Forex Trading: currency trading, market, stocks

Example: Short Position in Forex

admin — Sun, 21 Sep 2008 12:42:47 +0000

You can win and return option, ie believe EUR will poevtinee against the U.S. dollar and first sell the currency pair EUR / USD to buy it later at a lower price. This is called short position, ie
If you think of EUR rate is high and likely to poevtinee you sell EUR and then buy them cheaper.

Example for Forex Long Possition

admin — Sun, 21 Sep 2008 12:40:56 +0000

At the beginning of March decide that the current rate EUR / USD, which is 1.1500, will be amended in favor of the EUR, ie poskapne and the euro will find Long (Long) position.
Buy 30 000 EUR = 1.1500 x 30 000 USD = 34 500 USD
The required deposit (margin) in your account for this transaction is only 300 U.S. dollars
At the end of May the euro rose to 1.1700 against the dollar
You decide to cancel their debt position
Sell 30 000 EUR = 1.1700 x 30 000 USD = 35 100USD
35 100 USD - 34 500USD = 600 USD Profit

Margin Trading

admin — Sun, 21 Sep 2008 12:39:00 +0000

Forex market trading of moves by several major and defining principle - one of them is trading through margin (margin - margin). The idea is relatively small deposit (margin account) to gamble with many more items. Brokers determine the amount of margin that can range from 1 percent to 10 percent of position, which run on Forex market.
Example - if you want to buy 15 000 USD with the idea that the dollar will rise in Forex market and mardzhinat is 1 percent, then you are asked to deposit only 150 USD, which cover your position. The remaining 99 percent are covered by brokers, ie to build a Forex market is needed only 1 percent real capital. Exactly Forex Margin trading makes the market less attractive and accessible to small market participants.

Margin trading is done through the holding of two major items - Long (Long) and short (Short). Long position reflects the purchase of a quantity of currency to obtain speculative profit from a rise in the exchange rate. The short position - to make a profit if the price declines.

Forex market for beginners

admin — Sun, 21 Sep 2008 12:38:14 +0000

You sound strange words: “online marketing”, “forex market”, “margin”, “long and short position “…? Fear not, is not as complicated as it seems! Do not you need any special skills or brokerage diplomas! Do not think that you need millions to get started, just the opposite!

Financial analysis

admin — Sun, 21 Sep 2008 12:35:26 +0000

One of the conditions for the flourishing of the company, is the analysis of its financial condition. Information obtained from periodic assessments are interested not only the chief accountant and financial manager, but readers who may be a shareholder, potential investor or just a competitor.

Financial analysis is a special type of “specialized” function of management, which has the nature of the premise and implemented by all other management functions.

Therefore the successful operation of the company largely depends on the proper definition of its financial strategy.

Here occupies a central place to conduct magnitude, structure, reorganization and variations of investment capital with the aim of realizing maximum high profit.

The problems of financial analysis related to the particular definition of subject and object.

The main purpose of financial analysis is the creation of optimal conditions for the making of obosnovanie economic terms, management decisions regarding business conduct.

In accordance with the primary objective may be defined its major functions. The first major function is information - reasoned.

Processed through its means and methods diverse information, financial analysis, it transformed into specific analytical information which constitutes the basis for making different management decisions.

Information - reasoned function to a realization of the second, setting a specific function - namely applications - cognitive function. Without her analysis loses its meaning.

Applications - cognitive function is inherent in the internal analytical system analysis. Derivative of the first two is social - psychological function.

The method of financial analysis capabilities of a system of comprehensive and interrelated study of economic phenomena, processes and conditions to which they factors in terms of running the company.

The core method is based on the principle of dialectical approach to studying the cause - relationship and the relationship between economic processes and phenomena.

In this respect the principle of financial analysis methods are typical methods of induction and deduction.

Analytical presentation of the subject in izuchavaniya induction goes from one features and components to the whole nature and determination.

In education the way of analytical research direction of the sign to the individual characteristics and the relevant components of the site.

