InvestMacro FX

By James McKee

Yes it is true, the US Dollar has not exactly been the most stable currency for more than a decade now, but as new government regulations take shape in America the US dollar is fast becoming an even greater symbol of instability. There is a lot of political debate about how to fix the ailing economy in the United States and around the world but as time goes on the two overwhelming schools of thought seem to be that of extreme regulation and aid on one hand and on the other hand you have those who believe that the answer is to let the market correct itself. Regardless of which political ideology you subscribe to one cannot deny the fact that the US Dollar has been and will be in trouble for some time to come.

Among these regulations are those which attempt to place restrictions and regulations upon banks which operate within the housing market. These restrictions are due to the fact that government officials believe that contracts signed by banks are actually signed in bulk when it comes to the housing market, this in turn means that these contracts are not reviewed and are in fact irresponsible to issue as a lending institution. Due to new regulations sales of foreclosed houses has been put on hold indefinitely via a moratorium for Bank Of America foreclosures.

It’s not clear yet whether or not this moratorium will be emulated at other banks, but that is the current consensus of many financial analysts. This could spell out immense trouble for the US currency because if banks are forced to sit on large assets such as homes there will definitely be adverse consequences. This is one of those times I am going to sit back and examine the behaviors of other banks with regard to how they manage their foreclosed properties before I apply current events to my analysis, but it is most definitely something I will be keeping an eye on.

I do not presume to know everything about Forex or even investments in general but I would like to think I can spot a change in the market. My previous articles in regard to spotting current events applicable to the market (such as political tension between Japan and China) are on par with this article. As with anything else take what I say with a grain of salt and do your own investigation before calling your forex broker. Happy Trading!

About the Author

Author is a Forex trader and financial analyst residing in Denver, Colorado with 5 years of experience in trading with an attitude of cooperation through education. It is vital to remain in the loop where new technologies are concerned, make sure to stay up to date on the latest developments and always look for the best forex broker possible when trading!

Market News Video

The dollar is under pressure amid bets that the US Federal Reserve will institute monetary policy to help stimulate the economy. The price of gold continues to rise.

By Owen Trimball – Bull call spreads are option trading strategies involving the simultaneous purchase of call options at a lower strike price and shorting (selling) the same amount of call options at a higher strike price. Both long and short positions will have the same expiry date.

They are called “bull call spreads” because you enter them on the understanding that the outlook for the underlying financial instrument is bullish and you’re creating an overall debit position in your account using call options.

Being a vertical debit spread, the bull call spread will enable you to enter a position much cheaper than simply going long the call options, as well as allowing greater flexibility if the underlying share price should not proceed in the anticipated direction.

To place a bull call spread, do the following:

1. Search the market or analyze your watchlist for a stock you expect to be modestly bullish. Look at a chart showing trends and price action for at least the past year, to determine where the stock is in its overall price cycle.

2. Ensure there are options available for this stock and that there is sufficient liquidity to enter and exit the trade easily, without being at the mercy of market makers.

3. Bull call spreads are most effective for options with at least 90 days to expiry, so check option premiums for strike prices with at that timeframe. You may even wish to consider using LEAPS options for this purpose.

4. Check the implied volatility in the option prices you are considering, to see if any are overpriced or underpriced. Overpriced options for the short leg of the trade give you an advantage, but they are not essential to a successful trade. Beware of overpriced premiums for the long (bought) leg of the spread.

5. Decide which lower and higher strike prices are most appropriate for your spread. You should consider at least 10 percent of the current market value of the share price as a basis for your strike price difference.

6. Consider the following before deciding which spread is best:

(i) Limited Risk – the net debit to place the trade is your maximum loss (ii) Limited Reward – the difference in strike prices minus the net debit to place the trade. (iii) Breakeven – the net debit plus the lower strike price (iv) Return on Investment – the maximum potential reward divided by the amount risked.

7. Create a risk graph to visually represent the trade’s potential. You can use freely available downloadable software such as from Peter Hoadley for this purpose.

