Showing posts with label Forex Articles. Show all posts

5 Things You Must Do If You Want To Attain Financial Freedom Through Forex Trading

8:01 PM By Anonymous

With the amazing growth of the forex market, you are going to see an astounding amount of traders lose all their money. Unfortunately, they haven't followed the simple steps I have laid out for you. Go through these steps and give yourself the greatest opportunity to achieve your goals.

1. Have Faith In Yourself

To reach the level of elite forex trader, you must trust in yourself and your forex trading education. You must be willing to make all your trading decisions, instead of relying on someone else's thoughts or ability (or lack of). Of course, you will prepare yourself fully before every risking any money.

2. Accept Your Learning Curve

Unless you are a veteran trader, you will lose money trading the Forex market. This is a near certainty. I don't say this to talk you out of trading. In fact, quite the opposite. You will be trading against others that fall to this reality day in and day out. You, however, will not risk a dime until you have learned the skills you need to make money trading the forex.

3. Decide What Type of Trader You Are

There are many ways to trade the forex. They range from very active to very patient. You must decide which style suits you best. The best time to learn this about yourself is while you are trading a demo account. There is no need to allow your learning curve to cost you money.

4. Get Educated

Education is the shortest path to elite forex trading. Regardless of your ultimate goals, you will reach them quicker with a great forex trading education. Take some time to review different options before deciding on who to trust with your forex trading education needs. A forex seminar will help shorten your learning curve drastically.

5. Continue to Get Educated

In order to achieve and retain elite forex trading skills, you must constantly be adding to you knowledge base. Your education should never end. In fact, one of the key points to look for in an elite forex trading course is ongoing education. It's nice to have an ongoing relationship with the person/people helping you to achieve your goals.

What separates an elite forex trader from all others is their desire and ability to be independent. Many traders are willing to follow signals, systems, strategies, or anything else you may call them. By taking this approach, however, these traders are only as good as the people they follow.

An elite forex trader will lead. Their decisions will be calculated and analyzed to near perfection. They will make decisions with no hesitation, and handle the growth of their account in a predetermined, intelligent fashion. Take your trading to their level and you will never look back.

Pakistan seeks $50bn foreign debt..

7:24 AM By Anonymous

ISLAMABAD: As federal and provincial economic teams assured the international community on Sunday of their resolve to introduce wide-ranging taxation measures, including Reformed General Sales Tax (RGST) and taxes on agriculture and real estate, Interior Minister Rahman Malik made a plea for waiving the $50 billion foreign debt to help Pakistan move ahead with the war against terrorism.

On the other hand, representatives of the international community attending a two-day Pakistan Development Forum asked the government and people of Pakistan to take the lead in reconstruction and rehabilitation of flood-hit areas. Most of the foreign delegates repeatedly asked the authorities about steps they were taking to mobilise resources. Two provinces – Sindh and Punjab – informed the meeting that despite facing opposition they were moving ahead on the RGST and planned to raise substantial resources through tax on agriculture and property. Interior Minister Rahman Malik said that Pakistan was fighting terrorism as a frontline state and deserved that its $50 billion foreign debt was written off. He said that besides the challenge of terrorism the country was also engaged in reconstruction and rehabilitation of flood-hit people. He said that around 40,000 to 50,000 people crossed the Pak-Afghan border daily, but all of them were not Taliban. They also included drug smugglers and criminals and hence Pakistan wanted the Afghan government to install biometric checkpoints to stop illegal cross-border movement. He said Pakistan had been fighting terrorism for almost 30 years and had broken the back of terrorists along its western borders. The fight would go on with or without the and commercial plots in urban areas, said Sindh Chief Minister Qaim Ali Shah. Adviser to Sindh Chief Minister Kaiser Bengali said that progress had been made on the RGST and the provincial government would impose a flood tax for which a law would soon be tabled in the provincial assembly despite some opposition. Khyber Pakhtunkhwa Governor Owais Ghani said his province needed Rs107 billion over the next 18 months for reconstruction in social sector and infrastructure development. Chief Minister Amir Haider Khan Hoti said the provincial government had suspended new development projects of Rs18 billion from a development plan of Rs69 billion. Dr Abdul Hafeez Shaikh said that talks had just started with presentations by provincial and regional governments and the federal government would brief PDF participants on Monday on the impact of floods on national economy and ways of dealing with consequences of the devastation.

