated in one currency is exchanged for an asset or liability denominated in another currency.
Conversion Arbitrage: A transaction where the asset is purchased and buys a put option and sells a call option on the asset purchased, each option having the same exercise price and expiry.
Convertible Currency: A currency that can be freely exchanged for another currency (and or gold) without special authorization from the central bank.
Copey: Slang for the Danish krone.
Correspondent Bank: The foreign banks representative who regularly performs services for a bank which has no branch in the relevant centre, e.g. to facilitate the transfer of funds. In the US this often occurs domestically due to inter state banking restrictions.
Counterparty: The other organisation or party with whom the exchange deal is being transacted.
Countervalue: Where a person buys a currency against the dollar it is the dollar value of the transaction.
Country Risk: The risk attached to a borrower by virtue of its location in a particular country. This involves examination of economic, political and geographical factors. Various organisations generate country risk tables.
Cover: (1) To take out a forward foreign exchange contract. (2) To close out a short position by buying currency or securities which have been sold.
Covered Arbitrage: Arbitrage between financial instruments denominated in different currencies, using forward cover to eliminate exchange risk.
Covered Margin: The interest rate margin between two instruments denominated in different currencies after taking account of the cost of forward cover.
Crawling Peg: A method of exchange rate adjustment; the rate is fixed / pegged, but adjusted at certain intervals in line with certain economic or market indicators.
Credit Risk: The risk that a debtor will not repay; more specifically the risk that the counterparty does not have the currency promised to be delivered.
Cross Deal: A foreign exchange deal entered into involving two currencies, neither of which is the base currency.
Cross Rates: Rates between two currencies, neither of which is the US Dollar.
Current Account: The net balance of a country's international payment arising from exports and imports together with unilateral transfers such as aid and migrant remittances. It excludes capital flows.

D
Day Trader: Speculators who take positions in commodities which are then liquidated prior to the close of the same trading day.
Deal Date: The date on which a transaction is agreed upon.
Deal Ticket: The primary method of recording the basic information relating to a transaction.
Dealer: An individual or firm acting as a principal, rather than as an agent, in the purchase and / or sale of securities. Dealers trade for their own account and risk.
Deflator: Difference between real and nominal Gross National Product, which is equivalent to the overall inflation rate.
Delivery Date: The date of maturity of the contract, when the exchange of the currencies is made This date is more commonly known as the value date in the FX or Money markets.
Delivery Risk: A term to describe when a counterparty will not be able to complete his side of the deal, although willing to do so.
Depreciation: A fall in the value of a currency due to market forces rather than due to official action.
Desk: Term referring to a group dealing with a specific currency or currencies.
Details: All the information required to finalize a foreign exchange transaction, i.e. name, rate, dates, and point of delivery.
Devaluation: Deliberate downward adjustment of a currency against its fixed parities or bands, normally by formal announcement.
Direct Quotation: Quoting in fixed units of foreign currency against variable amounts of the domestic currency.
Dirty Float: Floating a currency when the rate is controlled by intervention by the monetary authorities.

E
Easing: Modest decline in price.
Economic Indicator: A statistics which indicates current economic growth rates and trends such as retail sales and employment.
ECU: European Currency Unit.
EDI: Electronic Data Interchange.
Effective Exchange Rate: An attempt to summarize the effects on a country's trade balance of its currency's changes against other currencies.
EFT: Electronic Fund Transfer.
EMS: European Monetary System.
European Monetary System: A system designed to stabilize if not eliminate exchange risk between member states of the EMS as part of the economic convergence policy of the EU. It permits currencies to move in a measured fashion (divergence indicator) within agreed bands (the parity grid) with respect to the ECU and consequently with each other.
Exchange Control: A system of controlling inflows and out flows of foreign exchange, devices include licensing multiple currencies, quotas, auctions, limits, levies and surcharges.
Exotic: A less broadly traded currency.
Exposure: (i) Net working capital - The current assets in a foreign currency minus current liabilities in the currency; (ii) Net financial method The current assets in a foreign currency minus current liabilities and long term debt in the currency; (iii) Monetary / non-monetary method - Monetary assets and liabilities in the foreign currency are valued at present exchange rates, while non-monetary items are entered at the relevant historic rates.

