A fundamental trading strategy consists of strategic assessments in
which a certain currency is traded based on virtually any criteria
excluding the price action. These criteria include, but are not limited
to, the economic condition that the country the currency represents,
monetary policy, and other elements that are fundamental to economies. The
focus of fundamental analysis lies on the economic, social and
political forces that drive supply and demand. There is no single set
of beliefs that guide fundamental analysis, yet most fundamental
analysts look at various macroeconomic indicators such as economic
growth rates, interest rates, inflation, and unemployment. Several
theories prevail as to how currencies should be valued. Alone,
fundamental analysis can be stressful when dealing with commodities,
currencies and other "margined" products. The reason for this is that
often fundamental analysis does not provide specific entry and exit
points, and therefor... Read more »
Probably the most successful and most utilized means of making
decisions and analyzing forex and commodities markets is Technical
Analysis. The difference between forex technical and forex
fundamental analyses is that forex technical analysis ignores
fundamental factors and is applied only to the price action of the
market. In that fundamental data can often only provide a long-term
forecast of exchange rate movements, forex technical analysis has
become the primary tool to successfully analyze and trade shorter-term
price movements, as well as to set profit targets and stop loss. Forex
technical analysis primarily consists of a variety of forex technical
studies, each of which can be interpreted to predict market direction
or to generate buy and sell signals. For a detailed description of
these studies and their uses, please use our charting user guide for
technical studies.
Risk Warning Trading foreign
currencies is a challenging and potentially profitable opportunity for
educated and experienced investors. However, before deciding to
participate in the Forex market, you should carefully consider your
investment objectives, level of experience and risk appetite. Most
importantly, do not invest money you cannot afford to lose. There is
considerable exposure to risk in any foreign exchange transaction. Any
transaction involving currencies involves risks including, but not
limited to, the potential for changing political and/or economic
conditions that may substantially affect the price or liquidity of a
currency. Moreover, the leveraged nature of FX trading means that any
market movement will have an effect on your deposited funds
proportionally equal to the leverage factor. This may work against you
as well as for you. The possibility exists that you could sustain a
total loss of initial ma... Read more »
Initially, principles of the Dow Theory were used only for the American
indices created by Charles Dow: Transportation and Industrial. Most of
them, however, can be successfully applied to the foreign exchange
market. Indices discount everything. According to Charles Dow any
factor which influences demand and supply will be reflected in the
index. These factors cannot be foreseen but nevertheless they are taken
into account by the market and reflect index behaviour. There are
three movements on the market. Uptrend is characterised by the fact
that every following top is higher then the previous one and every next
bottom is higher then the previous one. Downtrend is characterised by
the fact that every following top is lower than the previous one and
every bottom is lower than the preceding one. When the market is in the
flat position every next move (up or down) is approximately at the same
level as the preceding one:
Following rules define the operation conditions in FOREX and CFD
markets, which Company provides to physical and juridical persons via
Internet or a telephone line. These rules and conditions make clear how
to open, close trading positions and place, remove or change orders,
and how these orders are executed by the Company on valid trading
tools. This section includes the basic moments (most important) of
trading character mentioned in the Agreement, and also some other not
less important information. At the same time we strongly recommend you
read the full version of the Agreement. 1. The deal (opening or
closing a position) is executed at the "BID" / "ASK" prices offered to
the Client. The Client chooses desirable operation and makes a request
for the deal confirmation by the Company. The deal is executed at the
prices the Client can see on the screen. During the confirmation the
price may be changed, and the Company has right to offer the Client a
new price.... Read more »
by: Gregory DeVictor The foreign exchange market, or Forex market,
is an around-the-clock cash market where the currencies of nations are
bought and sold. Forex trading is always done in currency pairs. For
example, you buy Euros, paying with U.S. Dollars, or you sell Canadian
Dollars for Japanese Yen. The value of your Forex investment increases
or decreases because of changes in the currency exchange rate or Forex
rate. These changes can occur at any time, and often result from
economic and political events. Using a hypothetical Forex investment,
this article shows you how to calculate profit and loss in Forex
trading. To understand how the exchange rate can affect the value of
your Forex investment, you need to learn how to read a Forex quote.
Forex quotes are always expressed in pairs. In the following example,
your pair of currencies are the U.S. Dollar (USD) and the Canadian
Dollar (CAD). The Forex quote, USD/CAD = 170.50, means that one U.S.
Dollar is equ... Read more »
