Posts Tagged 'Forex'

Forex: the waves Wolfe

December 19th, 2008

Like any existing market, even the Forex is driven and is expressed through technical means. The trading of the currency market is regulated by some specific techniques that will help to understand and that are useful to develop a correct strategy.

One of the main objectives to be achieved in the Forex market to create an optimal strategy is the equilibrium price.

If you have the right conditions in the foreign exchange market, these prices are calculable balance through the waves of Wolfe (Wolfe Waves).

They are graphically occur in conjunction with some resistance and support. Detectable know the short and long term, the waves of Wolfe should be regular and remain within the channel created by the ascent and descent of the first wave.

Moreover, the latter is to be almost the same characteristics as the first generated. If all this happens mathematically, you can find the equilibrium price necessary to the implementation of a positive strategy.

The slang of Forex

December 19th, 2008

The currency market of Forex, as explained above, use of terminology. The fans, players, they have created a slang, colloquial language to identify specific pairs of currencies.

Below illustrate the main

Is represented by the pair EUR / USD;

Dollar Yen is the pair USD / JPY;

the Cable is the currency pair GBP / USD;

known as the Swissy is hidden torque USD / CHF;

C-Dollar is the currency pair USD / CAD;

L 'is the Aussie Dollar pair AUD / USD;

l 'Euro Sterling is the pair EUR / GBP Euro while Yen is the currency pair EUR / JPY;

The pair EUR / CHF is known as Euro Swiss,

while the GBP / CHF was renamed Sterling Swiss.

The relationship between currencies GBP / JPY is called Sterling Yen

the CHF / JPY Yen Swiss,

while the NZD / USD is called Kiwi or New Zealand Dollar.

Forex transactions: spot or term

December 19th, 2008

In the Forex market when you decide to open and operate a speculative position, you are in front of a very important choice, namely to make a spot or forward.

Or decide whether to make a transaction at the end, choosing a value date up to 12 months, or a spot transaction in foreign currency usually goes about two working days after its implementation. We must remember, when deciding that a exchange contracts will be treated always or premium or discount compared to an exchange spot, creating a significant difference in terms of interest rates relative to the currencies of reference in time.

Depending on transitions for short or long term I will be good in the first case take a spot and roll a spread obtaining non-invasive, can take advantage of fast profits and avoid the difficulties caused by fluctuations in interest rates if investment is completed .

Forex Terminology: Conclusions

December 10th, 2008

For position in the Forex market is the view expressed by a trader through the sale of foreign currency, which is owned by an investor due.

For premium or cost of carry is the cost or benefit associated with the progress of an open position from a sitting to another. Is calculated through the differential between the rates of short-term interest of the two currencies currency pair in question.

The increase is the revaluation of a currency than that of another country or to gold.

The revaluation rates are the rate on a particular period or particular currency, which is used to revalue a position.

Through the rollover will defer the payment of a cost of basing itself on the rate differential between two currencies.

It makes a short when you sell a currency without having them at the moment for making a profit.

Finally, the swap is a transaction which combines a short forward with an operation or two forward.

Terminology of Forex (Part 7)

December 10th, 2008

Continues our journey through the terms of the Forex.

If we carry out a long, put in place a position in purchasing. If the same exceeds the amount for sale, automatically the currency, according to the law of supply and demand, salt.

Known as the margin is expressed, the degree of money that customers of Forex are required to submit a deposit to protect themselves from potential losses.

The margin call is a request made by a broker or a dealer to the customer to require him to raise their own funds in order to adjust the margin so that it can be guaranteed position in the market.

The market maker is a dealer that offers guarantees doli, market prices through the bid and ask.

The pip is the unit of measurement used in the exchange to represent the increase in prices the smallest recordable. Usually it is the equivalent of a basis point.