Anyone intrested in being a partner in my Forex predictions venture?
Posted by Ryanita
on
Wednesday, November 20, 2013
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forex usd/jpy
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How do i obtain free daily gold prices in OHLC format , to be used with technical analysis software?
Posted by Ryanita
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forex data feed
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Mahmoud
Does anybody knows a website that provide free historical daily gold prices (London or NY), in format of Date, Open Price, High,Low,Close?
I checked Kitco but they don't publish that detailed data.
Answer
you could try http://www.netdania.com . it is a forex data feed but if im not mistaken, they also have Gold and Silver price. You must sign up (its totaly free) and install Java in your computer in order to use the chart. once youve singed up - Log in, click on "chart station" on the left menu and click "try demo".
You can also try http://www.barchart.com but this website is not interactive and the charts are only updated at the end of the day.
you could try http://www.netdania.com . it is a forex data feed but if im not mistaken, they also have Gold and Silver price. You must sign up (its totaly free) and install Java in your computer in order to use the chart. once youve singed up - Log in, click on "chart station" on the left menu and click "try demo".
You can also try http://www.barchart.com but this website is not interactive and the charts are only updated at the end of the day.
Where can I get Commodities Futures data feeds/real time & history spot charts to post on my blog?
alex
I've looked at Yahoo Finance and found stock charts but not Commodities...I need spot charts for energy, metals, grains and livestock that I can embed in my site.
Any suggestions?
Answer
you can see it if you sign up for one of the companies (fxdd,wwm,forex) but from the experience i can tell you that the feed is proprietary and no one will let you publish it to your site without a large fee.
you can see it if you sign up for one of the companies (fxdd,wwm,forex) but from the experience i can tell you that the feed is proprietary and no one will let you publish it to your site without a large fee.
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Hey Forex/Market Watcher-types: Why shouldn't I be shorting the yen?
Posted by Ryanita
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forex watchers
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comments (0)
Gokiburi
Then yen has been riding the carry trade meltdown for some time now. And for some reason, it's seen as a "safe" currency in times like this. But if you look at the fundamentals, Japan is in big trouble. So this crazy rise in the yen is starting to look like oil did in the first half of 2008: a speculative circle jerk without the fundamentals to back it up. Am I wrong? Is it too early yet to short? What do you think?
Answer
Bad move. Japan has a currency rate of 0.10%. If you short JPY against another currency and that country/region drops their interest rate to stimulate their economy in a recession, JPY will go up. The same will happen if Japan increases its rate.
Regarding the five majors:
USD: 0.25%
JPY: 0.10%
EUR: 2.00%
CHF: 0.50%
GBP: 1.50%
You definitely would be at risk with the cross rates. I wouldn't be surprised if the UK make a rate cut. The swiss franc is no good even with a 0.50% rate because it moves similar to the Euro and the European union has room for rate cuts.
Your only option for shortening the JPY is against the USD. With America wanting to improve employment and the housing market, I think the FOMC will leave the US rate at 0.25 for most of or all of 2009, but even then you've got to hope that Japan doesn't raise their interest rate.
I'm more knowledgeable about the stock market, but I have traded the FX spot market before. If I was trading it now, I would be shorting the Pound against the USD. UK is in a recession and have more room for interest rate cuts. The US and Japan doesn't.
Bad move. Japan has a currency rate of 0.10%. If you short JPY against another currency and that country/region drops their interest rate to stimulate their economy in a recession, JPY will go up. The same will happen if Japan increases its rate.
Regarding the five majors:
USD: 0.25%
JPY: 0.10%
EUR: 2.00%
CHF: 0.50%
GBP: 1.50%
You definitely would be at risk with the cross rates. I wouldn't be surprised if the UK make a rate cut. The swiss franc is no good even with a 0.50% rate because it moves similar to the Euro and the European union has room for rate cuts.
Your only option for shortening the JPY is against the USD. With America wanting to improve employment and the housing market, I think the FOMC will leave the US rate at 0.25 for most of or all of 2009, but even then you've got to hope that Japan doesn't raise their interest rate.
