Foreign entry
Foreign Exchange (Forex) market is a nonstop cash market where traders usually through a broker to trade currencies. Global local and foreign currency markets continue to be bought and sold, according to the trader investment currency appreciation or depreciation of the price changes. Forex market prices and the exchange rate may at any time by the events occurring in time and change.
Forex currency trading and short-term attractiveness of the individual major traders in: 24 hours a day, 5 days a week non-stop global transaction conducted.
Forex trading advantages and features:
1. Huge market liquidity makes trading simple and easy.
2. volatile market offers profit opportunities.
3. The standard of financial instruments to control risk.
4. Change the bi-profit in the market.
5. pay a small deposit leveraged transaction.
6. A variety of zero commission trading.
How to conduct foreign exchange transactions
Forex trading, traders aim is to profit from price changes in foreign exchange. Forex trading or currency trading is usually in the form of currency pairs. For example, the August 26, 2003 in the dollar / euro (EUR / USD) exchange rate is 1.0857. This number is called the "foreign exchange rate", or simply "the exchange rate." If the trader had bought 1000 euros, he will pay $ 1,085.70.
A year later, the exchange rate is 1.2083, which means that the euro relative to the dollar. Now, traders sold € 1,000 get $ 1,208.03. Thus, traders can earn more than $ 122.60 a year ago. However, to understand whether the trader to make a good investment option, you still need this investment options and other investment options to compare. The return on investment should be at least (ROI) and a "risk-free" return on investment for comparison.
Can be long-term US government bonds as a risk-free investment instance, this investment is virtually no risk of bankruptcy unless the US government, or is unable or unwilling to pay its debt. (Please note that past investment performance and return on investment for the future does not mean the same performance)
A year later, the exchange rate is 1.2083, which means that the euro relative to the dollar. Now, traders sold € 1,000 get $ 1,208.03. Thus, traders can earn more than $ 122.60 a year ago. However, to understand whether the trader to make a good investment option, you still need this investment options and other investment options to compare. The return on investment should be at least (ROI) and a "risk-free" return on investment for comparison.
Can be long-term US government bonds as a risk-free investment instance, this investment is virtually no risk of bankruptcy unless the US government, or is unable or unwilling to pay its debt. (Please note that past investment performance and return on investment for the future does not mean the same performance)
When trading currencies, traded only in the currency you bought an estimated relative to the currency appreciation sold.
If you buy the currency to appreciate, you have to buy another currency to lock in profits. Has opened the transaction (also called open open positions) are traders buy and sell a particular currency pair, but not yet sold or bought back the equivalent amount to close trading positions.
However, it is estimated that the foreign exchange market, 70% -90% of the transactions are speculative. That is to say, to buy or sell currencies individuals or agencies do not plan to actually take delivery of the currency; rather, they are only speculating on the movement of that particular currency.
Forex major currencies
"Direct drive" refers to the international foreign exchange market, a country currency exchange directly with the US dollar is straight plate:
"Direct drive" refers to the international foreign exchange market, a country currency exchange directly with the US dollar is straight plate:
EUR / USD
GBP / USD
USD / JPY
USD / CHF
USD / CAD
AUD / USD
NZD / USD
Crosses
On the currency markets, the US dollar exchange rate benchmark. The relative exchange rate of two currencies other than the dollar is crosses:
• EUR / CHF
• EUR / JPY
• EUR / GBP
• EUR / CAD
• EUR / AUD
• EUR / NZD
• GBP / CHF
• GBP / JPY
• GBP / AUD
• CAD / JPY
• AUD / JPY
• AUD / CAD
• AUD / NZD
• AUD / CHF
• NZD / JPY
• CHF / JPY
Currently there are three major global foreign exchange market:
London Market (European market), the New York market (American market), and Tokyo markets (Asian markets).
lundou 15:30-00:30
London is the world established financial center, is also the first place to start forex trading. Beijing 15: 30-0: 30 is the opening trading session on the London foreign exchange, and its long tradition of making the countries in which the Bank habitually start after opening the bulk of foreign exchange transactions. Thus, the global foreign exchange market - day volatility as it opened it and began to intensify, individual investors the opportunity this time will also be gradually increased. European Central Bank interest rate decision, the German IFO sentiment index, the 12-nation euro zone GDP, the 12-nation euro zone consumer price index and other factors, will also play a degree of influence of European foreign exchange market volatility.
New York 21: 00-4: 30
Three foreign exchange markets, the London and New York trading session the market is concentrated area countries bank foreign exchange transactions, market volatility and therefore the most frequent. Especially in the overlapping area of two market trading hours, which is GMT 21: 30-24: 00 is the world most frequent foreign exchange trading, the largest block trading period. If we choose this - time transactions, money-making opportunities may be relatively more. Meanwhile, the general would be more active in local currency within the trading hours of the local market, we also can choose according to their own trading hours in the hands of the currency. For example: when the Australian dollar opened the Asian market, the yen is relatively active, European markets opened when the euro, British pound, Swiss franc relatively active market opened when the American dollar, the Canadian dollar is relatively active. But the choice of trading session, only the forex trading tips, not winning magic. If you want to make money with more certainty, or should maintain observation of the market, and analytical skills to master.
