Pakistan’s Karachi Stock Exchange Expels 3 Brokers

Aug. 15 (Bloomberg) -- Pakistan’s Karachi Stock Exchange, which barred five brokers from trading shares last month, expelled three of them for not resolving investor complaints.

Eastern Capital Ltd., Cliktrade Ltd. and Capital One Equities were expelled because of their failure to comply with regulatory directives, the exchange said in a statement in Karachi today.

The expulsion of these brokers may lead to criminal proceedings against them, Sohail Dayala, commissioner, Securities & Exchange Commission of Pakistan, said last month, There are a total of about 1,200 investor complaints against the five brokers involving approximately 1 billion rupees ($12 million), he said.

The stock exchange will now invite investor claims against the expelled brokers, which will be assessed by an independent audit firm, the statement said. The brokers’ licenses will then be sold and the funds will be used to settle the claims.

MKA Securities and Prudential Securities, two other brokers which were also suspended because of investor complaints, were given until Aug. 31 and Sept. 15 respectively to resolve matters, it said. MKA Securities’ hearings are still continuing and Prudential has made part payment toward their financial obligations, according to the statement.

“These actions will contribute to restoring the confidence of investors and improving market sentiment,” the statement said.

The benchmark Karachi Stock Exchange 100 index, which fell by a record 58 percent in 2008, has risen 39 percent this year, data compiled by Bloomberg show.

Country’s forex reserves improve by $430 mln

KARACHI: Pakistan's total liquid foreign exchange reserves stood at $12,269.8 million on July 4, 2009, State Bank of Pakistan said on Thursday.According to break-up, foreign reserves held by SBP were $8,963.8million while net forex reserves held by banks (other than SBP) $3,306.0 million.

Tips On How to Start Forex Trading

1. You can make money with Forex Trading if you are fully equipped with the knowledge and skills required in Forex trading.
2. 
   You can make money with Forex Trading if you are committed to online currency trading since online currency trading is considered the future of Forex trading
3. 
   Before you start in Forex trading, it is necessary for you to set up your account with a Forex broker. Choose from the best of the available Forex brokers online. Research on those who require fees which fit your budget and most especially those who are very experienced and skillful in Forex trading.

Forex Trading For Beginners - First Get Trained

You already know that Forex trading (also known as currency trading), is a great (and legal) way to make money at home. But do you know that more than half of the Forex traders are actually Forex losers?

70% of Forex Traders lose money in the market; and only the remaining 30% work towards earning millions annually. These 30% are a success at it because they have Forex trading skills and are formally trained.

If you are serious about working at home, making a fortune by trading at home, you should consider LEARNING about Forex before you start. Forex market is not a one off thing that a beginner can take risk with. An investor needs to brush up his/her skills before nose-diving into it.

Forex is an abbreviation for Foreign Exchange, and it is a system where currency of one nation is traded for another. This is the reason why it is done in currency pairs. The major currency pairs are the Euro Dollar (EUR/USD); the British Pound (GBP/USD); the Japanese Yen (USD/JPY) and the Swiss Franc (USD/CHF).

For the understanding of beginners, Forex Trading is about simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and therefore as already mentioned earlier, are traded in pairs.

Forex market is different from our regular shares & futures market. Since the transactions in Forex trading are conducted between two counterparts over the telephone or via an electronic network, Forex Market is treated as an Over the Counter (OTC)/ 'Inter-bank' market.

Forex trading is a 24-hour market that begins in Sydney every day and covers the globe as the business day begins in each financial center, from Tokyo, London, to New York and so on. Likewise an average small to medium trader can trade as often as 10 times a day.

Forex Trading is referred as 'Interbank' market because for years it was dominated by banks. Of late though other participants like large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators have also joined it.

The most often asked question by beginners in Forex trading is, "How much money can I make and how soon?" The one and only answer to this vague question is rather simple. "Ultimately it depends on your appetite for risk". Assuming you trade at the 100:1 leverage - while this type of leverage allows investors to maximize their profit potential, the potential for loss is also equally high. A more pragmatic margin trade for beginners in the Forex markets would be 20:1.

Forex trading skills and its complexities can be learnt irrespective of our educational background, age, gender, country etc. Joining a forex trading training program that is straight forward can help you to understand the complexities of the Forex and teach you to trade profitably.

Copyright 2009 - Vahid is a forex trader and forex market analyst. Hiswebsite is the most reliable reference for advanced, intermediate and beginnerforex traders: Trade Forex at Forexoma.

Join Vahid's program now and start making money and learning forex at thesame time. Earn while you learn: Earn Money through Forex.

Forex Fundamental Analysis and Forex Technical Analysis

There are two major methods used to analyze and forecast the behavior of the Forex market - Technical (chart) analysis and Fundamental analysis.

Forex Fundamental analysis is a type of market analysis which involves studying of the economic situation of countries to trade currencies more effectively. Most FOREX traders rely on analysis to make plan their trading strategy. The other common form of analysis is technical analysis.

Both are distinct in their own ways, but on the other hand both are considered useful forecast tools for any Forex trader. They work towards the same goal - in predicting price or movement of currency in the forex market.

In technical (chart) analysis trader studies the effect while the fundamentalist studies are about the cause of market movement. The more successful forex traders have been seen to combine both types of analysis for results that are fine tuned further.

Forex technical (chart) analysis, forecasting price movements & future market trends are based in charts study of past market action. Forex technical analysis is more focused on what has actually happened in the market, instead of what should ideally happen. It takes into account the price of currency and the volume of trading, and then charts are developed from such a data which is used as its primary tool. One big advantage of technical analysis is that the forex trading analysts can follow many markets and are capable of trading currency simultaneously.

Chart analysis is built on some basic and yet crucial principles.

• Market action discounts everything!
• Prices move in trends
• History repeats itself.

There are five categories in Forex chart analysis theory:

• Indicators (oscillators, e.g.: Relative Strength Index (RSI)
• Number theory (Fibonacci numbers, Gann numbers)
• Waves (Elliott wave theory)
• Gaps (high-low, open-closing)
• Trends (following moving average).

For an aspiring forex trader, learning technical analysis skill is a major factor and her/his success depends on his in-depth knowledge to a great extent. One should also study about the Forex technical analysis tools while studying about Forex technical analysis.

Copyright 2009 - Vahid is a forex trader and forex market analyst. Hiswebsite is the most reliable reference for advanced, intermediate and beginnerforex traders: FX Signals.

Join Vahid's program now and start making money and learning forex at thesame time. Earn while you learn: ForeignExchanging.

Learn Forex Easy and Make Big Profits

• Before You Jump into the Market

Many people who think about starting off in Forex trading want to be able to learn Forex easy and jump right into it. The enthusiasm is great and that's a key component in being successful but it is also important to learn why most people do not profit.

• Why People Lose Money

The majority of people that trade in the Forex market lose money for very simple reasons that are quite staggering. The main reason that people lose money in the Forex market is because they are not competent enough and do not take the time to attain the correct acumen level needed and they just start jumping into the market like a goldfish in a sea of sharks. If you want to learn Forex easy and stick around in the market long enough to survive there, you must understand that there are some difficulties that you must overcome to actually turn a profit.

There are enormous profits for the taking in the Forex trading market if you do it right, but there are also risks that must be assessed. There is a plethora of information that we can use to make our choices when we trade. Most frequently used in assisting traders are the news, the Internet, and most importantly -- software tools that forecast the movement of the market which allow you to get in just at the right time to reap substantial benefits. More on that below...

