earningegold

egold

Mar 18, 2007

Trading with brokers

Foreign exchange brokers, unlike others financial brokers, do not take commission from customer; they only work for banks. Their roles are to bring together buyers and sellers in the market, to optimize the price they show to their customers and quickly, accurately, and authentically executing the traders' orders. The majority of the foreign exchange brokers execute business via phone using an open box system— there is a microphone with the broker that let him communication on the direct phone lines to the speaker boxes in the banks. By using this way, all banks can hear all the deals which are being executed. Due to the open box system, a trader is also able to hear all prices quoted; whether the bid was hit or the offer taken; and the following price. What the trader will not be able to hear is the amounts of particular bids and offers and the names of the banks showing the prices. Prices are unidentified. Sometimes brokers charge a commission that is paid equally by the buyer and the seller. The fees are negotiated on an individual basis by the bank and the brokerage firm. Brokers show their customers the prices made by other customers either two-way ( bid and offer ) prices or one way ( bid or offer ) prices from his or her customers. Traders show different prices because they "read" the market in a different way; they have different opportunity and different interests. A broker who has more than one price on one or both parties will automatically optimize the price.That means, the broker will always show the highest bid and the lowest offer. Therefore, the market has right of entry to an optimal spread possible. Fundamental and technical analyses are used for predicting the future direction of the currency. A trader might analyze the market by hitting a bid for a small amount to see if there is any response. Another advantage is that brokers might provide a broader selection of banks to their clients. Some European and Asian banks have overnight desks for 24 hours optimization dealing with counterparts in American banks, adding to the liquidity of the market.

Mar 16, 2007

A Nice Paid Site

Join this site http://www.clixncash.com/index.php?ref=john19762 under me——I will pay you $0.01. Email to me(john19762@gmail.com) the things below: 1.the verify email and your username of this site. 2.your e-gold account keep active. I will pay you within 48hours.

Risks Accessment Consideration

Trading currency exchange will carry certain level of risk which may not be fitting all investors' appetite. Prior to trading, investor should take consideration of their experience level, monetary objectives, financial management plan and risk-bearing. Credit risk Due to intended or unintended action by counter party, an outstanding currency position may not be paid off as agreed due to voluntary or involuntary action by counter party. Replacement risk When you cannot get refund from the counter party and induce your account deranges, instantly clear off your books to hold the currency price rate. Settlement risk Due to different prices at different time zones between you and your counter party, transaction payment might possible to be declared not enough money before payment is executed. Exchange rate risk Variation of currency rate is due to the worldwide market supply and demand. Price changes may bring to loss from profitable position. Interest rate risk Because of variation of currency rate, in forward spread , there might be some maturity gaps and transaction mismatch. Dictatorship risk. Dictatorship (sovereign) risk refers to the government's interference in the Forex activity. Ttraders have to realize that kind of the risk and be in state to account possible administrative restrictions.

Mar 15, 2007

10 Things You Should Beware of During Currency Trading

Watch out of those who guarantee large profits. Stay away from those who promise no financial free Beware of those everything sounds very easy. Don’t trade on Margin unless you have been trained Please take cautious to online/phony transferring cash in online trading Make sure its really interbank market Job offer as Account Executive might lead you to use your money for currency trading Need to ensure the company background Avoid those company who won’t let you know their background Don’t fully trust any agency or broker, put some effort to understand currency trading by yourself.

Mar 14, 2007

Economic Fundamental Aspect

Share market is very corporate dependant, we need to understand the corporate strategy, what is current corporate trend, who is managing the company? Is the company reliable? Is the annual report reflect true situation? On the other hand, Forex market is economic dependant among countries. Unlike the financial, political and crisis factors, economic factors occur in a steady stream. Therefore, its very import to keep an eye on the economic announcement in order to make the enter and exit decision on your position. Some economic aspects: 1. Information source Update the news on cnn or www.ny.frb.org , forexcapitalnews and so on. 2. Economic data Measurable values of price and changes in price. For example, the cost to hire a stuff for a month, or the cost of a particular commodity. 3. Formulation of economic activity of relationship Consumer spending, government spending, ratio of import and export activity, etc. 4 major consumer spending are clothing, food, living and transportation. The economy is considered growing if people switch to consuming from saving. Government spends on building the country facility, construction, government corporate and service, military, etc. A Country economy is growing if the export revenue is more than import demand. Or that means, country‘s income is more than its spending to get other countries’ goods. A strong country is considered independent by supplying significantly more than demanding. 4. Inflation rate The specific inflation rate involves taking measurable prices, and a model of how people consume, and calculating what the general price level which is from the statistics model. For example, the fuel in U.S. is cost 1 USD 1 litre; To calculate the price level would require a model of how much petrol a person uses in average and what fraction of their income is devoted to this, another factor is how people use the petrol and whether there is any replacement for substitution. 5. Employment This is another critical economic factor. Its basically measured in the stability of different job and satisfaction in sound. 6. Production The production is playing important role nowadays as its chain-influence with other economic aspect. The measurable indicators are based on the change in material prices, Quantity orders for supplies and resources, change in manufacture’s durable goods and unfilled orders, sales and supply performance, Index of Production yield to customer expectation, expanding margin.

Mar 13, 2007

Make Profit in Forex Trading

Foreign exchange trading is mainly about buy and sell activities. The theory is slightly similar with share market. To make the profit, there is the only way which is buy at lower price and sell at higher price, or we can also sell at higher price first and buy at lower price. Is it very easy? It is actually not that difficult. What we need to do is to analyze the forex in a correct way and do the good trade. Together with good money management and proper guideline, I can say that success will be eventually more on your side. Sometimes, trader involves in foreign exchange not because of make profit but just do not want to lose money. Let me take an example, A US Construction Company want to build a subway in India and it is going to take about 7 years with $50 million construction cost. The first thing this company will do is to hedge the dollar value of the project. By buying or selling US dollar against the future market value, no matter how big the amplitude of the fluctuation, the company will not lose any money.

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