Australian Dollar Steady

7:21 AM By Anonymous

Dollar Index Scores a Meaningful Bullish Breakout but European Issues, Risk Trends Still Blurred
Euro Traders Look for Clarity on Ireland’s Future and the Future of the European Monetary Union
British Pound Stifled by Disappointing Housing Data, Look for Clear Direction with CPI Data
Japanese Yen: Why Did a Strong 3Q GDP Reading not Promote a Yen Rally?
Australian Dollar Steady on Minutes that Show Concern over Inflation, OECD that Warns the Same
New Zealand Dollar Sees Limited reaction to Strong Retail Sales Data thanks to Trading Conditions

Dollar Index Scores a Meaningful Bullish Breakout but European Issues, Risk Trends Still Blurred
Once again, the dollar put in for a significant and progressive price development. And yet, fundamental traders should be more suspicious of the greenback’s progress now than they were last week. Looking to the trade-weighted Dollar Index, we see that the benchmark currency was able to surpass a troublesome range high at 78.35. The monthly high this move presents certainly seems the next logical progression of a reversal that was jumpstarted after a quick dip to a low for the year. However, we can see the stain of doubt underlying this move despite the meaningful progress the day’s advance would imply. The first sign of uncertainty is found from the Dollar Index itself. After such a meaningful breakout, we would expect a significant increase in momentum to accelerate gains as traders are drawn into the development; but follow through was notably restrained. Another hitch to the greenback’s boundless recovery is the variation in progress across different pairs. While EURUSD has slipped below notable support (once again, lacking momentum) and USDJPY seems to be taking meaningful steps towards a larger advance; GBPUSD, USDCHF and AUDUSD are much further away from establishing conclusive reversals. Typically, when there is a mixed performance for a currency across its most liquid pairings, the confusion prevents definitive progress. And, venturing into the fundamental side of things, the greenback’s lack of momentum is consistent with the S&P 500 having yet to break from its two-and-a-half month rising trend channel.

All these factors taken into account, it should not be immediately concluded that the dollar’s bullish run is doomed for failure. Instead, it suggests that traders are simply more concerned with tangible fundamental catalysts rather than letting rampant speculation dictate activity levels. What is needed is a definitive shift in one (or more) of the more pervasive and influential trading themes. Effectively taking up the gauntlet of top fundamental driver from stimulus speculation, risk appetite trends now hold the greatest potential for the dollar’s advancement or retracement. This is why we make the regular reference to the health of the US equity market benchmark. Should there big an underlying shift in the balance of risk/reward, the stocks and other relatively-risky assets will be unloaded and safe havens will be scooped up. And, though the greenback’s shelter appeal has diminished significantly; when capital flows turn into torrents, the market will likely defer to historical norms. What can push equities into that tempting bear trend and subsequently leverage the dollar’s appeal? European financial uncertainties are at the top of the list. A crisis situation in this economy has very clear implications for investment trends; but even a move to bailout Ireland would further the dollar’s case. Such a move would be clear step towards government-backed support. The US isn’t the only government providing support…

Speaking of stimulus, we note a growing wave of dissension against the Fed’s decision to implement the second round of quantitative easing. While much of the grumbling comes from the speculative market and emerging markets, Fed member Lacker stated that he opposed the move as being potentially ineffective and even dangerous. Don’t expect the central bank to fold to pressure anytime soon though. In other news, data seemed to offer a bullish balance. Advanced retail sales were better than expected with a 1.2 percent improvement – cut to 0.4 percent excluding gas and auto sales. For some contrast, the Empire manufacturing index dropped to a July 2009 low.

