Categories
Forex almasrey

How to succeed in forex trading Branded Content

Our trader highlight is Ebuka Ambrose, a skilled trader with over 2.5 years of experience. He has anchored many educational events, both virtual and physical. Here is one of his latest Question and Answer Sessions Making sense of Forex Trading hat is Forex? Forex simply means foreign exchange. The Forex market is a global market where currencies are exchanged or traded. It is the largest financial market in the world, with a total daily liquidity of $6.6trn. This means at least $6.6trn is traded in the Forex market every day. Can you imagine that? Let’s consider the currency exchange we do when travelling abroad. You sell the currency of your home country to get the currency you will need in your destination country using an exchange rate.
The main objective of Forex trading is to buy or sell a currency in relation to another currency how does one make profit buying and selling currencies? The answer is basic economics. Supply and Demand Currencies fluctuate based on supply and demand because exchange rates are subject to volatility. You profit when you take advantage of the difference in value for a currency when we buy in relation to when we sell, and vice versa. or instance, if you buy $100 worth of U. S. dollars at the rate of 500 naira to a dollar, you have purchased 50,000 naira worth of U. S. dollars. If you were to sell the naira later, when the exchange rate shot up to, say, 600 naira to a dollar, your $100 would now be worth 60000 naira and make you 10,000 naira in profit. You’ve heard the phrases ‘Buy low, sell high’ or ‘Buy the dip’. Understanding market conditions and their implications for currency fluctuations helps improve the accuracy of your predictions of market movements.
This is how you make Forex trading profits. Tips For Success In FOREX Trading Avoid Unreasonable Expectation the Forex market is one with high liquidity, so it’s imperative that you approach it with a practical mind. You want to set realistic goals and keep fear and greed out of the equation.Trading is an art and should be approached as one. There is a steep learning curve with rewards in the end. Although you cannot become a master in a couple of weeks or months, the great news is, Forex trading mastery is certainly attainable.
Watch this video that likens Forex to different art forms. now The best forecasters in different industries are usually the most self-aware people there are Key: Spend a considerable amount of time in conscious introspection.
Knowing the kind of person you are informs your goals, expectations, and trading style. This is an important thing to keep in mind as you want to evaluate the risk profile for whatever trading strategy you decide on. Can you stomach the risk of loss for prolonged periods at a time? You’re likely to adopt long-term trading, leaving your trades on for weeks to months. Are you incapable of going to sleep without closing a trade? You’ll likely adopt day trading.
Your success in Forex trading is determined by you and only you. One important step before you attempt measuring your trading success is to determine what exactly success means to you. Setting a clear goal helps you make calculated moves to get there.
Bonus tip: It helps if you print your goal out and visualize it. You have to know if your trading methods are conducive to your goal. Enjoy your little beginning the initial learning phase of Forex trading shouldn’t be rushed. You need to invest your time more than your money in this phase. Solid foundations make solid structures, so take the time to understand the basics—terminology, trends, orders—before shifting focus to learning how to analyse the markets. While the majority of trading knowledge does come from trading and experience, a trader should learn everything about the Forex market before delving into it.
This includes the geopolitical and economic factors that may affect your preferred currencies. Don’t make beginner mistakes Going ahead to trade without prior understanding of the market, or giving in to greed or irrational FOMO, among other popular beginner mistakes, will cause you to lose your trading capital in no time. It is a well known rule that you should only risk 1-2% of your trading capital on a trade. Likewise, you should always implement proper risk management tools in your trading, such as stop-loss and take-profit orders. Remember these and the forces will be in your like a learner not a pro Research from Tet lock and Mellers shows there are two kinds of forecasters.
one that usually adjusts ideas in light of unexpected events; and the other kind that rarely does. While your trades should always be backed by comprehensive analysis, it is important to criticise your analytical frameworks from time to time. People who are great at forecasting market movements keep an open mind when it comes to their beliefs. To be a great Forex trader, you should be quick to accept it when you are wrong and not let your ego get in the way. Research, practice, in addition to criticising your analytical methods often, read and research! No one is successful without opening their mind to knowledge. Benjamin Franklin once said: ‘An investment in knowledge pays the best interest.’ In other words, getting adequate knowledge about the Forex market is important to help you make informed decisions when trading?

Read about the latest trends in the market and what the industry professionals are into. Find educational content. For starters, go to the educational section of the OctaFX website. Test out strategies using your DEMO account. Never go live without testing or when testing a strategy. Trading on a practice account will immerse you and give you insights into the strategy before you’re confident enough to trade using a real account. Document every thing Keep a trading journal where you document your entry and exit points and the ideas leading to those decisions. Pay attention to emotional reasons like anxiety, greed, fear and note them. Studying past trades gets you insight into your behaviour, methodology, how often you stick to your strategy, if your strategy really works, and how to modify all these for increased profit. This way, you will develop the emotional stability needed to follow your trading plan. Always review your strategy the reliability of your current system. Pick your last 5–10 trades to measure your profits and losses.
Keep in mind that leverage is a double-edged sword Traders use leverage to enhance the profit from Forex trading. Leverage is essentially borrowing capital from a broker that gives a trader the advantage to buy and sell more currency. Understanding that while leverage may boost your profit capacity, it can also amplify your losses is a first step to navigating this concept. Forex traders implement strict trading strategies that include the use of stop-loss orders to limit their potential losses, as well as moderate and conservative lot sizes that can give good profit and minimise margin loss.
Prioritise capital protection over profit Being one of the most actively traded markets in the world, Forex has the potential risks magnified for traders compared to other markets. It is a lot harder to get back from a loss than it is to grow your trading balance. In order to avoid losing money in the foreign exchange, do your homework and look for a reputable broker. Minimise risk and increase winning odds to your favour when testing analysis techniques by using a practice (or DEMO) account.
Treat your trading as a business by documenting everything and staying in the profit zone. The moment you start to make consistent loss your business has failed. Avoid failure by using proper money management techniques and controlling you Choose a reliable broker You want to trade with a broker that gives you the opportunity to efficiently utilize your trading skills. There is a lot of uncertainty around the Forex market and, frankly, your broker shouldn’t be one of your headaches. Finding a broker with all the right tools to confidently access the Forex market is a skill on its own. Ideally, you want to go with a broker that has been around long enough to learn from its own processes, that has and continues to modify their operations in a way that caters to the needs of their users. OctaFX is a reliable broker with over 10 years of experience developing the perfect trading tools for ambitious Forex traders. When it comes to innovation, speed, education, and promotional offers, OctaFX is highly recommended. gory Mankiw in his Principles of Economics outlines this one important principle: ‘Trade can make everyone better off.’ Hoping you take a hold of this world of opportunity with Forex trading. Being profitable in the Forex market goes beyond the trading strategy utilized. It is determined by a host of other factors: commitment, consistent practice, patience, understanding risks, becoming savvy, and ultimately confidence in your sein your broker. It takes just about the same input and time required to master any other art form. You, too, can join the thousands of people attaining financial freedom through Forex trading. Mastery does look like you!

