THE LIST OF THE FOREX YAHOO WEB HOSTING ARE AS FOLLOWS: THEY ARE: 1.Emerging Market Forex Strategy: The Peruvian New Sol GFT Forex 2.Foreign Currency Trading Services & Online Forex Trading 3.FOREX.com > Free 30-day Forex Practice Account 4.Quote.com - Stock Quotes, Charts and News - Quote 5.FOREX PERU 6.Forex Directory - Add URL 7.DealBook 360 : Forex Trading Software 8.Latin American Currencies in Forex Trading GFT Forex 9.Trafico on Line Peru Travel and Tourism Currency exchange THESE ARE THE FAMOUS WEB PAGE HOSTING AND ANY ONE CAN BE ITS MEMBER TO GET MORE KNOWLEDGE ABOUT THE FOREX AND ITS BUSINESS AND ACTIVITIES.
Trade on the forex market and the returns would be variable between 1% and 50% per month ROI.We can envisio a large investment company for the small investor that will also provide financial education and retirement plans. But it cannot scare people away when they hear forex or see the high return amounts and think scam.
Hi there, If ANYONE want serious forex traders then you should try in good forex forums and communities like FXStreet, Moneytec or Forex Social. You will surely find people there. Forex is not a frighting term but its a very lucrative opportunity. The great thing about it is the fact that you are trading currencies and that there aren't as many rules and regulations that will stop you from making a lot of money.Many of the The forex trader trading many years with finexo.com,may feel the major mistake newbies does is they start margin trading without knowing all strategies and concepts. So stay away from margin trading until you know and understand what you are doing. Although, trading forex is a great way to make a lot of money, it's also easy to lose a lot. So, be sure you educate yourself and practice.
Yes,surely you will frighten most people and they will consider what you are saying a scam.Those who are deeeply familiar with the FX market and for them this is no place to gather clients. Most people in this place are part of a helpful community dealing with questions and answers of life decisions. Build a web site and do your research on how to gather attention to what you are doing. Run local ads or talk to your friends. If you are successful at what you are doing others will come along through the performance you've proven with the people you've already serviced.
Margin Trading Foreign exchange is normally traded on margin. A relatively small deposit can control much larger positions in the market. For trading the main currencies, Saxo Bank requires a 1% margin deposit. This means that in order to trade one million dollars, you need to place just USD 10,000 by way of security. In other words, you will have obtained a gearing of up to 100 times. This means that a change of, say 2%, in the underlying value of your trade will result in a 200% profit or loss on your deposit. See below for specific examples. As you can see, this calls for a very disciplined approach to trading as both profit opportunities and potential risks are very large indeed. Please refer to our page for current Spreads, Margins and Conditions. Base Currency and Variable Currency When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other. The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this. Dealing Spread, but No Commissions When trading foreign exchange, you are quoted a dealing spread offering you a buying and a selling level for your trade. Once you accept the offered price and receive confirmation from our dealers, the trade is done. There is no need to call an exchange floor. There are no other time-consuming delays. This is possible due to live streaming prices, which are also a great advantage in times of fast-moving markets: You can see where the market is trading and you know whether your orders are filled or not. The dealing spread is typically 3-5 points in normal market conditions. This means that you can sell US dollars against the euro at 1.7780 and buy at 1.7785. There are no further costs, commissions or exchange fees. This ensures that you can get in and out of your trades at very low slippage and many traders are therefore active intra-day traders, given that a typical day in USDEUR presents price swings of 150-200 points.
The global foreign exchange market is the biggest market in the world. The 3.2 trillion USD daily turnover dwarfs the combined turnover of all the world's stock and bond markets. There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading. Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above. In the following article, we would like to introduce you to some of the basic concepts of foreign exchange trading. If you would like any further information,where you will be able to exchange views with other Forex traders and get answers to any questions you might have.
