Asian forex markets

Tuesday 14 April 2009

Asian markets and currencies in moving yen because Japan is an economic engine for the region. Economic problems and / or political instability in individual countries, often have a strong pressure on Japanese companies and banks that have a lot invested in this region, and therefore instability in Asia undermines yen.

Japanese stock market: When NIKKEI falls, yen usually also falls, as investors away from Japanese assets, and vice versa. Moreover, since Japanese banks use large packages of its shares as part of the capital structure, with the fall of the Japanese NIKKEI weaker banks.

Japanese market for government bonds: the 10-year Japanese government bonds (JGB) typically generate revenues when the economy stumbles and falls NIKKEI. As the price of bonds is growing, profitable spread between the U.S. Securities and JGB is expanding, and money spent in the stock market in bonds, tend to go abroad, giving the yen more push down. If the price of bonds falls, it often happens when international investors have fully come out of yen-denominated assets, which also weakens the yen.

Japanese current account and trade performance: The market assumes that if the Japanese trade surplus will be large, and if there will be fluctuations in the figures, the impact would be minimal. And even if the crisis in Japan is declining, the balance is definitely a great help to yen.

Investment capital: The indicator of economic health, observed the Bank of Japan. This is another tip for corporate investment in plant and equipment, a key factor for long-term economic growth.

Tankan review: a quarterly business review secret corporate sector, produced by the Bank of Japan. A key indicator of the health of the corporate sector. Of leading indicators of employment and capital investment.

Online forex

Many centers allow dealing in forex through their website. However, this method is not stable, it can always pass break, or your browser again to start fail and you miss an important point of sale. Much more convenient to use special software, but you will always be available online forex, if you are traveling.

Conceit - a trader's worst enemy

Friday 10 April 2009

Among the various problems faced by the trader when trading in the forex, there is the problem of arrogance. It appears that when a person takes any action one way, it is very difficult to switch to another if necessary. The difficulty is that, privyknuv to something a good reading of this, people think that it not be difficult to quickly and successfully pereuchitsya and learn another thing, especially if a man think that it is not very different that in which he very well understands.
As an example, deliver the skill of driving, as well as in trade, too, need to acquire skills that «automatically» to follow the system. It is honed action makes a successful trading.
So what is going on Driving a car? First, people act slowly and carefully, trying to carefully monitor every detail. With experience, he developed driving skills, that is now a man does not need the stress completely for all to follow, many of the actions carried out by «automatically».
Compare the process of driving to the sale. In trading the same way at first is the accumulation of experience, then move to the «Automatic» Implementation of most action.
But sometimes such moments come when you need to change strategy, because it is most consistent with a sudden come to change the market. When such moments, you'll need as soon as possible to adjust and learn to use a new strategy, that trade was good. At first glance, it seems that it's very easy and people do not put sufficient effort to re-learn a new strategy because they believe that if successfully mastered the previous, it does learn quickly and easily .... The problem lies in that all think that way.
Now I will try to prove that it is not so ...
Consider the example of driving a car. Consider a situation where people learned to drive a car with automatic transmission, and used this skill for 10 years. Maybe he needs to learn to drive a car with manual gearbox .... Even despite the fact that, in principle, a person can drive a car, he will have many difficulties. Man is constantly mess in the action as it takes over the top arrogance .... The old method will always be reminded of, as a person would be a great desire to do everything as before. On the most cautious people sometimes forget, but it is fraught with bad consequences ...
To effectively learn a new method, you need to begin to cease to use the old way, and then learn new ways. We need to re-start training and do not expect that because you very well know how to use the old way, you can easily learn a new one. Pereuchivatsya sometimes more difficult than starting from the beginning, because it is very difficult to change old habits.

The term Forex (stock market forecast forex forex strategy PIF) is an acronym of English expressions Foreign Exchange Operations, which means "currency conversion transactions." This kind of operation constitute a significant proportion of the world financial market. (Where to invest money, online trading, financial news) Turnover of the U.S. stock market with a volume of 300 billion dollars a day yields Forex about 3 times. (Forex book forex market, metatrader, dollar exchange rate) is estimated Wall Street Journal, in September 1992, the volume totaled around $ 1 trillion. dollars a day (in the currency broker). Today's Forex image of a once in March 1973, the participating countries (the stock market, forecast forex forex strategy, PIF), the EU rejected the system of fixed exchange rates. (Where to invest money, online trading, financial news) This historic event has allowed a realistic assessment of the value of currencies of leading world powers. In essence, ended the logical chain, which until then had been impossible to properly assess the country's balance of payments. (Where to invest money, online trading, financial news) demand has been asked to adjust the sentence. (Currency converter, broker)

Major currencies, comprising the bulk of the market Forex, is not difficult to guess. (Forex book forex market, metatrader, dollar exchange rate) they are the calling card of those countries that dictate the rules of "game" the rest of the world. This British Pound Sterling, Swiss Franc, Japanese Yen, Euro, came to replace the German mark, and, of course, the U.S. dollar. However, Forex is not a "market" in the traditional sense of the word. (Forex book forex market, metatrader, dollar exchange rate), he has no specific place of trade, such as currency futures. Trading occurs over the telephone and through computer terminals simultaneously in hundreds of banks worldwide. (Currency broker) Other (stock market forecast forex forex strategy, PIF), a significant difference is that the Forex market operates around the clock throughout the work week. (Where to invest money, online trading, financial news) Almost in each of time zones (London, New York, Tokyo, Hong Kong, Sydney) has dealers willing to exchange one currency for another. Another advantage of the market Forex - is the use of marzhevoy trade (margin trade). For example, a transaction amounting to 100,000 U.S. dollars to make a deposit (margin), ranges from 1 to 10% of the amount of the contract. (Where to invest money, online trading, financial news) This principle was established a name - "the credit (market forex books forex, metatrader, dollar exchange rate) shoulder." (Currency broker) Today, the financial intermediaries most popular value of leverage is the ratio of 1 to 100.

