There really isn't one best Forex trading system that works for everyone. There are many great Forex trading strategies and Forex trading systems but to say there's only one, would not be true.
Each Forex trading system can be as individual as the person using it. One currency exchange trader will find a trading system that works perfectly for them and another Forex trader won't think it's worth the paper it's printed on. If you know something about trading in the Forex market, you know there are certain times of the day your should trade specific currency pairs to increase your odds of making winning trades. Trading off-hours, using the best Forex trading system could be the difference between winning and losing. Try to stay out of the market during the slow times as well.
Experienced Forex traders know the best times to trade in the Forex market. The best times are between the hours of 2AM and 11AM EST. At 2AM EST the European markets are just starting to open and at 3AM EST the London session starts to begin. At 7AM to 8AM EST the New York session start to come alive. At 8:30AM EST there are many news releases (mostly US ones) that can cause market to move. This is when price can move in a big way. These are the times most Forex trader love and this is where the money is made, and lost. The London session starts to close around 11:00am EST and the Forex market tends to slow down until the Asian market start up again around 7PM EST. Then everything starts all over again for the next day. That's why a good Forex trading system is so important to a Forex trader.
To make the most of a Forex trading system, you need one Forex trading strategy for trading at news times and another one to trade for the other times. A good trading strategy for trading the news is to do your homework beforehand. Know what the key news releases are for the day and find out what the consensus numbers are for each news report. There are many Forex news web sites, so I suggest looking at no less than 3 news sites to make sure the consensus numbers are close to each other. Sometimes Forex news websites get the wrong numbers, so doing your homework early, you will easily know if the consensus numbers are on the mark or not. At news release time, what you are looking for are the numbers with a shock value. Numbers that do not meet expectations but exceed or fall shot of the expected numbers. These are the news events to trade. You want to know beforehand what these shock value numbers are, and take action when they get released.
When news is out of the way for the day or it's a very slow news day, that's when you must have a Forex technical trading system. Forex technical trading is when you use forex charts and price action. Forex chart patterns, trendlines (trendline analysis), Fibonacci (Fibonacci numbers/Fibonacci studies) and a many other Forex trading tools can be used for analysis. Just remember to keep it simple. Do not go crazy with the number of tools you decide to use. I recommend picking two or three and work with them at all times. Give each one at least a months time to decide if it's working for you before you move on to another one. Some folks may find they don't like using Fib retracements for example, while other traders like myself, couldn't imagine trading Forex without them. All Forex traders are different so you need to find the best tools and Forex trading systems that work best for you.
There are lots of fantastic online Forex training web sites available to you today and most are free. You should read all you can about Foreign currency trading before jumping in to it. Forex trading is a great business and like any new profession, it takes a lot of time to learn and do it right. Just take your time and remember to get the best Forex trading system that works for you and stay with it.
Monday, September 17, 2007
The Top Forex Trading Systems
How to Avoid Losing Money In FOREX-45 tips
45 Ways to Avoid Losing Money Trading FOREX, by Jimmy Young
1) Knowledge Deficiency – Most new FOREX traders don’t take the time to learn what drives currency rates (primarily fundamentals). When news or a statement is due out they must close out their positions and sit out the best trading opportunities. They are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.
2) Overtrading - I believe that Currency trading often with tight stops and tiny profit targets will benefit the broker. The desire to “just” make a few hundred dollars a day by locking in tiny profits whenever possible is a losing strategy.
3) Over leveraged - Leverage is a two way street. It can magnify losses as well as gains. Traders should employ a level of leverage that is in-line with their risk tolerance.
4) Relying on Others – Real traders play a lone hand; they make their own decisions and don’t rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.
5) Stop Losses – Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade commit to a reasonable stop loss limit that allows your trade a fair chance to develop.
6) Demo Accounts – Broker demo accounts are a shill game of sorts; they’re not as time sensitive as real accounts and therefore give the impression that time sensitive trading systems, such as short-term moving average crossovers can be consistently profitably traded; once you start dealing with real money reality is quick to set in.
7) Trading During Off Hours – Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours – stay out.
8) Trading a Currency, Not a Pair – Being right about a currency is half a trade; success or failure depends upon being right about the second currency that makes up the pair.
9) No Trading Plan - Make money is not a currency trading plan. A trading plan is a blueprint for trading success; it spells out what you see your edge as being; if you don’t have an edge, you don’t have a plan, and likely you’ll wind up a statistic (part of the 95% of new traders that lose and quit).
10) Trading Against Prevailing Trend – There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you’re trading against the trend.
11) Exiting Trades Poorly – If you put on a trade and it’s not working make sure you exit properly; don’t compound the damage. If you’re in a winning trade don’t talk yourself out of the position because you’re bored or want to relieve stress; stress is a natural part of trading; get use to it.
12) Trading Too Short-term – If you’re profit target is less than 20 points don’t do the trade; the spread you pay to enter the trade makes the odds way against you when you go for these tiny profits.
13) Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and you’re results will improve.
14) Being Too Smart – The most successful traders I know are high school graduates. They keep it simple and don’t look beyond the obvious; their results are excellent.
15) Not Trading Around News Time – Most of the big moves occur around news time. The volume is high and the moves are real; I believe there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when Bank traders rule the market with their customer order flow.
16) Ignore Technical Condition – Determining whether the market is over-extended long or over-extended short is a key determinant of near time price action. Spike moves often occur when the market is all one way.
17) Emotional Trading – When you don’t pre-plan you’re trades essentially it’s a thought and not an idea; thoughts are emotions and a very poor basis for doing trades. Do people generally say intelligent things when they are upset and emotional; I don’t think so.
18) Lack of Confidence – Confidence only comes from successful trading. If you lose money early in your trading career it’s very difficult to gain true confidence; the trick is don’t go off half-cocked; learn the business before you trade.
19) Lack of Courage to Take a Loss – There is nothing macho or gutsy about riding a loss, just stupidity and cowardice. It takes guts to accept your loss and wait for tomorrow to try again. Getting married to a bad position ruins lots of traders. The thing to remember is the market does crazy things often so don’t get married to any one trade; it’s just a trade. One good trade will not make you a trading success; rather it’s monthly and annual performance that defines a good trader.