Categories
Forex almasrey

Information that an investor should know in forex trading

The Foreign Currency Markets What are foreign currency exchange rates? Foreign currency exchange rates are what it costs to exchange one country’s currency for another country’s currency.
For example, if you go to England you will have to pay for our hotel, meals, admissions in British pounds. Since your money is all in US dollar you will have to use (sell) some of dollars to buy British pounds. Assume you go to your bank before you leave and buy $1,000worth of British pounds. If you get 565.83 British pounds or your trip, you will have to exchange more US dollars for pounds while in England. Assume you buy another $1,000worth of British pounds from a bank in England and get only £557.02 for your $1,000. The exchange rate for converting dollars to pounds has dropped.
56583 to .55702. This means that US dollars are worthless compared to the British pound than they were before you left on vacation. Assume that you have £100ft when you return to your bank and use the pounds to buy US dollars. If the gives you $179.31, each British pound is worth 1.7931British dollars. This is the exchange rate for converting pounds to dollars. you can convert the exchange rate for buying a currency to the exchange rate for selling a currency, by dividing 1 by the known rate. For example, if the exchange rate for buying British pounds with US dollars. 56011, the exchange rate for buying US dollars with British pounds is1.78536 (1 ÷ .56011 = 1.78536) dollars. This is the exchange rate for converting pounds to dollars. Theoretically, you can convert the exchange rate for buying a
currency to the exchange rate selling a currency by dividing 1 by the known rate. For example, if the exchange rate for buying British pounds with US dollars. 56011, the exchange rate for buying US with
foreign currency exchange rates? As you can see from the London vacation example, currency exchange rates fluctuate. As the value of one currency rises or falls
relative to another, traders decide to buy or sell currencies to make profits. Retail customers also participate in the forex market generally as speculators who are
hoping to profit from changes in currency rates. Foreign currency exchange rates may be traded in one of three way On an exchange that is regulated by the Commodity Futures Trading Commission (CFTC). For example, the Chicago Mercantile Exchange offers currency futures Exchange offers currency futures and options on futures products.
Exchange-traded currency futures and options provide their user On an exchange that is
regulated by the Securities and Exchange Commission (SEC). For example, the Philadelphia Stock Exchange offers options on currencies (i.e., the right but no. the obligation to buy or sell a currency at a specific rate within a specified time. Exchange- traded options on currencies have characteristics similar to exchange traders and options (e.g., a liquid, secondary market with a set size, a fixed expiration date and centralized clearing). In the off-exchange, also called the over-the-counter
(OTC) market. A retail customer
rates directly with a counter party and there is no exchange or central clearinghouse to support the transaction. This brochure focuses on the off-exchange foreign currency
market ow does the off-exchange currency market work? The off-exchange forex market is a large, growing and liquid financial market that operates 24ours a day, 5 days a week. It is not a market in the traditional because there is no central Criticism of illegal forex trading platforms trading location or “exchange Most of the trading is conducted by telephone or through electronic trading networks. The primary market for currencies is the “interbank market” where banks, insurance companies, corporations and other large financial institutions manage the risks associated with in currency rates The true interbank market is only available to institutions that trade in large quantities and have a very high net worth recent years, a secondary OTC market has developed that permits retail investors to forex transactions. While this secondary market does not provide the same prices as the bank market, it does have many of the same characteristics.

 

