#forex #trading #video
https://www.youtube.com/watch?v=_Umfo_J4HRY
Tuesday, April 11, 2017
Monday, April 10, 2017
Know Your Forex History!
Know Your Forex History!
At the end of the World War II, the whole world was experiencing
so much chaos that the major Western governments felt the need to create a
system to stabilize the global economy.
Known as the “Bretton Woods System,” the agreement set the
exchange rate of all currencies against gold. This stabilized exchange rates
for a while, but as the major economies of the world started to change and grow
at different speeds, the rules of the system soon became obsolete and limiting.
Soon
enough, come 1971, the Bretton Woods Agreement was abolished and replaced by a
different currency valuation system. With the United States in the pilot’s
seat, the currency market evolved to a free-floating one, where exchange rates
were determined by supply and demand.
At first, it was difficult to determine fair exchange rates, but
advances in technology and communication eventually made things easier.
Once
the 1990s came along, thanks to computer nerds and the booming growth of the
internet (cheers to you Mr. Al Gore), banks began creating their own trading
platforms. These platforms were designed to stream live quotes to their clients
so that they could instantly execute trades themselves.
Meanwhile, some smart business-minded marketing machines
introduced internet-based trading platforms for individual traders.
Known as “retail forex brokers”, these entities made it easy for
individuals to trade by allowing smaller trade sizes. Unlike in the interbank
market where the standard trade size is one million units, retail brokers
allowed individuals to trade as little as 1000 units!
Retail
Forex Brokers
In the past, only the big speculators and highly capitalized
investment funds could trade currencies, but thanks to retail forex brokers and
the Internet, this isn’t the case anymore.
With hardly any barriers to entry, anybody could just contact a
broker, open up an account, deposit some money, and trade forex from the
comfort of their own home. Brokers basically come in two forms:
1.
Market makers, as their name
suggests, “make” or set their own bid and ask prices themselves and
2.
Electronic Communications
Networks (ECN), who
use the best bid and ask prices available to them from different institutions
on the interbank market.
Market
Makers
Let’s say you wanted to go to France to eat some snails. In
order for you to transact in the country, you need to get your hands on some
euros first by going to a bank or the local foreign currency exchange office.
For them to take the opposite side of your transaction, you have to agree to
exchange your home currency for euros at the price they set.
Like in all business transactions, there is a catch. In this case, it comes in
the form of the bid/ask spread.
For
instance, if the bank’s buying price (bid) for EUR/USD is
1.2000, and their selling price (ask) is 1.2002, then the bid/ask spread is
0.0002. Although seemingly small, when you’re talking about millions of these
forex transactions every day, it does add up to create a hefty profit for the
market makers!
You could say that market makers are the fundamental building
blocks of the foreign exchange market. Retail market makers basically provide
liquidity by “repackaging” large contract sizes from wholesalers into bite size
pieces. Without them, it will be very hard for the average Joe to trade forex.
Electronic
Communications Network
Electronic Communication Network is the name given for trading
platforms that automatically match customer’s buy and sell orders at stated
prices. These stated prices are gathered from different market makers, banks,
and even other traders who use the ECN. Whenever a certain sell or buy order is
made, it is matched up to the best bid/ask price out there.
Due to the ability of traders to set their own prices,
ECN brokers typically charge a VERY small commission for the trades you take.
The combination of tight spreads and small commission usually make transaction
costs cheaper on ECN brokers.
Of course, it’s not enough to know the big guys in the biz. As
Big Pippin once said, “Trading requires timing.” Do you know WHEN you should
trade?
Sunday, April 9, 2017
Friday, April 7, 2017
Forex Market Players
Forex Market Players
Now that you know the overall structure of the forex market,
let’s delve in a little deeper to find out who exactly these people in the
ladder are. It is essential for you that you understand the nature of the spot
forex market and who are the main forex market players.
Until the late 1990s, only the “big guys” could play this game.
The initial requirement was that you could trade only if you had about ten to
fifty million bucks to start with! Forex was originally intended to be used by
bankers and large institutions, and not by us “little guys.” However, because
of the rise of the internet, online forex brokers are
now able to offer trading accounts to “retail” traders like us.
