REALForex trading account was developed for professional traders and is intended for working with the use of MT5 terminal. For trading on this account type the clients are provided with the comfortable working conditions: leverage of 1:50 – 1:200, no commission for executing trading transactions and fixed spread starting from 2 pips.
Saturday 19 March 2011
Exchange Rate Regime
The exchange rate regime is the way a country manages its currency in respect to foreign currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors.
The basic types are a floating exchange rate, where the market dictates the movements of the exchange rate, a pegged float, where the central bank keeps the rate from deviating too far from a target band or value, and the fixed exchange rate, which ties the currency to another currency, mostly more widespread currencies such as the U.S. dollar or the euro.
The basic types are a floating exchange rate, where the market dictates the movements of the exchange rate, a pegged float, where the central bank keeps the rate from deviating too far from a target band or value, and the fixed exchange rate, which ties the currency to another currency, mostly more widespread currencies such as the U.S. dollar or the euro.
World forex trader
As any forex trader will tell you, staying on top of your finances is crucial to turning in a profit. But quite often this doesn’t happen and many traders will, at some point in time, find themselves in debt. Sometimes getting in debt is the result of circumstances beyond our control such as losing a job… but often it is as a result of being over-ambitious with forex trading or chasing a loss. Sometimes it is because we have not properly understood the long term implications of trading beyond our means; or enjoying a lifestyle that really we can’t afford.
But what ever the reason we have for finding that we owe too many people or organisations more money than we can find a way to repay, please understand that you are not alone. There are a great many people who are in precisely the same situation as you and thankfully there are people whom you can approach who will help you find your way through the nightmare of debt that currently you are enduring.
In order to take control of your debts you need to find a way of managing them. So where do you go for debt management help?
Debt managers’ day job is managing debt, so it makes sense that they are they people to whom you should talk.
Yes, it is difficult to pick up that phone and talk to a stranger about your current situation of which you might feel ashamed. Even when people find themselves in debt due to matters entirely out of their control, events such as losing a job, the most common emotion is one of shame and embarrassment.
Being in unaffordable debt is extremely painful. At least nowadays you do not get arrested and carted off to some hell hole of a dungeon, though emotionally it can feel like that. All you need to do in order to get some debt management help is pick up the phone and speak to a specialist
But what ever the reason we have for finding that we owe too many people or organisations more money than we can find a way to repay, please understand that you are not alone. There are a great many people who are in precisely the same situation as you and thankfully there are people whom you can approach who will help you find your way through the nightmare of debt that currently you are enduring.
In order to take control of your debts you need to find a way of managing them. So where do you go for debt management help?
Debt managers’ day job is managing debt, so it makes sense that they are they people to whom you should talk.
Yes, it is difficult to pick up that phone and talk to a stranger about your current situation of which you might feel ashamed. Even when people find themselves in debt due to matters entirely out of their control, events such as losing a job, the most common emotion is one of shame and embarrassment.
Being in unaffordable debt is extremely painful. At least nowadays you do not get arrested and carted off to some hell hole of a dungeon, though emotionally it can feel like that. All you need to do in order to get some debt management help is pick up the phone and speak to a specialist
Mini Forex Accounts
If you are just dipping your toe into the world of Forex, you might be a little apprehensive about starting out in a completely new form of trading with a full-blown trading account.
A number of brokers have started to introduce Mini Forex accounts, designed to provide a less daunting introduction to Forex trading and introduce new traders by removing a significant proportion of their potential liability.
In essence, a Mini Forex account is simply a cut-down version of a standard Forex account that allows the trader to enter positions that are one-tenth the size of the standard lot of 100,000 units. That means that a one-pip change in a currency pair (based in U.S. dollars), is equal to $1 when trading a mini lot, compared to $10 for a standard-lot trade. This obviously reduces a trader’s potential profitability but crucially, it also limits their liability on a trade.
Mini Forex traders are not limited to only trading one lot at a time, making the accounts ideal for increasing exposure as an individual’s trading confidence builds. If a Mini Forex Trader feels confident enough to make an equivalent trade to one standard lot, a trader can just trade 10 mini lots.
A number of brokers have started to introduce Mini Forex accounts, designed to provide a less daunting introduction to Forex trading and introduce new traders by removing a significant proportion of their potential liability.
In essence, a Mini Forex account is simply a cut-down version of a standard Forex account that allows the trader to enter positions that are one-tenth the size of the standard lot of 100,000 units. That means that a one-pip change in a currency pair (based in U.S. dollars), is equal to $1 when trading a mini lot, compared to $10 for a standard-lot trade. This obviously reduces a trader’s potential profitability but crucially, it also limits their liability on a trade.
Mini Forex traders are not limited to only trading one lot at a time, making the accounts ideal for increasing exposure as an individual’s trading confidence builds. If a Mini Forex Trader feels confident enough to make an equivalent trade to one standard lot, a trader can just trade 10 mini lots.
Forex Scalping
Forex scalping, sometimes referred to as quick trading, is a method used by some traders to make a high volume of trades for very small profits. In most cases, a scalper will hold on to a currency for less than one minute in an attempt to make a very small profit. The sheer volume of trades however allows them to make potentially big profits throughout the trading day.