Categories
Forex almasrey

Forex trading explained for beginners and learn the important points of trading

Focus on safety Captal.com puts a special emphasis on safety. Capital com group is licensed by CySEC, FCA, ASIC, FSA & NBRB, it complies with all regulations and ensures that its clients’ data security comes first. The company allows you to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts Follow Capital.com to always stay on top of the latest market developments and discover forex trading tips, analysis and forecasts All-round trading analysis The browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android. Study live currency pairs within the platform while simultaneously browsing tailored news based on your trading behaviour Trading the difference
When trading CFDs on currency pairs you don’t buy the underlying base currency itself. You instead speculate on the rise or fall of its value. CFD trading is no different from traditional trading in terms of its associated strategies. When trading CFDs you can go short or long, set stop and limit losses. Trading on margin Providing CFC trading on margin (up to 30:1 for major currency pairs), Capital.com gives you access to the wide range of popular forex markets without you needing to have a large amount of funds in your account. Why use Capital. com’s forex trading platform A Facebook-like news feed provides users with personal and unique content depending on their preferences.
If a trader makes decisions based on biases, the innovative News Feed offers a range of materials to put him back on the right track. The neural network analyses in-app behaviour and recommends videos and articles to help polish your investment strategy. Forex trading terminology Before you enter into forex trading it’s useful to know some of the common lingo used by traders. Here’s a simple glossary of some of the terms you’ll come across:
Aussie – slang term for the Australian dollar Ask price – the price at which a trader can buy Base currency – the first currency shown in a currency pair – in USD/EUR the US dollar is the base currency Base rate – the lending rate set by a country’ bank Basis point – equal to 1/100th of 1%, or 0.01% – or 0.0001 in the price of a currency pair. Often called a “pip” Bear market/bearish – indicating a market or asset price in decline Bear – traders who expect prices to fall and may be holding short position side price – the price at which a trader can sell Bull market/bullish – indicated a market or asset price that is rising all – a trader who expects prices to rise and may be holding long positions able – slang term for the GBP/USD currency pair Counter currency – the second currency in a currency pair – in USD/EUR the euro is the counter currency
Counterparty – a participant in a transaction Day trading – entering and exiting a trade in the same day. This is the typical strategy employed on CFD trading platforms Derivative – a financial product whose value is based on an underlying asset Dollar index – a measure of the US currency’s strength relative to a basket of other currencies that include the euro, the pound and the yen. Its symbol is DX Yove/dovish – relating to monetary policy that supports lower interest rates.
Opposite of haw screen back – slang term for the US dollar, also buckawk/hawkish – relating to monetary policy that supports higher interest rates. Opposite a trading position or positions that helps reduce risk on your primary trading positionswi – slang term for the New Zealand dollar – this allows an investor to open positions much larger than his up-front capital can cover.
It means that you can multiply your profits significantly on winning trades, but risks you losing much more than your initial investment. Take note of the warnings on trading platforms that offer leveraged trading a highly liquid market has enough volume of trade to ensure smooth price movements. Illiquid markets have low levels of trading activity and can result – slang term for Canadian dollar Margin – margin is related to leverage, and represents the minimum amount of cash you need to deposit to trade at your specified leverage Margin call – when your open position moves against you, your broker will make a margin call for you to supply additional funds to cover your Open position – an active trade ip – stands for “price interest point” and is the smallest amount by which a currency pair’s price can change. On quoted currency pairs, a single pip will be 0.0001 this is the difference between the bid – or sell – price, and the ask – or buy – price on a currency pair. alternative name for the UK a minimum change in price, or a pip
What is a forex trading platform the top interbank traders to bedroom-based retail investors, all currency trading is performed on some kind of computer platform-based interface All forex trading platforms – including Capital com’s access to forex CFD trading – provide investors with appropriate tools to enable them to make their investment choices These may include research tools such as charts, historical data and access to news and analyst reports trading platforms may have a similar look and feel to those used by professional institutional traders, but remember, it’s not institutional money you’re trading with. You will be margin trading, most likely using leverage, so be careful to use the full range of tools these platforms provide, particularly the stops.

Categories
Forex almasrey

Interbank information on market trading.

Imagine the interbank market as a financial system in which the world’s largest banks and other financial institutions are electronically, by telephone, or otherwise connected together. Some of the transactions are carried out by banks themselves, and other transactions may be executed by the bank or broker for their clients. Transactions on the interbank market are executed here both for profit and to also to hedge, i.e. ensuring risks arising from the activities of corporations.
This is the volume of interbank transactions compared to all transactions in the financial system. Small retail traders and speculators are not able to directly send their transactions in the interbank market, since access to the interbank market involves very high capital and technology requirements However for these traders it is extremely important that their provider (broker), will send all transactions for an execution to the real interbank market. It is the only place where traders can execute their trading orders without conflicts of interest, and this will enable them to achieve long-term profitable results.
The most important players on the interbank market are banks, i.e. market makers. The most active and the biggest banks in the interbank market are: Deutsche Bank, UBS, Barclays, Citibank, Bank of America, JP Morgan, Morgan Stanley, Commerzbank, BNP Paribas, Credit Suisse, RBS, and others who operate in the market as liquidity providers, i.e. they act as a counterparty to the interbank market. On the interbank market, traders can participate through true STP / ECN Direct Market Access brokers, but 98% of brokers in the world offering STP / ECN trading accounts do not send clients’ trades on the real interbank market, but instead to only one market maker which directly participates in the loss of their clients. Therefore, it is extremely important to choose the right broker.
So if you do not trade through a market maker who sets their own quotes that correspond to interbank rates, but usually they do not, then the STP / ECN DMA broker creates the lowest possible spread based on the current BIDs and ASKs of liquidity providers (banks). These banks will then act as counterparties of your transactions.
Interbank spreads of STP / ECN DMA brokers usually reflect the quality of liquidity providers of the broker. The broker then adds his own commission representing his profit to the raw interbank market spread. These spreads are shown in trading platforms, and based on these spreads clients will do their transactions. The second possibility is that the broker directly provides the interbank market raw spreads to his clients, and transparently charges commissions when opening and closing the trades.
In the picture below you can see how experienced and trustworthy (good) STP / ECN DMA brokers create a spread Depth of market A very important aspect of any broker, which is not spoken about very much, is called Market Depth. Depth of market presents different price levels and indicates what trade volumes can be executed at a given price level. Usually lower volumes are available close to the current rate and the further from the current rate volumes increase. the picture below, you can also see which counterparty will be chosen for our trade (for example – “JPM” stands for J.P. Morgan; “BNP” stands for BNP Paribas and “GSI” is Goldman Sachs International). In case you trade with a market maker broker or with an ECN / STP broker who has only one liquidity provider you will always have a single counterparty – the market maker with whom you will have a high conflict of interest, and they will not allow you to make money in the financial market.
The key to profitable trading is therefore to have a broker who chooses among a large amount of liquidity providers and always chooses the most suitable one.
Here you can see how prices are moving in the market. If some high volume orders come to the market, they are executed according to the depth of the market at a higher or lower price level depending on the type of order (short / long) and basically it takes liquidity at the current price level. This is what causes the movement of prices in the market Execution costs, slippage You can also see above why some of our trades are executed at a different price than that at which we enter the transaction to the market. The difference between these two prices is called slippage, and the amount of slippage is immediately included in the costs of our trade. And here we come to the core of the problem in the execution of trading orders. Slippage is the most important factor of trading that very often completely overshadows the spread and the commission, or any other fees.
For example, if you enter a long trade at the trading platform with a volume of 1 lot at the price of 1.35050, and the broker will fill your order at the price of 1.35055, you are immediately at a loss except spread further 5 USD .If instead your order is filled at 1.35045, then at your trade you will get a positive slippage, which increases the gain or reduces the loss by 5 USD .The slippage is a common thing, which you will get with all types of brokers, especially when you are trying to execute high volumes in tens or hundreds of lots (because of the depth of the market), or if you trade in a period of strong fundamentals – simply because of latency, since the market moves extremely fast. Slippage strongly depends on the quality of liquidity providers your broker uses, and also on the technology the broker uses. However, the problem is how the vast majority of forex brokers work – if they can fill your order for a better price, they execute it for the better price, but they do not count the positive slippage in your trade, and thus the amount of slippage goes immediately into your broker’s pocket. Obviously these types of brokers will always add a negative slippage to your trades. Poor quality brokers may even artificially increase the slippage.
Slippage in extreme cases with bad brokers can reach tens of pips, and the average of slippage will be much higher than the spread. After a hundred trades executed, the slippage at a poor quality brokers with a volume of 1 lot could lead to costs of thousands of dollars.
Slippage is the main reason why exactly the same trading strategy (for example Expert Advisor) with different brokers will always achieve absolutely different results – and there can be huge differences. Even the best strategy in the world can become a loss with a poor quality broker. Conversely, average quality trading strategies at brokers with excellent technology will achieve consistently profitable results.
As the team FX Trading Revolution, we definitely recommend trading only with a fair broker who applies both positive and negative slippages to your trades. Comparison of the results of the same automated trading strategies with various brokers, where the results differed by hundreds of a percent.

