Today it is very hard to ignore the fact that forex market is the world's biggest financial market. Over the past few years, it has become the most popular market with trades amounting to more than USD 3 trillion every day. Generally referred as currency trading market, it always involves the combination of two currencies. For example- either you can buy Euro or sell US dollars, or you can buy and sale any other combination of globally accepted currencies.
In recent times, fx trading has gained huge popularity and turned out to be a very profitable money making option. If we look at the present scenario, it can be recognized as one of the most potentially rewarding types of investments available in the global market. Though this form of trading involves great risks but the potential to earn profits are enormous relative to initial capital investments. The major reason of growing recognition is its very low dealing costs, high leverage margin, 24 hours trading a day and high liquidity market. For example, with a $5000 account, you can make about $5000 per month.
Obviously it decidedly depends on the manner that you trade and the strategy you follow but good and experienced traders can double their money every month.
The key positive sign of fx currency trading that can help you consider it as a money-making affair can be its size. Its wide yet easily accessible size prevents almost all attempts by others to influence the market for their own gain. Consequently, when you invest in foreign currency market, you can be certain that the deal you are making has the same opportunity for profit as other investors do throughout the world.
So, if you are looking to get involve in this type of currency trading, it is always better to enjoy trading with the help of a forex broker. A forex broker can be the key person who can guide you to earn more profits from market, as a result it is always better to carefully select a right forex broker for right deal. Apart from all this, the next major fact about this form of currency trading is- in this form of trading there is no centralized location of foreign currency trading. With the help of various online platforms you can trade currency from any parts of the world. With the help of internet connection and active forex trading account you can easily trade in foreign currencies.
Today it can be considered as one of the few trading markets in the world that always provides you with opportunities to trade because of currencies strengthening or weakening. The supply and demand are the factors that determine the price in any market. Now when there are too many buyers and sellers, similar to the current situation in forex market, the price volatility can be much higher, market may be more dynamic and chances to make money can be even more. The price may go up and down more frequently and this dynamic nature helps in making decent money. Consequently, if you are looking to choose Forex as your business, its better you do not get worried about competition but must make sure you develop a proper strategy to earn money and enjoy good success in fx trading.
Tuesday, December 22, 2009
About Forex "Naked Trading"
If you hadn’t stayed in Forex trading platform for long and come across a Forex term of "naked trading" it’s for sure that it will be a big astonishment for you and your usual response will be "What"?
Is it possible to earn more by putting off the clothes? No, it’s not so it’s just a Forex term you don’t need to put off your clothes.
This means to the Forex indicators that is you should be well aware about the indicators status. By the term we mean that its always good to take full information about the trade market and analyze the influential factors of the Forex trading.
You must eradicate all the well-painted images of the market as portrayed by the indicators and put before you to attract your attraction and go through the true image of the trading position in the market.
This can be done by examining the price actions of various currencies of the world at the trading platform.
This also indicate that you remove the broker from the trading process and thereby see the crystal image of the trading buying and selling positions of the Forex market not just whatever they intended to show you.
The term "naked trading" means revealing the truth of the indicators that they really want to convey about the Forex trends and market situations.
The brokers and other traders say whatever they find it correct to spread among those who are unaware about the facts of the Forex trading.
This is good to examine and understand the Forex trading indicators by yourself and fetch the conclusions rationally without being influenced by any other opinions.
From the next time whenever you start to trade, take time to consider that whatever Forex examining indicators you are using are revealing the dependable information that will help you out to trade in the market.
It’s just a simple rule to overcome the trading hurdles lying before you while making trading decisions.
The article explains the meaning of the Forex term "naked trading". This means revealing the concealed buying and selling options of the market by examining the trading indicators.
Is it possible to earn more by putting off the clothes? No, it’s not so it’s just a Forex term you don’t need to put off your clothes.
This means to the Forex indicators that is you should be well aware about the indicators status. By the term we mean that its always good to take full information about the trade market and analyze the influential factors of the Forex trading.
You must eradicate all the well-painted images of the market as portrayed by the indicators and put before you to attract your attraction and go through the true image of the trading position in the market.
This can be done by examining the price actions of various currencies of the world at the trading platform.
This also indicate that you remove the broker from the trading process and thereby see the crystal image of the trading buying and selling positions of the Forex market not just whatever they intended to show you.
The term "naked trading" means revealing the truth of the indicators that they really want to convey about the Forex trends and market situations.
