Forex Growth Robot Blog


Friday, 6 January 2012

Features Of Using A Forex Broker That Also Licensed Bank Posted By: Ownen Moore

There are many factors to be considered when choosing Forex brokerage firms. This happens due to the availability of different Forex brokers in the market who are willing to accept your registration. In the market, you will find stand alone Forex brokers and those which are also licensed banks. In the beginning, it was the role of the commercial banks to provide the foreign exchange services in the market. However, series of developments have taken place in the Forex market resulting in emergence of several brokers which are not banks. It is a good idea to deal with licensed banks as your Forex broker. Having a Forex broker that is also a licensed bank has several benefits to the trader. A Forex trader benefits from the following.

Regulation

Every Forex broker needs to undergo certain kind of regulations as you know. Forex just like any other financial markets should be regulated to keep off fraudsters and illegal operators. You should not be surprised to find that there are several unregulated brokers in the market although this is primary requirement. This puts the trader at bigger risks of losing his investments. Besides, there is no protection of the traders goals and interests. Choosing a Forex broker that is also a licensed bank lets you benefits from outstanding regulation. This is because in the financial institutions banks are given the best regulation.

Low exposure to risk

The subsidiary benefit of using brokers which are regulated banks is low risk exposure due to intensive regulations given. When dealing with a well established licensed bank, there are minimal chances that your investment will be under greater risks. Although there are chances of involving in unethical, fraudulent and illegal activities, their chances are very minimal. This gives you the ultimate peace of mind needed whenever trading.

Transparency and accuracy

Forex brokers which are not licensed bank always partner with banks to provide the service to their clients. First, they keep funds with these banks. They also receive trading quotes from the banks which they relay to their clients. This creates allowance for broker to interfere with quotes. The Forex broker can thus decide to alter quotes to favour them. They can also hold the quotes until they get good grounds in the market. The trader thus suffers from low profitability.

Low commissions and Fees

Dealing with a Forex brokerage firm which is not a licensed bank often proves to be very expensive and less profitable. This is due to the high commissions and fees involved. Because you will be dealing with a third party, the fees and commission must be increased: you pay for the service of the broker and the bank that it uses. These brokers cannot operate without partnering with banks. On the other hand, there will be low fees and commission because you will be dealing directly with the bank, not an intermediary.

Conclusion

It is a good idea to choose Forex broker which is also a licensed bank. There are many other benefits that a Forex trader will enjoy. Apart from what is discussed above, you will enjoy trading in the Forex market. If you want to reduce the level of risks involved marginally, this is the right decision to make. Lastly, Forex which are also licensed banks are known to be very reliable and able to assist you meet your investment goals.



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Thursday, 5 January 2012

Economic Indicators Applicable In Different Countries Posted By: Patrick Kalashnikov

Unemployment Rate
This rate expresses the percentage of a people in a workforce who are willing and able but dont have jobs. People who are not working but not part of the workforce (such as students, handicapped, and retired individuals) are not included in these figures.
Importance
Unemployment is considered to be a lagging indicator, one that only shifts after underlying economic conditions have already changed. This rate can cause moderate volatility in the market because it gives forex brokers and traders clues about future interest rates and monetary policy. Unemployment can also indicate an increase or decrease in future consumer spending.
Market Impact
When unemployment rates are lower than expected, currencies usually appreciate because interest rates usually increase. When unemployment rates are higher than expected, currencies could weaken, leading to lower interest rates. These factors are important for forex trading.

Trade Balance
The ratio of imports to exports for a given countrys economy is called the trade balance. A trade surplus occurs when exports are higher than imports, and this means that the trade balance is positive. A trade deficit occurs when imports are higher than exports, and this means that the trade balance is negative. Trade balance is primarily derived from the price of goods in a country, the tax and tariff levies on imported or exported goods, and the exchange rate between two currencies.
Importance
Information on a countrys net imports and exports can help predict future inflation and foreign investment trends. Such predictions can give clues about the future behavior of any currency market. A Forex broker or trader would be wise to investigate any current or future shifts.
Market Impact
Trade balance heavily depends on the current exchange rate between two countries and is an important coincident indicator of a foreign exchange asset markets state.

Consumer Confidence Index
The CCI is a monthly survey that asks 5,000 US consumers about their spending patterns and their feelings toward the current economy. Participants are also asked about their confidence in buying expensive consumer goods. Happy consumers generally do more shopping and travelling, which keeps the economy strong. The report expresses both current sentiment and expectations for the coming months. Neutral is around 100; a CCI below 75 is generally weak, and above 125 is considered strong.
Importance
If the CCI drops sharply, then a weakening economy is possible. However, experts say that the correlation between spending and CCI figures is not very strong and that only changes of at least five points can be considered significant.
Market Impact
Foreign investors on forex trading platforms are worried by pessimistic consumers. A low CCI can indicate the increased probability of falling interest rates and a weakening economy. These would greatly lessen the dollars value, and foreign investors might sell in favor of higher yields and stronger economies in other countries.
However, a high CCI can indicate rising interest rates and a higher return from the stock market. This would also increase the demand for the dollar in FX trading.

Durable Goods Orders
The dollar volume of orders, shipments, and unfilled orders of durable goods is measured by this government index. Demand from both foreign and domestic sources is taken into account.
Durable goods are new or used items that have a normal life expectancy of three or more years.
Importance
This index is an important indicator of future manufacturing activity as well as consumer and business demand for equipment. An increasing index suggests that increased demand will likely result in increased production and employment. The opposite is true of a falling index.
Increases in aircraft and defense orders can skew the report, so these categories should sometimes be discounted when determining whether or not a market-wide increase has occurred.
Market Impact
Because Durable Goods Orders is considered to be a leading indicator of manufacturing activity, the market has been known to move in direct response to this report.


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Wednesday, 4 January 2012

Exchange Rate Forex ' Posted By: Online currency trading

Open account forex : Money Management can be defined with bulk of methods which is used by Forex traders to handle RRR (Risk/Reward Ratio) and other methods will prevent them from losing all your money in the beginning.

By using a stop loss you can simply control many lose on each trade. The definition of Money Management is therefore quite simple safety of your funds. Your money you are already having for the game is most important money, so dont forget this point. There is some risk with some money for making more profits, but Money Management can maximize profits with little risk.

After establishing a trading plan you should practice, using some simulator or demo account. You definitely need a good trading plan. Search for the best Forex trading systems and once finding them simply setup your trading demo account. Some of the things should be followed and exactly this:

Logon every trade and check all the orders like entry, stop loss, targets, etc.
After logging 30 trades go back and search for the highest risk trades trades with large stop loss when compared to the smallest potential return (RRR).
Create some rules which will minimize the drawdown potential.
Test them on new set of 30 trades.
When getting better results then implement into your trading plan.
Evaluate your Forex Money Management techniques wisely for every 100 trades for perfection. There is a way to participate profitably without having to learn complex formulas.

Buy with a minimum delta of.80 call option | -.80 put option:

1. The delta is simple option premium which is likely to move relative to the movement of the underlying stock. Have the option to move as closely as possible. If you are wrong you can cut the losses and reexamine your trading plan from the safety of the sidelines. If you are right it doesnt take much about a fifty cent movement to get into a profitable situation.

2. Compare open interest between calls:

Unsuspecting traders load on cheap options is an opportunity. They fail to notice the overwhelming open interest which associated with a particular option. Open interest is a good indication of sentiment and since the crowd is usually wrong and it is a great opportunity for sellers to profit. Excessive open interest in the option selected, relative to the opposite direction will serve as an indicator to reevaluate your trading plan.

3. Buy yourself by avoiding trading options with less than one week left to expiration:

During the last week leading to option expiration price action is typically volatile. The time factor works against the option buyer and it accelerates to expiry and it is the best option with a later expiration month than the current one

Bonus:

When the long term trend is up then buy the call options and when the long term trend is down then buy put options. Identify the long term trend based upon the weekly charts and only trade in that direction.