20) Not Focusing on the Trade at Hand – There is no room for fantasizing in successful trading. Counting up and mentally spending profits you haven’t made yet is mental masturbation and does you no good. Same with worrying about a loss that hasn’t happened yet. Focus on your position and have a reasonable stop loss in place at the time you do the trade. Then be like an astronaut – sit back and enjoy the ride; no sense worrying because you have no real control; the market will do what it wants to do.
21) Interpreting FOREX News Incorrectly – Fact is the press only has a very superficial understanding of the news they are reporting and tend to focus on one element and miss the point. Learn to read the source documents and understand it for real.
22) Lucky or Good – Your account balance changes don’t tell you the whole story about your trading; fact is if your taking a lot of risk and making money you will eventually crash and burn. Look at the individual trade details; focus on your big loses and losing streaks. Ask yourself this; if I had a couple of consecutive losing streaks or a couple of consecutive big loses, how would my account balance look. Generally, traders making money without big daily loses have the best chance of sustaining positive performance. The others are accidents waiting to happen.
23) Too Many Charity Trades – When you make money on a well thought out trade don’t give back half on a whim; invest your profits from good trades on the next good trade.
24) Courage Under Fire – When a policeman breaks down the door to a drug dealers apartment he is scared but he does it anyway. When a fireman climbs onto the roof of a burning building he is scared but does it anyway; and gets the job done. Same with trading; it’s ok to be scared but you have to pull the trigger; no trigger – no trades – no profits – no trader.
25) Quality Trading Time – I suggest 3 hours a day of quality, focused trading time; that’s about all your brain allows. When your trading being 100% focused; half way is bullshit’ it doesn’t work. Don’t even think that time spent in front of the computer watching the rates has any correlation to profitability; it doesn’t. Spend less time but when your trading be 100% focused on trading.
26) Rationalizing – Killer. Absolute Killer. Put your trade on and let it run. If it hits your reasonable pre-determined stop your out. Think of yourself as a prizefighter; you just got knocked out. Moving your stop is like getting up after being crushed with a knockout blow; it’s pointless; things will only get worse. Don’t ignore the obvious; your wrong – get out. Come back the next day and try again. A small loss will not hurt you; a catastrophic loss will.
27) Mixing Apples and Oranges – Have you ever done this; you see the EURUSD trading higher so you buy GBPUSD because it “hasn’t moved yet”. That’s a mistake. Most of the time the reason the GBPUSD hasn’t moved yet is because its already overbought or some 4:30am UK news was bearish. Don’t mix apples and oranges; if EURUSD looks bid buy EURUSD.
28) Avoiding the Hard Trades – Bank FX traders have an axiom; the harder the trade is to do the better the trade. This I learned from experience; when I needed to buy EURUSD and it was hard to get them that’s when it’s necessary to pay up and get the business done. When it’s easy to get them then sit back and wait for better levels. So if your trying to get into a trade or more importantly get out of a trade don’t putz around for a few points; get your business done.
29) Too Much Detail – If your trading more than 2 indicators then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.
30) Giving Up Too Easy – Your first trade of the day may not be your best but certainly it’s no reason to quit. I have a preset daily trading limit and I use it; you can’t make money by making excuses; getting trades wrong is natural and should be expected.
31) Jumping the Gun – Don’t be penny wise and dollar foolish; wait for your trade signal to be clear; put on your trade and give it a decent size stop loss so that you don’t get knocked out by random noise. Do trades don’t’ buy lottery tickets (extremely tight stops).
32) Afraid to Take a Loss - trading is not personal; it’s business. Don’t think that a poor trade is a reflection on you. It could be your just ahead of your time or a commercial order hits the market and temporarily creates a small unexpected move. Again, place your stop beforehand and NEVER increase your pre-determined risk; if it’s going bad it will probably get worse; I think that’s Einstein “in motion stays in motion…”
33) Over-Relying on Risk Reward – If you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose; actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose or up 63 you win; 17/63 is close to 4-1).
34) Trading for Wrong Reasons – Because the EURUSD is going up is not in itself a reason to buy. Buying EURUSD because its not moving so little risk is even worse; you’re paying the toll (spread) without even a hint that you will get a directional move. If your bored don’t trade; the reason your bored is there is no trade to do in the first place.
35) Rumors – Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor; if EURUSD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trades determine where in the motion you are entering.
36) Trading Short-term Moving Average Crossovers – This is the money sucker of the century. When the shorter term moving average cross the longer term moving average it only means that the average price in the short run is equal to the average price in the longer run. For the life of me I cannot understand why this is bullish or bearish. Easy to set up on software, complete with lights, bells and whistles, and good for the seller getting thousands for the software but in terms of creating profit it’s a zero.
37) Stochastic – Another money sucker. Personally I think this indicator is used backwards; when it first signals an overdone condition that’s when I think the big spike in the “overdone” currency pair occurs. To be overbought means strong and oversold means weak. Try buying on the first sign of overbought and selling on the first sign of oversold; you’ll be with the trend and likely have identified a move with plenty of juice left. So if %k and %d are both crossing 80; buy! (Same on sell side; sell at 20)
38) Wrong Broker – A lot of FOREX brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.
39) Simulated Results – Watch out for “black box” systems; these are trading systems that don’t divulge how the trade signals are generated. Great majority of them are absolute garbage. They show you a track record of extraordinary results but think about it; if you could build a trading system with half a dozen filters using the benefit of hindsight, couldn’t you too come up with a great system. Of course going forward is an entirely different story. High-speed number crunching capabilities allows for building great hindsight trading systems; BEWARE.
40) Inconsistency – Every business (FOREX trading included) requires a business plan (trading plan). Unless you have taken the time to write down a set of rules that you can and will follow, it’s likely your trading will remain unfocused and directionless. Make a plan, have rules, follow them set goals that are realistic and you will achieve them.
41) Master of None – Focus on one currency for technical trading; each currency has a unique way of trading and unless you get intimate with it you will never truly understand its underlying idiosyncrasies. Don’t spread yourself too thin – focus – master one currency at a time.
