Monday, 14 November 2011

How to make your first deal

The big moment has arrived. Here's what you need to do to make your first deal.
If you don't already have an account with Forex4you, open one today and start trading!

Choose your currency pair

Analyse the market and select a currency pair that you want to trade. Decide which currency you think will go up, and which one will go down.

Decide on your deal volume

Choose the amount of currency you want to trade. The more volume you trade, the more you can earn or lose. If you're a beginner, we recommend that you make small trades.

Set your profit goals

When you make a trade, you should set a profit target. When this target is reached, your position will be closed automatically, and your profit and original stake will be transferred to your account.

Set your loss limits

Similarly, you need to decide how much you're willing to lose. Set this and once again your position will be closed automatically once the price reaches this limit. Your remaining stake will be transferred to your account. Remember not to risk all your money.

Check again and place your order

Look at the parameters you've just selected. Make any changes that are needed. Confirm that the price you wanted is still available; the price is only available for a short time and may have changed. If it has changed, decide if you still want to trade. If you do, place your order.

Get confirmation

As soon as you enter your order, the data is sent to our servers. We check the details and execute your order right away. Once the deal is made, we send you a confirmation, and your open position appears on your trading terminal.

Close your position

Once the price reaches a point where you want to sell, close you position and we will transfer the money to your account. Note that your account balance does not reflect your profit or loss until you do this.
Your position will be closed automatically if the price reaches the profit or loss limits you set.

Multiple deals

You're not limited to one open position at a time. You can open as many as you like, as long as you have enough money in your account. To do this, repeat the steps above for each trade you want to make.

Where is the Forex headquarters?

People often wonder where the forex market is located. Is it in Tokyo? Are the headquarters in the City of London?
In fact the forex market isn't located in any one place. The world's largest financial market is decentralised and trading happens all around the world. Nearly four trillion US dollars are traded globally every day.
Stocks and commodities are traded in dedicated buildings known as exchanges; for example, the New York Stock Exchange (NYSE) is on Wall Street. The forex market is different. Because it deals with interbank transfers, it has no offices. All trades are carried out electronically or over the phone, so there's no need for an exchange building.
Trading starts in Sydney on Monday morning, and continues day and night until the Chicago session ends late Friday afternoon. Many world financial centres are involved in forex trading, including the following:
  • Tokyo
  • Hong Kong
  • Singapore
  • Frankfurt
  • London
  • New York
  • Chicago
  • Wellington
  • Sydney
Forex trading is often carried out through brokers, who negotiate deals on their clients' behalf. Brokers have dealing centres, which are physical offices. They provide their clients with trading terminals and support services, so that clients can get quotes and make trades.
Forex4you is a forex broker, and we're a market leader

Who Can Become a Forex Trader?

You can!
The international forex market is open to everyone. It doesn't care about your age, education, nationality or where you live. As long as you're willing to work hard and learn, you can be a forex trader. Even if you don't have much capital, you can open a Cent Account and make trades for as little as two cents.

Why become a forex trader?

You become a forex trader to make profits, but it has many other benefits. If you're successful, it can become a full-time occupation, with the following advantages:
  • Be your own boss
  • You can trade any time and anywhere – no need to go into an office
  • Your income potential is unlimited
  • It's interesting and as fast-paced as you want it to be
As long as you have an internet connection, you can trade on the forex market!

Why Forex4You?

Forex4you is committed to helping you learn and succeed. If you're starting out, here are some of the things we offer:
  • Free forex training, seminars and consultation
  • Online tutorials and guides
  • Free analysis of your trading performance
  • Daily market analysis, recommendations and tips from our forex experts
  • The latest Dow Jones news feeds
  • No minimum capital requirements
  • Place orders as low as two cents with our Cent Accounts
  • Euro and dollar accounts
  • Free and fast deposits and withdrawals – including with Liberty Reserve and WebMoney
  • 24x5 customer support – with offices around the world
  • Instant web-based support using LiveChat

Forex4you in Russia

Forex4you has a strong presence and roots in the Russian Federation, and we believe that forex trading is an important part of economic development in Russia. We offer profitable employment to our traders, and a well-established, stable international market in which to work.
Forex trading rewards you for your skills and hard work, and promotes a positive Russian image on the world stage. At Forex4you, we are proud to be part of that success

How Does the Forex Market Work?

In the forex market, you trade one currency for another. The two currencies being traded are known as a currency pair. Here are some examples:
  • USDJPY - buy Japanese yen with US dollars
  • JPYUSD - buy US dollars with Japanese yen
  • USDCHF - buy Swiss francs with US dollars
  • CHFUSD - buy US dollars with Swiss francs

The main currencies

The main currency used in forex is the US dollar; 40% of transactions involve the dollar. Other major currencies include the following:
  • Japanese yen
  • Swiss francs
  • British pounds
  • Euros
  • Canadian dollars
  • Australian dollars
  • New Zealand dollars
Although the US dollar still predominates, “cross rate” trading is increasing in Europe. This is where currencies are traded without using the dollar as an intermediary; for example, you can trade euros for British pounds or yen directly.

Types of transaction

There are five main types of forex transaction:
  • Spot - 48% of the market
  • Swaps - 39%
  • Forwards - 7%
  • Options - 5%
  • Futures - 1%

Making money

Most traders work in spot forex. This is where currencies are exchanged directly. Here's an example:
  • You want to trade US dollars and Swiss francs
  • The instrument for buying Swiss francs with US dollars is USDCHF
  • You buy when the rate is 0.7700 and get 770 Swiss francs for $1,000
  • You wait until the Swiss franc goes up
  • You sell at a rate of 0.7690
  • Your profit is one Swiss franc or $1.32
  • You only had to invest $10 because you had 1:100 margin
  • You have made a 13.2% profit
In the example above, the price changed by 10 points – a point is 1/10,000th of a currency unit. Prices normally change by between 80 and 150 points per day, so you can make large profits. If the price above had changed by 80 points, you would have made $10.56 for a $10 investment.
However, the exchange rate can also move in the wrong direction, in which case you will lose money. That's why it's important to analyse the market before you buy, and to keep a close eye on your open positions. You can also set stops, which place a sell order automatically when a specific exchange rate is reached. That way, you can lock in your profits and limit your losses.
When you first start forex trading, we recommend that you open a Cent Account with us. With a cent account, you can make trades for as little as two cents each. This is an excellent way to learn the forex market without taking significant risks.

