Thursday, June 6, 2013

What is Forex Trading ?

What is Forex Trading  ? – An Introduction To Foreign Exchange Trading by Nial Fuller
A Brief History of the Foreign Exchange Market (Currency Market)
The creation of the gold standard monetary system in 1875 marked one of the most significant events in the history of the Forex currency market. As countries each attached an amount of their currency to be equal to an ounce of gold the changing price of gold between two currencies became the first standardized means of currency exchange in history.
World War I brought with it the breakdown of the gold standard due to the major European powers not having enough gold to exchange for all the currency that the governments were printing off at the time in order to complete large military projects. The gold standard was used again between the wars, but by the start of World War II most countries had again dropped it, however gold never lost its spot as the ultimate form of monetary value.
In 1944 the Bretton Woods System was implemented and led to the formation of fixed exchange rates that resulted in the U.S. dollar replacing the gold standard as the primary reserve currency. This also meant that the U.S. dollar became the only currency that would be backed by gold. In 1971 the U.S. declared that it would no longer exchange gold for U.S. dollars that were held in foreign reserves, this market the end of the Bretton Woods System.
It was this break down of the Bretton Woods System that ultimately led to the mostly global acceptance of floating foreign exchange rates in 1976. This was effectively the “birth” of the current foreign currency exchange, although it did become widely electronically traded until about the mid 1990s.
What is the Forex Market used for?
Forex trading involves transactions in which one party purchases a quantity of one currency by paying in a quantity of another currency. The Forex market is a global decentralized financial market for the exchange of currencies. Around the world various financial centers act as hubs for trading between a wide range of different types of buyers and sellers 24 hours a day, except weekends. It is the foreign exchange market that determines the value of one country’s currency relative to another.
The primary reason the Forex market exists is to facilitate international trade and investment by giving businesses the ability to convert one currency into another. As an example, a U.S. business can import goods from Japan and pay in Japanese Yen, even though the business is based in America and operates in U.S. dollars. The Forex market also provides a medium for speculation which works to add deeper liquidity to the market, making exchange rates less volatile. The “carry-trade” is facilitated via the Forex market, this is a trade in which investors can buy high-yielding currencies against low-yielding currencies and profit from the higher yielding interest rate.

What are the Benefits of Trading the Forex market?
Some of the many benefits of trading the Forex market include the following:
• Trading can be done from anywhere in the world with only an internet connection and a computer needed.
• Huge trading volume, this leads to dense liquidity making it easier to get in and out of positions at the price you want.
• Flexible trading hours; continuous operation 24 hours a day 5.5 days a week.
• Greater availability of leverage to enhance profit margins relative to account size than compare to other markets.
• Fewer variables to consider as compared to stock or commodity trading.
• No inherent market bias like the bullish bias stocks, this means greater opportunities to profit from the volatility in both rising and falling markets.
• Ease of accessibility and low start-up costs.
Advantages like the ones listed above and others are the reason why the Forex market has been referred to as the market closest to the ideal of “perfect competition”. According to the Bank for International Settlements, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, as of April 2010 a growth of approximately 20% over the $3.21 trillion daily volume recorded in April 2007.

Who Trades The Forex Market ?
• Large banks, central banks, and other financial institutions.
• Governments
• Currency speculators / Retail traders / brokers
• Institutional investors
• Corporations involved internationally
• Travelers / Tourists

What Are The Most Traded Forex Currencies ?
The most traded currencies by percentage of daily share as of April 2010 are:
1. United States dollar = 84.9%
2. Euro = 39.1%
3. Japanese yen = 19.0%
4. Pound Sterling = 12.9%
5. Australian dollar = 7.6%
6. Swiss franc = 6.4%
7. Canadian dollar = 5.3%
8. Hong Kong dollar = 2.4%
9. Swedish Krona =2.2%
10. New Zealand = 1.6%