42) Thinking Long Term – Don’t do it. Stay in the moment. Especially if you’re a day trader. It doesn’t matter what happens next week or next month, if your trading with 30 to 50 point stops restrict your thought process to what’s happening right now. That is not to stay the long-term trend is not important; it is to say the long-term trend will not always help you when your trading a significantly shorter time frame.
43) Overconfidence – Trading is not easy; statistics show 95% failure rate. If your doing well don’t take your success for granted; always be on the lookout for ways to improve what you’re doing.
44) Getting Pumped Up – The trick is to maintain an even keel; when you are in a trade you want to think exactly as you would if you didn’t have a trade on. To do this requires a relaxed disposition; this is not a football game; don’t get psyched up; relax and try to enjoy it.
45) Staying in the Game – I don’t recommend demo trading because traders learn bad habits when trading with play money. I also don’t think “letting it all hang out” right away is wise either. Start off doing trades and taking risk that is relatively small but still makes a difference to you if you win or lose; about a quarter to a third of what you expect to reach as your trading matures is reasonable.
Elements of a Successful Forex Trade
Courage Under Stressful Conditions When the Outcome is Uncertain
by Jimmy Young of EURUSDTrader
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say that the simple task of hitting the buy or sell key is extremely difficult to do when your own real money is put at risk.
You will feel anxiety, even fear. Here lies the moment of truth. Do you have the courage to be afraid and act anyway? When a fireman runs into a burning building I assume he is afraid but he does it anyway and achieves the desired result. Unless you can overcome or accept your fear and do it anyway, you will not be a successful forex trader.
However, once you learn to control your fear, it gets easier and easier and in time there is no fear. The opposite reaction can become an issue – you’re overconfident and not focused enough on the risk you're taking.
Start by analyzing yourself. Are you the type of person that can control their emotions and flawlessly execute trades, oftentimes under extremely stressful conditions? Are you the type of person who’s overconfident and prone to take more risk than they should? Before your first real trade you need to look inside yourself and get the answers. We believe we can help you correct deficiencies before they result in paralysis (not pulling the trigger) or a huge loss (overconfidence). A huge loss can prematurely end your trading career, or prolong your success until you can raise additional capital.
Both the inability to initiate a trade, or close a losing trade can create serious psychological issues for a trader going forward. By calling attention to these potential stumbling blocks beforehand, you can properly prepare prior to your first real trade and develop good trading habits from day one.
The difficulty doesn’t end with “pulling the trigger”. In fact what comes next is equally or perhaps more difficult. Once you are in the trade the next hurdle is staying in the trade. When trading foreign exchange you exit the trade as soon as possible after entry when it is not working. Most people who have been successful in non-trading ventures find this concept difficult to implement.
For example, real estate tycoons make their fortune riding out the bad times and selling during the boom periods. The problem with trying to adapt a 'hold on until it comes back' strategy in foreign exchange is that most of the time the currencies are in long-term persistent, directional trends and your equity will be wiped out before the currency comes back.
The other side of the coin is staying in a trade that is working. The most common pitfall is closing out a winning position without a valid reason. Once again, fear is the culprit. Your subconscious demons will be scaring you non-stop with questions like “what if news comes out and you wind up with a loss”. The reality is if news comes out in a currency that is going up, the news has a higher probability of being positive than negative (more on why that is so in a later article).
So your fear is just a baseless annoyance. Don’t try and fight the fear. Accept it. Have a laugh about it and then move on to the task at hand, which is determining an exit strategy based on actual price movement. As Garth says in Waynesworld “Live in the now man”. Worrying about what could be is irrational. Studying your chart and determining an objective exit point is reality based and rational.
Another common pitfall is closing a winning position because you are bored with it; its not moving. In Football, after a star running back breaks free for a 50-yard gain, he comes out of the game temporarily for a breather. When he reenters the game he is a serious threat to gain more yards – this is indisputable. So when your position takes a breather after a winning move, the next likely event is further gains – so why close it?
If you can be courageous under fire and strategically patient, foreign exchange trading may be for you. If you’re a natural gunslinger and reckless you will need to tone your act down a notch or two and we can help you make the necessary adjustments. If putting your money at risk makes you a nervous wreck its because you lack the knowledge base to be confident in your decision making.
Patience to Gain Knowledge through Study and Focus
Many new traders believe all you need to profitably trade foreign currencies are charts, technical indicators and a small bankroll. Most of them blow up (lose all their money) within a few weeks or months; some are initially successful and it takes as long as a year before they blow up. A tiny minority with good money management skills, patience, and a market niche go on to be successful traders. Armed with charts, technical indicators, and a small bankroll, the chance of succeeding is probably 500 to 1. It's also good to know how currencies relate to each other. There are tools like the universal currency converter that make it easy to do this for you.
To increase your chances of success to near certainty requires knowledge; acquiring knowledge takes hard work, study, dedication and focus. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon.
High Probability Trading in the Forex Market
Traders with limited experience who trade the foreign currency market, begin to realize that we are not trying to capture every possible market move. We want to better our odds and reduce our frustration by targeting high-probability trades. We need to understand these forex trading strategies when analyzing Forex charts when trading the Forex market.
With the use of trendlines and Fibonacci techniques, they can provide powerful signals for higher probability trading. We already know that trendlines (trendline analysis) have some validity, and so do Fibonacci studies. We need to combine these two, to improve our chances.
The charts below are the USD/GBP (British Pound). The daily chart is of October 5, 2005. I drew a red downsloping trendline connecting the two recent swing highs.
Price has moved down on the chart since early September , making a downtrend of consecutive waves with lower swing highs and lower swing lows. There were several opportunities to take advantage of this move down. In this tutorial we will focus on the opportunity we had on October 6.
In a downtrend we want to sell short the swing highs, and take profits on swing lows. We really don't want to short every time we think we have a swing high. If you have tried that, you know about the whipsaws and fakeouts already. We only want the best trades, those which are more likely to be successful. So how do we decide what an optimum entry point would be?
Our odds are greatly improved if we have a swing high near a downsloping trendline (red on the chart). The market tend to reverse at certain Fibonacci levels. These are known as Fibonacci Retracements. So if you have a significant resistance level close to a trendline, we have an even better chance of successful trade.