What to start with?

What to start with?

Forex traders speculate on currency movements in the world's largest financial market. Speculation isn't gambling; the word 'speculate' comes from the Latin word speculare, which means 'to observe'. Analyse the market first, and only make trades once you understand the prevailing market conditions and trends.
Forex trading is done using currency pairs. You don't just invest in a currency; you invest in the exchange rate of that currency against another currency. Here's an example:
  • You decide to study yen exchange rates against the US dollar
  • The symbol for buying yen with US dollars is USDJPY
  • You decide to buy when the price reaches 109.29 yen to the dollar
  • You invest $1000 and get 109,290 yen
  • This only costs you $10 as you have 1:100 leverage on your account
  • You now have open position in USDJPY
Now you need to make a profit:
  • You decide to sell when the exchange rate reaches 109.17
  • It does and you sell - closing your USDJPY position
  • Your profit is 120 yen – or $1.10 after conversion to US dollars
  • You have made a 11% profit on your $10 investment
However, the exchange rate could have moved the other way, in which case you would have lost money. This is why it's important to study the market before you invest; analysis increases your chances of making a profit.
We recommend you spend three to four months learning the forex market before you start trading significant amounts. You can do this with a demo account, but we suggest that you open a Cent Account once you're familiar with the basic operation of our trading terminal.
With a Cent Account, you can make trades for as little as two cents, and you get the experience of trading with real money. This is important, as people behave differently when their own money is at stake; you'll learn how you react under live trading conditions.
Here are some tips to follow when you're starting out:
  • Select a broker with a good reputation – such as Forex4you
  • Analyse and understand the market conditions before you make a trade
  • Be disciplined – motivation and persistence are essential
  • Make sure you're comfortable using your trading terminal
  • Don't aim for big profits at first – focus on educating yourself
  • Accept any losses – you can learn from these as well
  • Don't invest all your funds in one deal
  • Stay calm – don't let your excitement overwhelm your common sense

Experts and Forex ratings: what are the advantages of «Forex4you

Forex4you provides high-quality forex brokerage services to its clients. We offer the following:
  • Extensive help for beginners who want to learn forex trading
  • Advanced tools for experienced forex traders
  • Timely market analysis and recommendations from our forex experts
  • A state-of-the-art forex trading platform – including mobile device support
  • Flexible forex trading conditions
  • A range of financial bonuses and other benefits
  • Comprehensive customer support
Many of our forex traders make consistent profits with Forex4you. Open a Forex4you account today and join them!

Flexible forex trading conditions

  • Get forex spreads as low as 0.5 pips
  • Trade over 100 instruments – including CFDs
  • Select your leverage – from 1:10 to 1:500
  • No minimum capital requirements
  • Place orders as low as two cents
  • Euro and dollar accounts

Financial benefits

  • Get trading bonuses - up to 50% of the spread
  • Win prizes up to $3,000 in our forex trading competitions
  • Make free deposits and withdrawals
  • Fast withdrawal processing
  • Transfer money by bank wire, credit card or electronic payment system
  • Interest on free account balances
  • Partner rebates from 50% to 85%

The best technology

  • Industry-leading MetaTrader 4 forex trading platform
  • Real-time quotes and order processing
  • Our Android and iPhone applications let you trade anywhere
  • Efficient and secure account management
  • Encrypted communications

Superior support

  • 24x5 customer support
  • Instant web-based support using LiveChat
  • Daily market data, analysis and tips
  • The latest Dow Jones news feeds
  • Free forex training, seminars and consultation
  • Online tutorials and guides
  • Free analysis of your trading performance
  • Share strategies with other traders in our online client forums
  • Support offices in the UK, India, Malaysia, Russia and Ukraine

How to build your own trading strategy

Each forex trader has their own strategy. Some use well-established forex strategies, some build their own from scratch and others use a combination.
It's important to develop your own approach. You have to be comfortable with your strategy, and it needs to deliver results. Beginners often find this a daunting prospect, so here are some basic rules to get you started.

Filter your inputs

Not all forex advice is good advice. Figure out where the advice has come from, and how much you trust the source. This is particularly important when using the internet. There are a lot of amateurs out there who think they know what they're doing, but they don't.

Test and modify

When you develop your trading strategy, you'll start with a set of recommendations from analysts and other traders. Try these out on your demo account, and modify them to see what happens. It's important to create your own formula for success, as this will improve your trading skills.

Don't reinvent the wheel

You can learn from forex analysts and experienced traders. They are still in the market because they are successful. Study their strategies and learn from them. Don't follow them blindly, but test out what they are saying and see if it works.

Look at long-term trends

Some traders make money from short-term market fluctuations, but if you want to understand where the market is going, look at longer time frames. Short-term data contains a lot of noise and can't be relied on for overall market predictions.

Don't stick to one time frame

Analyse the market using different time frames. Opportunities may emerge when you are looking at daily data, and not show up when analysing hourly intervals. Conversely, you can profit from short-term anomalies even if the long-term trend is different.

Include fundamental analysis

Technical analysis shows the likely market direction based upon internal forex market factors, such as the number of buyers and sellers in the market. However, the overall direction of the forex market is heavily influenced by the real world. Study economic events, such as growth figures and interest rate changes, and decide how these will affect the forex market.
Our forex experts carry out extensive fundamental market analysis and produce daily reports and recommendations. You can use these when formulating your forex strategy, but keep in mind that these are recommendations, not rules.

Set stops

You can't watch the market 24 hours a day, so set stops on your open positions. These are orders to sell when the ask price of a currency reaches a specific value. You can use these to lock in your profits and limit your losses.
Even if you are online, you should still set stops. Decide on these before you open a position. It's often tempting to keep a position open once you hit your original limits, and setting a stop will make you think twice.