8. Make a note in your trading journal of the details of the trade and the reasons why you chose it.

9. Plan your exit strategy before placing the trade. For example, you may consider exiting half the trade once its overall value has doubled, leaving the remainder as a risk-free trade, which you could let run without stress for greater profit potential. Or you may simply wish to set a target such as 80 percent profit for your exit. Option prices work in such a way that the last 20 percent usually takes much longer to realize in a verticial debit spread, so your money would be better used elsewhere.

10. Contact your broker or go online and place your trade. Make sure you do it as a limit order to minimize the cost of the trade.

11. Watch the market in the ensuing days. If it falls below the breakeven but you believe it will rise again, you may wish to consider waiting till the (higher) short position is very cheap and closing it out. This will leave your long position still current – and even if the stock only returns to its original price before expiry date, will usually make you a profit. This strategy is best suited for a stock that has already made a sustained downwards move before you place the trade. Otherwise, go to the next step.

12. Decide when to exit based on what happens to the underlying stock.

(i) If it rises above the short strike price – the maximum profit becomes available and more so with the passing of time as option theta (time decay) goes to work.

(ii) If it rises above the breakeven but not as high as the short strike price – close out the entire position for some profit.

(iii) If it remains below the breakeven but above the long strike price – there may still be a small profit in it, if time value or implied volatility works in your favour. Decide whether to close the trade or risk waiting until expiry date and then sell the long call while letting the short call expire worthless.

(iv) If the underlying stock falls below the long call strike price – consider the strategy in point 11, or close the entire position if you think the stock won’t recover.

About the Author

Visit Owen’s site to understand the advantages of Option Trading and how strategies like Bull Call Spreads can provide an income stream for the rest of your life.

By Warren Seah

Answer these 5 questions and you have the core components of a trading system. You are on the way to having your edge:

1. Which currency pair and at what time frame(Asian/UK/US) to trade? 2. Your Position Sizing and how much risk per trade? 3. How does the system determines when to buy or sell? 4. When to get out of a losing trade? 5. When to get out of a winning trade?

1. Which currency pair to trade and at which time-frame?

One of the first decisions any trader makes is what to trade. It will depend on your personality and preference.

Majors (with USD) Trend more than ranging conditions

Commodity Pairs If you want to participate in trading gold and oil, you can participate in market movements by trading on AUD/USD or USD/CAD. The Aussie has a positive correlation with gold and the loonie has a positive correlation with Oil.

Cross Pair (Does not involve USD) -Ranged bound more than trending

Trading the above currency pairs provide you with high liquidity and instant execution. You will be able to sell or buy at your determined price.

2. Your position size and how much risk per trade?

Position sizing is also called money management. It is the critical component to trading success as Gibbon Burke of MarketHistory.com Observes:

“Money management is like sex: Everyone does it, one way or another, but not many like to talk about it and some do it better than the others.”

The essence of managing your risk is making a decision about how much to buy or sell whenever a trading signal is generated. If you are using metatrader 4, this is the figures you enter into the volume contract.

1.00 (1 standard contract ie 100 000 of base currency, 1 pip = $10 USD) 0.10 ( 1 mini contract ie 10 000 of base currency, 1 pip = $1 USD) 0.01 ( 1 micro contract ie 1 000 of base currency, 1pip = $0.10 USD)

FXEaReview believes that for beginning traders, 2% risk per trade is the maximum risk the trader should undertake in any of his trades. A maximum of 6% risk per month should also applies. How do you calculate how much to buy/sell?

total amount equity X %risk per trade / No of pips from entry price to stop loss / 10 = You will get the volume (formula only applies for majority of MT4 brokers)

Using this formula, you ensure that you are risking 2% in any of the trades.

3. When do you buy or sell?

You buy or sell when certain conditions are met. It depends on how you trade in the market. A trader can use fundamental analysis or technical analysis to trade the market. The common method between the 2 analysis is that the trader will establish his personal trading philosophy. Based on the philosophy, he defined the conditions he wants to trade. When all the conditions are met, a buy or sell signal will be generated.