The composition of the foreign exchange market is diverse: banks, multinational corporations, brokerage houses, small companies and private investors. The large quantity and (forex book forex market, metatrader, dollar exchange rate) (stock market forecast forex forex strategy, PIF), the diversity of financial and credit institutions and investment permits in each case choose the most suitable technology transactions and the most appropriate conditions - such as the size of the deposit, the minimum amount of the transaction, leverage, commissions, etc. (Currency broker) To understand what is driving the market Forex, (where to invest money, online trading, financial news) must be paid to those who created and maintains today. As we have noted (forex book forex market, metatrader, exchange rate dollar) exchange is a kind of business cards. This act states determine the current value of their currencies in the market. (Currency broker) components (the stock market, forex forecast forex strategy PIF) factors of these actions are the development of the economy, domestic and foreign policy, the actions of government central banks. On the Forex market, you can talk a lot - and at the same time do not say anything. We try not to bother the reader, first time, faced with the market Forex, complex terms. Recall only that the high liquidity of the market, on the one hand, it attracts investors from all over the world, but on the other hand, makes it one of the riskiest occupations in the already arduous life. (Forex book forex market, metatrader, dollar exchange rate) and this should not be forgotten. (Currency broker) (where to invest money, online trading, financial news) (stock market forecast forex forex strategy, PIF)

Suppose that the magazine is now in the hands of people who knows about the Forex market, only by hearsay. One can understand his desire to increase their wealth with the help of the foreign exchange market operations. (Forex book forex market, metatrader, dollar exchange rate) the attractiveness of them do not hold. (Where to invest money, online trading, financial news) Note only that, even if, before the real auction is not come, you not only did not lose, but can confidently say that "came out of the market dry." Otherwise, the responsibility for everything that happens to you after that, will fall entirely on your shoulders. (Currency broker) (stock market forecast forex forex strategy, PIF)

Becoming a party to the market Forex - thus becoming the trader, currency speculators. (Forex book forex market, metatrader, dollar exchange rate) stereotypes of the past 70 years in our country, describes as illegal speculator. Well, for the definition of "currency" in his time could shlopotat to full reel. Thus, the dictionary SI Ожегова, 1970 edition, clearly interpreted the term "speculation": "criminal purchase and resale of private individuals products, consumer goods, property, assets, etc. in order to gain (usually using the difference in prices, illegal, and so improve their section). (Currency broker) The term "speculator" is rooted in the distant past. Translated from Latin it means "observation", which is something very good is the man. So do not hesitate! (Stock market forecast forex forex strategy, PIF)

Do currency speculators no discrimination based on sex. (Forex book forex market, metatrader, dollar exchange rate) (where to invest money, online trading, financial news) Along with the strong floor, shoulder to shoulder, no less in sharpness and сообразительности, work and women. The New York Stock Exchange (NYSE) will always be remembered Muriel Zabert - the first woman, won in 1960, its own place on the stock exchange (forex book forex market, metatrader, dollar exchange rate) and later based in the United States a major brokerage firm. Basic operation trader is buying and selling currencies. Arithmetic is simple. Its meaning is to first buy a cheap, then sell подороже. Let all of (the stock market, forex forecast forex strategy PIF) procedure. Buying Japanese yen at the exchange rate of 109.55 to U.S. $ 1.000 and multiplying the result by the amount of leverage 100, we get 10,955,000 yen. Open position was established at 1,000 yen in U.S. dollars. To complete the operation, it is necessary to return the 1,000 dollars back. (Where to invest money, Internet Trading, Financial News) When you change the rate at 109.37 yen for the purchase of 1,000 U.S. dollars will have to spend 10,937,000 yen. Obtained as a result of this (forex book forex market, metatrader, dollar exchange rate) operation the difference in the amount of 18,000 yen will be your profit. (Currency broker) At the close of the position of 18.000 Japanese yen will be converted to 165 U.S. dollars at the rate of closing of 109.37. (Forex book forex market, metatrader, dollar exchange rate) If you change the course of yen in the opposite direction you are, accordingly, will lose money. To reduce risk, will have to be patient and come to grips with learning. (Stock market forecast forex forex strategy, PIF)

I suggest 3-4 months to sit at the monitor on a demo account. Forex you need to experience. The knowledge that you gain during this time, save your money. Recommend a company as a financial intermediary does not want and I will not.

Well, at last - unless a few tips:
Does not strive to make all the money at once; (forex book forex market, metatrader, dollar exchange rate)

always be prepared for losses and take them with dignity, Analyze, (where to invest money, online trading, financial news)

foreseen with the amount that you can afford to lose;

no open positions for the entire deposit (the stock market, forecast forex forex strategy, PIF)

Do not let gambling away your money;

remember that the money - it is just money, your life is much more important. (Currency converter, broker)

The market Forex (Forex) - the interbank market, launched in 1971, when international trade shifted from fixed to floating exchange rates. This rate of one currency relative to another is determined by the most obvious way - with the exchange ratio between them, to which both parties agree.

The market by volume, surpassing all others. (Forex book forex market, metatrader, dollar exchange rate) (where to invest money, online trading, financial news), for example, daily global securities market is approximately $ 300 billion, while Forex market is estimated to be 1-3 trillion dollars in day. (Currency broker) (stock market forecast forex forex strategy, PIF)

However, Forex is not a "market" in the traditional sense of the word. He has no specific place of trade, such as stocks or currency futures. In the Forex market trading occurs over the telephone and through computer terminals simultaneously in hundreds of banks around the world.