I'm more knowledgeable about the stock market, but I have traded the FX spot market before. If I was trading it now, I would be shorting the Pound against the USD. UK is in a recession and have more room for interest rate cuts. The US and Japan doesn't.
After spending my entire life studying the stock market..do I have it right..?
parrothead
ok..when I say my "entire life", what I mean is that I watched the 6:00 news tonight, which makes me an expert...in my house.
My expert prediction is that the market will come right back up in the next 2 market sessions, and the networks are trying to scare everyone and create the news.
I know my prediction isnt very complicated, which will make many market watchers be wary of it, but I bet I'm right.
The good news is that we will know by Monday evening.
The bad news is that the networks will start creating other news shortly there after.
re: maximus ....I'm no expert..just an idiot posting messages on yahoo...but when the market rebounds by monday, I will be a GENIUS! ;)
I dont know which market will rebound..I didnt know multiple markets needed rebounding...so I'll let you pick which one..then we'll both be GENIUS ;)
Answer
MSNBC, Bloomburg and the such like just create a load of hype... there is no way that any market professionals base their buy / sell decissions on the waffle on the goggle box.
you say "After spending my entire life studying the stock market..do I have it right..? "
well predicting the right market just once does not make you an expert... you say "the stock market" but what specific market? the dow, the nasdaq?...
"My expert prediction is that the market will come right back up in the next 2 market sessions, "
-- to what level? and for how long? .... eg. its easy to say "buy the market" but what market? and knowing *when* to sell is the other side of a successful trade. what are you basing your trading signal on? a flip of a coin, or genuine market knowledge and insight?
BTW - Each year, some financial magazine or news paper will get a monkey to throw darts at the stocks in the wall street journal... they usually perform quite well beleive it or not !!!
here is a way to prove you are an expert. By filming yourself and posting your (technical or fundimental) analysis on the net (youtube for example) you can allow people to see your prediction BEFORE the event... if you ARE a true market guru, then this will be apparent for all to see, and then, no doubt MSNBC will want you on their show :-)
i sometimes follow people who "predict" the FOREX markets on youtube.
All the best !
MSNBC, Bloomburg and the such like just create a load of hype... there is no way that any market professionals base their buy / sell decissions on the waffle on the goggle box.
you say "After spending my entire life studying the stock market..do I have it right..? "
well predicting the right market just once does not make you an expert... you say "the stock market" but what specific market? the dow, the nasdaq?...
"My expert prediction is that the market will come right back up in the next 2 market sessions, "
-- to what level? and for how long? .... eg. its easy to say "buy the market" but what market? and knowing *when* to sell is the other side of a successful trade. what are you basing your trading signal on? a flip of a coin, or genuine market knowledge and insight?
BTW - Each year, some financial magazine or news paper will get a monkey to throw darts at the stocks in the wall street journal... they usually perform quite well beleive it or not !!!
here is a way to prove you are an expert. By filming yourself and posting your (technical or fundimental) analysis on the net (youtube for example) you can allow people to see your prediction BEFORE the event... if you ARE a true market guru, then this will be apparent for all to see, and then, no doubt MSNBC will want you on their show :-)
i sometimes follow people who "predict" the FOREX markets on youtube.
All the best !
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If I am based in the US, but open a Forex account in the UK do I have to pay UK taxes?
Posted by Ryanita
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forex usa
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jrwax2
I'm based in the US and already have an US based FX account. Due to silly NFA rules and regulations I am thinking about opening a UK Forex account but am worried about potential taxes I would have to pay. Do I have to pay US and UK taxes if I have a UK based account and live in the US. I will not be spread betting.
Answer
If you are a USA citizen and open a private forex account in the UK you will only have to pay tax in the USA the same way you are paying will your USA account. The UK and USA and a double taxation agreement where no individual or company will pay the same type of tax in both countries. However if you open the account under a private company based in UK you will pay tax on the company profits in UK and tax on the dividends in the USA. You should consider both options depending on your tax bracket and the prevailing corporate taxes a private company may work out more cost effective.
