Set limit orders on the trading of stocks.
Avoid overtrading. Do not trade a large number of stocks at once.
Do not base decisions on daily ups and downs. Observe the long term trends. Avoid trading based on rumors.
Online trading is a good tool to earn a living as well as to supplement regular income. However, before venturing into online trading, an investor should carefully research on the risks associated with it and prepare for them
Wednesday, November 18, 2009
Benefits of Online Trading
Transparency: Online traders have complete information from the time of order placement till the final settlement. Every stage of online trading is subject to scrutiny, as this provides transparency to the trading process.
Best prices: Investors can get the best quotes for securities due to high transparency in the system.
Added convenience and liquidity: Online trading can be carried out anytime during business hours. This provides liquidity to investors.
Low commissions: Investors can make transactions frequently, without worrying about the burden of commissions. This makes day trading and short-term trading more feasible.
Best prices: Investors can get the best quotes for securities due to high transparency in the system.
Added convenience and liquidity: Online trading can be carried out anytime during business hours. This provides liquidity to investors.
Low commissions: Investors can make transactions frequently, without worrying about the burden of commissions. This makes day trading and short-term trading more feasible.
Dangers of Online Trading
Technology problems: This includes delays in transactions due to Internet connection outages or power failures.
A mentor’s absence: Lack of guidance from an experienced broker may lead to formulation of improper trading strategies, resulting in huge losses.
Overtrading: Online traders generally have a long term strategy before investing. However, the lure of capitalizing on short term movements makes them buy and sell more frequently. The low level of commission in online trading further lures the investors into day trading. This takes the traders away from their well-researched long term trading strategy, causing losses in the long run.
A mentor’s absence: Lack of guidance from an experienced broker may lead to formulation of improper trading strategies, resulting in huge losses.
Overtrading: Online traders generally have a long term strategy before investing. However, the lure of capitalizing on short term movements makes them buy and sell more frequently. The low level of commission in online trading further lures the investors into day trading. This takes the traders away from their well-researched long term trading strategy, causing losses in the long run.
How to Trade Online
In online trading, orders are implemented with the help of online trading platforms offered by various brokers. Investors place the orders directly on a broker’s site. The broker executes the orders on the stock exchange and makes payments on behalf of his clients. Brokers also provide their clients with market data, news and charts through their online platforms. This is done to help them in taking informed decisions. They charge software usage fees and trading commissions for their services. An investor can trade in more than one product or market through the same account and software.
Online Trading, Trade Online
Online trading is the process of buying and selling financial securities, commodities and currencies through the Internet. In order to trade online, investors need to exercise patience and use the right proprietary softwares provided by various brokers
Thursday, November 12, 2009
European Market
Later during the day trading, just earlier than the Asian trade hours comes to a lock, the European market takes above in custody the activity of the currency market. These FX exchange time sectors are extremely solid and include a number of major financial markets that could stand in as the representative capital. However, London eventually takes the honor in crucial parameter for the European market. Official trade hours in London are between 7:30am and 3:30pm GMT. Fore second time, although, this trading period is extended due to the presence of additional capital markets (counting Germany and France) before the certified open in the U.K.; while the conclusion of the meeting is pressed rear as instability holds awaiting for the London market to stick after the close. Therefore, trading in European market is seen successively from 7am to 4pm GMT.
Asian Trading Session
Asian Trading Session When liquidity is restored to the FX market following the weekend passes, the Asian market are obviously the initial to see achievement. Illegally, action from this division of the globe is represented by the Tokyo finances markets, which reside from midnight to 6am Greenwich Mean Time. However, there are a lot of other nations with substantial haul that are there through this period counting China, Australia, New Zealand and Russia, along with others. Taking into account how these scattered markets are, it makes sense that the commencement and end of the Asian sessions are stretched further than the normal Tokyo hours. Allowing for these unusual markets' action, Asian hours are calculated to run between 11pm and 8am GMT.
Wednesday, November 11, 2009
Central banks
National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high—that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.
The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[7] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.
The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[7] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.
What is the global Forex market?
Today, the “Forex” market is a nonstop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are continually and simultaneously bought and sold across local and global markets. The value of traders’ investments increases or decreases based on currency movements.Foreign exchange market conditions can change at any time in response to real-time events.The main attractions of short-term currency trading to private investors are:24-hour trading, 5 days a week with nonstop access (24/7) to global Forex dealers.
An enormous liquid market, making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising as well as falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.
A brief history of the Forex market
The following is an overview into the historical evolution of the foreign exchange market and the roots of the international currency trading, from the days of the gold exchange, through the Bretton-Woods Agreement, to its current manifestation.
The Gold exchange period and the Bretton-Woods Agreement
The Bretton-Woods Agreement, established in 1944, fixed national currencies against the US dollar, and set the dollar at a rate of USD 35 per ounce of gold. In 1967, a Chicago bank refused to make a loan in pound sterling to a college professor by the name of Milton Friedman, because he had intended to use the funds to short the British currency. The bank’s refusal to grant the loan was due to the Bretton-Woods Agreement.
Bretton-Woods was aimed at establishing international monetary stability by preventing money from taking flight across countries, thus curbing speculation in foreign currencies. Between 1876 and World War I, the gold exchange standard had ruled over the international economic system. Under the goldstandard, currencies experienced an era of stability because they were supported by the price of gold.
