How to earn in Forex


Forex, where the commodity to be traded is currency, and not stocks and shares, is a trading market which gives its investors, returns in the form of the relative value of one currency exchanged against another. Forex trading is therefore, always dealt in currency pairs with the major currency pairs being Euro/US Dollar (EUR/USD) and US Dollar/Japanese Yen (USD/JPY), to name a few. And it is with concurrent buying and selling of currencies that the trader hopes to make a profit on favorable exchange rate fluctuations. Exchange rates are always fluctuating, going down as well as up, within seconds and the whole art of trading lies in perfectly foreseeing the trend of the variation between two currencies. But, how do you make money in such a competitive and incessant Trade market?
Well, here is an example to illustrate how…Supposing the current bid/ask price for EUR/USD is going by the rate of 1.5027/30, giving you the option to buy 1 euro with 1.5030 US dollars or sell 1 euro for 1.5027 US dollars. Now, if you feel that the Euro is underrated against the US dollar, you would opt on buying Euros, selling your dollars at the same time. So you buy 100,000 euros by paying 150,300 dollars. You can then start analyzing the market, waiting for the exchange rates to rise. One can also opt in for Spot Forex Trading due to its benefits

Why opt for Forex trading?

With more than $1.5 trillion USD being traded daily, the foreign exchange market has managed to become the world's largest financial market, over the last three decades. With the large minimum deal sizes and rigid financial requirements, the Forex market, till recently, was not explored by the common trader or individual investor. But now the average investors can also engage in Forex trading. Some of the advantages of Forex trading are as follows:
24 hours tradingForex gives its traders a 24 hour trading opportunity. Being a Forex trader, you can trade 24 hours a day from Sunday 5:00 pm (ET) to Friday 4:30 pm. This gives traders an opportunity to trade according to their convenience, going by their own schedule and also a chance to react instantly to any breaking news of the markets.
High levels of liquidityAlso, acting as a huge attraction is the high liquidity. With almost 90% of all the currency transactions consisting of 7 major currency pairs, helps these currencies display price stability, smooth trends, narrow spreads and high levels of liquidity. This liquidity mainly comes from the banks which offer cash flow to companies, investors and market

why choose MarketForex?

MarketForex was set up by trading professionals and expert software developers with the main aim of discovering and comprehending the needs and requirements of its traders and investors, since the very beginning of their trading deal. Providing you with secure, user friendly Forex trading software, MarketForex offers the best currency trading technology with reliable and steady customer feedback services.
Live Real-Time quotesAt MarketForex, we believe in employing superior and sophisticated technologies, enabling us to offer updated quotes every second. We also give you the option of keeping a check on your positions in real time, 24 hours a day, enabling you to make a deal based on real-time information.
100:1 LeverageThe high leverage available with MarketForex is one of the main advantages which only a Forex trader avails, and not the ones dealing in futures and stocks. At over $1.2 trillion a day, it is the unparalleled size of the Forex market which enables us to offer such high leverage. This also means the increase in the amount of its transactions per day, leading to superior liquidity. By offering you higher leverage of 100:1, we are giving you more buying power than what you normally have as it increases your total return on investment.

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The U.S. dollar


The U.S. dollar is gaining momentum over weak economic data. The trend should continue over the short/medium term. However, the longer term picture stays bearish for the greenback
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U.S.: The trade balance to widen further?The FOMC meeting of last week was basically a non-event, since the Fed reiterated the need to keep rates low for an extensive period of time, albeit it sees the U.S. economy stabilizing. Rates should again rise in the second part of next year, despite expectations mounting for an increment in December. In fact, after WW2, the Federal Reserve started to increase rates six months following the top in the unemployment rate, which, at present time, might happen sometimes this year or at the beginning of the next. Finally, the Fed has apparently no intention of expanding the purchase of USD 300 billion of longer-term U.S. bonds after the October’s target. With inflation so low, the consumer price index was down 2.1% year-on-year in July, a “wait and see” approach could be the best solution. In reality, economic data remains volatile.

HONG KONG

HONG KONG -- Steel-to-property conglomerate Citic Pacific Ltd. posted Wednesday a 43% fall in its first-half net profit on lower contributions from its special steel division, and said it will continue to divest noncore assets while boosting investment in core businesses.
The firm, which suffered massive losses from Australian dollar positions that went sour late last year, said its net profit for the six months ended June 30 was 2.47 billion Hong Kong dollars ($319 million), down from HK$4.36 billion a year earlier. The result was higher than the average HK$1.90 billion forecast of three analysts surveyed earlier by ...

Falling Equities Lift Dollar And Yen

Falling Equities Lift Dollar And Yen,"By Nicholas Hastings
LONDON (Dow Jones)--A 2.6% fall in the Shanghai Composite Index set the tone in currency markets in Europe Tuesday, with the dollar and the yen benefiting as safe havens.
The euro, with other high-yielders, were the main losers as the market waits to see if U.S. consumer confidence data later in the day lives up to expectations.