F
Fast Market: Rapid movement in a market caused by strong interest by buyers and / or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.
Fed Fund Rate: The interest rate on Fed funds. This is a closely watched short term interest rate as it signals the Feds view as to the state of the money supply.
Fed: The United States Federal Reserve. Federal Deposit Insurance Corporation Membership is compulsory for Federal Reserve members. The corporation had deep involvement in the Savings and Loans crisis of the late 80s.
Federal Reserve System: The central banking system of the US comprising 12 Federal Reserve Banks controlling 12 districts under the Federal Reserve Board. Membership of the Fed is compulsory for banks chartered by the Comptroller of Currency and optional for state chartered banks.
Fill or Kill: An order which must be entered for trading, normally in a pit three times, if not filled is immediately canceled.
Fisher Effect: The relationship that exists between interest rates and exchange rate movements, so that in an ideal situation interest rate differentials would be exactly off set by exchange rate movements. See interest rate parity.
Fixed Exchange Rate: Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band.
Flexible Exchange Rate: Exchange rates with a fixed parity against one or more currencies with frequent revaluation's. A form of managed float.
Floating Exchange Rate: An exchange rate where the value is determined by market forces. Even floating currencies are subject to intervention by the monetary authorities. When such activity is frequent the float is known as a dirty float.
FOMC: Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.
Foreign Exchange: The purchase or sale of a currency against sale or purchase of another.
Forex: Foreign Exchange.
Forex Club: Groups formed in the major financial centers to encourage educational and social contacts between foreign exchange dealers, under the umbrella of Association Cambiste International.
Forward Margins: Discounts or premiums between spot rate and the forward rate for a currency. Normally quoted in points.
Forward Operations: Foreign exchange transactions, on which the fulfillment of the mutual delivery obligations is made on a date later than the second business day after the transaction was concluded.
Forward Outright: A commitment to buy or sell a currency for delivery on a specified future date or period. The price is quoted as the Spot rate minus or plus the forward points for the chosen period.
Forward Rate: Forward rates are quoted in terms of forward points, which represents the difference between the forward and spot rates. In order to obtain the forward rate from the actual exchange rate the forward points are either added or subtracted from the exchange rate. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction. The base currency with the higher interest rate is said to be at a discount to the lower interest rate quoted currency in the forward market. Therefor the forward points are subtracted from the spot rate. Similarly, the lower interest rate base currency is said to be at a premium, and the forward points are added to the spot rate to obtain the forward rate.
Free Reserves: Total reserves held by a bank less the reserves required by the authority.
Front Office: The activities carried out by the dealer, normal trading activities.
Fundamentals: The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
FX: Foreign Exchange.

G
G7: The seven leading industrial countries, being US, Germany, Japan, France, UK, Canada, Italy.
G10: G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.
Gap: A mismatch between maturities and cash flows in a bank or individual dealers position book. Gap exposure is effectively interest rate exposure.
Going Long: The purchase of a stock, commodity, or currency for investment or speculation.
Going Short: The selling of a currency or instrument not owned by the seller.
Gold Standard: The original system for supporting the value of currency issued. The was that where the price of gold is fixed against the currency it means that the increased supply of gold does not lower the price of gold but causes prices to increase.
Good Until Canceled: An instruction to a broker that unlike normal practice the order does not expire at the end of the trading day, although normally terminates at the end of the trading month.
Grid: Fixed margin within which exchange rates are allowed to fluctuate.
Gross Domestic Product: Total value of a country's output, income or expenditure produced within the country's physical borders.
Gross National Product: Gross domestic product plus "factor income from abroad" - income earned from investment or work abroad.

H
Hard Currency: A currency whose value is expected to remain stable or increase in terms of other currencies.
Head and Shoulders: A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate a that a further major fall is imminent. The breach of the neckline is the indication to sell.
Hedge: The purchase or sale of options or futures contracts as a temporary substitute for a transaction to be made at a later date. Usually it involves opposite positions in the cash or futures or options market.
Hit the Bid: Acceptance of purchasing at the offer or selling at the bid.