Euro Traders Look for Clarity on Ireland’s Future and the Future of the European Monetary Union
Irish officials responded to growing fear of a national financial crisis and subsequent speculation of an impending bailout by stating simply that they had not filed for aid and the government was fully funded through mid-2011. Clearly, this reiteration does not provide investors with a sense of confidence. In fact, it is adding to regional troubles according to the ECB’s Ordonez. Leaving the market in a state of uncertainty balances Ireland between the tarnished reputation of having to look for additional funds and potentially leaving its banking system open to collapse. With that in mind, Prime Minister Cowen is expected to bring the topic up at Tuesday’s meeting of European leaders. In the meantime, Portugal’s Finance Minister lamented that his country is at high risk similar troubles and the EU revised Greece’s deficit to GDP ratio up significantly.

British Pound Stifled by Disappointing Housing Data, Look for Clear Direction with CPI Data
Not to be ignored, the Rightmove released an indicator that showed a 3.2 percent drop in house prices in October – the biggest since December 2007 – and the longest turnover time on record. However, the market easily ignored the weak figure. That said, traders won’t as readily disregard Tuesday’s CPI data. Speculation of stimulus and rate hikes top’s the pound’s personal list of fundamental concerns.

Japanese Yen: Why Did a Strong 3Q GDP Reading not Promote a Yen Rally?
Expectations for Japan’s 3Q GDP numbers were tame heading into the release of the data. Yet, when the economy reportedly grew 0.9 percent in the three-month period and 3.9 percent on an annualized basis – both much better than expected – the yen showed little response. This can be partly attributed to timing; but with the Japanese Economic Minister suggesting 4Q will show the mirror performance, optimism will be muted.

Australian Dollar Steady on Minutes that Show Concern over Inflation, OECD that Warns the Same
All signs point to further gains for the Australian dollar – except for risk appetite trends. Early Monday, the OECD issued a statement warning the RBA to remain vigilant on inflation pressures and the bank’s own minutes on Tuesday supported a sustained hawkish lean. However, rate hikes later down the line will be overlooked if investors abandon carry trades to fund maintenance margin on losses in other trades.

New Zealand Dollar Sees Limited reaction to Strong Retail Sales Data thanks to Trading Conditions
The economic docket was stocked for the New Zealand dollar very early Friday morning; and yet the data has ultimately very little reaction on the currency. Data released during early in Auckland’s trading session hit at a time when few other markets are online; and doing so prior to Monday’s open exacerbates the issue. Therefore, a 1.6 percent jump in retail sales was able to rouse little activity before risk trends set in.

Currency Majors Technical Perspective

7:20 AM By Anonymous

Pound has also lost some ground this Monday, thus remained in past day's range; falling towards past Friday low around 1.6020, hourly chart shows indicators below their midlines, and under pressure, while moving averages .

EUR/USD Current Price: 1.3570

Euro was again pressured by sovereign debt woes, as Ireland could use European Union aid to bail out cash-strapped banks, while Portugal prime minister comment this Monday about the “high risk of contagion” and that Portugal mail also need a bailout.

Technically, pair continues consolidating near daily low set barely below past week one, at 1.3562, with hourly indicators exhausted to the downside, yet price limited up by a bearish 20 SMA and a dominating bearish tone in bigger time frames; lose of 1.3560, should signal a continuation rally towards 1.3500 level, the 50% retracement of the 1.5140/1.1870 weekly fall.

Support levels: 1.3560 1.3510 1.3480

Resistance levels: 1.3610 1.3640 1.3690

GBP/USD Current Price: 1.6035

Pound has also lost some ground this Monday, thus remained in past day’s range; falling towards past Friday low around 1.6020, hourly chart shows indicators below their midlines, and under pressure, while moving averages hold a strong bearish slope above current price; 20 SMA acts as dynamic resistance around 1.6060, so only a strong acceleration above that level could reverse short term bearish bias. Below 1.6020, 1.5950/60 area, past week low comes next.