The downturn in market sentiment started late in New York Monday with the Dow Jones Industrial Average ending a marginally 0.03% higher.
Analysts said the overall mood of global markets has been depressed by remarks from Chinese Premier Wen Jiabao that monetary policy will stay loose because the economy faces new difficulties.
This appeared to inject fresh jitters into financial markets when concern about the global recovery was already on the rise.
In Japan, the Nikkei lost 0.8% on the day while in China the Shanghai Composite fell as much as 5.5% at one stage before rebounding just before the close to end down just 2.6%.
Although news that Israel had been one of the first economies to start hiking interest rates didn't have a direct impact on market sentiment, it contributed to the impression that the era of low recession-driven global rates is coming to an end. Norway is expected to be the first G10 country to follow Israel.
A report that Japanese three-month Libor rates have fallen under those in the U.S. for the first time in 16 years also helped focus market attention on relative yields and push the yen higher against the dollar.

The ECB meets

The ECB meets this week in Frankfurt (Germany). Rates should stay on hold once more, as the recovery process is just beginning in Europe. The U.S. dollar, in the mean time, is still at key support levels against major currencies.
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U.S.: Consumer confidence weak.The process might be slow and the recovery could not take the form of the classical V shape. However, the worst should be over for U.S. economy, after more than one year of losses. Leading indicators increased last month for the third consecutive time, while some corporate earnings have risen above expectations. In addition, manufacturing industries have reduced inventories and orders have improved, despite the sector remaining very volatile. In June, durable goods new orders slumped 2.5% after having increased 1.3% in May and 1.4% in April. Nevertheless, excluding transportation, orders would have jumped 1.1%. The real estate market has found a bottom at current levels and the increase of sales could boost consumer confidence. New home sales moved up 11% in June to 384,000 units. The up move was well distributed among all the U.S. regions with the exception of the South where sells declined 5.3%. Inventories are now at 8.8 months of supply from 10.2 months, while building permits, a forecasting indicator, rose almost

Pakistani stocks end lower; rupee flat

Pakistani stocks end lower; rupee flat
KARACHI, Aug 11 (Reuters) - Pakistani stocks fell on Tuesday as investors booked gains after the country's main index gained nearly 2.7 percent the previous day, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.46 percent, or 37.56 points, lower at 8044.50 points on turnover 178.58 million shares.
The KSE-index has now gained 37.2 percent this year after losing 58.3 percent in 2008.
'We saw some profit taking in some of the blue chip companies since the market rose in the previous two sessions,' said Sajid Bhanji, a dealer at brokers Arif Habib Ltd.
The KSE-index rose 2.67 percent on Monday to its highest close this year as the International Monetary Fund increased its loan to Pakistan by $3.2 billion to a total of $11.3 billion.
The IMF said it would immediately release $1.2 billion to Pakistan under its economic programme, first agreed in November last year to avert a balance of payments crisis.
The rupee closed flat at 82.86/96 to the dollar, unchanged from Monday's close.
The rupee has lost 4.5 percent this year after losing 22.12 percent in 2008.
(Reporting by Sahar Ahmed; Editing by Victoria Main)
((sahar.ahmed@thomsonreuters.com; +92-21 568 5192; Reuters Messaging: sahar.ahmed.reuters.com@reuters.net)) Keywords: FINANCIAL PAKISTAN/
(If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)
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Euro / US Dollar Reversal is the Real Deal

Euro / US Dollar Reversal is the Real Deal
A recent divergence between the Euro futures contract and the US dollar index is just one piece of evidence suggesting that the EURUSD has reversed course. Additional evidence includes a long term cycle, wave structure at multiple degrees of trend, and recent momentum considerations.Full Article

FOREX: Ringgit Opens Stronger Against US Dollar

FOREX: Ringgit Opens Stronger Against US DollarBy: Ramjit-->
KUALA LUMPUR, Aug 6 (Bernama) -- The ringgit opened stronger against the US dollar on Thursday as the greenback lost its attraction in global markets, a dealer said.At 9.10am, the local unit traded higher at 3.4910/4950 against the greenback compared with 3.4950/5000 at yesterday's closing.The US dollar weakened on firmer crude oil prices, said the dealer who added that this week's sharp rally in the oil market was driven by improved economic recovery prospects."The greenback saw some sell-off today and we expect further selling-through in the near-term," he said. The bullish outlook for the stock market also supported sentiment, he added.The ringgit also strengthened against the Singapore dollar to 2.4350/4401 from 2.4355/4414, the yen to 3.6705/6762 from 3.6735/6807 and the British pound to 5.9357/9443 from 5.9366/9465.However, it weakened against the euro to 5.0319/0391 from 5.0290/0372 yesterday.-- BERNAMA

Forex reserves up by USD 1,524 mn

Forex reserves increased by USD 1,524 million to touch USD 267,711 million as on July 24, 2009, mainly due to rise in foreign currency and assets collections on a weekly basis.As per the weekly statistical supplement of the Reserve Bank of India (RBI) released on July 31, 2009, foreign currency assets increased by USD 1,519 million to stand at USD 256,657 million.During the same period, the reserve position in the International Monetary Fund (IMF) increased marginally by USD 5 million to stand at USD 1,253 million. The gold reserves remained steady at USD 9,800 million.Foreign currency assets expressed in USD include the effect of appreciation or depreciation on non-US currencies (such as Euro, Sterling and Yen) held in reserves

Forex reserves rise by $2.27 billio

Forex reserves rise by $2.27 billio

Forex reserves rise by $2.27 billionBusiness Line - Jul 24, 2009 23:39:37Mumbai, July 24 Foreign exchange reserves increased by $2.27 billion to $266.187 billion for the week ended July 17, according to figures released in the Reserve Bank of Indias weekly statistical supplement.