I
IMF: International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term and encourage liberalization of exchange rates. The IMF supports countries with balance of payments problems with the provision of loans.
IMM: International Monetary Market part of the Chicago Mercantile Exchange that lists a number of currency and financial futures Implied volatilityA measurement of the market's expected price range of the underlying currency futures based on the traded option premiums.
Implied Rates: The interest rate determined by calculating the difference between spot and forward rates.
Indicative Quote: A market-maker's price which is not firm.
Inflation: Continued rise in the general price level in conjunction with a related drop in purchasing power. Sometimes referred to as an excessive movement in such price levels.
Initial Margin: The margin required by a Foreign Exchange firm to initiate the buying or selling of a determined amount of currency.
Inter-Bank Rates: The bid and offer rates at which international banks place deposits with each other. The basis of the Interbank market.
Interest Arbitrage: Switching into another currency by buying spot and selling forward, and investing proceeds in order to obtain a higher interest yield. Interest arbitrage can be inward, i.e. from foreign currency into the local one or outward, i.e. from the local currency to the foreign one. Sometimes better results can be obtained by not selling the forward interest amount. In that case some treat it as no longer being a complete arbitrage, as if the exchange rate moved against the arbitrageur, the profit on the transaction may create a loss.
Interest Parity: One currency is in interest parity with another when the difference in the interest rates is equalized by the forward exchange margins. For instance, if the operative interest rate in Japan is 3% and in the UK 6%, a forward premium of 3% for the Japanese Yen against sterling would bring about interest parity.
Interest Rate Swaps: An agreement to swap interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. It is the interest cash flows be they payments or receipts that are exchanged.
Internationalization: Referring to a currency that is widely used to denominate trade and credit transactions by non residents of the country of issue. US dollar and Swiss Franc are examples.
Intervention: Action by a central bank to effect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.

K
Kiwi: Slang for the New Zealand dollar.

L
Leading Indicators: Statistic that are considered to precede changes in economic growth rates and total business activity, e.g. factory orders.
Liability: In terms of foreign exchange, the obligation to deliver to a counterparty an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un-matured forward or spot transaction.
Limit Order: An order to buy or sell a specified amount of a currency at a specified price or better.
Liquidation: Any transaction that offsets or closes out a previously established position.
Liquidity: The ability of a market to accept large transactions.

M
Maintenance Margin: The minimum margin which an investor must keep on deposit in a margin account at all times in respect of each open contract.
Make a Market: A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.
Managed Float: When the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a required direction.
Margin Call: A demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse future price movements.
Margin: For currencies a deposit made to the forex firm on establishing a futures position account.
Mark to Market: The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.
Market Maker: A market maker is a person or firm authorized to create and maintain a market in an instrument.
Market Order: An order to buy or sell a financial instrument immediately at the best possible price.
Micro Economics: The study of economic activity as it applies to individual firms or well defined small groups of individuals or economic sectors.
Mid-Price or Middle Rate: The price half-way between the two prices, or the average of both buying and selling prices offered by the market makers.
Minimum Price Fluctuation: The smallest increment of market price movement possible in a given futures contract.
Monetary Base: Currency in circulation plus banks' required and excess deposits at the central bank.
Moving Average: A way of smoothing a set of data, widely used in price time series.

N
Net Position: The amount of currency bought or sold which have not yet been offset by opposite transactions.

O
Odd Lot: A non standard amount for a transaction.
Offer: The price at which a seller is willing to sell. The best offer is the lowest such price available.
Offset: The closing-out or liquidation of a futures position.
Off-shore: The operations of a financial institution which although physically located in a country, has little connection with that country's financial systems. In certain countries a bank is not permitted to do business in the domestic market but only with other foreign banks. This is known as an off shore banking unit.
Overnight Limit: Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmonitored exposures.
Overnight: A deal from today until the next business day.

P
Parity: (1) Foreign exchange dealer's slang for your price is the correct market price. (2) Official rates in terms of SDR or other pegging currency.
Parities: The value of one currency in terms of another.
Pegged: A system where a currency moves in line with another currency, some pegs are strict while others have bands of movement.
Pip: Minimum fluctuation or smallest increment of price movement.
Position: The netted total commitments in a given currency. A position can be either flat or square (no exposure), long, (more currency bought than sold), or short (more currency sold than bought).
Profit Taking: The unwinding of a position to realize profits.

Q
Quote: An indicative price. The price quoted for information purposes but not to deal.