Support levels: 1.6020 1.5955 1.5910

Resistance levels: 1.6060 1.6090 1.6130

USD/JPY Current Price: 83.15

Having rose to 83.25 intraday high, pair holds its bullish strength as Asian session develops, despite hourly indicators are showing some bearish divergences; Japanese yen weakness across the board support by gold price slide, should extend over the upcoming sessions; the midterm bottom set at 80.30 is much more firm at current levels, suggesting the movement could reach the 85/86 price zone in the upcoming days. Key support area that gathers buyers, is now around 82.00.

Support levels: 82.80 82.50 82.20

Resistance levels: 83.25 83.55 83.80

AUD/USD: Current Price: 0.9837

Pair is starting the day below the 0.9855 level, the 61.8% retracement of last daily bullish run, having been capped below the level for the last hours, where we find also 20 SMA, giving resistance and turning the pair bearish for the upcoming hours. Having set a low at 0.9810 immediate support, lose of this last should support a continuation rally towards 0.9720 price zone. The upside now should remain limited by 0.9920, 50% retracement of the same rally and daily high.

Support levels: 0.9810 0.9770 0.9720

Resistance levels: 0.9855 0.9880 0.9920

Daily Market Outlook

7:17 AM By Anonymous

The greenback edged higher from 82.40 versus the Japanese yen in Asian morning due to the rise in Japanese stock markets and U.S. 10−year yield and climbed to a 5−week high of 83.28 in NY morning. Despite dollar's retreat to 82.71, renewed buying interest .

Market Review - 15/11/2010 23:10 GMT

Euro tanks to a 6-week low against dollar on concern over European sovereign-debt
The single currency sank to a 6-week low against dollar on Monday as worries about Irish sovereign debt prompted investors to buy the greenback as a safe-haven currency. The rising U.S. Treasury yield gave support to dollar as U.S. 10-year Treasury yields reached a three-month high.

Although euro rose initially to 1.3751 in Asian morning on hopes of a rescue package for Ireland, selling interest emerged there and the pair fell sharply on continued concerns over Irish bailout. Despite euro's brief rise to 1.3668 after mixed U.S. data (strong U.S. retails sales data was offset by much-weaker-than-expected Empire State manufacturing index), the pair dropped again as Portugal's Finance Minister said there was a high risk that Portugal would have to seek foreign financial aid. He added the country had no plans to request emergency foreign funding and there were no formal or informal talks on the matter. Euro eventually weakened to a 6-week low of 1.3563 ahead of NY closing.

The greenback edged higher from 82.40 versus the Japanese yen in Asian morning due to the rise in Japanese stock markets and U.S. 10-year yield and climbed to a 5-week high of 83.28 in NY morning. Despite dollar's retreat to 82.71, renewed buying interest sent dollar to 83.24 before NY closing.

The British pound fell from 1.6155 in tandem with euro in Asian morning and weakened to 1.6042 in European morning. However, cable recovered to 1.6124 in NY morning before retreating and then traded sideways in NY afternoon as cross buying in sterling versus euro cushioned cable's downside.

Economic data to be released on Tuesday include:

Japan Tertiary industry index, Machine tools orders ,U.K. CPI core, CPI, RPI, RPI – X, DCLG house prices, Germany ZEW index, ZEW Current Situation (Nov), EU HICP final, ZEW survey, U.S. PPI , PPI core, Foreign treasury buys, Net LT TIC flows, Capacity utilisation, Industrial prod'n, NAHB housing mrkt index.

Predict Forex Using Secret Equation Formula!