In addition, futures and stock markets have one more significant difference, while the restriction - trading was suspended at the end of the day and resumed only next morning. However, if you sell on the Russian market (forex book forex market, metatrader, dollar exchange rate) and some significant market developments in the United States, the morning opening of the market may not be quite like you expected. (Currency broker) (where to invest money, online trading, financial news) (stock market forecast forex forex strategy, PIF)

Forex market operates 24 hours a day, and exchange throughout the working week does not end. Almost each time zones (ie, in London, New York, Tokyo, Hong Kong, Sydney, etc.) has dealers willing to quote currencies. (Stock market forecast forex forex strategy, PIF)

Forex Market Terminology
ASK - offer price, on which the transaction to buy (the stock market, forecast forex forex strategy, PIF)

BID - Bid, in which the transaction for the sale (forex book forex market, metatrader, dollar exchange rate)

COMMISSION - (commission) fee for maintaining the operations of the broker on behalf of a client as an agent.

FLAT (SQUARE) - (closed) "neutral" position when closed all the positions. (Currency converter, broker)

GTC (Good Till Cancelled) - (well not yet canceled) order (warrant) to buy or sell currency at a fixed price or worse. Order remains in effect until its execution or cancellation of the customer. (Where to invest money, Internet Trading, Financial News)

LIMIT ORDER - (limited order) available to the broker for the purchase of certain lots of tools and assets for a specific price or lower it, or sell at the specified price or better. Specified price is called a limited price (limit price).

LOSS - (loss, loss) decrease in invested assets resulting from operations, or excess of expenditure for the operation of the income derived from it. (Stock market forecast forex forex strategy, PIF)

LOT - a certain number of units or amount of assets (currency broker) adopted for the transaction in the market for a particular instrument (usually the number of units in the amount of lot 100). (Forex book forex market, metatrader, dollar exchange rate)

MARGIN - (margin, security) the amount of money or a certain number of securities that an investor must deposit with the broker in providing loans for an investment. This amount represents the cash collateral or marzhevom pledge to the investor's account, which provides cover potential losses that may occur when marzhevoy trade. (Where to invest money, online trading, financial news)

MARGIN ACCOUNT - (marzhevoy expense) account, on which the client obtains a loan from the broker / dealer for transactions.

MARGIN CALL - the requirement for additional security. (Currency broker) Requiring the client to deposit money from a broker in the implementation of financial transactions, when the amount of margin is reduced below the minimum level set by the market or the firm.

MARKET ORDER - (market order), available to buy or sell a certain lot of tools and the volume at which a broker executes it at the best price available at the time of receipt of order. (Currency broker) (stock market forecast forex forex strategy, PIF)

MARKET PRICE - (market rate) in an open market is dynamically changed by the prices of buyers and sellers on a particular market-based instruments. In an exchange - the last announced price. (Forex book forex market, metatrader, dollar exchange rate)

OFFER - the offer price to the seller. Offer to sell for a certain price.

OPENED POSITION (TRADE) - (open position) the market volume of contracts for uncompleted transactions. When playing at improving the position is called the "long", when playing for a fall - "short". (Where to invest money, online trading, financial news)

ORDER - (order) available to the broker to buy or sell a certain lot of tools and the volume of a given course.

PIPS (POINT) - (pips, para), the last figure in the writing quotes (1 pips = 0.0001). (Stock market forecast forex forex strategy, PIF)

PROFIT (GAIN) - (profit, profit) positive result from an investment or business operation after the cleaning costs for its implementation.

REALIZED PROFIT / LOSS - Profit / loss on settled (closed reverse transaction) positions. (Forex book forex market, metatrader, dollar exchange rate)

RESISTANCE - (resistance) level of prices at which the intensive selling can be suspended or expand a tendency to increase.

SETTLED (CLOSED) POSITION - (closed position) to resolve the market position for which a reverse transaction, and calculated.

SPREAD - the difference between the price of demand and cost proposals (currency broker) (stock market forecast forex forex strategy PIF) (where to invest money, online trading, financial news)

STOP-LIMIT ORDER - (A stop-limit order), available to buy or sell a particular instrument and a lot of volume, but only if the price reaches a specified level. Usually a combination of stop orders and limit-order.

STOP-LOSS ORDER - (stop-loss order) available to buy or sell currency at a fixed price or worse. This warrant is usually exposed to limit losses if the market moved in a direction opposite the expected. (Forex book forex market, metatrader, dollar exchange rate)

SUPPORT - (support) price level at which intensive buying can be suspended or expand a downtrend.

TREND - created as a result of various factors, the direction of movement of prices. (Stock market forecast forex forex strategy, PIF)

UNREALIZED (FLOATING) PROFIT / LOSS - non-profit / loss, unrealized until the position is not addressed, ie by a reverse transaction. (Currency broker) (where to invest money, Internet Trading, Financial News)

USEABLE MARGIN - (available margin) the amount of funds to marzhevom be available for the calculations on the results of ongoing transactions. Calculated as the difference between the current balance on the account, taking into account unrealized profits and the amount of funds frozen under the cover open positions.

USED MARGIN - the amount of funds on the account frozen under cover potential losses on open positions. (Where to invest money, online trading, financial news) is a tool for management of customer risk when playing on the terms marzhevoy trade. (Currency broker) (forex book forex market, metatrader, dollar exchange rate) (stock market forecast forex forex strategy, PIF)

Practical advice
Here are some practical tips and unwritten rules, the existing players in the market Forex.

Do not play against the market

Trend is your friend

The market always has a certain direction. It is important to understand the "mood" market and the majority of positions open in the direction of the prevailing trend. Other friends, other than the trend in the market no longer exists.

Buy dips - sell the rallies (forex book forex market, metatrader, dollar exchange rate)

Not Lovi peaks - Lovi strategy (where to invest money, online trading, financial news) (stock market forecast forex forex strategy, PIF)

The first assertion is more playful nature of axioms. The main thrust of the market just is to buy at the bottom and sell the top. It is important to correctly identify the time of entry into the market - where low, and where the top. For the novice trader should be to try to determine rather than the top or bottom of the current trends and to understand the dominant mood of the market and build their game on that. In this sense, the latter assertion is in keeping with the previous ones. In order to successfully play in this market should be more likely to anticipate the expectations of its participants at any given time, rather than build the "right" with the academic and technical points of view forecast market movements.