R
Rally: A recovery in price after a period of decline.
Range: The difference between the highest and lowest price of a future recorded during a given trading session.
Rate: (1) The price of one currency in terms of another, normally against USD. (2) Assessment of the credit worthiness of an institution.
Reaction: A decline in prices following an advance.
Reciprocal Currency: A currency that is normally quoted as dollars per unit of currency rather than the normal quote method of units of currency per dollar. Sterling is the most common example.
Resistance Point or Level: A price recognized by technical analysts as a price which is likely to result in a rebound but if broken through is likely to result in a significant price movement.
Revaluation: Increase in the exchange rate of a currency as a result of official action.
Revaluation Rate: The rate for any period or currency which is used to revalue a position or book.
Risk Management: The identification and acceptance or offsetting of the risks threatening the profitability or existence of an organisation. With respect to foreign exchange involves among others consideration of market, sovereign, country, transfer, delivery, credit, and counterparty risk.
Risk Position: An asset or liability, which is exposed to fluctuations in value through changes in exchange rates or interest rates.
Rollover: An overnight swap, specifically the next business day against the following business day (also called Tomorrow Next, abbreviated to Tom-Next).
Round Trip: Buying and selling of a specified amount of currency.

S
Same Day Transaction: A transaction that matures on the day the transaction takes place.
Selling Rate: Rate at which a bank is willing to sell foreign currency.
Settlement Date: The date by which an executed order must be settled by the transference of instruments or currencies and funds between buyer and seller.
Settlement Risk: Risk associated with the non settlement of the transaction by the counter party.
Short Sale: The sale of a specified amount of currency not owned by the seller at the time of the trade. Short sales are usually made in expectation of a decline in the price.
Short-term Interest Rates: Normally the 90 day rate.
Sidelined: A major currency that is lightly traded due to major market interest being in another currency pair.
Soft Market: More potential sellers than buyers, which creates an environment where rapid price falls are likely.
Spot: (1) The most common foreign exchange transaction. (2) Spot or Spot date refers to the spot transaction value date that requires settlement within two business days, subject to value date calculation.
Spot Next: The overnight swap from the spot date to the next business day.
Spot Price / Rate: The price at which the currency is currently trading in the spot market.
Spread: (1) The difference between the bid and ask price of a currency. (2) The difference between the price of two related futures contracts.
Square: Purchase and sales are in balance and thus the dealer has no open position.
Squawk Box: A speaker connected to a phone often used in broker trading desks.
Squeeze: Action by a central bank to reduce supply in order to increase the price of money.
Stable Market: An active market which can absorb large sale or purchases of currency without major moves.
Standard: A term referring to certain normal amounts and maturities for dealing.
Sterilization: Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market.
Sterling: British pound, otherwise known as cable.
Stocky: Market slang for Swedish Krona.
Stop Loss Order: Order given to ensure that, should a currency weaken by a certain percentage, a short position will be covered even though this involves taking a loss. Realize profit orders are less common.
Support Levels: When an exchange rate depreciates or appreciates to a level where (1) Technical analysis techniques suggest that the currency will rebound, or not go below; (2) the monetary authorities intervene to stop any further down ward movement. See resistance point.
Swap Price: A price as a differential between two dates of the swap.
Swap: The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.
Swissy: Market slang for Swiss Franc.

T
Technical Correction: An adjustment to price not based on market sentiment but technical factors such as volume and charting.
Thin Market: A market in which trading volume is low and in which consequently bid and ask quotes are wide and the liquidity of the instrument traded is low.
Thursday / Friday Dollars: A US foreign exchange technicality. If a foreign bank buys dollars on Tuesday for Thursday delivery. If the bank leaves the funds overnight and transfers them on Friday by means of a clearing house cheque then clearance is not until Monday, the next working day. Higher interest rates for this period are thus available.
Tick: A minimum change in price, up or down.
Today / Tomorrow: Simultaneous buying of a currency for delivery the following day and selling for the spot day, or vice versa. Also referred to as overnight.
Tomorrow Next (Tom Next): Simultaneous buying of a currency for delivery the following day and selling for the spot day or vice versa.
Trade Date: The date on which a trade occurs.
Tradeable Amount: Smallest transaction size acceptable.
Transaction Date: The date on which a trade occurs.
Transaction: The buying or selling of currencies resulting from the execution of an order.
Two Tier Market: A dual exchange rate system where normally only one rate is open to market pressure, e.g. South Africa.
Two-Way Quotation: When a dealer quotes both buying and selling rates for foreign exchange transactions.