Categories
Forex almasrey

Forex trading for the individual investor Individual investors who are considering participating

in the foreign currency exchange (or “forex”) market need to understand fully the market and its unique characteristics. Forex trading can be very risky and isnot appropriate for all investors. It is common in most forex trading strategies to employ average. Leverage entails using a relatively small amount of capital to buy currency worth many time the value of that capital. Leverage magnifies minor fluctuations in currency markets gains and losses. By using leverage to trade forex, you risk los in all of your initial capital and also even more money than the amount of your initial capital. You should carefully consider your own financial situation, consult a financial adviser knowledge forex trading, and investigate any firms offeringto trade forex for you before making any investment. Background: Foreign Currency Exchange Rates, Quotes, and Pricing A foreign currency exchange rate is a price the presents how much it costs to buy the currency country using the currency of another country. Currency traders buy and sell currencies through forex transactions based on how they expect currency exchange rates will fluctuate. When the value of one currency rises relative to another, traders will earn profits if they purchased the suffer losses if they sold the appreciating currency. As discussed below, there are also other factors that can reduce a trader’s profits even if that trader “picked” the right currency. Currencies are identified by three-letter abbreviations. For example, USD is the designation for the U.S. dollar, EUR is the designation for the Euro, GBP is the designation for the British pound, and JPY is the designation for the Japanese yen. Forex transactions are quoted in pairs of currencies
(e.g., GBP/USD) because you are purchasing one currency with another currency. Sometimes purchases and sales are done relative to the U.S. dollar, similar the way that many stocks and bonds are priced in U.S. dollars. For example, you might buy Euros us in U.S. dollars.
In other types of forex transactions, on buy Euros using British pounds – that is, trading both the Euro and the pound in a single transaction. For investors whose local currency is the U.S. dollar (i.e., positive bet on the Euro (an expectation that the Eura positive bet on the Euro and a negative bet on Generally speaking, there are three ways to trade foreign currency exchange rates On an exchange that is regulated by th Commodity Futures Trading Commission Chicago Mercantile Exchange, which offers currency and options on currency futures.
products. Exchange-traded currency futures and options provide traders with contracts of a set unit size, a fixed expiration date, and centralized clearing. In centralized clearing, a clearing corporationacts as single counterparty to every transaction and guarantees the completion and credit worthiness of all transactions On an exchange that is regulated by the Exchange Commission (SEC). An example of exchange is the NASDAQ
OMX PHL formerly the Philadelphia Stock Exchange which offers options on currencies i.e., the right but not the obligation to buy or sell a currency at a specific rate within a specified
Exchange-traded options on currencies also provide investors with contracts of a set unit size, fixed expiration date, and centralized clearing. In the off-exchange market. In the off-exchange market (sometimes called the over-the counter or OTC, market an individual investor trades directly with a counterparty, such as a forex broker or dealer; there is no exchange or center house. Instead, the trading generally is conducted by telephone or through elect ronihe investor relies entirely on the counterparty to receive funds or to be able to trade out of a position. use the forex markets to manage the risks associated use the forex markets to manage the risks associated with fluctuations in currency risk of loss for individual investors who trade
rex contracts can be substantial. use the forex markets to manage the risks associated with fluctuations in currency rates. The risk of loss for individual investors who trade forex contracts can be substantial. The only funds that you should put at risk when speculating in foreign currency are those funds that you can afford to lose entirely, and you should always be aware that certain strategies may result in your losing even more money than the amount of your initial investment. Some of the key risks involved include: funds or to be able to trade out of a position.
• Quoting Conventions Are Not Uniform. While many currencies are typically quoted against the U.S. dollar (that is, one dollar purchases a specific amount of a foreign currency), there are no required uniform quoting conventions in the forex market. Both the Euro and the British pound, for example, may be quoted in the reverse, meaning that one British pound purchases a specified amount of U.S. dollars (GBP/USD) and one Euro purchases a specified amount of U.S. dollars(EUR/USD). Therefore, you need to pay special attention to a currency’s quoting convention and what an increase or decrease in a quote may mean for your trade Transaction Costs May Not Be Clear.
Before deciding to invest in the forex market, check with several different firms and compare their charges as well as their services. There are very limit addressing how a dealer charges an investor for the forex services the dealer provides or how much the dealer can charge. Some dealers charge a per-trade commission, while others charge amark -up by widening the spread between the bid and ask prices that they quote to investors. When dealer advertises a transaction as “commission free, you should not assume that the transaction will be executed without cost to you.
Instead, the dealer’s commission may be built into a wider bid-ask spread, and it may not be clear how much of the spread is the dealer’s mark-up. In addition, some dealers may charge both a commission and a mark-up. They may also charge a different mark up for buying a currency than selling it. Ready our agreement with the dealer carefully and make

 

 

 

