forex

I bet you are well aware of the existent of FOREX trading nowadays. FOREX market exists wherever one currency is traded for another. FOREX, or Foreign Exchange Market, is generally works as an international currency exchange market. Investors and speculators are allowed to trade currencies from all around the world thru FOREX trading. Major currencies traded nowadays are United States dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars. FOREX is a very unique type of trading where traders are buying and selling ‘money’ in the same time. The trades are done in pairs, such as Euro/JPY, ... Read Full Story

CARRY TRADE AS A TOOL OF PROFIT MAKING Introduction First, let’s take a look at the carry trade. In short, the carry trade is used when an investor or speculator is attempting to capture the price appreciation or depreciation in a currency while also profiting on the interest differential. Using this strategy, a trader is essentially selling a currency that is offering a relatively low interest rate while buying a currency that is offering a higher interest rate. This way, the trader is able to profit from the differential of interest rates. With the introduction of the carry trade , ... Read Full Story

India Saturday 21 November 2009: A year after the approval of a huge $7.6 billion bailout package by the International Monetary Fund, Pakistan has not been able to increase its foreign exchange reserves to comfortable levels and they are still vulnerable to external shocks like a sharp rise in crude oil prices. Out of total foreign exchange reserves of $14.12 billion claimed by the State Bank, the central bank actually has only $10 billion at its disposal while the remaining amount is depositors’ money kept in commercial banks. With an import bill of around $35 billion per annum, these reserves would hardly cover cost ... Read Full Story

Rumors of Ukraine debt default hits EUR at New York open ECB t ightens rules on acceptable asset-backed securities collateral as of March 2010 ECB’s Constancio: Inflation under control ; not signaling market that removing non-conventional measures will lead to changes in conventional policy Fitch: Unaware of any default which would impact Ukraine’s sovereign debt ECB’s Bini Smaghi: ECB will exit will be gradual Canada’s Flaherty: Recovery cannot survive without stimulus US equities recover intraday losses, end down 0.3% EUR/USD fell to graze the 1.4800 level after talk that Ukraine had defaulted on its sovereign debt swept the markets. With European banks heavily exposed ... Read Full Story

FOREX trading refers to an international, 24/7, over the counter, exchange market where currencies of different nations are bought and sold. Trading is always done in pairs assuming the price of currency bought to go up and that sold to fall down. It is the largest liquid financial market making it impossible for any single investor to influence the prices of currencies. There are two kinds of FOREX investing strategies: TECHNICAL ANALYSIS FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS: Technical analysis is mostly undertaken by small and medium size investors. A technical analysis considers factors that are actually affecting the market rather than factors that can affect ... Read Full Story