Thursday, August 30, 2007

Trading Forex Futures

Foreign exchange and futures trading are becoming more and more popular all over the world mainly because of the promise of the great rewards that go with it.In the past, only major corporations and government institutions were able to cope with it due to the huge volume of trades that take place. Individual and small investors had been unable to participate because it was too overwhelming.
However, with the arrival of the Internet and the advancement of various tools of communication and correspondence, foreign exchange and futures trading have become within arms reach of many private movers and small timers. The Internet has allowed greater access to financial information that enables even individuals to make speculative investments, often without having to pay a single cent.
Forex trading, no matter what Web sites tell you about the behavior of currencies and futures, is not free from risks. As with anything in this world, particularly those that involve the exchange of value and money, there are certain pitfalls.
For instance, because currencies rise and fall nearly every second, what may be of maximum value at one time might suddenly transform into something nearly worthless at another.
Currency values in the foreign exchange market are highly volatile, so you must always be on your toes by keeping yourself updated with the changes every minute of the day. And since the forex market operates 24 hours a day, the monitoring could take quite an effort on your part.
You must also note that whenever one currency falls, another one surely goes up, because that’s how it goes. Currencies trade against each other.
Therefore, in order for you to be on the safer side (note that we said ’safer’, but not ’safe’), trade currencies that belong to the list of ‘majors’, such as the US dollar, the Japanese yen or the British pound. These monies are less likely to move too drastically because they are the most heavily traded currencies in the market.
A word of caution: do not engage in currency trading unless you’re truly prepared to do so. The lures of high returns might cause you to want to jump into the industry without so much as a bat of an eyelash, but you have to get yourself in-the-know first before you proceed.
Failure to adequately understand how the system works will cost you a lot of energy and mountains of money, if you’re not careful.
You can avoid getting into currency trading traps by keeping yourself up to date with the latest industry news and movements at all times. You can do this yourself, or you can hire an expert to do it for you (which, of course, entails an additional cost on your part).
Once you’ve already mastered how the foreign exchange and futures markets operate, you will also be able to prevent yourself from being duped into buying or selling currencies at inappropriate times. Knowledge allows you to make speculations and forecasts about what happens with currency values next.

Online Platform for a Successful Forex Trading

If you are in the Forex trading business, your main goal is to become successful, like in any endeavor man sets his eyes into. You search for useful information in the Internet, read books, and evaluate market charts just to find the best strategies on Forex trading.However, this may tend to become a greater problem because you can get confused and become unsure of the entry system where in you may find it difficult to stay organized and make entry decisions. You could get frustrated and quit doing your business later on.
As a trader, make sure that you stick to a platform which sticks to the best bankable trades so that you would be able to obtain success. You should not just develop a new strategy but analyze the trends to become a successful trader.
There is an online Forex trading platform called the What You Click Is What You Get or WYCIWYG. The execution of prices is guaranteed provided on every type of order. You don’t need to worry because there are no slippage whatever the condition of the market is. This platform honors all executions that are valid even if the market is volatile.
There are also three different online currency platforms which provide the costumers with a unique level of flexibility.
- Trading platforms that are FLASH based. Flash is used to power a software where in the customers are shed completely with the possibility of firewall problems. They can rapidly and easily access the trading session of foreign currency and able to trade to other computer that has Internet connection worldwide.
The clients have the options of trading whether they are at home, using a laptop, office or transact business in an internet cafĂ©. This is a client friendly trading platform and easier to use because descriptions are not needed for you to start forex trading. In some websites, you don’t need to download a trading platform where you can securely login live.
- Trading platforms that are JAVA based and WAP based. It contains eleven languages however it does not provide the same web based advantage compared to Flash Platforms. But it has multiple advantages including increased stability, it requires minimum memory usage upon installations or downloads, there are additional types of order such as “trailing stop” and “if done” orders, position liquidation are selective, and it automatically updates the platforms.
WAP is a service being added to a JAVA based platform where in the trader can trade in his account using a PDA or a mobile phone. The disadvantage is that WAP has a low speed showing only indicative prices.
- Trading platforms that are HTML based. Functions and portability are beautifully combined in this type of platform. You don’t need to download and you can trade wherever you are. It contains all the JAVA based order types. The advantages are light consumption of memory, stability are increased, and provides customizable professional layout.
These types of platforms offered by some forex websites can help customers trade their currency online via online dealing room that is open 24 hours on working days. It offers management order, integrated technical analysis, and back office or deal on their clients using a telephone with available languages such as French, English, German, Italian, Greek, and Russian. They also offer support to assists the customers in answering their questions with the mentioned languages.
The secret to become a successful trader depends on the knowledge, techniques and platforms used by the trader. Use it for your own advantage.


