USDCAD traded in a narrow range between 0.9743 and 0.9816. As long as 1.9743 support holds, the price action in the range is treated as consolidation of uptrend from 0.9444, and another rise towards 0.9900 is still possible after consolidation. However, a breakdown below 0.9743 will indicate that lengthier consolidation of uptrend is underway, then pullback to 0.9650-0.9700 area could be seen.
By Cedric Welsch
Exchanging currencies and choosing a Forex trading platform entail different meanings. Nevertheless, all traders want to save money in such a volatile market called the Forex. This is the largest market in the world, hands down, but it is an unfamiliar territory for most people.
How does the currency market work? It works exactly as the name implies. A trader trades money for different money. The sweet deal is that one can make a profit off the exchange rate. The rate is quoted in a pair like EUR/USD, YEN/USD, etc.
The key to making profit relies on exploiting the fluctuations of the market. Fluctuations are influenced by economic implications like geopolitical events, industrial production, and inflation. While the implications are not exclusive, they are the common denominators to factor in when buying or selling a currency pair.
What makes the foreign exchange market unique from other markets? Unlike options, futures, and stocks, the currency trade does not take place on a regulated exchange. No governing body controls the market and clearing houses do not determine deals. Also, an arbitration panel cannot adjudicate any disputes. Credit agreements are the primary factors of members ability to deal.
It is crucial to compare and contrast the most obvious choices in a Forex broker. There are hundreds, perhaps thousands of market makers that set individual currency prices and spreads. No doubt, the market is a competitive one. So, generally, the difference in spreads and prices will not differ by much. Still, every market maker facilitate unique perks and differences in an attempt to distinguish from other competitors.
Most market makers have a web or desktop interface that can be downloaded. Users can log-in for business. Analyze the software, by testing out the product in a demo account. Demo accounts allow potential clients to test the waters without any risks involved.
Potential dealers will be involved in a number of tasks when dealing with the software. They would be viewing charts, applying a system of indicators and rules to assess currencies, placing orders for spot markets, and viewing details of the account. Also, dealers can view the leveraged float on hand for trading. Keep in mind that various market makers have different standards in quality packages.
Dealers need to look for distinguishable qualities. At the very least, the packages should offer essential functions like drawing lines, note taking, and plotting indicators. All dealers have a unique method and style of dealing. The trading platform should suit the preferences of the dealer, not the other way around.
Some incomprehensible numbers and stats may arise as you hear forex news trading from different sources. The more heavy the gravity of a certain forex scam, the more you need to be aware of it too.
By Cedric Welsch
The Forex market is often referred to as being perfect. Some people might think of perfection as a place which sells wonderful goods at bargain prices. However, in economic terms perfection is seen in a different light. It is a state in which the laws of supply and demand remain unfettered.
Economists are great at theory. Theoretically the ideal situation is one in which buyers and sellers are evenly matched so that prices are always in equilibrium. They may swing slightly around a pivot point, moved by certain variables but will always return to equilibrium. This was most probably the thinking that persuaded economists to abandon gold as the ultimate store of value. Instead, currencies were allowed to float freely against each other.
The huge volume of the foreign exchange market helps to keep in equilibrium. It is estimated that the turnover exceeds three trillion dollars in a single day. With such huge volumes it is not likely that a single trader can easily swing prices his way.
However, one should take note that central banks are active in the markets and they have such vast amounts available to them that they can certainly influence markets. Central bankers can influence price movements by raising or lowering interest rates or buy buying and selling large amounts of particular currencies.
The strength or weakness of a currency will have significant influence on a country’s exports. The strength of the American dollar relative to the Chinese Yuan, for example, is a major cause of the trade imbalance between the two countries. Chinese exports are easier to buy than American exports.
One objection is that the Chinese communist authorities are not altogether convinced about free markets, and so intervene to keep their currency conveniently weak. However, it could be argued that the American central bank can also manipulate the market by raising or lowering interest rates. So it may be a case of the pot calling the kettle black.
The Forex market is so dispersed across the planet that it is almost perfectly liquid. A buyer can always find a seller within seconds, and the same goes for a seller. Moreover, trading need not be confined to major currencies such as the Euro and the American dollar. It is easy to trade other currency pairs online, such as the Australian and New Zealand dollars. Since trading carries on for twenty four hours every day right across the world currency pairs are continually in motion, oscillating around values which are, theoretically, determined by the laws of supply and demand.