The next chart shows the British Pound with Fib resistance levels. Notice the Resistance level. This is an area of significant resistance, with a higher probability of a price reversal. If you are new to Fibonacci studies and retracements, those studies may look like a confusing set of colored lines on the chart. Learning how to properly use these Fibonacci studies, and which of them are stronger, or higher probability, is not that difficult! There are two video seminars that explain this in FibMaster.
That Resistance level, in addition to a trendline is an optimum price shorting zone. If the market reaches that area, and if the market resists at that price point, we want to take a short position or sell short this currency pair. Once the resistance materializes, it will be hard for the market to move against us.
Most traders do not trade the daily chart, but we can use the longer-term charts to find powerful trends and Fibonacci levels. The next chart is a 60-minute chart. I choose 60-minutes because it clearly shows when resistance has materialized. You may prefer to use a 30 minute chart or a 5 minute chart. Remember to always be looking for support and resistance lines when working with Forex charts and your Forex chart analysis.
The 60-minute chart below shows how the GBP rallied to the resistance level, and the trend-line. It rallied over those, then tested them briefly, then retreated. There are many ways to determine whether resistance has materialized. There are some very powerful techniques for that purpose. However we want this tutorial to focus on some of the basics. For now we will focus on the obvious breaking of the rising trend as our trigger.
During that upward rally, the 60 minute chart has a number of higher swing highs and higher swing lows. Once we broke the highest swing low (the last bar on the above chart), we know that uptrend has completed its run. So we want to start selling short the rallies and take profits on dips as shown on the next chart 60 minute chart below.
Notice how the market headed down and never looked back! That is what happens when you combine trendlines with Fibonacci techniques. The best trades go your way and keep going in your direction. That's a characteristic of high probability trading.
If this tutorial makes sense to you, you should take your trading to the next level. Use these powerful techniques to your trading advantage and watch some video seminars at FibMaster.
Candlesticks Technique
By the Tradecision Development Team
Just like a vast number of mind-boggling and revolutionary inventions, Candlesticks originate from Japan, where they were initially used by rice traders yet in the 17-th century. This gives the technique an air of Oriental charm, invoking associations with precision, technical eminence, and some innate, hidden ancient wisdom. Candlesticks were first introduced as a technical analysis technique by Steven Nison in his acclaimed book Japanese Candlestick Charting Techniques. Did the guy do the right thing? We think he did, but let’s try to answer this question at a greater depth.
To create a candlestick pattern, you need a data set that will contain an open, a high, a low, and a close. A candlestick is formed by a “body” and two “tails” that grow out of this body. The four milestone points, passed by every trade, are located as follows:
In this pattern, the tails represent the whole range of prices, used during the trade, whilst the body represents the opening and closing prices for the selected period. If the closing price is higher than the opening one, the body will be colored blue or green; when the opposite is the case, the body will be colored red.
Basically, the Candlesticks pattern provides exactly the kind of information that you can observe on about any other kind of chart. The thing is definitely a lot more pleasant to look at than most of the other types of charts, but what’s the big deal in terms of its usefulness?
The most powerful advantage that this technique can give is, undoubtedly, the easily discernible respective relationship between the four points that make up the pattern. One look is enough to size up the underlying price action in terms of the two key relationships.
But, the most important advantage, offered by Candlesticks, is that there are a number of sure (well, most of the time, you know) signs of a market development occurring that no other technique can offer. So what is this bag of tricks?
For example, if the body of your candlestick is green and rather prolonged, this means that buyers are very active - a definitely bullish sign. Conversely, a long red candlestick body will be a sure bearish sign.
Another useful sign, offered by the Candlesticks technique is Doji – the situation, when the opening and closing prices coincide. The so called Dragonfly variation of Doji, whereby the prices coincide at the top of the trading range, serves as a sign of trend reversal and a forthcoming upward advance.
An equally useful sign is the so called Piercing Line, whereby the closing price point of the green bar is just slightly higher than the middle of the preceding red candlestick. This situation signals a forthcoming reversal of a downward trend.
The technique offers several more eloquently referred to pattern variations, whose names sound like the names of some mortally dangerous jab or a bizarre and potentially lethal posture from an Oriental martial system. But are these tricks really as dependable as the great ancient fighting legacy of the Orient?
Of course, the technique is not infallible and just like any other trading method is a bit on the dodgy side. One of the main drawbacks of the technique is that despite it clearly shows the relationship between the opening and closing prices, it does not allow seeing how volatile the price action actually was during the different stages of the trade. Actually, some significantly different scenarios can be possible.
All told, a great many traders reckon candlesticks to be the primary trading method in technical analysis. Our opinion would be that although Candlesticks are, certainly, a lot more reliable than most of the other technical analysis methods, one shouldn’t still rely entirely on this single method.
The Best Forex Trading System
Let me first say there isn't one best Forex trading system that works for everyone. There are lots of great Forex trading strategies and Forex trading systems but to say there's only one, would not be a true statement.
Forex trading systems can be as individual as the person using the system. One Forex trader will find a trading system that works perfectly for them and another currency exchange trader will say it's not worth the paper it's printed on. If you know anything about trading in the foreign exchange market, you know there are certain times of the day to trade specific Forex currency pairs to increase your odds of making a winning trade. Trading off hours, using the best Forex trading system could be a losing strategy. Try to stay out of the market during the slow times.
Every experienced Forex trader knows the best times to trade in the Forex market. The most active times are between the hours of 2:00am and 11:00am EST. At 2:00am EST the European markets are starting to open and at 3:00am EST the London session starts to kick in. At 7:00am to 8:00am EST the New Your sessions start to come alive. At 8:30am EST there are many news releases (mostly USD) that can cause market volatility. This is when the market moves and can move big. These are the times most Forex trader love and this is where the money is made, and lost. The London session starts to close around 11:00am EST and the Forex market tends to slow down until the Asian market start up again around 7:00pm EST. And everything starts all over again for the next trading day. That's why a Forex trading system is so important to every Forex trader.