7:15 AM By Anonymous

Predict Forex

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Welcome to the website that may very well change the way you trade forever. We will start by explaining a little about who we are and our trading background. We are a group of professional Forex traders who have been trading in the Forex market for many years now. We all spent countless hours and large amounts of money trying to earn a living by trading in the Forex market. We started out as most common traders do by using so many different technical indicators and trading systems. Just like most traders, all our hard earned money was always gone in such a short amount of time. We did as most traders do by depositing more money, over and over again, in hopes that we would learn to trade better by simply switching our trading methods. We kept losing all our deposited money over and over again! We all became very frustrated from all the losses and started to realize that using indicators and trading systems were a complete waste of time. Most of the time the technical indicators were contradicting each other. Very rarely did the indicators ever agree with each other in harmony and whenever they did, the market would always move in the opposite direction anyways! Soon afterwards we independent traders joined together and formed a small and unified group dedicated to advanced market analysis and research. We realized the need to look at the Forex market in a different way. We began to realize that there actually was a reason why the prices move the way they do and at the times they do. We discovered that the Forex market is not random and that any trader can actually predict Forex well in advance. Later we formed this website in hopes of sharing this information to all traders who are interested. Forex trading is actually easy and you also can learn to predict the Forex marke

FOREX FORMULA DETAILS

This trading formula has many benefits:

No contradicting Technical Indicators
No complicated Trading Systems
Works with any broker or trading platform
Works in both Forex and Stock markets
Works with any currency pair
Works with all metals like Gold and Silver
Works with trading Oil
Works for Scalping or short term trading
Works for Intra-day trading or Daytrading
Works for Swing trading or Long term trading
Can be used with news trading
Works in any time frame(5+ min. recommended)
No wasted time sitting in front of the computer
Easy yet very powerful and accurate
Very rare Forex formula
Less stress

Here is what you will get:

Prediction Formula- An easy mathematical equation or formula that will give you the ability to predict price moves well in advance down to the exact time!
Expert Advisor (EA)- Please see our FAQ page for more details.
Custom Indicator- Please see our FAQ page for more details.
Detailed Instructions- You will be given clear information which includes all instructions and trading examples.
Free Life-Time Support- You will receive fast, professional and personalized support that will answer any questions you might have.
Professional Ability- You will learn the skills to trade like a professional and actually be successful. You can make yourself a part of the small group of profitable traders worldwide.
More Time- You will know how to actually predict when major price movements are going to happen. There will be no more wasted time sitting in front of the computer looking at different charts and indicators. You will know exactly when you will need to place your orders well in advance. The savings in time alone are well worth the cost of getting this formula!
More Money- There should be no reason why any trader cannot make consistent profits by using our formula!

Introduction To Forex Trading

10:58 PM By Anonymous

There are many markets: markets for stocks, futures, options and currencies. These are probably the most accessible markets for everyday traders like you and I. People easily understand the basics of trading shares, so I will occasionally use examples from that market.

I began trading shares first and then I moved on to trading currencies; therefore, most of the examples I will be using in this book are derived from trading currencies.

If you do not know a lot about currency trading, allow me to introduce it to you. It is what I trade and I believe that it is one of the best markets to trade because of its efficiency. The transaction costs to execute a trade are minimal and most brokers provide you with the tools and data you need to make your trading decisions, they usually provide them for free. The market is open 24 hours a day which allows you to design your trading hours around your daily commitments. It is very volatile, which is great for those people who are looking for day-trading opportunities.

The foreign exchange market is the market in which currencies are bought and sold against one another. People may loosely refer to this market under different labels, including foreign exchange market, forex market, fx market or the currency market.

The foreign exchange market is the largest market in the world, with daily trading volumes in excess of $1.5 trillion US dollars. All transactions involving international trade and investment must go through this market because these transactions involve the exchange of currencies.

It is the most perfect market that exists because it has a large number of buyers and sellers all selling the same products. There is a free flow of information and there are little barriers to participate.

The currency exchange market is an over-the-counter (OTC) market which means that there is not one specific location where buyers and sellers can actually meet to exchange currencies. Instead, transactions are conducted by phone, fax, e-mail or through the websites of brokers who specialize in currency trading.