London is the world established financial center, is also the first place to start forex trading. Beijing 15: 30-0: 30 is the opening trading session on the London foreign exchange, and its long tradition of making the countries in which the Bank habitually start after opening the bulk of foreign exchange transactions. Thus, the global foreign exchange market - day volatility as it opened it and began to intensify, individual investors the opportunity this time will also be gradually increased. European Central Bank interest rate decision, the German IFO sentiment index, the 12-nation euro zone GDP, the 12-nation euro zone consumer price index and other factors, will also play a degree of influence of European foreign exchange market volatility.
New York 21: 00-4: 30
As the US stock market is the largest center of capital flows, so the New York market is the world most active foreign exchange market, its high degree of activity means increased profit opportunities for investors. New York foreign exchange in Beijing called between 21:00 opening, in addition to the US stock market, its GDP data, the FOMC interest rate, the Fed public statements, producer price index, consumer price index, unemployment rate and a series of fundamental data, will become important factors that influence the currency markets.
Tokyo Market 8: 00-16: 00
Tokyo foreign exchange market is the largest market in Asia, but in the foreign exchange market is the three smallest. Tokyo foreign exchange in Beijing 8: 00-16: 00 chance of trading, in this period of time, perhaps only a few large fluctuations in the yen. Prime-time 21: 30-24: 00 The more frequent fluctuations in the foreign exchange market, the more people the opportunity to exchange means to make money.Three foreign exchange markets, the London and New York trading session the market is concentrated area countries bank foreign exchange transactions, market volatility and therefore the most frequent. Especially in the overlapping area of two market trading hours, which is GMT 21: 30-24: 00 is the world most frequent foreign exchange trading, the largest block trading period. If we choose this - time transactions, money-making opportunities may be relatively more. Meanwhile, the general would be more active in local currency within the trading hours of the local market, we also can choose according to their own trading hours in the hands of the currency. For example: when the Australian dollar opened the Asian market, the yen is relatively active, European markets opened when the euro, British pound, Swiss franc relatively active market opened when the American dollar, the Canadian dollar is relatively active. But the choice of trading session, only the forex trading tips, not winning magic. If you want to make money with more certainty, or should maintain observation of the market, and analytical skills to master.
What is the basic point of difference?
The basic point is a point value. In the foreign exchange market, the value of money in the form of an offer basic points. A basic point is equal to 0.0001, two basic points is equal to 0.0002, 0.0003 equal to three basic points, and so on.
A basic point is the smallest price change in foreign exchange rates can occur. Most of the currency exchange rate after the decimal point four. For example, EUR / USD is 1.2530 / 1.2532, where there are two basic points spread / spread.
In the major currencies. The price of the yen is not reserved to four decimal places, such as USD / JPY, the price is only reserved to the very place, so USD / JPY quote is this: 114.05 / 114.08, in this quote bids and offers three the basic point spread / spread.
What is the spread / point of difference?
The spread is the purchase price (also called bid) and selling price (also called asking price) difference between. A currency pair has two prices, which represent the difference between the market maker at the time of trading with investors.
If investors quickly traded unchanged in the case of the exchange rate, they have to bear the loss, which is caused by the spread, usually better than going to the lowest bid.
For example, EUR / USD at your bank bid / bid may be 1.2015 / 1.2115. Here are spread 100 basis points. The spread and HPC bid / bid, for example, 1.2015 / 1.2017, only spread two basic points, compared to the very high.
Overall small spreads to more favorable foreign exchange investors, because the exchange rate fluctuated slightly easier for them to profit from the transaction.
What is money right?
In the foreign exchange market, trading currency pairs. Consisting of two currency pairs currency interrelated and inseparable.
Currency denomination of the two components in each exchange transaction. Their exchange price is called the exchange rate. Currency exchange rate by supply and demand effects.
The most common currency
Market currency trading the most common is known as "the major currencies." Most currency trading with the US dollar (USD) conduct. US dollar (USD) is the largest monetary transactions. Currency trading is frequently followed by five: the euro (EUR); Japanese Yen (JPY); pound (GDP); the Swiss franc (CHF) and Australian Dollar (AUD). The six major currencies trading occupy 90% of the global foreign exchange market trading volume.
The most common currency pair is the EUR / USD (EUR / USD).
Exchange rate
Changing exchange rates. Market supply and demand determine the value of the currency, the value of a currency on the foreign exchange market is represented by another currency. In a currency pair, the first currency is called the "base currency", second currency is called the "quote currency" or "counter currency."