• Discipline and Consistency

You need to be disciplined when you are making trades and need to stick to a consistent trading system. The Forex trading market can be like a wild wild West which entices you to make all type of irrational decisions and to act without thinking. You need to stick to a trading system and its guidelines in order to be successful because the main thing that drives market prices are emotion. This is the reason why there is such a disparity in some of the prices of currency being traded everyday. The Forex market is a very volatile market with price changes happening every split second. These are known as pips. Consistency is the key to profiting on each of your trades every time they are made.

You need to consider taking in all necessary information pertinent to the market such as economic indicators and other useful data. This will allow you to learn Forex easy and quickly while at the same time making sure that you don't fall by the wayside in doing so. Something innovative that does all of this hard studying for you is called automated trading software. The amounts of money you can make by using an automated trading system are enormous, all beyond the scope of this article, but which I discuss extensively on my website.

This article is about Forex basics but you can learn more about a specific Forex systematic method that I personally use to make gains upwards of 300-500% weekly on every trade with very minimal losses in between at [http://wealthyforextrader.webs.com/]my Forex Trading website freely and I recommend stopping by if Forex trading sounds of the slight bit interest to you or if you are serious about making money right from in front of your computer.

Pakistan Forex Brokers Directory

HABIB EXCHANGE COMPANY
3,Chapal Plaza, Hasrat Mohani Road
Ph: 2434311, 2436799 Fax: 2436799




HARAT MANAGEMENT (PVT) LTD.
133, Uni Centre, Shara-e-Iraq, Saddar
Ph: 519857, 528024


INTER LINKS
145, Hashmi Shopping Centre, Abdullah Haroon Road, Saddar
Ph: 7771689, 7771688, 7771224 Fax: 7721629




INTERNATIONAL MONEY CHANGER
211, 2nd Floor, Dalmon Centre, Tariq Road
Ph: 4531438, 4531539


KHANANI & KALIA INTERNATIONAL (PVT) LTD.
215,2nd Floor,Ruby Centre, Boulton Market, Talpur Road
Ph: 2422883, 2422881, 5680204 Fax: 2411963




MAWARID EXCHANGE
6, Amber Pride, Block-6, P.E.C.H.S, Shahrah-e-Faisal
Ph: 4549618, 4549615, 4549616 Fax: 4549619 mawar


ORIENTAL EXCHANGE
4, Amber Pride, Shahrah-e-Faisal
Ph: 4538698, 4535968 Fax: 4538336 svi@pakent.3pt




PAKISTAN SAFE DEPOSIT LOCKERS (PVT) LTD.
BC-8, Jason Centre Block-9, Clifton
Ph: 573005


PARACHA MONEY EXCHANGE CO.
10 Saleh Mohammadi Street, M.A.Jinnah Road
Ph: 2413917, 225549, 225167




PRIME INTERNATIONAL
A-3, C.C.Area,Block 7/8, 2nd Flr.Al-Fateh Chamber, K.C.H.S
Ph: 4533175, 4533174 Fax: 4531191


THE BOOST INTERNATIONAL
A-3, G.Floor, Al-fatah Chambers, Block-7/8, K.C.H.S, Opp: Dutyfree Shop
Ph: 4533460, 4533459, 4529847 Fax: 4531191


TOPRA MONEY CHANGER
#3,Sir Jehangir K. Trust Bldg., Denso Hall, M.A.Jinnah Road
Ph: 7726511, 7731550


WALL STREET INTERNATIONAL EXCHANGE
4,Al-Rahim Tower, I.I.Chundrigar Road
Ph: 2440664, 2440661, 2440662 Fax: 2440665


ZAINAB MONEY EXCHANGER
1st Floor,Zainab Market, Abdullah Haroon Road, Saddar
Ph: 528050, 529697, 523617




A TO Z MONEY CHANGER
184 Paradise Shopping Centre, Saddar
Ph: 5686968, 5686650


AAKRA MONEY EXCHANGE
Shop No.34-35, Aakra Centre, Saddar
Ph: 7231777, 7231666Fax: 7231999


AL-DUBAI EXCHANGE INTERNATIONAL
Suite#9, Madina City Mall, Abdullah Haroon Road
5650571-3


AL-QAEM EXCHANGE CO.
Motandas Building, M.A.Jinnah Road
Ph: 2427074, 2411736 Fax: 2427074


AL-RAHIM INTERNATIONAL EXCHANGE
3,Al-Rahim Tower, I.I. Chundrigar Road
Ph: 2440548, 2440545, 2440546, 2440547 Fax: 2440


ALI INTERNATIONAL
1st Floor, Ruby Centre, Boulton Market
Ph: 2426841, 2422089 Fax: 2419583


Balgaam International Authorised Money Changer
5,6 Ismail Centre Main Badurabad Chowrangi.
4942198,4933057


BOSTAN INTERNATIONAL
12-A, Block 6, P.E.C.H.S., Shahrah-e-Faisal
Ph: 444993, 444992


CAPITAL MANAGEMENT (PVT) LTD.
610,6th Floor,Kashif Centre, Shahrah-e-Faisal
Ph: 513598, 513568 Fax: 5684171


CHANDA MONEY CHANGERS
1-A,G. Floor,Hari Odhani St.,Opp. Nigar Cinema,Pan Mandi
Ph: 7729626, 7726986, 7734101, 7774417 Fax: 7726


CITY SECURITIES
13-16,Mezzanine Floor, Progressive Plaza,CL-10, Beaumont Road
Ph: 5679595 Fax: 5679599


DELTA INTERNATIONAL (PVT) LTD.
Baghpatti Building, Altaf Hussain Road
Ph: 2427257, 2426720 Fax: 2414554


DOLLARINN
Main University Road Near Mumtaz Manzil


FINEX SECURITIES LTD.
213,Chapal Plaza, Hasrat Mohani Road
Ph: 2431739, 2431738, 2432949


GLAXY INTERNATIONAL
10-11,Ruby Centre, Talpur Road
Ph: 2425148, 2425203, 2425004 Fax: 2420766


H.A. INTERNATIONAL
5-Amber Pride, Shahrah-e-Faisal
Ph: 4529942, 4529941, 4529908, 4529909

Famous Forex Quotes

1. “If you get in on Jones’ tip; get out on Jones’ tip”. If you are riding another person’s idea, ride it all the way.
   
2. Run early or not at all. Don't be an eleven o'clock bull or a five o'clock bear.
   
3. Woodrow Wilson said, "a governments first priority is to organize the common interest against special interests". Successful traders seek out market opportunities capitalizing on the reality that government's first priority is rarely achieved.
   
4. People who buy headlines eventually end up selling newspapers.
   
5. If you do not know who you are, the market is an expensive place to find out.
   
6. Never give advice-the smart don't need it and the stupid don't heed it.
   
7. Disregard all prognostications. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word-nobody! Thus the successful trader bases no moves on what supposedly will happen but reacts instead to what does happen.
   
8. Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough.
   
9. Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment yourself if a trade continues winning without you. Chances are it won't continue long. If it does console yourself by thinking of all the times when liquidating early preserved gains you would otherwise have lost.
   
10. When the ship starts to sink, don't pray-jump!
    
11. Life never happens in a straight line. Any adult knows this. But we can too easily be hypnotized into forgetting it when contemplating a chart. Beware of the chartist's illusion.
    
12. Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic.
    
13. Whatever you do, whether you bet with the herd or against, think it through independently first.
    
14. Repeatedly reevaluate your open positions. Keep asking yourself: would I put my money into this if it were presented to me for the first time today? Is this trade progressing toward the ending position I envisioned?
    
