15th May 2012

Bottom line of FX Moving Average

The FX Moving Average, whether simple moving average or exponential moving average, allows traders and analysts to evaluate currency pricing trends on Forex charts and develop profitable currency trading positions and strategies.

Although simply the sum of a set amount of currency closing prices for a given number of time periods divided by the number of time periods, the FX Moving Average provides the trader with valuable opportunities that include:

•    Developing directional FX indicators
•    Identifying levels of currency price resistance and support
•    Separating bearish from bullish trend phases
•    Signalling currency price trend reversal
•    Giving insights in market fluctuation and volatility
•    Devising trade positions for profitable returns

Skilful use of the FX Moving Average offers potential for real growth in the bottom line.  FX Indicators allow traders to follow and confirm trends, analyse data on overbuy and oversell, and strategically use information about currency trading events to generate higher profits.

Such technical analysis allows traders to use reliable indicators to identify support and resistance levels and predict price behaviour.  However, not all traders know how to favourably use the FX Moving Average for successful currency trading.  Forex Guides and Tutorials provide a means of learning more about beneficial use of the FX Moving Average.

Engaging in Forex forums and networks, and in discussions with traders also grows Forex knowledge. Ultimately, practising chart reading and application of FX Moving Average develops confidence in currency trading for best profit-making positions and yields.

Add a Comment | Posted in Day Trading, Forex Tips, Forex Trading Online by forexlore

12th May 2012

How Forex forums help traders keep up with market news

Forex investors who want to follow market developments and news throughout the day often turn to Forex forums and other websites to find out about current events in the markets. These forums often offer reliable suggestions and advice for new investors from experienced traders and brokers who handle managed Forex accounts.

Finding a high quality forum

Generally, when you are searching for a Forex forum to frequent, you will want to look it over to see the kind of users it attracts. If the forum has users who are well versed in online Forex trading and post information that is current and supported by expert analysis, then you might wish to spend more time reading the advice there.

Evaluating the advice on forums

However, before you accept and act on any investing advice you get on the Internet, you should consider the source. Since you wont be able to check the qualifications or references of many Internet users, it is best to consult with your personal Forex broker before using any investing strategies you see online.

Add a Comment | Posted in Forex Tips, Forex Trading Online by forexlore

8th May 2012

Currency trading on margin with CitiFX Pro

CitiFX Pro is an electronic Forex trading platform developed by Citigroup with the Margin FX market in mind.  Serving individual and smaller institutional clients trading on cash margin, CitiFX Pro offers unique margin trading opportunities for greater leverage and profit.

With a diverse range of currency pairs to choose from, CitiFX Pro allows traders and investors to allocate margin requirements for enhanced margin deposit leverage and profitable effect.  Margin requirements include the position face value multiplied by currency pair margin factor, converted to the personal account base currency along with a sufficient margin deposit within the account to cover trades.  Additionally a reduced margin deposit for losing positions whether loss occurs or not, and margin calls or automated open position closure where accounts lack sufficient margin deposit are needed.

To maintain trading position and sufficient margin deposit, investors are best to allow enough time for deposit transfers to the margin account, and, where necessary, to reduce or close open positions.

Placing margin orders through CitiFX Pro

Once information is entered and an order is placed into CitiFX Pro, the system checks that sufficient margin deposit is present for trade execution.  Where insufficient funds are in the margin account, the system will reject the trade order.

Closing open positions or existing trades decreases margin use and makes more margin available. Opening positions increases margin use and reduces margin availability.  Account value should always cover margin requirements.  Clients are held responsible for maintaining account value according to position and margin requirements.

Advantages of trading on margin

Trading on margin allows investors to observe market movements, use leverage and speculate with smaller currency trades through use of a margin deposit.  Experienced traders learn to identify profitable investment or trading opportunities that increases their margin deposit for further speculation, trading and higher yields.

Add a Comment | Posted in Forex Tips by forexlore

3rd May 2012

Looking for Forex trading techniques

Most Forex traders are looking for the best forex trading techniques to make profits from their investments.  The key to a successful forex trading technique is actually centred on good money management principles.

