Apart from having a good strategy and money for initial setup, what do i need to have before i could set up an online company in Singapore and sell forex trading alerts to customers?
Any licences? Qualifications?
Cheers!

Might be nice if someone can simplify how it works. I am also looking for an automated forex trading system too.

It depends on which currency pairs you trade, but for most pairs 1 pip equalises there about $ 1 in a mini account, and $ 10 in a standard? What is margin (power)? The margin allows you to order a total contract value greater with just a small deposit.The power gives the trader the ability to make nice profits, and keeps both the venture capital to a minimum. For example, the power supply of forex brokers 400 to 1, and it means that a margin deposit of $ 100 dollars would allow a trader to buy or sell $ 40,000 worth of currencies.



What is a Stop-Loss?

A stop-loss is a type of order by which an open position is automatically liquidated at a retail price that you set. This is used to minimize exposure to losses if the market moves against your position. How exactly do you generate your signals? Our signals are generated by an evolving cyclical model that uses highly complex algorithms generated by advanced software. The computer model looks at the behavior of large groups of people over a given time and applies to financial markets. What currency will sail you trade yourself?

We currently produce daily signals for 18 currency pairs:

USD / CHF,

USD / JPY,

USD / CAD,

NZD / USD,

EUR / CHF,

EUR / JPY,

GBP / CHF,

EUR / AUD,

XAU / USD,

GPB / USD,

EUR / USD,

AUD / USD,

CHF / JPY,

EUR / GBP,

GBP / JPY,

EUR / CAD,

AUD / JPY,

XAG / USD.

We always use stop-loss to protect our positions in case the market would move against us. We tell you in advance how many pips you should place your stop-loss for each pair / signal. This system is 100% mechanical it? Yes. All that is required on your end is to be available at this time when we give to run your business. There is no need to evaluate or make subjective decisions of where / when writing & exit businesses. We give you the exact entry & exit times and a lot of stop-loss for each currency pair. That the best trade so it is your signal? Our system has been developed to minimize the time necessary to be successful on the forex market.

There is no need to rest in front of your computer monitor your business. It is important that you follow the instructions carefully when entering a trade and exit when the trade. Our model is based on time prediction pivot on the market. That is why we don ‘t offer any data of price levels. Sign in to members simply sectionnent each evening to see the signals issued for the next day. Make sure you can be around at that time for specific open / close your shops. Is it that I can select the pairs that I trade or I have to trade all? You are welcome to select the pairs that you want to trade, but we recommend sticking with these pairs and trade every signal that comes to them for at least 1-2 months. This will help balance your trade account and ensure that you don’t blow missed out on profitable businesses for pairs you trade.

My Favorite Automated Trading Robot is Fap Turbo





By: Anil Kumar Raju Addipalli

I’m after a book introducing me to the inner workings of Forex trading. I’ve taken a quick look at a few books, but they all appear to be written by people that make a living from Forex trading, rather than writing about how to do it providing seminars?

When you Google or Wikipedia the authors, you don’t seem to find a lot of information about them, other than they have written a book!

Trading opportunities in the forex market deserve serious consideration as a diversification strategy for your portfolio.

While online equities and futures trading have enjoyed exponential growth and widespread notoriety over the past few years, online foreign exchange trading is only now gaining popularity among seasoned active traders, commodity trading advisors (CTAs), and other professional money managers.

Until recently, large international banks dominated the foreign exchange market, only allowing access via telephone trading to a select few such as Fortune 1000 companies, large funds, high-net worth individuals, and so on. But now, the tide has turned and finally there are established online trading firms that provide individual investors with direct access to the largest, most liquid financial market in the world.

In this market you may buy or sell currencies. The objective is to earn a profit from your position. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are virtually identical to those found in other markets, so the transition for many traders is often seamless.

Here are an example of how forex trading works. Say, a trader purchases 10,000 euros in the beginning of 2004 at the EUR/USD rate was .9600. In May of 2006 the trader exchanges his 10,000 euro back into US dollar at the market rate of 1.1800. In this example, the trader earned a gross profit of $2,200.

Currencies are quoted in pairs, such as EUR/USD or USD/JPY. The first listed currency is known as the base currency, while the second is called the counter or quote currency. The base currency is the ‘basis’ for the buy or the sell. For example, if you BUY EUR/USD you have bought euros (simultaneously sold dollars). You would do so in expectation that the euro will appreciate (go up) relative to the US dollar.

EUR/USD

In this example euro is the base currency and thus the ‘basis’ for the buy/sell. If you believe that the US economy will continue to weaken and this will hurt the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will appreciate versus the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold euros in the expectation that they will depreciate versus the US dollar.