Method comparison
It is essential for financial analysis of the company. By comparison method possible to assess changes in the parameters of the economic system to emerge trend and the prospect of its development against the background of the dynamically changing business konyuktura.

Method group
The method the group has great application in theory and practice of financial analysis of the company. This statistical method for data analysis is grouped in certain signs and according to certain criteria.

Balance method
Balance method is applied in the financial analysis for the study of various balance relationships. His base is in the method of accounting.

Method of detail
The method of detail is related to the complexity dezagregatsiyata indicators and multiple factors. It is applied in parallel with the method of education in financial analysis. By this method is measured unit influence the behavior of individual components of the system on the behavior of the system as a whole.

Method of chain substitutions
The method of chain substitutions is the main method of deterministic factor analysis. It can be measured individual influence of each factor on the performance of an amendment rezultativen indicator.

Graphic method
The graphic method is used for the presentation illustrates the development of economic phenomena and processes taking place in the enterprise.

Currency and money

admin — Sun, 21 Sep 2008 12:33:44 +0000

The currency is a unit of exchange, facilitating the exchange of goods and services. Money occur as needed to swap oposredstvane of relations between people.

Development they undergo a natural exchange, commodity money, “measured” (wiry) money, gold, paper, credit money.

The functions they perform money in the modern economy are: a means of circulation, tender, means for calculating values means of accumulation, means of transfer values.

Under the currency means the legal regulation of monetary policy in one country. In a narrow sense, however, this concept is indicated foreign currency.

Depending on the material of which have been made, respectively, are related are currently in circulation money, distinguishing the following exchange systems: linked currencies - circulation of gold, with gold plated money, money with gold-coated device and free currencies.

The difference between them is that the first subject to a monetary metal - gold or mottos, and the second no such commitment.

Value for money (internal value of money) is their purchasing power and is represented by the reciprocal value of the price level.

The external value of money shows how much foreign goods can be purchased by one of the national currency, it was amended by the change in exchange rate.

According to quantitative theory of money there right-proportional relationship between money and price level.

The process of increasing prices of goods, or that is the same - the process of depreciation of money is called inflation.

Under deflation means the total decrease of price level. For inflation expectations speaking on the dynamics of price indices.

The price index shows how the percentage increased prices to the basic period.

Money had more than five millennial existence, they emerge and evolve in parallel with the emergence and development of commodity production.

As a general exchange agent initially used products with relatively long-term use that if necessary, can serve for consumption.

Such currency was such as animals, peaks of arrows and spears, precious jewels as shell pearls and precious materials.

Contemporary names of monetary units lead to this conclusion: for example pecus, pecinia means cattle; obolat was equal to a spit for roasting a drachma a handful of peaks of arrows.

Wiry circulation of money to develop as monometalizam and bimetallism. In monometalizma be cut and circulate coins made of a metal.

Monometalizam copper is typical of old, silver monometalizam there in the past century, but a golden dates 18vek from. to turn in the second half of 19c. godspodstvashta in monetary system.

It was developed as a gold-monetary gold slitkov-and-gold monetary standard.

Paper, and later credit appear in circulation in the Middle Ages.

Then have appeared moneychanger who received storage quantities of precious metals traders, in exchange for issuing a receipt “notes” (from there and name notes).

Over time, traders began to exchange among themselves their music, not complete money.

Nowadays dominant form of cash credit (bank) money.

They are also called “dzhiralni money (from giro - Round wheel) because the money found in accounts can be transferred from a credit institute in other kind” circular “.

Currency zone is a country or region in which a specific currency is the dominant medium of exchange.

To facilitate trade between currency zones are announced daily exchange rates - ie prices at which a quantity of one currency (or goods and services of a currency zone) is exchanged against other currencies.

Modern currencies can be classified either as currencies with floating exchange rates or currency with a fixed rate.

Moving Averages

admin — Sun, 21 Sep 2008 12:29:07 +0000

eading price charts without Moving Averages like preparing spanakopita without butter or eggs. These simple lines higher or lower than current prices can tell a lot and their use in interpreting the market is really unprecedented. In short, they are the most valuable indicators in technical analysis.

