Trading Currency Blog

ahad95 asked:


Since the Financial crises began in United states of America in mid of September 2008 and Us government taleover of worlds biggest company “Merrillynch” and fall of “Lehman brothers” AIG, and Us government asking Congress to bailout $ 700 billion package with $ 300 billion Official gurantee to financial companies and subsequntly “Fortis” downfall and yesterdays Germany’s “Hypo Real Estate Holding Ag” problem asking for Euro 35 Billion pavkage and todays appeal of US  to have united front to help save the current financial crises are big blow to the individual and corporate customers , who have no idea where these crise are going to land.

I would suggest to small and medium investors to watch the markets volatility carefuly and if they have any position in currencies than the trend of the market is very clear and indicates its current direction particularly in British pound and Euro. Majority of the traders and Speculators are selling Euro and British pound and buying Japanese yen. Investors from Middle east and other countries have found safe haven in taking long Gold positions. In my opinion they should not take major risk to hold their positions for log term rather they should take profits at their decided level or at earlier level to stay out of the market as uncertainity prevails in the market.

For more small investors I woul rather advise them if they had their long positions in Japanese yen, and short positions in British pound and Euro, as well Gold to quare up before US close andnot to take unwanted risk to keep open their positions for over night.

I am updating financial and commodities news in my website with my daily comments and advise regularly.

www.forexfutures786.com



PANKRATZ

anna coulling asked:


If you propose to trade currency for the longer term, such as I do, rather than as a scalper who trades the market hundreds of times as day, then a key element to your success will be in understanding the carry trade. This provides trading opportunities due to the difference in interest rates between the various currencies.

Each country and therefore currency has its own interest rate, which is then converted into borrowing and lending rates by all the banks. When a bank lends you money the rates are always higher than when it borrows (like a spread). It pays you a lower rate on your funds deposited, than it charges you to borrow! Now, obviously rates between countries vary enormously. The interest rate in Japan is currently near 0%, and the New Zealand central bank rate is 7.25%, the Swiss is currently 2.0%, the Eurozone 3.5%, UK 5.25%, and the US at 5.25% Now the variation in currency from country to country allows us to use interest rates to our advantage in longer term trading.

If we take an example as follows: suppose we decide to buy the USD/JPY currency pair. With a BUY order we are long in US dollars (bought) and are short the Japanese Yen. Over a twenty four hour period on 10,000 dollars we might look to make $1.10 every 24 hour period. Now if we assume that you are trading at a leverage of 100:1, you are effectively earning 1.10 USD on 100 dollars for one day on a buy order. For a month of trading this would equate to 33 USD on 100 dollars - not a bad rate of return!!! With a carry trade we always buy the higher interest rate currency and sell the lower interest rate for a positive carry. Using the carry trade is a great way to earn excellent rates of return on your trades, along with a profit on the actual trade itself – and remember if the trade goes in the opposite direction, at least you are earning money on the trade. The longest I have held a carry trade is nearly 15 months.

In using carry trades, always use the major crosses, never any of the exotics, and always remember that if you are looking at a carry trade possibility, so is the rest of the world. After all we all look at the same charts and prices!! Also remember that what may have been a great carry trade last year may not be so great this year – interest rates can and do change so check the carry trade yield before you enter the trade!!



KIMBEL

riya4zah asked:


Is there any currency trading schoo in Abu dhabi. Please let me know.

GOLDSON

Abhishek Agarwal asked:


Whatever the job type, everyones ultimate goal is to succeed and gain surplus. You need to have the right knowledge in order to become successful. Being a business person, you should learn the most reliable and right way to become successful in trading market. Learning the trading commodities concept requires a trader to use different trading tricks, and by using law of charts. This can help in profiting from trading commodities.

In trading commodities, to gain bigger profits and earn large amount of money is to identify the market trends as quickly as you can before anyone else finds it. Currency trading can have many supports or resistance at the same time. If you are quick in determine the market trend then you can earn good profit. Trend is not limited to a specific time. Market trend can change at any time including intra-day, daily, weekly or even monthly.

Some trading commodities tools are available to help you identify these trends. Given below are some trading style for you :

1. Look out for trading up of prices. If you see a trading up in the trend it is advisable to buy at that time. In order to overcome the anticipative resistance, enter into the buy signals which are more than the current prices. On the other hand, if the trading down occurs, you should consider selling. Look for selling opportunities. To break the anticipative support, you must do exactly of that when trading up occurs i.e. to enter those sell signals which are well lower than the current prices.

2. You should look for optional objectives depending on whether it is short or long. You should consider short for anticipative support and long for next level resistance.

3. You should always have a protective stop on your trades till it hits.

Pay attention to some of the factors given below to make sure you know about the opportunities

4. The best time to look for buying opportunity is when the behavior of market changes from normal to bullish.

5. When the behavior is bullish you should hold protective stops for long positions which are below support level.

6. You should let go of the long positions if status changes to neutral.

7. Start finding short positions if the status changes to bearish from bullish. Bearish status is a good opportunity to find selling opportunities.

8. With bearish status you should hold resistance on short positions with protective stops.

9. Let go of short positions when status changes to neutral.

10. Find long positions if status changes from bearish to bullish.

You should have the knowledge about what to expect in future related to market trends. Have knowledge about directional bearish and proprietary bullish market forecast and resistance and support. Listen to different comments about the trends. Always remember that change in market which can be either bullish or bearish is very important in deciding which position to let go and which opportunity to grab.



COLLIER

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VANLOO

John asked:


I am looking into online currency trading and i was wondering what the best website or company is the best. I know some companies have different spreads on the exchange rates and it is better to have small spreads. Also what fees are involved in each company.

COMTOIS

arvarma asked:


If I were to trade USD/GBR on forex market, what sort of hedge would I use to reduce my level of risk? Ie would I buy other currencies at the same time, or use forward contracts / future contracts or even options. Which is the most common and effective.

Thanks

GEDNEY

Alfred L asked:


Any advice on training in this field?

AUDIE

txtx asked:


new zealand and austraila or canadian dollars

MCCOMBS

hurashio2525 asked:


I have a good idea of the stock market and how that works, but currency trading confuses me. Is there a exchange just like the NYSE or Nasdaq that money is traded on? How does the value of the dollar change everyday? How is the Euro at $1.52 to the dollar?

DARING