However, the gold standard had a weakness in that it tended to create boom bust economies. As an economy strengthened, it would import a great deal,running down the gold reserves required to support its currency. As a result, the money supply would diminish, interest rates would escalate and economicactivity would slow to the point of recession. Ultimately, prices of commodities would hit rock bottom, thus appearing attractive to othernations, who would then sprint into a buying frenzy. In turn, this would inject the economy with gold until it increased its money supply, thus driving downinterest rates and restoring wealth. Such boom-bust patterns were common throughout the era of the gold standard, until World War I temporarilydiscontinued trade flows and the free movement of gold.
California Mortgage Brokers And Lenders - Using Online Services
Those purchasing a home for the first time may be unfamiliar with tips and techniques for selection a good mortgagelender or broker. If buying a home, choosing the right broker makes a big difference. You have the option of completing a loan application with individual lenders, or opting to use the assistance of a mortgage broker.The Role of Mortgage Brokers in CaliforniaUsing a mortgage broker to find a fitting loan program is very beneficial. Each homebuyer has a different situation. Fortunately, there are many loans availableto help homebuyers achieve their dream. For example, if you have poor credit, it is possible to find a loan that is catered to those with low credit scores. Secondly, programs that offer closing costs assistance are available for those with little money.The responsibility of a mortgage broker is to match you with a potential lender. There are many mortgage lenders to choose between. Thus, selecting the right lender may be challenging. Besides, contacting each lender and inquiring of their loan programs is time consuming. If using a broker, you avoid the legwork.Mortgage brokers will gather all your personal information, and submit it to lenders for review. Within a few hours, you can expect mortgage quotes from lenders eager to have your business.
Newly purification gold
Are newly separated purification gold dust, silt and other impurities by the strong currents of water to remove sand and alluvial minutes, and minutes remaining gold in place because of the high density of gold has been used to dissolve gold mercury without sand and silt. Then finds gold from mercury Ptkotair latter. It also draws upon a gold mining copper and silver.There are chemical methods to extract gold, which emphasizes the way cyanide, or dissolve its alloys silver in sulphuric acid status, and are purifying gold nitric acid first, and then the electric analysis. Uses gold We have known gold emerged value since immemorial ages metal easily formed more than any other metal. In addition to the easy availability of gold in its image clean. The beauty of its gold, and corrosion resistance of metals has made him distinguished in the arts and crafts of different since ancient times. Given the relative scarcity, gold was used as currency, the basis for international financial transactions. The unit used in weight gold Alounsh the equivalent of 31.1 kilograms. One of the most important uses of gold now that uses a reserve currency. For several centuries ago, the gold and silver used Kaamlten used directly.During the nineteenth century, playing a new role as gold is the only basis for the currencies of most countries in the world where securities can be converted into gold. Since the seventies of the twentieth century, the gold is sold and bought in the market at prices UNSTEADY to a large extent, the relationship between gold reserves and the value of currencies indirect relationship to a considerable extent. It has become an increasing demand for gold in the very processes of industrialization. Because gold a good conductor of electricity and of high resistance to corrosion and erosion, it is of great importance in the manufacture of electrical circuits minute. If Azept small quantities of gold and placed in glass or plastic sheeting, they prevent the passage of infrared and serve as a protective heat effectively. Because gold is consistency chemical, it is used in machinery operating in the atmosphere leads to rust, as the metal surfaces prone to corrosion or erosion due to liquid or fumes. Gold is also used also in the form of paint chips in gold and gold writing. One derivatives used in gold glass color red. It uses potassium cyanide added to the gold in the gold paint, which are electrically. As well as gold used in medicine for proven compatibility with the body organs of living. It is used in the dental, and pharmaceutical packaging. As used isotopes of gold in biological research in the treatment of cancer. It uses the largest amount of gold produced in currency and jewelry. To meet these ends, the other metals, gold is mixing up the firmness required. And reflects the gold found in this jumble karats.
Forex Trading On Economic News
The creation and expiation of the Internet has resulted in a change in the way news is presented. Not only are individuals with computers and Internet able to get news faster, they are also exposed to a greater amount of world news than ever before. For those that are involved in foreign exchange trading this availability of news has helped many make millions.
Unfortunately, some new traders, encouraged by the success of others who have utilized the news, have attempted to make large trades based on economic news and have lost millions. Forex trading on economic news is encouraged and can be profitable but it takes experience and market understanding to make the best financial trading decisions.
Forex trading on economic news is trading that is done based on news reports that may affect a countries economy and currency. Economic hardship in a country might cause its currency value to drop while advancement might cause its value to skyrocket. Many Forex tradersthat are being influenced by news and using news reports to make decisions must be able to tell what news will actually make an impact on the market and which news items will have no effect.
Just because an economic expert might give an interview predicting doom that expert might not always be correct. Some investors involved in forex trading have learned to their sorrow that the opinions of an expert are not fact. They are merely the opinion of one person and it takes more than the opinion of one individual to change the entire market.
Unless the person giving you advice is your long time Forex broker that has rarely steered you wrong be careful when it comes to letting one's personal opinion influence all of your financial decisions. Remember, if that expert is wrong the only person who will suffer is you and that expert will more than likely be giving another interview the next day quickly revising their initial analysis.
When making forex trades based on economic news always base your speculations on how the majority of other investors are going to react to the news. It is the investors that will ultimately determine the fluctuations in the market. Be aware of the current news and try to determine how those involved in the market will take the news but unless you are an extremely experienced foreign exchange speculator do not attempt to invest on an assumption or a guess. Instead invest based on facts and actually prices.