4. When do you get out of a losing trade?

The time to think most clearly about why and when to exit is before getting in. In any trading system, the most important thing is to preserve your capital.

Before you ever start trading, you already know you will have losses. You also know that small losses do not go on forever with a profitable system. Favourable conditions will eventually emerge at the time you are about ready to throw in the towel. Ways of exiting a losing trade includes:

Time Stop – Trade exited if it did not move in the favourable direction after x number of days ( period can be hrs )

Equity Stop – Trade exited if it reached X% of your account equity

Volatility Stop – Trade exited if price move X times of the Average True Range (10)

5. When do you get out of a winning trade?

Exiting a winning trade can be a challenge since you have to be comfortable letting the profits run as far as it can and then begin to decline before considering an exit with profits. Different systems will use different ways to exit a winning trades. For scalping and ranging systems, they will usually employed a fixed take profit level. Trend following systems will use a trailing stop. That will mean trailing the price by moving average or the 2 bar high/low.

If you answered the 5 questions above, you have mechanised a system for your personal use. These rules will serve you very well when you are in the heat of the trading battle, your rules must be clear, precise and established in advanced. It also helps to be n the defensive:

“We approach markets backwards. The first thing we ask is not what can we make, but how much can we lose. We play a defensive game.” – Larry Hite

About the Author

Warren Seah

Warren examines commercial trading systems and has researched and analysed systems to uncover systems which bring in consistent profits.

Click Here For More Guides On Auto Forex Systems

http://www.FxEAReview.com

Video: The Versatility of the Wave Principle
Timeless Trading Lesson

In the video below, EWI senior analyst and trading instructor Jeffrey Kennedy shows how the Wave Principle can help you identify a high-probability trade set up regardless of the direction of the larger trend.

This timeless educational video was taken from Jeffrey’s renowned Trader’s Classroom series and is being re-released because of its valuable lesson. If a few minutes isn’t enough,
get more FREE practical trading lessons from Jeffrey Kennedy in his latest eBook.

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

By CountingPips.com

The US dollar has been mixed in forex trading action following the better than expected retail sales news released earlier today. The dollar has been gaining ground against the euro, Canadian dollar and the Swiss franc while losing ground to the British pound sterling, Japanese yen and the New Zealand Kiwi. The Australian dollar is currently trading almost unchanged against the dollar from the day’s opening exchange rate.

Gold has come down off its record highs from yesterday with a decline of approximately $6.00 to trade at the $1,370.70 level at time of writing. Oil has edged down by $1.06 to the $81.60 level.

The US stock markets have been mixed with the Dow Jones industrial average falling by approximately 41 points so far today while the NASDAQ is up by over 20 points and the S&P 500 is higher by approximately 1 point.

Today’s US retail sales data showed that sales increased by more than expected in September and rose for a third consecutive month. The advance estimate of monthly retail sales, released by the US Commerce Department, showed that sales advanced by 0.6 percent to $367.7 billion in September from August. The data was better than the market expectations that were predicting a 0.4 percent rise for the month.

The August retail sales data was revised higher from the 0.4 percent originally reported increase to a rise of 0.7 percent. On an annual basis, the September retail sales data rose by 7.3 percent above the September 2009 sales level.

Core retail sales, excluding automobiles, increased by 0.4 percent in September following a 1.0 percent increase in August and surpassed economic forecasts that were expecting core sales to rise by 0.3 percent.

Contributing to the higher sales level for the month was a rise in automobile sales with a 1.6 percent increase while electronics and appliance stores, miscellaneous store retailers and nonstore retailers all had increases of 1.0 percent or more in September.

Food and beverage store sales increased by 0.4 percent while gasoline station sales also showed an increase by 0.4 percent.

By Anton Eljwizat – Gold prices rose significantly in the last two months and peaked at $1381.50 an ounce. However, the 8-hour chart is suggesting that the recent up trend is loosing steam and a bearish correction is impending. Forex traders involved with commodities like this can take advantage of this knowledge by going short on crude oil now, and at a great entry price!