Look for volatility

Certain currency pairs are very volatile; the price can jump up or down suddenly. When you're trading a volatile currency pair you should do two things:
  • Trade in small amounts to limit your exposure
  • Set the stops far away from the support and resistance lines

Be careful entering just before the market closes

At the end of Friday trading, the American market can be very volatile. There's a lot of news at this time, and many traders are closing their positions.
The same applies at the end of the month.
This is not an exhaustive list. You may choose to ignore some of these rules and to add others as you become more experienced. However, we would recommend following this list when you're starting out, as doing this will help you avoid some of the most common pitfalls.
Open a Cent Account with Forex4you, and start developing your own strategy today!

Mobile Forex trading

This article is devoted to a new trend in trading: trading straight from your cell phone.
Everybody knows traders are normal people who can’t spend their time at the computer non-stop. They sometimes inevitably need to leave their trading terminal. On the other hand, the world of currency markets is unpredictable, and who knows – maybe right as you leave the market presents a favourable situation that would allow you to make a great profit if you could make a decision on the spot.
There is a way out. Now you can trade using your own cell phone! This is possible thanks to a mobile version of the trading terminal, which may be installed on any PDA or smartphone. If you have such a device, you will be able to monitor your trading account, follow your trading area at anytime and anywhere: out with friends, in a traffic jam, resting in the countryside or wherever else you like.
The latest version of the mobile terminal gives you:
  • The state of all trading orders
  • Most analysis tools
  • All available graph periods
  • A number of trading signals
  • Financial news online
A considerable advantage of both mobile and desktop terminals is their complete compatibility. For instance, you open an account (real or demo) on you PDA and can then use it from a desktop computer, and vice versa. All you need to begin mobile trading is to open an account and specify the data in the PDA or smartphone terminal.
Be careful: to work with a mobile terminal, you need a PDA with MS Windows for Pocket PC2002 or newer, or a smartphone with MS Windows Mobile for Smartphones 2003 SE or newer.
New technologies continue to penetrate our lives. A large number of advanced traders who have tested mobile trading technologies for themselves are convinced that mobile trading will take a leading role in the nearest future. Mobile transactions are convenient, try it out for yourself! Don’t miss the opportunity!

Television and Forex

Should You Trust Television Pundits?

There's been an explosion in business channels on television in recent years. From CNBC to Bloomberg, they provide market data, economic news and views from market experts, often 24 hours a day.
Can you trust them? Are they a valuable resource or a way of losing money?
We all want to make profits trading, and we're always looking for an edge. Sometimes we're looking for new ideas, and other times we're losing and looking for a magic bullet. When we are, it's tempting to watch these channels, or even dial in to hot-lines to ask experts questions.
There's nothing wrong with doing this; the information you get can be useful. However, keep in mind that an expert opinion is just that – an opinion. When you talk to a pundit on television, the chances are that they haven't done the research to answer your specific question. They have a lot of experience and a good track record, otherwise they wouldn't be an expert, But, that doesn't necessarily mean that they're right, or that they know all the specific factors that can influence market behaviour.
Our best advice is this. Use television as another source of information, but don't follow it blindly. You need to do your own research and make your own decisions. Above all, caveat emptor. Let the buyer beware.
Open a Cent Account or Classic Account with Forex4you, and get advice and recommendations from our experts.

Stock market for beginners

If you're a beginner, you shouldn't underestimate what it takes to be a successful forex trader. You need to do the following:
  • Make a commitment
  • Set up a rigorous learning programme
  • Understand forex trading theory
  • Attend seminars
  • Read online materials and books
  • Learn how technical indicators work
  • Get practical trading experience – this is the most important thing
Many beginners just open an account, make a deposit and start trading. Unless you're very lucky, you're not going to be successful this way; the chances are that you'll just lose your money.
When you start out trading, don't get discouraged. It takes time and effort to become a successful forex trader, but it's worth it. Above all, learn to be self-critical; we all start out making mistakes, and unless we learn from those, we don't progress.
Forex4you reduces the risk of learning the forex market. Open a Cent Account and start making trades for as little as two cents. You'll learn forex trading using real money, without putting large amounts at stake. You'll get the benefit of our expert recommendations and we'll even analyse your trading performance.

Develop a system

Wanting to make money isn't enough. The forex market isn't a casino, where you either get lucky or you don't. There are basic rules to follow, and ways of analysing the market that can increase your profits. Unlike a casino, successful traders do make money consistently of the forex market; to do this they practice and develop a system.
Your system shouldn't just follow market indicators and recommendations blindly. These are good tools, but you need to see how they work in reality. That's why getting trading experience is so important. You need to apply these tools based on your experience, and develop a system that works for you and fits with your temperament.
When you join Forex4you, you can talk to other traders about their systems, and learn what works and what doesn't for them. You can also share you own system, and get feedback on how to improve it.

Enjoy your trading

Forex trading is about making profits, but you must enjoy it as well. If you're successful, it will be a full-time occupation, and your need to get satisfaction out of doing it. Keep in mind the benefits:
  • Be your own boss
  • You can trade any time and anywhere – no need to go into an office
  • Your income potential is unlimited
  • It's interesting and as fast-paced as you want it to be
To get started learning forex trading, open a Classic Account. We'll give you all the support you need.

Broker services on Forex

Forex brokers trade currencies on behalf of their clients. They:
  • Supply their clients with a forex trading platform
  • Provide real-time market quotes
  • Execute buy and sell orders
  • Allow their clients to trade on margin
  • Carry out market analysis and provide recommendations
  • Ensure their clients' security and anonymity
Unless you're a major financial institution trading directly in the forex market, you need a broker. How do you evaluate brokers and choose the right one for you?