HERE is the some of the market and this can help ot strengthen the forex mfarket.The strong performance by the German ZEW confidence indicators led the way to a slight shift in risk appetite yesterday, with a strong day for European equities providing the impetus for Wall St to register gains in the 1% region. A softer reading for US housing starts and building permits was a mild dampener and it may be significant that the S&P failed to regain the 1,000 handle again. The greenback was pulled this way and that – weaker initially after the ZEW data but rebounding back to mid-range by the close following the housing data. One more cloud was the weekly ABC consumer confidence numbers which were below expectations but above last week’s readings. It is still unclear whether they confirm or rebut last week’s Michigan sentiment data.The UK CPI data was a disaster for the MPC, rising 0.3% m/m on the core reading and remaining stubbornly high despite the deep recession the UK is experiencing. However, as John points out, the details show gains in computer games, DVDs, alcohol and tobacco as the main culprits – more a sign of a “stay-at-home” consumer rather than one that is actively out spending. Nevertheless, today’s BOE minutes will be scrutinized to see if inflation talk was on the agenda and, if so, what measures/implications were mentioned. It may be worthy to note that incoming MPC member Posen said yesterday that any tightening of monetary policy in the near-term would be a mistake – “I hope nobody (BOE included?) tightens credit any time in the near future. That would be premature”.The CHF grabbed some headlines overnight after SNB’s Jordan said that the central bank would not tolerate a rising CHF, but were content with the EURCHF at current levels (it’s been 1.50-1.54 for the past five months). In addition, he added that the Swiss recovery would likely lag behind its neighbours, adding that it was not yet time to step back from its unconventional measures. Asia started this morning’s session with a better attitude to risk, hoping to extend the sentiment from Wall St. Indeed the Australian bourse was lifted by news that China had agreed an A$50 bln LNG contract with Australia last night, the largest single trade deal in Australia’s history. Australian trade officials were quick to assert that this was testament to strong trade relations between the two countries, despite the recent Rio Tinto headlines. However, by lunch the gains had been pared back and most bourses were back to flat or marginally in the red. EURUSD again looked a tad top-heavy above 1.4150 but managed to trigger stops above 1.4160 en-route to 1.4170, apparently disregarding a Telegraph article suggesting Germany is bracing itself for a second wave of credit crunch, and that the Economics Ministry and Bundesbank were drawing up plans for special measures in the event of such an occurrence. Nevertheless, the reversal in equities called a halt to the risk rally and most major pairings stalled below key resistance levels, notably the EUR still below 1.42 despite the stellar data yesterday.On the turn, GBP saw early aggressive selling which some linked to Asia focusing on reports in the Guardian and Telegraph that UK Opposition leader David Cameron had warned of the risks of a UK default on its debt. This story had been out late in the NY session and so others suggested the selling was more a case of a top fund booking profits and short-term speculators joining in.So, we head into Europe pretty much in limbo. With a relatively barren data slate on tap we will undoubtedly remains stock-watchers, though the particular bourse to monitor remains unclear. As mentioned above, the Bank of England minutes will probably attract the most attention closely followed by the CBI trends survey. German PPI and Euro-zone c/a balances and construction output also feature. North American data is limited to Canadian CPI and leading indicators and the weekly US MBA mortgage applications.
Talking about the banks,they also play the vital role in the forex trading .National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and interest rates and often have official or unofficial target rates for their currencies.This is the act that make the forex trading more strong. They can use their often substantial foreign exchange reserves to stabilize the market.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.This has made the forex trading more believable and economic and strong as well. 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. About 70% to 90%of the foreign exchange transactions are speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency. Hedge funds have gained a reputation for aggressive currency speculation since 1996. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favor. Investment management firms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases. Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades.
For any part of the business the companies plays the very important role in any development works.And the business sector too aid a alot in the field of forex.As the forex in the present world has been the major part,at the same time the business companies the vital role in the upliftment of the forex.An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.These commecial companies has thus in this way has assist in the foreign exchange and the large group had been benifited by this act.
Their is the great facilty in the banking system in the forex.The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account. Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.In this the broker had been the major problem but the forex easily solves it with out any problem.So the banking with the help of the forex had benifited to a lot of the people
This has been the great benifit to all the people as the forex had divided the markets in the level of access.Unlike a stock market, where all participants have access to the same prices, the foreign exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle.
The difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EURO). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the foreign exchange market are determined by the size of the "line" (the amount of money with which they are trading).
And it has helped alot of the people in their business. not only this it has also made people for the easy in the carrying on their business.The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail FX-metal market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the foreign exchange market to align currencies to their economic needs.
Most traded currencies Currency distribution of reported FX market turnover
Rank
Currency
% daily share (April 2007)
3
Japanese yen
17.0%
4
Pound sterling
15.0%
5
Swiss franc
6.8%
6
Australian dollar
6.7%
7
Canadian dollar
4.2%
8-9
Swedish krona
2.8%
8-9
Hong Kong dollar
2.8%
10
Norwegian krone
2.2%
11
New Zealand dollar
1.9%
12
Mexican peso
1.3%
13
Singapore dollar
1.2%
14
South Korean won
1.1%
Other
14.5%
Total
20
There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currencies instruments are traded. This implies that there is not a single exchange rate but rather a number of different rates (prices), depending on what bank or market maker is trading, and where it is. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. A joint venture of the Chicago Mercantile Exchange and Reuters, called Fxmarketspace opened in 2007 and aspired but failed to the role of a central market clearing mechanism.
The main trading center is London, but New York, Tokyo, Hong Kong and Singapore are all important centers as well. Banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.
Fluctuations in exchange rates are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in gross domestic product (GDP) growth, inflation (purchasing power parity theory), interest rates (interest rate parity, Domestic Fisher effect, International Fisher effect), budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow.
Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXX/YYY, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX is expressed (called base currency). For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.5465 dollar. Out of convention, the first currency in the pair, the base currency, was the stronger currency at the creation of the pair. The second currency, counter currency, was the weaker currency at the creation of the pair.