If you are a USA citizen and open a private forex account in the UK you will only have to pay tax in the USA the same way you are paying will your USA account. The UK and USA and a double taxation agreement where no individual or company will pay the same type of tax in both countries. However if you open the account under a private company based in UK you will pay tax on the company profits in UK and tax on the dividends in the USA. You should consider both options depending on your tax bracket and the prevailing corporate taxes a private company may work out more cost effective.
What to consider when choosing a Forex broker?
Chris
I have $5000 and I'm interested in trading forex. What are the best brokers on the internet?
Also when they say minimum trade size micro unit (1k) does that mean I have to buy at least 1000 units which is for instance for a currency (1.05) $1005?
Also what is the lot size? Is that the range of profit/loss? Like instead of gaining $1 for 1 pip gain $10 if I change the lot size?
Thanks
Answer
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
Wow... you're on your way to an unbelievable surprise.
There are no good Forex Brokers... there are only Forex Brokers that are not as bad as most.
The first thing you want to consider is where is the corporate headquarters (what country?). Assuming you're from the USA... make sure they are licensed in the USA. Do not, for any reason, deal with a Forex Broker not licensed in your home country.
The next thing is to compare the "spread" charges. All these brokers advertise "no commissions".You'd actually be better off with a commission charge than the way they charge (by the spread). Make sure that the pairs that you'll be trading have comparatively smaller spreads than the competition.
No matter what you see on the web (especially from the brokers)... understand that it will take, on average 3-5 years to be profitable in any type of trading. Forex traders usually destroy their account in days, weeks or months.
The free "classes" taught by the brokers are a joke. They concentrate on the least important aspect of trading, which is Technical Analysis. The two fields of study, significantly more important are;
A. Psychology (yours and the markets).
B. Risk Management.
Read 6-12 books on trading and another 2-3 books on Forex Trading before you open a Forex brokerage account.
Good luck!
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What firm is the best broker for the forex trader?
Posted by Ryanita
on
Tuesday, November 19, 2013
, under
forex live rates
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comments (0)
cs
What program do you use to trade the Forex Market?
Answer
To find out how traders themselves rate their forex broker, go to elitetrader.com and check out the broker ratings thread. Here is the link: http://elitetrader.com/br/
The list of forex brokers are listed together with different brokers on the left hand column.
I used to trade with FXCM, but chose to move all the funds under my management to OANDA. You'll find out why later when you check the ratings.
OANDA's trading platform is java based. I find it easy to use, and you can enter your trades by clicking on that price level in the chart to enter either a limit order or a market order. All accounts are updated in real time, plus their spreads are one of the lowest in the industry today.
Another thing I like with OANDA is that you can open a trading account with any amount. There are no minimum lots to trade. You can open a live trading account with only $1 and trade that account as much as you want, with the same spreads that the big boys trade with. This works well with any risk management profile.
What I don't like about OANDA's trading platform is that I cannot enter notes on the chart. Unlike other trading platforms that I have used. But I guess it's a small trade-off; they claim their developers are working on an upgrade for that.
Hope this helps.
Jim http://jsforex.blogspot.com
To find out how traders themselves rate their forex broker, go to elitetrader.com and check out the broker ratings thread. Here is the link: http://elitetrader.com/br/
The list of forex brokers are listed together with different brokers on the left hand column.
I used to trade with FXCM, but chose to move all the funds under my management to OANDA. You'll find out why later when you check the ratings.
OANDA's trading platform is java based. I find it easy to use, and you can enter your trades by clicking on that price level in the chart to enter either a limit order or a market order. All accounts are updated in real time, plus their spreads are one of the lowest in the industry today.
Another thing I like with OANDA is that you can open a trading account with any amount. There are no minimum lots to trade. You can open a live trading account with only $1 and trade that account as much as you want, with the same spreads that the big boys trade with. This works well with any risk management profile.
What I don't like about OANDA's trading platform is that I cannot enter notes on the chart. Unlike other trading platforms that I have used. But I guess it's a small trade-off; they claim their developers are working on an upgrade for that.