Are not traded on a schedule - a decision must be mature (the stock market, forecast forex forex strategy, PIF)

Pre-defined script action (forex book forex market, metatrader, dollar exchange rate)

Take Action discipline (currency converter, broker)

A very important point in the trade is to define the moment of entry into the market, as well as, of course, and exit the trade. Do not enter the market with an unclear situation or, if occurring fluctuations do not fit in any of the expected scenario, and if possible, try to fix the previously open position, as it is at times chaotic traffic are the greatest risk of loss. The bad habit is, when the novice trader, sat down for the computer starts convulsively search tool and the direction in which you can open. The beginning of work is in this case, a superficial analysis and a desire to begin work. " Serious analysis - is also working with the most important stage. Before opening the position you need to determine for themselves the level preferred to start the trade, to monitor the trend and enter the market in case of convergence trends with your expectations. Sometimes the case is not even one day. And one more: to define a plan of action with a warrant, it is important to adhere to those decisions prior to the closing position. Early or late entry into the market, change orders without good reasons often leads to unnecessary losses. (Currency broker) (stock market forecast forex forex strategy, PIF)

Ride on profits long. Cut off losses short (forex book forex market, metatrader, dollar exchange rate)

At the very least - equal loss and profits

These two statements refer to the crucial issue - risk management at work in the market Forex. Beginner trader, saw a small profit on the position, often immediately grabs her and at the same time, long can not be resolved to close loss-making position in the hope of a favorable change of course. (Where to invest money, online trading, financial news) This is a major cause of losses at the initial stage. It is important to measure and approximate volume of closed, gains and losses, and the same goes for the placement of stop orders. Otherwise, in case of permanent loss of the excess profits long-term perspective will lead to undesirable results. Try "difficult" to part with lucrative positions with ease and close positions with a reasonable loss of motion at the slightest discrepancy rate with the expected scenario. (Currency converter, broker)

Limits the number of data (stock market forecast forex forex strategy, PIF)

Do not read much, read the useful (forex book forex market, metatrader, dollar exchange rate)

Do not mix trade with academic views

One of the most important points is to identify sources of information to be used by a trader with the transaction. Information on the market a lot, it is necessary to identify those sources that can be useful when conducting transactions. It is important to determine what to use and what to read to understand the market and not to rush to find any information. (Currency broker) Not all of the assessment, information sources and individual instruments are trustworthy. There is a need to create an effective trading system and follow the signals. And one more: the actual purchase or sale is not the same thing that the discussion about the market, even if it is correct to the academic point of view. Some people are selling, while others talk, and usually different people.

Composure and stay calm (which to invest money, online trading, financial news)

Do not hurry to sell - the market will never end (stock market forecast forex forex strategy, PIF)

And the last. You must always keep ourselves in his hands. A huge amount of loss occurs due to loss of self. And too much euphoria, with a profitable position or a total profit on the account is not less dangerous than the nerves and Put your hands in the loss. Today, you lose, but you always have a chance to win. Recorded a loss or a good profit, do not try to immediately enter the market again to "earn more" or "aftergame. Try to cool down and reflect on the results, and only then with a cold head again enter the market. (Currency broker) (forex book forex market, metatrader, dollar exchange rate) (stock market forecast forex forex strategy, PIF)

Trading Terminal

Company LiteForex Trading Limited for the work in the FOREX market offers its customers the most popular and powerful trading platform - MetaTrader 4 developed by rommiyskoy MetaQuotes Software Corporation.

Client terminal MetaTrader 4 is designed to carry out trade operations and technical analysis in real time while working in the markets of Forex, CFD, Futures. Several types of embedded warrants allow flexibility to manage trade activities.

In addition to the large number of technical indicators and linear instruments in a terminal built their own trading strategies programming language MetaQuotes Language 4. Using this language, you can create a mechanical trading system (Counselors, Expert Advisors), custom indicators (Custom Indicators) and scripts (Scripts). Advisers are able to in real time to analyze the situation on the market, make decisions, make orders and open positions without the participation of the trader. Custom Indicators, as well as technical, can analyze the market situation and generate various signals. And the scripts are intended for one-time performance of any action.

Client terminal MetaTrader 4 is:
Work with the tools market Forex, Futures and CFD;
Various technologies of execution of warrants: Instant Execution, Request Execution, Market Execution;
the confidentiality of ongoing operations;
unlimited number of schedules;
support for different time periods of graphs;
a large number of technical indicators and line tools;
Experts, Custom Indicators and Scripts;
Export data in real time on the protocol DDE;
signals of system and trading events;
prompt receipt of the news;
multilingual interface;
internal e-mail;
printing schedules.

Forex Market

Market exchange rates, known as the Forex, or FX, - the largest financial market in the world. Its turnover exceeds $ 1 trillion a day, more than 30 times more than the total of all U.S. stock markets.

«Exchange» implies the simultaneous sale of one currency and buying another. Currencies are usually traded in pairs, for example, the euro / dollar (EUR / USD) or U.S. Dollar / Japanese Yen (USD / JPY).

There are two reasons why the buy and sell currencies. Approximately 5% of daily turnover on the Forex market accounts for companies and government agencies who buy or sell goods and services in a foreign country or must convert profits earned in other countries, the national currency. The remaining 95% of turnover - it is a transaction for profit, also called speculation.

The greatest interest for speculators are the most common (most liquid) currencies, ie «Core». To date, over 85% of all transactions constitute transactions in major currencies, which include the U.S. Dollar, Japanese Yen, Euro, British pound, Swiss franc, Canadian and Australian dollar.

Trading on the Forex market round-the-clock starts every day in Sydney, then moves around the globe, along with a light day and the beginning of the major financial centers - first to Tokyo, then London and New York. Unlike other financial markets, the Forex market traders have the opportunity to play on the price fluctuations caused by economic, social and political events, at any time of day and night.

