Forex Exchange Blog

Jewel1359 asked:


Although it seems there is a relationship between Producer Price Index (PPI) and Foreign Exchange Market, I don’t know how exactly announcing PPI changes the market. Any suggestion?

NICKSON

Justin Stewart asked:


There are several factors that contribute to the forex market’s uniqueness. These are:

* Extreme liquidity of the market

* Geographical dispersion

* Larger numbers of traders (and the variety of) in the market

* Length of trading hours (24 hours a day, except on weekends)

* Lower profit margins compared to other fixed income markets (profits can occasionally be higher based on trading volume)

* Trading volume amounts

* Variety of factors directly affecting exchange rates

The forex market is considered to be the epitome of ideal or perfect competition. Based on statistics compiled by the Bank for International Settlements (BIS), average daily trading for this time of year stands at $3.21 trillion in volume. This volume was broken down into four categories, namely:

1. $1.714 trillion in forex swaps - OTC derivatives with short-term interest rates

2. $1.005 trillion in spot transactions - using one currency to purchase another for purposes of immediate rather than future delivery

3. $362 billion in outright forwards - agreements established between two parties to purchase or sell assets for a pre-agreed upon price

4. $129 billion in estimated reporting gaps

The concept of forex traded futures contracts came into being in 1972 at the Chicago Mercantile Exchange, and has progressively grown into the viable segment of the forex exchange that they are today. According to the Wall Street Journal, futures now account for approximately 7% of the total volume traded on the forex exchange.

In the past, the most significant growth in forex trading volume occurred between April of 2005 and April of 2006, when the market witnessed a 38% increase in the volume of trading, which equated to a doubling since 2001. It has been theorized that there were two significant factors contributing to this growth. One was that the foreign exchange has grown in importance as an asset class, and the other was the increase in the amount of fund management assets, namely hedge funds and pension funds.

Additionally, the onset of trading currencies on the internet has also grown in popularity by virtue of the internet platforms which has made it easier for retail traders to become more involved in the “trading” industry as well as increasing the forex traffic factors. And this was just one of the different trade execution venues that have come into being, although it is probably the most significant.

According to the Wall Street Journal Europe, 73% of the entire trading volume is the direct result of the 10 most active traders in the forex market. The chart below lists these 10 traders, their country of origin, their ranking, and their percentage of volume:

Rank

Name

Volume

1

Deutsche Bank

19.30%

2

UBS AG

14.85%

3

Citi

9.00%

4

Royal Bank of Scotland

8.90%

5

Barclays Capital

8.80%

6

Bank of America

5.29%

7

HSBC

4.36%

8

Goldman Sachs

4.14%

9

JPMorgan

3.33%

10

Morgan Stanley

2.86%

Interestingly enough, eight of the 10 listed hail from either the United States or the United Kingdom. Naturally, the Swiss bank is also one of these 10.



GACEK

masterforexuk asked:

For Private and Online Forex Training Visit

http://www.masterforex.co.uk

MONGAN

smak786110 asked:


I live in AFRICA..So if you can Give time in which the news site updates in AFRICAN TIme, will greatly appreciate.
I want it for FOREX and STOCK Exchange purpose, to see the latest BUSINESS NEWS, where no one else has still got them.

TRADER

lucstudent asked:


Banks offer about 5.0 percent return annually. Average Mutual Funds about 15 percent return annually. Bonds offer 4.8 percent return. Hedge Funds can yield over 30 percent return with insane risk and luck. All these numbers are wonderful, but is it that difficult or impossible to outperform all of these things, which are presumed to be nice investment tools (excluding hedge funds).

Anyone heard of foreign exchange or Forex? It allows you to play with margins of 1:1 up to 400:1, meaning for everyone dollar you put in there, they are willing to back that up with 400x of that amount. Nobody who trades with 400:1 really gets that far, because of the insane downside risk. However, trading with 50:1 have got me really far.

Over the past 5 months, I have made consistent gains of Approximately 8 percent a week as a position daytrader. I follow a guided strategy.

Based on this, if I invest $2500 over 104 wks, I have:
2500 x 1.08^104
I will have $7,481,877.

Unrealistic? Impossible? 5 months
Chinese sell-off. The only week that dented my account by 5 percent. That is as much of a DD as I allow. Whenever I lose 5 percent due to fundamentals. I wait out the fundamentals before I enter the market again. Only scenario where my strategy fail is breaking news and breakouts. I don’t have to trade breakouts but sometimes I do if I know how it’ll go.

I do plan to accept clients, but not through Y! Answers. I won’t be accepting clients til 2008, since I need 1 year to prove my strategy. Anyways, based on my analysis, I make good money in an uptrend, less money in a downtrend, and tons of money in a trading range.

SALTIS

theroyaleblood asked:


Do they ever accept checks? How do they work? Would appreciate any answer!

NICOLE

drjeewago asked:


forex = foreign exchange

COLSTON

Ravik asked:


Any good forex simulation software recommended by day traders / brokers in Australia, that’s different from the rest?

PITKIN

yashar asked:


How much did you invest and get from forex (foreign exchange)?
Have you ever lost all or most of your money?

OVIEDO

Nayana asked:


Last time when I travelled to UK, I got back with me few pences and Pounds (coins). I wanna know where I can exchange them in India. I enquired in Forex, they said they dont take coins.
I have lot of such coins. Wanna know where I can get them converted to Indian Currency.

SILVIO