The global marketplace has evolved over the past several years. Coming up with more and new strategies that are essential in this dynamic environment.
The dawn of technology has seen trades being taken from the trade floors to home computers, which makes it all the more convenient for just about anybody who has a good intuition for business. Exchanges such as the stock market, futures and options market are now being traded online.
But the most popular of these electronic trade instruments is FOREX which is why you would probably want to learn online FOREX or currency trade.
FOREX or currency trade is the synchronized purchase of one currency and disposition through sales of another. Currencies are always traded in pairs.
Majority of trade participants in online FOREX or currency trade are there to make a profit. A minor group, mostly companies and governments are there to convert profits or currencies made in foreign currency into their domestic legal tenders.
For most FOREX traders, the safest investments are with the most commonly traded currencies, primarily due to its high liquidity. These currencies include the US, Canadian and Australian Dollars, Euro, Swiss Franc, Japanese Yen and the British Pound. Since these are commonly traded, demand are always high therefore raising higher the chances to earn a profit from any of these currencies.
In Learning inline Forex (currency) trade, you must know that it is an all day market, beginning in Australia, it moves across the globe to all the financial centers in the world. This gives investors the ability to response to any currency movement caused by economic, social or political events as they happen.
This is also easily accessible as transactions are not limited to the trade floor but rather through a network of banks, telecommunication and the Internet. As opposed to the stock or futures market where a specific place, also called an “exchange” is necessary.
Also, unlike other trade instruments, learning online FOREX (currency) trading will maximize your investments as it allows leveraged trading. In other words, it is not necessary for you to put up the full value of the position, which makes this more cost-effective for some compared to stocks and futures.
FOREX trading actually allows you leverage up to 200 times the value of your account. The reason for this is the low susceptibility of the major currencies to change on a daily basis. Volatility is actually less than one percent much, much lower than stocks which can move anywhere from 4% to 12% in one day.
Leverage is very important in the FOREX trade as it allows you higher returns on a smaller market movement. Therefore proving to be more cost-effective for most traders.
To start delving into FOREX, you begin by opening a bank account with a broker. Go through the market to find out the best deal for you.
Also, learning FOREX (currency) trading online is not a problem! A number of providers offer services to help cultivate your chances of succeeding in FOREX trade. Some financial institutions offer trainings or seminars on how to trade.
Online, there are also ebooks or even simulations, tools that help enrich knowledge about the market. There are also downloadable softwares that will guide you through the basics of trading, and some even throwing in valuable tips about the market.
But the most important thing to remember is to buy when the prices are low and sell when they are high. Good timing and judgment are the main tools that will give you what you aspire for, which is of course maximized profit

Australian Dollar pulled in both directions

For the better part of a year, the Australian Dollar (AUD) has remained relatively constant in value, hovering around .75 USD. Economists and analysts have identified several factors that are preventing the AUD from moving by pulling the currency in opposite directions. On one hand, commodity prices and Australian economic fundamentals continue to perform strongly, which would seem to drive the AUD upward. On the other hand, the interest rate differential between the US and Australia has narrowed to only 100 basis points, which may not be enough to bring the capital of risk-averse foreigners to Australia. By the same token, many investors are moving funds to New Zealand, where interest rates exceed 7%. The Sydney Morning Herald reports:
All told, last year saw the lowest degree of variability in the Aussie's value in any year since the float in December 1983.

Malaysian forex receipts expected to rise

The value of a particular currency should theoretically reflect demand for that currency. Accordingly, diligent forex traders scrutinize trade data and capital flows in order to identify trends in the movement of foreign exchange. Malaysia, for instance, recently announced that it expects tourism to double in the next five years. Because tourism represents one of Malaysia’s largest exports, the country will witness significant inflows of foreign exchange. While this activity should buoy Malaysia’s currency, the Malaysian Central Bank will likely continue to ‘manage’ the Ringgit and prevent it from appreciating too much. The Business Times reports:
The Ministry of Tourism has projected RM59.4 billion in tourist receipts in 2010 from 24.6 million tourists. This compares to RM29.7 billion spent by a total 15.7 million foreign holiday makers in Malaysia last year.

China downplays Yuan revaluation

In a recent press release, high-ranking members of China's Central Bank claim no further revaluations of the Yuan will take place. This time, they may be serious. In previous reports, officials coyly stated they would revalue, without laying out a timetable for such a revaluation. In this latest report, these same officials downplayed the possibility of further Yuan revaluations, saying the forex markets would determine the future value of the Yuan. They quickly added that any sudden appreciation of the Yuan would be mitigated. While it is possible the officials are still being coy, it seems likely that another revaluation is a distant prospect. The Economic Times reports:
"This will be decided by the market. The government will not decide the yuan's level," Wu Xiaolin, the central bank vice governor said.

Indonesia to mitigate currency crisis

Supported by booming economies, most Southeast Asian currencies have soared in recent years. Indonesia’s currency, the Rupiah, unfortunately has not fared well, declining recently to a 45-month low against the USD. The cause is not economic malaise, but rather the rising price of oil. For whatever reason, Indonesia expends a great deal of effort and money on artificially lowering the cost of fuel, typically by meting out fuel subsidies to consumers and businesses. As the price of oil has risen, so have Indonesian fuel subsidies, which now consume nearly 1/3 of Indonesia’s budget. This has exerted a tremendous strain on Indonesia’s money supply and credit markets, to the point where economists now reckon the Central Bank needs to raise interest rates by 100 basis points (1 percentage point) in order to prevent a full-scale currency crisis. The Financial Times reports:
Should the currency slide further and remain below Rp11,000-12,000 to the dollar for a quarter, they say, it would lead to corporate defaults and put pressure on the banking system.