The major dealing centres at the time of writing are: London , with about 30% of the market, New York , with 20%, Tokyo , with 12%, Zurich , Frankfurt, Hong Kong and Singapore , with about 7% each, followed by Paris and Sydney with 3% each. Because of the fact that these centres are all over the world, foreign exchange traders can execute transactions 24 hours a day. The market only closes on the weekends.

THE MAIN 'PLAYERS' IN THE FOREX MARKET

The five broad categories of participants are: consumers, businesses, investors, speculators, commercial banks, investment banks and central banks.

Consumers, including visitors of countries, tourists and immigrants, do need to exchange currencies when they travel so that they can buy local goods and services. These participants do not have the power to set prices. They just buy and sell according to the prevailing exchange rate. They make up a significant proportion of the volume being traded in the market.

Businesses that import and export goods and services need to exchange currencies to receive or make payments for goods they may have bought or services they may have rendered.

Investors and speculators require currencies to buy and sell investment instruments such as shares, bonds, bank deposits or real estate.

Large commercial and investment banks are the 'price makers'. They are the ones who buy and sell currencies at the bid-and-offer exchange rates that they declare through their foreign exchange dealers.

Commercial banks deal with customers on one hand, and with the Interbank or other banks, on the other hand. They profit by utilizing the bid-and-offer spread. The bid price is the exchange rate that the buyer is willing to buy and the offer price is the exchange rate at which the seller is willing to sell. The difference is called the bid-offer spread. They also make profits from speculating about whether the exchange rate will rise or fall.

Central banks participate in the foreign exchange market in their effective duty as banks for their particular government. They trade currencies not for the intention of making profits but rather to facilitate government monetary policies and to help smoothen out the fluctuation of the value of their economy's currency.

Forex Glossary Terms

9:34 AM By Anonymous

American-style option An option contract that may be exercised at any time before it expires.

Ask The quoted price at which a customer can buy a currency pair. Also referred to as the 'offer', 'ask price', or 'ask rate'.

Base Currency For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.

Bid The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate'.

Bid/Ask Spread The point difference between the bid and ask (offer) price.

Call A call option gives the option buyer the right to purchase a particular currency pair at a stated exchange rate.

Counterparty The counterparty is the person who is on the other side of an OTC trade. For retail customers, the dealer will always be the counterparty.

Cross-rate The exchange rate between two currencies where neither of the currencies are the US dollar.

Currency pair The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.

Dealer A firm in the business of acting as a counterparty to foreign currency transactions.

Euro The common currency adopted by eleven European nations (i.e., Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) on January 1, 1999.

European-style option An option contract that can be exercised only on or near its expiration date.

Expiration This is the last day on which an option may either be exercised or offset.

Forward transaction A true forward transaction is an agreement that expects actual delivery of and full payment for the currency to occur on a future date. This term may also be used to refer to transactions that the parties expect to offset at some time in the future, but these transactions are not true forward transactions and are governed by the federal Commodity Exchange Act.

Interbank market A loose network of currency transactions negotiated between financial institutions and other large companies.

Leverage The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.

Margin See Security Deposit.

Offer See ask.

Open position Any transaction that has not been closed out by a corresponding opposite transaction.

Pip The smallest unit of trading in a foreign currency price.

Premium The price an option buyer pays for the option, not including commissions.

Put A put option gives the option buyer the right to sell a particular currency pair at a stated exchange rate.

Quote currency The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.

Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date.

Retail customer Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.

Security deposit The amount of money needed to open or maintain a position. Also known as 'margin'.

Settlement The actual delivery of currencies made on the maturity date of a trade.

Spot market A market of immediate delivery of and payment for the product, in this case, currency.

Spot transaction A true spot transaction is a transaction requiring prompt delivery of and full payment for the currency. In the interbank market, spot transactions are usually settled in two business days. This term may also be used to refer to transactions that the parties expect to offset or roll over within two business days, but these transactions are not true spot transactions and are governed by the federal Commodity Exchange Act.

Spread The point or pip difference between the ask and bid price of a currency pair.

Sterling Another term for British currency, the pound.