When you make money trading, you buy the base currency and sell the quote currency. Exchange rate tells buyers to buy one unit of the base currency denominated how much money to spend. Money is usually the order of the same, which is common practice in the industry. For example, the currency pair USD / JPY (USD is the base currency, JPY is the quote currency). Currency you see on the order does not change. So, you buy or sell depends on the direction of trade. For example: USD / JPY- You can buy USD JPY, JPY buying or using USD. You can access to each sequence can be traded currency in the currency pair on the HPC website.
For example: EUR / USD 1.2500 means that you need to use 1.25 to buy one euro. You can also say that if you sell one euro you will get 1.25. All transactions involve buying one currency and selling another currency. If the next day, the euro against the US dollar, the exchange rate becomes 1.26, then you had to buy the euro will bring you every penny of revenue. If you are trading in the opposite direction, then (1.25 sell) every euro you had sold all bring you a cent loss (because at this time of 1 requires you to take 1.26 to "repo" ).
Currency Trading
In the forex market, traders profit by buying and selling currencies. There are two price currency: the purchase price, called the "bid" and selling price, known as the "bid."
Called the difference between the bid price and is the "spread." It represents a market maker from traders buying and selling at the difference.
For example: EUR / USD in bid / ask is 1.2100 / 1.2200. Market maker with 1.21 to buy from a dealer in the hands of one euro, but the price of 1.22 for this one euro to sell dealers. If the trader quickly traded unchanged in the case of the exchange rate, they will suffer losses. This is caused by the spread - as traders bid price is higher than their selling price.
In fact, the spread is the market maker main source of income. And other markets, merchants selling price than the purchase price is high.
Quoted price
"Quote" is the price of money. On the currency markets, there are two quotations forms: direct and indirect quotations quote.
Direct quote is the price of every dollar from other currencies.
Indirect quotes are expressed in US dollars per unit by the prices of other currencies.
Note: In general, most currencies are quoted against the dollar (eg - "direct quote"). However, EUR, GBP, AUD, NZD and (XAU gold and silver XAG) are used in an indirect quote, for example: GBP / USD.
Offer is the price of the currency pair traded. It and the "reference price" different, reference price is the market maker is provided for informational purposes only information (for traders to know, not really strike price). HPC provides real-time quotes for the logged in user. Provide to other users is delayed quotes (ie "reference price").
Non-farm payrolls data interpretation
More jobs, indicating that economic growth, which means there will be more demand for the dollar. Investors will have a strong willingness to hold dollars. Non-farm payrolls data showed job growth in the future. It is estimated that economic development needs to create about 125,000 monthly new jobs, population growth and employment in order to maintain synchronization. Although economic development is a good thing, however, population growth, the number of new jobs if the economic development reach the required work, it means that some of the unemployment rate, which is not a good thing. For example, for 85,000 new jobs last month, which actually makes the unemployment rate will increase by 0.1%.
Due to non-farm payrolls data has been paid great attention to everyone, so the actual impact will exceed the original data impact on the economy, which is an important concept.
Therefore, if the number is higher than expected, as we all know, there will be more people willing to hold dollars.
Because the US economy is an important part of the global economy, so the change in non-farm payrolls data is often regarded as the world economic development section reflect changes. For example, if the numbers are very bad, investors around the world are likely to gold or other commodities as a safe haven in turbulent times.
Forex fundamental analysis and technical analysis Fundamental analysis and technical analysis is the most widely used forex trading in two ways. Fundamental analysis helps to understand the "fundamental" feature of the currency. Fundamental analysis, such as interest rates, balance of trade and monetary policy will help traders to predict future price movements. Technical analysis helps to understand the trajectory of past currency fluctuations and currency price changes by analyzing the past, better able to predict future price movements. Analyze the advantages and disadvantages of these two approaches - to find their strengths and weaknesses, combined with the use of organic, more likely to succeed trading.
Fundamental analysis:
Australia is one of the largest gold producer, to understand the relationship between gold prices and the Australian dollar exchange rate will help traders understand why the Australian dollar gold price changes will affect the trend. Even better, the trader can use fundamental analysis, through the observation of the Australian dollar exchange rate, to predict future price movements of gold.
Mixed signals: risk aversion and dollar
Fundamental information is not always so easy to find and correct analysis. Fundamental analysis is a more difficult job before the start of trading: how information should be interpreted? How to use this information to predict future price movements do?
Fundamental analysis shows that the following two relationships:
US gross domestic product (GDP) growth tend to make the dollar.
Hedging demand (ie, the market worried about the deterioration of the world economic development) will make the dollar.
Challenges facing the basic analysis is how we interpret conflicting information.
Strong US gross domestic product (GDP) growth is beneficial or detrimental to the dollar dollar it? This usually use technical analysis to determine.
Technical Analysis
If the fundamental analysis to answer the "why", then technical analysis is to answer "Where."
While technical analysis by studying past price movements to predict future price movements, but this is a not entirely predictable.