A larger-than-expected Bank of Canada interest rate cut made the Canadian Dollar one of the worst performing G10 currencies on the week, but an outright tumble in the US Dollar left the USD/CAD marginally lower through Friday’s close. BoC officials surprised markets in lowering interest rates by a sizeable 75 basis points—signaling that domestic yields will likely fall harder than previously expected. Dismal economic data out of the US economy likewise dimmed Canadian economic outlook, and the Loonie continues to lose ground against major global counterparts on worsening fundamentals.

Fundamental Outlook for Canadian Dollar: Bearish

- Canadian Dollar tumbles on Bank of Canada interest rate cut
- DailyFX Analysts express theirviews on the Canadian Dollar

Forecasts for further deterioration in Canadian economic conditions will likely keep pressure on the Canadian dollar through the foreseeable future. Whether or not it is able to recover against the US dollar is another matter entirely, however; similarly gloomy outlook for the US economy leaves its currency in a similarly disadvantaged position. Short-term price action in the USD/CAD currency pair may subsequently depend on the trajectory in Crude Oil prices; the 50-day correlation between the USD/CAD and oil prices currently trades at its strongest levels in at least 10 years.

The Canadian economic calendar is otherwise unlikely to spark major moves in the USD/CAD, but traders should watch out for any surprises surrounding the highly-anticipated US Federal Reserve interest rate decision. The US central bank is expected cut interest rates to fresh record-lows in Tuesday announcement; the key question is how low rates can and will go. The ramifications of the rate decision will almost certainly be felt in all US dollar pairs and, importantly for the USD/CAD, in Crude Oil prices. It is difficult to predict how the Canadian dollar will react, but we expect significant volatility out of all US dollar-denominated forex pairs through the week’s price action. - DR


ForexGen offers three types of business partnerships:

• Introducing Broker
• White label
• Money Manager

Forex is an abbreviated name for foreign exchange. The Forex market is a non-stop cash market where the currencies of nations are bought and sold, typically via brokers. For example, you buy Euros, paying with U.S. Dollars, or you sell Euros for Japanese Yen. The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes can occur at any time, and often result from economic and political factors, such as the price of oil or political unrest. This article discusses the various steps in making a Forex trade.

Before we proceed, let us review the basics of Forex analysis. Currency market players typically use Forex analysis as a means of predicting currency price movements. Forex analysis is divided into two types: fundamental and technical. A fundamental analysis uses economic and political factors as a means of predicting currency movements. A technical analysis uses reliable historical data as a means of forecasting these movements. The technical analyst believes that history repeats itself over and over again. Some Forex traders depend on fundamental analysis while others depend on technical analysis. However, many successful Forex traders use a combination of both strategies. The important point to remember here is that no one strategy or combination of strategies is ever 100% certain.

Now we can proceed to discussing the various steps in making a Forex trade.

Through a combination of fundamental and technical analysis, you believe that the Euro will go up against the U.S. Dollar because of economic events. To activate the Forex deal, you need to buy Euros with U.S. Dollars. Therefore, your pair of currencies in this Forex transaction are the Euro and the U.S. Dollar.

Next, you determine the volume or the amount of the Forex deal you wish to make. You decide to buy 1 lot of Euros with U.S. Dollars. 1 lot is equal to 100,000 units of the base. Likewise, 2 lots are equal to 200,000 units of the base, 3 lots are equal to 300,000 units of the base, and so on.

You then check the bid price and ask price of EUR/USD. Like the stock market, the Forex market has a bid price and ask price. The bid is the price you can sell at. The ask is the price you can buy at. The bid/ask spread or simply spread is the distance between the bid and ask prices. In Forex trading, this spread is usually expressed in pips.

For this Forex trade, let’’s suppose that the bid price is 1.2362 and that the ask price is 1.2365. This means that you can you can sell 1 lot (100,000 units) of Euros for $123,620 or you can buy 1 lot of Euros for $123,650. In this example, the spread between the bid and ask prices is 3 pips wide (1.2365 - 1.2362 = 3 pips).

As stated above, you have decided to buy 1 lot of Euros for $123,650. However, you don”t have to come up with $123,650 in order to buy 100,000 Euros. You can buy 1 lot of Euros with a 1% margin at the price of 1.2365 and wait for the price to increase.

Margin is referred to as the collateral needed to facilitate the Forex deal. Usually, this is a very small portion of the entire deal, say 1% or 1:100. For this example, your margin would be $1,236.50. Please note that margin is a double-edged sword. Without the proper use of risk management tools that are discussed below, you can experience substantial losses as well as gains.

You determine stop-loss and take-profit rates. A stop-loss order is a market order to close a Forex position if or when losses reach a pre-set threshold. A take-profit order is a market order to close a Forex position if or when profits reach a pre-set threshold. We strongly suggest that you take advantage of stop-loss and take-profit options in your Forex trading. By using the take-profit and stop-loss options, your deal closes automatically, when and if such rates occur in the market.