The factors affecting XXX will affect both XXX/YYY and XXX/ZZZ. This causes positive currency correlation between XXX/YYY and XXX/ZZZ.
On the spot market, according to the BIS study, the most heavily traded products were:
EUR/USD: 27%
USD/JPY: 13%
GBP/USD (also called sterling or cable): 12%
and the US currency was involved in 86.3% of transactions, followed by the euro (37.0%), the yen (17.0%), and sterling (15.0%) (see table). Note that volume percentages should add up to 200%: 100% for all the sellers and 100% for all the buyers.
Trading in the euro has grown considerably since the currency's creation in January 1999, and how long the foreign exchange market will remain dollar-centered is open to debate. Until recently, trading the euro versus a non-European currency ZZZ would have usually involved two trades: EUR/USD and USD/ZZZ. The exception to this is EUR/JPY, which is an established traded currency pair in the interbank spot market. As the dollar's value has eroded during 2008, interest in using the euro as reference currency for prices in commodities (such as oil), as well as a larger component of foreign reserves by banks, has increased dramatically. Transactions in the currencies of commodity-producing countries, such as AUD, NZD, CAD, have also increased.
Determinants of FX Rates
The following theories explain the fluctuations in FX rates in a floating exchange rate regime (In a fixed exchange rate regime, FX rates are decided by its government):
(a) International parity conditions viz:
purchasing power parity, interest rate parity, Domestic Fisher effect, International Fisher effect. Though to some extent the above theories provide logical explanation for the fluctuations in exchange rates, yet these theories falter as they are based on challenge able assumptions [e.g., free flow of goods, services and capital] which seldom hold true in the real world.
(b) Balance of payments model:
This model, however, focuses largely on trad able goods and services, ignoring the increasing role of global capital flows. It failed to provide any explanation for continuous appreciation of dollar during 1980s and most part of 1990s in face of soaring US current account deficit.
(c) Asset market model:
views currencies as an important asset class for constructing investment portfolios. Assets prices are influenced mostly by people’s willingness to hold the existing quantities of assets, which in turn depends on their expectations on the future worth of these assets. The asset market model of exchange rate determination states that “the exchange rate between two currencies represents the price that just balances the relative supplies of, and demand for, assets denominated in those currencies.”
None of the models developed so far succeed to explain FX rates levels and volatility in the longer time frames. For shorter time frames (less than a few days) algorithm can be devised to predict prices. Large and small institutions and professional individual traders have made consistent profits from it. It is understood from above models that many macroeconomic factors affect the exchange rates and in the end currency prices are a result of dual forces of demand and supply. The world's currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.
Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology.
At the present time, the foreign exchange market is one of the largest and most liquid financial markets in the world. Traders include large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements. Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.
Of the $3.98 trillion daily global turnover, trading in London accounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in New York accounted for 16.6%, and Tokyo accounted for 6.0%. In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.Exchange-traded FX futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.
Several other developed countries also permit the trading of FX derivative products (like currency futures and options on currency futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Most emerging countries do not permit FX derivative products on their exchanges in view of prevalent controls on the capital accounts. However, a few select emerging countries (e.g., Korea, South Africa, India) have already successfully experimented with the currency futures exchanges, despite having some controls on the capital account.
FX futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe.
Top 10 currency traders % of overall volume, May 2008
Rank
Name
Volume
1
Deutsche Bank
21.70%
2
UBS AG
15.80%
3
Barclays Capital
9.12%
4
Citi
7.49%
5
Royal Bank of Scotland
7.30%
6
JPMorgan
4.19%
7
HSBC
4.10%
8
Lehman Brothers
3.58%
9
Goldman Sachs
3.47%
10
Morgan Stanley
2.86%
Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues have made it easier for retail traders to trade in the foreign exchange market. In 2006, retail traders constituted over 2% of the whole FX market volumes with an average daily trade volume of over US$50-60 billion. Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFS L estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 34.1% in April 2007. The ten most active traders account for almost 80% of trading volume, according to the 2008 Euromoney FX survey.These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203 on a retail broker. Minimum trading size for most deals is usually 100,000 units of base currency, which is a standard "lot".
These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100/1.2300 for transfers, or say 1.2000/1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e., 0.0003). Competition is greatly increased with larger transactions, and pip spreads shrink on the major pairs to as little as 1 to 2 pips.
foreign exchange market (currency, forex, or FX) :
It is the trades currencies which let the banks and other institutions easily buy and sell currencies. The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The foreign exchange market is unique because of
its trading volumes,
the extreme liquidity of the market,
its geographical dispersion,
its long trading hours: 24 hours a day except on weekends (from 22:00 UTC on Sunday until 22:00 UTC Friday),
the variety of factors that affect exchange rates.
the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
the use of leverage
foreign exchange market turnover(1988 - 2007), measured in billions of USD.
As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks. According to the Bank for International Settlements,[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this. This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:
