The Use of Currency Trading Pairs

If you plan to go into forex, one of the most important points you need to understand is how currency trading pairs work. Although you are free to experiment and sift through other currencies where you can possibly make a profit, pairs in currency trading are the basics where you will base your trading plans from. If you are new in the field of currency trading, you should definitely consider being an expert with the currency pairs before you explore other fields.

In forex, currency pairs work by relating their values against each other. Each pair is composed of a base currency and a quote currency. The base currency is the first among the pair which is the target currency that you wanted to buy. Meanwhile, the quote currency is the second among the pair which tells you how much of it do you need to buy the base currency or the first one. Using the USD to Euro conversion, a quote presented as USD/Euro=.067 simply means that you will need 0.067 Euros to be able to purchase one US dollar.

Working with Currency Trading Pairs

To be able to plot out your plan in the forex business, you will constantly need to consult your own currency pairs. Among the most popular trading pairs are the combinations of US dollars and Euros, US dollars and Japanese Yen, US Dollars and Swiss Franc. Most of the forex traders use US dollars as their quote currency since it is the most widely used currency in the world. The Euro, Swiss Franc, and the Japanese Yen are among the highest yielding and also most volatile base currencies in the trading game.

As a forex trader, it is your responsibility to keep track of currencies individually. In reality there really are no hard and fast rules about currency pairs. You are the one who gets to ultimately decide which of these pairs you plan to keep an eye on and develop. But it helps to have a separate track of these currencies individually so that if a raise occurs in each of them, you can easily form your pairs and make a sell or buy them at the soonest possible time. The thing about currency pairs is that they may not last as long as you would like them to. Sometimes, you need to make quick pair ups to keep ahead of the game.

Choosing the Best Currency Trading Pairs

As mentioned, there are actually no limits to which currencies must be paired against each other. What it takes is a watchful eye and keen observation to make sure that you have the right combination to trade in the currency market. But if you are a newbie and you are still trying to gain your momentum in the currency market, it will be good to stick with major currencies, such as dollars and euros, as your quote currency.

Although these currencies fluctuate as much as the others, they are also the more frequently used. These currencies will help you develop your own style when it comes to scouting the currency trading game since they are widely used. It is also a good idea to keep only two pairs at a time and gradually increase as you gain more confidence in buying and selling your existing currencies.

Buying Gold Coins

Should you be buying gold as an investment today? I wouldn't because the price of gold has been extremely volatile lately and if you get in at the top, it's like getting in at the top of the real estate, stock and any other market, any gains may be lost. If you're going to go into the gold market, the rules are the same as any other investment, it's best to go in a little at a time. Invest the same amount of money every month and any ups and downs will be smoothed and you won't be concerned by the violent swings.

There are other reasons to buy gold besides making a killing in the market. Even conservative investors should have some gold in their portfolio no matter what the market is doing. Not necessarily as an investment, but as insurance. In worst case scenarios, gold will always be worth something, in the best case, gold will be worth more than cash that's in the banks and stocks.

What kind of gold do you buy?

Isn't gold, gold? There are gold coins, gold bullion, antique gold coins, gold stocks, gold mines, futures and commodities markets, stocks and funds that invest in gold mining and equipment that's used to mine gold and precious metals.There are American gold coins and several countries produce gold coins of some sort and in several different denominations, sizes and quality.

Should you buy gold online?

How do you know an online dealer is reputable? The same way you know a brick and mortar gold dealer is reputable. Check the Better Business Bureau, check with independent sources from Internet, family and friends. If they've only been in business a short time, be extra wary, but even established dealers have been known to have problems.

One of the several questions you should be considering is if you want to keep the gold yourself or have the dealer keep it for you. If you're extra cautious and want to ensure your gold is actually in your hands instead of a piece of paper saying it's in a vault somewhere, you may be paying a premium for shipping and insurance. This is another good reason to buy small quantities spread over time. Then there's safety deposit rental if your bank doesn't provide one for free.

What about gold confiscation?