A good way to conduct forex news trading is to simply be aware of the news and be prepared to react to what happens in the market. Try to plan for a worst case scenario and a best case scenario and prepared to go either way. Avoid taking economic predictions as fact and acting to early. Impulsiveness will often lead to financial losses if not ruin.
If you are new to the world of Forex trading take as many courses and read as much on speculation and how economic news affects Forex trading before attempting to use the news to determine your trades.
Unfortunately, some new traders, encouraged by the success of others who have utilized the news, have attempted to make large trades based on economic news and have lost millions. Forex trading on economic news is encouraged and can be profitable but it takes experience and market understanding to make the best financial trading decisions.
Forex trading on economic news is trading that is done based on news reports that may affect a countries economy and currency. Economic hardship in a country might cause its currency value to drop while advancement might cause its value to skyrocket. Many Forex tradersthat are being influenced by news and using news reports to make decisions must be able to tell what news will actually make an impact on the market and which news items will have no effect.
Just because an economic expert might give an interview predicting doom that expert might not always be correct. Some investors involved in forex trading have learned to their sorrow that the opinions of an expert are not fact. They are merely the opinion of one person and it takes more than the opinion of one individual to change the entire market.
Unless the person giving you advice is your long time Forex broker that has rarely steered you wrong be careful when it comes to letting one's personal opinion influence all of your financial decisions. Remember, if that expert is wrong the only person who will suffer is you and that expert will more than likely be giving another interview the next day quickly revising their initial analysis.
When making forex trades based on economic news always base your speculations on how the majority of other investors are going to react to the news. It is the investors that will ultimately determine the fluctuations in the market. Be aware of the current news and try to determine how those involved in the market will take the news but unless you are an extremely experienced foreign exchange speculator do not attempt to invest on an assumption or a guess. Instead invest based on facts and actually prices.
A good way to conduct forex news trading is to simply be aware of the news and be prepared to react to what happens in the market. Try to plan for a worst case scenario and a best case scenario and prepared to go either way. Avoid taking economic predictions as fact and acting to early. Impulsiveness will often lead to financial losses if not ruin.
If you are new to the world of Forex trading take as many courses and read as much on speculation and how economic news affects Forex trading before attempting to use the news to determine your trades.
Forex Megadroid Reviews-Forex Traning Accreditateon
Forex trading robot is increasingly becoming a popular aid of new forex traders. Thanks to net, forex trading is no longer restricted to enormous financial institutions. Retail financiers are entering the forex market in a big fashion with the plan of making money. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Forex trading is fast rising as a moneymaking option for many folks to make a living. The flexible trading hours of the Forex market has gave the chance for many to pursue trading on a part time basis also. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Thus once the trade signal is identified it is equally vital to act fast. Standard new entrants to the Forex market don't possess the requisite capacity to do all this.
A trading system developed for Metratrader is referred to as an Expert Advisor. When you make sure that Metratrader is kept on during the day the expert counsel will look after your trading. For such folks Forex trading robot is ideally appropriate. When you use robots there's no need to sit in front of computer all day. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The bots function on the idea of automated Forex trading software. The major benefit of this kind of a trading system is that one can perform the trades at any point of time during the day or perhaps during the night. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The automated trading system thus has this special edge over the trader. One can also trade on various systems, like in systems that depend on various kinds of indicators, or which can trade long or short time frames so that one can diversify their risk concerned together with smoothing out the equity curve and mitigating the drawdown involved.
Do a complete research of all the androids available and check out their features. It is preferable to go in for a forex trading robot, whose developers are prepared to display live trading transactions. Normally they permit new users to check out the system by accessing their website. To boldly display live accounts requires lots of confidence in the product's capability of providing consistent performance. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Failure if any in the live trading environment will to be viewed critically by potential purchasers. Therefore these products routinely deliver what they promise. Forex trading androids are advantageous in several ways.First of all since it is fully automated, it relieves the trader of hard work and stress. Second, it monitors the Forex market all of 24 hours so making certain that no profit making opportunity is lost. It is programmed to look for certain criteria. If the standards are met, the deal will be automatically executed. The robot can be rewarding if the forex system is completely programmable. Even if it physical trading or trading through the automated software, both need regular monitoring of the performance to cross check the performance during the current trading times as well as during the past.
Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Do you know that Forex market trading is no longer the domain of giant institutions alone. Forex trading androids need trading strategies that are absolutely mechanical.
A trading system developed for Metratrader is referred to as an Expert Advisor. When you make sure that Metratrader is kept on during the day the expert counsel will look after your trading. For such folks Forex trading robot is ideally appropriate. When you use robots there's no need to sit in front of computer all day. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The bots function on the idea of automated Forex trading software. The major benefit of this kind of a trading system is that one can perform the trades at any point of time during the day or perhaps during the night. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. The automated trading system thus has this special edge over the trader. One can also trade on various systems, like in systems that depend on various kinds of indicators, or which can trade long or short time frames so that one can diversify their risk concerned together with smoothing out the equity curve and mitigating the drawdown involved.
Do a complete research of all the androids available and check out their features. It is preferable to go in for a forex trading robot, whose developers are prepared to display live trading transactions. Normally they permit new users to check out the system by accessing their website. To boldly display live accounts requires lots of confidence in the product's capability of providing consistent performance. Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Failure if any in the live trading environment will to be viewed critically by potential purchasers. Therefore these products routinely deliver what they promise. Forex trading androids are advantageous in several ways.First of all since it is fully automated, it relieves the trader of hard work and stress. Second, it monitors the Forex market all of 24 hours so making certain that no profit making opportunity is lost. It is programmed to look for certain criteria. If the standards are met, the deal will be automatically executed. The robot can be rewarding if the forex system is completely programmable. Even if it physical trading or trading through the automated software, both need regular monitoring of the performance to cross check the performance during the current trading times as well as during the past.