You can build without Sliding average, but work, you greatly risk. However, these lines represent the average levels where market players take important decisions for making the purchase or sale. Therefore it makes sense to forecast what they intend to do now, not later.

Below presents 15 principles that you can use to trade with the use of sliding means:

1. 20-day average sliding notes usually short-term trend, sliding 50-day average - mid-term trend, a 200-day sliding average is an indicator of long-term market trend.

2. Sliding these environments are natural limits on price adjustments. In favor of this argument say two: First, they determine the levels where profit taking or accepting the loss should weaken after the strong price movement. Second, their general recognition whetstone market players to perform Conversion this strategy every time the price approaches those levels.

3. Sliding medium submitted false alerts during beztrendova trade because they are indicators following the trend, which measure pulse ascending or descendants. They lose their effectiveness in markets showing weak or missing movement in prices.

4. Feature of sliding average change when they reconcile and overturned. Reverse sliding average horizontal position indicates a loss of impetus to this time format. This increases the chances that the price slide will cut average relative ease. When Sliding medium with a different period is arranged in a horizontal line near one another, the price often varies crosswise these lines, creating many “market noise”.

5. Sliding average made constant alerts because they come directly from the top of the price. Their relative correlation with the development of cost is amended every bar. They also demonstrate an active relationship as a collection - a division with all other types of support and opposition.

6. Use eksponetsialnite Sliding average, or EMA, for a long time formats and switch to Sliding average, or SMA, for a short time formats. Emma give greater weight to recent changes in price, while SMA consider any action the same price.

7. Short SMA allow the trader to understand how other players do. The market audience using simple Sliding medium because not mean Sliding means. Good signals more based on what they think other market participants rather than the technical side of the developing situation.

8. Displaced 5 -, 8 - and 13-period SMA on the daily charts internally to measure the strength of short-term trend. In strong moves Sliding medium is available in line and show the same direction. But they are divided into maximum and minimum until finally the price does not go in the other direction.

9. Placing price on the 200-day sliding average fixed long-term investor psychology. Bulls live above the 200-day sliding average, while the bears are located below. Vendors swallow recovery rally into this “through the sand, while buyers come to the aid over it.

10. When the 50-day sliding average crosses 200-day sliding average in any direction, it predicts a substantial change in the behavior of buyers and sellers. When the 50-day sliding average rises above the 200-day sliding average - this is called “Golden Cross” while crossing mechoto (top down) is called the Death Cross.

11. Cost is more difficult to slip over the sink sliding average. Conversely, the more difficult it is to lower the cost povishavashta is sliding in average, than in a sink.

12. Sliding medium located in different time periods, showing the speed of trends through their relationship to one another. This can be measured with a standard indicator MACD or using multiple Sliding medium to your schedule and to observe how they approach or distance for a specified period.

13. Position the 60-day average volume sliding below the price chart, to determine when a given session showing unexpected interest. The inclination of sliding average also identify hidden pressure on buyers and sellers.

14. Long-Plazgashti not use the medium to make short-term forecasts, because they will slow from current events. Trend may have already grown to near to a close at this time when the slide will submit a signal to buy or sell.

15. The levels of support and resistance are determined by Sliding average when they come near or distance from each other. Track when a sliding average jumping on the other, rather than delay it crosses, confirming that support or resistance. After crossing has finally taken place, it becomes level support or opposition for future price movements.

Currency Market Forex. Forex Trade

admin — Sun, 21 Sep 2008 12:23:45 +0000

Forex - International Monetary Market. The foreign exchange market is a network of financial institutions that serve international business transactions. It traded on various national currencies.

Forex no specific place and no private meeting between the players as they are in direct and regular contact with each other using different technical means

The transactions are conducted through computer terminals that are networked big banks (commercial banks) and brokerage houses.

Banks that specialize in FX, serving currency market as dealers, ie dealt as the expense of its clients and its own account.

In a developed modern world and modern information and communication network to speak of a single global currency market.

