8 Reasons Why Forex Trading is So Popular

8 Reasons Why Forex Trading is So Popular
Posted by admin in Featured Articles, The Markets on 07 6th, 2009 | no responses

forex19Foreign currency exchange is the largest financial market on the planet. An estimated $1.5 TRILLION dollars is spent daily through Forex trading. While banks and financial institutions do most of the trading, ordinary people like you and me can also. The internet is the best place to look for information on how to get started. Furthermore, all the tools and resources involved such as Forex broker reviews can be found online.

Here are just some of many the reasons why Forex trading is so popular:

* It’s a 24 hour market that’s open all hours of the day and night, in every time zone.
* There are many currencies all around the world, and traders can have access to them all.
* Even small, 0.25% margins can be traded with currency lots.
* Trends in the market can be predicted, which makes it easier on investors to make the right trades.
* An account can be opened for as little as $200, therefore wealth isn’t a requirement for being a successful Forex trader.
* Profits can be made both in the long term and short term.
* Forex signal generators, automated robots and Forex broker reviews can be used as helpful tools.
* Trading can be done completely online from the comfort of one’s own home.

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Posted by rana at 9:38 AM 0 comments

TRADING FOREX FUTURES

TRADING FOREX FUTURES
The profits of forex over currency futures trading are significant. The difference between the two instruments range from truth-seeking realities such as the history of each, their objective viewers, and their importance in the modern forex markets, to more concrete issues such as transactions fees, margin necessities, access to liquidity, easiness of use and the technical and educational support obtainable by sources of each service. These dissimilarities sketched below:




FOREX FUTURES

More Volume = Improved Liquidity. Daily money futures volume on the CME is now above 2% of the volume seen each day in the forex markets. Incomparable liquidity is one of many advantages that forex markets clutch more currency futures.

The truth told this is old news. Any currency professional can tell you that cash has been king since daybreak of the modern currency markets in the early 1970's. The actual news is that individual dealers from every forex risk profile now have full right to use to the opportunities offered in the forex markets.

Forex markets give tighter bid to offer increases than currency futures markets. By reversing the futures cost to evaluate it to cash, you can willingly see that in the USD/CHF example over, inverting the futures selling price of .5894 - .5897 results in a currency price of 1.6958 - 1.6966, 8 pips vs. the 5-pip increase available in the forex currency markets. FOREX BOOKS and PRODUCTS

Forex markets offer higher advantage and lower margin charge than those found in currency futures trading. When trading currency futures, buyers have one margin charge for "day" buy and sells and another for "overnight" situations. These forex margin rates can differ depending on business size. When trading cash markets, you have admission to the same margin rates day and night. Certainly, trading on margin enlarges equally your fx profits AND your losses.

Forex markets make use of easily understood and across the world used terms and cost quotes. Currency futures quotes are inversions of the cash value. For instance, if the cash price for USD/CHF is 1.7100/1.7105, the future corresponding is .5894/ .5897; a method followed only in the limits of futures trading.

Currency futures charges have the added difficulty of with an advance forex part that takes into account a time factor, interest rates and the interest disparities flanked by different currencies. The forex markets need no such changes, mathematical manipulation or thought for the interest rate factor of futures agreements.

Forex trades performed through FOREX.com are charge free*. Currency futures have the extra baggage of trading commissions, trade fees and defrayal fees.

Making Money in FOREX

Whether you’re a stock broker, mortgage broker or loan officer, FOREX trading is an essential part of one’s portfolio. FOREX trading is an extremely lucrative, yet volatile and risky market. The facts state that 95% of FOREX traders lose money in there first year of trading. Why then must FOREX be considered a part of one’s portfolio? Simply because trading FOREX has the potential to make anyone who is willing to learn the FOREX market thousands of dollars per month.

It wasn’t until recently that average everyday people were able to trade in the FOREX market. Now it’s easy to obtain a mini account, fund it with $300 and off you go. However, if trading the FOREX market were this easy, then everybody would become millionaires and this just isn’t the case.