• Below is the 8-hour chart for gold by ForexYard.

• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.

• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.

• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.

• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.

• Point 4: Williams Percent Range also supports the downward direction.

Gold 8-Hour chart

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By GCI Forex Research

Fundamental Outlook at 0800 GMT (EDT + 0400)

USD
The dollar steadied during the Asia session, having earlier clawed back some of the losses sustained after yesterday’s surprise tightening by the Monetary Authority of Singapore. EURUSD traded 1.4009-1.4088, and USDJPY 81.28-81.68. But the dollar is still weaker over the past several days as Fed easing expectations have intensified. Later today, the market is finally expected to hear Fed Chairman Bernanke’s thoughts on the subject of further easing. Investors are uneasy over whether Bernanke will explicitly support the idea and, if he is noncommittal, the dollar could find some further support. Boston Fed President Rosengren remains in favour of more easing, in the belief that it may help reduce unemployment. He said there is a low probability the US will have deflation and that he would not want to see even disinflation at this point. Jobless claims were higher than expected and the August trade deficit was wider. Consumer data is due later and the deadline for the semi-annual report from the Treasury Department on foreign exchange also falls due today.

EUR
ECB Executive Board Member Stark said that inappropriate currency movements are damaging to economic and financial stability, and it would be fatal if currency wars evolved into a race to devalue. He said the ECB would continue to buy government bonds for as long as necessary – his comments in sharp contrast to those of Governing Council Member Weber who recently called for the sovereign bond purchase program to be immediately disbanded. He warned again that individual banks cannot rely on continued ECB support measures for their refinancing needs.

ECB Governing Council Member Bini-Smaghi said emerging market economies must gradually accept stronger currencies and current moves in the FX market are due to the weak dollar rather than a strong euro or yen.

China’s FX regulator said the euro’s rise added approximately $80bn to China’s FX reserves between Q2 and Q3, purely due to valuation. This reveals that a sizeable portion of China’s FX reserves are already euro-denominated.

JPY
Japanese lawmakers and policy makers made plenty headlines during the Asia session. In response to USDJPY hitting a new 15-year low yesterday, Finance Minister Noda said this was due to a broad-based dollar decline and not just against the yen. He warned that he is still watching FX markets with great interest and will take decisive steps if needed to curb excessive FX moves. He added that he would like to discuss ways to maintain international currency order at the upcoming G20 meeting, due to be held on Oct. 22-23. However, he warned that he would decide whether or not to intervene “regardless of the G7 or G20”.

Prime Minister Kan says he is concerned about the yen’s current strength. Economy Minister Kaeida added that the yen’s current rise is no good for the economy, and said he expects timely steps will be taken to counter the yen’s rise. The BoJ provided two speakers. Governor Shirakawa said that Japan’s return to sustainable growth may be delayed, and that the BoJ will take appropriate action. Deputy Governor Yamaguchi said further easing would be possible by extending the BoJ’s new asset purchase scheme, repeating remarks made earlier by Shirakawa.

Industrial production growth moderated somewhat in August, but still managed to rise by +15.1% y/y (prev. 15.4%).

TECHNICAL OUTLOOK

USDCHF support at 0.9225.

EURUSD BULLISH Recovery through 1.4045 exposes 1.4194 and 1.4371 Fibonacci resistance. Support at 1.3908.

USDJPY BEARISH The pair targets 79.75 with scope for 77.91 next. Resistance holds at 83.03 ahead of 83.99.

GBPUSD BULLISH Rise through 1.6018 favors extension of the uptrend towards 1.6201 ahead of 1.6379. Support at 1.5888 ahead of 1.5670.

USDCHF BEARISH Outlook is bearish; break below 0.9500 exposes 0.9225. Resistance at 0.9729 ahead of 0.9918 breakout low.