U
Uncovered: Another term for an open position.
Under-Valuation: An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.
Up Tick: A transaction executed at a price greater than the previous transaction.

V
Value Date: For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country(ies) of the foreign currency(ies). The value date then moves forward a day.
Value Spot: Normally settlement for two working days from today. See value date.
Volatility: A measure of the amount by which an asset price is expected to fluctuate over a given period.
Vostro Account: A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.

W
Wash Trade: A matched deal which produces neither a gain nor a loss.
Whipsaw: Term for where a trader takes a position, then has to move against it triggering stop loss limits and liquidation of positions, then having to move in the original direction. Normally occurs in volatile markets.
Working Day: A day on which the banks in a currency's principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both financial centre's are open for business (all relevant currency centers in the case of a cross are open).

Forex In Islamic Prespective

2009-01-08T13:50:00.002-08:00

1. The Basic Exchange Contracts

There is a general consensus among Islamic jurists on the view that currencies of different countries can be exchanged on a spot basis at a rate different from unity, since currencies of different countries are distinct entities with different values or intrinsic worth, and purchasing power. There also seems to be a general agreement among a majority of scholars on the view that currency exchange on a forward basis is not permissible, that is, when the rights and obligations of both parties relate to a future date. However, there is considerable difference of opinion among jurists when the rights of either one of the parties, which is same as obligation of the counterparty, is deferred to a future date.
To elaborate, let us consider the example of two individuals A and B who belong to two different countries, India and US respectively. A intends to sell Indian rupees and buy U.S dollars. The converse is true for B. The rupee-dollar exchange rate agreed upon is 1:20 and the transaction involves buying and selling of $50. The first situation is that A makes a spot payment of Rs1000 to B and accepts payment of $50 from B. The transaction is settled on a spot basis from both ends. Such transactions are valid and Islamically permissible. There are no two opinions about the same. The second possibility is that settlement of the transaction from both ends is deferred to a future date, say after six months from now. This implies that both A and B would make and accept payment of Rs1000 or $50, as the case may be, after six months. The predominant view is that such a contract is not Islamically permissible. A minority view considers it permissible. The third scenario is that the transaction is partly settled from one end only. For example, A makes a payment of Rs1000 now to B in lieu of a promise by B to pay $50 to him after six months. Alternatively, A accepts $50 now from B and promises to pay Rs1000 to him after six months. There are diametrically opposite views on the permissibility of such contracts which amount to bai-salam in currencies. The purpose of this paper is to present a comprehensive analysis of various arguments in support and against the permissibility of these basic contracts involving currencies. The first form of contracting involving exchange of countervalues on a spot basis is beyond any kind of controversy. Permissibility or otherwise of the second type of contract in which delivery of one of the countervalues is deferred to a future date, is generally discussed in the framework of riba prohibition. Accordingly we discuss this contract in detail in section 2 dealing with the issue of prohibition of riba. Permissibility of the third form of contract in which delivery of both the countervalues is deferred, is generally discussed within the framework of reducing risk and uncertainty or gharar involved in such contracts. This, therefore, is the central theme of section 3 which deals with the issue of gharar. Section 4 attempts a holistic view of the Sharia relates issues as also the economic significance of the basic forms of contracting in the currency market.