FOREX trading requires consistent analysis of the market. There are two ways that FOREX traders assess the market. The first is what is known as fundamentals. Fundamentals rely on news events such as, CPI, retail sales and home sales. FOREX traders will make a projection for upcoming data and place their trade based on their speculations of upcoming news events.

Another type of FOREX trader is what we call a technical trader. FOREX technical traders rely on chats and mathematical formulas to place their traders. The idea is that history repeats itself. Based on historical patterns FOREX traders can use this data to predict price movement in the future.

There is no proven method to trading. Some people claim to have found the Holy Grail to FOREX trading. However, through my experience it’s best to develop your own method of trading. Decide the best time to trade, develop good money management, and set goals. A lot of experienced FOREX traders trade the London and New York overlap between the hours of 9:30 am GMT and 2:00pm GMT. The reason for this being is that during this time the market moves a lot and becomes extremely volatile. Many FOREX traders are extremely good when it comes to managing their money.

The key to success in FOREX trading is to block out your emotions and anxiety. A true FOREX trader will discipline themselves to stick to their trading style regardless of what happens in the markets. Many people feel as though just after a few short months of trading successfully in a demo account they are ready for the real thing. Take your time and really learn how the FOREX market works.

Intro to Forex Currency Trading

Forex, which is short for Foreign Exchange, is another term for currency trading. The goal of forex is try to profit by trading the ever-changing currency exchange rates, such as the Euro versus the U.S. Dollar.

Exchange Rate Example
One of the most popular currency pairs is the EUR/USD, which tracks the Euro against the U.S. Dollar. If the EUR/USD is at 1.5000, that means one Euro will get you 1.5000 U.S. Dollars. One thing that’s interesting about these exchange rates is that they are relative to two countries. If the Euro gets “stronger”, the rate goes up to 1.5785, for example, because you can buy more Dollars. If the Dollar gets stronger, the rate will drop because the Euro will buy fewer Dollars. However, if both the Euro and the Dollar get stronger (or weaker) by the same amount, the rate won’t really change!

Similar to Stock Trading
Currency trading actually has many similarities to stock trading. Many people are familiar with how stock trading works: find a price quote for a company using its symbol, then buy that symbol at a low price and sell it later at a higher price hopefully. Forex is actually very similar: get a quote for a symbol like EUR/USD, buy it at a lower rate like 1.4000 and then sell it at a higher rate like 1.4050.

Meet the Pip
Since the exchange rates change by such a small percentage, a term called the pip is used to describe changes in rates or profits. For example, if the GBP/CHF (British Pound versus Swiss Franc) goes from 1.7000 to 1.7001, it has increased by 1 pip, and an increase to 1.7100 would be 100 pips because for this pair one pip is 0.0001. However, for a rate like 95.00 for the USD/JPY, the pip represents 0.01, so 95.01 would be a 1-pip gain while 96.00 would be a 100-pip gain. This just describes the rate differences. To calculate your dollar gains, you need to factor in the lot size (see below).

The Spread instead of a Commission
Forex brokers make their profits not by charging a commission on each trade but by creating a small difference between the Bid (Sell) and Ask (Buy) prices. This is called the Spread and it is measured in pips. A typical spread might be between 1 and 10 pips. So if you bought and then sold right away, you would actually lose money by the amount of the spread. For example, buying EUR/USD at 1.5000 (the Ask) and selling at 1.4995 (the Bid) would be a loss of 5 pips.

Lots of Lots
Stock trading involves buying shares but forex trading involves buying lots. Depending on the account type, the lot size will be something like 1K, 10K, or 100K. Assuming your account has a 10K (10,000) lot size and you buy 8 lots, that would be a total contract size of 80K. It is important to realize that you must place your trades in increments of the lot size.

Margin and Leverage
Since currency rates change by such small amounts at a time, most forex brokers offer a large amount of leverage, such as 200 to 1. That means you only use $1 of your actual cash for every $200 of a currency pair that you purchase. For example, if you buy 10K of EUR/USD at 200:1 leverage, that would only require $50 of cash because 10,000 divided by 200 is 50. The purpose of the leverage is to amplify your profits but keep in mind it can just as easily amplify your losses. Many, many traders have lost all of their trading money because of leverage, so be careful!