AUDUSD BULLISH Momentum is positive; expect recovery towards 1.000 ahead of 1.0166. Support at 0.9834 ahead of 0.9709 reaction low.

USDCAD BEARISH Targets 0.9931 with scope for 0.9820 next. Resistance at 1.0106.

EURCHF BULLISH Upside potential held at 1.3494 ahead of 1.3665. Initial support lies at 1.3265 ahead of 1.3072.

EURGBP BULLISH Currently holds resistance at 0.8840 ahead of 0.8894 and 0.9039. Support holds at 0.8689 ahead of 0.8563.
EURJPY BULLISH While support at 112.86 holds, expect recovery towards 115.68 ahead of 116.68 Fibonacci resistance.

Forex Daily Market Commentary provided by GCI Financial Ltd.

GCI Financial Ltd (”GCI”) is a regulated securities and commodities trading firm, specializing in online Foreign Exchange (”Forex”) brokerage. GCI executes billions of dollars per month in foreign exchange transactions alone. In addition to Forex, GCI is a primary market maker in Contracts for Difference (”CFDs”) on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.

DISCLAIMER: GCI’s Daily Market Commentary is provided for informational purposes only. The information contained in these reports is gathered from reputable news sources and is not intended to be U.S.ed as investment advice. GCI assumes no responsibility or liability from gains or losses incurred by the information herein contained.

By Russell Glaser – The dollar continues to slide during the European trading session as traders eye a speech today by Federal Reserve chairman, Ben Bernanke. The speech could increase the negative momentum behind the dollar’s bearish move as the major currencies advance on the potential quantitative easing.

Yesterday’s volatile trading session which had the dollar falling to new lows appears to have carried over into today’s trading. The EUR/USD is moving higher at 1.4080, up from an opening day price of 1.4036. The USD/JPY is lower at 81.20, down from an open of 81.40. The Cable is posting solid gains as the GBP/USD is pushing for a new 4-month high at 1.6065, up from 1.6000.

Traders will be looking towards the 12:15 GMT speech by Bernanke as to the next move by the Fed. The speech could hint at a second round of quantitative easing which could push the dollar lower versus the majors. However, markets may have already priced in a renewal of quantitative easing, leaving the dollar oversold should Bernanke’s speech not address an easing of monetary policy.

Yesterday’s large moves by the major currencies could continue in the New York trading session. The EUR/USD is testing yesterday’s 9-month high at 1.4120. The USD/JPY may fall below the 81 level for the second time this week, and the GBP/USD looks to move above yesterday’s high of 1.6060 to the next resistance of 1.6250.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

A tightening of monetary policy in Singapore was the main factor in the dollar dropping to record lows against several of its main currency rivals in trading yesterday. The EUR/USD pair went as high as 1.4123 before staging a downward correction. At the moment the pair is trading around 1.4025, still well above the psychologically significant 1.4000 level. Whether or not the dollar can extend its gains today will likely depend on a batch of US news events.

Economic News

USD – USD Values Likely to Be Influenced by Bernanke Speech

After plummeting to record lows against its main currency rivals in early morning trading yesterday, the greenback was able to stage a recovery and recoup some of its losses. The USD/JPY pair hit its lowest point since April 1995 yesterday, when it dropped to the 80.88 level. While a correction did take place, investors continue to closely monitor the pair for any surprise moves. A similar trend occurred with the USD/CHF pair. After dropping as low as 0.9460, the cross was able to steadily increase throughout the day, and is currently trading around the 0.9550 level.

Today, investors will be paying close attention to a speech from the Fed Chairman, set to take place at 12:15 GMT. Any hints as to when, and to what extent the Fed may enact a policy of quantitative easing will likely determine dollar values for the near future. The current rumor is that the level of quantitative easing set to take place is not as great as originally thought. Should the Fed Chairman allude to this, the dollar will likely see some gains to close out the week.

In addition, traders will want to pay attention to the US Core CPI and Core Retail Sales figures, both set to be released at 12:30 GMT. While neither is forecasted to show substantial gains in the US economy, anything above the predicted values will likely help the USD in the short term.

