tag:blogger.com,1999:blog-24427382574677128932024-09-25T21:43:49.697-07:00foreign currency exchangeMaxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.comBlogger58125tag:blogger.com,1999:blog-2442738257467712893.post-79379576704815597092011-10-26T09:47:00.000-07:002011-10-26T09:47:07.642-07:00

Dollar Good or Bad For the US Is a strong US dollar good or bad for the US economy? Typically the word strong is perceived as a positive reference but when it comes to a country's economy, a strong currency may not be in their best interest. In fact, many countries like China and Japan take an active effort to weaken their currency because their countries are export dependent. Being the most

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The equity market can impact the currency market in many different ways. For example, if a strong stock market rally happens in the U.S., with the Dow and the Nasdaq registering impressive gains, we are likely to see a large influx of foreign money into the U.S., as international investors rush in to join the party. This influx of money would be very positive for the U.S. dollar, because in

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Simple monetary theory often assumes that the supply of money is totally independent of interest rates. The money supply is 'exogenous'. The supply of money is assumed to be determined by government: what the government chooses it to be, or what it allows it to be by its choices of the level and method of financing the PSNCR. Some economists, however, argue that money supply is 'endogenous',

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A country's balance of payment account records all transactions between the residents of that country and the rest of the world, These transactions enter as either debit items or credit items. The debit items include all payments to other countries: these includes the country's purchases of imports, the spending on investment it makes abroad and the interest and the interest and dividends paid to

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By inflation mean a general rise in prices throughout the economy. Government policy here is to keep inflation both low and stable. One of the most important reasons for this is that it will aid the process of economic decision making. For example, businesses will be able to set prices and wage rates, and make investment decisions with for more confidence.

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Governments also aim to ensure that unemployment is as low as possible, not only for the sake of the unemployed themselves, but also because it represents a waste of human resources and because unemployment benefits are a drain on government revenues.

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Governments try to achieve high rates of economic growth over the long term: in other words, growth that is sustained over the years and is not just a temporary phenomenon. To this end, government also try to achieve stable growth, avoiding both recessions and excessive short-term growth that cannot be sustained (governments are nevertheless sometimes happy to give the economy an excessive boost

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In the high leverage game of retail forex day trading, there are certain practices that, if used regularly, are likely to lose a trader all he has. There are five common mistakes that day traders often make in an attempt to ramp up returns, but that end up resulting in lower returns. These five potentially devastating mistakes can be avoided with knowledge, discipline and an alternative

Maxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.com0tag:blogger.com,1999:blog-2442738257467712893.post-67809803665290169162009-12-18T00:17:00.000-08:002009-12-18T00:17:02.487-08:00

One thing to remember is that support and resistance levels are not exact numbers. Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. With candlestick charts, these "tests" of support and resistance are usually represented by the candlestick shadows. Notice how the shadows of the candles tested the 2500

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Support and resistance is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea on how you should measure support and resistance.Let’s just take a look at the basics first. Look at the diagram above. As you can see, this zigzag pattern is making its way up (bull market). When the market moves up and then pulls back, the highest point

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Candlestick charts show the same information as a bar chart, but in a prettier, graphic format. Candlestick bars still indicate the high-to-low range with a vertical line.  However, in candlestick charting, the larger block in the middle indicates the range between the opening and closing prices. Traditionally, if the block in the middle is filled or colored in, then the currency closed

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A bar chart also shows closing prices, while simultaneously showing opening prices, as well as the highs and lows. The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid. So, the vertical bar indicates the currency pair’s trading range as a whole. The horizontal hash on the left side of the bar is the

Maxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.com0tag:blogger.com,1999:blog-2442738257467712893.post-30835431144950194352009-12-17T23:51:00.000-08:002009-12-17T23:51:01.474-08:00

A simple line chart draws a line from one closing price to the next closing price. When strung together with a line, we can see the general price movement of a currency pair over a period of time. Here is an example of a line chart for EUR/USD:

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Let’s take a look at the three most popular types of charts: Line chart Bar chart Candlestick chart

Maxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.com0tag:blogger.com,1999:blog-2442738257467712893.post-82367806152341030322009-12-17T23:42:00.000-08:002009-12-17T23:42:08.997-08:00

Technical analysis is the study of price movement.  In one word, technical analysis = charts.  The idea is that a person can look at historical price movements, and, based on the price action, can determine at some level where the price will go.  By looking at charts, you can identify trends and patterns which can help you find good trading opportunities. The most IMPORTANT

Maxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.com0tag:blogger.com,1999:blog-2442738257467712893.post-91570566778060533662009-12-17T23:36:00.001-08:002009-12-17T23:36:02.653-08:00

Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand.  In other words, you look at whose economy is doing well, and whose economy sucks.  The idea behind this type of analysis is that if a country’s economy is doing well, their currency will also be doing well.  This is because the better a country’s

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Unlike the equity market - where investors often only trade with institutional investors (such as mutual funds) or other individual investors - there are additional participants that trade on the forex market for entirely different reasons than those on the equity market. Therefore, it is important to identify and understand the functions and motivations of the main players of the forex market.

Maxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.com0tag:blogger.com,1999:blog-2442738257467712893.post-1309817199733250272009-12-17T22:45:00.000-08:002009-12-17T22:45:50.274-08:00

Forex Versus Futures Advantages Advantages                                                         Forex                  Futures   24-hour Trading YES NO Commission Free

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 A major difference between the forex and equities markets is the number of traded instruments: the forex market has very few compared to the thousands found in the equities market. The majority of forex traders focus their efforts on seven different currency pairs: the four majors, which include (EUR/USD, USD/JPY, GBP/USD, USD/CHF); and the three commodity pairs (USD/CAD, AUD/USD, NZD/USD)

Maxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.com0tag:blogger.com,1999:blog-2442738257467712893.post-66012213290231335432009-12-16T06:52:00.001-08:002009-12-16T06:52:35.468-08:00

The following is a list of questions you may like to consider before opening an account. You can use this checklist to narrow down your selection of companies that fit your requirements. You may also wish to refer to the forex broker ratings page on this site to read about traders unique experiences with particular brokers. The following links will also give you some background

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Basic Order Types There are some basic order types that all brokers provide and some others that sound weird. The basic ones are: Market order A market order is an order to buy or sell at the current market price. For example, EUR/USD is currently trading at 1.2140. If you wanted to buy at this exact price, you would click buy and your trading platform would instantly

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In the event that money in your account falls below margin requirements (usable margin), your broker will close some or all open positions. This prevents your account from falling into a negative balance, even in a highly volatile, fast moving market. Example #1 Let’s say you open a regular Forex account with $2,000 (not a smart idea). You open 1 standard lot (100,000 units) of the EUR/USD,

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You are probably wondering how a small investor like yourself can trade such large amounts of money. Think of your broker as a bank who basically fronts you $100,000 to buy currencies and all he asks from you is that you give him $1,000 as a good faith deposit, which he will hold you for but not necessarily keep. Sounds too good to be true? Well this is how forex trading using leverage works.

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So now that you know how to calculate pip value, let’s look at how you calculate your profit or loss. Let’s buy US dollars and Sell Swiss Francs. The rate you are quoted is 1.4525 / 1.4530. Because you are buying US you will be working on the 1.4530, the rate at which traders are prepared to sell. So you buy 1 standard lot (100,000 units) at 1.4530. A few hours later, the price moves

Maxhttp://www.blogger.com/profile/02835947733209487333noreply@blogger.com0tag:blogger.com,1999:blog-2442738257467712893.post-75963146747098529802009-12-06T01:34:00.001-08:002009-12-06T01:34:02.401-08:00

Spot Forex is traded in lots. The standard size for a lot is 100,000 units. There is also a mini lot size and that is 10,000 units. As you already know, currencies are measured in pips, which is the smallest increment of that currency. To take advantage of these tiny increments, you need to trade large amounts of a particular currency in order to see any significant profit or loss. Let’s

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