15. It is a safe bet that the money lost by (short term) speculation is small compared with the gigantic sums lost by those who let their investments "ride". Long term investors are the biggest gamblers as after they make a trade they often times stay with it and end up losing it all. The intelligent trader will . By acting promptly-hold losses to a minimum.
    
16. As a rule of thumb good trend lines should touch at least three previous highs or lows. The
17. more points the line catches, the better the line.
    
18. Volume and open interest are as important to the technician as price.
    
19. The clearest and easiest way to determine a trend is from previous highs and lows. Higher highs and higher lows mark an uptrend, lower highs and lower lows mark a downtrend.
    
20. Don't sell a quiet market after a fall because a low volume sell-off is actually a very bullish situation.
    
21. Prices are made in the minds of men, not in the soybean field: fear and greed can temporarily drive prices far beyond their so called real value.
    
22. When the market breaks through a weekly or monthly high, it is a buy signal. When it breaks through the previous weekly or monthly low, it is a sell signal.
    
23. Every sunken ship has a chart.
    
24. Take a trading break. A break will give you a detached view of the market and a fresh look at yourself and the way you want to trade for the next several weeks.
    
25. Assimilate into your very bones a set of trading rules that works for you. The final phase in a bull move is an accelerated runaway near the top. In this phase, the market always makes you believe that you have underestimated the potential bull market. The temptation to continue pyramiding your position is strong as profits have now swelled to the point that you believe your account can stand any setback. It is imperative at this juncture to take profits on your pyramids and reduce the position back to base levels. The base position is then liquidated when it becomes apparent that the move has ended. 

A Detailed Overview of Forex Market

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

1. Decentralised, over-the-counter market, also known as the 'interbank' market


2. Main participants: Central Banks, commercial and investment banks, hedge funds, pension funds, corporations & private speculators


3. The free-floating currency system began in 1973, and was officially mandated in 1978


4. Online trading began in the mid to late 1990's

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 

Currency rates of NBP

KARACHI, Aug 27 (APP): Following are the selling/ buying rates of major currencies issued by National Bank of Pakistan (NBP) here on Monday.

U.S. dollar 83.33/81.30
Saudi riyal 22.22/21.67
U.K. pound stg 136.99/133.65
Japanese yen 0.8814/0.8596
Euro 117.86/115.00
U.A.E 22.69/21.12

Earn Money through stock market

you should on the way to the produce product. The first step, you should learn to control. When you step into the game, please learn how to control your body and the set of the different button. The NPC, shop, TP, and TT are also very important. Please keep in mind, do not require any person with any items. On account of that everyone needs shall use the money in game. So this kind of behavior, people will hate you in game. The second step is the sweat. What is the sweat? At this game, every body has energy, it is the energy that no matter what you produce product, weapon and tools, and you will use it. So you can try to collect sweat and sell it to the players, but when you sell it to the shop, you will not earn money. How to collect the sweat? When you have no weapons, you can click the body, and you will look at the shine around you.

If you success, you can find that in the screen there is a window, there is sweat in it. The third step is recognizing the building. Open the map, you can find that there are 32 tp in the game. At the first time, you must advance by running, when arrive at it, you can use tp to delivery it to different place. You can see red button and blue button, the blue button is tp. The forth step is the item. No matter where are you, you can hear that somebody called buy gold. In the world, every product you can click the right button. 

Management Theories from Islam: Economistan

The management theories of Islam as espoused and practiced by the pioneers of Islam, might be centuries old but they still hold to this day as some of the best ways of managing and leading.
Management Theory Y
The concept of theory Y managers is demonstrated by the Holy Prophet Muhammad’s (peace be upon him) personal way of leading and managing the affairs of the Muslim Ummah (community). Many early Muslims of the time used to come to the Holy Prophet (PBUH) themselves to ask for any service they could render to the newly born Muslim community. Never was force ever used to accomplish any task, rather it was based on volunteer service to the cause. Even at the times of the battles against the pagans of Mecca, many Muslims would come forward to render their services, even young teenagers. And the Holy Prophet (PBUH) would refuse their plea on the premise of them being too young for such a task.
Flat and Lean Organization
The Holy Prophet (PBUH) used the concept of a flat and lean organization and was easily accessible to the Muslim society of the time who would come with a lot of issues and affairs to be resolved by the Prophet (PBUH). The Prophet(PBUH) would always lead from the front and never shied away from doing his personal chores like cooking, stitching and cleaning or helping others despite being the leader of the Muslims.
Participative Style of Management Based on Consultations and Brainstorming
The Prophet (PBUH) used a consultative form of decision making, in which he would listen to the ideas of others and only then a decision would be taken. Brainstorming was extensively used and encouraged. Furthermore, there was no discrimination on the basis of race, creed or color. During one of the battles, the battle of Khandaq where the Muslim army faced a much bigger foe of ten thousand Meccans, a brainstorming session was held on how to ward off the pagans of Mecca. Many ideas were entertained, but the idea that was implemented came from Salman Farsi, a Persian by ethnicity, who had come all the way to Arabia searching for the True Prophet. He gave the idea of digging a big ditch around the entire city, called the “Khandaq”, which was many meters wide and deep. The Khandaq would make it very hard for the invading army to enter the city, as was the norm for battles in Persia. Even at the time of digging the Khandaq, an arduous task, the Prophet led from the front and performed his due share in excavating it. It is also reported that there was a very hard rock at one place of the Khandaq which the companions of the Prophet were having difficulty breaking. The Holy Prophet(PBUH) helped by......

RAW involvement in East Pakistan: Pakistan Daily

US report details direct RAW involvement in East Pakistan secession
A sensational American report has confirmed the Research and Analysis Wing (RAW), India’s most powerful intelligence agency, was directly involved in the secession of East Pakistan into Bangladesh, and is currently engaged in similar activities. RAW has a long history of activity in Bangladesh supporting both secular forces and the area’s Hindu minority, masterminding the break up of Pakistan in 1971,
says the report made available The report has been prepared by the innocent sounding Federation of American Scientists (FAS), a group which is however engaged in analysis and advocacy on science, technology and public policy concerning global security, especially about countries which have nuclear capability.
It is a privately funded non-profit policy organisation, whose Board of Sponsors includes 55 American Nobel laureates. FAS was originally founded as the Federation of Atomic Scientists in 1945 by members of the Manhattan Project, who produced the first atomic bomb. RAW is extensively engaged in disinformation campaigns, espionage, sabotage and terrorism against Pakistan and other neighboring countries, reveals the sensational secret report. It also gives details of the truly alarming involvement of RAW in terrorist activities in Pakistan. The report reveals the involvement of RAW in Bangladesh dating from the 1960s, when it promoted dissatisfaction against Pakistan in the then East Pakistan, including funding Mujibur Rahman’s general election in 1970 and providing training and arming to the Mukti Bahini. The report claims an estimated 35,000 RAW agents have entered Pakistan at various times between 1983-99, with 12,000 having worked in the past or working presently in Sindh, 10,000 in Punjab 8,000 in North West Frontier Province and 5,000 in Balochistan. “As many as 40 terrorist camps are currently operating at Rajasthan, East Punjab, [occupied] Kashmir, Uttar Pradesh and other parts of India and are run by RAW’s Special Service Bureau [SSB],” the report reveals. The report further confirms that throughout the Afghan War, RAW was responsible for the planning and execution of terrorist activities in Pakistan to deter Islamabad from supporting the Afghan liberation movement against India’s ally, the Soviet Union.

Forex Development History

Foreign exchange development history - exchange market evolution foreign exchange development history - exchange market evolution gold remittance system and Bretton woods agreement.