The brokers and other traders say whatever they find it correct to spread among those who are unaware about the facts of the Forex trading.
This is good to examine and understand the Forex trading indicators by yourself and fetch the conclusions rationally without being influenced by any other opinions.
From the next time whenever you start to trade, take time to consider that whatever Forex examining indicators you are using are revealing the dependable information that will help you out to trade in the market.
It’s just a simple rule to overcome the trading hurdles lying before you while making trading decisions.
The article explains the meaning of the Forex term "naked trading". This means revealing the concealed buying and selling options of the market by examining the trading indicators.
An Insight on the Growing Trend of CFD forex Trading
Contract for Difference (CFD) are traded on margin and there is always a better scope to get decent profit in the market. It can be defined as an agreement between two parties to exchange the difference between opening and closing value of a particular trade. The CFD trading allows profit form changes in prices of stock and shares and provides all the benefits of cash equity. It is a good tool of trading and provides an ample of opportunities to speculate on movements in the markets. As a trader you can trade any U.K and US share with market capitalization above £50M and $500M respectively from any part of the globe.
However, over the last few years the concept of contract for differences has gained enough popularity. In fact, many traders these days are practicing CFD trading. There are many reasons for gaining this wide recognition, however some of them are:
•It require low capital requirements- CFD trading is a type of margined trading, which means a trader only requires depositing a small percentage of the value, instead of having deposited the entire value of position. For example: with 10 % of leverage, an investor is required to deposit $1,000 to buy a CFD of $10,000 of shares.
•It offer good profit form UP & Down of the market:- If you are CFD trader then you can easily make a profit from both the up and down of market and buy a position on lower price and sell at higher price and vice versa.
•It doesn’t require any stamp duty- No stump duty is required to pay in CFD trading because no physical transaction exists and trader never actually owns the shares.
•It provides Stop-Loss Management- CFD traders can set up the automatic stop loss and limit order mechanisms. When stop loss and limit order figures are achieved, position will be closed and in this way trader can avoid losses.
Apart from all this, the concept has also gained more popularity among the investors, due to its flexibility. It is one of the most exciting financial products to trade. Adding to this, as a CFD trader you may even access the multiple range of financial product from a single account and place multiple types of trade order. In other words, we can easily say that wide flexibility of trading and huge range of markets is other fundamental reasons of being CFD a popular financial instrument among investors.
However, over the last few years the concept of contract for differences has gained enough popularity. In fact, many traders these days are practicing CFD trading. There are many reasons for gaining this wide recognition, however some of them are:
•It require low capital requirements- CFD trading is a type of margined trading, which means a trader only requires depositing a small percentage of the value, instead of having deposited the entire value of position. For example: with 10 % of leverage, an investor is required to deposit $1,000 to buy a CFD of $10,000 of shares.
•It offer good profit form UP & Down of the market:- If you are CFD trader then you can easily make a profit from both the up and down of market and buy a position on lower price and sell at higher price and vice versa.
•It doesn’t require any stamp duty- No stump duty is required to pay in CFD trading because no physical transaction exists and trader never actually owns the shares.
•It provides Stop-Loss Management- CFD traders can set up the automatic stop loss and limit order mechanisms. When stop loss and limit order figures are achieved, position will be closed and in this way trader can avoid losses.
Apart from all this, the concept has also gained more popularity among the investors, due to its flexibility. It is one of the most exciting financial products to trade. Adding to this, as a CFD trader you may even access the multiple range of financial product from a single account and place multiple types of trade order. In other words, we can easily say that wide flexibility of trading and huge range of markets is other fundamental reasons of being CFD a popular financial instrument among investors.
Investment in Gold, Investment in your Future Part 2 of 2
The Gold Fixing, or the London Gold Fixing or Gold Fix, is the procedure by which the price of gold price of gold is set on the London market by the five members of the London Gold Pool. It is designed to fix a price for settling contracts among members of the London bullion market, but, informally, the Gold Fixing provides a familiar rate that is used as a benchmark for pricing the majority of gold products all over the world's markets.
The gold price fix takes place twice daily at 10.30am and 3pm, London time.
The original fixing took place on September 12, 1919 amongst the five principal gold bullion traders and refiners of the day. The price of gold at that time was four pounds 18 shillings and ninepence per troy ounce.
Due to government controls and war emergencies, the London Gold Fixing was poised between 1939 and 1954.
price of gold are fixed in United States dollars (USD), Pound sterling (GBP) and European Euros (EUR).