Reviews

Forex broker reviews are published regularly in the media, and these are a good starting point. They will tell you what services the broker provides and how much they charge. For example, here are some of the services provided by Forex4you, all of which are free:
  • Industry-leading MetaTrader 4 forex trading platform
  • Real-time quotes and order processing
  • Trading bonuses up to 50% of the spread
  • Dow Jones news feeds
  • Daily market data, analysis and tips
  • Forex training, seminars and consultation
  • Online tutorials and guides
  • Analysis of your trading performance
  • Android and iPhone applications
  • Free deposits and withdrawals
  • Fast withdrawal processing
  • Trading competitions with prizes up to $3,000
  • Partner rebates from 50% to 85%
  • 24x5 customer support

Selection criteria

Aside from services and cost, there are a number of other factors you should consider. Your broker must meet the following criteria:
  • Have a license
  • Carry insurance
  • Execute orders quickly and accurately
  • Know the forex market inside-out

Why Forex4you?

We believe in building long-term relationships with our clients. We're committed to your success and embrace the following values:
  • Honesty – we always act in your best interests
  • Partnership – we provide the tools and information you need to succeed
  • Competence – our forex experts know the market and share their knowledge
We encourage you to compare. When you're finished, open a Cent Account or Classic Account.

Forex market during crisis

The Forex Market and the World Economic Crisis

The recent world economic crisis started in 2008, triggered by a liquidity shortfall in US banks after the collapse of the US housing market. The crisis then spread around the world, thanks to securitisation of sub-prime mortgages. Securitisation is where debt is mixed together and sold on as a new financial instrument.
Securitisation was supposed to reduce risk, but in practice it became impossible to separate good and bad debt and to understand the true exposure. This led to a loss of confidence in exposed banks around the world; some of them had to be bailed out to prevent an economic meltdown.
The global recession which followed caused high unemployment and declines in economic output. While most countries have now returned to anaemic growth, new crises loom. One of the most concerning is eurozone sovereign debt; Ireland, Portugal and Greece have already received massive bailouts, and others such as Spain and Italy are at risk.
Turbulent economic times cause volatility in the forex market:
  • Confidence ebbs and wanes with every piece of news
  • Panic selling occurs on both fact and rumour
  • Central banks pour liquidity into the market to prop up currencies and financial institutions
Forex traders make money when currency values change, so today's economic turbulence is an opportunity for profit. At the same time, market uncertainty creates additional risk:
  • Long-term traders are less affected, as short-term variations tend to even out
  • Short-term traders need to take particular care to avoid large losses
For forex traders, economic crisis is not a time for poverty, but for creating wealth. Take care, though; you want to end up a winner, not a casualty.
Open a Cent Account or Classic Account today and start trading.

Price effect

Forex traders need to know when to cut their losses. This is difficult for inexperienced traders, and they often lose large amounts of money by holding on to unprofitable positions. This is the price effect, and you need to avoid it.
Here's what happens:
  • You spend days analysing a currency and decide it should go up
  • You're so convinced that you decide to make a major investment
  • You wait until the timing is exactly right and invest most of your available funds
  • Your order is filled
  • The currency starts to go down
  • You check if anything has happened that could account for this
  • There isn't and you decide to hang on
  • The currency goes down further
At this point, the price effect kicks in. The initial drop could have been a blip, and you might have been right to hang on. Now, however, you don't want to lose all your hard work, and you're probably hoping to get your losses back. You can't admit the investment was a mistake, so you keep hanging on and lose the entire amount.
The price effect happens when your emotions overcome your common sense. No matter what your analysis told you, if a currency is dropping, it's dropping, and you need to cut your losses. When you make an investment, decide how much you're willing to lose, and stick to it. Don't let your emotions take over and don't keep chasing losing propositions.
The best way to learn this discipline is to trade and see where you go wrong. Open a Cent Account and you'll be able to do this without taking major risks.

The best time for trading

There are no hard-and-fast rules for when to trade, but the following are general guidelines.

Specific currencies

For some currencies, there are preferred trading windows:
  • 8:00 - 20:00 is best for British pounds, Swiss francs and Euros
  • 01:00 - 06:00 and 13:00 - 20:00 are best for yen (by CET time)

Economic news

Economic news can affect exchange rates, and it’s released according to a calendar. When news is going to be published, you can do the following:
  • Place your orders just before the news is released if you want to speculate on it
  • Stay out of the market if you want to avoid the effects

Time intervals

When you track the market, you can use different time intervals. Specific codes are used for these intervals, as shown in the table below.
Code Interval
D1 1 day
H4 4 hours
H1 1 hour
M30 30 minutes
M15 15 minutes
M5 5 minutes

D1

There is no best time for D1. However, you should check the new candlestick quickly after an interval ends.

H4

Again, there's no best time. You should check every 4 hours and look for buy and sell signals.

H1, M30, M15 and M5

The best time is when the market is fluctuating the most. This normally happens at the following times:
  • 03:00 - 05:00
  • 10:30
  • 13:00
  • 16:00 -19:00 – peaks occur at 16:45 and 18:30
Open a Cent Account or Classic Account today and start trading day or night!