Hope this helps.
Jim http://jsforex.blogspot.com
Do you think investing in the Russian ruble is a good idea?
Lux
I was planning to invest about $500 in the Russian ruble. Not through forex, but to actually have the tangible cash in my safe. This would be almost 15,000 rubles.
In two years time, do you think I will have made money?
Thanks in advance!
Answer
You leave out some pertinent facts. Where do you live? Are you located near the Russian border, so you can acquire and sell the currency at minimal expense? If you get this from a currency dealer, you will pay a very high markup. In the United States, banks and currency exchange desks at airports charge exorbitant fees and use rip-off exchange rates. You'll be far behind from the get-go. When you sell, you'll be hit hard in the other direction, unless you live close enough to Russia to go there and spend the money easily. So even if the ruble goes up, it must go up enough to overcome the expenses you incur.
This is a major gamble, with little prospect of an after-expense profit. Especially a profit larger than what you would have made had you simply placed the $500 into a money market fund.
You leave out some pertinent facts. Where do you live? Are you located near the Russian border, so you can acquire and sell the currency at minimal expense? If you get this from a currency dealer, you will pay a very high markup. In the United States, banks and currency exchange desks at airports charge exorbitant fees and use rip-off exchange rates. You'll be far behind from the get-go. When you sell, you'll be hit hard in the other direction, unless you live close enough to Russia to go there and spend the money easily. So even if the ruble goes up, it must go up enough to overcome the expenses you incur.
This is a major gamble, with little prospect of an after-expense profit. Especially a profit larger than what you would have made had you simply placed the $500 into a money market fund.
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Forex: What is the best pair to earn with Swap?
Posted by Ryanita
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forex 6 majors
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comments (0)
Pedro P
I want to earn as much as possible with the swap. Please explain to me which pair pays the highest swap.
Thank you.
Answer
I think you are confused and need to define your terms and restate your question.
Are you asking about a currency swap? A swap is generally for companies, not individuals. We, as individuals, use a forex broker to trade currency pairs.
Investopedia explains Currency Swap
For example, suppose a U.S.-based company needs to acquire Swiss francs and a Swiss-based company needs to acquire U.S. dollars. These two companies could arrange to swap currencies by establishing an interest rate, an agreed upon amount and a common maturity date for the exchange. Currency swap maturities are negotiable for at least 10 years, making them a very flexible method of foreign exchange.
Currency swaps were originally done to get around exchange controls.
Read more: http://www.investopedia.com/terms/c/currencyswap.asp#ixzz1fOAgL6Rc
Firms and financial institutions dominate the swaps market, with few (if any) individuals ever participating. Because swaps occur on the OTC market, there is always the risk of a counterparty defaulting on the swap.
Currency swaps have two main uses:
To secure cheaper debt (by borrowing at the best available rate regardless of currency and then swapping for debt in desired currency using a back-to-back-loan).
To hedge against (reduce exposure to) exchange rate fluctuations.
Is one of the above what you're trying to do? If so, give an example so we can be clear and not have to waste our time guessing.
You asked, "I want to earn as much as possible with the swap." As you can see from the "uses" above, the objective of a swap is not to "earn as much as possible."
If not a swap, then you are probably asking "what is the best currency pair to speculate on in order to make money?" You want to trade currencies, and you're asking which currency pair makes or "pays" the highest return?
Are you a trader? Or are you new to Forex? Once again, I have to guess you're a newbie. A trader focuses on risk, not potential profits.
Whatever your question relates to, you don't seem to realize that "best" is a relative term, that means something different to each and every trader. The highest volatility pair may have the biggest price swings, but may not be "best" for trading or your account.
For me, a prerequisite to trading is liquidity. That means I don't trade the rare crosses or at illiquid times of the day -- I don't trade the Asian session, for example.
Define your terms on Investopedia.com.