In 1967, a Chicago bank rejected to provide pound loan to a professor named Milton Friedman, because his purposed was to use this fund to sell short the British pound. Mr. Friedman realized excessively that the price ratio from the British pound to US dollar at that time was high, he wanted first to sell the British pound, after the British pound fell he buys back the British pound to repay the bank again. This family bank rejects the loan offer based on the "Bretton woods Agreement" which was established 20 years ago. This agreement has fixed the various countries' currency to US dollar exchange rate, and the price ratio between the U.S dollar and the gold is also fixed to 35 US dollars to each ounce of gold.

The Bretton Woods Agreement was signed in 1944, the purposed was to prevent the currency to escape between countries, and also to limit the international speculation, thus to stabilize the international currency. Before this agreement was signed, the gold remittance standard system which was widely used since 1876 - was leading the international economy system until the First World War. In the gold remittance system, the currency was at the stable level under the support of the gold price. The gold remittance system has abolished the old time king and the ruler which depreciates the currency value unlawfully, which will lead to inflation.

In the 1980s, along with the published of the computer and correlation technology, the international capital has flow rapidly, and strongly related the Asia, Europe and America market. Foreign exchange business volume from 80's rises daily from 70 billion US dollars to 150 billion US dollars after 20 years.

European market inflation

One of the reasons why the foreign exchange developed rapidly was the rapid development of the Euro dollar market. In a Euro dollar market, US dollar is stored beyond the border of America banks. Similarly, the European market is refers to property depositing outside the currency rightful owner country market. A Euro dollar market was formed at first in the 50's, at that time Russia deposited its petroleum income beyond the US border, avoid being freeze by the US government. This has formed a large offshore US dollar national treasury which is beyond the control of the US government. The American government has formulated a law to prohibited US dollar from lending money for the foreigner. Because the degree of freedom of the Euro dollar market is bigger and the rate of return is bigger, therefore it has large attraction. Starting from the 80's, the American company starts to borrow loan from the offshore market, they discovered that the European market is a wealth center which consists of large amount of floating capital which could provide short-term loan.

London once was (until now still is) one of the main offshore market. In the 80's, the Bank of England in order to maintain its global finance industry center dominant position, using US dollar as England pound substitution to make loan, thus to become a Euro dollar market center. London's convenient geographical position (is situated between Asian and Americas market) also helps to maintain the European market as the dominant position.

What Is The Difference Between Forex and Futures?

1. A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market, moreover Forex traders could make more profit from the Forex market due to the larger trading volume (the transaction volume is a few times larger), the REFCO Switzerland rich transaction platform allowed transaction between 1-100 times to be carry on, moreover a Forex trader could decide his or her own transaction amount, for example: Your account has $30,000, the basic transaction unit is each $1,000 (which transaction amount in $1.00, million), namely, so the proportion of the margin of each transaction unit is 100:1.
2. The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required, the Forex trading system will automatically settle your position, this means even if a Forex trader suffered losses, moreover if the market is suffering from a disaster fluctuation, your loss could not surpass your account amount. In order to understand the advantages, please apply for the demo account to carry on the complete zero risk.
3. A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world. At present the trading volume in the Forex market is 140 billion Dollars, such big market will completely digest your transaction cash.
4. A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open, such linkage market enable you to do 24 hours transactions, also provide flexibility for Forex trader to do transaction. 

Tips on How to Have the Greatest Forex Training Possible

As a beginner, should a forex trader get in a Forex Study course? Definitely yes, not all beginner traders go to this process, they just get themselves familiar and just jump right in. In the end, the pain and the tears. You have probably heard that 5% of the Forex Traders get profits consistently.

Tips on How to Have the Greatest Forex Training Possible

As a beginner, should a forex trader get in a Forex Study course? Definitely yes, not all beginner traders go to this process, they just get themselves familiar and just jump right in. In the end, the pain and the tears. You have probably heard that 5% of the Forex Traders get profits consistently.

The "Trading Non-Farm Payroll Profitably" 100% Mechancial System

The FX market is many times dominated by important economic reports release. These government issued reports can sometimes cause 150-200 pip (USD $1,500-USD $2,000) moves in certain currency pairs within a few hours. The biggest of all these reports is called Non Farm Payroll and is issued by the US government. The moves it creates in the market are IMPRESIVE!

International Trade

the trade balance portrays the net difference (over a period of time) between the imports and exports of a nation. A trade deficit can be an economic disaster for a government and a currency. A deficit may appear when a country is importing more than it is exporting, meaning that more money is leaving and less is coming in. In some ways, however, a trade deficit in and of itself is not necessarily a bad thing. A deficit is only negative if the deficit is greater than market expectations and therefore will trigger a negative price movement.

Forex Signals

Dear Forex Trader,My name is Jordan and I am a full-time Forex trader. Not some self professed independently wealthy 'banker' who wants to show you a secret system, not some market wizard or internet marketer who doesn't know a thing about trading the markets, just a professional trader who makes a good living trading Forex.The Forex Signals I provide are from JCL's Signal System and are to help you learn how to trade so that you can earn extra income and become a full time trader yourself. This is why I do not provide some black box system signals but teach you how to trade yourself while providing you with the system signals to make it easier for new traders to begin making money trading Forex from the start

Forex Currency Trading Useful Information

When you trade in the forex exchange, you’re engaged with foreign stocks, currency and similar varieties of products. The money of one country can be likened to another currency from a different nation to figure the monetary value. The value of that foreign currency is taken into review on every last trade made in the forex stock markets. Many international markets will have control over the altered monetary value their nation brings affecting the money, or currency. People who’re investing their money into the FX market exchange includes many large business organizations, banks What are the things that make the forex exchange so different from the US stock market? A trade on the forex market is one that involves at least two countries, and it can take place worldwide. The two countries must be 1, the investor’s country and 2, the place receiving the investment. Most all of the transactions that take place in the forex markets will be qualified through an experienced broker such as a bank. What are the ingredients of trading in the forex market? The overseas market is comprised of a mixture of financial exchanges amongst nations. Investors in the forex stock market are trading in large volumes and huge amounts of money. Those deeply imbedded in the forex exchange are likely to have companies who are cash businesses or are in businesses where assets are bought and sold quickly. The US market is massive but it is correct to imagine the forex stock market as even more immense than any given single stock market. Forex traders daily twenty-four hours a day and sometimes trading is completed on the weekend, but not all weekends. You might be surprised at the great number of investors that are involved in forex trading. In 2004 alone, as much as two trillion dollars was the median forex exchange trading volume. This number is massive in trade volume with regards to the amount of daily transactions to take place. Think about how much a trillion dollars really is then double that, and this amount is the average that is traded on any given day on the forex exchange! The forex market is not something new, as it has been used for over thirty years but with the introduction of computers, and the global web, the forex exchange is growing exponentially as growing numbers of investors become aware of the availability of this trading market. Forex only accounts for about ten percent of the total trades between countries but as the popularity in this market continues to grow so could that number.foreign administrations and finance businesses.

Online Currency Trading requires Patience

When the going gets tough, the tough get going. This adage often brings back the memories of my past days when I was trading initially in the currency exchange market. Indeed, there's nothing more hurtful than losing your invested money in the FX market. But, online currency trading is like life where you're got to learn from your wrong moves and keep moving on.

Forex dairy

EUR/USD 1.2087 Long, Target 1.2205, Stop 1.1970, 1.2095 61.8% Fibo retracement violated, if cannot make consolidate, will go to 38.2% retracement at 1.2027.

GBP is strong across the board, GBP/USD target 1.7805, EUR/GBP target 0.6770, if EUR/JPY target to 1.3885, that translates to GBP/JPY at around 205, a upside of 400 pips.