Read on to see more about forex megadroid settings, and why forex megadroid is one of the best automatic robot. Do you know that Forex market trading is no longer the domain of giant institutions alone. Forex trading androids need trading strategies that are absolutely mechanical.
Three Ways To Autotrade Forex
The world of forex is huge, and very exciting, but can also be quite intimidating for those first venturing in for the first time. This is where it is really useful to sign up for an autotrade opportunity.There are many services on the web that offer this type of service, some better than others. There are really three main approaches to autotrading forex:Forex Robots - this is a system whereby software automatically makes all trading decisions based on a certain formula such as scalping, swing trading or trend trading.
You can have the software based on your own computer, which means that it has to be on, connected and running 24 hours per day. Or you can base the robot on a Virtual Platform, which you log into whenever you want. The robot runs fully automatically for 24 hours without interruption. This system has the least amount of human input - you simply set the software up, link it to your account, and let it run.
The most talked-about example of this type robot currently is FAP Turbo, which claims to be able to double a trading account in a month. Data on their website seems to indicate that this is true, and there are plenty of forum postings from users that are doing well from the system.Community based autotrading - a system whereby real human traders make the trading decisions.
You can log into the system, and do your research to find the most successful trader. You can then choose to have that trader's signals applied to your broker account. The system is totally anonymous - the trader does not know that you have selected him. If his system goes bad, you simply drop him and pick someone else. or you can spread your risk by having your account traded by several traders that you have picked for yourself. This system has a moderate amount of user input - a user has full control over the selection of signal providers, and can change them at any time.
Once a trading system has been selected and applied, the account is traded automatically. A good example of this type of system is that provided by Zulutrade. Started by two brothers from Greece, it has hundreds of traders and users, and can be applied to accounts with five different brokers.User controlled forex robot - in this system, the robot picks the trades, and the user selects the trades in which he wishes to participate. This system requires the most user input and attention, because the user must be connected and online in order to make timely decisions on picks generated by the robot. A good example of this is Fx Automoney, which has three services - intraday, daily and weekly.
The system can be fully automated, if the user selects that option.Autotrading forex is a useful alternative for those who lack the knowledge or experience in forex trading, or for those who do not have the time to devote to sufficient technical analysis or to monitor the news and world events. Selecting the right approach and the best system needs research into results and performance, as well as an understanding the systems and strategies involved
You can have the software based on your own computer, which means that it has to be on, connected and running 24 hours per day. Or you can base the robot on a Virtual Platform, which you log into whenever you want. The robot runs fully automatically for 24 hours without interruption. This system has the least amount of human input - you simply set the software up, link it to your account, and let it run.
The most talked-about example of this type robot currently is FAP Turbo, which claims to be able to double a trading account in a month. Data on their website seems to indicate that this is true, and there are plenty of forum postings from users that are doing well from the system.Community based autotrading - a system whereby real human traders make the trading decisions.
You can log into the system, and do your research to find the most successful trader. You can then choose to have that trader's signals applied to your broker account. The system is totally anonymous - the trader does not know that you have selected him. If his system goes bad, you simply drop him and pick someone else. or you can spread your risk by having your account traded by several traders that you have picked for yourself. This system has a moderate amount of user input - a user has full control over the selection of signal providers, and can change them at any time.
Once a trading system has been selected and applied, the account is traded automatically. A good example of this type of system is that provided by Zulutrade. Started by two brothers from Greece, it has hundreds of traders and users, and can be applied to accounts with five different brokers.User controlled forex robot - in this system, the robot picks the trades, and the user selects the trades in which he wishes to participate. This system requires the most user input and attention, because the user must be connected and online in order to make timely decisions on picks generated by the robot. A good example of this is Fx Automoney, which has three services - intraday, daily and weekly.
The system can be fully automated, if the user selects that option.Autotrading forex is a useful alternative for those who lack the knowledge or experience in forex trading, or for those who do not have the time to devote to sufficient technical analysis or to monitor the news and world events. Selecting the right approach and the best system needs research into results and performance, as well as an understanding the systems and strategies involved
Trading Forex - Chilean Piso
Since the beginning of the financial crisis, many less known currencies have been making headlines. Icelandic Krona became a poster child of the global turmoil, with many analysts claiming it was the proverbial straw that broke the camel's back and pushed financial markets over the edge. Iceland once prominent banking industry was destroyed, together with depositors from many countries.Most currencies, primarily in emerging economies, but not only, lost as much as 50% of value in relation to the US Dollar.
As money was seeking safety, Polish Zloty, Swedish Krona, Brazilian Real and scores of other currencies fell precipitously. Even Australian Dollar and New Zealand Dollar were punished. In the most extreme cases, like Zimbabwe, local currency virtually seized to exist.Largely overlooked by most analysts and the press was Chilean Peso (CLP). Peso was no exception last summer, following global trends. At the apex of the crisis it lost just above 50% of its value to USD, as measured from the yearly high.