Maybe the following will help:
Currency Trading â FOREX â Foreign Currency Exchange
1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar
7.EUR/GBP - Euro/Great British Pound
8.EUR/JPY - Euro/Japanese Yen
9.EUR/CHF - Euro/Swiss Franc
10.GBP/CHF - Great British Pound/Swiss Franc
11.GBP/JPY - Great British Pound/Japanese Yen
12.CHF/JPY - Swiss Franc/Japanese Yen
13.NZD/USD - New Zealand Dollar/US Dollar
14.EUR/CAD - Euro/Canadian Dollar
15.AUD/CAD - Australian Dollar/Canadian Dollar
16.AUD/JPY - Australian Dollar/Japanese Yen
17.EUR/AUD - Euro/Australian Dollar
NOTE: Of the above 17 currency pairs, six of them are deemed the âmajor currency pairsâ in the FOREX market because they account for about 80 percent of FOREX transactions:
1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar
As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.
TERMINOLOGY:
â¢PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
â¢LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
â¢LONG to buy
â¢SHORT to sell
â¢BID-The price at which you sell
â¢ASK-The price at which you buy
Price Interest Point - (PIP)
Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.
I think you are confused and need to define your terms and restate your question.
Are you asking about a currency swap? A swap is generally for companies, not individuals. We, as individuals, use a forex broker to trade currency pairs.
Investopedia explains Currency Swap
For example, suppose a U.S.-based company needs to acquire Swiss francs and a Swiss-based company needs to acquire U.S. dollars. These two companies could arrange to swap currencies by establishing an interest rate, an agreed upon amount and a common maturity date for the exchange. Currency swap maturities are negotiable for at least 10 years, making them a very flexible method of foreign exchange.
Currency swaps were originally done to get around exchange controls.
Read more: http://www.investopedia.com/terms/c/currencyswap.asp#ixzz1fOAgL6Rc
Firms and financial institutions dominate the swaps market, with few (if any) individuals ever participating. Because swaps occur on the OTC market, there is always the risk of a counterparty defaulting on the swap.
Currency swaps have two main uses:
To secure cheaper debt (by borrowing at the best available rate regardless of currency and then swapping for debt in desired currency using a back-to-back-loan).
To hedge against (reduce exposure to) exchange rate fluctuations.
Is one of the above what you're trying to do? If so, give an example so we can be clear and not have to waste our time guessing.
You asked, "I want to earn as much as possible with the swap." As you can see from the "uses" above, the objective of a swap is not to "earn as much as possible."
If not a swap, then you are probably asking "what is the best currency pair to speculate on in order to make money?" You want to trade currencies, and you're asking which currency pair makes or "pays" the highest return?
Are you a trader? Or are you new to Forex? Once again, I have to guess you're a newbie. A trader focuses on risk, not potential profits.
Whatever your question relates to, you don't seem to realize that "best" is a relative term, that means something different to each and every trader. The highest volatility pair may have the biggest price swings, but may not be "best" for trading or your account.
For me, a prerequisite to trading is liquidity. That means I don't trade the rare crosses or at illiquid times of the day -- I don't trade the Asian session, for example.
Define your terms on Investopedia.com.
Maybe the following will help:
Currency Trading â FOREX â Foreign Currency Exchange
1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar
7.EUR/GBP - Euro/Great British Pound
8.EUR/JPY - Euro/Japanese Yen
9.EUR/CHF - Euro/Swiss Franc
10.GBP/CHF - Great British Pound/Swiss Franc
11.GBP/JPY - Great British Pound/Japanese Yen
12.CHF/JPY - Swiss Franc/Japanese Yen
13.NZD/USD - New Zealand Dollar/US Dollar
14.EUR/CAD - Euro/Canadian Dollar
15.AUD/CAD - Australian Dollar/Canadian Dollar
16.AUD/JPY - Australian Dollar/Japanese Yen
17.EUR/AUD - Euro/Australian Dollar
NOTE: Of the above 17 currency pairs, six of them are deemed the âmajor currency pairsâ in the FOREX market because they account for about 80 percent of FOREX transactions:
1.EUR/USD - Euro/U.S. Dollar
2.GBP/USD - Great British Pound/U.S. Dollar
3.USD/CHF â- U.S. Dollar/Swiss Franc
4.USD/JPY â- U.S. Dollar/Japanese Yen
5.USD/CAD â- U.S. Dollar/Canadian Dollar
6.AUD/USD - Australian Dollar/U.S. Dollar
As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.