With more than a trillion dollars rotating in the market every day, Forex is the largest currency exchange market today. Forex or FX is full of money earning opportunities when treated tactically, thus forex trading education is worth its importance.

There are many people in this world who want to do Forex trading. To start with trading people should always learn about Forex trading first. They should take proper education on trading. It is always advisable never to do trading without proper knowledge. With the correct Forex trading education, a person can work his own way towards trading and with a clear profit.

While many of you may still doubt the word “education” in trading, but the truth is forex trading education is one thing that can stop you from making harmful errors and stupid blunders.

The basic thing to know before starting trading is what is forex? It’’s basically known as foreign exchange. Forex is the immediate exchange of one country’’s currency for another. The trading should be done at the right time to gain profit. A person can learn all this with thorough Forex trading education.

The main part of trading education is to learn about the market conditions. As the scenario of the market keeps on changing, Forex trading education will help you observe these market conditions and how can they be favorable for you.

The second step of a good trading education is to know about the risk control and risk management. With education on this you can learn to manage yourself and your emotions do not overpower your thrill of the possibility of making money. It trains you how to control your losses.

One other vital part of Forex trading education is to know about how to open or manage your trading account. You should always start your trading with the demo account. With demo account there is no chance to lose money and it is just as realistic as the real trading account. Forex trading education will help you know when you can trade in the real world. It is suggested that you should open your live trading account only when you are prepared.

The various ways to get a trading education are:

- Online forex trading education, as there are many free websites available that provide free demo accounts for practicing.

- Free seminars, which are held and are available to participate in easily.

- Take advice from the people who are into trading from last many years. They will be able to provide complete overview on the trading topic.

The education provides complete information and knowledge to the people and makes trading easy for them.

ForexGen serves both private and institutional clients. We have a strong commitment to maintain a long term relationship with our clients.

Forex trading is finding an increasing number of takers all over the world these days. It is a truly global phenomenon that is happening in the largest market in the whole world. There are many other sectors that are involved with trading. Typically these sectors include individuals, corporations, governments and banks. You need to have at least a basic understanding of the working of the forex trading system and these sectors before you deal with trading on your own. The entire trading system though is simple enough to explain. It is to put it in a nutshell, trading one currency for another currency. Although this is the actual case, the entire forex trading system operates in a much more complex manner.

One of the reasons for the complexity of the system is because of the size of the market. The forex market is truly massive. Added to this is the fact that this huge market is also highly fluid. The complexity also increases manifold since there are hundreds of currencies that are being traded. This apart the values of all these currencies that are being traded constantly keep changing, adding to all the confusion in learning the system. It is because of all these complexities that when it comes to forex trading, most of the times, it is the large corporations that are successful and not individuals.

Forex trading is truly unique in it s own way. This is so because literally noone has access to all the prices of currencies and other information at the same time, unlike in the case of the stock market. There are in fact various levels of access to information that is usually given to forex firms and forex traders. Although the entire system is quite complicated it is here to stay for a long time, at least until the highly unlikely scenario of the whole world adopting a single currency. It is for this reason that experienced forex traders always advise people to set up a forex trading system through a trial and error method and then stick to it.

Another important thing that you need to know about forex trading is that you will get knowledge about the system only when you have gained enough practice. This is the reason why savvy forex traders always recommend beginners to begin trading with smaller accounts before graduating to bigger accounts, over a period of time.

ForexGen customer satisfaction is our major objective. To reach our business goals, we strive to put our client's goals in focus. We highly value our clients and always aim to exceed their expectations and cross the limitations encountered by the sophistication of the Forex trading industry.

Whether you call it Forex or Fx, you are talking about the Foreign Exchange market. This is where the trading of currencies, one against the other, is done. To have an idea just how big the action is, add all the stock exchanges in the world together and the Foreign Exchange will still be bigger!

When you consider that various speculators, hedge funds, governments as well as companies, plus countless private investors who take part, it is hardly surprising that this market is so strong and that the estimated daily average turnover of the foreign exchange market is over 3 trillion US Dollars.

With London, New York, Tokyo, Frankfurt and Sydney as the chief trading centres, the action hardly ever closes.

The spot rate, is by far the most asked for. This transaction has to be settled within two business days.

Bid, refers to the price at which the buyer is prepared to buy the currency. It is like when you are at an auction and you are putting your hand up to say you are willing to purchase something at that price.

Offer, means the price at which an amount of currency the seller is ready to sell.

Limit order, is when you give instructions to buy or sell a currency at a predetermined exchange rate.

Inter bank rates, means the bid and exchange rates when international banks buy and sell between themselves.

Spread, is the difference between the bid and ask price of a currency.

Stop loss, is when an order is given to purchase or sell a currency at a price level set by the client on a particular trade which if reached, will close out the particular position at the stated price.

Transaction date, is the date on which a foreign exchange trade is being done.

Settlement date, is the date which foreign exchange contracts settle.

Cable, is a name given to the US Dollar/British Pound rate in the foreign exchange market.

EFT, is the Electronic Fund Transfer which is the transfer of money between banks.

Every currency has a three letter code such as for the Euro (EUR), for the British Pound (GBP), for the US Dollar (USD), for the Japanese Yen (JPY), for the Australian Dollar (AUD), for the Swiss Franc (CHF), for the Canadian Dollar (CAD). Actually, these are the major trading currencies and all commonly traded currencies are called the majors.

When there is a quote in currency pairs, remember that the first currency is called the base currency. The second currency is called the counter currency. As an example when you get a quote GBP/USD at 1.96 it means that for one GBP you will get 1.96 USD. So for ten thousand pounds you will get nineteen thousand six hundred US Dollars.

The many foreign currency exchange companies which you can find on the internet will gladly give you a quote, and by phoning around you can find the best currency rates. They will be better than a high street bank is likely to offer and they will give you a very fast service. Furthermore, most of them will not charge you any commission or the cost of the electronic bank transfer.

Profile

• name: John Adam
• 

• Main
• archives
• Albums
• Links

• Euro Rises Against US Dollar, Testing Key Resistance
• After High-Profile Start, SC Limps to End of 2008
• Types of Forex Orders
• What Does Scalping Mean?
• Dollar Edges Higher vs Euro, Pound, Yen
• British Pound And Euro Technical Outlook
• Qimonda Set For Euro325 Million Bailout
• US Dollar Plummets as US 10-Year Treasury Yields Hit Record Lows
• Euro Soars Against US Dollar
• Forex Traders Push US Dollar to Key Support - Is the Correction Over?

Links

• Al Bawaba
• Al Bawaba Music

• General [9]
• forex market [16]
• forex [24]
• forexgen [36]
• trading [16]
• strategy [10]
• strategies [9]
• signals [5]
• profit [13]
• market [10]
• investor [6]
• manage [7]
• fundamental [7]
• technical [7]
• analysis [9]
• platform [8]
• business [4]
• money [8]
• pair [3]
• currency [7]
• terminal [1]
• ForexGen offers [2]
• ForexGen traders [1]
• offer [5]
• trading activities [1]
• enabled Premium [1]
• ZERO spread [1]
• special traders [1]
• Amazing [1]
• benefit [1]
• Traders [1]
• accounts [1]
• Pro [1]
• No Dealing Desk [1]
• NDD accounts [1]
• ForexGen NDD [1]
• 25% bonus [1]
• refer [1]
• friendship [1]
• earn bonus [1]
• millions [1]
• Japanese Yen [1]
• US dollar [2]
• euro [3]
• Holiday Trading [1]
• ForexGen Demo Account [1]
• Live Account [1]
• Trading Platform [1]
• Australian [1]
• New Zealand Dollars [1]
• Gain [1]
• Canadian Dollar [2]
• forecasted [1]
• economic [1]
• ForexGen Live Accounts Contest [1]
• financial markets [1]
• economic [1]
• ECB [1]
• U.S. markets [1]
• strategists [1]
• Swiss bank [1]
• ForexGen Services [2]
• ForexGen Partnership [1]
• Wall Street [1]
• Asian stock markets [1]
• foreign exchange [1]
• Demo Account [1]
• Japanese economic data [1]
• economic data [1]
• US dollar [2]
• Asian stock markets [1]
• Japanese Economic Indicators [1]
• ForexGen Adcademy [1]
• Mulyi Terminal [1]
• Lowest Spreads [1]
• AUDUSD [1]
• Expert Advisors [1]
• Canadian Dollar [1]
• Demo Account [1]
• Live Account [1]
• Euro [2]
• Forex market [1]
• Live Accounts Contest [1]
• Pound [1]
• Interest Rate [0]
• Scalping Enabled Account [1]
• economic news [1]
• CAD [2]
• USD [1]
• Demo Accounts Contest [1]
• ECB [1]
• ForexGen Academy [1]
• ForexGen Psychology [0]
• Canada [1]
• ForexGen Psychology [2]
• economy [2]
• Oil Prices [1]
• Wall Street [1]
• ForexGen Partnership [1]
• ForexGen Live Accounts Contest [0]
• ForexGen Live Accounts Contest [1]
• financial markets [1]
• Economy Ministry [1]
• British Pound Technical [1]
• Euro Technical [1]
• ForexGen Partnership [1]
• Dollar [1]
• scalping [1]
• Demo Accounts Contest [1]
• Forex Orders [1]
• Demo Accounts Contest [1]
• ForexGen Partnership [2]
• economic note [1]

• RSS 2.0
• Atom 0.3