This brought an end to a long bull market, which CLP had enjoyed since late 2002.Fortunes have changed for the Peso since beginning of 2008. While volatility, expressed by daily and weekly price ranges, remains in high historical ranges, CLP has appreciated 20% as compared to a dollar. This is a little more than currencies from other countries deemed as developing, with prospects for the most immediate future also bright.Peso is not pegged to USD, but its central bank has been following moves of FED, resulting in close resemblance of financial markets performance between the two countries.
For starters, in order to stimulate credit markets, benchmark rates have been cut by 7.75% this year. In this respect Chile is a leader among Latin American countries, with the region lowest rates at 0.50% and an all time record level for the country.While this low rates is a positive sign for the economy, as reflected by recent stock market performance, it could put some pressure on the Peso. Bank dealers have been reporting increase in the demand for dollars as some banks and investors move money to Brazil to benefit from the interest rates differential.
The carry trade between CLP and BRL. However, it is not expected to be a major trend because more money is flowing into Chilean equities from abroad.Main stock indices gained about 25% this year, with the Chile 65 electronic trading benchmark jumping 30%. Being an important producer of raw materials like copper, steel and lithium, Chile stands to benefit even more with any sign of world recovery. This should support CLP, as foreign investors continue to seek above average returns on country stock exchanges.
Furthermore, central bank is expected to start raising rates again soon, making any carry trade less appealing.Chilean Peso is not a mainstream currency. Most Forex brokers don't offer it and it has to be traded through banks. Also, the spreads are elevated, by currency trading standard, making it rather unsuitable for active trading. That said, anybody who likes exotics or seeks exposure to Latin America, should give CLP second look. Longer term it is appealing currency, especially if compared to others in the region.
As money was seeking safety, Polish Zloty, Swedish Krona, Brazilian Real and scores of other currencies fell precipitously. Even Australian Dollar and New Zealand Dollar were punished. In the most extreme cases, like Zimbabwe, local currency virtually seized to exist.Largely overlooked by most analysts and the press was Chilean Peso (CLP). Peso was no exception last summer, following global trends. At the apex of the crisis it lost just above 50% of its value to USD, as measured from the yearly high.
This brought an end to a long bull market, which CLP had enjoyed since late 2002.Fortunes have changed for the Peso since beginning of 2008. While volatility, expressed by daily and weekly price ranges, remains in high historical ranges, CLP has appreciated 20% as compared to a dollar. This is a little more than currencies from other countries deemed as developing, with prospects for the most immediate future also bright.Peso is not pegged to USD, but its central bank has been following moves of FED, resulting in close resemblance of financial markets performance between the two countries.
For starters, in order to stimulate credit markets, benchmark rates have been cut by 7.75% this year. In this respect Chile is a leader among Latin American countries, with the region lowest rates at 0.50% and an all time record level for the country.While this low rates is a positive sign for the economy, as reflected by recent stock market performance, it could put some pressure on the Peso. Bank dealers have been reporting increase in the demand for dollars as some banks and investors move money to Brazil to benefit from the interest rates differential.
The carry trade between CLP and BRL. However, it is not expected to be a major trend because more money is flowing into Chilean equities from abroad.Main stock indices gained about 25% this year, with the Chile 65 electronic trading benchmark jumping 30%. Being an important producer of raw materials like copper, steel and lithium, Chile stands to benefit even more with any sign of world recovery. This should support CLP, as foreign investors continue to seek above average returns on country stock exchanges.
Furthermore, central bank is expected to start raising rates again soon, making any carry trade less appealing.Chilean Peso is not a mainstream currency. Most Forex brokers don't offer it and it has to be traded through banks. Also, the spreads are elevated, by currency trading standard, making it rather unsuitable for active trading. That said, anybody who likes exotics or seeks exposure to Latin America, should give CLP second look. Longer term it is appealing currency, especially if compared to others in the region.
Tuesday, November 3, 2009
Dollar east exchange company
H & H - Pakistan's first Exchange Company. Granted license by the State Bank of Pakistan to carry out foreign exchange business. We also deal Dollar East Exchange Company (Pvt.) Limited is a leading exchange company in Pakistan. The company is one of the pioneers to start currency exchange business in the country. It was amongst the first companies to receive the license of money changer from State Bank when this business was regularized in 1992. When State Bank established exchange companies in Pakistan in 2002, Dollar East was the second exchange company to be awarded permission. It received exchange company License on 2nd May 2003 and commenced its operation on 7th July 2003. Under the exchange company license, Dollar East is authorized to deal in the business of currency exchange, travellers' cheques, notes, postal notes, money order, bank drafts and inward/outward remittances in a regulated environment. The company is authorised to set up its own branches or grant franchise arrangements for full range of services. The Company is also allowed to establish its own or franchised payment booths for inward remittances all over Pakistan. The company currently operates a network of 18 branches which are strategically located in all high potential areas. The company has aggressive plans to expand its branch network to other areas of Pakistan. The company also operates 3 payment booths in Rawalpindi, Mandi Bahauddin and Sahiwal and is also in the process of setting up franchised network of currency exchange booths and payment booths network in both rural and urban areas of Pakistan. in cash currencies, foreign remittanc
Core functions of state bank of pakistan
State Bank of Pakistan is the Central Bank of the country. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until 1st January 1974 when the Bank was nationalised, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today.