TERMINOLOGY:
â¢PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
â¢LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
â¢LONG to buy
â¢SHORT to sell
â¢BID-The price at which you sell
â¢ASK-The price at which you buy
Price Interest Point - (PIP)
Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.
Is EUR/USD the best currency to trade in forex?
Stuart
I want to start trading in forex, therefore just want to know which curreny is beneficial at this point of time.
Answer
The EUR/USD is the most liquid, most traded currency. I'm not sure what you consider to be "best." We tend to trade whatever is moving at the moment.
There are six currency pairs that are deemed the âmajor currency pairsâ in the FOREX market because they account for about 80 percent of FOREX transactions:
1. EUR/USD - Euro/U.S. Dollar
2. GBP/USD - Great British Pound/U.S. Dollar
3. USD/CHF â- U.S. Dollar/Swiss Franc
4. USD/JPY â- U.S. Dollar/Japanese Yen
5. USD/CAD â- U.S. Dollar/Canadian Dollar
6. AUD/USD - Australian Dollar/U.S. Dollar
As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.
In the case of your question concerning the EUR/USD pair, it's simpler to think in terms of being long first. If you are long the pair, you are long the base currency(EUR) and short the cross (USD) simultaneously. Being short would be the reverse of that.
If yo are short the EUR/USD pair, you are short the base currency (EUR - betting it will go down in price, or go down more than the USD), and long the cross currency (USD - betting it will go up in price, or go up more than the EUR).
TERMINOLOGY:
⢠PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
⢠LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
⢠LONG to buy
⢠SHORT to sell
⢠BID-The price at which you sell
⢠ASK-The price at which you buy
Price Interest Point - (PIP)
Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.
Calculated PIP
Calculated PIP â shows the Price Interest Point (PIP) value for the selected currency pair based upon your trading account margin. For example, a standard 1 percent margin trading account controlling $100,000 in currency would show the EUR/USD with a PIP value of 10.
PIP VALUE-Fixed or Floating
FIXED- When the USD is the cross currency (right side of the pair), the PIP value is fixed at $10 in a 100k account.
FOATING- When the USD is the base currency (left side of the pair), the PIP value is based upon the exchange rate of the cross currency (i.e., USD/CAD.). Also, the PIP value is floating when the pair consists of foreign currencies (i.e., EUR/ GBP).
LOT
A lot is the normal unit of trading in the FOREX market. Trades are made in lot increments, similar to share increments in the stock market.
Standard (or 100k) FOREX account- has a 100:1 leverage ratio
1 LOT= $1,000 investment= ratio leveraged 100 to 1, which = $100,000 in buying power.
Mini FOREX account- has a 200:1 leverage ratio
1 LOT= $50 investment= ratio leveraged 200 to 1, which = $10,000 in buying power.
TRADING HOURS (EST)
⢠Trades 24 hours a day, 6 days a week. The market is open from Sunday at 5pm EST to Friday at 4pm EST.
The EUR/USD is the most liquid, most traded currency. I'm not sure what you consider to be "best." We tend to trade whatever is moving at the moment.
There are six currency pairs that are deemed the âmajor currency pairsâ in the FOREX market because they account for about 80 percent of FOREX transactions:
1. EUR/USD - Euro/U.S. Dollar
2. GBP/USD - Great British Pound/U.S. Dollar
3. USD/CHF â- U.S. Dollar/Swiss Franc
4. USD/JPY â- U.S. Dollar/Japanese Yen
5. USD/CAD â- U.S. Dollar/Canadian Dollar
6. AUD/USD - Australian Dollar/U.S. Dollar
As you can see, there is a currency on the left and one on the right. The one on the left is referred to as the base, and the one listed on the right is known as the cross. The format, once again, is as follows. BASE/CROSS, or EUR/USD. The EUR is the BASE and the USD is the CROSS.