Categories
Forex almasrey

Russia’s help for banks and the forex market

MOSCOW, Feb 24 (Reuters) – The Russian central bank beefed up the banking sector with extra liquidity and started to sell foreign currency on the forex market after the rouble fell to all-time lows on the day Moscow sent its troops into Ukraine. After weeks of denying plans to attack neigh bouring Ukraine, Russian forces fired missiles at several cities in Ukraine and landed troops on its coast on Thursday. [nL1N2UZ089]
The United States promised harsh sanctions, covering everything from Russia’s top banks’ operations with dollars to the energy sector should Moscow invade its neigh bour read more
And as Russia’s currency, bonds and stocks all tanked, the central bank intervened on the forex market for the first time since 2014, when Russia annexed the Crimea peninsula from Ukrain was not immediately clear how much forex the central bank was selling but the rouble pared some losses and moved away from an all-time low of 89.60 against the dollar and a crucial threshold of 100 versus the euro it was approaching in the morning.
“The military operation in Ukraine makes harsh sanctions unavoidable,” Raiffeisen bank said in a note. “The rouble crash was stopped by the central bank’s interventions but its potential for further weakening remains high “The regulator might have spent between $1 billion and $2 billion to support the rouble on Thursday, according to Proms vyaz bank analysts. The central bank is due to disclose the sum on Monday.
It also nearly doubled daily dollar offers under forex swap operations with banks to $5 billion, provided another 874 billion roubles ($10 billion) at a daily repo auction and expanded collateral options for its funds to secure its 300 lenders with additional funds.
As a precaution before the sanctions, Russian lenders brought $5 billion in foreign exchange bank notes to the country in December and increased liquidity coverage of their foreign exchange assets last month. read more
State-owned Sber bank (SBER.MM) and VTB (VTBR.MM) both said their operations continued as usual on Thursday, but the latter urged its corporate clients to refrain from dollar and euro transactions. read more
A number of Muscovites experienced troubles in withdrawing dollars and euros from ATMs in the centre of the city, and a cash machine in Moscow’s northeast stopped operating after a Reuters witness withdrew 20,000 roubles.
But no big ATM queues were seen in Moscow on Thursday. GOVERNMENT PLEDGES CONTROL While Russian officials say that Moscow’s financial shield is strong enough to withstand both the volatility and sanctions, new curbs would “weaken Russia’s economic base and its capacity to modernise European Commission chief Ursula von der Leyen said. read more
Russia ran a historic high current account surplus of $120.3 billion last year, its gold and forex reerves stand at a record $643 billion and debt-to-GDP level is below 20%.
“Russia has financial resources enough to maintain the financial system in the light of sanctions and external threats,” the government said on Thursday, adding that the budget has over 4.5 trillion roubles in available extra funds. MOSCOW, Feb 24 (Reuters) – The Russian central bank beefed up the banking sector with extra liquidity and started to sell foreign currency on the forex market after the rouble fell to all-time lows on the day Moscow sent its troops into Ukraine.
After weeks of denying plans to attack neigh bouring Ukraine, Russian forces fired missiles at several cities in Ukraine and landed troops on its coast on Thursday. [nL1N2UZ089] The United States promised harsh sanctions, covering everything from Russia’s top banks’ operations with dollars to the energy sector should Moscow invade its neighbour.
read morend as Russia’s currency, bonds and stocks all tanked, the central bank intervened on the forex market for the first time since 2014, when Russia annexed the Crimea peninsula from Ukraine.t was not immediately clear how much forex the central bank was selling but the rouble pared some losses and moved away from an all-time low of 89.60 against the dollar and a crucial threshold of 100 versus the euro it was approaching in the morning.
“The military operation in Ukraine makes harsh sanctions unavoidable,” Raiffeisen bank said in a note. “The rouble crash was stopped by the central bank’s interventions but its potential for further weakening remains high.”
The regulator might have spent between $1 billion and $2 billion to support the rouble on Thursday, according to Promsvyaz bank analysts. The central bank is due to disclose the sum on Monday It also nearly doubled daily dollar offers under forex swap operations with banks to $5 billion, provided another 874 billion roubles ($10 billion) at a daily repo auction and expanded collateral options for its funds to secure its 300 lenders with additional funds. As a precaution before the sanctions, Russian lenders brought $5 billion in foreign exchange bank notes to the country in December and increased liquidity coverage of their foreign exchange assets last month. read more State-owned Sber bank (SBER.MM) and VTB (VTBR.MM) both said their operations continued as usual on Thursday, but the latter urged its corporate clients to refrain from dollar and euro transactions. read more A number of Muscovites experienced troubles in withdrawing dollars and euros from ATMs in the centre of the city, and a cash machine in Moscow’s northeast stopped operating after a Reuters witness withdrew 20,000 roubles But no big ATM queues were seen in Moscow on Thursday.
GOVERNMENT PLEDGES CONTROL While Russian officials say that Moscow’s financial shield is strong enough to withstand both the volatility and sanctions, new curbs would “weaken Russia’s economic base and its capacity to modernise European Commission chief Ursula von der Leyen said.
read more Russia ran a historic high current account surplus of $120.3 billion last year, its gold and forex reserves stand at a record $643 billion and debt-to-GDP level is below 20%.”Russia has financial resources enough to maintain the financial system in the light of sanctions and external threats,” the government said on Thursday, adding that the budget has over 4.5 trillion roubles in available extra funds. read more The government drew up specific plans after conducting stress-tests to assess possible sanctions, saying in the statement that the “financial market and largest companies are fully ready to implement them”.
It did not provide details. But a Moscow real estate company urged its staff in an email marked ‘IMPORTANT’ on Thursday to use cards connected to the domestic MIR payment system, set up as an alternative to the western Visa and MasterCard payment systems after 2014.
“We recommend all our staff members to move their salary payments to the cards using this payment system,” the letter seen by Reuters said, adding that a decision to open such cards in Sber bank, and Alfa Bank should be taken by the end of the day. Register now for FREE unlimited access to Reuters.com Register Additional reporting by Andrey Ostroukh, Oksana Kobzeva, Dmitry Antonov, Darya Korsunskaya, Alexander Marrow and Olesya Astakhova Writing by Katya Golubkova Editing by Kim Coghill, Kenneth Maxwell, Emelia Sithole- Matarise and Nick Macfie Subscribe to our sustainability newsletter to make sense of the latest ESG trends affecting companies and governments.
Sign up Daily Briefing The government drew up specific plans after conducting stress-tests to assess possible sanctions, saying in the statement that the “financial market and largest companies are fully ready to implement them”. It did not provide details. Thursday to use cards connected to the domestic payment system, set up as an alternative to the western Visa and MasterCard payment systems after 2014.We recommend all our staff members to move their salary payments to the cards using this payment system,” the letter seen by Reuters said, adding that a decision to open such cards in Sberbank, VTB and AlfaBank should be taken by the end of the day.
Register now for FREE unlimited access to Reuters.co Register Additional reporting by Andrey Ostroukh, Oksana Kobzeva, Dmitry Antonov, Darya Korsunskaya, Alexander Marrow and Olesya Astakhova Writing by Katya Golubkova Editing by Kim Coghill, Kenneth Maxwell, Emelia Sithole-Matarise and Nick MacfieOur Standards: TS ustainable Switch Subscribe to our sustainability newsletter to make sense of the latest ESG trends affecting companies and governments Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers.

