Monday, September 26, 2011

Three "golden" rules of Forex

Foreign Exchange Market Forex / Forex in Russia become more popular, but most novice traders in forex is not enough information about what common mistakes beginners make.

"Knowledge - the gold", this proverb is most suitable for trading in the Forex market. And that speculation to be profitable and least losses to follow some rules:
The first "golden" rule of thumb is that the market does not like one-day players. Trade in the Forex market to deal with constantly being improved and gaining experience, gaining new knowledge systematically, constantly analyzing trends. Forex does not tolerate inconsistency.
The second "golden" rule applies to losses in forex. Forex game of chance, and it is important to be able to control their emotions. The desire to win back - a bad incentive for transactions, it is an impulsive act, which makes it impossible to conduct the necessary analysis of the trader, which increases the risk of losing the deposit.
Third, the "golden" rule: the trader has to manage their risks. Risk management can set a threshold of loss. In addition, before each operation to calculate all the potential risks, if necessary, by refusing to bargain. Adhering to these rules, you can make a profit and minimize losses.

Investments under management

New features at Forex: investments under management.

In order to receive a stable profit in Forex, not necessarily personally enter into the transaction. Using the service "Investment Account", you can instruct the control investments Forex traders to one or more of your choice.

Service "Investment Accounts" provides investors the most convenient and safe conditions for cooperation with the Manager, who will take over the job at an advantageous placement of investment capital:
Relations between investors and managers are strictly regulated, mutual carried out automatically.

Sunday, September 18, 2011

What is the spread (spread) on the Forex.

Spread - the difference between purchase price and sale price of the currency pairs on Forex. When you request quotes of any currency pair, your broker will give you Forex 2 different prices.
For example:
EUR / USD: 1.5586 (sell) and 1.5589 (purchase).
What does this example? But what if you're going to sell a certain amount of the currency pair EUR / USD (as it implies that the dollar will rise in price) - then you can sell it at a price of 1.5586 (the price that put the broker to sell the currency pair) . If you are going to buy the currency pair EUR / USD (as it implies that the euro will rise against the dollar) - then you can buy it at a price of 1.5589.
The difference between the bid and ask price, put up a broker and will be spread - in this case it is 3 points. Spread - a natural profit broker, it receives, regardless of how you trade, successfully or loss.


 This figure illustrates the above. Green line shows the quote currency pair GBP / USD in if you are going to buy (Buy), and red - shows the sales price (Sell). The difference between these prices and will spread, as defined in paragraphs.

Saturday, September 17, 2011

leverage

As usual for a transaction the client first allocates a certain amount of their funds in the account at the principal (the bank or company that provides market access). The real trade is conducted with the money of the principal, who provides for entering the market leverage (in the standard case is equal to the leverage of 1:100). Thanks to this client (the investor) is able to handle the amount many times greater than his own, which increases the yield in percentage terms. In this case the customer's funds are so-called margin (a kind of collateral), which freezes the principal on his account for the duration of the maintenance of the transaction until the client (investor) does not make a reverse exchange.

Exchange transactions involving gold

Often the list of currency pairs include quotes and more gold against the U.S. dollar are called gold-spot contracts (and referred to as GOLD). This is justified because gold is essentially a global equivalent of money, and none of the current rates are not guaranteed by law gold content. Account for FOREX allows electronic exchange transactions involving gold and at the same track incessant fluctuations of exchange rates for the precious metal. The interest in such transactions is particularly high in times of crisis, when currencies of all countries in varying degrees of impaired, because of what the demand for gold increases.

Which pairs traded on Forex?

Currency Exchange - a place where the free buying and selling of national currencies, ishV First, it is the world's reserve currency (in brackets are their standard international notation - ISO codes):
U.S. Dollar (USD);
-euro (EUR);
-British pound (GBP);
-Japanese Yen (JPY);
-Swiss franc (CHF).

And other popular currency units:

-Australian dollar (AUD);
-New Zealand dollar (NZD);
-Canadian dollar (CAD);
-Swedish Krona (SEK);
-Norwegian krone (NOK);
-Danish krone (DKK);
-South African Rand (ZAR).


