Posts Tagged ‘forex’

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A number of Forex Trading Information For Novices

Thursday, November 1st, 2012

The Forex (Foreign Exchange in English, or “foreign exchange market”) is the market “OTC” (that is to say between operators that aren’t subject to market “regulated”) which traded currencies all over the world between them, currencies quoted against one another in the form of parity .

These days, the Forex is the biggest monetary market across the globe, the average daily number of transactions (about 4000 billion dollars in April 2010) which represents three times the equity markets and futures (futures markets) put together. Is being developed since the abandonment of fixed exchange rates of various currencies them (as well as the reference to the gold standard) in 1974, as Forex market ascertains the development of the parity of all pairs (or “cross”) whose currency is the regime of floating exchange rates.

One of the most traded currencies around the world are Dollar (USD 43% of sales and purchases), the Euro (EUR: 19%), the Japanese Yen (JPY 8.5%), the British Pound (GBP 7.5%), the Swiss Franc (CHF: 3.5%), the Australian Dollar (AUD) Canadian Dollar (CAD). Currency called “secondary” and with exchange rate regimes “linked” or “fixed” (the currency of Argentina for example a fixed parity with the dollar, as the Franc CFA West Africa with the Euro and the Chinese Yuan to a basket of currencies dominated by “Dollar”) are subject to little exchange on Forex.

Forex key stakeholders are:

Banks and financial companies that offer 50% of transactions through proposals for “market makers,” giving a price at any time purchaser (“bid”) and ask price (“ask”), the difference (the “spread” ) is the profit;

Large firms who wish the entire hedge against currency risk in terms of their international activities (but multinationals have also created their own trading floors instantly involved in Forex risky purposes);

The central banks involved sometimes the market (selling or buying massively currency) to be able to regulate and maintain a specific monetary policy : the European Central Bank will certainly be able to sell Euros when it wishes to decrease this currency;

Institutional traders (hedge funds, etc.). Included both cover portfolios stocks or bonds in an optical speculative direct as much as 30% of Forex transactions;

People whose investments are highly developed thru trading “on line” and represent about 5% of forex transactions.

A position on the Forex includes selling one currency and purchasing another. Buy EUR / USD means for an investor to purchase Euro and then sell dollar .

If a trader expects an increase of value of EUR / USD (appreciation of the Euro against the dollar) and the euro / dollar actually goes to EUR / USD = 1.3000 to EUR / USD = 1.3050, 10,000 euros will likely be bought permitted the trader to earn 50 Dollars.

To understand more regarding trading currency, look at this wonderful website: forex trading.

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Wealth Building Starts With Forming A Game Plan

Friday, July 13th, 2012

A mutual fund guide could basically be called a guide to investing in stocks, bonds, and money market securities.

Funds are not just another investment option; they represent the best way for most people to invest in investment securities. When I was a financial planner a prospective client once asked me, “should I invest in stocks, bonds, IRAs, or mutual funds?” That question told me a lot about the lawyer asking it. He needed a financial planner, and also needed access to a good basic guide to investing as well. I explained that mutual funds were the easiest way for the average investor to invest in stocks and bonds, and that this could be done in either an IRA and/or in various other types of accounts, like in a joint account with his spouse.

All of these funds are simply professionally managed pools of investors’ money. You invest a dollar amount, and in return own shares in a large portfolio of securities like stocks and bonds. The financial objectives range from safety and stability of principle, to high income, to high growth or profit potential. Money market funds invest in safe short-term debt like U.S. Treasury bills, with safety and liquidity as the primary objectives. They pay competitive interest rates in the form of dividends, and the value of their shares is pegged at $1 and rarely fluctuates in value. Bond funds invest in bonds, longer-term debt, to produce higher interest income for the investors. The value of investor shares will fluctuate with changes in prevailing interest rates, so risk is moderate in bond funds.

Equity funds invest your money in common stocks with the objective of earning higher returns or profits for investors. Risk is higher here, as the price or value of shares can fluctuate significantly. The fourth category is balanced funds, which invest in a combination of money market securities, bonds, and stocks. The objective is to provide both moderate growth and dividend income at a moderate level of risk. No guide to investing in mutual funds is complete without considering the cost of investing. You can invest through a middleman and pay as much as 5% or more in sales charges called “loads” or you can invest directly in no-load funds and avoid them. While all mutual funds charge for yearly expenses, you can pay 2% a year or more, or less than % in well chosen no-load funds.

Mutual funds are basically a highly diversified, risk-spread investments that, while they charge expenses, are cheaper than virtually any other type of investment out there. Best of all, mutual funds can be virtually any asset class, not just equities, providing investors with plenty of options. This is because about 99% of the time, if you own mutual funds your money will be invested in one of the biggest and most established investment types.

If you have a small percentage of your portfolio (around 10% is recommended) in commodity mutual funds, then you have some protection from a downward swing in the stock market. Commodities also do well during times as of inflation. And they are a good hedge during times of a weak dollar. To take advantage of the diversification benefits of commodities there are other choices available, such as commodity mutual funds. They are similar to stock mutual funds in that there are many types to choose from, just as there are many brokers to buy them from. Do a little research on the funds and brokers and put some diversification into your portfolio.