Practice Trading
Many forex websites offer free demo programs that allow you to practice trading with virtual money, often for a limited time. Practicing with these demo programs is highly, highly recommended until you become comfortable with the trading process and the dangers of leverage.

Forex Trading Accounts – What You Need To Know

There are two types of forex accounts; a mini forex account and a regular forex account. Mini forex trading is an excellent way for small investors to learn about and take part in forex trading and with the most forex brokers offering a leverage of 100:1, mini forex trading will allow you to control a $10,000 currency position with a deposit of only $100. Mini forex trading is a great way to get a feel for forex trading and learn the tricks and skills needed to succeed without having to go to great expense. Why not try mini forex trading now and see just how easy it is to profit with forex trading.

Forex trading is the new way to make money through online currency trading. With a worldwide market and over 60 currencies for you to trade there has never been an easier way to make money online.

Forex currency trading is done is pairs and these are known as crosses. These pairs are always against the US dollar and the main crosses you will find when trading forex are the USD/EUR and the USD/GDP. The most popular crosses are known as majors and these can make forex traders great profits. Currencies change on a regular basis and are based on the how the world financial markets see the value of the currencies. You can sell or buy these currencies and forex brokers do not charge commission fees.

Forex trading until recently was reserved for banks and other large financial industries but thanks to the power of the internet and online currency trading, forex has now become feasible for everyday people. The forex market has become the largest trading market in the world and each day there is an estimated turnover of over $1.5 trillion dollars. Another added bonus is that forex trading is available 24 hours a day, 5 days a week unlike most other markets that operate on an 8 hour day. This means that people wishing to trade forex can do so at any

Latest Forex News 2/22

Latest Forex News 2/22

Forex - Dollar selling continues; euro breaks above 1.32 usd mark

LONDON (AFX) - Dollar selling continued into the afternoon, with the euro breaking through the 1.32 usd mark for the first time in over five weeks

The selling was sparked in Asian trade overnight after reports yesterday that the Korean central bank plans to diversify its reserves away from the US dollar. A spokesman for the Bank of Korea was quoted as saying in a report to parliament that as foreign exchange reserves increase, the central bank "will expand its investment into non-government papers, which carry relatively high yields, and diversify the currencies in which it invests

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Posted by rana at 11:52 AM

Forex Trading, What the Hype is All About

Trading with forex is all about how much revenue you can earn and some speculators have found it quite easy to realize a large amount of money as the forex market changes daily. Forex is the international stock exchange. No matter where you look all mentions of the forex stock market is named as FX. Forex buying and selling takes place through a broker or a financial establishment often where you are able to purchase other varieties of company stocks, investment funds and even bonds.

When you are thinking about getting involved in the forex markets you should know you are sending money so it can be placed with other nationalities. This is to help the invested money for those mired in hedge funds and in overseas trade markets. Exchanging your money on the forex exchange puts your money up for trade in a certain market today and then invested in another country the very next day. These shifts of money are decided by your overseas broker. As you browse through your statements and are reviewing everything you can about your account details, you’ll see that every foreign currency is indicated by three letters.

A list of examples include the American dollar as USD, the Japanese yen indicated by JPY, and the British pound sterling will read as GBP. You will also find that for every transaction on your summary account, you’ll notice information that looks like this: JPYzzz/GBPzzz. This is indicative that you used your yen funds and put them into a British pound exchange. You will find many transactions from one currency to another if you have money scattered through out the forex markets.

If you are going to trade in the forex markets, if should be done by professional financial management companies as they are the investment firms you can count on. You want to find a company that has been dealing with forex trading for thirty years or more, and not just a company that has just come out so that you can be assured of their staying power. Be careful to avoid certain so called investment firms that are popping up online, and often times from foreign countries that are trying to convince you that they can put your money forth into the forex exchange. Read the fine print, and be sure of who you are doing business with for your own security.

If you are interested in trading on the forex market, you will find limits for investing vary between companies. Often times you will learn that you need 250-500 dollars, but at other investment firms they demand upwards of 10,000 dollars. The company you are dealing with will tell you the minimum and maximum you’ll have to have in order to get your account started. The online scams are visible when they tell that is all that is needed to open an account, but you need to learn more about that company and find out where they are sticking your money. This is for your own protection when trading with foreign entities and web site forex exchange sites.