Under the State Bank of Pakistan Order 1948, the Bank was charged with the duty to "regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage". The scope of the Bank’s operations was considerably widened in the State Bank of Pakistan Act 1956, which required the Bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilisation of the country’s productive resources". Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. On 21st January, 1997, this autonomy was further strengthened by issuing three Amendment Ordinances (which were approved by the Parliament in May, 1997) namely, State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalisation Act, 1974. The changes in the State Bank Act gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments in Banks Nationalisation Act abolished the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and institutionalised the process of appointment of the Chief Executives and Boards of the nationalised commercial banks (NCBs) and development finance institutions (DFIs), with the Sate Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the Chief Executives and the Boards of Directors of banks and DFIs.
Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals. The traditional functions, which are generally performed by central banks almost all over the world, may be classified into two groups: (a) the primary functions including issue of notes, regulation and supervision of the financial system, bankers’ bank, lender of the last resort, banker to Government, and conduct of monetary policy, and (b) the secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions. The non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalisation of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamization of the banking system. The main functions and responsibilities of the State Bank can be broadly categorised as under.
Under the State Bank of Pakistan Order 1948, the Bank was charged with the duty to "regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in Pakistan and generally to operate the currency and credit system of the country to its advantage". The scope of the Bank’s operations was considerably widened in the State Bank of Pakistan Act 1956, which required the Bank to "regulate the monetary and credit system of Pakistan and to foster its growth in the best national interest with a view to securing monetary stability and fuller utilisation of the country’s productive resources". Under financial sector reforms, the State Bank of Pakistan was granted autonomy in February 1994. On 21st January, 1997, this autonomy was further strengthened by issuing three Amendment Ordinances (which were approved by the Parliament in May, 1997) namely, State Bank of Pakistan Act, 1956, Banking Companies Ordinance, 1962 and Banks Nationalisation Act, 1974. The changes in the State Bank Act gave full and exclusive authority to the State Bank to regulate the banking sector, to conduct an independent monetary policy and to set limit on government borrowings from the State Bank of Pakistan. The amendments in Banks Nationalisation Act abolished the Pakistan Banking Council (an institution established to look after the affairs of NCBs) and institutionalised the process of appointment of the Chief Executives and Boards of the nationalised commercial banks (NCBs) and development finance institutions (DFIs), with the Sate Bank having a role in their appointment and removal. The amendments also increased the autonomy and accountability of the Chief Executives and the Boards of Directors of banks and DFIs.
Like a Central Bank in any developing country, State Bank of Pakistan performs both the traditional and developmental functions to achieve macro-economic goals. The traditional functions, which are generally performed by central banks almost all over the world, may be classified into two groups: (a) the primary functions including issue of notes, regulation and supervision of the financial system, bankers’ bank, lender of the last resort, banker to Government, and conduct of monetary policy, and (b) the secondary functions including the agency functions like management of public debt, management of foreign exchange, etc., and other functions like advising the government on policy matters and maintaining close relationships with international financial institutions. The non-traditional or promotional functions, performed by the State Bank include development of financial framework, institutionalisation of savings and investment, provision of training facilities to bankers, and provision of credit to priority sectors. The State Bank also has been playing an active part in the process of islamization of the banking system. The main functions and responsibilities of the State Bank can be broadly categorised as under.
Devolopment role of state bank
The responsibility of a Central Bank in a developing country goes well beyond the regulatory duties of managing the monetary policy in order to achieve the macro-economic goals. This role covers not only the development of important components of monetary and capital markets but also to assist the process of economic growth and promote the fuller utilisation of a country’s resources.
Ever since its establishment, the State Bank of Pakistan, besides discharging its traditional functions of regulating money and credit, has played an active developmental role to promote the realisation of macro-economic goals. The explicit recognition of the promotional role of the Central Bank evidently stems from a desire to re-orientate all policies towards the goal of rapid economic growth. Accordingly, the orthodox central banking functions have been combined by the State Bank with a well-recognised developmental role.
The scope of Bank’s operations has been widened considerably by including the economic growth objective in its statute under the State Bank of Pakistan Act 1956. The Bank’s participation in the development process has been in the form of rehabilitation of banking system in Pakistan, development of new financial institutions and debt instruments in order to promote financial intermediation, establishment of Development Financial Institutions (DFIs), directing the use of credit according to selected development priorities, providing subsidised credit, and development of the capital market.
Ever since its establishment, the State Bank of Pakistan, besides discharging its traditional functions of regulating money and credit, has played an active developmental role to promote the realisation of macro-economic goals. The explicit recognition of the promotional role of the Central Bank evidently stems from a desire to re-orientate all policies towards the goal of rapid economic growth. Accordingly, the orthodox central banking functions have been combined by the State Bank with a well-recognised developmental role.
The scope of Bank’s operations has been widened considerably by including the economic growth objective in its statute under the State Bank of Pakistan Act 1956. The Bank’s participation in the development process has been in the form of rehabilitation of banking system in Pakistan, development of new financial institutions and debt instruments in order to promote financial intermediation, establishment of Development Financial Institutions (DFIs), directing the use of credit according to selected development priorities, providing subsidised credit, and development of the capital market.