To make the most out of any Forex trading system, you need to have one Forex trading strategy for trading at news times and another one to trade during the rest of the day. A good strategy for trading the news in the Forex market is to do your homework up front. Know what key news releases are coming out and find out what the consensus numbers are for each report. There are many different Forex news sites, so I recommend looking at no less than 3 news sites to make sure the consensus numbers are the same or very close to each other. Sometimes Forex news sites get the numbers wrong, so doing your homework up front, you will quickly know if the forecast numbers are on the mark or not. At news release time, what you're looking for are numbers with a shock value associated with them. Numbers that do not meet the consensus but exceed or fall far shot of expectations. These are the news events you want to trade. You need to know beforehand what these shock value numbers are, and take action when they're released.
When news is out of the way or it's a very slow news day, that's when you need a Technical Forex trading system. Forex technical trading is when you use charts and price action. Tools such as Forex chart patterns, trendlines (trendline analysis), Fibonacci (Fibonacci numbers/Fibonacci studies) and a host of other Forex trading tools can be used. The best advice I can give here is to keep it simple. Do not go overboard with the tools you decide to use. I suggest picking two or three at the most and work with them at all times. Give each one at least a months time to decide if it's working for you before you decide to move on to another. Some folks may find they don't like using Fibonacci retracements for example, while other traders like myself, couldn't imagine not using them. Forex traders are all different so you need to find the tools and Forex trading system that's right for you.
There are lots of great online Forex training websites available today and most are free. Read all you can about Forex trading before jumping in. Forex trading is a great profession and like any new business venture, it takes time to learn and do it right. Just take your time and remember to find the best Forex trading system that works best for you and stick with it.
How to Find a Successful Forex Trading System
The Foreign Currency Exchange Market, or more commonly known as the Forex market is the largest financial market in the world. Over $2 Trillion dollars are traded on the Forex market every day. Forex traders make money in the currency exchange market by playing one currency against another. They play currency pairs and bet that one currency will either increase or decrease in value and the other currency (or cross currency) will go in the opposite direction.
As I mentioned, Forex traders trade currency pairs. For example a trader might play the Euro against the US Dollar (EUR/USD pair). If the trader thinks the EUR will increase in value over a certain period of time, the trader will go "long" the EUR/USD pair. If the trader goes long this currency pair, he/she is betting the EUR will "increase" in value against the USD. If the trader is right, they make money. If they're wrong, then they lose money. Successful traders always employ a good forex trading strategy so they consistently profit from their trades.
There are two ways to play the Foreign Currency Exchange Market that all experienced Forex traders use. One is called Fundamentals and the other is called Technicals. Fundamentals refer to news events that move the markets. For example if a country increases interest rates, then most likely that will cause the currency to increase in value. If a country releases poor housing numbers then that could cause the currency of that country to decrease in value.
The technical side of trading the Forex markets refers to using charts and indicators. Price charts and other technical tools are used to determine a possible trade. Indicators like MACD, Stochastics, moving averages and more are just a few of the tools in the technical traders toolbox. The best Forex traders use a combination of both fundamental and technical trading. Great traders never rely on just one side.
Some traders trade longer term and some trade short term. A long term trader is considered a position trader. Position traders take a longer term approach to trading the forex market. For example if one currency looks like it could be bullish over the next few weeks or months, they may place a long position trade and let it ride for weeks or months until they exit their trades to take profits.
Traders who take a short term approach to trading are considered day traders or intraday traders. These traders only have open trades for a short period of time and most of these Forex traders open and close their trades in the same day or within hours. Most technical traders don't like to have open position around news time because some major news events can actually cause a great technical trade to fail because of an unexpected news surprise.
No matter what style of trading you use, as long as you use a great forex trading strategy and stick with the rules of those strategies, trading the forex market can be a very profitable way to make a living. Not only is a good forex trading strategy important but good money management plays a big role as well. As long as you manage your winners and losers and set the appropriate stop losses and profit targets, you will quickly find that trading the Forex market can be a very profitable business.
Foreign Currency Exchange Trading tips
Foreign Currency Exchange Trading
The foreign currency exchange markets are also known as the forex market. The currency exchange market is the largest financial market in the world, with a daily average trading volume of more than $2 trillion dollars. These markets operate 24 hours a day and the forex market is a highly liquid market. Most of the trading is conducted electronically or over the phone and today many retail forex traders use the internet and their personal computers. Banks, corporations, insurance companies, and other large financial institutions use the foreign currency exchange markets to manage the risks associated with currency fluctuations. In the past few years, many retail investors have been using the forex currency exchange markets as another possible investment opportunity.
The CFTC (Commodity Futures Trading Commission) warns investors of websites that claim to offer high yield investment (HYIP) opportunities in currency exchange transactions, because it’s one of the most prevalent means of internet fraud. The Commodity Futures Trading Commission has also posted several dummy sites that are representative of typical sites that have been the subject of CFTC enforcement actions.
Todays retail traders do not trade through the "interbank market” as many of the large institutions such as banks and corporations do. The interbank market typically caters to these larger organizations. Be very careful if a broker or trading firm claims their trading is done through the "interbank market” because your losses can be very large and most likely they could be involved in illegal schemes.
There are many legitimate brokers who cater to retail traders so do your homework before choosing your broker. Research is as easy as opening up your favorite search engine, putting the companies name in with the word scam or fraud. Bad companies will be seen immediately and you should stay away from them. If in doubt, choose another company.
Forex Glossary 2
Ask Price- The price at which the currency is offered.
At or Better - An order to deal at a specific price or better.
Authorized Dealer - A financial institution or authorized bank to deal in foreign currency exchange.
Base currency - The currency in which the operating results of the bank or institution are reported. This is the first currency in the currency pair.
Bear market - A prolonged period of generally falling prices.
Bid Price - The price at which a buyer has offered to purchase the currency.
Broker - An agent, who executes orders to buy and sell currencies either for commission, a spread basis, or both.
Bull market - A prolonged period of generally rising prices.
Bear – A trader who believes that prices are going to fall.
Bull – A trader who believes that prices are going to rise.
Buy-Stop – An order to buy a currency which is entered at a price above the current offering price. It is triggered when the market price touches or goes through the buy stop price. For example if the EUR/USD is currently trading at 1.3200 and you believe if the market breaches an expected resistance-level of 1.3225 that the EUR/USD will continue to rise in price until it reaches a higher resistance level around, say 1.3260, then you could place a "buy-stop" order at 1.3230. The buy-stop order will trigger an automatic order to buy at the market once the EUR/USD is 1.3230 offered, potentially capturing profits from the expected upward price movement.