Forex Markets Worldwide Tips & Information

Forex is also considered by the name foreign market exchange or FX. Those concerned in the foreign exchange markets are usually the biggest, most wealthy business organizations and banks from around the world. They trade in multiple currencies from many countries to create that balance between those who will profit and others who might in all probability suffer fantastic losses. The fundamental principles of forex are similar to that of the stock market found in any country, only much bigger and complex. Forex dealing involves individuals, monies and transactions from all across the globe between every last country

Currency rates rise and fall on a daily basis so the measure of the dollar on one particular day of trading could be higher or lower the next. Forex trading can be hard to keep track of so you must dedicate yourself to watch closely or if you are investing huge amounts of money, you could lose large amounts of money. Primarily, trading in the forex exchange occurs in Tokyo in London and in New York, but there are also many other locations around the world where forex trading does take place.

The most heavily traded currencies are those that include (in no particular order) the British pound, Australian dollar, the Swiss frank, the United States dollar, the Eurozone euro and the Japanese yen. You can cross-trade currencies as well as mixing the trades between currencies to acquire extra money and daily interest.

The times when forex exchange will start at one hour and then close while other markets are opening. This is seen also in the stock exchanges from around the world, as transactions are starting in one time zone while making other transactions during various times. The conditions of forex trades in one region might create various results in another forex exchange as the countries take turns opening and closing with the time zones. Rates of exchange will be different from a forex exchange to another, and if you are a broker, or if you are learning about the forex markets you want to know what the rates are on a given day before making any trades.

The nature of the stock exchange is dependent on various products and their value as well as other financial factors that will change the price of stocks. When people find out a business event is going to happen before public disclosure, it is called insider trading, the use of illegal business intelligence to buy stocks and make money - which by the way is illegal. There is not so much inside trading in the forex trading markets. Financial trading is a basic part of the forex exchange but very little is based on business secrets, but more on the value of the economy, the currency and such of a country at that time.

A three letter code is attached to every currency on the forex exchange so no confusion exists when knowing which currency one is trading from or into. The euro is the EUR and USD stands for the US dollar. The British pound is the GBP and JPY stands for the Japanese yen. If you are interested in contacting a broker and becoming involved in the forex markets you can locate several brokers online where you can check out the company’s profile and type of forex transactions ahead of throwing your money down the dra

Final standings at the Romanian Grand Prix 2009

Final standings at the Romanian Grand Prix 2009

Final standings at the Romanian Grand Prix 2009

01.09.2009, Bulbrokers


Dear Clients,

The Romanian Grand Prix 2009 trading contest already has finished. It was carried out during three month period of time. It was intended to current and prospective customers only from Romania.

The contest allowed traders and investors to win Bulbrokers’ three month competition award using wide variety of instruments - FX, CFD and Bulgarian Stock exchange listed stocks. During three month period there were intermediate monthly Stages. Top traders from every Stage were receive “check points” and real money prizes.

The final winner of the Romanian Grand Prix is the contestant who has gathered the biggest amount of points from the three stages. An Extra Prize is also given to the trader who has made the highest account balance from all the three stages in total. Implementing their strategies contestants were allowed to trade the following instruments:
• Currencies
• CFDs on stocks (listed at London Stock Exchange, Deutsche Boerse, Paris Stock Exchange, NYSE)
• CFDs on indiceres
• Cash stocks o
Stage Winners is designated traders with the highest account balances at the end of each contest stage (after contest completion all positions are closed at market rates prevailing at the end of trading).
Best trading strategies are awarded according our bonus schedule and Contest Terms and conditions.

Top ten traders with highest account balances at the end of each stage receive “check points” as follows:
1st place: 10 pts
2nd place: 9 pts
3rd place: 8 pts
4th place: 7 pts
5th place: 6 pts
6th place: 5 pts
7th place: 4 pts
8th place: 3 pts
9th place: 2 pts
10th place: 1 pt

After the end of the final third stage if there are traders who have the same amount of “check points”, the winner is the one who has made higher profit from all the three stages in total.
In order to receive bonuses winners are obligated to open real trading account (if they do not currently have) at Bulbrokers.