The nature of Elliot wave theory

For want of any authoritative means to determine the price of a underlying instrument, the market participants have to grapple with the issue of pricing it based on some tangibles, however unconvincing these tangibles may appear. A theory, especially a more or less established theory, tend to gain followers, reinforcing itself more the more people follow it. In a financial market, the market itself is the only reality, everything else, theories, rumors, news, statistics, interest rates are facts that generate perceptions in the participants only. By themselves, those news don't do anything, but the interpretation of them by participants make the wheel rotate. A rumor might do the trick as well as a fact. A bad theory might give the same effect as a good one

Forex Trading: Good Opportunity Or Scam?

Until recently, the forex market or foregn currency exchange market wasn't for the average trader or individual speculator. With the large minimum transaction sizes and often-stringent financial requirements, banks, hedge funds, major currency dealers and the occasional high net-worth individual speculator were the principal participants. These large traders were able to take advantage of the many benefits offered by the forex market vs. other markets, including the fantastic liquidity and strong trending nature of the world's primary currency exchange rates.
Fortunately, thanks to new legislation written in the late 1990?s, forex brokerages have opened up to the general public and offer trading opportunities for anyone who has an interest in trading currencies for profit. In fact, many brokers allow traders to open and trade currency with as little as $250 dollars in an account.
Regrettably, all of these new currency trading opportunities have created a lot of hype around the forex. Some of this hype includes magic trading formulas, ?easy? indicators and expert trend predictors. There are now countless currency brokerages enticing potential traders to open accounts and start trading today. Many people have started to get the feeling that trading currency is more of a scam then anything else. We strongly disagree with this notion and are certain that the forex market has much to offer investors. However, before your take you paycheck and head down to the nearest brokerage to open your forex account, may we make some important suggestions before you enter the currency market?
First, there are thousands of websites with information, terminology, trading strategies and more. We recommend researching several of them as you begin to explore the basics of what the forex is. Brokers often will offer information about the forex, but realize that they are also trying to get you to open an account. Aside from brokerage sites, there are several informational sites and a few forex education companies on the market that offer good information without the pressure of signing up for a ?live? trading account.
Second, read some books. Most of the professional forex traders operate using a combination of Japanese candlestick charts and other complex indicators to determine the direction of a particular currency pair. Find books about technical analysis trading, candlestick charts and other methodological indicators. Remember that when you are buying currency it is like buying a stock in a nation or country. Learn about different countries economic announcements, interest reports, and job indicators. These are highly relevant factors that help indicate a currencies direction.
At this point, it may be time for you to open a demo account with the broker of your choice. This will help you get familiar with trading platforms and basic charts. Practice making some ?demo trades?. Even after doing some basic homework you will find that you fell like you areflying by the seat of your pants? during your trades. At this humbling point in your new forex trading career you realize its time to take a forex training course.
There are many forex training courses on the market today. They come in many forms including seminars, home study courses, interactive online courses, and class room education. Fxcenter.com, one such forex training course has found that the best education courses use all of these methods in their training regime. They feel that a program should include a minimum of 20 hours of home study to teach the basic principles of forex trading. Next a student would need to observe the market in action, without necessarily making trades. To do this, an interactive online class is necessary to help you tie in all the information and begin to apply it to live market conditions. Onsite classes then further reiterate the fundamentals of trading forex and help the student discover a trading strategy that fits his or her personality, financial status and risk tolerance. Finally, working with a highly skilled forex mentor, again during live market sessions, is critical to help the student understand the psychological part of trading. These mentors would also help students create an advanced trading system and analyze the market minute by minute.
Most successful traders have spent years developing good trading habits and learning the hard way how to take advantage of currency volatility. We strongly recommend you follow these steps as you begin to investigate investment opportunities in the forex market.

For more information on forex training and how you can get ahead into todays market please visit our site. Get some forex education and take your skills to the next level!

The popularity of online Forex trading has grown significantly over recent years and has drawn a following of investors from all walks of life, from

The popularity of online Forex trading has grown significantly over recent years and has drawn a following of investors from all walks of life, from all over the globe. This system of trading has made it incredibly easy for neophyte investors to become involved. The online foreign exchange trading system is available worldwide, 24 hours a day, which enables an unrestricted playing field. With that in mind, there are several tips that can significantly increase the chances of success and financial goals.
Risk taking is the first area to approach when dealing with the online Forex trading market due to the fact that most greenhorns actually create an environment that guarantees them failure. This happens most often when the trader puts a strangle hold on their trading hence restricting the risks to a point that it is virtually impossible to create any gains. If there is anything to be learned while playing the online foreign exchange trading markets, it is that playing in any markets is largely based upon taking deliberate and calculated risks.
Along with putting enough leverage on the risk taking is the point in case that becoming a wealthy individual practically overnight isn't going to happen. Accept the risks that are associated with online Forex trading and keeping pragmatic financial goals to accomplish through the process are logical steps that make smart business sense. A step in fact, that will actually attribute to the various successes gained in the online foreign exchange trading market. Actions that are not well planned and executed by the seat of the pants typically end up wiping out the investor so make selective trades with an accepted percentage of risk.
The common scenario is that the online Forex trading investor has the money in a margin account and has turned a bit of a profit. Now that the investor is seeing some financial gains within the Forex market and inevitably takes the profits back out. This is the most common downfall of beginners in the online Forex market because they don't realize that taking out profits too early causes them to lose when all is said and done. Investors in the online foreign exchange trading systems that are successful are largely successful because they accept and understand normal market fluctuations. In order to secure longer-term financial gains, it is inherently necessary to take short-term hits against equity.
There are several intrinsic worth characteristics that a successful online Forex trader must demonstrate but among the most important are patience and discipline. A disciplined Forex trader is patient and allows the market to take its natural course while observing trends and patterns that are emerging in the currency pair that is invested. Momma had more than one good saying and along with money can't buy love is; you can't hurry the financial markets of any kind!

Troy Degarnham is the author and webmaster of http://www.forex-trading-brokers.info, an informative website about Foreign Exchange Trading. Extensive help and tips on systems, software, forex trading signals, online forex trading, brokers, courses, and other secrets to help you gain financial freedom.

forex resorces

The live forex charts can be used to track ten currency pairs in real time and click on forex rates for a pop-up window of ten currency pairs with live rates for the EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, NZD/USD, EUR/JPY, EUR/GBP and EUR/CHF, including the daily highs and lows from 17:00 EST. For a selection of free ebooks, trial offers, calculators and tutorials, visit free downloads. For a current snapshot of the foreign exchange market, use the market monitor to display time zones for several key markets, as well as live forex rates, a sentiment indicator and an economic calendar in a detachable window. Use the online money management calculator to calculate the correct position size for your trade based on your risk profile. Browse the selection of forex books on offer in forex books which includes special sections on technical analysis and general trading. There is a great number of forex related resources to be found in the categorised forex directory to help you find a particular niche or service.