A major reason given for buying gold coins instead of bullion is that in America's history, the government confiscated all gold bullion and reimbursed citizens in paper dollars for their gold, whether they liked the price or not. This law is still on the books and is still a valid law that many, especially now are particularly worried about. An exemption was made during the confiscation for dentist gold, gold jewelry and coins that had intrinsic value to collectors. Does this mean the American Eagle gold coin series has intrinsic value to collectors? New American Eagle gold coins are considered bullion and may be subject to confiscation. If that's a particular concern, ensure you're buying antique gold coins. Those coins come with a hefty premium, dealers and brokers know that and try and push the sell of old gold coins for exactly those reasons.

Selling your gold is the easy part. Because it's gold, you can sell it any time and anywhere in the world. There are always dealers in any decent sized metropolitan area, but like any insurance policy, you shouldn't cash it in unless you absolutely need it.

Forex Trading- What you should know about it

There are a lot of opportunities online now a day where one can make a living and in some cases make a serious income which will enable them to quite their day job. These online opportunities include affiliate marketing, multi-level marketing, paid survey, online investment and the list goes on. Among the opportunities, foreign currency exchange or better known as Forex Trading is one that many online income opportunity seekers looking for.

However there are a lot of things and aspects should be considered before one decides to make forex trading as their prime online business. A better understanding of the forex industry and how forex trading operates are important.

Foreign exchange market
Foreign exchange market is the place where currencies are trade. Banks (commercial and central bank) and financial institutions will facilitate the buying and selling of foreign currencies transaction activities here. Other financial institutions include currency speculators, corporations and other institutions.
The main purpose of the forex market is to facilitate international trade and investment. Major currencies traded are US Dollar, Pound Sterling, Euro, Japanese Yen,etc. The continuation growing of the daily volume in global foreign currency exchange market and its related markets have make forex market one of the largest financial market in the world.

Foreign Exchange Rate
Forex rate are determine by floating exchange rate and fixed exchange rate. Fixed foreign exchange rate are decided and fixed by its government. Under floating exchange rate system, forex rate will be fluctuating according to the demand and supply of the particular currency. If the demand (buying) for a certain currency is more than what its supply (selling), its rate will be higher. There are 3 major factors which determine the buying and selling of a currency. There are Economic factors, Political conditions and Market psychology. However, these things tend to be short-term, and don't affect it for long.

Margin Account
To trade in foreign currency exchange, a bond account called margin account should be open. It’s like a saving account where you should deposit certain amount of money in it before you start your forex trading activity. This account will be overseen and monitored by your broker. Different brokers require different amount of margin money to keep your positions open.Normally your broker will not allow you to risk more than what is in your margin account.

How foreign currency is trade
Foreign currency trading occurs when one country's currency is traded for another country's currency at the prevailing exchange rate.Currency is trade in LOTS. Each lot has amount of currency and its trade on a point or pips system. Different currencies have its worth of amount for each point or pips.

Advantages of Forex trading over other types of investment
As compare to other type of investments, Forex trading has the following advantages:
i) Lower margin
ii) No commission and exchange fees
iii) Lower risk
iv) 24 hour market place
v) Free market place

Conclusion
Lots of people make money on online forex trading; some people have become extremely wealthy however as with any online business opportunities, there are no guarantees that you will make money or lose everything you own. You need to be very careful and exercise due diligence. Learn as much as you can about online Forex trading before investing any money and start trading.

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PDA Mobile Forex Trading

Apakah Anda pengguna PDA dan ingin memantau pergerakan Trading forex anda melalui PDA phone atau Pocket PC anda dimanapun Danda berada dan kapanpun dengan menggunakan sinyal GPRS ato Packet data...disini akan diberikan sebuah Aplikasi / software format file nya adalah .CAB dan Anda bisa download aplikasi forex trading untuk mobile dengan gratis

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Mobile trading (m-trading) — controlling of trading account via mobile devices such a cellular phone or a PDA (Personal Digital Assistant). Wireless access technologies WAP and GPRS provide access to the Internet.

System requirements: PDA, Windows Pocket PC 2002 or higher.

MetaTrader 4 Mobile for Pocket PC program is comparable with full-function trading terminal. You have a possibility of full access to financial markets and making deals from anywhere of the world. Moreover, technical analysis and graphical visualization of financial instruments are available (including off-line mode - without connecting to server). Trade dealing is done with careful observation of confidentiality and is absolutely safe. If required, you always have the history of completed trade deals.