Forex is considered to be over, or «interbank» market, due to the fact that each transaction is concluded between the parties by telephone or using electronic networks. Forex Trading is decentralized, and is not subject to restrictions on exchanges, as happens in the stock or futures markets.

Forex Quotes

At first glance, reading the currency market quotes may seem difficult, but everything comes into place when you remember two basic rules: 1) the first pair - this is base currency, and 2) the value of the base currency is always equal to 1.

U.S. Dollar - the central currency market Forex, and so is the base for many quotations. For the major currency pairs is to be USD / JPY, USD / CHF and USD / CAD. The data, along with many other quotes are defined as the price of one U.S. dollar (USD) in units of the second currency in the pair. For example, the quotation of USD / JPY 120,01 means that one U.S. dollar is equal to 120.01 Japanese yen.

When the U.S. dollar is the base currency, the quotation is growing, with an increase in the value of the dollar in relative terms, and the cost of the second currency - falls. If the quotation already mentioned pair USD / JPY rises to, say, to 123.01, the dollar will become stronger because of it you can now buy more yen.

There are three exceptions to this rule - the British pound (GBP), Australian dollar (AUD) and Euros (EUR). In the case of such currencies, everything is done with an accuracy up to the opposite: quotation 1,4366 GBP / USD means that one British pound equals 1.4366 U.S. dollars.

In these three pairs, where the dollar is not the base currency, the increase in quotes means weakening the dollar, since the purchase of one unit of the base currency, whether it be the pound, euro or Australian dollar, would require more U.S. dollars.

In other words, the increase in quotes means strengthening the base currency, and vice versa - reducing quotes indicates a weakening base currency.

Couples in which there is no U.S. dollar are called cross-currency quotes, but the principle will not change. For example, in quotation EUR / JPY 127,95, one Euro is equal to 127.95 Japanese yen.



In the Forex market you will often see the double quotes, consisting of a double price - buying and selling. The first - the price at which you can buy the base currency (while selling a second currency) and the second - the sale price of the base currency (and buying the second currency).

First Steps

Thursday 9 April 2009

The first step on the arduous path of becoming a successful trader must become an introduction to the structure of forex market, its main strengths and weaknesses, an understanding of its pitfalls, acquaintance with the methods of analyzing and forecasting the market, the study of the principles of the market, develop their own trading strategy.

A brief excursion into the international market Forex, as well as a description of work, methods of analysis and prediction can be found on our website under "About the Forex market. Unfortunately, the information you find on our site, only a small proportion of what we are able to select from all the information that exists today. However, this information will help you make the first steps. In the process of learning and development of the trader, you will receive much information as you want or not - but in any case, you will learn to provide for themselves the most important and necessary.

The second step in the Forex market should be to use the acquired knowledge into practice - trading strategies - the study and use of trading platform, receptions Production / withdrawal of warrants, the opening / closing positions, modification of orders, ability to see and draw trends, levels of resistance and support, the ability to enjoy levels of Fibo and importantly - practice and correction of your trading strategy.

At this stage it is necessary to practice in the virtual school bill. Training Account will enable you to develop your skills without any financial risk with maximum efficiency, because to make any money or pay for use of the school account is not required. Detailed information about opening an account the school is located on our website in the "demo account".

Step Three, when, after studying the work on the school run, get positive, and even dizzy result, many acquiring a false self-confidence, go to the real market and fail. Therefore, you will have first priority - actually receive a stable positive results. Will be crucial here - the knowledge, ability to work on its trading system, a clear adherence to rules, the iron logic, psychological stability, a lack of respect for the system of greed and money management.

In order to help new traders to address this challenge, our company developed two special types of accounts - MINILIte and MIDILite.

Account type MINILite allows beginner trader to start work on a real Forex market with real money, but the gains and losses on this account will be minimal. Stable income is unlikely to be able to cover the cost of Internet service providers.

Low initial deposit, which will lose a pain for any trader, will allow you to overcome the difficult stage of transition from the school accounts for a real account.

Due to the fact that all the Lite group accounts from being LiteForex cents, a trader learns to interact with large amounts of the number of zeros so that it works with the same amount, but in dollars, which will help to avoid further psychological pressures at work on the larger accounts .

The same type of account MINILite can be used by traders operating at the stage of testing of different mechanical trading systems.

Account type MIDILite - this is the next step beginner trader. While working on this account, the trader will learn to carry out its plan for profitability, limited to relatively minor amount of risk.

After three stages - from the school accounts to the account MIDILIte, you can make a withdrawal - whether you are ready to work successfully in the Forex market or not, and, finally, to choose for themselves by "professional" category - MAXILite, either in MEGALite Depending on your financial capabilities and interests.

Spread Betting Bonds - Futures

Wednesday 8 April 2009

As the debt instrument market government bonds constitute one of the most active trading of financial futures instruments in the world.

Among the most popular bonds offered by GFT Global Markets, U.S. Treasury securities (US Treasury Bonds) and UK Gilts - major trading government bonds with a limited spread and competitive profits from GFT Global Markets.

CONTRACT SPECIFICATION Spread Betting Bonds - Futures


Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. For nevalyutnyh CFD Notional value of your transaction = Base Price * Number of CFD / ratio price movements.

Minimum / maximum size of the transaction

The maximum size varies depending on the base of liquidity, market conditions and the classified whether core market by GFT Global Markets as the market for non-working time ", ie outside of normal trading hours.

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP or in relation to trade in markets, where the main currency is not GBP.

Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

Minimum number of CFD (or "size") for the markets to GFT Global Markets is 100 for individual securities and 1 CFD for all other markets. For your information as an example of the minimum size of market transactions specified lot size of a framework market.

Trading with CFD is always with the "base" currency market base. That is, if you sell the U.S. action, trading is conducted in U.S. dollars at one per cent of the price movement.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of switching to "summer time".

Unless otherwise stated by the hours listed on London time.

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spreads

These spreads strife, depending on the liquidity of the market base, they also differ on the "fast market".

Spreads, these goods can be added to the market spread of basic market.