As the Internet and information technologies involved forex market and small investors, this has increased liquidity (turnover) and narrowing spreads (spread - the difference between offers to buy and sell) and reducing commissions.

Forex volume was 1.5 T dollars a day, compared to turnover of the U.S. stock market is only 300 billion dollars. Forex market is the largest and most liquid in the world.

Forex market works 24 hours a day, five days a week, money market closes only for public holidays and weekends.

FX Forex begins with the opening of the market in New Zealand, a little later, Australia and Singapore, followed by Japan, Europe and eventually the United States.

Thus any marketing forex currencies will be able to immediately react to good or bad messages and open or shut position comfortable for him now.

Pessimistic expectations for the outcome of the meeting of the world’s top-bankers

admin — Sun, 24 Aug 2008 12:01:42 +0000

Top-bankers of the world will gather today at its annual meeting in the United States. According to analysts, today’s meeting will be marked by a sense that not many possible moves to be taken to restore the credit markets and saving the global economy, reported Bloomberg. In recent weeks, economic indicators of leading world powers have shown great enhancement of inflation and an increase in inflation expectations. This is likely to push the head of the U.S. Federal Reserve Ben Bernanke and his colleagues to leave interest rates unchanged. Similar is the situation in Europe, which significantly limits the possible moves to the European Central Bank and The English central bank. Bernanke is expected to announce its strategy for the direction of monetary policy during the opening of a conference in Jackson Hall today. The event, which will end tomorrow, takes place annually in 1982 from here, as there are leading bankers from around 40 countries worldwide. This meeting is held in very delicate moment for the world economy. After the United States were severely affected by ipotechnata crisis in the country and the dollar gave up significantly over last year, the problems are gradually prenesoha and in other leading economies. The most critical situation, as many are seen in Britain as increasingly growing expectations that the economy will enter recession. Similarly, it is expected to develop things in Japan and the euro more things can not be categorical. During the last quarter the main pillars of the euro - Germany and France, recorded negative economic growth, but influential representatives of both parties this is only a temporary trend. According to preliminary discussions expectations of today’s conference will be concentrated mainly around the problems with high inflation, which is observed globally due to high prices of fuel and food. Despite the fact that the meeting will present some of the most influential people in the world of finance, it is not expected to end with any decision or plan for joint action.

The growth in the UK stagnated in the second quarter

admin — Sun, 24 Aug 2008 11:59:31 +0000

Britain’s economy went unexpectedly stagnated in the second quarter, thus end the most extended period of economic growth for more than a century, reported Bloomberg.

The gross domestic product has remained unchanged over the past quarter as reported by the National Statistical Institute of Great Britain, where forecast for growth of 0.2 percent. Economists expected growth of 0.1 percent based on the median forecast of 34 - there are specialists.

The growth on an annual basis was 1.4 percent and is the weaker since 1992.

The report reinforces the pressure on the Bank of England to leave aside concerns about inflation and reduce interest rates. Its leaders, led by manager Mervin King, left unchanged the basic interest rate over the past four months, after the consumer price index rose to 4.4 percent, more than two times the target level of government.

“It will become worse” said Ross Walker of Royal Bank of Scotland, cited by Bloomberg. “You may have to wait at the beginning of 2009 before they become witnesses of the first reduction of interest because the situation rise prices still seem warning.”

After the announcement of the data in earlier today UK against the dollar at 1.8573, and at the moment is traded at a level of 1.86. Pika its cable reached in November, when levels were reached by 2.11.

The second largest economy in Europe out of its last recession in 1991, then slowed in the second quarter of 1992 Tempoto growth in the UK on an annual basis can be compared with levels of 1 percent in Japan, of 1.8 percentage points the United States and 1.5 percent in the euro.

By early this week delivered the report at a meeting of governors of the ECB on 7 August, which was decided on the basic interest rate to remain unchanged at 5 percent. Since the report shows that among the managers had a three opposite directions for the amendment of interest that happens only for the second time in months here. Ultimately manager Marvin King and the other six members of the Committee on monetary policy have taken the discussion supremacy in the interest rate to remain unchanged.