Never Let a Winner Turn Into a Loser

One of our cardinal rules of trading is to protect your profits - even if it means banking only 15 pips at a time. To some, 15 pips may seem like chump change; but if you take 10 trades, 15 pips at a time, that adds up to a respectable 150 points of profits. Sure, this approach may seem as if we are trading like penny-pinching grandmothers, but the main point of trading is to minimize your losses and, along with that, to make money as often as possible. The bottom line is that this is your money. Even if it is money that you are willing to lose, commonly referred to as risk capital, you need to look at it as "you versus the market". Like a soldier on the battlefield, you need to protect yourself first and foremost.
 

Euro slips on EU debt woes, Asian stocks soft

SINGAPORE (Reuters) – The euro slipped on Wednesday on nagging worries about festering euro zone debt problems despite a $1 trillion rescue package unveiled this week, which fueled a short-lived rally in global stocks.
Sterling held its overnight gains after Conservative party leader David Cameron took over as British prime minister after securing a power-sharing agreement between his center-right party and the smaller Liberal Democrats.
In Tokyo, the Nikkei average (.N225) edged up 0.5 percent, but gains were capped by continued foreign selling of Japanese stocks on concerns that the euro zone relief package did little to resolve the region's longer-term debt problems.
"Since the start of this month, foreigners have really been selling Japanese stocks, partly because Japanese markets were closed for holidays and foreign markets fell during that time, and partly because the Greek debt crisis really worsened," said Hideyuki Ishiguro, a strategist at Okasan Securities.
"At this point, I don't think a lot of this money is flowing into other Asian share markets. It's probably going into U.S. Treasury bonds and gold as part of a shift from riskier assets."
Orders for Japanese stocks placed through 10 foreign securities houses before the start of trade on Wednesday showed selling for a fifth straight day.
MSCI's index of Asia-Pacific shares outside Japan was little changed (.MIAPJ0000PUS), a day after falling just over 1 percent, though most major markets in the region were weaker, following modest losses on Wall Street. (.N)
Benchmark indexes in Hong Kong (.HSI) and South Korea (.KS11) fell by as much as 0.6 percent, but Australia (.AXJO) advanced more than 1 percent as its federal budget boosted banks.
On Monday, the MSCI ex-Japan index climbed 3.6 percent -- its biggest single-day percentage gain since May 2009 -- fueled by hopes that the massive rescue package would prevent Greece's debt crisis from spreading to other countries in the euro zone and possibly sparking another global credit crunch.
But the global rally quickly fizzled on Tuesday as worries resurfaced that Greece and other heavily-indebted euro zone members will not be able to deliver on promises of deep spending cuts.
The euro was trading around $1.2636, down 0.2 percent from late U.S. trade, but off a 14-month low of $1.2510 hit last week.
One near-term downside target for the euro may be around $1.2580, near Friday's low, one trader said.
Sterling hovered near $1.4898 after rising above $1.5000 on Tuesday.
The Conservatives and the smaller Liberal Democrat party agreed on Wednesday to form Britain's first coalition government since 1945, ending uncertainty over who would take power after inconclusive elections last week.
U.S. crude futures fell almost 0.6 percent to above $75.96 a barrel, while spot gold fell $4.85 an ounce to $1,227.2.
U.S. gold futures hit an all-time high above $1,230 on Tuesday as investors continued to worry about Europe's debt problems, boosting gold's appeal as a safe haven in times of market turmoil.
(Additional reporting by Elaine Lies in Tokyo; Editing by Kim Coghill)