Buying Rate - Rate at which the market and a market maker in particular is willing to buy the currency. This is sometimes called bid rate.
Cable - A term used in the foreign exchange market for the US Dollar/British Pound (USD/GBY) rate.
Carry - The interest cost of financing securities or other financial instruments held.
Central Bank - A bank that’s responsible for controlling a countries monetary policy. It is normally the issuing bank and controls bank licensing, and any foreign exchange control.
Closed position - A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency.
Commission - The fee that brokers may charge clients for dealing on their behalf.
Day trader - Traders who take positions which are then liquidated prior to the close of the same trading day.
Dealer - An individual or firm acting as a principal, rather than as an agent, in the purchase and/or sale of currencies. Dealers trade for their own account and risk.
Easing - Modest decline in price.
Fast market - Rapid price movement in the market
Fed - The United States Federal Reserve.
FOMC - Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.
Foreign Exchange - The purchase or sale of a currency against sale or purchase of another.
Forex – (aka FX) Foreign Exchange.
Fundamentals - The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
G7 - The seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy.
G10 - G7 including Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.
Gap - A mismatch between maturities and cash flows in a bank or individual dealers position book. Gap exposure is effectively interest rate exposure.
Going long - The purchase of a stock, commodity, or currency for investment or speculation.
Going short - The selling of a currency or instrument not owned by the seller.
Good until canceled - An instruction to a broker that unlike normal practice the order does not expire at the end of the trading day.
Gross Domestic Product /GDP - Total value of a country's output, income or expenditure produced within the country's physical borders.
Gross National Product / GNP - Gross domestic product plus " factor income from abroad" - income earned from investment or work abroad.
Head and Shoulders - A pattern in price trends which chartist consider indicates a price trend reversal.
Inflation - Continued rise in the general price level in conjunction with a related drop in purchasing power.
Kiwi - Slang for the New Zealand dollar.
Limit order - An order to buy or sell a specified amount of a currency at a specified price or better.
Liquidity - The ability of a market to accept large transactions.
Margin call - A demand for additional funds to be deposited in a margin account to meet margin requirements because of adverse future price movements.
Market order - An order to buy or sell a currency immediately at the best possible price.
Moving Average - A way of smoothing a set of data, widely used in price time series.
Offer - The price at which a seller is willing to sell.
Pip - Minimum fluctuation or smallest increment of price movement.
Profit Taking - The unwinding of a position to realize profits.
Quote - An indicative price. The price quoted for information purposes but not to deal.
Rally - A recovery in price after a period of decline.
Range - The difference between the highest and lowest price of a future recorded during a given trading session.
Rate - The price of one currency in terms of another.
Sell-Stop - A sell order which is not to be executed until the market price reaches the customer's defined price, known as the stop price. When this occurs, it becomes a market order. For example, if the EUR/USD is currently trading at 1.3200 and you believe if the market breaches an expected support-level of 1.3185 that the EUR/USD will continue to fall in price until it reaches a lower support level around, say 1.3150, then you could place a "sell-stop" order at 1.3180. The sell-stop order will trigger an automatic order to sell at the market once the EUR/USD is 1.3180 bid, potentially capturing profits from the expected downward price movement
Soft Market - More potential sellers than buyers, which creates an environment where rapid price falls are likely.
Spot - The most common foreign exchange transaction.
Spread - The difference between the bid and ask price of a currency.
Stable market - An active market which can absorb large sale or purchases of currency without major moves.
Sterling - British pound, otherwise known as cable.
Support levels - When an exchange rate depreciates or appreciates to a level where Technical Analysis techniques suggest that the currency will rebound, or not go below
Swissy - Market slang for Swiss Franc.
Technical Correction - An adjustment to price not based on market sentiment but technical factors such as volume and charting.
Thin market - A market in which trading volume is low and in which consequently bid and ask quotes are wide and the liquidity of the instrument traded is low.
Tick - A minimum change in price, up or down.
Up tick - A transaction executed at a price greater than the previous transaction.
Volatility - A measure of the amount by which a currency price is expected to fluctuate over a given period.
Whipsaw – When price whips up and down very quickly. Where a trader takes a position, then has to move against it triggering stop loss limits and liquidation of positions, then having to move in the original direction. Normally occurs in volatile markets.
Forex News Trading (Fundamental Forex Trading)
Forex News Trading (aka Fundamental Forex Trading)
If you’ve read through our site and others, you know there are two sides to forex trading; Fundamentals and Technicals. Technical trading is all about reading charts, using moving averages, tools and indicators to find high probability trades. There are some very good ways to make money in forex technical trading. This section describes the other side of forex trading called fundamental trading. This is where your odds of making good, profitable trades increase enormously.
Fundamental trading, also known as trading the news, is one of the best ways I know of making larges sums of money in very little time with very little risk. Financial news announcements get released every week. Some of these news announcement can and do move the market if there is a surprise in the announcement. For example, if a country is expected to raise it’s interest rate by a quarter of a point (0.25), the market prices this “expectation” into the price of it’s currency. When the announcement comes and the country decides to hold rates steady or raise them even more, e.g by half of a percent (0.50), this will absolutely move the currency. These are the kind of opportunities forex news traders look for and profit from.
News trading can also be challenging. In our previous example we said if a country raises it’s rates more than expected, we would expect it’s currency rate to increase. That could be so, but timing is also very important. If the interest rate announcement is accompanied by a statement from that countries Fed of Board that indicates something like this could be the last interest rate hike for a while, this could have a negative effect on the currency. So instead of skyrocketing up, price stalls, flounders a bit and start crashing in the opposite direction. You would initially be on the right side of the trade, with a very nice profit and before you know it, price goes the other direction, stops you out and you lose money of the trade. This can and does happen.