You will find the final standings at the Romanian Grand Prix 2009 Here.

Thank you!

We wish you a successful trade

XForex Aims to Shake up Online Currency Trading Industry With New Site

XForex Aims to Shake up Online Currency Trading Industry With New Site

Xforex, one of the world’s most trusted foreign exchange brokers, is taking their industry-leading customer service to a higher level with the re-launch of xforex.com.

The fresh design takes advantage of the latest technology to be clear, simple, and user friendly. It features a new trading platform, includes translation into 10 different languages and offers free video training courses for new traders, as well as webinars for advanced traders.

The popularity of educational videos made it an easy decision to re-build the site, a company director said:

“We want a light, intuitive method. There is nothing easier than learning with a live presentation. We know our customers will enjoy them and benefit from the valuable skills they teach.”

The all-new Xforex has also a highly advanced demo account feature: giving new traders the chance to try live trading without the risk. One of the user-friendly aspects of Xforex’s demo account and the live forex platform, is that they are both completely download free, meaning no slowing down your computer. Just log into xforex.com and you have the freedom to trade from any computer.

XForex continues to earn praise for its custom service. Every new trader is assigned a personal financial advisor -- someone with the experience and savvy who can teach new customers to trade profitably. The advisors speak many languages including French, German, Russian, Arabic, Turkish, Swedish, Spanish and Italian, amongst others; in order for customers to feel comfortable discussing trades or and seeking advice. All members can sign up also for a weekly newsletter, with tips, news and bonuses.

The new platform is sure to be a hit. It uses cutting-edge technology to offers dozens of currency pairs and the ability to trade commodities like silver and gold. It also has an exciting feature: a trader leader board that shows which members made the day’s best trade.

The all-new xforex.com also offers constant promotional bonuses that are available for new and existing customers.

“We know that when people are trading with their well earned money, they demand security, and want customer service that makes each trader comfortable and confident in his or her trading decisions. With XForex, customer service is paramount, and I am happy to say that I know we provide a service that unparalleled. And with our brand-new site we have some exciting new features we know traders will love and will use to help their trading results,” the director said.

Broker newsMerk Launches Absolute Return Currency Fund

Merk Launches Absolute Return Currency Fund

www.merkfund.com/about-us/press/2009-09-09.html

-- Mutual fund offers investors unique opportunity to add currency exposure to their portfolios --

PALO ALTO, Calif. - September 9, 2009 - Merk Investments today announced the launch of the Merk Absolute Return Currency Fund™. The no-load mutual fund seeks to generate positive absolute returns by investing in currencies. A pure play on currencies, the Fund aims to profit regardless of the direction of the U.S. dollar or traditional asset classes.

“The financial crisis has been a stark reminder that true diversification may only be achieved when investors look beyond traditional asset classes. With the Merk Absolute Return Currency Fund™, Merk is offering investors a unique opportunity to add managed currency exposure to their portfolios” said Axel Merk, president and CIO of Merk Investments.

Co-portfolio manager Kieran Osborne added: “The Fund offers investors access to an absolute return strategy – a natural addition to the existing Merk Mutual Funds. In so doing, Merk Investments is continuing its tradition of managing transparent no-load currency mutual funds that typically do not employ leverage.”

Currency exposure allocations for the Fund will be determined based on quantitative and qualitative analysis. “At Merk Investments, we believe sustainable wealth is built over the long term, with superior insights, clear focus and commitment. We strive to invest with discipline while adapting to changing environments,” explained Mr. Merk.
For more information about the Merk Absolute Return Currency Fund, please visit www.merkfund.com.

About Merk Investments and the Merk Mutual Funds

The Merk Absolute Return Currency Fund™ is managed by Merk Investments, the Authority on Currencies™, a pioneer in the currency asset class. Merk Investments is a Palo Alto, California based SEC registered investment advisory firm.
The Merk Mutual Funds are a suite of transparent no-load currency mutual funds that do not typically employ leverage, consisting of: the Merk Hard Currency Fund™ (MERKX), the Merk Asian Currency Fund™ (MEAFX), and the Merk Absolute Return Currency Fund™ (CUSIP 34984T592). The Merk Mutual Funds provide investors with the opportunity to add managed currency exposure to their portfolios, which may provide valuable diversification benefits.