The main benefit to the scalper is that whilst the potential returns are very minimal, just a few points at best, the risk is also minimised. By acting quickly when a currency is showing a clear upwards trend, the scalper is taking the best step possible to ensuring some form of return. By hanging onto a currency for longer, he risks the possibility of that currency dropping.
For example, if a scalper begins with a trading position of 100 000 units with GBP/USD, he will earn around $10 for each pip. If he closes at a 3 pip profit, his return is $30 - all within less than a minute.
Whilst scalping isn’t prohibited or illegal in any way, many brokers do take a dim view on it. After all, they don’t want to be paying out on almost every trade that an individual makes and some brokers will ask traders who they suspect of scalping to “change their trading habits”, or close their account down in more extreme cases. Other brokers have introduced a delay to the initiation of an order and its actual filling. This allows them to offset that trade and ensure that the broker does not lose out on a trader that closes in profit.
The main benefit to the scalper is that whilst the potential returns are very minimal, just a few points at best, the risk is also minimised. By acting quickly when a currency is showing a clear upwards trend, the scalper is taking the best step possible to ensuring some form of return. By hanging onto a currency for longer, he risks the possibility of that currency dropping.
For example, if a scalper begins with a trading position of 100 000 units with GBP/USD, he will earn around $10 for each pip. If he closes at a 3 pip profit, his return is $30 - all within less than a minute.
Whilst scalping isn’t prohibited or illegal in any way, many brokers do take a dim view on it. After all, they don’t want to be paying out on almost every trade that an individual makes and some brokers will ask traders who they suspect of scalping to “change their trading habits”, or close their account down in more extreme cases. Other brokers have introduced a delay to the initiation of an order and its actual filling. This allows them to offset that trade and ensure that the broker does not lose out on a trader that closes in profit.
Political Conditions
Internal, regional, and international political conditions and events can have a profound effect on currency markets.
All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive/negative interest in a neighboring country and, in the process, affect its currency
All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive/negative interest in a neighboring country and, in the process, affect its currency
Non-Bank Foreign Exchange Companies
Non-bank foreign exchange companies offer currency exchange and international payments to private individuals and companies. These are also known as foreign exchange brokers but are distinct in that they do not offer speculative trading but currency exchange with payments. I.e., there is usually a physical delivery of currency to a bank account. Send Money Home offers an in-depth comparison into the services offered by all the major non-bank foreign exchange companies
Buy and Sell Currency
M0: The total of all physical currency plus accounts at the central bank that can be exchanged for physical currency.
M1: The total of all physical currency part of bank reserves + the amount in demand accounts (checking or current accounts).
M2: M1 + most savings accounts money market accounts, retail money market mutual funds,and small denomination time deposits (certificates of deposit of under $100,000).
M3: M2 + all other CDs (large time deposits, institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements.
When the Federal Reserve announced in 2005 that they would cease publishing M3 statistics in March 2006, they explained that M3 did not convey any additional information about economic activity compared to M2, and thus, has not played a role in the monetary policy process for many years." Therefore, the costs to collect M3 data outweighed the benefits the data provided. Some politicians have spoken out against the Federal Reserve's decision to cease publishing M3 statistics and have urged the U.S. Congress to take steps requiring the Federal Reserve to do so. Congressman Ron Paul claimed that M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation. Some of the data used to calculate M3 are still collected and published on a regular basis. Current alternate sources of M3 data are available from the private sector.
As of 4 November 2009 the federal reserve reported that the U.S. dollar monetary base is $1,999,897,000,000. This is an increase of 142% in 2 years. The monetary base is only one component of money supply however. M2, the broadest measure of money supply, has increased from approximately $7.41 trillion to $8.36 trillion from November 2007 to October 2009, the latest month-data available. This is a 2-year increase in U.S. M2 of approximately 12.9%.
M1: The total of all physical currency part of bank reserves + the amount in demand accounts (checking or current accounts).
M2: M1 + most savings accounts money market accounts, retail money market mutual funds,and small denomination time deposits (certificates of deposit of under $100,000).
M3: M2 + all other CDs (large time deposits, institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements.
When the Federal Reserve announced in 2005 that they would cease publishing M3 statistics in March 2006, they explained that M3 did not convey any additional information about economic activity compared to M2, and thus, has not played a role in the monetary policy process for many years." Therefore, the costs to collect M3 data outweighed the benefits the data provided. Some politicians have spoken out against the Federal Reserve's decision to cease publishing M3 statistics and have urged the U.S. Congress to take steps requiring the Federal Reserve to do so. Congressman Ron Paul claimed that M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation. Some of the data used to calculate M3 are still collected and published on a regular basis. Current alternate sources of M3 data are available from the private sector.
As of 4 November 2009 the federal reserve reported that the U.S. dollar monetary base is $1,999,897,000,000. This is an increase of 142% in 2 years. The monetary base is only one component of money supply however. M2, the broadest measure of money supply, has increased from approximately $7.41 trillion to $8.36 trillion from November 2007 to October 2009, the latest month-data available. This is a 2-year increase in U.S. M2 of approximately 12.9%.