How are Forex Rates Determined?
• Economic factors – These include: economic policy made by government agencies and central banks, and economic conditions as described by and through economic reports as well as various economic indicators.
• Political conditions – International, national, and regional political conditions and events can have a large impact on the Forex currency markets.
• Market Psychology – The psychology of market participants can influence the foreign exchange market in numerous ways. Ultimately all economic variables are expressed through the filter of the human brain / trader psychology
• Trading Algorithms – Electronic trading based on algorithms (or computer / robot trading) is become more and more popular, as a result algorithmic trading is starting to have a large effect on Forex currency rates.
What is Forex Trading?
Forex trading as it relates to individual retail investors and traders is the speculation of the future rate of a particular currency pair. For example, traders who think that the rate of the EURUSD will go up might may decide to buy, or go long, the EURUSD in the Forex market. If a trader thinks the currency rate or price will go down they will sell, or go short, the particular currency pair they are interested in. All Forex trading done by retail traders and investors must be facilitated by a Forex broker, there are many broker’s available on the internet, here is a list of the brokers we recommend here at LTTTM: Forex brokers.
Typically, Forex trading strategies can take a number of different forms, and it is really up to the individual trader to pick the method that works the best for them. However, these are a few of the more popular Forex trading methods:
• Indicator based trading methods – these trading methods involve analyzing “lagging” indicators to try and predict future price movement of a Forex currency pair.
• Robot trading systems – Forex trading “robots” have recently become quite popular on the internet, these robot trading systems are essentially computer programs that tell you exactly where to enter and exit and drastically reduce the need for human interaction.
• Scalping – This is a short-term trading strategy where traders jump in and out of the market quickly for small profits.
• Price action based directional trading – The trading method of price action is a Forex trading strategy that involves analyzing a “clean” or indicator-free price to chart make one’s trading decisions. The primary advantage of price action trading is that it makes use of the ‘core’ price data of the market; price, therefore it removes the clutter and confusion that other trading methods can bring, leaving your mind clear and calm.
Are You New To Forex Trading? – Check Out Our FREE Beginners Forex Trading Course Here
INTRODUCTION TO FOREX TRADING – CHAPTERS & SYLLABUS
Other Tutorials & Guides:
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Getting the most from your 336x280 ad unit

To ensure you are always getting the best results from your ad units, we recently introduced some updates to our ad serving process enabling our larger ad units to serve similar-sized display ads. We’ve already updated this for our 300x600 and 970x90 ad units and now we’ve extended this flexibility to our 336x280 ad unit, allowing it to serve a 300x250 ad when doing so will maximize the performance of that ad unit for the publisher.

With this change you may now occasionally see a 300x250 ad served in your 336x280 ad unit when that unit is opted in to showing image ads. 300x250 and 336x280 image ads will both compete for your 336x280 ad unit with the most competitive ad served thus maximizing the earnings on your ad unit. When a 300x250 image is served it will be centered in the 336x280 ad unit as illustrated below.
300x250 display ad served within a 336x280 ad unit
Aside from ensuring that you’re getting the most from your ad units, this change gives advertisers the opportunity to expand their reach with their existing ad creatives. To maximise your earnings potential with this change, don’t forget to enable both text and image ads for your ad units. You can opt out of having similar-sized display ads served in your ad units but remember this may impact your earnings. When you opt out, this applies on an account level and not just on an individual ad unit. To opt out, go to the Allow & block ads tab in your account, click the Ad serving tab in the top horizontal bar and select the block option under the “Similar Sized Display Ads” header. Tell us what you think about these new changes on our AdSense +page.
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Flood of leaked images suggest Nokia EOS smartphone with huge PureView camera





Images of an alleged Nokia EOS chassis have leaked from what appears to be a factory, lending some credence to previous rumors of a camera-centric handset from the Finnish outfit. Other shots from GSM Arena and a Twitter user called@ViziLeaks, (with exactly three tweets under that name) also show what looks like a Nokia Lumia 920 (right down to the position of the ports and buttons), but with an enormous camera bump that takes up almost half of the back cover. So far we've seen it leak out in yellow, red and black, and if it's real, looks to be the holy grail that many Nokia lovers have been seeking -- a Lumia 920 and Pureview 808 mashup, resulting in a 41-megapixel WP8 handset. All that giddiness aside, such a device could merely be a prototype and will stay a rumor until confirmed by Nokia -- meanwhile, you can check the source and coverage links below for many, many more images, and decide for yourself.
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Dispatch and Boxer aim to be your email apps of choice on iOS Mobile



Even though we have the likes of Sparrow and Mailbox already competing to be the one to handle email duties on your iOS device, chances are a couple more options wouldn't be frowned upon. Here's where the rebranded Boxer and newcomer Dispatch come in. The former, which was previously known as Taskbox, is an app that thrives largely on a swipe-based UI, while the latter describes itself as an "action-based" client that gives you quick access to a vast set of commands (delete, favorite, ignore, etc.). Where Dispatch hopes to stand out from the pack, however, is by making email accounts friendly with things like Evernote, Reminders, Calendar and others, which will then allow you to easily add items such as tasks, notes and scheduled events to those apps.

Boxer, on the other hand, touts a built-in to-do list feature and integration withDropbox, as well as support for a slew of providers -- including Gmail, Yahoo, AOL, Exchange and, with the latest update, Outlook. The Dispatch and Boxer applications are $2.99 (for a limited time) and $4.99, respectively, though Boxer ismaking its own app a gratis download for the first 10,000 folks who manage to grab it. Interested in either one? Well then, it's a good thing we have both links to the App Store down below -- take your pick.
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