forex trading

What is Forex and how is it quoted - ANSWER-*simultaneous exchanging of one currency for another *Currencies are always priced in pairs - Most currencies are quoted in European terms, ie amount of fx per $1 » The USD is the base currency (always $1) (the denominator) and the second is the counter or quote currency or variable amount (the numerator) » The base is always quoted first as in dollar-yen or dollar swissie Where is Forex traded - ANSWER-No physical location or central exch...

FOREX - ANSWER-foreign exchange market Main Task of a Trader - ANSWER-To BUY a currency pair when exchange rates are expected to rise in the future, then SELL a currency pair when its exchange rate is expected to fall Majors (Currency Pairs) - ANSWER-Represent developed economies and are highly liquid with low spreads. They are stable and predictable in relation to other asset classes such as small cap equities and stocks. Major Currency Pairs include: - ANSWER-EUR/USD, GBP/USD , USD/JP...

What is the Foreign Exchange Market aka Forex (FX or FRX)? - ANSWER-The exchange or buying and selling of foreign currencies. How much volume is generated in the Forex Market daily? - ANSWER-$5 trillion a day When does the Forex market open? - ANSWER-6:00am Sydney Australian Time Sunday. 14 hours ahead What was the evolution in systems that eventually created the Foreign Exchange Market? - ANSWER-Bartering, Commodity, Coinage, Paper Money, Foreign Exchange Market What is the Forex ma...

Lot Size - ANSWER-What traders use to determine how much money per pip one wants to make. To convert Lot Size into $$$ - Lot Size X 10 = Actual amount per Pip. Example: (Lot Size) 0.01 X 10 = $0.10 per Pip Pip - ANSWER-The smallest change in value for any given Forex source Entry point - ANSWER-The level or price at which a trader enters into a trade (buy/sell) Stop loss order - ANSWER-An order that you place with your FX broker and CFD Broker in order to sell a security when i...

Good Bloomberg function? - ANSWER-ECTR = Trade flows between major countries FX24 = Shows the fx session chart, looking at currency pairs and show exchange rates around other countries during trading FXCA = Currency Conversion Calculator FXFC = FX forecasts FRD = Forward Calculator FXFM: FX rate forecast model for future (shows bell curve, wider the curve the more volatile) FXC = Currency Rates Matrix, to find currency pair values What are the 3 main entities that trade currencies? - AN...

Foreign Exchange Market - ANSWER-is the market for converting currency from one country into another country currency exchange rate - ANSWER-rate at which one currency is converted into another Foreign Exchange Market enables - ANSWER-1. conversion of currency 2. insures against foreign exchange risk (the adverse consequences of unpredictable changes in the exchange rate) the spot exchange rate - ANSWER-the rate at which one foreign exchange dealer converts one currency into another cur...

Foreign Exchange Market (FOREX) - ANSWER-A market for converting the currency of one country into that of another country Arbitrage - ANSWER-The process of buying a currency low and selling it high The U.S. Dollar - ANSWER-Which currency is a vehicle currency? The four main uses for FOREX markets - ANSWER--Receipt of payments through exports, investments or licensing -payments for products or services to a foreign country in its currency -for investments when firms have spare cash -c...

The Foreign Exchange Market (FEM) - ANSWER-a market where one country's money (currency) is traded for that of another country. Global Banks - ANSWER-account for about two-thirds of the market volume, while Foreign Exchange Brokers and Dealers - ANSWER-account for approximately 20 percent The demand for a given country's currency - ANSWER-is derived from the demand for its products. The three different Exchange Rate Regimes - ANSWER-Fixed, Managed, Flexible The main reason for f...

factors affecting currency value - ANSWER--balance of payment -interest rates -inflation -monetary and fiscal policy -international competitiveness -monetary reserves -gov controls and incentives -importance of currency in world -political party/leader philosophies -proximity of elections or change in leadership -expectation -forward exchange market price foreign exchange market - ANSWER--24/7 -$6 trillion USD/day -virtual market -shift noticeable in Asia, especially HK Londo...

Foreign Exchange (forex) Market - ANSWER-This promotes efficient cross-border trade by facilitating currency conversion. Also facilitates international investment and capital flows Foreign Exchange - ANSWER-This is a commodity consisting of currencies issued by countries other than one's own Demand for Foreign Exchange - ANSWER-This is downward sloping, indicating that firms and individuals will demand less foreign exchange at higher prices. This is a derived demand. Supply of Foreign ...