Holidays Schedule

The table of 2011 holidays which are days off for the proper country.
DateCountryCurrencyType
01.01.2011 Australia AUD New Year
01.01.2011 Canada CAD New Year
01.01.2011 Japan JPY New Year
01.01.2011 European Union EUR New Year
01.01.2011 New Zealand NZD New Year
01.01.2011 Switzerland CHF New Year
01.01.2011 United Kingdom GBP New Year
01.01.2011 U.S. USD New Year
02.01.2011 Japan JPY Public holiday
02.01.2011 New Zealand NZD Public holiday
03.01.2011 Japan JPY Public holiday
11.01.2011 Japan JPY Memorial Day
17.01.2011  U.S. USD Martin Luther King Day
26.01.2011 Australia AUD State Holiday
06.02.2011 New Zealand NZD State Holiday
11.02.2011 Japan JPY State Holiday
15.02.2011 U.S. USD State Holiday
20.03.2011 Japan JPY Vernal equinox
22.04.2011  Australia AUD Good Friday
22.04.2011  Canada CAD Good Friday
22.04.2011  European Union EUR Good Friday
22.04.2011  New Zealand NZD Good Friday
22.04.2011  Switzerland CHF Good Friday
22.04.2011  United Kingdom GBP Good Friday
24.04.2011  Australia AUD Easter Monday
25.04.2011  Canada CAD Easter Monday
24.04.2011  European Union EUR Easter Monday
24.04.2011  New Zealand NZD Easter Monday
24.04.2011  Switzerland CHF Easter Monday
24.04.2011  United Kingdom GBP Easter Monday
26.04.2011  Australia AUD National holiday
26.04.2011 New Zealand NZD State Holiday
29.04.2011  Japan JPY Showa Day
01.05.2011 Switzerland CHF Labor Day
03.05.2011 Japan JPY Constitution Day
02.05.2011  United Kingdom GBP Public holiday
04.05.2011 Japan JPY Greenery Day
05.05.2011 Japan JPY Children's Day
13.05.2011 Switzerland CHF Ascension Day
23.05.2011  Canada CAD Victoria Day
23.05.2011 Switzerland CHF Clean Monday
30.05.2011 United Kingdom GBP Public holiday
30.05.2011  U.S. USD Remembrance Day
06.06.2011  New Zealand NZD Queen's Birthday
13.06.2011  Australia AUD Queen's Birthday
01.07.2011 Canada CAD National Day
04.07.2011  U.S. USD Independence Day
18.07.2011  Japan JPY Marine Day
01.08.2011 Switzerland CHF State Holiday
01.08.2011  Canada CAD State Holiday
30.08.2011 United Kingdom GBP Public holiday
05.09.2011  Canada CAD Labor Day
05.09.2011  U.S. USD Labor Day
11.09.2011  Japan JPY Day of Older Persons
23.09.2011 Japan JPY Autumnal equinox
10.10.2011  Canada CAD Thanksgiving Day
10.10.2011  U.S. USD Columbus Day
11.10.2011 Japan JPY Health and Sports Day
24.10.2011  New Zealand NZD Labor Day
03.11.2011 Japan JPY National Culture Day
11.11.2011 Canada CAD Remembrance Day
11.11.2011 U.S. USD Veterans Day
23.11.2011 Japan JPY Thanksgiving Day
24.11.2011  U.S. USD Thanksgiving Day
23.12.2011 Japan JPY The Emperor's Birthday
25.12.2011 Australia AUD Christmas
25.12.2011 Canada CAD Christmas
25.12.2011 European Union EUR Christmas
25.12.2011 New Zealand NZD Christmas
25.12.2011 Switzerland CHF Christmas
25.12.2011 United Kingdom GBP Christmas
25.12.2011 U.S. USD Christmas
26.12.2011 Australia AUD Yuletide
26.12.2011 Canada CAD Yuletide
26.12.2011 New Zealand NZD Yuletide
26.12.2011 United Kingdom GBP Yuletide
27.12.2011 Australia AUD Public holiday
27.12.2011 United Kingdom GBP Public holiday
28.12.2011 Australia AUD Public holiday
28.12.2011 United Kingdom GBP Public holiday
31.12.2011 Japan JPY Public holiday

Forex measures

Forex measures

Macroeconomic performance characterises economic development, indicating economic growth or decline. Based on these measures, price shift trends may be predicted. Thus, it may be said with certainty that publishing of favourable data may lead to considerable and long-term shift in exchange rates. These performance indicators include Nonfarm PayrollsGDPIndustrial ProductionCPIPPI and a number of other marcoeconomic performance indicators.
The date and time of a specific indicator being published are known in advance. There are so-called calendars of economic indicators and major events in the functioning of some countries (noting specific dates or approximate release time). The market prepares for such events. There are expectations and forecasts on the value of a given indicator and its interpretation.
The release of data may lead to sharp exchange rate fluctuations. Depending on how market participants interpret a given indicator, an exchange rate may swing either way. This swing may either reinforce or adjust an existing trend, or even start a new one. A given outcome depends on several factors: the market situation, the economic situation of countries hosting the currencies, prior expectations and attitudes, and, finally, the value of a given indicator.

Forex strategies

Each beginner on the international currency market approaches their operations with utter seriousness. The very first day poses a very justified question: what is the way to play in order to at least avoid loss in the long term? Forex trading strategies will help.

Forex strategies: programmes for functioning on the market

By applying a specific algorithm applicable to a specific market situation, the Forex strategy determines a trader’s action on the market. On the internet, you will find a number of various Forex strategies invented by traders that will guarantee profit given a specific market state. Successful traders have their own Forex strategies which they will obviously never share with the public because this is their own income mechanism, honed over the course of months if not years.

Newbies and Forex strategies: is success guaranteed?

There is another obvious fact as well: not even the most loss-proof play methodology will bring a new user millions straight away. The market always changes, and newcomers simply cannot adjust to the new situation here in time. Forex strategies are based on success and failure, on chasing profits along a road that is known for its pitfalls.

What Forex strategies to use

There are a number of universal Forex trading strategies that allow you to stay afloat for a long time without going in the red. Overall, using some Forex strategy on the market is required, because random bets will not bring a positive result. This has been proven time and time again. Of course, sometimes this may turn into a very successful deal or two, but stable profit becomes impossibility over time.
The experience of professional traders shows that a personal Forex trading strategy is the most efficient and comfortable solution for a trader. You will no doubt agree that an active, risk-taking person and their more cautious, risk-aware colleague who scrutinises the situation before making a move are unlikely to use the same methods. Only by trying out new things will you be able to select a path that suits you the most. You will see that rules that clash with your own values are hard to follow.

Central banks

Central banks determine the fiscal and credit policies of countries. The main goal of any central bank is to ensure price stability and control inflation. Central banks are also some of the largest participants on the Forex market. Market Forecasts.
The largest central banks in the world are:

Forex market participantsa

All operations on financial market are done via the system of special institutions: central banks, commercial banks, dealers and brokers. Every Forex participant has its own volume of deals on the currency market. For example, central banks have the biggest turnover that exceeding hundreds of millions US dollars a day. Commercial banks and dealers have smaller turnover. Daily turnover of brokers is considered to be about 25-30 millions of US dollars that makes 2% from the general volume of all Forex trading.

Central banks of countries

These banks regulate money and credit flows with instruments defined by law. The main functions of central banks are emission (issue) of money, carrying out of monetary and credit policy and national currency policy. For example if a bank carries out currency intervention it may lead to the rise or fall of the national currency rate.