All of these currencies are combined in pairs, and their combination can be anything. Typically, the most widely traded currency pairs 30. Key pairs (accounting for the largest volume of trading) - is the euro / dollar (EUR / USD), pound / dollar (GBP / USD), dollar / yen (USD / JPY) and dollar / Swiss franc (USD / CHF). Much attention is paid to the other pairs involving the U.S. dollar. Cross-rates on the FOREX currency pairs are called, in which the U.S. dollar does not include, for example, EUR / GBP (EUR / GBP), pound / yen (GBP / GPY), pound / Swiss franc (GBP / CHF) and so on.
The Russian ruble is not currently involved in trading on the FOREX, as well as not participating in the free market fluctuations and another major world currencies: Chinese yuan. However, it is likely that the transition to the free convertibility of these currencies will happen in the coming years.

Currency Exchange

Currency Exchange - a place where the free buying and selling of national currencies based on exchange rate relationships between them.
The direct appointment of currency exchange - the exchange rate, which represents the value of foreign currency. The main objective of the exchange is to mobilize temporarily free monetary resources, redistribution of market methods of some sectors of the economy to another and to establish the actual market rate of domestic and foreign currency in a fair and legitimate trade.

Participants in the forex market

Work and earn in FOREX can be any person who expressed such a wish. In addition to private investors participating FOREX are central banks, market makers, banks, company exporters/importers, investment companies and hedge funds, insurance companies, corporate investors and intermediary companies providing market access to individuals and companies.

Brokers Forex -"selection criteria"

Many new traders all the time have to deal with the problem of choosing a broker comfortable for yourself and your deposit. Those who decided to seriously come to grips with online trading on Forex, be very careful about choosing the right broker. But not everyone knows how to start and what to look primarily at finding the right broker.
I remember, when you come to some well-known independent forum, and look - it will not give money, they do not close the deal by the order, there generally are threatening to physically punish a trader for contempt, on the contrary there have closed the deal with the loss and not on orders. My head was puffy from these posts. And who does not ask for advice all together otgavkivalis meaningless allusions.
Then, I realized that while he does not test on yourself and your deposit of at least one broker can not tell who is who.
Brokers Forex. What they are and what to look for when choosing?

Brokers FOREX

Brokers FOREX - professional participants in the financial market, providing customers the opportunity to trade on the FOREX market on their own account but on behalf of the company's broker. Broker - a middleman in the investment market, acting as buying and selling. Their activities brokers via the Internet through a special program of terminal. At the same time customers have the opportunity to exercise "voice" of the transaction - by phone (old version). Direct applications and their implementation of structural units involved in the brokerage company - dealing rooms.

Who is a trader?

Trader - a person who is engaged in trade on the exchange. Often referred to as a speculator. As he tries to profit from any market situation. The task of the trader - buy cheap and sell expensive. The resulting profit from the transaction becomes the property of the trader.

Why Forex?

It is a way to gain financial prosperity and stability. Profit is one of the main themes of work on FOREX. It is with this tselyuprofessionalnye market participants and retail investors operate in FOREX very large sums. Its turnover exceeds 10 times all the other markets.
It is a reliable way to invest money. In the daily exchange rate fluctuations, in the FOREX account it may be more practical than, say, a multi-bank deposit. Of course, this is true if you're willing to at least from time to time independently monitor multiple parameters: a minimum of expensive or cheaper currency basket depreciated or strengthened in the current ruble, grow, or conversely, falling prices for gold, oil, and t . etc.

What is Forex?

Forex (FX) - the international currency market - a market where one currency bought and sold in others. This is - one of the biggest markets in the world.
Some of the participants in this market are simply seeking to exchange foreign currency for their own or, conversely, to such parties include, for example, transnational corporations, which must pay salaries and other expenses in some countries, selling products in another. However, most of the market consists of currency speculators who profit from movements in exchange rates, as well as speculators profit by movements in stock prices. Currency traders can take advantage of even small fluctuations in exchange rates.

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The Board of analysts: the best strategy - to leave the euro zonePosted on August 18, 2011 in the "News"
On Thursday, August 18 euro is under significant pressure. By 09:00 Moscow time his rate was 1.439 dollars / euros. The euphoria of the meeting of leaders of France and Germany had passed, and now the players come to realize that it all really happened.
"The outcome of the meeting Sarkozy and Merkel was a surprise for the markets. Especially negative is the lack of progress in increasing the European Foundation for financial stability. I think that now yield spread between German Bond and Spanish and Italian bonds will grow, no matter what the ECB did.