- A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market.
- The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required.
- A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world.
- A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open.
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Monday, August 17, 2009
Difference Between Forex and Futures
Characteristics of Forex Market
The main characteristics of the foreign exchange market are:
1st, It consists market but no trading field
The finance industry in the western countries consist two sets of systems, namely the centralism business central operation and there is no fixed place for such business network.
2nd, Circulation work
Due to the different geographical position of the various financial centre, the Asian market, the European market, the Americas market because of the time difference relations.
3rd, Zero and Game
In the stock market, the rise or the drop of stock market could influence the value of the stock whether to rise or drop, for example the Japanese new date iron stock price falls from 800 Japanese Yen to 400 Japanese Yen, the value of this stock has been reduced to half.
Foreign Exchange (Forex) Market
The foreign exchange market is a place to trade foreign exchange currency, or it is also a place for the transaction of all foreign currency. The foreign exchange market therefore is existence, because of:
Trade and investment
Import and export business, people pays one kind of currency when doing business, but when earns another kind of currency when receive the commodity.
Speculation
Currencies exchange rates could fluctuate according to the demand and supply between two currencies.
Hedging
Due to the fluctuation between two currencies, those companies who owns foreign asset (for example factory), when these companies convert these properties into cost country currencies, there consist of certain risks.
Forex Market Development
Today, the foreign exchange market daily trading volume has amounted to 150 billion US dollars, it’s scale has gone far beyond the stock, the stock and other finance commodity markets, it has became the world's most biggest sole finance market and the also the speculation market.
The Foreign Exchange Rate
EUR/USD 1.2653
USD/JPY 107.65
GBP/JPY 195.03
The Exchange Rate Change
The exchange rate smallest change for the final figure (is 1 pip), for example:
The EUR/USD smallest change is 0.0001
USD/JPY smallest change is 0.01
Quoted Price
All quoted prices can be divided into direct quoted price and the indirect quoted price, for example:
The direct quoted price currency includes: EUR/USD, GBP/USD, AUD/USD, NZD/USD ......
The indirect quoted price currency includes: USD/JPY, USD/CHF, USD/CAD ....
For example, the EUR/USD quoted price is 1.2653, which means each euro could convert to 1.2653 US dollars, while the USD/JPY quoted price is 107.65, which means that each US dollar could convert to 107.65 Japanese Yen, the EUR/USD quoted price general demonstration is 1.2652/57, which means the broker house is willing to buy Euro dollar at the price of 1.2652, and sell at the price of 1.2657.
Foreign Exchange Markets
Another form of exchange rate is known as pegged exchange rate. This is a system where the value of the exchange rate is fixed by the government of a country and not the supply and demand of the market.
The Foreign exchange market, or commonly known as FOREX, is the largest and most prolific financial market because each day, more than 1 trillion worth of currency exchange takes place between investors, speculators and countries.
Wednesday, August 12, 2009
Investment Plans
MEDIUM PLAN - investment from 4.000 to 19.999 USD with average monthly rate of 12% , maximum of 14%
TOP PLAN - investment from 20.000 to 49.999 USD with average monthly rate of 14%, maximum of 16%
20PLUS PLAN - investment from 50.000 USD and more with average monthly rate of 17%, maximum of 20%
Fixed Term of investment of principal is 6 months
VARIABLE HIGH RISK PLAN - from 300 USD, variable monthly interests, average 16% but with a risk of partial loss of capital. Available to investors with more than 20.000 USD investments.
COMMODITIES - disponible to investors from 400.000 USD, 40-50% monthly profit, fixed term of investment of principal is 12 months, capital insured.