Commercial banks

These are financial intermediaries that accept deposits from legal and private persons, take advantage of investing this money, return it to depositors, close and operate bank accounts. Every country has some big commercial banks that are able to influence currency rates. In 2006 the Deutsche Bank turnover was of 19.26% from the whole Forex market turnover

Brokers

Brokers are legal or private persons that represent agents or negotiators in trading who meet buyer and seller of securities or currency together. Broker works in the name, by order and at the expense of his client and may provide some additional services. Broker gets a commission bonus for fulfilling customer's orders. Forex market tips.

Dealers

Dealers are companies or private persons that operate on the market at their own expense and in their own name, in other words they sell and buy currencies or any other assets with their own money.

Forex currency market

The word value comes from the Latin “valeo”, “I stand”.
Valuable currencies today are:
  • Monetary units of countries with indication of type (paper, gold, silver);
  • Monetary units of a number of foreign countries, including payment and credit documents expressed in such monetary units and usable for international accounts (cheques, bank bills etc.)
Basically, the Forex currency market is the sum of all transactions made by its participants (banks, exchanges, funds, investment, brokerage and external trading firms, as well as private persons, i.e. traders) to exchange some types of currency. Each second, the Forex market processes thousands of transactions, bringing profit to participants.
The Forex currency market has the following classification of currency types:
  • Freely convertible currencies have no limit on financial transactions of any kind, may be used by residents and non-residents of a country, and can be converted into any foreign currency;
  • Partially convertible currencies are usually those with a number of restrictions on use by non-residents and a specific range of allowed transactions. Thus, most Western European currencies are partially convertible; restrictions on use by non-residents were removed in 1958, and now any amount on an account in such currencies may be converted to a freely convertible equivalent;
  • Non-convertible currencies have restrictions for both residents and non-residents barring a number of financial transactions. They are not convertible and are used only inside their specific countries. For instance, non-convertible currencies are used in developing and dependent countries, and tied to the currency of a metropolitan country that sets exchange rates to give itself an advantage. Non-convertible currencies are not used on the Forex market.
The Forex currency market has two types of operations: buy and sell; each currency has demand and supply, allowing transactions with no real restrictions on volume or time. The Forex currency market also entails regulation of the exchange rates of various countries by balancing supply and demand.
The Forex currency market has a number of so-called primary currencies – most daily transactions are conducted in these:
USD – the U.S. dollar. No doubt the backbone of the Forex market. Traders often call the USD the buck, the greenback, the dolly.
EUR – the euro, common currency for the European space, second on Forex in terms of popularity. Before the euro, the DEM Deutschmark, Germany’s national currency, took its place.
GBP (Great Britain Pounds) – the pound sterling, Britain’s national currency. Financier slang also includes the names sterling, pound, and cable.
CHF – the Swiss franc. The slang term swissy is used alongside the official name.
JPY – the Japanese yen.
The Forex currency market also uses:
AUD – the Australian dollar, often referred to as the aussie by financiers.
СAD – the Canadian dollar.
NZD – the New Zealand dollar, also known as the kiwi among Forex currency market traders.

Another incredibly important concept on the currency market is the currency exchange, which is a key link in the chain of currency market trading services.   
Essentially, the currency exchange is a place where transactions are made. In this case, the currency is in free trade, shaping the process of constant currency exchange fluctuations. The main characteristic of the currency exchange is that exchange rates are shaped and noted as part of its operation, through the effect of supply and demand on the selling and buying of currencies. This very process is the main objective of the Forex currency exchange: shaping the exchange rates based on objective effects of the economic factors of specific countries. The currency exchange essentially regulates exchange rates.
With the development of technology, more and more people today use the currency exchange online, trading in real time via an internet connection. The online currency exchange fulfils a number of functions besides affecting exchange rates: it lays the technical groundwork for free trade, creates and applies the rules for trading participants to enter (covering e.g. funds, business reputation), and creates the conditions and rules for making the transactions themselves. The obligation of monitoring observance of these conditions lies with the currency exchange as well.
The largest currency exchanges are in London, New York and Tokyo. Thus, the online currency exchange can cover practically the entire world and provide nearly equal conditions for all currency market participants. This has made the Forex currency exchange the largest exchange in the world, with a turnover of more than several trillion dollars per day.

Forex volumes New

Become a forex trader, and buy and sell in the world's largest financial market!
Here are the key figures*:
  • Over $1.9 trillion dollars a day traded in 2004
  • That grew to $3.2 trillion by 2007 – a 70% increase
  • Daily volume is now nearly $4.0 trillion – and the market is still growing
Forex dwarfes other markets:
  • It has 11 times the daily volume of all other global exchanges combined
  • Its daily turnover is 40 times the New York Stock Exchange (NYSE)
  • $300 are traded every day for every person on the planet
  • A week's worth of forex trading is more than the annual United States GDP
The major forex trading centres are the United States, Great Britain and Japan. Market activity peaks when more than one is open.

The history of Forex

Back in prehistory, there was no concept of currency. A cow was a cow and a sheep was a sheep. People bartered goods for other goods. The problem was that when you traded ten sheep for five cows, you had to find somewhere to keep the cows. Cows are large; they don't fit in your pocket. Something had to change.

Mesopotamia

Urban societies started to emerge in Mesopotamia about 5300 BC. Wealth was based on agricultural products – primarily grain. Grain was stored in temple granaries, and when people made deposits, they needed receipts – the receipt came in the form of a piece of metal.
By 3000 BC, this evolved into the shekel, a measure of barley. Shekels could be converted into metals such as copper, silver and gold.
Then, around 1700 BC, the Code of Hammurabi established formal laws in Mesopotamia. This included rules around the use of money in Mesopotamian society.
Money was born.

Coins

The problem with most early money was that there wasn't any standard measure. A piece of gold could be small or large, so there was no way to place a consistent value on traded goods.
Coins solved this problem. They had a standard weight, and were stamped with symbols by the state to prove their authenticity. The first standardised metal coins appeared in Greece in the seventh century BC.