The Merk Absolute Return Currency Fund is managed by Axel Merk and Kieran Osborne.
nvestments. Mr. Merk founded Merk Investments in Switzerland in 1994; in 2001 he relocated the business to the U.S.

Kieran Osborne joined Merk Investments in January 2009. Mr. Osborne is considered an expert on macro trends and currencies and has significant international market experience.

As with any mutual fund product, there is no guarantee that the fund will achieve its goals. Investors should consider the investment objectives, risks and charges and expenses of the Fund carefully before investing. This and other information is in the prospectus, a copy of which may be obtained by visiting the Fund's website at www.merkfund.com or calling 866-MERK FUND. Please read the prospectus carefully before you invest.

The Fund's principal investment risks include, but are not limited to, currency exchange rate risk, foreign instrument risk and interest rate risk. For a more complete discussion of these risks please refer to the Fund's prospectus. Foreside Fund Services, LLC, distributo

FED FOCUS-Fed may shun "gradualist" rate hike pace

By Kristina Cooke

NEW YORK, Sept 13 (Reuters) - The last time the Federal Reserve was raising interest rates, it did so at a snail's pace. But it may not take that gradual approach to tightening policy the next time around.

Fed officials are stressing there will be no exit from the U.S. central bank's extraordinarily accommodative interest-rate stance for an "extended period" and analysts do not expect the first rate hike until 2010 or 2011.

The U.S. central bank slashed its benchmarovernight borrowing costs close to zero last December as part of an emergency rescue of the U.S. economy that included a raft of extraordinary lending and purchase programs, such as buying mortgage-related debt.

Fed watchers say it would be able to keep its low-rate pledge more easily if it were perceived as ready to move up quickly when it finally does begin to tighten.

In its last rate-raising cycle from mid-2004 to mid-2006, the Fed increased the overnight federal funds rate by a slim quarter point at each of 17 consecutive meetings.

This deliberate policy, known as "gradualism,Bernanke, now the central bank's chairman, discussed reasons for gradualism, as well as an alternative, which he called the "cold turkey" approach.

Many economists believe the decision to raise rates at a "measured" pace after a long period in which they were unusually low kept monetary policy too easy for too long, fueling the housing bubble that led to the current crisis.

Chicago Federal Reserve Bank President Charles Evans said last week that the pace of tightening was "perhaps a little too measured."

The Fed would want be more aggressive next time, he said.

"We are probably in a period where gradualism is less important than getting to the right stance in policy," Evans said.

To be sure, the first hike won't mean policy has suddenly become restrictive. With rates currently near zero, it would simply start taking them to a more normal base.

Indeed, the Fed may not turn aggressive until it is clear the economy needs more restraint.

"Once they decide it's time to go for broke, it's unlikely you'll see the baby steps you saw in 2004 to 2006," said Mark Gertler, a professor at New York University and a visiting scholar at the New York Federal Reserve Bank.

Interest rate futures markets, however, are pricing in a relatively gradual approach to rate hikes. While the first increase fully priced in is a relatively large half-point move in June 2010, the market sees rates up to only about 1.25 percent by the end of the year.

Of course, any decision to raise rates will depend greatly on how the economic recovery plays out.

Fed officials have warned that the recovery will be slow and tentative. At the annual Fed conference in Jackson Hole, Wyoming, officials from both the Fed and the European Central Bank stressed they were in no rush to exit their accommodative policies.

Of course, raising interest rates is not the only way the Fed could begin to withdraw its economic supports.

Reversing some of its unorthodox lending and purchasing measures would be another way for the central bank to start moving policy back toward a more neutral stance.

News -Trade Desk Thoughts: September Blow-Out Top

As has been previously reported in recent LFB headlines, the month of September equity trade is 50/50 at best in regard to ending in the green. “The Stock Market handbook goes back to the time that dirt was young, and records September as a poor month in equities” TheLFB Trade Team said. “$1000 invested just in September since 1919 was worth $800 in the year 2000, and interestingly, the first week or so is not so bad, it is weeks three and four that have done the damage” they added.