EUR – EUR Tumbles in Overnight Trading

In a sign of just how fragile the euro-zone economies are, the 16-nation currency dropped against virtually all of its main rivals in overnight trading. Analysts attribute the drop to traders who felt that the euro was overvalued against most of the other currencies. Consequently, the EUR/JPY pair fell over 60 pips since last night and is currently trading around the 114.15 level. In addition, EUR/USD also saw a drop of around 50 pips before settling in at its current level of 1.4025.

Today, euro traders will want to pay close attention to the European CPI figure set to be released at 09:00 GMT. The CPI measures the change in price for consumer goods over the last month inside the euro-zone. The figure is considered to be a key indicator of inflation and tends to generate market volatility. Should today’s figure come in at its predicted level of 1.8%, the euro may see a slight boost in morning trading. In addition, traders will want to pay attention to the speech from the US Fed Chairman at 12:15 GMT. Any talk about quantitative easing in the United States is likely to generate a lot of market activity, particularly among the EUR/USD pair.

JPY – Yen Falls after Nearing Record High against USD

After dropping to 80.88 yesterday, the USD/JPY pair has since staged a minor correction and is currently trading around the 81.40 level. While the pair is still a long way from hitting its all-time low of 79.75, analysts are paying close attention to any intervention the Bank of Japan may stage to bring the oft-traded cross back to a more reasonable level. Any gains the yen makes on the US dollar are largely seen as unfavorable in Japan, which depends on a weak currency to boost its export industry.

Today, any news out of the US regarding future quantitative easing measures is likely to impact the USD/JPY pair. Particular attention should be given to the speech from Fed Chairman Bernanke at 12:15 GMT. In addition, should any of the numerous US indicators set to be released today come in worse than expected, risk aversion could return to the market and boost the yen to close out the week.

Crude Oil – Crude Oil Slips Following US Report

A US report showing that fuel consumption fell to its lowest level in close to a year caused crude oil prices to slip yesterday. The commodity fell as low as 82.20 before staging a slight recovery in overnight trading. The poor economic climate in the US is largely to blame for the low consumption rates. Yesterday’s worse than expected unemployment data highlighted how far the world’s largest energy consumer needs to go before fully recovering from the economic crisis.

Today, traders are advised to follow the trend the US dollar takes in order to gauge the direction oil prices will go. Should the dollar fall in trading today, investors will likely turn to commodities like oil as an alternative investment. At the same time, if the dollar continues the upward correction started yesterday, oil is likely to drop further to close out the week.

Technical News

EUR/USD

The Stochastic Slow on the 8-hour chart shows a bearish cross has formed, and that a downward correction may take place today. This theory is supported by the Williams Percent Range on the same chart, which is currently in overbought territory. Going short with tight stops may be the preferred strategy today.

GBP/USD

The Relative Strength Index on the 4-hour chart indicates a downward correction could occur for the pair today. In addition, the Stochastic Slow on the 8-hour chart shows a bearish cross has formed. Traders will likely want to go short today in order to take advantage of the upcoming bearish trend.

USD/JPY

Despite its prolonged bearish trend, most technical indicators are showing the pair trading in neutral territory, meaning it is likely to stay around its current level for the immediate future. The exception is the Relative Strength Index on the 8-hour chart, which is approaching oversold territory. Still, traders may want to take a wait and see approach today in order to get a better idea of where the pair is heading.

USD/CHF

The MACD on the 4-hour chart is showing a bullish cross has formed, indicating an upward correction may take place today. At the same time, most other indicators are showing the pair in neutral territory. Taking a wait and see approach may be the wise choice for traders today.

The Wild Card

Dow Jones Industrials

The Williams Percent Range on the 8-hour chart shows the pair in overbought territory, indicating a downward correction may take place. The MACD on the 4-hour chart shows a bearish cross has formed, supporting our theory. CFD traders may want to open up short positions in order to take advantage of the impending bearish movement.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.