Khanani & kalia international
Khanani and Kalia International (KKI) is a leading and trusted name in the business sector of Pakistan. Khanani and Kalia (KKI) being the pioneer of foreign currency business in Pakistan, nation as well as worldwide Khanani & Kalia International is a renowned name. Khanani & Kalia International is the first company which was awarded with the official license by State Bank of Pakistan to pursue as Money Changers. Now as per decision of State Bank of Pakistan, Khanani & Kalia International is among the early birds to receive the license of Exchange Business and hence, in 2003 it has been transformed as Exchange Company. It is an honor and pride for us that Khanani & Kalia International is the first ISO 9001 Certified Exchange Company in Pakistan. Its main and foremost objective is to facilitate and serve customers, with their best services throughout the country and at international levels as well. To fulfill the objectives, KKI has spread its network all over Pakistan. Khanani & Kalia International has its international correspondents over 22 countries in the world. Khanani & Kalia International facilitates people through the safest and securest means of transaction of money. We were and are playing our major role in increasing the Foreign exchange reserves, playing an effective role in combating against the money laundering along with the State Bank of Pakistan. One of the secrets of remarkable success that Khanani & Kalia International has earned in the last decade lies in excellent customer relations. The company has always strived hard to provide best quality of services and products to our customers and by the Grace of Allah we have succeeded in it, which is truly reflective by the customer base that Khanani & Kalia International holds today. Khanani & Kalia International believes IT is an innovative technique and a way to progress and prosperity and this is the reason KKI has a well established IT department. The use of IT leads to the new horizon of working, impacts the future growth and advancement of the organization, insures the maximum security of transaction and company provides the best possible services. KKI being innovative and unique in techniques of marketing, introduced the online services through its official websites; www.forexpk.com, www.kkionline.com. Forex mainly focuses at the market affairs and emphasize on the latest activities of money market and also other aspects of business, not only of Pakistan but the major markets of world as well. Forex is one of the most authentic source of currency market affairs and is among the pioneer of many online currency related services in Pakistan, like real time currency rates and currency rate archive, reviews and previews, Pakistan stock to world stock, local news to global news, online international currency trading facilities, analysis and a lot more. On the other hand, www.kkionline.com contains all the corporate information necessary for the visitors. This site has all the information about KKI and its products, thus enables the visitors to perfectly know about the company. KKI is unique not only for the IT system but also for appointing new and fresh blood as employees in the company. We believe in modernization and new horizons, this is the reason there is an access of younger generation in our organization. Young blood has a vision to touch the sky and with their ideas and collaboration KKI has been improving day by day and one day Inshallah we will touch the sky. Since KKI has been transformed to an international company, therefore, the management aims to adopt all the working procedures of the company systematically as per prevailing laws, SBP rules & regulations and present business environment. In this regard the Human Resource Department of KKI is actively performing and trying its best to get the proper systems implemented in all the departments of the organization.
Pakistani Dollar reserve rise
There is light at the end of the tunnel, and it is not an oncoming train.Pakistan's dollar reserves are climbing again and its currency stabilizing, after more than a year of monthly declines. The nation's foreign exchange reserves rose by $260 million to $10.21 billion in the week that ended on Jan. 24, according to the State Bank of Pakistan.This included $500 million Pakistan received from China to help build foreign reserves, said Syed Wasimuddin, chief spokesman for the Pakistan's central bankThis included $500 million Pakistan received from China to help build foreign reserves, said Syed Wasimuddin, chief spokesman for the Pakistan's central bank.Pakistan's foreign reserves hit a record high of $16.5 billion in October 2007 but fell to $6.6 billion in November, largely because of a soaring import bill. There has been a dramatic decline in the cost of imports such as oil during the last few months, spelling relief for Pakistan and other non-OPEC developing nations. The price of oil has dropped to about a quarter of what it was last summer.Pakistan signed a $7.6 billion loan agreement with the International Monetary Fund in November to stave off a balance of payments crisis. It received its first tranche of $3.1 billion that month. In its first assessment since November, IMF has expressed satisfaction with Pakistan's progress. “Initial developments under the program have been positive,” IMF spokesman David Hawley told a regular news briefing, according to Pakistan's Dawn newspaper. “The foreign exchange rate has appreciated somewhat and preliminary information suggests that end-December targets for net international reserves and net domestic assets at the State Bank of Pakistan were met,” he added.Pakistan's economy deteriorated sharply over the course of 2008, as inflation surged, and the current account deficits jumped on the back of rising oil and food prices, according to a World Bank report.The report titled ‘Global Economic Prospects 2009’ says political turmoil and ongoing security concerns have also taken a toll on Pakistan’s economy, while the global financial crisis added substantial downward pressures on its financial markets. The general deterioration in regional trade balances has been offset by large remittance inflows, which represent a sizable, and generally increasing share of GDP: during 2007, 14 per cent in Nepal, 8 per cent in Bangladesh and Sri Lanka, 4 per cent in Pakistan, and 3 per cent in India.Given strong underlying growth dynamics in South Asia, the negative feedback effects of the global financial crisis are expected to be temporary. A relatively rapid rebound is expected in 2010, with a projected revival of GDP growth to 7.2 per cent.“Investing in Pakistan is investing in future,” Prime Minister Gilani recently told leading businessmen in Dav, Switzerland, on the sidelines of the World Economic Forum. Gilani said Pakistan’s sound fundamentals offered the investors an opportunity to explore the country’s economic potential in diverse fields. He emphasized the need for more foreign investment coming into Pakistan and benefit from its investor-friendly economic policies. He said Pakistan’s liberal economic regime with zero import duty on raw material provided equal opportunities for the local and foreign businessmen. He said Pakistan was confronting a number of challenges including economic crisis, however the democratic government was determined to improve the situation.“Despite all the challenges, economy continues to be buoyant and vibrant in Pakistan,” the Prime Minister said, adding the country’s mineral and work-force resources had the great potential to be fully tapped.