You have to look at your trading technique and ensure that you protect your equity so that you can get involved in profitable currency trades.  Your technique for forex trading also needs to look at how it deals with leverage.  Expect to make your losses small and infrequent and make significantly more money on other deals.  Try to understand the impact of trends on the currency market so that you can decide when to buy and when to sell.

The technique that is best followed looks at buying breaks when charts hit a high, and sell when the charts hit a low.  You can consider trading levels of currency using swing trading, which is easier for beginners to forex to follow.

You could learn about forex trading techniques online via courses that will lead you through how to apply the techniques effectively.  Use this knowledge to practice your trading techniques and you can succeed in forex.

Add a Comment | Posted in Day Trading, Forex Tips by forexlore

28th April 2012

Using MetaTrader 4 to access CitiFX Pro

MetaTrader 4 is a trading platform you can use to access CitiFX Pro research via Boston Technologies. Individual currency traders are able to use Citi’s online system on MetaTrader to manage their liquidity and pricing of currency trading. Since 2009, this system has brought together two of the biggest names in forex. MetaTrader 4 is an interface with powerful tools designed to undertake technical analysis in a user-friendly way. Forex traders are able to create their own trading system or use any of the standard commercial systems. 

CitiFX Pro was introduced in 2008 and provides its clients with the ability to access real-time information on over 130 pairs of currencies, research and commentary. The service is provided free of charge and it is supported by 24-hour customer services.

The benefit of MetaTrader 4 is that it is easy to programme and you can undertake back testing to check the effect of your strategies on the currency markets. MT4 is widely accepted as being the industry standard and there are many online forums offering support to users. Pairing it with Citi means that you have unparalleled access to a financial institution that assures your fund’s security.

Add a Comment | Posted in Day Trading, Forex Tips by forexlore

24th April 2012

Trading Forex – what you need to know

Trading Forex has never been easier. Forex has quickly become the largest known financial market in the world and is now bigger than the US stock market, with an average daily turnover of 4 trillion dollars.  Forex, sometimes known as the Foreign Exchange, is the biggest, most liquid financial marketplace.  Many people are trying their hand on Forex as it is enjoyable and can be done from the comfort of your own home.

Trading Forex is fun and exciting and the rewards are handsome for those who are educated and play the game astutely.  It is only over the course of the last 12 years, and with the advent of the internet, that regular individuals have been able to compete on the Forex markets.  Before this it was only huge multi-national companies worth millions of dollars who could participate.  Now, everyone can open a trading account with just a few hundred dollars at their disposal.

Trading Forex is a 24 hour a day game and trading never ceases, except for some possible gaps in trading at the weekend.  If you live in the UK, trading commences at 8am, the New York market opens at 1pm and the Japanese market at 10pm.  Before starting to trade on the market, it is important to determine whether you are going to be a day time trader or a night time trader.

Trading on Forex can be free as you do not always have to spend huge amounts on sophisticated systems.

Add a Comment | Posted in Forex Tips, Forex Trading Online by forexlore

19th April 2012

When central banks move the forex market

Historically and recently, central bank cash injections are used for quantitative easing (QE) to boost economic growth.  Increasing cash supply through QE tends to reduce a country’s currency or exchange rate versus other currencies in forex markets.

How central banks use quantitative easing (QE)

In evaluating economic status within a country, policy makers may decide that emergency QE measures are needed to boost economic growth.  QE measures are used when lowering interest rates has not resulted in enough consumer spending, and the interest rate is at its lowest.

QE is exercised through central bank buying of government and corporate bonds from commercial banks and insurance firms.  Money is received by these banks and financial companies, allowing a cash feed into the economy that is hoped to stimulate growth and yield, generating forex market movement.

Quantitative easing (QE) impacts forex

The European Central Bank’s recent cash injection (ECB) aims to maintain a short euro position to emerging market currencies.  Doing so is intended to make the euro an attractive funding currency in forex for buying higher-yielding assets to grow the euro zone sovereign bond market.

The desired result of quantitative easing through pre-determined central bank cash infusions may have effects opposite of the intention to protect inflation levels.  If the cash infusion amount is under or over estimated, an unwanted spike in inflation may occur.  Other factors that can reverse the intended economic boost are restrictive bank lending policies, and other market forces such as fluctuations in oil prices.

Add a Comment | Posted in Forex Tips, Forex Trading Online by forexlore

16th April 2012

Trade Forex with a Major Bank

When people first decide to start trading forex it is understandable they want to do so with a reliable broker.  A new trader is potentially handing over thousands of pounds to someone and they want their money to be secure.  The foreign exchange service from Citibank has the security of being part of one of the world’s largest banking institutions.

The offering from Citibank is CitiFX Pro and it was launched in 2007.  It is targeted towards individual investors as well as small institutions and CitiFX Pro reviews have indicated that it is a very competitive offer.  For beginners, CitiFX Pro might not be the natural choice as it does not have a great deal of educational resources and it is targeted towards experienced traders who know what they are doing.

If you do have some experience in trading foreign exchange and you want to upgrade your trading platform, then trading with a major bank can be a good step forward.  They will generally ask for a large deposit and they will not offer micro accounts, at CitiFX the minimum deposit is $10,000.

Add a Comment | Posted in Forex Tips, Forex Trading Online by forexlore

11th April 2012

Green forex trading platforms

Advancements in technology and the need to address global environmental and resource concerns drives the development of electronic forex trading systems and software.

Forex systems developments facilitate greener, more eco-friendly forex trading platforms as opposed to paper-based systems previously used for trading exchanges by banks and trading companies.  Forex participants, such as banks and retail trading brokers, now have a broad spectrum of electronic trading software and forex trading platforms from which to choose.

Forex trading platforms and social trading

Social networking encourages novel ways of forex social trading on platforms, such as Zecco and eToro.  Electronic forex trading platforms are intuitively-designed to give trading brokers better control over their marketing strategies, operations and reporting to regulators.

Social trading links people all over the world, giving access to financial and forex markets.  The idea is to share trading knowledge and skills within a trading community for smarter and greener financial trading that reaps monetary benefit for all involved.

Social trading platforms function through network activity with live feeds of currency, rates and market information where traders can follow each other and their market activity.  Novice traders may learn trading strategies with financial instruments from more experienced traders.  Trading opportunities may be identified through live feeds and copied for consistent profitability.

Social trading and socially responsible investing (SRI)

The socially responsible method of investment can be used through forex trading platforms and social trading.  Social trading platforms allow traders to engage in discussion with one another about regulatory compliance and socially responsible investment.

Social trading communities may promote social justice and environmental sustainability through their platforms, weighing investment returns against responsibility.  Some opt not to engage in these types of trading communities for fear of reduced returns.  Others balance social trading and SRI with non-social trading mechanisms or platforms that are not SRI-based.

Add a Comment | Posted in Forex Tips by forexlore

7th April 2012

Regulatory requirements for forex service providers

To provide forex services, brokers and dealers whether individual or organisation-based, need to be authorised or licensed in their country of operation.  To deal in forex services without this authorisation is against the law and can result in prosecution for financial crime.

Financial regulatory bodies, such as the FSA in the UK, and forex compliance companies provide information and criteria on how to register for forex trade and on compliance requirements.

Responsibilities of authorised forex service providers

Once registered with the right forex regulatory body, forex service providers are responsible for fair and safe representation and operation of their services.  To comply with forex industry standards, compliance responsibilities that should be met include:

•    maintaining quality control standards through risk assessments, policies and procedures
•    keeping appropriate records for audit and review
•    designating funds proportional to customer needs
•    competently executing and completing forex contracts
•    abiding by forex contract terms for clients
•    notifying clients or customers of risks and non-guarantee of profits

Forex providers in non-compliance, risk having their license revoked, their reputation damaged, potential prosecution and fines.  Forex regulators keep lists of those registered for authorised trade and also provide public lists on those unauthorised to trade in foreign exchange markets.

By law, individuals and organisations have a duty to provide reasonable care in transactions.  Those less adept at fulfilling compliance responsibilities may wish to use the services of forex compliance firms for registration, data and contract management, records, and reporting.

Add a Comment | Posted in Forex Tips by forexlore

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Currency Trading with CitiFX Pro