Without further ado, here are the major forex market players:
1. The Super Banks
Since the forex spot market is decentralized, it is the largest
banks in the world that determine the exchange rates. Based on the supply and
demand for currencies, they are generally the ones that make the bid/ask spread
that we all love (or hate, for that matter).
These large banks, collectively known as the interbank market,
take on a ridonkulous amount of forex transactions each day for both their
customers and themselves. A couple of these super banks include UBS, Barclays Capital, Deutsche Bank, and Citigroup. You
could say that the interbank market is THE foreign exchange market.
2. Large Commercial Companies
Companies take part in the foreign exchange market for the
purpose of doing business. For instance, Apple must first exchange its U.S.
dollars for the Japanese yen when purchasing electronic parts from Japan for their
products. Since the volume they trade is much smaller than those in the
interbank market, this type of market player typically deals with commercial
banks for their transactions.
Mergers and acquisitions (M&A) between large companies can
also create currency exchange rate fluctuations. In international cross-border
M&As, a lot of currency conversations happens that could move prices
around.
3. Governments and Central Banks
Governments and central banks, such as the European Central Bank,
the Bank of England, and
the Federal
Reserve, are regularly involved in the forex market too. Just like
companies, national governments participate in the forex market for their
operations, international trade payments, and handling their foreign exchange
reserves.
Meanwhile, central banks affect the forex market when they
adjust interest rates to control inflation. By doing this, they can affect
currency valuation. There are also instances when central banks intervene,
either directly or verbally, in the forex market when they want to realign
exchange rates. Sometimes, central banks think that their currency is priced
too high or too low, so they start massive sell/buy operations to alter
exchange rates.
4. The Speculators
“In it to win it!”
This is probably the mantra of the speculators. Comprising close
to 90% of all trading volume, speculators as forex market players come in all
shapes and sizes. Some have fat pockets, some roll thin, but all of them engage
in the forex simply to make bucket loads of cash.
Don’t worry… Once you graduate from the School of Pipsology, you can be part of this cool
crowd! Of course, how can you be one of the cool cats if you don’t even know
your forex history?
#Forex #elliotTheory #LearnForex #Tradewithus
Thursday, April 6, 2017
SSL FXGURU
SSL FXGURU is
a financial consultant in the Forex market. SSL
FXGURU has a team of
professional analysts and traders working with Dr.Hari and Dr.Vani and we are seeking to
expand our operations in Malaysia and Singapore with affiliations in the UK, US
and India.
We have a proven Forex
trading system which enables you to consistently profit from investing in the
forex market with a MONEY
BACK GUARANTEE!
The best part of this SYSTEM is you don’t have to be an EXPERIENCED TRADER nor a FOREX EXPERT to PROFIT from the forex market.
Just follow the market signals and methodology provided by SSL
FXGURU. Other
forex consultants only provide you the training but do not follow through in
ensuring that you actually profit from the forex market.
SSL FXGURU will actually provide you the signals on when to buy or sell
as well as coach you on how to manage your trading account.
Beginners will be guided
personally by Dr.Hari & Dr.Vani in using a DEMO account trading with
real-time signals in the actual forex market for at least a
month. Then, you sit for an examination so that Dr.Hari &
Dr.Vani know you know forex. Only when you’re comfortable with the trading system
and Dr.Hari & Dr.Vani are confident you understand trading and upon
endorsement from SSL FXGURU that you are qualified to
invest, ONLY then will you begin
trading with a LIVE account.
The moment you qualify to
trade you will be accepted into SSL
FXGURU BILLIONAIRE CLUB.
The objective of SSL FXGURU BILLIONAIRE
CLUB is to help you :-
i) Make USD 300,000.00
from USD 3,000 or Money Back Guarantee.
ii) Create Corporate
Identity Society (CIS) by donating 10% of the profit earned to Charity.
iii) Make the world a
better place to live with a network of successful millionaires guiding one
another to making their dreams a reality.
You’ll continue to receive
the signals so long as you are trading. SSL FXGURU is confident that our trading system will help you make
money that we even have a ‘money back’ guarantee (T&C) on your investment.
#JoinUS #StartForex
Subscribe to:
Posts (Atom)