Spread Betting Commodities - Futures

Take advantage of price fluctuations on the most popular commercial markets, including markets for metals, energy and consumer goods. The low margin requirements and narrow spreads allowed to enter these markets without any additional fees.

CONTRACT SPECIFICATION Spread Betting Commodities - Futures


Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. For nevalyutnyh CFD Notional value of your transaction = Base Price * Number of CFD / ratio price movements.

Minimum / maximum size of the transaction

The maximum size varies depending on the base of liquidity, market conditions and the classified whether core market by GFT Global Markets as the market for non-working time ", ie outside of normal trading hours.

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP or in relation to trade in markets, where the main currency is not GBP.

Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

Minimum number of CFD (or "size") for the markets to GFT Global Markets is 100 for individual securities and 1 CFD for all other markets. For your information as an example of the minimum size of market transactions specified lot size of a framework market.

Trading with CFD is always with the "base" currency market base. That is, if you sell the U.S. action, trading is conducted in U.S. dollars at one per cent of the price movement.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of switching to "summer time".

Unless otherwise stated by the hours listed on London time.

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spreads

These spreads strife, depending on the liquidity of the market base, they also differ on the "fast market".

Spreads, these goods can be added to the market spread of basic market.

Financial corrections

The financial adjustment is carried out in the open positions at 01.00 or after 01.00 Moscow time. The following are examples of transfer rates. In view of futures markets CFD financial adjustments are not implemented.

As long as you hold the position of the night (ie, after 01:00 Moscow time.) Originate corrections to your account. The adjustments are calculated as follows:

f = (s x p x r) / d

where

f = daily fee funding

s = Your bid

p = the closing price determined GFT Global Markets

r = the appropriate rate proposals LIBOR, plus 300 basis points for long positions, or MINUS 300 basis points for short positions

d = number of days, ie 365 for the Index of Great Britain and Australia and 360 for all others

Long trading positions (Long) be debited for the amount of daily fees for funding

Short trading positions (Short) for credit in the amount of daily fees for funding

Spread Betting Stock Indices

With GFT Global Markets you have the opportunity to trade stock indexes at a lower cost. We offer indexes more than 20 countries, narrow spreads, low levels of initial margin, a number of non-stop markets and guaranteed stop-orders on all the proposed indices.

Index CFD allows to acquire a wide range of shares by one order, that is, you can conclude the transaction, taking into account the trends of the market, rather than any individual company.

CONTRACT SPECIFICATION Spread Betting Stock Indices

Rollover

For one-day rate of spread of transferable stock exchange index (ie, after 22:00 London time) charged + / - 3%, I have to pay for financing. The calculation is performed as follows:

f = (s x p x r) / d

where

f = daily fee funding

s = Your bid

p = the closing price determined GFT Global Markets

r = the appropriate rate proposals LIBOR, plus 300 basis points for long positions, or MINUS 300 basis points for short positions

d = number of days, ie 365 for the Index of Great Britain and Australia and 360 for all others

Long trading positions (Long) be debited for the amount of daily fees for funding

Short trading positions (Short) for credit in the amount of daily fees for funding

Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. Notional value of your transaction = Base Price * Proportion / ratio price movements.

Markets in a time

GFT Global Markets will lead the quotations of some markets outside of the normal trading hours. ( "outside time"). In the non-working hours may be the expansion of these spreads and the reduction of the maximal size of transactions. If an order is started after hours, and its size exceeds the maximum size of deals, some for hours of non-price performance of the order can be adjusted accordingly in order to accommodate the order entirely, except when the order is guaranteed by the order of stop loss. Spreads non hours listed in the table.

Our quotes "non-time based on changes in other indices available, but are not limited to:

- Changes in other financial markets, such as spot forex markets;
- On incoming information;
- The flow of orders to customers.
Market Out of Hours Times
UK 100

Germany 30

France 40

US Wall Street 30

US SPX 500

US Tech 100

Australia 200

Japan 225 21:00 - 08:00 London time

22:00 - 08:00 CET

22:00 - 08:00 CET

16:00 - 18:15 Chicago time

16:30 - 17:00 Chicago time

16:30 - 17:00 Chicago time

16:30 - 09:50 Sydney time

04:30 - 07:45 Singapore time

Estimated prices of futures markets

Calculations of rates for the futures Wall Street, NASDAQ 100, S & P 500, S & P / MIB and S & P / ASX performed on the basis of «special opening quotation», published by the relevant Exchange on the day of expiry of the futures contract. Also note that the estimated price can vary greatly in the extent to which the subject of bid or closure of the index produced the previous day.

The last day, which may be bidding on the markets Wall Street, NASDAQ 100, S & P 500 and S & P / MIB - the day preceding the day of the calculation of the estimated price.

FTSE 100 Futures: Futures settlement price for the FTSE 100 is calculated by FTSE International, taking into account the intraday auction (usually from 10:10 to 10:15) on the London Stock Exchange on the last day of reference for bidding.

CAC 40 Futures: Settlement price is the closing of the last business day in the form of mean values (rounded to the tenth), CAC 40 index values, calculated and distributed in the interval between 15.40 and 16.00 (including the first index value, distributed after 16.00).

Futures DAX 30: calculated on the basis of the value index, based on the prices of trades on Xetra ® share of the composite index. Intraday auction starting at 13:00 average time on the last day of reference for bidding.

Futures Eurostoxx 50: calculated on the basis of the average of index values, calculated as the interval between 1:50 and 12:00 average time on the last day of reference for bidding.

Futures IBEX 35: calculated on the basis of average market value of cash flow from 16:15 to 16:45 CET the average time on the last day of reference for bidding.
Nikkei 225 futures are calculated on the basis of Quotations Special Nikkei 225 Index based on opening prices of each part of the release, expressed as an index Nikkei 225 in the working day following the last day of reference for bidding.

Futures Hang Seng: The final settlement price shall be a number, rounded up to the first of a value price determined by Clearing House and should be the average of quotations Index Hang Seng, which are values every five minutes on the last day of reference for bidding.