Historically, the Fixing took place twice daily at the City offices of N M Rothschild & Sons in St Swithin's Lane, but since May 5 2004 it takes place by telephone. In April 2004, N M Rothschild & Sons announced so as to it intended to withdraw from gold trading and from the London Gold Fixing. Barclays Bank took its place from 7 June 2004, and the chairmanship of the encounter, formerly held permanently by Rothschilds, currently rotates annually.
On January 21 1980 the Gold Fixing reached the price of $850, a figure which was not overtaken until January 3 2008. This is when a new record of $865.35 per troy ounce was set in the morning Fixing. However, with inflation, the 1980 high would be equal to a price of $2398.21 in 2007 dollars. So, the 1980 record still holds in real conditions.
While gold is traded in markets all over the world, the market is essentially homogeneous since the gold price is always in dollars and the gold traded is "loco London" (gold deliverable in London and meeting London trading standards). The London PM fix is normally considered the main reference price for the day and is the price most often used in contracts. The price of gold is quoted in USD per troy ounce.
Since May 2004 it has been conducted by telephone. The chairman begins with a 'trying' price. The five fixing members' representatives relay the price to their dealing quarters. And these are in contact with other dealers. The market members then announce how much gold they are prepared to buy or sell at that price. The dealers, who are in contact with their clients, could change their order or add to it or cancel it at any time; the view declared by the dealers is the net position outstanding among all their clients. (If one is buying two tonnes and another is selling one tonne, then he declares himself a buyer of one tonne.) If more gold is required than is offered, then the price will be adjusted upwards (and vice versa) until equilibrium is reached. At this point the gold price is fixed. On very rare occasions the price will be fixed when there is disequilibrium, at the discretion of the chairman of the fix.
A tradition of the London Gold Fixing was that participants might raise a small Union Flag on their desk to pause proceedings. Under the telephone fixing system, participants can register a pause by saying the word "flag", and the chair ends the meeting with the phrase "There are no flags, and we're fixed".
The gold price fix takes place twice daily at 10.30am and 3pm, London time.
The original fixing took place on September 12, 1919 amongst the five principal gold bullion traders and refiners of the day. The price of gold at that time was four pounds 18 shillings and ninepence per troy ounce.
Due to government controls and war emergencies, the London Gold Fixing was poised between 1939 and 1954.
price of gold are fixed in United States dollars (USD), Pound sterling (GBP) and European Euros (EUR).
Historically, the Fixing took place twice daily at the City offices of N M Rothschild & Sons in St Swithin's Lane, but since May 5 2004 it takes place by telephone. In April 2004, N M Rothschild & Sons announced so as to it intended to withdraw from gold trading and from the London Gold Fixing. Barclays Bank took its place from 7 June 2004, and the chairmanship of the encounter, formerly held permanently by Rothschilds, currently rotates annually.
On January 21 1980 the Gold Fixing reached the price of $850, a figure which was not overtaken until January 3 2008. This is when a new record of $865.35 per troy ounce was set in the morning Fixing. However, with inflation, the 1980 high would be equal to a price of $2398.21 in 2007 dollars. So, the 1980 record still holds in real conditions.
While gold is traded in markets all over the world, the market is essentially homogeneous since the gold price is always in dollars and the gold traded is "loco London" (gold deliverable in London and meeting London trading standards). The London PM fix is normally considered the main reference price for the day and is the price most often used in contracts. The price of gold is quoted in USD per troy ounce.
Since May 2004 it has been conducted by telephone. The chairman begins with a 'trying' price. The five fixing members' representatives relay the price to their dealing quarters. And these are in contact with other dealers. The market members then announce how much gold they are prepared to buy or sell at that price. The dealers, who are in contact with their clients, could change their order or add to it or cancel it at any time; the view declared by the dealers is the net position outstanding among all their clients. (If one is buying two tonnes and another is selling one tonne, then he declares himself a buyer of one tonne.) If more gold is required than is offered, then the price will be adjusted upwards (and vice versa) until equilibrium is reached. At this point the gold price is fixed. On very rare occasions the price will be fixed when there is disequilibrium, at the discretion of the chairman of the fix.
A tradition of the London Gold Fixing was that participants might raise a small Union Flag on their desk to pause proceedings. Under the telephone fixing system, participants can register a pause by saying the word "flag", and the chair ends the meeting with the phrase "There are no flags, and we're fixed".