Euro slip

SINGAPORE (AP) -- Asian stock markets tumbled Monday on investor concern the Europe debt crisis will worsen as the euro fell to a 4-year low.
Investors weren't convinced last week's $1 trillion bailout package will keep a sovereign debt crisis from spreading from Greece to other European countries.
In an interview with German newspaper Der Spiegel to be published Monday, European Central Bank President Jean-Claude Trichet said Europe's economy "is in its most difficult situation since World War II or perhaps even since World War I."
"The market is concerned that the euro could trigger another financial crisis," said Linus Yip, a strategist with First Shanghai Securities in Hong Kong. "I don't think that's likely, but that's the fear out there."
The euro fell to $1.2271 on Monday, the lowest since 2006, from $1.2352 on Friday.
Japan's benchmark Nikkei 225 stock average dropped 260.36 points, or 2.5 percent, to 10,202.15, while South Korea's Kospi lost 2.8 percent to 1,648.04 and Australia's S&P/ASX 200 index was down 2.6 percent at 4,491.30.
China's benchmark index in Shanghai tumbled 3.6 percent, Hong Kong's Hang Seng index lost 2.5 percent, India slid 2.3 percent and Thailand sank 2.8 percent.
Asian investors are concerned that cost-cutting fiscal measures being taken by Greece, Portugal and Spain could hamper a recovery in the eurozone economy and undermine export demand.
On Wall Street on Friday, the Dow Jones industrial average fell 162.79 points, or 1.5 percent, to 10,620.16.
In currencies, the dollar edged down to 91.88 yen in Tokyo from 92.30 yen in New York late Friday.
Benchmark crude for June delivery was down $1.35 to $70.26 a barrel in electronic trading on the New York Mercantile Exchange. The June contract lost $2.79, almost 4 percent, to settle at $71.61 on Friday.

- Courtesy of Yahoo News

REASONS WHY THE DOLLAR RALLIED

The U.S. dollar rallied aggressively, leading many investors to believe that the greenback has finally found a bottom. We remain skeptical because the fundamental dynamics have not changed materially but at the same time, we have to respect the strength of today’s reversal and acknowledge that continuation tends to follow such strong moves. The dollar recovered against every major currency with the largest gains seen against the euro, Australian and Canadian dollars. Although profit taking contributed today’s moves, there are 3 primary factors behind the dollar’s rise:
1. China Hikes Interest Rates by 25bp
The initial sell-off in higher yielding currencies and rally in the U.S. dollar was triggered by China’s surprise decision to raise interest rates by 25bp. The Chinese central bank provided no details following their rate announcement but the timing provides many clues. Tomorrow night, China has a number of key economic reports due for release including GDP, consumer prices, retail sales and industrial production. There is a good chance that China's recovery has gained momentum and its strength may have driven inflation to intolerable levels. The government also wants to clamp down on the housing market with property prices rising 9.1 percent in September from the year prior. Recent initiatives from China including the recent reserve ratio hike and the requirement of a 30 percent down payment for first time home-buyers shows the government's urgency to cool their over-heated economy. In reaction, investors bought back dollars aggressively on the fear that the rate hike will slow Chinese growth and in turn the global recovery.
2. Fed Officials Express Skepticism about Need for More Stimulus
The rally in the dollar gained momentum after Fed Presidents Fisher and Kocherlakota expressed skepticism about the need for further asset purchases. Fisher said the Fed is not committed to further asset purchases and that the debate on possible easing may not be completed in November. He also suggested that Hoenig’s hawkish views deserve consideration. Kocherlakota on the other hand does not believe that additional Fed purchases will be enough to boost the economy. However Fisher and Kocherlakota are not voting members of the FOMC this year, which means their views have less sway on Fed policy. On the other side of the spectrum is Evans, who is also a non-voter. Evans believes that not only does the Fed need to increase stimulus but the central bank needs to engage in numerous large scale purchases to boost inflation. The only voting member of the FOMC to speak this morning was Dudley who reiterated his view that the U.S. needs more stimulus. Later this evening, Bernanke and Board member Duke will be speaking. After Friday’s speech, we know that Bernanke believes there is a case for further action but Duke has been on the fence regarding QE and so we will be watching her comments closely.
3. Other Central Banks Take a More Moderate Stance
At the same time, other central banks are taking a more moderate stance towards normalizing monetary policy. The Bank of Canada left interest rates unchanged this morning and sounded fairly pessimistic after lowering their GDP forecasts for 2010 and 2011. Even the Reserve Bank of Australia has grown a bit more wary of their strong currency, saying that the appreciation of exchange rates has tightened domestic financial conditions and therefore reduced their urgency to raise interest rates at their last meeting. Comments from Bank of England Governor King suggest that the central bank is growing more willing to ease monetary policy because in their eyes, inflation indicators are “extremely subdued.” The ECB on the other hand is comfortable with their current monetary policy. Trichet reminded us today that inflation is their primary objective and right now, inflation expectations remain firmly anchored. Nonetheless, the more moderate comments from central banks have contributed to the rally in the U.S. dollar and the sell-off in other currencies. - Courtesy of FX360.com