Categories
Forex almasrey

Trade forex using the internet Forex Trading

all you need to know! Forex trading, otherwise known as foreign exchange trading, is the process of buying or selling one currency for another. In some ways, forex is similar to buying and selling foreign currency when you go on holiday. You start with a base currency, i.e. your own, and you trade it for one used in the country you’re visiting. The amount of new currency you receive will depend on the exchange rate and the broker’s fees.
When you return from your holiday, you sell the currency back to the broker in exchange for your native currency. Again, the amount you receive will depend on the exchange rate at the time and any fees. If you’ve gone through this process, you’ll know that the rate is always changing.
For example, you could exchange money at a certain rate one day and find a better rate the next. This is because the value of currencies is constantly changing. Forex trading operates on a similar basis. Online trading accounts connect you to brokers that allow you to play two currencies off against each other. In other words, you’ll buy a base currency and watch its value change against the value of another. How Does Forex Trading Work? The basic premise of forex trading is fairly simple: you’re buying and selling currencies.  However, to make this possible, there have to be a few things in place.

Because this is an official, regulated type of trading, you can’t have two parties offering to exchange currencies as you would at a bureau de change. If you think back to our bureau de change analogy, you start with a pair of currencies: your native currency and the one you want to buy. In forex trading, currency pairs operate in a similar way.
All trades involve two currencies: the base currency and quote currency. This dynamic allows you to quote the value of one currency against another.
The base currency is always listed on the left and it sets up the question: how many XX does it take to buy YY?
For example, the currency pair as the base currency. With this pair, you’re looking at the relative value of GBP compared to USD or, in simple terms, how many USD it takes to buy GBP.
Why do we need currency pairs? If we go back to the basics of what forex trading is, the value of what you’re buying or selling is always in relation to another currency. Currency pairs allow for a point of comparison. The change in value between the two currencies is where you’ll make a profit or a loss. Therefore, without currency pairs, forex trading wouldn’t be possible.
Minor currency pairs have a lower trading volume than majors. This means the markets don’t offer as much liquidity. In other words, it’s not as easy to buy and sell these currency pairs quickly. That doesn’t mean it’s hard; it simply means that the liquidity (availability) is lower than it is for majors. The 14 minor currency pairs are: Crosses The US Dollar (USD) is the most powerful currency in the world.
As such, almost all major forex trades include USD in some form or another. If USD isn’t part of the currency pair, it can act as the settlement currency for a contract.
Any currency pair that doesn’t involve USD is known as a cross. The benefit of crosses in forex is that they could open up new opportunities. Because there is a lot of focus on USD, pairs that don’t rely on this currency may have untapped value. What’s more, when the USD is going through a rough patch, crosses can offer a more stable market. Exotic Pairs You don’t always have to trade currencies from established countries. Exotic pairs are made up of currencies from emerging or small (but strong) economies. These countries can be based anywhere in the world, but they tend to be in Africa, Asia, the Middle East and Pacific regions. Because exotics focus on less popular currencies, market liquidity is low. This, in turn, means executing trades can be tougher because there isn’t as much activity to facilitate buy/sell orders.
However, if you can become an expert on emerging markets, exotics can be profitable. A great analogy here is sports betting. Football is the biggest sport in the world and, as such, there are thousands of bets available (high liquidity). However, because it’s so popular, bookmakers are better at setting odds because they have more information at their disposal. In contrast, netball betting markets have low liquidity and the odds aren’t always as sharp because there’s less information. If you can become an expert at netball betting, you may stand a better chance of finding the better odds. The same is true when you compare major currency pairs and exotics. The Spread Forex brokers will quote two prices for each currency pair: the bid and the ask. The bid price refers to the amount you’ll sell a currency pair for. The ask price refers to the amount you’ll buy the currency for. For example, the bid price of GBP/USD might be 1.20402.
This is the price the person you’re trading with wants to sell that currency pair for. The ask price for GBP/USD might be 1.20410, which means the person you’re trading with will buy the currency pair for that price. The difference between these two figures is known as the spread. commission online forex brokers will make their money through spreads. Instead of charging a fee on each trade, they build their costs into the spread. Again, this is like a bureau de change. Instead of buying/selling currency at the daily market rate, they adjust their exchange rates in order to make a profit.
The Margi Forex trading, a margin is an amount of money that a trader has to put upfront in order to be able to take a certain position. This is generally expressed as a percentage of a total position. For example, if you were to take a $5000 position and had a 50% margin, you would need $2500 in cash.
Traders with better credit and a better relationship with their brokers can get lower margins. It’s very common for different types of transactions to have different margins available; this can actually vary quite widely. Additionally, margins can move up and down with any given broker for a large variety of legitimate reasons.
Lots A lot is a unit used to measure a specific amount of currency. Currencies around the world are traded in lots for simplicity’s sake. So, you could buy JPY (Japanese Yen), and notice offers of yen expressed in lots of xxx amount each.
Lots are a simple way of bundling something of value, like Forex. An analogy of this would be a trip to a supermarket to buy food. You buy stuff in pre-measured packages; such as products in cans, bottles, bags, or packets. These containers have a pre-arranged amount of product in them.
Leverage acts in tandem with the margin as it’s the amount of money you’re “borrowing” in order to facilitate a trade. You can calculate the leverage of a trade using the following equation:
Total value of the transaction / margin = margin-based leverage
So, in the above example, the value of the transaction is 100,000 and the margin is 3,000. This gives you a leverage of 1:33. In non-technical terms, you’re putting in one unit for every 33 the broker puts in.
Demo Accounts to truly understand the concepts we’ve outlined so far, you need to dive into the markets and start trading. What’s great about is that they offer demo accounts.
real thing apart from the fact you’re not able to make real money.
However, as a learning tool, demo accounts are fantastic.
Why Trade Forex? Now that you have a better understanding of what forex is, it’s worth asking the question: why should you trade forex online?
Lots of Trades for Lots of People The forex market is the largest in the world. More than $5 trillion worth of currencies are traded on a daily basis. Therefore, you’re never going to be short of a trading option. In comparison, trading stocks and shares on the New York Stock exchange provides comparatively fewer opportunities, particularly for novices, as the average trading volume is around $40 billion per day.
Availability and Accessibility
Forex trading is available 24/7. Trade any other type of asset and there will be market trading times you have to follow. Additionally, forex offers greater leverage than other types of trading. This means those with smaller bankrolls have a better chance of entering the market.
Best Forex Brokers Below, we’ve listed what we think are the best forex brokers online, based on various criteria. Every one of these brokers offers demo accounts and a low minimum trade value, and each one comes with its own unique selling points that help it stand out from the dozens of other online brokers out there. How to Become A Successful Forex Trader To become a successful trader, you have to do some research. Learn the basics and use demo accounts to master the art of executing traders. Bankroll management is also important. Never spend more than you can afford.
Moreover, don’t get seduced by leverage. Although leverage can be useful for opening larger mark positions, it’s a double-edge sword. Higher leverage can mean bigger losses when things go wrong.
Best Forex Trading Apps Most trading platforms come with their own dedicated apps to help you trade on the go. Below, we’ve listed the best Forex Trading apps based on their features, speed, compatibility and currencies available:
Forex Trading Risks enter a position with a small amount of money. However, it can also magnify your losses when things go wrong.
When you trade shares or commodities, the leverage is lower. This doesn’t mean your losses will be lower. However, the way in which any downswings are magnified will be less if the leverage is lower. Forex trading is always a high-speed form of investing. You need to choose a broker that has sufficient software to execute trades in the quickest time possible.
If there’s even a small delay between you initiating a trade and it being completed, the prices could change and that can affect your potential profit Why Trust Us
We’re experts in forex trading and only work with established, reputable and regulated brokers. Our trading guides are designed to give you the basics before you go off and try things for yourself. works and which one best suits your needs Frequently asked questions