It can be annoying to study live forex news that seem to be a bit overhyped, thus bringing fear. Even though forex broker reviews may be available everywhere, it is wise to stick with your trusted.
By James McKee
It is no surprise to anyone that oil and other commodities are big business; few other resources are as vital to everyone’s day-to-day life as oil. The markets and traders that are brought to the commodities markets are often deeply enmeshed in the politics therein, and use this knowledge to profit from speculation. When a commodity such as oil goes up in price dramatically it can cause change in the value of the USD on the online forex exchange. The power of oil is all-too apparent to many who do not hesitate to manipulate the price of the substance in an effort to profit. By creating inaccurate figures from companies that harvest or even transport oil there are ways to profit from the manipulation of information.
Such information can also involve having advanced knowledge of a commodity’s availability prior to the rest of the trading world. Such actions are not seen as ethical, and they are certainly not legal by any stretch of the imagination. When a speculator increases the cost of oil through the manipulation of data so that someone can profit from a long position in the market, they are also causing a rise in the price for the public. This is why many of those in the SEC and other government organizations openly condemn such practices and go after offenders with vigor. The ability of a few traders to profit from the increase in price of a commodity is not only selfish; it is downright destructive and causes alot turmoil in many ways.
Over time there are going to be much more stringent regulations affecting speculators; but, for the time being many are free to do as they wish with the data they are in charge of. Such power and financial incentive can cause many to become corrupt in an effort to make more money. This is a great deal of motivation for traders and other wealthy parties to attempt to “turn” speculators into their own employees. This type of infiltration and corruption has existed since the beginning of any financial market, and it is the reason we have the SEC and other government organizations. There is a good deal of reform being attempted in this area; however, only time will tell if jail time can truly dissuade an individual from taking millions of dollars for a few hours’ worth of work. Ethics and business have long been at odds with one another, and this is just another example of that.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.
By Cedric Welsch
Trading in the Forex market has become increasingly popular with the expansion of the Internet and online trading capabilities. With online guides and tools, investors can quickly learn about the Forex market and trading strategies. Because the Foreign Exchange Currency Trading involves trading currencies in hopes of capital gains, Forex trading has become a hedge against unfavorable stock market conditions. If you are new to the world of Forex, consider the benefits of playing a Forex trading game to learn everything you need to know to trade wisely.
While the term Forex trading game may seem like something that could be sold for the xBox 360 or the Playstation 3, it is actually a valuable tool that will give you first hand experience in trading in the Forex market. When you are new to any type of investing you do not simply jump in the deep end without a life vest. The Forex trading game is your life vest. This tool will keep you afloat with practice trades. You do not want to throw your money into the market before you have practiced. When you play a trading game, you use virtual money. This means you do not lose your money even when you make a bad trade.
When you play a Forex trading game, you will learn how to detach your emotions from a trade. One of the biggest mistakes an individual can make when they are trading currency is becoming emotionally attached to their investment. The game shows you how you should plan your trades based on proven information and not emotions. You can review competitive spreads and current economic conditions of the countries you are selecting to ensure you make an informed decision even if you are not trading your own money.
Forex demo accounts are perfect for hands-on learning. These accounts can be beneficial to newbies and experienced traders alike. You can test your trading strategies under real market conditions in a no risk environment. While you are not really making money, you are learning how to when you enter the real market. Practical learning in a flexible environment is the best way to trade without the associated pressure. Because games have very real trading platforms, you will become familiar with how to navigate through the interface when you are ready to go live. Find a quality Forex trading game and start learning how to trade on a professional demo platform.
Do not belittle the capacity of the forex industry to make you a rich business person someday. There is certain magic in fx trading that makes even the commoner to amass profits quick.
Specify a trading plan and follow it on a daily basis.
Professional traders have an edge and focus all of their efforts in utilising this edge. They do not enter random trades.
Every trader should have a clearly defined trading plan and strive to implement their edge through following their rules.
The following are some of the factors that can be employed when embarking on writing your trading plan:
Think about how the different areas can affect you and expand on them as is relevant for your trading methodology.
– How do you operate your trading business?
– Document any plans and daily routines. Make a list of what you do on a daily basis and seek to refine the process.
– How does event risk fit in with your trading strategy? Market moving data is released constantly. Intra-day traders may make deliberate decisions concerning how they deal with positions around event risk.
Pro traders wouldn’t generally enter positions established around TA ahead of an interest rate announcement… How is your trading strategy facilitating this? You can take control by defining a set of rules about how you’ll supervise your trading positions during event risk.
– Do you trade if under pressure with external issues? How will you quantify your state of mind? I.e. score out of 5 in a trading log…
– Do you keep a trading journal? This journal should have a trade analysis section which can capture lessons learnt etc. It should also allow you to log what was good and bad about how you executed the position. It is vital that we learn from mistakes in order to improve our edge.
– How will you deal with an IT systems failure? Do you have a diverse internet connection?
– What will you risk on a trade? Do you take current trades into account when accounting for total equity?
– Will you trade correlated pairs? How do you track this correlation information?
– How many losers will it take before you stop for a pre-defined trading break?
—————————————————————————————————————————————-
Analyse all of the above and add as many points as is relevant to you. This is an important step towards taking control of your trading.
Further trading psychology and self improvement posts can be read at www.forex-fx-4x.com
By Cedric Welsch
Online Forex is the standard delivery method for trading foreign exchange currency pairs. Many brokers offer their service to online traders through real time quotes, trades and information about the markets. Other financial and economic news is also delivered on Forex platforms. The following information may be helpful to those considering entering the Forex market.
The entire foreign currency exchange market is built upon the premise that money needs to be transferred back and forth between countries. Each of these countries has a different currency. When merchants or banks buy and sell across country boundaries, the currency exchange rate comes into play. The currency of the one country must be sold and the currency of the new country purchased.
The change in valuation of each of the currencies is fluid. It can be affected in each country by economic health, leadership, natural disasters or political climate. Trades can be initiated between any of the listed currencies. The trader may choose to buy a pair of currencies or to sell a pair of currencies. The major currencies that are traded on the Forex market include the U. S. Dollar, the British pound, the Japanese yen and the Swiss franc. The Australian dollar is also traded, as well as the Canadian dollar.
Unlike other markets such as stock markets and commodity markets, the foreign exchange market doesn’t have a physical location. Trading is done in major financial centers and by governments. The brokers help to process trades done by individual traders. They also usually provide account management services for investors who do not have the time or the expertise to do their own transactions.
Most brokerages who have services for individual traders also supply an online, real time platform. The platform tracks transactions in real time in currencies of interest. Not every broker provides access to every pair. Generally, a wide range of currency pairs can be viewed in real time. The platform almost always provides both current quotes and charts for the pairs that the trader is tracking.
Tutorials are offered with most brokerages and platforms. It is a prudent move to spend time using the platform in a virtual account before trading. You can learn how the platform works and practice the actions necessary to complete a transaction.
Online Forex transactions constitute the largest global market. The number of daily trades is in the trillions. Most of the countries of the world have investors trading in the currency.
Several distinguished trading info sources bring highly factual forex news on a regular continual basis. Certain numbers of the so called forex scams are still existing in the modern world of trading.
By James McKee
Those nations in attendance of the G8 Summit this year in France are slated to discuss the recently formed democracies in Tunisia and Egypt. They are expected to commend these newly formed government and discuss ways in which they can proactively nurture them. This is great news for these nations and should encourage other Arab nations in the region to follow suit in due time. Such a change in the Arab region would be a great thing for the USD on the online forex exchange. The world economy in general will see a lot of positive ascension where the Middle East is concerned due to a cooperative group of nations. Historically the Middle East has opposed the West, and now that there are some cooperative democracies in place there is the chance for progress.
There is still a long way to go where this road is concerned however; there are a lot of people who oppose Middle Eastern cooperation with the west within these nations. The democracies being formed in these countries may choose not to do business with the West and are perfectly within their rights to not do so. The involvement of the IMF is meant to encourage these groups to cooperate with Western interests and participate in the world’s economy. There is a lot of chance for the Middle East to once again come to the bargaining table and profit alongside the West. The increased export in oil from this region would do a great deal to boost Western economies and their currencies.
As the world’s economic powerhouses come together to assess how to address the newly formed Arab governments, many people are left wondering what they will mean to the world’s economy in the long run. Will a new trust and dependence on these nations really bring about a positive change or will there be little to no change whatsoever? The truth is that no one really knows but whatever steps are taken by Western countries to assist those in the Middle East must be made with care. Any misstep could result in serious economic and political fallout for everyone involved. The old regimes in place were actually quite friendly to large corporations that were profit driven, the new governments formed are supposedly in staunch opposition of the “profit at any cost” model and are not likely to be cooperative with many corporations that approach them.
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.
By Aaron Vast
Having been a keen Indian forex trader online for many years, I would even call myself a seasoned forex pro who was making a great living from it. However, there was always something missing from what I was being offered as a forex trader. The countless forex account managers that I have had over the years and made suggestions to, to which they never took my offer up, has always led me to believe that we are just cash cows for this great currency trading industry.
Then one night I was laying in bed, and thought I am going to open up my own white label forex brokerage. After much research and being quoted many different prices, all of which to be fair were way out of my price range, I came across a boutique white label forex provider.
You need control when operating forex, forex control! What better than with metatrader brokers that has the only platform to offer Indian CFD’s of SBI,RIL,ADAG,TATA,JINDAL,WIPRO,INFOSYS
That’s right especially created for forex brokers india and to help trade the forex market india
The helpful account managers outlined what is involved. What you recieve is the same as opening up a shop and having all your stock in their, with all the fixtures and fittings chosen by yourself. Some people may not like this approach, but it does litteraly bring the ownership of your own forex business to a micro level. For too long, myself and other forex traders that I have discussed this quandry with in forums and over lunch will testify that you do feel that these large cumbersome mega companies do no longer listen to their clients. When the forex indsutry was in its infancy many years ago, they had to be pro active in listening to clients, now you just feel that they are slow with payments and we also have the problem of slow order submission and exit.
So with this great scheme, lets say for example that you are in Nigeria and you wish to open up your own forex brokerage you can do this. Sometimes you get the impression that the large companies use these countries to drain them of money and then tell them that we can nolonger except your money. Now it looks like times are changing.
Further to this, if you are extremely new to the way to promote the business, for a smal extra monthly fee you will also recieve the affilate management program (something that is key to being a success in this industry), the live support program, so all support issues are taken care fo for you if you so wish and they also proivde an online marketing module for you as well.
So to sum up, this white label forex provider is of a huge help to the industry. It will make the big players sit up and will also help individuals who know that there is great money to be made in online forex trading, get a foot hold in the forex industry.If you are from India, Nigeria, Iran or anywhere this is the solution for you. Why not give them a try, I know that I do not regret it.
FOREX CONTROL are the best INDIA FOREX BROKERS that are METATRADER BROKERS
The Chinese economy indicated that economic growth in China to cool during the first quarter of 2011 after the nation’s manufacturing growth retreated during the month of December, as Chinese government has tightened monetary policy in April for four times since October 2010.
The Chinese economy issued its PMI manufacturing index reading for the month of May, which retreated to 51.1, compared with a previous reading of 51.8 in April, the actual reading of PMI manufacturing indicates a recovery of the industrial sector in China gets some of decline.
Meanwhile, the inflation rates still above the Chinese government target for the fourth consecutive month during April after China’s consumer price index (CPI) accelerated near the fastest pace in more than two year, which supported the monetary policy makers to hike the rates by 25 basis points to 6.31%.
Moreover, amid the government’s efforts to contain inflation rates, the economy has left the Yuan to continue its appreciation against the US dollar, while higher currency gains could limit inflation rates by reducing the cost of the nation’s imports.
High inflation rates is considered to be a threat to the economical growth experienced by China where officials are trying to halt this increasing pace of inflation by imposing tightening policies and increasing interest rates 4 times since October, which will adversely affect the production and consumption level that creating a negative impact on the GDP.
Read more at http://theforexincomeengine3.info/
China is seeking to control consumer prices that rose 5.4 percent in March, the most in 32 months, without stifling the growth that’s helping to power the world economy.
We can see that the gross domestic product in China will grow at slow pace in the first three months, affected the tightening in benchmark interest rates.
On the other hand, the economy has closed factories to meet energy-efficiency target in one of the government’s efforts to contain inflation appreciation. Further, industrial output growth weakened last month and the worst power shortage in seven years is hurting production at some factories as provinces start curtailing electricity supplies.
Read more at http://sevensummitstrader.info/
The Australian Dollar (AUD) the risk sensitive currency was under pressure with the negative Euro news spilling over to the stock markets and the Aussie. The AUD/USD fell back towards 1.0600 and could fall further as the correction continues. Overall the AUD/USD traded with a low of 1.0605 and a high of 1.0710 before closing the day at 1.0660 in the New York session.
Oil & Gold (XAU) Gold did well with the sovereign risk increasing in Europe adding to safe haven demand for the alternative currency. Overall trading with a low of USD$1486 and high of USD $1516 before ending the New York session at USD$1513 an ounce. Oil volatility continued with a sharp drop to 96.50 reversed and the market ended above $100 a barrel. WTI Oil Closed +$1.20 at $100.10 a barrel.