Forex Trading Techniques
Foreign exchange is a dynamic and demanding investment area, where only a true comprehension of the intricacies and complexities of the market can make your capital grow every day. Of course there is no sure shot forex trading technique for success in the currency exchange market however, here are some basic techniques to formulate a good trading strategy.
Calculate Your Risk Tolerance
As forex trading involves high risk it is important to decide the kind of risk one will be able to tolerate and be comfortable with. The trading size can be calculated before making the investment and it is based on the risk tolerance and profit or loss targets. In forex trading, some currencies are more volatile than others and the more conservative traders follow money and risk management rules strictly in order to avoid losses.
Follow the Trend
The current market trends give a good idea for all good forex trading systems. The investor should have a cognizance of moving averages and the government policies in order to identify and follow trends. It is necessary to decide prudently the market you want to invest in. As the forex trading runs for 24 hours a day it is not possible to monitor and trade in all of the markets at all times. The European and US markets are the most liquid markets, but the profit made solely depends on the trading plan and strategies. Currency markets undergo huge trend changes when the fundamental consensus is extremely bullish or bearish.
Calculate Your Risk Tolerance
As forex trading involves high risk it is important to decide the kind of risk one will be able to tolerate and be comfortable with. The trading size can be calculated before making the investment and it is based on the risk tolerance and profit or loss targets. In forex trading, some currencies are more volatile than others and the more conservative traders follow money and risk management rules strictly in order to avoid losses.
Follow the Trend
The current market trends give a good idea for all good forex trading systems. The investor should have a cognizance of moving averages and the government policies in order to identify and follow trends. It is necessary to decide prudently the market you want to invest in. As the forex trading runs for 24 hours a day it is not possible to monitor and trade in all of the markets at all times. The European and US markets are the most liquid markets, but the profit made solely depends on the trading plan and strategies. Currency markets undergo huge trend changes when the fundamental consensus is extremely bullish or bearish.
Forex Trading Strategy
A good forex trading strategy can mean the distinction among failure and success.
No sane individual would jump into the forex marketplace blindly. You might too set your cash on fire if that's what you're going to accomplish. Sensible investors study the market carefully first, learn the ins and outs of currency buying and selling -- and even then, before they launch into it. they devise a smart forex trading strategy.
The marketplace is continuously changing and is not always predictable true. But you still need a strategy, a single that allows for unknowns and surprises.
No sane individual would jump into the forex marketplace blindly. You might too set your cash on fire if that's what you're going to accomplish. Sensible investors study the market carefully first, learn the ins and outs of currency buying and selling -- and even then, before they launch into it. they devise a smart forex trading strategy.
The marketplace is continuously changing and is not always predictable true. But you still need a strategy, a single that allows for unknowns and surprises.
Safe Forex Trading
Establishing a safe Forex trading strategy is essential if you want to successfully trade on the Foreign Currency Exchange Market.
Developing a good trading strategy requires practice so it's important that you choose a Forex broker who offers a demo account that will allow you to trade without risking any money.
The old saying practice makes perfect may be true but it's also worth bearing in mind that a demo account and a live account are two very different animals.
While using a demo account, you may be inclined to make decisions that you would not make when risking your hard earned cash. So developing a good Forex trading strategy depends on more than just practice. Proper market analysis taking into account all underlying factors and the ability to spot trading signals will be crucial if you want to be successful.
Forex trading is risky business and it is not recommended for gamblers. Learn the business before you commence trading, and continue to learn as you go along. Trading requires discipline, so accept that you will have losses as well as gains, and that the object of the exercise is to gain more than you lose, over time.
Your strategy will involve choosing currency pairs the price you enter and leave a trade, and the trading hours you choose. These are all things you will learn with experience, but before you even get this far you will have to make some very good decisions before you start Forex trading.
Choose a broker with a good trading platform. You will need tools that provide you with good technical and fundamental analysis to help you develop your strategy. Make sure the broker you choose is registered with the appropriate regulatory authority.
Developing a good trading strategy requires practice so it's important that you choose a Forex broker who offers a demo account that will allow you to trade without risking any money.
The old saying practice makes perfect may be true but it's also worth bearing in mind that a demo account and a live account are two very different animals.
While using a demo account, you may be inclined to make decisions that you would not make when risking your hard earned cash. So developing a good Forex trading strategy depends on more than just practice. Proper market analysis taking into account all underlying factors and the ability to spot trading signals will be crucial if you want to be successful.
Forex trading is risky business and it is not recommended for gamblers. Learn the business before you commence trading, and continue to learn as you go along. Trading requires discipline, so accept that you will have losses as well as gains, and that the object of the exercise is to gain more than you lose, over time.
Your strategy will involve choosing currency pairs the price you enter and leave a trade, and the trading hours you choose. These are all things you will learn with experience, but before you even get this far you will have to make some very good decisions before you start Forex trading.
Choose a broker with a good trading platform. You will need tools that provide you with good technical and fundamental analysis to help you develop your strategy. Make sure the broker you choose is registered with the appropriate regulatory authority.
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