 

Categories
Forex almasrey

China offers forex hedging tools

The yuan dropped roughly 4% against the dollar in April Staff Writer, Reuters News May 20, 2022 SHANGHAI – China’s foreign exchange regulator said on Friday it would offer new derivatives tools to help companies better hedge their currency risks, after recent huge volatility in the Chinese yuan.
The State Administration of Foreign Exchange (SAFE) will also make it easier for banks to conduct forex derivative business and encourage lenders to better manage forex risks themselves, according to a notice on SAFE’s website.
The announcement is designed to “further enhance the depth and breadth of China’s forex market, and help market participants better manage currency risks,” SAFE’s deputy chief Wang Chunying said in a statement. The yuan dropped roughly 4% against the dollar in April, a record monthly fall, and has fluctuated wildly this month.
Financial institutions in China, which currently can trade European-style currency options, will be allowed to trade American- and Asian-style ones too, so that they can better meet companies’ diversified hedging needs, SAFE said.

Banks are also encouraged to use derivatives to hedge their forex exposure, and regulators will allow more banks to conduct forex derivatives business. The forex regulator said it will continue to promote the “market neutral” mentality and the use of hedging tools, while discouraging one-way bets on the yuan. Currency hedging activities using derivatives jumped 59% by volume in 2021 from a year earlier, SAFE said. Reporting by the Shanghai newsroom; editing by Jason Neely and Hugh Lawson:
1. PROJECTS: Tunisia to start work on new stages of suburban railway project in capital
2. Ethiopia set to get its long-awaited stock exchange
3. Global debt hits record of over $305trln driven by China, US – IIF
4. VIDEO: The rising profile of India’s Adani Group in the Middle East
5. Egypt interest rates hike: There’s more to come, say analysts
RELATED ARTICLES Forex: Dollar selling takes a pause after bruising week Safe-haven dollar eases after Wednesday’s jump, but risk sentiment remains fragile Pound falls as UK inflation hits 40 years high Dollar rebounds after Fed’s Powell reaffirms hawkish outlook
Euro and sterling helped by improved market sentiment Value of assets under management in the Middle East rose 52% in last 3 years EQUITIES Egypt’s Orascom Construction Q1 net profit drops 45% as BESIX loss widens
EQUITIES Ethiopia set to get its long-awaited stock exchange TRAVEL AND TOURISM Millions more passengers to fly across Middle East, Africa in 2022 as air travel returns
LATEST NEWS Japan PM Kishida calls China’s development in E. China Sea ” unacceptable “Australian voters head to polls in close-run electi Russia makes early debt payment dash to dodge default Tesla brand threatened by Musk harassment claim, criticism of Democrats Wall Street ends mixed after punishing week

 

 

 