For more details about http://www.systemforex.com/company/brocker/


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Tuesday, 3 January 2012

Instaforex Broker .... Review And Bonus Posted By: aba


InstaForex is an spectacular online Forex broker. From the moment you access the InstaForex website, you see specifically what I mean. Before even getting into the spread-free (ECN) and ultra flexible Forex trading offered by the InstaForex broker, you will be impressed with the informative and fashionable-wanting style on InstaForex.com.

Whereas some may assume it's a little overloaded with info, the organization of the location makes it easy to follow. The location is out there in an exceedingly whopping twenty languages already giving you a sign of the kind of broker you are dealing with.

The InstaForex Company is in the business of providing a comprehensive vary of services for currency trading on the international financial Forex market. The company is really a member firm of the InstaForex Firms Group. That group is described as uniting investment and financial consulting companies everywhere the world.

Additionally, the InstaForex broker is type of active on the promotions facet, and whereas that should not be a determining factor in selecting a broker, it's continuously fun to determine nice sports cars and other prizes on the house page of you brokers website.

Whereas InstaForex calls themselves the leading broker of Asia, traders from all over the globe are welcome to trade with the InstaForex broker and will be impressed with the trading options offered by this broker.

Now, at this time I can say that as a professional reviewer, I might not help notice that the English on the site is stuffed with errors and clearly not written by native English speakers. This is often not a deal breaker clearly, however individually, InstaForex should invest in a professional writer as well as speaker for their on web site videos.

Whereas the positioning clearly targets Asia, it is terribly much on the market to traders wherever they could be. Thus, currently to the massive query, why would someone choose the InstaForex broker over the hundreds of different online Forex brokers?

The solution is really summarized terribly well on the location itself and the list of distinctive InstaForex options is actually impressive. For starters, InstaForex supports 107 currency tools and thirty four CFD contracts making it one of the foremost versatile brokers I have ever encountered.

You want to more information check it here Insta Forex

In terms of deposit, InstaForex offers traders the ability to open an account with as little as $10 and a leverage of unprecedented proportions. I have never seen a broker that supports a one:!000 leverage, but InstaForex does, although, that should be used with the utmost caution. Moving along, InstaForex has 24/seven support as well as a responsible live chat service.

InstaForex additionally hosts a terribly informative coaching section on the location for beginner traders to learnt he market. All the steps needed to trade with InstaForex are explained by video, which could be a terribly nice and helpful addition to the site.

InstaForex conjointly offers traders to practice their skills with a free demo account, which is something counseled by all Forex experts. In addition, InstaForex offers up to the minute news and analysis on their website thus traders don't have to seem elsewhere before opening a trade. As for the trading itself, Insta Forex entered into an agreement with the leading trading software developer- MetaQuotes Software Company shortly once the new company was registered.

Hence its trading platform is predicated on that companys common MetaTrader four product. InstaForex offers 2 types of accounts: the Insta.Normal accounts and the Insta.Eurica trading accounts, which are more suitable for beginner traders.

The Insta Forex broker also implemented a new trading account type called Pamm (Share Allocation Management Module). This can enable traders to interact with every different and transfer funds to be traded be somebody else.

All this with the safety of the InstaForex brand. Contracts are in place with major western contractors, who offer access to the cash market. The companys informational services are primarily based on agreements initiated with major media companies specializing in money markets within the U.S., such as Dow Jones News.

The InstaForex team of specialists is comprised of a cluster of professionals in money consulting, legal support, as well as operations. InstaForex frequently seeks to draw in high specialists from varied fields who are connected to online-trading service providers. Additionally to everything we have already mentioned, InstaForex is on high of the newest Web 2.0 trends with social profiles on Twitter as well as company blogs, making their team of professionals additional accessible to the average trader and giving them a footing as a Forex broker.

InstaForex claims to service more than a hundred and forty, 000 people and company customers as clients. From my review of InstaForex, they are well on their manner to changing into a leading online Forex broker. It is no surprise thus, that the InstaForex broker was named the Best Broker in Asia by the British edition of Word Finance.


You want to more information check it here Insta Forex


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Monday, 2 January 2012

Forex Arbitrage Review - Any Good? Posted By: Adam - Forex Trader

Until now, when placing a trade you always face the same daunting question:

- Will this trade win or lose?