In the case of your question concerning the EUR/USD pair, it's simpler to think in terms of being long first. If you are long the pair, you are long the base currency(EUR) and short the cross (USD) simultaneously. Being short would be the reverse of that.
If yo are short the EUR/USD pair, you are short the base currency (EUR - betting it will go down in price, or go down more than the USD), and long the cross currency (USD - betting it will go up in price, or go up more than the EUR).
TERMINOLOGY:
⢠PIPS- Price Interest Point. This is the smallest unit price for any Foreign Currency.
⢠LOT- A lot of currency is one denomination for a trade (100K or mini account). This is similar to purchasing one stock or one contract in the futures market.
⢠LONG to buy
⢠SHORT to sell
⢠BID-The price at which you sell
⢠ASK-The price at which you buy
Price Interest Point - (PIP)
Profits are made in the FOREX by gaining PIPS. A pip is the last digit from the decimal point. This value is 1/100th of a cent. You may now be asking yourself, how do I make money off of 1/100th of a cent? The answer is leverage. The FOREX market is highly leveraged and should be respected. That said, it can also provide for a tremendous return on your investment. The average leverage in the FOREX is 100 to 1. Basically this indicates that for every dollar you invest in a trade you are controlling $100 of value.
Calculated PIP
Calculated PIP â shows the Price Interest Point (PIP) value for the selected currency pair based upon your trading account margin. For example, a standard 1 percent margin trading account controlling $100,000 in currency would show the EUR/USD with a PIP value of 10.
PIP VALUE-Fixed or Floating
FIXED- When the USD is the cross currency (right side of the pair), the PIP value is fixed at $10 in a 100k account.
FOATING- When the USD is the base currency (left side of the pair), the PIP value is based upon the exchange rate of the cross currency (i.e., USD/CAD.). Also, the PIP value is floating when the pair consists of foreign currencies (i.e., EUR/ GBP).
LOT
A lot is the normal unit of trading in the FOREX market. Trades are made in lot increments, similar to share increments in the stock market.
Standard (or 100k) FOREX account- has a 100:1 leverage ratio
1 LOT= $1,000 investment= ratio leveraged 100 to 1, which = $100,000 in buying power.
Mini FOREX account- has a 200:1 leverage ratio
1 LOT= $50 investment= ratio leveraged 200 to 1, which = $10,000 in buying power.
TRADING HOURS (EST)
⢠Trades 24 hours a day, 6 days a week. The market is open from Sunday at 5pm EST to Friday at 4pm EST.
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Hey Forex/Market Watcher-types: Why shouldn't I be shorting the yen?
Posted by Ryanita
on , under
forex watchers
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comments (0)
Gokiburi
Then yen has been riding the carry trade meltdown for some time now. And for some reason, it's seen as a "safe" currency in times like this. But if you look at the fundamentals, Japan is in big trouble. So this crazy rise in the yen is starting to look like oil did in the first half of 2008: a speculative circle jerk without the fundamentals to back it up. Am I wrong? Is it too early yet to short? What do you think?
Answer
Bad move. Japan has a currency rate of 0.10%. If you short JPY against another currency and that country/region drops their interest rate to stimulate their economy in a recession, JPY will go up. The same will happen if Japan increases its rate.
Regarding the five majors:
USD: 0.25%
JPY: 0.10%
EUR: 2.00%
CHF: 0.50%
GBP: 1.50%
You definitely would be at risk with the cross rates. I wouldn't be surprised if the UK make a rate cut. The swiss franc is no good even with a 0.50% rate because it moves similar to the Euro and the European union has room for rate cuts.
Your only option for shortening the JPY is against the USD. With America wanting to improve employment and the housing market, I think the FOMC will leave the US rate at 0.25 for most of or all of 2009, but even then you've got to hope that Japan doesn't raise their interest rate.
I'm more knowledgeable about the stock market, but I have traded the FX spot market before. If I was trading it now, I would be shorting the Pound against the USD. UK is in a recession and have more room for interest rate cuts. The US and Japan doesn't.