Providing Forex Trading Education

Several Americans and many other various nationalities are very curious and want to find out how to get proper Forex trading education. The wealth that can be achieved by trading on the Forex market can be very substantial as it is the largest trading market around the world. It rough daily turnover is 2 trillion dollars. Anyone who is seeking Forex trading training has the chance of getting a slice of that wealth. Aside from the huge possibilities for its traders, the Forex market provides a huge list of benefits one of which is 24 hour financial transactions, its the most liquidated market in the world and provides real time efficient trading executions.
Before you decide to dive into trading you need to get a Forex trading education. Just like several other investments, you should never just dive into trading on the foreign exchange market without know what your getting yourself into. With the correct foreign trading education, you will be on the correct track to learn how to make a large sum of profit by trading on the Forex market
So, what are the lessons that you will discover when you take place in a Forex trading education? You will comprehend the actual nature of Forex trading training. As you very likely knew initially, Forex stands for foreign exchange or the synchronous exchange of a pair of foreign currency to a different pair of foreign currency. By understanding the nature of trading foreign currencies at the correct time, you are certain of gaining profit, although don't expect it to be as huge as the profits earned by professional and experienced Forex traders. To be successful getting a good Forex trading education will teach you how to do it.
The starting part of your Forex trading education will center on studying the Forex market background. Recognize that the Forex market has volatile market conditions that are constantly changing, most particularly the foreign exchange rate. Through getting a Forex trading education, you will know how to examine closely such market changes and make suitable decisions.
After you study and learn more about the various aspects of the Forex market, the next part of your Forex trading education is to manage the various risks involved. It is wise to learn about the risks that are involved when trading on the foreign exchange market. You need not to over invest or be overconfident at the thrill of opportunity of making huge money. Also on this part, you will learn how you will cut potential losses or getting out of a deal before your losses reach and even exceed your limits. It is natural that you will lose money when you start Forex trading. It is the most crucial part of your Forex trading education because it will determine whether you will end up making your way to riches or to a black hole.
Once you learn how to manage the risks, you will then need to know more about manage your Forex trading account. You will be involved in practicing Forex transactions using a demo account and virtual money. Doing so will allow you to get to grips of the best ways to use your trading account before getting into real trading transactions. With a Forex demo account, there is no risk involved yet the nature is just as realistic as the real Forex trade. Moreover, your Forex trading education will also let you know whether you are ready to do the real thing or you need more practice. Only then will you be able to start and manage a real Forex trading account.
There are several ways to acquire a Forex trading education. One of the best resources to get a Forex trading education is using the Internet. There are various free sites that allow you to open free Forex demo accounts to practice using your Forex system and trading strategies. There are also free e-books where you can read the necessary information about the Forex market and its attributes. Free webinars (web-based seminars) conducted in real time are available at random schedules. You may also seek some valuable advice from different active Forex traders. These individuals can provide you some insights and important advice regarding the subject of Forex trading.
Now that you know more about Forex trading education courses, it is time for you to get some good Forex trading education courses. Take your time and do not rush things. With an average daily turnover of $2 trillion U.S. dollars, there is just a lot of money involved in Forex trading. Prepare yourself to grab a slice of that wealth as well to the risks involved

Intervention Update

Japan's Eco Min Takenaka says they must take action on FX if rates move away from fundamentals and that he wants to see BoJ take more easing steps. He also states that he wants BoJ to consider fx moves when deciding monetary policy and adds that Japanese stocks are undervalued.

Julian Jessop, chief European economist at Standard Chartered Bank.

The dollar is under pressure from everything from economic problems to asset reallocation away from the U.S. and corporate accounting problems. It's difficult to see any positive factor for the dollar at the moment. The root of the problem is the U.S. current account deficit. If the U.S. doesn't have to attract an enormous amount of foreign capital, people wouldn't have to worry about domestic problems. One solution to this is a weaker dollar."

Tom Fitzpatrick, senior technical analyst at Citibank in New York.

"Parity is a psychological, not a technical level...and whether we pause around parity or not, we are likely to see significant further dollar losses...Our initial target is $1.03 to $1.0450. If that level is taken out, it actually casts a question mark against the whole of the dollar's rally of the last seven years, and could open up a full-blown bear market for the dollar."

Sample Resume Objective

When creating a resume, one of the most important aspects is the resume objective. Employers get hundreds of resumes whenever they place an add for a job and unless you put down your employment objective in your resume, the document that you worked so hard to produce may end up by the wayside.



There are many different sample resume objective forms that you can use,. The resume objective is simply what you wish to accomplish by sending the company your resume. In most cases, the objective is to get a certain job. This should be clearly stated on your resume.



A sample resume objective for someone who wishes to become a paralegal, for example, can include a heading stating Employment Objective and under this heading should be the type of paralegal position which you are seeking. If you are seeking to be a commercial real estate paralegal, for example, this should be stated at this point.



Another sample resume objective would be for someone who is seeking a position as receptionist. Again, the Employment Objective would be listed as receptionist.



Suppose, however, that the person who seeks to be a receptionist is also going to school for a paralegal degree. He or she may be qualified now to be a receptionist, but upon completion of their studies, will want to seek employment as a paralegal. If this person is applying for a job at a law office, in addition to the sample resume objective there should also be a career objective stated. This could read something like this:



Although I am seeking the position of receptionist, I am currently enrolled in xxx college and expect to complete my paralegal studies in xxx. My career objective is to become a paralegal.



This will let the prospective employer know that in addition to getting a receptionist, he or she may also be able to get a qualified paralegal who will have knowledge of the law firm and can remain in the employ of the law firm for years to come. This may make the candidate a bit more desirable as it costs employers thousands of dollars to train new employees.



A good sample resume objective can be found within many different software programs that assist someone in creating a resume. The wording is all there, you just need to fill in the proper information. It is essential, however, that you put down an objective in your resume. It not only denotes professionalism, but lessens the confusion on the behalf of the employer.



Employment objectives and career objectives are two different headings on most resumes. An employment objective refers to the job for which one is immediately applying., A person just out of law school may apply for a job as an associate in a law firm. This is an employment objective. A career objective for the same person, however, would probably be partner in the law firm.



Many people are hesitant about putting down career objectives on their resumes. It makes them feel foolish as if they are shooting for the stars. Nothing can be further from the truth. Most employees want to hire people with some sort of ambition. It is not foolish to say that you want to be partner of a law firm when you are an attorney, it is more foolish to say that you are content with staying an associate and never moving up the ladder.



It is important, therefore, to put employment objectives as well as career objectives, where appropriate, on your resume. If you are going to school to become a nurse and have applied for a job as a secretary, it is not necessary to put your nursing career objective on your resume as this may cost you the job. A career objective should only be included on a resume if it adds to the employment opportunity which you are seeking.



To find a good sample resume objective, take a look at some of the resume building tools online or in some resume building software. All of the information that you need to find a good sample resume objective can be right at your fingertips. Remember to be honest in what you are hoping to achieve. You do not have to get too wordy, either. A good sample resume objective can be as simple as saying that you want to be a receptionist.

Welome to Stock Market Blog

Hello Blogger World! This is Chris Chandler! I am getting started into looking into investing some money in the stock market and wanted to fill you in on things that I am looking at. Maybe this will be a help to someone on the net!

Investing in the Stock Market

1. All stock purchases should be commission-free.
2. All stocks purchased should be from a company that has a history of raising their dividends every year.
3. The company should not only have a history of raising their dividend every year, but should also show price appreciation in the market place, on a year to year basis.
4. All dividends from the companies should be rolled-over into more shares of the company, until retirement. This should be done by the company, for the shareholder, commission- free.
5. The companies purchased should have staggered dividend pay-out dates so the income from 12 companies will provide the shareholder cash dividend income every week of the year. No more than 12 companies should be owned, otherwise, you’re probably spreading your money too thin.
6. A systematic approach of dollar-cost averaging should be done on a quarterly basis. A savings plan should be adopted to add to your holdings every quarter, along with the dividend reinvestment.
7. Stocks purchased should pay a dividend yield of at least 2.0% or better. A low 2.0% dividend yield isn't necessarily bad because it means the company in question is using most of their profits too expand. In other words, it's a growth stock with business, profits and earnings growing. A growth stock makes up for the lower dividend yield because their stock prices will more than likely rise faster.
8. The company should have been in business at least eight years, showing dividend increases each year. This will eliminate the risk involved in putting money into a risky new start up company (the kind that is going to change the world - they are just too hard to find).
9. The company must have a stock dividend reinvestment plan (DRIP). If the dividend paid by the company is $2.63 for the quarter, all of that $2.63 will purchase a further percentage of shares (partial shares) and this should be done automatically for you by the company or their Transfer Agent.
10. The companies you purchase should be purchased with the intent of realizing ever-increasing cash dividends for you and your family for the rest of your lives.

Everything you would need to know to start an investment program which emphasizes the considerations above is explained to you in my book 'The Stockopoly Plan', soon to be published by American-Book Publishing.
Below is an excerpt from the book I would like to share with you!
Have you ever noticed how some words in the English language are so perfectly named for what they describe? And how some words seem to be, I guess you could say backwards? For instance, the word sunflower! How wonderfully aptly named is the sunflower, that beautiful yellow flower that follows the sun from sunrise to sunset. And then there are those words in the English language where there meaning appears to be backward, so to speak - like parkway and driveway. When my car is parked at home, I would think it would be parked on, well, a parkway - and when I’m on the road driving somewhere, I would think I’d be driving on a - a driveway.
In the stock market world, I think the word analyst is a perfect word in the English language and stockbroker sounds right to me, too. And this leads me to what I call the ‘brainwashing mantras’ of Wall Street.

The brainwashing mantras of Wall Street may take the form of a number, such as a stock rating of 1, 2, 3 etc. Or the mantras may be a star, 1 star, 2 stars etc. The mantras may be a word or a group of words- attractive, unattractive, neutral, market perform, market out-perform, market under-perform, market under-weight, market equal weight, market over-weight, sector perform, strong buy, buy, sell, strong sell.

These mantras are so ingrained in Wall Street and investor’s minds that they have created multi-billion dollar industries. There are other types of mantras, such as RSI (relative strength index - a trading volume indicator), Bollinger Bands (named after its creator John Bollinger (he use to be a regular on CNBC) and the bands deal with the channels a stock trades in, in relation to its ‘moving average’- another mantra), Stochastics (used to tell if a stock is 75 % overbought - too many people have been buying) or 25% oversold (too many people have been selling), Momentum, MACD (Moving Average Convergence/Divergence – price of the stock, up or down, in relation to its moving average), 50 day, 200 day moving averages, triple bottoms and tops, pendants, flags, bear and bull markets, head and shoulders formations, double bottoms, P/E ratios etc, etc, etc. All these mantras serve a purpose (and if you’re inclined to trade in the market they are, I admit, useful tools) - they create commissions. And in my opinion, have no meaning what-so-ever for the long-term, dollar-cost averaging, buying investor of company’s shares, free of commission charges, whose companies raise their dividend every year, with the investor’s idea or purpose being to provide an 85% tax-free income, through ever-increasing dividends for the rest of their lives, no matter what the price of the stock at any given time in the market place may be. (Whew! What a sentence!)

For more excerpts from the book ‘The Stockopoly Plan’ visit http://www.thestockopolyplan.comAbout The Author
Charles M. O'Melia - an individual investor with almost 40 years of experience and passion for the stock market. Author of the book 'The Stockopoly Plan', soon to be released by American-Book Publishing.

How to Maximize Your Mutual Fund Investments

Maximixe Your Mutual Fund Returns: Morningstar Mutual Fund Investing Workbook, Level 3 (Fearless Investing Series: Mutual Funds Workbook 1 2 3) (Paperback)

For those ready to move on to a higher level of mutual fund investing, The Morningstar Investment Coach: Maximizing Returns and Staying on Track is the ideal resource. Filled with in-depth insight and expert advice-including how to bear-proof your portfolio, calculate your personal rate of return, and rebalance your portfolio-this guide will add advanced techniques to the sophisticated investor's mutual fund investing toolbox.

Morningstar® Fearless Investing Series helps you overcome your fear of making investment mistakes. Workbooks in the series help you build skills progressively at your own pace. Look for other titles in the fearless series covering funds, stocks, bonds, and portfolios.
Morningstar® has been helping investors make better investing decisions for more than 20 years with independent information and analysis. Morningstar people are passionate about helping you invest successfully.

complete information of online forex marketing

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.[1] Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks, and are subject to forex scams.
Contents



Market size and liquidity

The foreign exchange market is unique because of

* its trading volume,
* the extreme liquidity of the market,
* the large number of, and variety of, traders in the market,
* its geographical dispersion,
* its long trading hours: 24 hours a day (except on weekends),
* the variety of factors that affect exchange rates.

According to the BIS,[1] average daily turnover in traditional foreign exchange markets is estimated at $1,880 billion. Daily averages in April for different years, in billions of US dollars, are presented on the chart below:

This $1.88 trillion in global foreign exchange market "traditional" turnover was broken down as follows:

* $621 billion in spot transactions
* $208 billion in outright forwards
* $944 billion in forex swaps
* $107 billion estimated gaps in reporting

In addition to "traditional" turnover, $1.26 trillion was traded in derivatives.

Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

Average daily global turnover in traditional foreign exchange market transactions totaled $2.7 trillion in April 2006 according to IFSL estimates based on semi-annual London, New York, Tokyo and Singapore Foreign Exchange Committee data. Overall turnover, including non-traditional foreign exchange derivatives and products traded on exchanges, averaged around $2.9 trillion a day. This was more than ten times the size of the combined daily turnover on all the world’s equity markets. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the foreign exchange market.

Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 32.4% in April 2006. RPP

The ten most active traders account for almost 73% of trading volume, according to The Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203. Minimum trading size for most deals is usually $100,000.

These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100 / 1.2300 for transfers, or say 1.2000 / 1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e. 0.0003). Competition has greatly increased with pip spreads shrinking on the major pairs to as little as 1 to 2 pips.

Market participants












Top 10 Currency Traders % of overall volume, May 2006 Source: Euromoney FX survey[3] Rank Name % of volume
1 Deutsche Bank 19.26
2 UBS AG 11.86
3 Citigroup 10.39
4 Barclays Capital 6.61
5 Royal Bank of Scotland 6.43
6 Goldman Sachs 5.25
7 HSBC 5.04
8 Bank of America 3.97
9 JPMorgan Chase 3.89
10 Merrill Lynch 3.68


Unlike a stock market, where all participants have access to the same prices, the forex market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. As you descend the levels of access, the difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips only for major currencies like the Euro). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the forex market are determined by the size of the “line” (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail forex market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the forex market to align currencies to their economic needs.

Banks

The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account.

Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems, such as EBS (now owned by ICAP), Reuters Dealing 3000 Matching (D2), the Chicago Mercantile Exchange, FXMarketSpace, Bloomberg, and TradeBook(R). The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

Commercial companies

An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

Central banks

National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high — that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.

The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank. Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.

Investment management firms

Investment management firms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager with an international equity portfolio will need to buy and sell foreign currencies in the spot market in order to pay for purchases of foreign equities. Since the forex transactions are secondary to the actual investment decision, they are not seen as speculative or aimed at profit-maximization.

Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades.

Hedge funds

Hedge funds, such as George Soros's Quantum fund have gained a reputation for aggressive currency speculation since 1990. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favor.

Retail forex brokers

Retail forex brokers or market makers handle a minute fraction of the total volume of the foreign exchange market. According to CNN, one retail broker estimates retail volume at $25–50 billion daily, which is about 2% of the whole market and it has been reported by the CFTC website that unexperienced investors may become targets of forex scams.