The gold standard

The value of a coin continued to be determined by its weight into the early 17th century; a Dutch Guilder had one weight and a French franc had another.
However, as trade grew, coins became more and more impractical. Banks started to issue money in large denominations, using cheap materials such as paper. Physical money no longer had an intrinsic value; instead it could be redeemed at banks for gold or other precious metals.
After the Napoleonic wars of 1803-1825, a number of nations fixed the value for their currencies against gold, and promise to redeem the notes directly. Currencies could now be exchanged based on their fixed values.
This was the gold standard.

The world at war

The gold standard continued until World War I. However, there were growing concerns about some countries' ability and willingness to redeem their banknotes.
The chaos of World War I put an end to the gold standard, and nothing replaced it until 1944.
Although the gold standard was dead, international financial institutions did start to emerge between the wars. The most important was the Bank or International Settlements (BIS), founded in Basel in 1930. Its charter was to support countries without mature financial systems, or those with balance of payments deficits.

1944

In 1944, delegates from 44 Allied nations met in the United States at Bretton Woods. Economic luminaries including John Maynard Keynes and Harry Dexter White worked to create a new global financial system, so that shattered countries could be rebuilt after the war.
The Bretton Woods Agreements were signed in July, 1944 with the following results:
  • The International Monetary Fund (IMF) was established
  • Countries who cooperated with the IMF could receive stabilisation loans
  • The US dollar and British pound were announced as international reserve currencies
  • Currency values were fixed against the US dollar - with only 1% deviation allowed
  • The value of the dollar was fixed against gold
  • Countries could only alter their exchange rates with IMF permission
  • Currencies became convertible
  • Governments were required to hold reserves and intervene in currency markets
  • Nations had to pay a fee in gold and national currency to join the IMF

1947

After World War II, the US became increasingly concerned with the ability of a war-ravaged Europe to resist Soviet communism. In 1947, it established the European Recovery Plan, popularly known as the Marshall Plan after the US Secretary of State, George Marshall.

Over four years, European countries received nearly $13 billion dollars under the Marshall Plan, allowing them to buy the goods and services they needed to rebuild.

1964

In 1964, Japan made the yen convertible. With all major currencies now convertible, it became clear that the US could no longer sustain a fixed dollar rate against gold.
US dollar inflation became a major issue, and the US administration took steps to control US dollar transactions through taxation of exchange differentials. Costs increased for foreign borrowers, leading to the creation of a new eurodollar market.

1967

The British balance of payments deteriorated through the 1960s, and their gold reserves declined from $18 billion to $11 billion. In 1967, the UK had to devalue the pound, striking Bretton Woods a crippling blow. At the same time, US debt continued to grow.

1970

In 1970, interest rates decreased sharply in the US. Investors moved their capital to Europe, where rates were higher. The worst dollar crisis to date ensued.

1971

Events accelerated in 1971:
  • In May, Germany and The Netherlands allowed open trading of their currencies
  • In August, the US balance of payments deficit reached crisis point and President Nixon responded by stopping conversion of US dollars into gold
In December, matters came to a head:
  • A last attempt was made to save Bretton Woods in a meeting at the Smithsonian Institute in Washington
  • Exchange rates were allowed to deviate up to 4.5% from their fixed values
  • Central banks made major interventions in the currency markets - including $5 billion from the Bundesbank
  • Exchange rates could not be controlled despite these interventions
  • Currency exchanges in Europe and Japan were closed temporarily
  • The US devalued the dollar by 10%
  • Developed countries floated their currencies – ending fixed exchange rates 

1973 to 1974

Over this period, events continued to unfold:
  • The US dismantled the tax measures and other restrictions it had introduced in 1964
  • Central banks stopped intervening in the currency market
  • Speculators made enormous profits once interventions stopped
  • Two major banks - Bankhaus Herstatt and Franklin National Bank - went bankrupt
  • Speculation damaged many other banks
  • The Bretton Woods system ceased to exist

1976

Representatives of major nations met in Kingston, Jamaica, to create a new global currency system. This had the following results:
  • Gold was no longer used as the basis of currency valuation
  • International organisations were set up to control currency conversion
  • Currencies were used to buy other currencies
  • Commercial banks became the main mechanism for currency conversion
  • Exchange rates were floated – and were driven by market forces
The modern forex market had begun.

What is Forex?

One of the questions we get asked all the time is “What is forex trading?” When did it start? How big is it? Who are the major players? What makes currency rates change?
Here are the answers to all your questions!

What is forex?

Forex is the international market for the free trade of currencies. Traders place orders to buy one currency with another currency. For example, a trader may want to buy Euros with US dollars, and will use the forex market to do this.
The forex market is the world's largest financial market. Over $4 trillion dollars worth of currency are traded each day. The amount of money traded in a week is bigger than the entire annual GDP of the United States!
The main currency used for forex trading is the US dollar.

When did forex start?

As the world continued to tear itself apart in the Second World War, there was an urgent need for financial stability. International negotiators from 29 countries met in Bretton Woods and agreed to a new economic system where, amongst other things, exchange rates would be fixed.
The International Monetary Fund (IMF) was established under the Bretton Woods agreement, and started to operate in 1949. All exchange rates changes above 1% had to be approved by the IMF, which had the effect of freezing these rates.
By the late 1960's the fixed exchange rate system started to break down, due to a number of international political and economic factors. Finally, in 1971, President Nixon stopped the US dollar being converted directly to gold, as part of a set of measures designed to stem the collapse of the US economy. This was known as the Nixon shock, and lead to floating rate currency markets being established in early 1973. By 1976, all major currencies had floating exchange rates.
With floating rates, currencies could be traded freely, and the price changed based on market forces. The modern forex market was born.

Who trades on the forex market?

There are many different players in the forex market. Some trade to make profits, others trade to hedge their risks and others simply need foreign currency to pay for goods and services. The participants include the following:
  • Government central banks
  • Commercial banks
  • Investment banks
  • Brokers and dealers
  • Pension funds
  • Insurance companies
  • International corporations
  • Individuals

When is the forex market open?