At this time the Japanese fiscal half year-ends, (September is the final month of Japan’s fiscal first half), and is when Japanese corporations have accounting incentives to repatriate funds back to Japan from overseas investment. This is also the time of year that the U.S. Mutual Fund year end on October 31^st comes into focus. “Outside of historical trends, we start to see reasons behind the pattern of trade” TheLFB Trade team said.

“The fact that we go into September at yearly highs may help in regard to forward momentum, but the moment greed is replaced with fear of loss, the automated sell button tends to get jammed down.”

There is nothing that a 95% automated trading environment likes more than to overshoot a target, just for good measure, and with liquidity still being kept in very tight circles, there is a high probability chance that a blow-out reversal day is coming. “Hopefully it will be a one-off, and things quickly stabilize.” They added.

The dollar index is extremely oversold, on most time-frames, and the near-term sentiment and momentum reads on the S&P futures, oil, and gold markets are all signaling a blow-out top could be here. If so, Aud/Usd looks vulnerable, as does Gbp/Usd; one due to interest rate differentials losing their appeal in times of risk aversion, the other due to a complete lack of forward economic clarity from the U.K. administration.

Reuters World News Highlights at 1400 GMT, Sep 13

WASHINGTON - Even before President Barack Obama decides to send more combat troops to Afghanistan, many members of his own party are resisting it, with experts saying the president must do a better job to sell his plans.

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TEHRAN - Iran said on Saturday it would not back down in its nuclear row with the West, a day after the United States said it would accept Tehran's offer of wide-ranging talks with six world powers.

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JERUSALEM - Israeli Prime Minister Benjamin Netanyahu said on Sunday there were still gaps to bridge in talks with a visiting U.S. envoy seeking a settlement freeze and the revival of Israeli-Palestinian negotiations.

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HARARE - The first high-level European Union delegation to visit Zimbabwe in seven years said on Sunday relations with the country were entering a "new phase" but full cooperation hinged on the implementation of a power-sharing deal.

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CARACAS - A strong 6.4 magnitude earthquake shook major oil exporter Venezuela on Saturday, causing panic in the capital, Caracas, and injuring at least seven people when houses in the countryside collapsed.

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KAMPALA - The response by Ugandan police to rioting in the capital Kampala last week was "completely unwarranted", an influential rights group said.

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TURKMENBASHI - Russian and Turkmen leaders failed on Sunday to set a timeframe for the return of Turkmen gas flows to Russia, halted since April after a pipeline blast which left the central Asian nation short of revenues.

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ALMATY - A fire at a clinic for drug addicts in the southeastern Kazakh city of Taldykorgan killed 38 people on Sunday, the Central Asian state's government said.

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TEL AVIV - Israeli President Shimon Peres was discharged from hospital on Sunday with a clean bill of health, a day after the 86-year-old Nobel peace laureate passed out briefly at a ceremony.

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MINNEAPOLIS - President Barack Obama warned Americans on Saturday not to be tricked by "scare tactics" he accused his opponents of using as he went on the road to rally support for his drive to overhaul the U.S. healthcare system.

Forex for Dummies

Forex Basics
If you've already read the "What is Forex?" section then you should know what Forex market is and what it is all about. If not, please, do it. There are five essential aspects of foreign currency market a beginner trader (and an old one as well) should be aware of:
Forex Fundamental Analysis
Forex Technical Analysis
Money Management
Forex Trading Psychology
Forex Brokerage
Understanding and mastering these sides of trading are crucial to organize your Forex trading experience.
Forex Fundamental Analysis
Fundamental analysis is the process of market analysis which is done regarding only "real" events and macroeconomic data which is related to the traded currencies. Fundamental analysis is used not only in Forex but can be a part of any financial planning or forecasting. Concepts that are part of Forex fundamental analysis: overnight interest rates, central banks meetings and decisions, any macroeconomic news, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making Forex market forecasts. In theory, it alone should work perfectly, but in practice it is often used in pair with technical analysis. Recommended e-books on Forex fundamental analysis:

Forex Technical Analysis
Technical analysis is the process of market analysis that relies only on market data numbers - quotes, charts, simple and complex indicators, volume of supply and demand, past market data, etc. The main idea behind Forex technical analysis is the postulate of functional dependence of the future market technical data on the past market technical data. As well as with fundamental analysis, technical analysis is believed to be self-sufficient and you can use only it to successfully trade Forex. In practice, both analysis methods are used. Recommended e-books on Forex fundamental analysis are:

Money Management in Forex
Even if you master every possible method of market analysis and will make very accurate predictions for future Forex market behavior, you won't make any money without a proper money management strategy. Money management in Forex (as well as in other financial markets) is a complex set of rules which you develop to fit your own trading style and amount of money you have for trading. Money management play very important role in getting profits out of Forex; do not underestimate it. To get more information on money management you can read these books:

Forex Trading Psychology
While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex traders, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being a professional Forex trader:
Your greed
Overtrading
Lack of discipline
Lack of confidence
Blind following others' forecasts
These are very professional books on psychology written specially for financial traders:
Forex Brokerage
Every Forex trader like any other professional needs tools to trade. One of these tools, which is vital to be in market, is a Forex broker and specifically for Internet - on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market. While choosing a right Forex broker things to look for are the following:
Being a professional company you can trust
Provide you with real-time quotes
Execute your orders fast and accurately
Don't take a lot of commissions
Support the withdraw/deposit methods that you can use
For beginning Forex traders I recommend these four brokerage companies that are probably the best Forex brokers to start with:
— one of the most popular and progressive brokers with MetaTrader platform and comfortable trading conditions for all kind of traders.
— a reputable MetaTrader 4 brokers, allows Islamic Forex trading accounts, while you can deposit and withdraw money via WebMoney.
— good because you can start trading Forex with as little as 10$, use MetaTrader 4 platform and the dozoen of various deposit and withdraw methods, including , e-Bullion and wire transfer.
x — broker that supports MetaTrader 4 Forex trading platform and doesn't require a lot of money to start with.

What is forex !!

What is Forex?
FOREX - the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.
Some of in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.
In the foreign exchange market there is little or no 'inside information'. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time.
Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX currency is expressed. For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.
Unlike stocks and futures exchange, foreign exchange is indeed an interbank, over-the-counter (OTC) market which means there is no single universal exchange for specific currency pair. The foreign exchange market operates 24 hours per day throughout the week between individuals with forex brokers, brokers with banks, and banks with banks. If the European session is ended the Asian session or US session will start, so all world currencies can be continually in trade. Traders can react to news when it breaks, rather than waiting for the market to open, as is the case with most other markets.
Average daily international foreign exchange trading volume was $1.9 trillion in April 2004 according to the BIS study.
Like any market there is a bid/offer spread (difference between buying price and selling price). On major currency crosses, the difference between the price at which a market maker will sell ("ask", or "offer") to a wholesale customer and the price at which the same market-maker will buy ("bid") from the same wholesale customer is minimal, usually only 1 or 2 pips. In the EUR/USD price of 1.4238 a pip would be the '8' at the end. So the bid/ask quote of EUR/USD might be 1.4238/1.4239. This, of course, does not apply to retail customers. Most individual currency speculators will trade using a broker which will typically have a spread marked up to say 3-20 pips (so in our example 1.4237/1.4239 or 1.423/1.425). The broker will give their clients often huge amounts of margin, thereby facilitating clients spending more money on the bid/ask spread. The brokers are not regulated by the U.S. Securities and Exchange Commission (since they do not sell securities), so thy are not bound by the same margin limits as stock brokerages. They do not typically charge margin interest, however since currency trades must be settled in 2 days, they will "resettle" open positions (again collecting the bid/ask spread).
Individual currency speculators can work during the day and trade in the evenings, taking advantage of the market's 24 hours long trading day

What is Forex

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers. Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets. MG Financial, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's Dealstration™ allows them to participate in FOREX trading by providing a combination of live quotes, real time chart, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis