Resources

The Importance of Leverage19.04.2016

In Forex trading, there is usually used the leverage of 100: 1 or higher. At the same time, when the broker’s option includes leverage of 100: 1, it does not mean that it should be used at full level. A Forex trader with ingenuity will use of such an intriguing proposal only if the associated risks are clearly calculated and he will get significant benefits from it. In this article you can get acquainted with the technique of using leverage without any problems and make profits. What is Margin and Leverage? When a trader takes capital from a dealer or a broker in order to purchase a foreign currency or securities, this phenomenon is known as "buying on margin". As a rule the trader makes a deposit, introducing a certain amount on the broker’s account. After that, the trader’s money is used by the broker as collateral, which gives the trader the ability to conduct trades, the size of which exceeds his deposited amount by more times. When operating with the leverage,...

click for more

The Basic Things You Should Know About The Exchange Rate 12.04.2016

The constantly increasing number of international transactions requires a smooth settlement process, which involves the conversion of one currency to another. The Forex market is primarily designed for this purpose. Nevertheless, the imbalance of supply and demand of currencies on the world stage leads to continuous fluctuations in currency exchange rates. Thus, the exchange rate is directly linked to economic stability, and the central banks of all countries are closely monitoring the Forex market and take appropriate measures, if necessary, in order to protect the citizens. In this regard, central banks play an important role in establishing the currency by changing interest rates. By increasing the interest rates, the central banks indirectly (through a high return on invested capital) provoke traders to buy the currency of that particular country. However, there are more sophisticated methods used by the central banks to prevent the decline of the economy. Before we consider these...

click for more

The Main Types of Forex Brokers 05.04.2016

The Forex broker is a company providing brokerage services to retail customers - traders. The essence of mediation of a forex broker is to provide traders the access to large financial institutions operating in the foreign exchange market, as well as directly to the trading platforms. Forex brokers can vary according to several classifications. The main criteria of a broker are the presence of a regulator, the speed of order execution, the size of the spread, as well as the possibility of using automatic trading software. Bank - In our case – the bank is a financial institution that provides brokerage services in the banking forex trading market. The Main difference between a bank and a dealing center is that on many occasions the dealing center carries out customers’ transactions on its behalf and at its own expense. In general, the customer profit is a loss for the dealing center. In the case of the bank-broker, a conflict of interest between the client and the bank is n...

click for more

The most important economic indicators, part 229.03.2016

Consumer Confidence Index (US) This survey is an indicator that reflects the optimism of consumers. It is calculated since 1967, when the initial value was 100. The index has a limited impact on the market, as it cannot reflect the real state of the economy. However, it is traditionally used to forecast employment and general economic trends. The growth of the index is a positive factor for the development of national economy and leads to an increase in the dollar. Its value is published after the 20th day of each month at 10:00 EST. Consumer sentiment index (by the University of Michigan – USA) It is a leading economic indicator, which is better than others is correlated with future economic activity. The index is derived by a monthly telephone survey of about 500 consumers. Each of them is given 5 questions regarding their financial situation and opinions about the current state (2 questions) and future state (3 questions) about the economy. From the percentage of responde...

click for more

The most important economic indicators, part 122.03.2016

Retail sales USA – The index shows the change in the volume of sales in the retail trade. It consists of two parts: the "car sales" and "sells of the rest." As the number of cars sold is very volatile, the most accurate information derives from that segment of the indicator, which does not take into account car sales. The growth of volume of retail sales is a positive factor for the development of national economy and leads to an increase in the national currency. It has a limited impact on the market. It is published at 8:30 EST, in the middle of the month (for the previous month). United Kingdom – the indicator characterizes the level of consumption. If it is above the level of production, it usually leads to inflation. Since the value per month is quite variable, the index averaged over the previous three months describes the situation better. It is published every month and is taken into account by the market. Japan – the indicator reflects the change in the le...

click for more