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Trading Puts and Calls With Weekly Options – Taking Advantage of Rising Volatility

Friday, June 22nd, 2012

With puts and calls there is a little known option trading strategy that can provide consistent profits from markets that seem too wild and choppy to use the usual strategies like iron condors, calendars, and credit spreads. This strategy works best in crazy markets unlike the standard option income strategies such as the iron condor, the calendar spread, credit spread, etc.

This strategy is initially set up to profit no matter what the market winds up doing. The set up for this trade can profit regardless of what the stock or index being used winds up doing – if it moves up, a gain is made – If it moves down, a gain is made – and then, when a profit has been realized, the trader can immediately lock in that profit and ‘re-set’ the position so that it will profit again regardless what happens from that point forward.

Similar to a straddle, when using this strategy, we don’t care what the market ends up doing. Up or down, it doesn’t matter. If the market goes up – that’s great. If it goes down – that’s great too. And the bigger the moves, the better.

Then, when a move has occurred and a profit has been realized in the position, using an easy to follow set of rules, the trader can perform an adjustment that immediately lock in that profit while setting up the position to profit again no matter what the underlying winds up doing. And this can be done over and over again – continually scalping profits out of the trade.

One of the most frustrating things to directional traders is when a trade actually goes in their direction, making them profit, only to immediately revers and go the other way, wiping out their gains, and perhaps even then dipping lower putting them into losses.

Gamma Scalping eliminates this. And once again, using the method used to lock that profit in, positions the trade back to it’s starting point – where if the underlying continues moving in the same direction – or stops and returns back to where it came from – MORE profits can continue. And if the underlying continues the move – or heads back to where it started from – MORE profits continue.

Gamma Trading is a great tool to have in the stock and option traders toolbox and especially in extremely volatile times this strategy can be a real asset to help generate super sized profits.

And along with being stress free and profitable – using puts and calls explained in this way is fun too.

To find out more about the butterfly spread trading option strategy, visit this Butterfly Spread Training Site for scads of free training videos, examples, and reports on how to fittingly start off, exit, manage and adjust puts and calls examples Strategies to create a consistent monthly returns.

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A Brief Summary of a Stock Exchange Market

Tuesday, April 17th, 2012

A stock exchange market is a body that allows people to trade stocks and securities. A stock exchange market also allows people to issue or redeem securities or other financial securities or to pay income and dividends. The types of securities that are traded include company issued shares, commodities, stocks and pooled investment products such as the types that banks invest in for mutual funds.

If securities are going to be traded, they first need to listed on a stock exchange market. The stock exchange market is now a massive electronic network where people and corporations can trade, purchase and sell stocks relatively quickly.

Supply and demand is the very basic idea behind the modern stock exchange market. Simply put, the more demand there is for a stock, the more it will be worth. This is one of the ways in which prices for stocks are determined and depending on this demand, prices of those stocks may rise or fall. Other factors also affect the price of stocks.

If a company needs to obtain some sort of financing to expand their business or fund operation of the company, one way for them to get capital is to sell shares or stocks in their company. Purchasers of this stock are called investors. When the company makes a profit, it pays a portion of the profit to the investors or shareholders. These payments are known as dividends.

There are basically two ways that stocks can be traded. One is in a physical location with verbal trading, the other is the more common electronic stock exchange market. Not many people trade in a physical location, as it is much more common to do trading online through various brokerage sites. In order to make a trade, you are generally charged a fee, or some sites may offer a certain number of trades under one all inclusive fee.

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How To Earn Online

Thursday, April 12th, 2012

Times are getting tougher nowadays.Though the country is already recovering from recession it is still a long way to go.a lot of people still cannot earn enough for their family.Good thing there are now innovative ways like forex trading that can help add to the family income.

A lot of changes have been introduced by the internet in our lives.Some are good, some are bad.But the good would probably offset the negative ones especially when it comes to the convenience that it has brought us by improving the way we communicate and do business with each other.Because of the web; a lot of doors have opened.Among them is the opportunity to earn through more ways.The following are some of them:

*Forex- foreign exchange trade has been greatly changed by the internet.From a closed trade it has now become one of the fastest growing financial markets today.Now it’s easy for anyone to invest money and watch it grow exponentially online.

*Jobs-another way of using the internet to ear is to work online.Because of the web companies are now able to reach out to the global market not just in selling products but in hiring people as well.This opens a lot of opportunities for many people who are not able to find employment through the internet.

*Games-though it may seem more like a form of entertainment, online gaming has also opened a lot of opportunities to earn.You can develop characters in games and sell them out or you can trade and sell various gaming items.You can also play in online casinos using real money and cash out your winnings.

Forex, jobs and games are only three of the many ways that one can now earn through the internet.You have a lot more opportunities in the online world.

Want to earn big bucks?Check this out forex trading.

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