22nd July 2011
The Turkish Lira is the official currency of Turkey and is also used in the Turkish Republic of Northern Cyprus. It is divided into one hundred kuruş. The Turkish Lira comes in paper note denominations of 5, 10, 20, 50, 100 and 200, each of which has a portrait of Mustafa Kemal Atatürk. Mustafa Kemal Atatürk was the founder of the modern Turkish republic and is a revered figure in Turkish culture.
The Turkish Lira experienced inflation during the 70s through to the 90s and depreciated in value significantly in comparison to other international currencies. The currency saw dramatic increases against the dollar and whilst it was trading at 9 lira per US dollar in the early 70s, it rose to approximately one and a half million per US dollar in 2001. This was a rise of approximately 40% per year.
This event led to the creation of a new currency in 2003, called the ‘Yeni Turk Lirasi’ or New Turkish Lira which has become known by the same name as the old currency although has a different currency trading code, TRY, whereas the old currency was TRL. Its value was decided by removing six zeros from the value of the old Turkish Lira. The ‘new’ was removed from the name of the Turkish Lira in 2009, and the currency has remained largely stable in comparison to other international currencies.
9th April 2011
A major tool, frequently used by forex traders, is the Elliott Wave Theory, a descendant of the Elliott Wave Principle first introduced in 1938 by Ralph Nelson Elliott. Elliott theorised that trading markets followed a wave principle and that each wave is predicated on major market patterns, which would predict future market directions and price trends. In other words, by understanding history, a trader can evaluate current information and extrapolate movement in the market for the future.
There are two types of Elliott Waves. The first is an impulse wave, which tracks indicative, upward market trends and is expressed through five sub-wave patterns. The second type is a corrective wave with three sub-waves, which track downward movement in the market. Impulse waves are indicators of a bullish trend, while corrective waves are gauges of a bearish market.
Elliott Wave analysis helps traders identify an overall trend, rather subjugating trades to investor sentiment or forestalling the injection of human emotion into possibly erroneous trading. Based on the trader’s strategy, the Wave Analysis identifies the most advantageous period for maximum return on trading. Corrections are, historically, the most opportune times for traders to enter or exit a trade.
Elliott Wave Analysis is most beneficial to long term traders. As wave patterns cannot be quantified properly, the longer the pattern is established, the better the criteria fits the scenario. It is too difficult to establish wave patterns, whether impulsive or corrective, in short-term trading.
Technical studies of the historical impact of events and their subsequent effect on the market create a powerful tool for the trader.
2nd February 2011
One of the secrets to gaining a better understanding of the forex market is to learn some of the jargon and the nicknames that are commonly used. Although it is not necessary to learn the following terms, it can be very helpful.
Aussie or Ozzie. The common nickname for the Australian dollar (AUD) and a term that is used to identify anything originating in the continent.
Buck, buckskin or greenback. The nicknames for the US dollar (USD). Buckskins appeared before paper money existed and were used for trades during the late 1700’s.
Cable, Pound or Sterling. The three different nicknames used for the British Pound (GBP). The term ‘cable’ probably originated from the Trans-Atlantic communications cable that runs between Britain and the USA.
Fibre. The common nickname of the Euro (EUR).
Kiwi. Not only is this a type of flightless New Zealand bird, it is also the nickname for the New Zealand dollar (NZD).
Loonie or little dollar. Nicknames for the Canadian dollar (CAD). The Loonie is the bird depicted on the Canadian dollar coin.
Swissie. The common nickname for the Swiss franc (CHF).
Other nicknames often used in the forex market include the following for currency pairs, as well as a couple of commonly used terminologies.
Chunnel – EUR/GBP
Euppy (sometimes Yuppy) – EUR/JPY
Gopher – GBP/JPY
Ninja – USD/JPY
Figure – a term that denotes a round number such as 1.2000 or 2.4000
Yard – this refers to a billion units of any currency. For example, “I purchased a yard of the British Pound”