That unknown is the RISK Thats what sends your emotions on a roller coaster Thats what determines how much leverage you can use.

Today Ive got a very different question for you that could change EVERYTHING

What if you could completely remove that risk and KNOW your pip gain the instant you place your trade?

This isnt hype and Im not being silly, though I could barely believe my eyes when I heard about what a top trader colleague of mine discovered

This is such a revolutionary idea that Im going to repeat it one more time

What if you KNEW your profit when you place your trade?

There are some very high accuracy trading methods out there.

But the latest discovery by my good friend and trading colleague Jason Fielder is an entirely different approach that is a genuine game changer.

In fact, it was inspired by Warren Buffet and this method comes as close to a sure thing that I have ever seen.

In case youre wondering, this has absolutely nothing to do with options at all.

Youve got to see this for yourself.

==> Special Report: Forex Arbitrage Explained

http://forexprofitmultiplier.info/forex-arbitrage-review/forex-arbitrage-all-questions-answered/

Finally, The Little-known Investing Method Your Forex Broker Doesnt Want You to Know About is REVEALED

For too long only institutional traders and billionaires like Warren Buffet have been in on this nearly cant lose trading method.

Right now a limited number of traders will be let in on this secret Get the whole story while you can.

In this FREE video report youll find out

Why it doesnt matter if the market goes up OR down with this method (and this has NOTHING to do with options either)
How one legendary BILLIONAIRE used this strategy to lock in guaranteed profits and why its the closest thing to a cant lose method that Ive ever seen
How I locked in 17 pips instantly AFTER broker costs in seconds and why this turns regular trading systems upside down
Why your broker will NEVER tell you about this hidden goldmine EVER
The simple reason why this structural market flaw exists and why Ill only tell a strictly limited number of people about it
What the biggest block to making a full time income from trading (and why its completely eliminated by this method)
This is the perfect way to trade for high returns and extremely limited risk in just minutes a day

Watch this FREE Video Report NOW because it wont be online forever and once you see the power of exploiting this hidden structural flaw you may never want to trade any other way ever again.

==> Special Report: Forex Arbitrage Explained

http://forexprofitmultiplier.info/forex-arbitrage-review/forex-arbitrage-all-questions-answered/


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Sunday, 1 January 2012

Forex Trading Terminology: Pivot Points Posted By: Steave Lock

If you started to learn software for Forex trading, most likely you met such tool as pivot points calculator. In different trading systems pivot points are very important market triggers. That is why it will be useful for you to get acquainted with what they mean and how they influence on the Forex market.
The method of pivot point trading came to the Forex from the stock market. It was widely used for forecasting the market situation, as it implied short calculations and was not so difficult as fundamental or technical market analysis. Generally this method implies the ability to calculate the point of market change, relying on high, low, opening and closing points of the market from the day before. It is a way of predicting of the situation on the Forex that helps traders to make reasonable investments.
Currently traders and researchers use a few approaches to calculating the day"s pivot points. The easiest one and the most widely used is averaging of the high, opening and closing points of the previous trading day. These indicators also give ability to calculate other pivot points. Generally pivot point is the point on the chart where the market changes a current trend to the opposite one. We will need two more terms for the further explanations "" resistance and support. Resistance is a high point on the chart where the Forex rates for specific currency begin to downturn. Support is the opposite, low point where the currency rates start climbing up.
Usually support and resistance points are the extremes of the chart, and most likely currency rate will not go out of the interval between these two values. When the rate reaches extreme, post probably there will be slight turn back.
Pivot points calculation has a clear mathematic algorithm that can be found an any of numerous Forex manuals and online articles. They help to define the interval in which a currency pair rate will change during a day. Pivot point is somewhere in the middle between resistance and support points. If the market opens with a rate higher pivot point value, it is a good sign for starting long traders, as the market trend is up. If the market opens with the rate lower than pivot point value, the conditions are more advantageous to short trades and fast sales.
Using pivot points is reasonable strategy for plan your daily trading. There is specialized Forex software for making all required calculations.


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