Dividends

Below are the adjustments for CFD transactions with cash:

Buyers of credit to (the number of items, which was adjusted corresponding index x size).

Dealers charged by (the number of items, which was adjusted corresponding index x size).

Minimum / maximum size of the transaction

The maximum size varies depending on the base of liquidity, market conditions and the classified whether core market by GFT Global Markets as a «market for non-working time», ie outside of normal trading hours.

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP.
Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

The minimum percentage of working with GFT Global Markets is £ 1 (pound) (or equivalent currency). The size of the lot to the base exchange is the background and gives an idea of the minimum amount of stock transactions.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of switching to "summer time".

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spreads

These spreads strife, depending on the liquidity of the market base, they also differ on the "fast market".

Dividends on stock indexes

When an individual stock, a component of the money stock, pay dividends, it will have a balanced effect on the index of cash, known as «dividend index» or «influence index». GFT will adjust such accounts with the position of using the index, if the position remains open at the close of the principal cash market transactions on the day preceding the date of payment of dividend on shares of a compound.

GFT will lend to long positions and short positions debit (through cash adjustments):

Dividend index size of the position x

Weighted effect separate dividend shares will be calculated as follows:

The dividend index = Dividend per share x (Shares in index / index divider)

«Divisor index» varies depending on the indices. This value, adjusted basic rate for the repayment of the effect of fluctuations resulting, inter alia, as a result of the fragmentation of the shares, bonus issue of shares and replacing the stock components. This ensures comparability of the value index in dinamke time. GFT uses a variety of data sources to calculate the dividend index.

Index DAX 40 is not subject to adjustment, is the index of aggregate income, so all dividends paid out are reflected in the price.

The futures index is not to suffer such effects as the price of the expected dividends on the Futures already listed.

The real cost: GFT defines its cash rate indices based on the conditions of the futures markets. As a result, we include in the rate adjustment «true value» to reflect the cash price index derivative as compared to the price of the futures. The real value - is constantly changing variable, it changes during the trading day in accordance with the calculations of the current real value of GFT.

GFT will adjust the calculation of the internal real value at the close of the market cash transactions on the day preceding the payment of dividends on shares of a compound, it will reflect the dividend index.

Spread Betting Individual Equities

With a broad spectrum of our global shares you can buy or sell thousands of shares, not being the owner of the shares. GFT Global Markets offer you software for popular trade contracts for difference (CFD) with limited spread and low initial contributions, so that you have the tools necessary to profit in the increasing or falling markets.

GFT Global Markets offers thousands of CFD for shares in stock exchanges around the world.

CONTRACT SPECIFICATION Spread Betting Individual Equities


Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. For nevalyutnyh - Relative value of your transaction = Base Price * Number of CFD / ratio price movements.

Spreads

Spread GFT Global Markets is added to the basic market price of its proposal / offer spread and may vary depending on the existing core market liquidity.

Please note that market spreads can vary greatly, especially in the beginning and end of the trading day.

Minimum / maximum size of the transaction

These values - Standard, the maximum size is determined for each stock separately, depending on the source of liquidity and, if the shares of Great Britain, from the «normal market size».

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP or in relation to trade in markets, where the main currency is not GBP.

Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

The minimum percentage of working with GFT Global Markets is £ 1 (pound) (or equivalent currency). The size of the lot corresponding core market is the background and gives an idea of the minimum amount of stock transactions.

Rollover

All rollover, and related financial adjustments are carried out promptly at 22.00 or after 22.00 London time. The process of application of rollover is described in the examples.

On your day of the transaction (ie, after 22:00 London time) is + / - 3%-I financial adjustments to your account immediately after the closing of the stock market. The calculation is performed as follows:

f = (s x p x r) / d

where

f = daily fee funding

s = Your bid

p = the closing price determined GFT Global Markets

r = the appropriate rate proposals LIBOR, plus 300 basis points for long positions, or MINUS 300 basis points for short positions

d = number of days, ie 365 for the Index of Great Britain and Australia and 360 for all others

Long trading positions (Long) be debited for the amount of daily fees for funding

Short trading positions (Short) for credit in the amount of daily fees for funding

Dividends

Below are the current dividend rate adjustments:
Securities UK: Buy credited at 90% gross dividend
Sell debited to 100% of gross dividend
Securities USA: Buy credited at 85% gross dividend
Sell debited to 100% of gross dividend
Securities Australia: Buy credited at 70% gross dividend
Sell debited to 100% of gross dividend
Securities of euro area and the other, not the UK: Buy - sizes vary from country to country
Sell debited to 100% of gross dividend

Short selling

Short sales may be limited if, for example, the basic act is subject to a lack of liquidity.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of a change in the «summer».

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spread Betting Interest Rates - Futures

Interest rates on futures are closely linked to government bonds, and data contracts for difference allow you to take a position on the fluctuations in interest rates. Trade with GFT Global Markets, to gain access to key European interest rates with limited spread and competitive returns.

CONTRACT SPECIFICATION Spread Betting Interest Rates - Futures


Coefficient of movement = price markup on the price, which represents 1 single operating unit, which is calculated on the basis of the balance of profit and loss (P & L), the original and the variational margin. For nevalyutnyh CFD Notional value of your transaction = Base Price * Number of CFD / ratio price movements.

Minimum / maximum size of the transaction

The maximum size varies depending on the base of liquidity, market conditions and the classified whether core market by GFT Global Markets as the market for non-working time ", ie outside of normal trading hours.

Reports on the market indicate the usual minimum and maximum dimensions in GBP (British Pounds); currency equivalents apply in relation to the accounts are not in GBP or in relation to trade in markets, where the main currency is not GBP.

Restrictions in relation to the maximum size applicable at the opening, and at the close of the transaction.

Minimum number of CFD (or "size") for the markets to GFT Global Markets is 100 for individual securities and 1 CFD for all other markets. For your information as an example of the minimum size of market transactions specified lot size of a framework market.