2. The Issue of Riba Prohibition

The divergence of views1 on the permissibility or otherwise of exchange contracts in currencies can be traced primarily to the issue of riba prohibition.
The need to eliminate riba in all forms of exchange contracts is of utmost importance. Riba in its Sharia context is generally defined2 as an unlawful gain derived from the quantitative inequality of the countervalues in any transaction purporting to effect the exchange of two or more species (anwa), which belong to the same genus (jins) and are governed by the same efficient cause (illa). Riba is generally classified into riba al-fadl (excess) and riba al-nasia (deferment) which denote an unlawful advantage by way of excess or deferment respectively. Prohibition of the former is achieved by a stipulation that the rate of exchange between the objects is unity and no gain is permissible to either party. The latter kind of riba is prohibited by disallowing deferred settlement and ensuring that the transaction is settled on the spot by both the parties. Another form of riba is called riba al-jahiliyya or pre-Islamic riba which surfaces when the lender asks the borrower on the maturity date if the latter would settle the debt or increase the same. Increase is accompanied by charging interest on the amount initially borrowed.
The prohibition of riba in the exchange of currencies belonging to different countries requires a process of analogy (qiyas). And in any such exercise involving analogy (qiyas), efficient cause (illa) plays an extremely important role. It is a common efficient cause (illa), which connects the object of the analogy with its subject, in the exercise of analogical reasoning. The appropriate efficient cause (illa) in case of exchange contracts has been variously defined by the major schools of Fiqh. This difference is reflected in the analogous reasoning for paper currencies belonging to different countries.
A question of considerable significance in the process of analogous reasoning relates to the comparison between paper currencies with gold and silver. In the early days of Islam, gold and silver performed all the functions of money (thaman). Currencies were made of gold and silver with a known intrinsic value (quantum of gold or silver contained in them). Such currencies are described as thaman haqiqi, or naqdain in Fiqh literature. These were universally acceptable as principal means of exchange, accounting for a large chunk of transactions. Many other commodities, such as, various inferior metals also served as means of exchange, but with limited acceptability. These are described as fals in Fiqh literature. These are also known as thaman istalahi because of the fact that their acceptability stems not from their intrinsic worth, but due to the status accorded by the society during a particular period of time. The above two forms of currencies have been treated very differently by early Islamic jurists from the standpoint of permissibility of contracts involving them. The issue that needs to be resolved is whether the present age paper currencies fall under the former category or the latter. One view is that these should be treated at par with thaman haqiqi or gold and silver, since these serve as the principal means of exchange and unit of account like the latter. Hence, by analogous reasoning, all the Sharia-related norms and injunctions applicable to thaman haqiqi should also be applicable to paper currency. Exchange of thaman haqiqi is known as bai-sarf, and hence, the transactions in paper currencies should be governed by the Sharia rules relevant for bai-sarf. The contrary view asserts that paper currencies should be treated in a manner similar to fals or thaman istalahi because of the fact that their face value is different from their intrinsic worth. Their acceptability stems from their legal status within the domestic country or global economic importance (as in case of US dollars, for instance).
More Comprehensive see ISLAMIC FOREX TRADING by Dr Mohammed Obaidullah

Why trade in foreign currency exchange market?

2009-01-08T13:30:00.002-08:00

Why trade Forex instead of stocks, futures, commodities, or options? Why more and more people nowadays started trading Forex at home? Perhaps the list of advantages in Forex trading has the answer.
In this chapter of Forex 101 Classroom, we will take a look on advantages in Forex trading.

Advantages in Forex currency

trading

Equal Prospective in Rising or Falling Market Trend
There is no structural bias to the market and there are no restrictions on short selling in FX market. Trading in Forex gives you an equal prospective in rising and falling market.
As trades are always done in pair of currency pairs, Forex traders can always find chance to make money in anytime, regardless on the fall or rise period of one single country currency.
Trade Forex 24 hours a day
Forex market never sleeps. In Forex trading, you do not need to wait the market to open, you can always response to world latest movement and news immediately.
Every Sunday 5.00pm in New York, Forex market starts its week from Sydney, followed by Tokyo, Singapore, Hong Kong, London, and New York. In Forex tradng, you can always response to the market trend a lot faster than in any other trading market.

Also, with the flexibility of Forex market trading time, you can work on your trade in Forex during your free time. This means you can start small and work as part time trader before going full time on FX trading.
High Leverage Margin
Forex brokers offer trade margin of 50, 100, 150, or even 200 to 1 of trade margin.
Forex traders often find themselves controlling a huge sum of money with little cash outlay on the table. For example, a $1,000 in a 150:1 Forex account will gives you the purchase power of $150,000 in the currency market.
While certainly not for everyone, the substantial leverage available from online currency trading firms is a powerful, moneymaking tool. Rather than merely loading up on risk as many people incorrectly assume, leverage is essential in the Forex market.
This is because the average daily percentage move of a major currency is less than 1%, whereas a stock can easily have a 10% price move on any given day.
Trade Forex anywhere from the world virtually

A computer with Internet connection plus an active Forex account are sufficient for you to execute a trade in Forex market.
Professional Forex traders have the privilege to travel around the world but yet still connected to the market anytime, anywhere. The freedom of this is something you could not get else where by being an employee of a cooperation.
High Liquidity Market
Turnover value in Forex is $1.9 trillion per day. It is the largest trade market in the world and the liquidity of the market is huge. Traders can easily cash in or cash out their capital in Forex market.