To trade the news professionally, you need to get access to tools and information the professional traders have. You need an edge. I have that edge and it’s called the Secret Forex Society. We are a group of traders who meet online in our trading room who trade specific news events. Felix Homogratus runs the room and he is not only one of the best forex news traders in the business, but he has access to live news feeds and tools that allow us to get into most news trades right before or at the initial spike. This is where we make some serious money. I’ve been with Felix for a year and as long as this service is offered, I’ll be with it. Many of us have easily doubled our trading accounts and look forward to more years of continued success. We also have access to Rob Grespi’s live trading room (He is a Pip making guru!), a Secret News Weapon to get us into trades faster than anything I’ve ever seen and so much more! These slots fill up very quickly, so if you can't get in now, click HERE to get on the waiting list and you will be notified when there are openings.
If forex news trading looks like something you’d be interested in, get into Felix’s free Secret Forex Society service. Then about once every month, he opens up a limited registration to join our trading room. If you get the chance, GRAB IT!!! You will be on your way to an exciting and very profitable business. Felix will send out email notification when registration opens. Since this has been a hugely popular program and most traders never leave, you may need to wait a while before new registrations are accepted. So when it does happen, act fast and get in.
The last thing you should know is to make money in forex trading, you need to have money to start with. If you can’t start a forex trading account with at least $2500, my recommendation is to stay out of news trading with us. Needless to say, the more money you start with, the more money you can use to trade and the higher profits you will make.
This is a great business and I’m so glad I decided to do this when I did. I’ve been at this for years and expect to do it for many more years. I also expect to have enough money to have a nice, early retirement for myself and my family. Thanks to Felix’s Secret Forex Society and the tools we use, I am so much closer to my financial goals than every before.
If you have any questions at all about this forex news trading service, forex trading in general or anything on this forex site, just click the Contact Us link and ask away. I’ll do my best to answer your questions.
Find the Forex Trading Systems and Forex Strategies that Suit
Find the Forex Trading Systems and Forex Strategies that Suit
You Best. Recommended Forex E-Books and Forex Courses
In this section you will find some of the best forex trading strategies and currency trading systems used for technical trading. Technical Analysis is likely the most common way of making trading decisions and analyzing forex and other markets. Technical analysis differs from fundamental analysis in that technical analysis is applied only to the price action of the market you’re trading and ignoring fundamental factors, or news events. To be a savvy technical trader, you need solid forex trading strategies and currency trading systems. The resources listed below are just a few of the most popular forex trading strategies and forex trading systems today.
There are many products and services to learn Forex trading strategies for this currency trading business. Some forex resources are very expensive and can cost hundreds if not thousands of dollars. Learn how to trade like the professional forex traders do. The forex ebooks and currency trading resources in this section are very inexpensive for the information and service they provide. We've seen many different fx currency exchange trading resources and forex e-books and we consider these to be an excellent value for anyone to get up to speed very fast and inexpensively.
My personal favorite is the Forex Trading Machine by Avi Frister. He has three excellent forex trading strategies that are very easy to understand and use. The main Forex trading strategy of his is called the Cash Cow and could be suitable for anyone who doesn't have all day to analyze Forex market and forex charts. He also includes two Forex day trading strategies (my favorite is the Forex Runner strategy) and I use it all time. It's a great ebook and it only takes a few hours to read and understand how to use these Forex trading strategies. Also, I believe it's perfect for new and experienced Forex Traders. I've bought many ebooks, courses and software applications and I believe Avi's is by far the easiest, least expensive and straight-forward strategy to use. I simply use his Entry and Exit points, plug these Alerts into my Metatrader (MT4) platform and receive email when a potential trade comes and I also send email alerts when my Take Profit or Stop Loss targets are hit. I just set and forget my trade and when I receive an email, I know my trade is done.
Tuesday, September 4, 2007
Participants of FOREX
Participants of FOREX
The participants of this market, first of all, are large commercial banks through which the
basic operations under the instruction of exporters and importers, investment institutes are
carried out, insurance and pension funds, hedgers and private investors. These banks also carry
out the operations in the interests due to own funds, thus volumes of daily operations in the large
banks reach billions of dollars, and the basic part of the profit is formed only due to speculative
operations with currency at some banks. Except for banks, the broker houses carrying out a role
of the intermediary between a plenty of banks, funds, commission houses, the dealing centers,
etc. Commercial banks and broker houses not only make operations on sale and purchase of
currency at the prices which are exposed by the other active participants, but also offer own
prices. Thus, they actively influence the process of pricing and a life of all market, therefore they
are called (market makers).
As against the active participants, the passive participants of the market cannot expose
own quotations and make currency purchase-sale under the prices offered by active participants
of the market. Passive participants of the market usually pursue following purposes: payment of
export-import contracts, foreign industrial investments, opening of branches abroad or creation
of joint ventures, tourism, gamble on a difference of rates, hedging of currency risks, etc. The
Central banks of the different countries come on FOREX, not only with the purpose of extraction
of the profit, as a rule. They usually do it with the purpose of stability check up, or correction of
an existing rate of the national currency. The correction of an existing rate of national currency
influences on the national economy condition. The central banks also come out on the currency
market through the commercial banks. Profit extraction is not the basic purpose of these banks,
but unprofitable operations do not involve them as well. The central banks of different countries
can carry out also the joint coordinated interventions. If the active participants make the
operations with the big sums of a few million dollars, the passive participants can use margin
trade. They have an opportunity to temporarily operate the capital, in one hundred times
exceeding their deposit. Such way of trade allows to take a part in work of the currency market
to fine investors with small capital and thus to receive significant profit. The structure of the
basic participants of the market testifies that this market is actively used by “the serious business
", for the serious purposes. That means not all the market participants use FOREX in speculative
purposes.
Profit or loss calculation
Profit or loss calculation If you have bought the goods (currency) at one price, then
have sold it at another one, then the profit or loss will make a difference between the price of sale
and purchase of the transaction multiplied by the sum of the transaction. Profit or loss=
Transaction sum * (Sell price – Buy price)
In a general view the formula of calculation of the profit and losses looks as follows:
Profit/Loss = N lots*100000*(Sell–Buy) – Nlots* Commission –N
lots*100000*Overnight*Ndays/365,
where N lots – quantity of lots 100 000each, used by trader
Sell – sell price of base currency
Buy – buy price of base currency
Spread – the commission raised by the dealing company
Overnight – difference in interest rates between base currency and counter currency for
operations Sell or Buy, depending on operations made by the trader. It is raised only in a case if
trader has not had time to close a position the same day. It can be positive (it is paid due to the
trader), and negative (is paid extra to the trader) Ndays – Quantity of days the trader has closed a
position within.
Possible profit or the loss (Unrealized P/L)
If you have an open position, you will have a necessity of possible profit or loss
calculation during concrete moments of time as rate constantly changes. While the position is not
closed, the profit or loss data is not finalized and refer to floating (possible or unrealized). If you
close your position during this moment at this rate you will receive such profit or loss. Same
formula should be used for calculation of possible profit or loss
You can carry out an output on FOREX only through the intermediary. The commission
house or the dealing center could be such intermediary. These organizations give you an
opportunity to use one of computer information systems such as Dow Jones Telerate, REUTERS
and have the allocated telephone or computer channel with the broker that gives you the
quotation of currency and you can make operations through. You also can directly work with the
commercial bank or the broker house. At the second variant you reduce the quantity of
intermediaries between you and FOREX that allows receiving more favorable operating
conditions. Even if you are so solvent and presume to buy and pay to yourself monthly services
of one of the information systems, the output on the active market participant (market-maker)
giving you the price for transactions is necessary for you either way.
The prices you see on the computer screen are the prices of real FOREX transactions. The
prices constantly change. Therefore you cannot simply call the broker and order operation under
the price convenient for you as this price can not suit him. Before you make a deal you request
for the price and can buy or sell only at the price given to you by broker. Firstly, do not forget
that you are a passive participant of the market and cannot establish the price. Secondly, the
broker will give you quotation poorly distinguished from what you see on the computer screen.
You should specify what operation we want to make - purchase or sale at the closing or opening
of a position. The commands Buy (to buy) or Sell (to sell) are used for this purpose
Margin Trade
As against currency transactions with real delivery or real exchange, the Participants of
FOREX, especially if they have a small capital, use trade with insurance deposit - margin or
leverage trade. Each operation at margin trade necessarily has two stages: purchase (sale) of
currency under one price and then obligatory sale of it (purchase) at another (or at the same) the
price. The first action is defined as opening of position, and the second - closing of position. The
real delivery of the currency does not occur at opening of a position, and the participant who has
opened a position, brings an insurance deposit serving as an indemnification of possible losses
guarantee. The insurance deposit comes back, and there is a calculation of the profit or losses,
which are usually equivalent to the size of insurance deposit after position closing. Thus the
deposit is frequently a hundred times less than that sum given the participant for use in this
trading operation. Operation at margin trade necessarily consists of two parts: position opening
and closing. For example, at the predicting rise in price (amplification) of yen in relation to
dollar we want to buy a cheaper yen for dollars now and to sell it back when it becomes more
expensive. In this case operation will look as follows: position opening - purchase of yen, closing
a position - its sale. All the time the position is not closed, we have “an open position of yen ".
In the same way, if we suppose that yen will become cheaper (weak) in relation to dollar our
operation will consist of such steps: opening of a position - sale of yen, closing a position -
purchase of fallen in price yen. Thus, we have an opportunity to gain profit both at increase and
decrease of an exchange rate.
inconveniences, especially for beginners. So, increase in a rate (movement of the chart upwards)
for pound and for euro in relation to dollar (GBPUSD, EURUSD), means a rise in price of these
currencies and downfall of dollar. And for franc, yen (USDCHF, USDJPY) means increase in
rate (movement of the chart upwards), fall of these currencies and rise of dollar. Generally,
during movement of the chart upwards the base currency raises in price, quoted currency
becomes cheaper.
For extraction of profit from the transaction it is necessary to buy cheaper (below at the
chart) and to sell more expansive (above at the chart). The sequence of these actions of value has
no necessity i.e. it is possible to sell all over again above, and then to buy below.
GENERAL FOREX MARKET DATA
At the end of 70th of the previous century after fixed rate system of national currencies in
relation to US dollar was canceled formation of currency FOREX market has started. (Foreign
Exchange Operations – set of operations on sale and purchase of foreign currency, and granting
of loans on concrete conditions, (the sum, the exchange rate, and the period with execution for
the certain date). The basic participants of the currency market are: commercial banks, currency
stock exchanges, the central banks, the firms carrying out the foreign trade operations,
investment funds, the broker companies and private persons. FOREX today is the global market
incorporated by a uniform communication network which opens on Monday morning in New
Zealand and gets closed on Friday night in the USA. FOREX trade is divided on some trading
sessions.
operations belongs to the European session. New Zealand and Australian sessions are the
quietest. The main currencies which are shared on the basic volume of all operations in the
FOREX market today are: Euro (EUR), Japanese Yen (JPY), Swiss franc (CHF) and English
Pound (GBP) and US dollar (USD). The daily volume of conversion operations in the world
makes about 2 billion US dollars. In the London market it was necessary about 32 % of turnover,
on a share of the markets of the USA - 20 %, Germany - 10 %. Operations with US dollar make
70 %. About 15 % volume in FOREX market today is on a share of electronic brokers. The
daytime volume of operations of the largest international banks (Deutsche Bank, Barclays Bank,
Union Bank of Switzerland, City Bank, Chase Manhattan Bank, Standard Chartered Bank)
reaches billions of dollars. (Spot) operations or current conversion operations are transactions of
currency sale and purchase of refer to as actual execution (value) which is carried out for the
second working day after the day the transaction was made. According to the data for 1998,
about 40 % of all Forex-activity fell at the Spot-market.
Typical transaction volumes in interbank trade make 10 million dollars, but due to margin
trade system, the output on the market is accessible also to the individuals with small capital. The
brokers rendering margin trade services, demand entering of the mortgaging deposit and enable
the client to make operations of currency sale and purchase for the sums, 40 - 50, sometimes a
100 times bigger, than plased deposit. The risk of losses is assigned to the client. The deposit
serves as the maintenance insuring the broker.
Sources of the information about condition of the financial markets - systems of real time
delivering the data on quotations of currencies, and also financial and economic news from the
international agencies, REUTERS, DOW JONES, CQG, BLOOMBERG, TENFORE, etc.