Investment in Gold, investment in you Future Part 1 of 2
Gold is the most admired precious metal in which people invest. It is a safe-haven against any financial, political, social or currency-based crises, such as: investment market declines, currency failure, inflation, war and social disorder.
Influence on gold price:
The day price of gold is driven by supply and demand. Since most of the gold ever mined still exists and is potentially able to come on to the marketplace for the right price, unlike most other commodities, the signpost and disposal plays a much bigger role in upsetting the price. At the end of 2006, it was estimated that all the gold ever mined totaled 158,000 tons.
Known the gigantic quantity of stored gold, compared to the annual production, the price of gold is primarily affected by changes in sentiment, rather than changes in annual production.
In times of public crisis, people fear that their assets may be seized and that the currency could become worthless. They see gold as a solid asset which will always buy food or transportation. Hence in times of great uncertainty, particularly when war is feared, the demand pro gold rises.
As dollars were fully convertible into gold, both were regarded as money. However, generally people preferred to carry around paper banknotes rather than the somewhat heavier and less dividable gold coins. If people feared their bank would fail, a bank run might have been the answer. This is what happened in the USA during the Great Depression of the 1930s, leading President Roosevelt to impose a national emergency and to proscribe the ownership of gold by US citizens.
If the return on bonds, equities and real estate is not adequately compensating for venture and inflation then the demand for gold and other alternative savings such as commodities increases. An example of this is the period of Stagflation that occurred during the 1970s and which led to an economic bubble forming in precious metals.
The system held up until 1971 Nixon Shock, As the US stopped the complete convertibility of the United States dollar to gold. Since 1968 the usual benchmark for the price of gold is known as the London Gold Fixing, a twice-daily (telephone) engagement of representatives from five bullion-trading firms. Furthermore, there is keen gold trading based on the intra-day spot price derived from gold-trading markets around the world as they open and close during the day.
All through history gold has often been used as money and, instead of quoting the gold price , all other commodities were measured in gold. After World War II a gold standard was established following the 1946 Bretton Woods talks, fixing the gold price at $35 per troy ounce.
Financial Websites, Day trading Experts, Forex, Pay Day Loans, Real Estate Investments, Forex Software, Forex Courses, Credit Card Applications, Investments, Gold, Silver, Currency for Sale, Antique Coins, Financial Blogs, Financial Link Directory and Link Exchange etc. go to your Own Financial District Web Site
Influence on gold price:
The day price of gold is driven by supply and demand. Since most of the gold ever mined still exists and is potentially able to come on to the marketplace for the right price, unlike most other commodities, the signpost and disposal plays a much bigger role in upsetting the price. At the end of 2006, it was estimated that all the gold ever mined totaled 158,000 tons.
Known the gigantic quantity of stored gold, compared to the annual production, the price of gold is primarily affected by changes in sentiment, rather than changes in annual production.
In times of public crisis, people fear that their assets may be seized and that the currency could become worthless. They see gold as a solid asset which will always buy food or transportation. Hence in times of great uncertainty, particularly when war is feared, the demand pro gold rises.
As dollars were fully convertible into gold, both were regarded as money. However, generally people preferred to carry around paper banknotes rather than the somewhat heavier and less dividable gold coins. If people feared their bank would fail, a bank run might have been the answer. This is what happened in the USA during the Great Depression of the 1930s, leading President Roosevelt to impose a national emergency and to proscribe the ownership of gold by US citizens.
If the return on bonds, equities and real estate is not adequately compensating for venture and inflation then the demand for gold and other alternative savings such as commodities increases. An example of this is the period of Stagflation that occurred during the 1970s and which led to an economic bubble forming in precious metals.
The system held up until 1971 Nixon Shock, As the US stopped the complete convertibility of the United States dollar to gold. Since 1968 the usual benchmark for the price of gold is known as the London Gold Fixing, a twice-daily (telephone) engagement of representatives from five bullion-trading firms. Furthermore, there is keen gold trading based on the intra-day spot price derived from gold-trading markets around the world as they open and close during the day.
All through history gold has often been used as money and, instead of quoting the gold price , all other commodities were measured in gold. After World War II a gold standard was established following the 1946 Bretton Woods talks, fixing the gold price at $35 per troy ounce.
Financial Websites, Day trading Experts, Forex, Pay Day Loans, Real Estate Investments, Forex Software, Forex Courses, Credit Card Applications, Investments, Gold, Silver, Currency for Sale, Antique Coins, Financial Blogs, Financial Link Directory and Link Exchange etc. go to your Own Financial District Web Site
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