Major markets
The US & UK account for more than 50% of turnoverMajor markets: London, New York, Tokyo
Trading activity is heaviest when major markets overlap
Nearly two-thirds of NY activity occurs in the morning hours while European markets are open 4 4. NY Federal Reserve
Average Daily Turnover by Country
What is the Difference Between Forex and Stock?
The Forex market has a lot of advantages compare to stock market:
A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.
Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.
Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.
If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.
In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.
A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.
Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.
Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.
If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.
In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.
Where do you start if you want to learn currency trading?
Well a good starting point is to look at just what Forex trading is and who the players in this market are. We should also think about just why you should be learning online Forex trading and thinking about starting you own online ForeThe Forex market (which is sometimes referred to as the FX market and for which the full title is The Foreign Exchange Market) was established as we know it today in 1971 following the demise of fixed currency exchanges. Forex currency trading is conducted around the clock, 5 days a week, and daily currency trades are worth in the region of $1.9 trillion US dollars. This means that the Forex the largest market in the world and puts the major stock markets very firmly into second place.
A world-wide market established to facilitate the buying and selling of currency, the Forex market involves large organizations, such as central governments, commercial companies and international commercial banks as well as smaller players such as brokerage houses and individual brokers.
There is no set location for the market (although there are major trading centers around the world in a number of cities such as London, Frankfurt, New York and Tokyo) but it is essentially an 'over-the-counter' market with the vast majority of trading being conducted by telephone and on the internet.x trading business
A world-wide market established to facilitate the buying and selling of currency, the Forex market involves large organizations, such as central governments, commercial companies and international commercial banks as well as smaller players such as brokerage houses and individual brokers.
There is no set location for the market (although there are major trading centers around the world in a number of cities such as London, Frankfurt, New York and Tokyo) but it is essentially an 'over-the-counter' market with the vast majority of trading being conducted by telephone and on the internet.x trading business
The Cash Foreign Exchange Market
The Forex market is a cash inter-bank or inter-dealer market established in 1971 when floating exchange rates began to materialize. The simplest definition of foreign exchange is the changing of one currency to another. In comparison to the daily trading volume averages of $300 billion in the U.S. Treasury Bond market and the less than $10 billion exchanged in the U.S. stock markets, the Forex market is huge; in September 1992 The Wall Street Journal estimated the trading volume at $1 trillion per day. Today, it is believed to have grown in excess of $1.5 trillion per day.
The most important foreign exchange activity is the spot business between the dollar and the four major currencies (British Pound, Eurodollar, Swiss Franc, and Japanese Yen). Participants in the market consist of five main groups: central banks, commercial banks, other financial institutions, corporate customers, and brokers.
The most important foreign exchange activity is the spot business between the dollar and the four major currencies (British Pound, Eurodollar, Swiss Franc, and Japanese Yen). Participants in the market consist of five main groups: central banks, commercial banks, other financial institutions, corporate customers, and brokers.
FOREX Is Tough But Potential Money-Making Opportunity
Trading foreign currencies is a tough task; however, it is potentially a money-making opportunity for those who are educated and are knowledgeable about their investments.
Nevertheless, prior to choosing to participate in trading in the Forex market, you should:
•Cautiously judge the purpose of investment
•Your familiarity with risk factors
Forex is meant for the money you put aside and are prepared to loose. It might not be a wise idea to Forex trade to pay your regular bills.
Forex (Foreign Exchange market) is an inter-bank market that got a form in 1971; this was the period when the international trade transited from fixed exchange rates to floating rates. This transition paved way for the set of transactions between forex market brokers relating to the exchange of specific sums of money in a currency unit for the currency of some other country at an approved rate for any specified date.
During any trade day, the exchange rate of one currency to another currency is decided basically by supply and demand – to which both parties will be in agreement. The price of a currency is mentioned in terms of one more currency.
he possibility of transactions in the international currency market is frequently increasing, which is due to growth of global trade and eradication of currency limits in many countries.
Online Forex is the one of the most innovative forex trading method of Foreign Exchange trading over the Internet. You can start trading with a basic account. Beware of margin trading because unless you are a careful market watcher trading with borrowed money can be risky.
The online forex trading method gives fast implementation of foreign exchange (Forex) trading through the Internet, with cutting edge software and well-organized trustworthy service guarantying an excellent trading experience
Nevertheless, prior to choosing to participate in trading in the Forex market, you should:
•Cautiously judge the purpose of investment
•Your familiarity with risk factors
Forex is meant for the money you put aside and are prepared to loose. It might not be a wise idea to Forex trade to pay your regular bills.
Forex (Foreign Exchange market) is an inter-bank market that got a form in 1971; this was the period when the international trade transited from fixed exchange rates to floating rates. This transition paved way for the set of transactions between forex market brokers relating to the exchange of specific sums of money in a currency unit for the currency of some other country at an approved rate for any specified date.
During any trade day, the exchange rate of one currency to another currency is decided basically by supply and demand – to which both parties will be in agreement. The price of a currency is mentioned in terms of one more currency.
he possibility of transactions in the international currency market is frequently increasing, which is due to growth of global trade and eradication of currency limits in many countries.
Online Forex is the one of the most innovative forex trading method of Foreign Exchange trading over the Internet. You can start trading with a basic account. Beware of margin trading because unless you are a careful market watcher trading with borrowed money can be risky.
The online forex trading method gives fast implementation of foreign exchange (Forex) trading through the Internet, with cutting edge software and well-organized trustworthy service guarantying an excellent trading experience
Subscribe to:
Comments (Atom)