Categories
Forex almasrey

No to forex scams – forex

The forex market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose, such as retirement funds, as you can lose most or all it very quickly. The CFTC has witnessed a sharp rise in forex trading scams in recent years and wants to advise you on how to identify potential fraud.
Signs of a Possible Fraudulent Sales Pitch Lead you to believe you can profit from current news already known to the public. Made through word of mouth referrals or emails from friends and relatives, members of community organizations, churches, or social groups. Contacts you asking for personal information such as your name, phone number, and email and home addresses.
Promising that with forex there is no “down-turning market”. Possible Persuasion Tactics You May Experience Dangling the prospect of wealth and enticing you with something you want, but can’t have.
“This Euro/dollar deal is guaranteed to rise double what your current investments are doing.” Trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience “Believe me, as a 10-year senior vice president at this firm, I would never sell something that doesn’t produce.” Leading you to believe that other savvy people have already invested.
“This is how Bob down the street from you got his start. I know it’s a lot of money, but I’m in—and so is half our club. It’s worth every dime.” Offering to do a small favor for you in return for a big favor. i give you a break on my normal forex commission if you buy now—half off. Creating a false sense of urgency by claiming limited supply.
There are only two units left and the Asian market is about to open, so I’d sign up today.” Watch for These Red Flags to Help Identify Foreign Currency Trading Scams Promises that with forex, there is no “bear” market Firms that claim you can or should trade in the interbank market
Requests to send or transfer cash quickly via the Internet, by mail, or otherwise Difficulty getting background information about the person and/or company
Before Participating in Forex Trading, Ask, Ask, and Ask Some More!!Contact the CFTC to check the company’s registration status, business background, and disciplinary history Ask about the details of the forex trading market and your obligations if you participate
Ask about the firm and the individual’s performance record on behalf of other clients Ask anyone not willing to comply why they are being hesitant to do so Ask for all information in writing. Do not rely on oral promises or statements
Check all information you receive to ensure that the company is and does what it says it does Ask for a written risk disclosure statement Ask for the advice of an independent and licensed financial advisor or consultant whom you trust
If You Decide to Participate in Forex Trading Do not deposit more funds than you can afford to lose.
Do not mortgage your home or cash in your savings.
Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited. Do not trade forex if you cannot withstand the additional loss.
If you have questions, are aware of suspicious activities, or believe you have been defrauded, please contact the CFTC quickly. Call the CFTC at 866.366.2382 or file a tip or complaint.

 

Categories
Forex almasrey

How do currency markets work?

Currency markets work via a global network of banks, business and individuals that are constantly buying and selling currencies with one another. Unlike most financial assets – such as shares or commodities.
the foreign exchange market has no physical location and trades 24 hours a day his is called an over-the-counter market, and it means that currency prices are constantly fluctuating in value against each other, potentially offering a greater number of trading opportunities.
There are four main forex trading hubs: London, Tokyo, New York and Sydney. When trading stops in one, it starts in another.
Ow ever, forex is also traded across Zurich, Frankfurt, Hong Kong, Singapore and Paris.
At City Index, you can speculate on the future direction of currencies, taking either a long (buy) or short (sell) position depending on whether you think a forex pair’s value will go up or down. The below video shows you how to trade the EUR/USD currency pair via a CFD.
start trading forex, you’ll need to get to know a few key concepts and terms. Let’s take a look at each in turn Base currencies and quote currencies You’ll always trade forex in pairs.
That means when you buy one currency, you do so by selling another. And when you sell one currency, you do so by buying another. he you buy EUR/USD, for example, you’re buying the euro while selling the US dollar. The two currencies in a pair are known as the base and the quote.
A forex pair tells you how much of the quote currency you’ll need to exchange for a single unit of the base. If EUR/USD is trading at 1.1810, then you’ll need to sell 1.1810 USD to buy a single euro.
Forex traders look to take advantage of changes in the relative value of the base and quote currency in a pair. You could, for instance, buy euros for dollars when EUR/USD is at 1.1810. If the euro strengthens against the US dollar, then your euros will be worth more dollars – so can sell euros for dollars and keep the difference as profit.
If EUR/USD had dropped in price, though, you might have to sell your euros for less than you bought them. In this case, you would make a loss.
Pips, lots and margin Pips measure how much a forex pair has moved. A single pip is equivalent to a one-digit move in the fourth number after the decimal point. If EUR/USD moves from 1.1810 to 1.1817, it has gone up seven pips.
One key exception to this rule is when the Japanese yen is the quote currency. In this case, a pip is calculated as a one-digit move in the second number after the decimal point. If USD/JPY moves from 110.05 to 110.01, it has fallen four pips.
As you may have noticed, even a 50-pip move won’t earn you much if you trade 100 or 500 units of currency. That’s why most FX traders buy and sell forex in lots – batches of currencies that enable you to take advantage of even relatively small price moves.
A standard lot is equivalent to trading 100,000 units of currency. Buying one lot of EUR/USD means purchasing 100,000 euros for their value in US dollars. When CFD trading on forex, buying a single CFD is equivalent to trading one lot.
To avoid having to tie up all their capital when opening one position, most forex traders use leverage. With leverage, you only have to put upa fraction of your position’s full value to open a trade. The amount you are required to put up is known as your margin How to start trading forex
1. Choose a currency pair The first
step to opening a forex trade is to decide which currency pair you wish to trade. There are over 80 to choose from. Majors consist of the world’s biggest currencies against the US dollar, and make up around 85% of forex trading volume.
The majors are EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF and USD/CAD Minors are all the other combinations of the world’s biggest currencies, such as EUR/GBP and AUD/JPY. These are also often referred to as major cross pairs Exotics are pairs that include less-traded currencies, such as the Turkis most new traders will pick one or two major pairs to focus on, often starting out with euro-dollar (EUR/USD). This is the world’s most traded currency pair, and typically has the tightest spreads.
2. Decide how you want to trade forex
There are two main ways to trade forex: derivatives such as Spread Betting and CFDs, or spot forex trading. They all enable you to go long and short on currency pairs, but they work in slightly different ways. What are forex derivatives?
Forex derivatives are markets that enable you to speculate on the price movements of forex pairs without buying or selling any currencies. Instead, you’re trading a market that tracks the price of a forex pair.
What is spot FX? Spot FX is when you buy and sell currencies – for instance by buying US dollars and selling euros. You open your trade by deciding how much of the base currency you want to buy or sell. Spot FX is traded in lots, in the unit of the base currency