Trading with CFD is always with the "base" currency market base. That is, if you sell the U.S. action, trading is conducted in U.S. dollars at one per cent of the price movement.

Trading Hours

These hours - normal hours, that GFT Global Markets trading in the market may change, such as during holidays and in case of switching to "summer time".

Unless otherwise stated by the hours listed on London time.

Normal working hours - from 22.00 Sunday to 22.00 Friday.

Spreads

These spreads strife, depending on the liquidity of the market base, they also differ on the "fast market".

Spread Betting Terms

The names of the currency pairs for the transactions to Spread Betting ending in "-sb" (EURUSD-sb, GBPUSD-sb, etc.).

Transactions for the purchase of Buy is committed to Ask price closed on the Bid price.
Transactions for the sale takes place on the Sell Bid prices closed down on the Ask price.

When you are trading in CFD, your PL you change the price of one item is equal to the cost of one item. To increase the PL as a multiplier you are using the Volume, ie number of "units" (stocks, barrels, ounces) that you sell or buy.

PL, it is FPL (floating profit / losess) for cfd, it is considered as last_trade price * volume * convert rate.

Accordingly, if you change the price (last trade) then pl change.

When trade SB factor is your bet (bet) on the change in the price of an asset at one point. If you draw an analogy - you bet - this is the number of lots that you buy.

The principle of performance is the same as a CFD. SB is really a type of contract for difference. However, the main difference between the SB and the contract for difference (CFD) is that the price of buying and selling in the markets rather SB includes the spread of GFT Global Markets, as the establishment of any commission. SB includes any commission.

Example 1:

Quote of XYZ is $ 100.00 - $ 100.05. Do you think that XYZ will grow. Do you buy 500 x XYZ.cfd $ 100.05. The price rose to XYZ 100.10-100.15. You sell 500 XYZ.cfd x 100.10.

Your income (excluding commission): 500 * (100.10 - 100.05) = 500 * $ 0.05 = $ 25

You can do the same thing, is not buying SFD, but SB, making a bid (buying) $ 5 per item. You could have bought for 100.05, sold at 100.10, earned 5 points. Your bid is $ 5 per item. Your PL = 5 * $ 5 = $ 25.

Example 2: SB on securities

Quotas set for GFT fluctuations XYZ, is 449,3-455,7.

XYZ tomorrow will announce its results for the second quarter. Assuming that the results are better than expected, you buy, make a bet £ 25. This means that for every penny to which the proposed stock price rises above the mark you will receive a 455.7 £ 25, and every penny to which the price falls, you lose £ 25. (This is equivalent to buying 2500 shares directly to the main market).

Night carryover fund (rollover)

When you hold the position of the evening, your bid «reopens», ie rose, and the next day again was called on the closing price (as determined from GFT), thus the outcome of profits or losses, as well as rolling fund to your account will be shortly after the closure of stock markets.

The calculations are made as follows: f = (sxpxr) / d, where

f = daily cost of financing

s = your bet (£ 25)

p = price of the closure, a GFT Global Markets (456 pence)

r = the corresponding LIBOR rate plus 300 basis points for long positions, or MINUS 300 points for short positions (4.50% +3.00%) = 7,50%

d = number of days (365 for UK shares, 360 for all others)

Long position (buying) deducted the cost of financing.
Short positions (selling) loans to finance the costs.

Thus, the financial outcome will be debited to your account equal to:

(£ 25 x 4.56 x 7.5%) = £ 8.55

«Reopening» was done at the price of 456 pence, so that your bid was closed at around 456 pence, you receive a profit £ 7,50; rate was re-opened at around 456 p.

At 7.00 the next day the results of XYZ actually were better predicted. At 8.30 am shares traded on the 476-477. Price set for GFT fluctuations XYZ, is 475.3 - 477.7.

You decide to take advantage and sell for £ 25 at around 475.3, so you close your bet.

You get profits of $ (475.3 - 456) x your stake £ 25 = £ 482.50. (After admission to the financial results and a profit of «pereotkrytiya», you get a net profit of (482.50 - 8.55 + 7.50) = £ 481.45).

Example 3: SB on metal

June. The prices of gold has recently risen, as speculators inflate them higher and higher. You decide that prices will continue to grow, and check the price of gold at the GFT.

The price of gold 680,0-680,7 GFT.
GFT price of gold is based on the main futures contracts.

You buy at ₤ 20 at around 680.7. And here you have to draw the attention that you put «in 0,1», ie If gold went up from 680.0 to 681.0, then it went up by 10 points, which corresponds to the profit of ₤ 200, with a rate of ₤ 20.

This rate, if it will remain open, will expire (ie, will be automatically closed) on 18 August. However, by early July, the price of gold exceeds ₤ 700, and our price is now 702,5-703,2.

You decide to close some of its positions and sells for ₤ 10 at around 702.5.
This will bring you profit (7025 - 6807) x your stake £ 10 = £ 2180.

You left open the remainder of your rate of ₤ 10 to the end of the market in August. Unfortunately, by that time, intervened suppliers, and the market ended at around 675.5.
With this rate of ₤ 10, you have suffered damages in the amount of (6807 - 6755) x 10 = £ 520.

Total trades:
SB on methodology - ₤ 20
Total income - £ 1660

As a result, the rate of ₤ 20 yielded a return of £ (2180 - 520) = £ 1660.

Key points when trading Spread Betting:

1. With Spread Betting CFD at virtually no difference. Who else likes to trade. In the UK there are nuances in the tax: for the CFD and SB trade may be different ways of declaring income, etc. In this regard, for example, at GFT UK trade SB user opens a separate account.

2. SB is not subject to commission. So what's earnings as a broker? The wide spread. For example at this point in the GFT for IBM.cfd quotation 129.98 - 130.00, and the IBM.sb 129.95-130.03

3. Both the CFD and Spread Betting - odinnakovy set of tools.