Bad move. Japan has a currency rate of 0.10%. If you short JPY against another currency and that country/region drops their interest rate to stimulate their economy in a recession, JPY will go up. The same will happen if Japan increases its rate.
Regarding the five majors:
USD: 0.25%
JPY: 0.10%
EUR: 2.00%
CHF: 0.50%
GBP: 1.50%
You definitely would be at risk with the cross rates. I wouldn't be surprised if the UK make a rate cut. The swiss franc is no good even with a 0.50% rate because it moves similar to the Euro and the European union has room for rate cuts.
Your only option for shortening the JPY is against the USD. With America wanting to improve employment and the housing market, I think the FOMC will leave the US rate at 0.25 for most of or all of 2009, but even then you've got to hope that Japan doesn't raise their interest rate.
I'm more knowledgeable about the stock market, but I have traded the FX spot market before. If I was trading it now, I would be shorting the Pound against the USD. UK is in a recession and have more room for interest rate cuts. The US and Japan doesn't.
After spending my entire life studying the stock market..do I have it right..?
parrothead
ok..when I say my "entire life", what I mean is that I watched the 6:00 news tonight, which makes me an expert...in my house.
My expert prediction is that the market will come right back up in the next 2 market sessions, and the networks are trying to scare everyone and create the news.
I know my prediction isnt very complicated, which will make many market watchers be wary of it, but I bet I'm right.
The good news is that we will know by Monday evening.
The bad news is that the networks will start creating other news shortly there after.
re: maximus ....I'm no expert..just an idiot posting messages on yahoo...but when the market rebounds by monday, I will be a GENIUS! ;)
I dont know which market will rebound..I didnt know multiple markets needed rebounding...so I'll let you pick which one..then we'll both be GENIUS ;)
Answer
MSNBC, Bloomburg and the such like just create a load of hype... there is no way that any market professionals base their buy / sell decissions on the waffle on the goggle box.
you say "After spending my entire life studying the stock market..do I have it right..? "
well predicting the right market just once does not make you an expert... you say "the stock market" but what specific market? the dow, the nasdaq?...
"My expert prediction is that the market will come right back up in the next 2 market sessions, "
-- to what level? and for how long? .... eg. its easy to say "buy the market" but what market? and knowing *when* to sell is the other side of a successful trade. what are you basing your trading signal on? a flip of a coin, or genuine market knowledge and insight?
BTW - Each year, some financial magazine or news paper will get a monkey to throw darts at the stocks in the wall street journal... they usually perform quite well beleive it or not !!!
here is a way to prove you are an expert. By filming yourself and posting your (technical or fundimental) analysis on the net (youtube for example) you can allow people to see your prediction BEFORE the event... if you ARE a true market guru, then this will be apparent for all to see, and then, no doubt MSNBC will want you on their show :-)
i sometimes follow people who "predict" the FOREX markets on youtube.
All the best !
MSNBC, Bloomburg and the such like just create a load of hype... there is no way that any market professionals base their buy / sell decissions on the waffle on the goggle box.
you say "After spending my entire life studying the stock market..do I have it right..? "
well predicting the right market just once does not make you an expert... you say "the stock market" but what specific market? the dow, the nasdaq?...
"My expert prediction is that the market will come right back up in the next 2 market sessions, "
-- to what level? and for how long? .... eg. its easy to say "buy the market" but what market? and knowing *when* to sell is the other side of a successful trade. what are you basing your trading signal on? a flip of a coin, or genuine market knowledge and insight?
BTW - Each year, some financial magazine or news paper will get a monkey to throw darts at the stocks in the wall street journal... they usually perform quite well beleive it or not !!!
here is a way to prove you are an expert. By filming yourself and posting your (technical or fundimental) analysis on the net (youtube for example) you can allow people to see your prediction BEFORE the event... if you ARE a true market guru, then this will be apparent for all to see, and then, no doubt MSNBC will want you on their show :-)
i sometimes follow people who "predict" the FOREX markets on youtube.
All the best !
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