Learning and Investing in Forex trading

Wrapping things up, we believe that Forex trading give a whole new option to individual traders to success financially. Learning Forex and listing Forex trading into one of your financial plans is a must.
Sources golearnforex.net

Your Guide to Learning a Forex Trading System

2009-01-08T08:46:00.002-08:00

by: Morgan Hamilton
There are a great number of people in America that are interested in investing in order to make a tidy profit. There are many ways to invest and many ways to make profits by investing. One method that has been gaining in popularity is that of the Forex trading system. If you are unsure of what this is, let me explain. Forex stands for foreign exchange. A Forex trading system is defined as the simultaneous exchange of one countries currency for another countries currency. If you would like more information, please let this be your guide to learning a Forex trading system.
The Forex trading system involves trading some of the world's most major currencies. These are: the dollar, yen, British pound, Swiss franc, and the Euro. The way the exchange rates of these types of currencies change is based on economic growth. An example: Sometimes the Dollar is worth more than the British pound because the United States was in a period of economic growth while Britain was on the decline. This can be because the unemployment rate was declining in the United States, while on the rise in Britain. Another example: the export rate is up in Asia so the yen is worth more than the Swiss franc where the export rate is down. Economic growth changes daily, so the value of these currencies changes daily. You need to learn to watch for these changes in order to make any money with the Forex trading system.
The Forex Trading system is much larger than that of all U.S. stock markets combined. In fact, the Forex Trading system makes about 1.9 trillion dollars each year. This is 30 times larger than the U.S. stock markets. Also, Forex trading is done throughout the entire world, so it is available 24 hours a day, unlike the U.S. stock markets.
You can learn the Forex trading system for free online at various websites. Many websites offer a free demo account and free Forex trading System training. This way you can practice everything you learn for free, without investing or losing any real money. Then when you get a feel for the Forex trading system, many websites offer a free 30 day trial or free trades to new investors. It is best to utilize some of this free training and the free demo accounts before you start investing your own money.
Now that you understand the Forex trading system a little better, you may wish to get out there and start investing. There is a lot of money to be made, or lost. Be careful and make sure you get the proper training first. With the right frame of mind, you may be able to make some healthy sums of cash through the Forex trading system!

Best Forex Trading Education

2009-01-08T04:30:00.002-08:00

by: Ricky Lim

There are many forex trading courses and educational material that a person can find online. However how does someone go about finding the best Forex trading education information? Certainly there are huge amounts of information that will educate you about Forex trading, but not all of it will help you to achieve your goals of making a profit rather than losing.
Below are some guidelines which should help you to find the best forex trading education course
Point 1 - Avoid Day Trading Systems
Many people when starting out in Forex trading will be enticed into thinking that the best way of making money is through day trading. Certainly if you were to ask a person who is selling a Forex trading course for details relating to their real time track record with regard to profits relating to day trading they will not be able to provide one to you.
So if you are looking to produce an income from your trading then do not waste your time on day trading.
Point 2 - Real Time Profit Records
When buying any sort of forex education course, you need to be provided with these records. If a person selling their system does not have confidence in the abilities of their system and are not investing their own monies then why should you. Unfortunately some of these courses being offered online today are from people who have either never traded in their lives or have failed when they have used the system themselves.
Point 3 - Understand It
Once you find a forex trading system which either has a track record or is willing to show their real profits then there are some other things which you will need to take into consideration.
It is important that you learn everything you can about the system in question so that you understand it completely. Unfortunately if you have no understanding of how the system works then you will not have the confidence to trust in it and follow the system through to a likely conclusion if you start to suffer losses.
By keeping these points in mind, you will find the best Forex trading education that is suited to your kind of personality. There are literally hundreds of places on the web that can offer you an education as well as free advice on Forex trading so do some investigating and you will soon find one that is ideal for you.

FOREX TRADING

2009-01-04T13:12:00.002-08:00

See The Video and learn more about Forex Trading, Video Sponsored ByYouTube

An overview of the Forex market

2009-01-04T12:50:00.002-08:00

The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.

The main enticements of currency dealing to private investors and attractions for short-

term Forex trading are:

24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.

Forex trading

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.

What is Forex (Foreign Exchange)?

2009-01-04T12:39:00.002-08:00

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