GBP/USD

In this example the GBP is the base currency and thus the ‘basis’ for the buy/sell. By doing so you have bought pounds in the expectation that they will appreciate versus the US dollar. If you believe the British are going to adopt the euro and this will weaken pounds as they devalue their currency in anticipation of the merge, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.

USD/JPY

In this example the US dollar is the base currency and thus the ‘basis’ for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

USD/CHF

In this example the CHF is the base currency and thus the ‘basis’ for the buy/sell. If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that due to instability in the Middle East and in U.S. financial markets the dollar will continue to weaken, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.





By: Martin Chandra

The objective of currency trading is to exchange one currency for another with the expectation that the market rate or price will change such that the currency pair you have bought has appreciated in value relative to the currency you have sold.

If the currency you have bought appreciates in value and you close your open position by selling this currency, or effectively buying the currency that you originally sold, then you are locking in a profit. If the currency depreciates in value and you close your open position by selling this currency, or effectively buying the currency you have sold, then you are realizing a loss.

Cardinal Rule: All trades result in the buying of one currency and the selling of another, simultaneously.

Basic Entry & Exit Rules:

1) Buying a currency is equivalent with taking a long position in that currency.

2) Selling a currency is equivalent with selling short that currency.

OPEN TRADE: An open trade or position is one in which a trader has either bought or sold one currency pair and has not sold or bought back an adequate amount of that currency pair to effectively close the trade. When a trader has an open trade or position, he/she stands to profit or lose from fluctuations in the price of that currency pair.

CURRENY SPREAD & DEALING RATES:

A currency exchange rate is always quoted for a currency pair. For example, EUR/USD refers to two currencies: the Euro Dollar and the US Dollar.

EXCHANGE RATE: An exchange rate is simply the ratio of one currency valued against another. The first currency is referred to as the base currency and the second as the counter or quote currency. If buying, an exchange rate specifies how much you have to pay in the counter or quote currency to obtain one unit of the base currency. If selling, the exchange rate specifies how much you get in the counter or quote currency when selling one unit of the base currency.

A currency exchange rate is typically given as a bid price and an ask price. The bid price is always lower than the ask price. The bid price represents what will be obtained in the quote currency when selling one unit of the base currency. The ask price represents what has to be paid in the quote currency to obtain one unit of the base currency. The following EUR/USD price quote is an example of bid/ask notation:

EUR/USD: .9726 / .9731

The first component (before the slash) refers to the BID price (what you obtain in USD when you sell EUR). In this example, the BID price is .9726. The second component (after the slash) is used to obtain the ASK price (what you have to pay in EUR if you buy USD). In this example, the ASK price is .9731.

SPREAD: The difference between the bid and the ask price is referred to as the spread. In the example above, the spread is .05 or 5 pips. Unlike the EUR/USD, some currency pair quotes are carried out to the 2nd decimal place (i.e. USD/JPY may be quoted at 119.45/50), in which case 5 pips represents a difference of .05. Although a pip may seem small, a movement of one pip in either direction can translate into thousands of dollars in gains or losses in the inter-bank market.

DIRECT RATES: Most currencies are traded directly against the US Dollar. The market rates that are expressed for such currency pairs are called direct rates. In most cases, the US Dollar is the base currency pair whereby the quote currency is expressed as a certain number of units per 1 US Dollar. For example, the following rate USD/CAD=1.4500 indicates that 1 USD (US Dollars)= 1.4500 CAD (Canadian Dollars).

INDIRECT RATES: For some currency pairs, the US Dollar is not the base currency but the counter or quote currency. The market rates that are expressed for such currency pairs are called indirect rates. This is the case with GBP (British Pound or “Cable”), NZD (New Zealand Dollar), EUR (Eurodollar), and AUD (Australian Dollar). For example, the following rate GBP/USD=1.5800 indicates that 1 GBP (British Pound)= 1.5800 USD (US Dollars).

CROSS RATES: When one currency is traded against any currency other than the USD, the market rate for this currency pair is called a cross rate. Cross rate is the exchange rate between two currencies not involving the US Dollar. Although the US dollar rates do not appear in the final cross rate, they are usually used in the calculation and so must be known. Trading between two non-US Dollar currencies usually occurs by first trading one against the US Dollar and then trading the US Dollar against the second non-US Dollar currency. There are a few non-US Dollar currencies that are traded directly, such as GBP/EUR or EUR/CHF.

BASE CURRENCY: The base currency for the following currency pairs is the Euro (EUR): EUR/GBP, EUR/JPG, EUR/CHF, EUR/CAD. The base currency used when GBP is traded against the JPY (Japanese Yen) is GBP, hence the quotation GBP/JPY.

Spot Deal / Market

A spot deal consists of a bilateral contract between a party delivering a specified amount of a given currency to a counter party and receiving a specified amount of another currency in return, based on an agreed upon exchange rate. Delivery for spot deals occurs within two business days of the deal date, which is referred to as the settlement date. (The settlement date for USD/CAD is one business day after the deal date.)