Unlike stock exchanges, which have limited opening hours, the forex market is open 24 hours a day, five days a week. Banks need to buy and sell currency around the clock, and the forex market has to be open for them to do this.

What factors influence currency exchange rates?

As with any market, the forex market is driven by supply and demand:
  • If buyers exceed sellers, prices go up
  • If sellers outnumber buyers, prices go down
The following factors can influence exchange rates:
  • National economic performance
  • Central bank policy
  • Interest rates
  • Trade balances – imports and exports
  • Political factors – such as elections and policy changes
  • Market sentiment – expectations and rumours
  • Unforeseen events – terrorism and natural disasters
Despite all these factors, the global forex market is more stable than stock markets; exchange rates change slowly and by small amounts.

What are the advantages of the forex market?

The forex market has many advantages. These include the following:
  • It's already the world's largest market and it's still growing quickly
  • It makes extensive use of information technology – making it available to everyone
  • Traders can profit from both strong and weak economies
  • Trader can place very short-term orders – which are prohibited in some other markets
  • The market is not regulated
  • Brokerage commissions are very low or non-existent
  • The market is open 24 hours a day during weekdays
Forex4you makes the forex market available to retail investors like you. Sign up today for a Cent Account or Classic Account and start trading!

Forex trading

Start forex trading today and make money in the world’s largest financial market. Discover the benefits of fx trading with Forex4you:
  • Get access to fx trading tools designed for the best forex trader
  • No commission
  • Low spreads save you money on fx trading
  • Free demo account to learn forex trading
  • Start trades with as little as 2 cents
  • You choose the level of forex trading leverage: 1:10 to 1:500
  • Get rewarded with lucrative fx trading bonuses
  • Trade all major currency pairs
Join Forex4you and become the best forex trader you can be! Learn forex trading with a free demo account or open an Fx4u Cent Account and make trades beginning at just 2 cents. You'll pay no commission and earn attractive bonuses – the more fx trading you do, the more you earn!
We give you access to our daily fx trading tips, letting you stay on top of the market and learn forex trading as you do. When you trade with Forex4you you can achieve forex trading leverage of up to 1:500, so you only need $20 to trade $10,000.
At Forex4you, we're committed to offering the best forex trader services possible. Join today and see what we mean!

What is forex trading? How do people make money in the forex market?

When you go on vacation, you buy foreign currency. When you return, you change back the foreign currency that you have left. The problem is that you lose money, because you pay a high rate when you buy foreign currency and get a low rate when you sell. This is the spread, and it’s how the bureau de change makes a profit.
What if the spread were very small?
  • You buy $1,000 in London
  • The bureau de change is selling at 1.60 USD/GBP and buying at 1.62 USD/GBP
  • You pay £625 for $1000
  • You would lose £7.72 if you sold the $1,000 back right away – but you don’t
  • You wait two weeks and the dollar gets stronger
  • The bureau de change is now selling at 1.57 USD/GBP and buying at 1.59 USD/GBP
  • You sell your $1,000 and get £628.93
  • You’ve made £3.93 on forex trading
You can’t get small fx trading spreads from a bureau de change, but you can get them from a forex broker. You can also do fx trading on margin, so you only need to come up with 1% of the money if you have leverage of 1:100. That means you would only have to invest £6.25 to make the £3.93 profit above. Of course, your forex trading profits aren’t guaranteed; the dollar could go down as well as up.
With Forex4you, you can do forex trading from anywhere in the world, and in most major currencies. Start trading today with Forex4you:

London Session: Risk off despite new Italian government

Over the weekend Italian PM Berlusconi resigned after the Chamber of Deputies passed the 2012 budget law with 380 votes. President Napolitano named former EU Commissioner Mario Monti as the new PM to lead a technocratic government. The EUR was supported briefly on news of shift in government, however the rally was short-lived. Despite the political developments in Italy, concerns remained elevated and the EUR moved sharply lower following Italy’s auction of 5-year bonds, lack of progress in Greece and negative economic data. Italy auctioned 3B euro of 5-year notes which drew a yield of 6.29% which the highest since 1997. The bid-to-cover was 1.47 which was higher than the 1.34 seen at last month’s sale. On the data front, EZ industrial production fell by -2.0% m/m in Sept. from the prior +1.4% – the largest drop in two and a half years. Portugal’s 3Q GDP fell -1.7% y/y (prior -1.0%) and -0.4% m/m (prior -0.1%). EUR/USD was rejected from the 21-day SMA and session highs above the 1.38 figure and plunged to current levels of around the 1.3650 zone.
An EU spokesman said that the European Commission is waiting for a written statement on the commitments to be undertaken by the Greek authorities. This may prove difficult as opposition leader Samaras said that he won’t sign the EU letter on the tranche and will not support the new austerity measures as it becomes evident that the new ‘unity’ government is still divided. Greek 10-year yields rose to record levels of nearly 28.45% as the nation struggles to secure the next tranche of aid.
In Japan, GDP figures released over night were broadly in line with expectations at 6.0% annualized growth in 3Q. This data signaled an end to the nation’s recession as the country returned to growth after three consecutive quarters of contraction. The positive GDP figures were driven largely by exports and helped to support the JPY. The yen also firmed on the back of risk aversion flows and is currently stronger against all of its G10 counterparts. USD/JPY dipped to lows below the 77.00 figure and tested the bottom of the daily ichimoku cloud that comes in around the 76.85 zone.
Asian equities finished to the upside and European markets are currently in negative territory with the DAX currently down by -1.18% and Euro Stoxx 50 lower by about -1.53%. U.S. stock futures are marginally lower.  There is no economic data of note due out of the upcoming NY session. Price action is likely to be driven by headlines as EU officials (EU’s Barroso, ECB’s Praet and Constancio) will be on the wires.
Disclaimer: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that FOREX.com is not rendering investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. FOREX.com is regulated by the Commodity Futures Trading Commission (CFTC) in the US, by the Financial Services Authority (FSA) in the UK, the Australian Securities and Investment Commission (ASIC) in Australia, and the Financial Services Agency (FSA) in Japan.