Strike price The exchange rate at which the buyer of a call has the right to purchase a specific currency pair or at which the buyer of a put has the right to sell a specific currency pair. Also known as the 'exercise price'.

A Detailed Overview of Forex Market

9:32 AM By Anonymous

Introduction

The following facts and figures relate to the foreign exchange market. Most of the information comes from the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2004, and published in March 2005. 52 central banks and monetary authorities participated in the survey, collecting information from approximately 1200 market participants.

Structure

Decentralised, over-the-counter market, also known as the 'interbank' market
Main participants: Central Banks, commercial and investment banks, hedge funds, pension funds, corporations & private speculators
The free-floating currency system began in 1973, and was officially mandated in 1978
Online trading began in the mid to late 1990's

Source: BIS Triennial Survey 2004

Trading Hours

24 hour market
Sunday 5pm EST through Friday 4pm EST. Rollover at 5pm EST
Trading begins in New Zealand, followed by Australia, Asia, the Middle East, Europe, and America

Size

Largest market in the world
$1.9 trillion average daily turnover, equivalent to:
- More than 10 times the average daily turnover of global equity markets 1
- 40 times the average daily turnover of the NYSE 2
- $300 a day for every man, woman, and child on earth
- An annual turnover more than 10 times world GDP 3
The spot market accounts for about one-third of daily turnover

1. About $167 billion - World Federation of Exchanges aggregate 2004
2. About $46 billion - NYSE 2004
3. About $36 trillion - World Bank 2003

Source: BIS Triennial Survey 2004

Major Markets

The US & UK account for more than 50% of turnover
Major markets: London, New York, Tokyo
Trading activity is heaviest when major markets overlap
Nearly two-thirds of NY activity occurs in the morning hours while European markets are open 4

4. NY Federal Reserve Average Daily Turnover by Country

Concentration in the Banking Industry

16 banks account for 75% of turnover in the U.K.
11 banks account for 75% of turnover in the U.S.
11 banks account for 75% of turnover in Japan

Note: The reference here is to individual banking offices rather than banking organisations.
Source: BIS Triennial Survey 2004

Trading

An estimated 95% of transactions are speculative
More than 40% of trades last less than two days
About 80% of trades last less than one week
Brokers research: 90% of traders lose money, 5% break even, 5% make money

Technical Analysis

Commonly used technical indicators:

Moving averages
RSI
Fibonacci retracements
Stochastics
MACD
Momentum
Bollinger bands
Pivot point
Elliott Wave

Currencies

The US dollar is involved in approximately 90% of all foreign exchange transactions, equivalent to over $1.5 trillion a day

Currency Codes

USD = US Dollar
EUR = Euro
JPY = Japanese Yen
GBP = British Pound
CHF = Swiss Franc
CAD = Canadian Dollar
AUD = Australian Dollar
NZD = New Zealand Dollar

Average Daily Turnover by Currency

N.B. Because two currencies are involved in each transaction, the sum of the percentage shares of individual currencies totals 200% instead of 100%.
Source: BIS Triennial Survey 2004
Currency Pairs

Majors: EUR/USD, USD/JPY, GBP/USD, USD/CHF
Dollar bloc: USD/CAD, AUD/USD, NZD/USD
Major crosses: EUR/JPY, EUR/GBP, EUR/CHF

Average Daily Turnover by Currency Pair

Pages

5 Things You Must Do If You Want To Attain Financial Freedom Through Forex Trading

Pakistan seeks $50bn foreign debt..

Australian Dollar Steady

Currency Majors Technical Perspective

EUR/USD Current Price: 1.3570

GBP/USD Current Price: 1.6035

USD/JPY Current Price: 83.15

AUD/USD: Current Price: 0.9837

Daily Market Outlook

Predict Forex Using Secret Equation Formula!

Predict Forex

FOREX FORMULA DETAILS

Here is what you will get:

Introduction To Forex Trading

Forex Glossary Terms

A Detailed Overview of Forex Market

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