Trading characteristics
Most traded currencies
Currency distribution of reported FX market turnover Rank Currency ISO 4217
code Symbol % daily share
(April 2004)
1 United States dollar USD $ 88.7%
2 Eurozone euro EUR € 37.2%
3 Japanese yen JPY ¥ 20.3%
4 British pound sterling GBP £ 16.9%
5 Swiss franc CHF Fr 6.1%
6 Australian dollar AUD $ 5.5%
7 Canadian dollar CAD $ 4.2%
8 Swedish krona SEK kr 2.3%
9 Hong Kong dollar HKD $ 1.9%
10 Norwegian krone NOK kr 1.4%
Other 15.5%
Total 200%

There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded. This implies that there is not a single dollar rate but rather a number of different rates (prices), depending on what bank or market maker is trading. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. A joint venture of the Chicago Mercantile Exchange and Reuters, called FXMarketSpace opened in 2007 and aspires to the role of a central market clearing mechanism.

The main trading centers are in London, New York, Tokyo, and Singapore, but banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.

There is little or no 'inside information' in the foreign exchange markets. Exchange rate fluctuations are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in GDP growth, inflation, interest rates, budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow.

Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX is expressed. For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.3045 dollar. Out of convention, the first currency in the pair, the base currency, was the stronger currency at the creation of the pair. The second currency, counter currency, was the weaker currency at the creation of the pair.

The factors affecting XXX will affect both XXX/YYY and XXX/ZZZ. This causes positive currency correlation between XXX/YYY and XXX/ZZZ.

On the spot market, according to the BIS study, the most heavily traded products were:

* EUR/USD: 28 %
* USD/JPY: 18 %
* GBP/USD (also called sterling or cable): 14 %

and the US currency was involved in 88.7% of transactions, followed by the euro (37.2%), the yen (20.3%), and the sterling (16.9%) (see table). Note that volume percentages should add up to 200%: 100% for all the sellers and 100% for all the buyers.

Although trading in the euro has grown considerably since the currency's creation in January 1999, the foreign exchange market is thus far still largely dollar-centered. For instance, trading the euro versus a non-European currency ZZZ will usually involve two trades: EUR/USD and USD/ZZZ. The exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market.

Factors affecting currency trading



Although exchange rates are affected by many factors, in the end, currency prices are a result of supply and demand forces. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.

Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology

Economic factors

These include economic policy, disseminated by government agencies and central banks, economic conditions, generally revealed through economic reports, and other economic indicators.

Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates).

Economic conditions include:

Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits, and positively to narrowing budget deficits. The impact is reflected in the value of a country's currency.

Balance of trade levels and trends: The trade flow between countries illustrates the demand for goods and services, which in turn indicates demand for a country's currency to conduct trade. Surpluses and deficits in trade of goods and services reflect the competitiveness of a nation's economy. For example, trade deficits may have a negative impact on a nation's currency.

Inflation levels and trends: Typically, a currency will lose value if there is a high level of inflation in the country or if inflation levels are perceived to be rising. This is because inflation erodes purchasing power, thus demand, for that particular currency.

Economic growth and health: Reports such as gross domestic product (GDP), employment levels, retail sales, capacity utilization and others, detail the levels of a country's economic growth and health. Generally, the more healthy and robust a country's economy, the better its currency will perform, and the more demand for it there will be.

Political conditions

Internal, regional, and international political conditions and events can have a profound effect on currency markets.

For instance, political upheaval and instability can have a negative impact on a nation's economy. The rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency.

Market psychology

Market psychology and trader perceptions influence the foreign exchange market in a variety of ways:

Flights to quality: Unsettling international events can lead to a "flight to quality," with investors seeking a "safe haven". There will be a greater demand, thus a higher price, for currencies perceived as stronger over their relatively weaker counterparts.

Long-term trends: Currency markets often move in visible long-term trends. Although currencies do not have an annual growing season like physical commodities, business cycles do make themselves felt. Cycle analysis looks at longer-term price trends that may rise from economic or political trends. [4]

"Buy the rumor, sell the fact:" This market truism can apply to many currency situations. It is the tendency for the price of a currency to reflect the impact of a particular action before it occurs and, when the anticipated event comes to pass, react in exactly the opposite direction. This may also be referred to as a market being "oversold" or "overbought".[5] To buy the rumor or sell the fact can also be an example of the cognitive bias known as anchoring, when investors focus too much on the relevance of outside events to currency prices.

Economic numbers: While economic numbers can certainly reflect economic policy, some reports and numbers take on a talisman-like effect: the number itself becomes important to market psychology and may have an immediate impact on short-term market moves. "What to watch" can change over time. In recent years, for example, money supply, employment, trade balance figures and inflation numbers have all taken turns in the spotlight.

Technical trading considerations: As in other markets, the accumulated price movements in a currency pair such as EUR/USD can form apparent patterns that traders may attempt to use. Many traders study price charts in order to identify such patterns.

Algorithmic trading in forex

Electronic trading is growing in the FX market, and algorithmic trading is becoming much more common. There is much confusion about the technique. According to financial consultancy Celent estimates, by 2008 up to 25% of all trades by volume will be executed using algorithm, up from about 18% in 2005.

Financial instruments

There are several types of financial instruments commonly used.

Spot: A spot transaction is a two-day delivery transaction, as opposed to the futures contracts, which are usually three months. This trade represents a “direct
exchange” between two currencies, has the shortest time frame, involves cash rather than a contract; and interest is not included in the agreed-upon transaction. The data for this study come from the spot market. Spot has the largest share by volume in FX transactions among all instruments.

Forward transaction: One way to deal with the Forex risk is to engage in a forward transaction. In this transaction, money does not actually change hands until some agreed upon future date. A buyer and seller agree on an exchange rate for any date in the future, and the transaction occurs on that date, regardless of what the market rates are then. The duration of the trade can be a few days, months or years.

Futures: Foreign currency futures are forward transactions with standard contract sizes and maturity dates — for example, 500,000 British pounds for next November at an agreed rate. Futures are standardized and are usually traded on an exchange created for this purpose. The average contract length is roughly 3 months. Futures contracts are usually inclusive of any interest amounts.

Swap: The most common type of forward transaction is the currency swap. In a swap, two parties exchange currencies for a certain length of time and agree to reverse the transaction at a later date. These are not standardized contracts and are not traded through an exchange.

Options: A foreign exchange option (commonly shortened to just FX option) is a derivative where the owner has the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date. The FX options market is the deepest, largest and most liquid market for options of any kind in the world.

Speculation

Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, many economists (e.g. Milton Friedman) have argued that speculators perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do. Other economists (e.g. Joseph Stiglitz) however, may consider this argument to be based more on politics and a free market philosophy than on economics.

Large hedge funds and other well capitalized "position traders" are the main professional speculators.

Currency speculation is considered a highly suspect activity in many countries. While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not, according to this view; it is simply gambling, that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days to 150% per annum, and later to devalue the krona. Former Malaysian Prime Minister Mahathir Mohamad is one well known proponent of this view. He blamed the devaluation of the Malaysian ringgit in 1997 on George Soros and other speculators.[7]

Gregory Millman reports on an opposing view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.

In this view, countries may develop unsustainable financial bubbles or otherwise mishandle their national economies, and forex speculators made the inevitable collapse happen sooner. A relatively quick collapse might even be preferable to continued economic mishandling. Mahathir Mohamad and other critics of speculation are viewed as trying to deflect the blame from themselves for having caused the unsustainable economic conditions.