Market Orders:

Market orders are orders that are executed immediately at the market rate.

Limit Orders:

Limit orders are orders that a trade should be executed (in the future) when certain market conditions occur. There are three types of limit orders:

1) New Positions:

Limit orders: specify that a currency pair should be traded when it reaches a certain exchange rate. Applied when entering into a trade or position, limit orders do not offset a current position.

2) Current / Open Positions:

Take-Profit orders: are used to clear a position by buying (or selling) the currency pair of the position when the exchange rate reaches a specified level. Take- Profit orders are typically used to lock in a profit. For instance, if you are long USD/JPY at 117.42 and believe the price will continue to rise until it reaches 120.00 but are unsure what it will do past 120.00, placing a take-profit at 120.00 will automatically close your position allowing you to lock in your profit.

Stop-Loss orders: are used to clear a position by buying (or selling) the currency pair of the position when the exchange rate reaches a specified level. Stop-Loss orders are typically used to limit any losses that might occur. For instance, it you are long USD/JPY at 117.42 and set a stop-loss at 117.32, your position will automatically be closed at 117.32 and you will be protected from a further price decline. Stop-Loss orders are particularly beneficial because they allow you insurance comfort when leaving a position open while you are no longer actively following the markets allowing you to do other things than watch your computer monitor all day or night.

Now let’s put this terms we can all understand and absorb. Suppose you turn on the television or read the newspaper and you read or see that there is some political unrest in Japan due to the lack of strong leadership in that country. If you believe that the Yen will depreciate as a result of this turmoil, you will have the following bias:

You will be analyzing your real time charts with the bias that you are looking for and uptrend in the USD and a downtrend in the JPY. Therefore you will be bullish the US Dollar and Bearish the Japanese Yen.

Remember this is just added sentiment to help you put the trading odds in your favor. We do not believe in basing all of our entry and exit decisions on purely Fundamental analysis. After all, the charts do not lie and any instability or negative reaction to a specific currency will be shown on the chart thru price and volume.





By: Martin Chandra

The Forex (Foreign Exchange Market) exists because multi-national corporations and nations need to buy and sell goods/services from outside sources. To do that, they need to exchange their home currency with that of other nations. As you know, not all currencies have the same buying power so nations, banks, and corporations exchange their money with one another just as tourists do when traveling abroad-same concept, just a LOT bigger scale!

In fact, the Forex is the single largest financial market in the world and upwards of 1.8 trillion dollars are traded every day-between the hours of 5 p.m. EST Sunday thru 4 p.m. EST Friday. Between those hours, the Forex market is open and there are always brokers out there willing to buy and sell positions. However, unlike the NYSE, there is no centralized exchange but rather an informal network of computers supplied by investment houses, central banks, and other large players which help facilitate the trades.

The Forex market actually trades dozens of different currency pairs. The base currency is the first in the pair and was used to set up the trading account. The counter currency is the second in the pair and is sometimes referred to as the “terms” currency. A typical lot is $100,000 and an investor might be interested in the currency pair USD/CAN for instance. That means that the investor would buy $100,000 worth of Canadian dollars with the base currency (USD) at the current exchange rate in order to open a position.

While there are literally dozens of different currencies exchanged on the Forex, investors are advised to concentrate only on currencies that trade with the USD. The USD backs nearly 90% of all trades on the Forex and it is one of 8 main players in the market, including:

· U.S. Dollar (USD)

· British Pound Sterling (GBP)

· Euro (EUR)

· Canada Dollar (CAN)

· Australian Dollar (AUD)

· Swiss Franc (CHF)

· New Zealand Dollar (NZD)

· Japanese Yen (JPY)

By sheer volume alone, the USD/EUR and USD/GBP are the two most popular currency pairs on the Forex based upon volume. However, this does not necessarily mean that they are always the best investment options at any given time. The currency pairs with the greatest pip movement are also the most volatile and risky. The trick for any investor is to identify the currency pair that has the greatest potential for pip movement with the least volatility. Only analysis of technical data can provide that information but there are brokers out there offering this information as part of their service package so it is a very good idea to see what is offered before signing up with any specific broker.

Again, the most popular currencies are not always going to be the most profitable so be sure to analyze a lot of charts and track price movements between different pairs over the same period of time to help find the best pair for you which will provide the greatest profit potential and the least volatility.





By: Kent Douglas

I’ve only had experience with the MarketAxess Fixed-Income trading platform, but am interested in setting up a demo account with FOREX. Any thoughts?

So this year I tried www.fxcm.com Forex trading and lost $1300. I was wondering if I can somehow put this on my tax return as capital loss and where I would put such an item.

nghia



By: nghianumber1