This simple presention is shared with NO sales agenda. It is written and shared to help you learn whether or not you have an interest in the foreign currency market.
Do you want to learn the secret...
..How to...
predict currency rates like the Pros do?
>>> visit www.forexhero.eu and get the most popular forex learning app FOR FREE!
The updated version of the highly popular "Forex basics & secrets in 15 minutes". This is the most effective and fun way to learn how to trade forex.
You will learn:
- What are the best times for forex trading
- What influences the exchange rates
- Tips from pros
- **NEW** Most effective technical strategies
- How leverage works
- ....and much more.
Forex Trading For Beginners (2019) - The Holy Grail Of TradingRoberts Eihmanis
Forex Trading pdf eBook with the most distilled and actionable info: basics, tips, tricks & strategies for forex beginners.
Some of the topics covered:
- TOP 3 forex tools that professional traders use
- TOP 9 factors that influence the forex prices
- Why more than 86% of forex traders lose money
- The #1 advice from the investing guru Warren Buffet on how to make money while you sleep.
- How much should you invest to increase your chances of profitability
- TOP 5 news reports that create the most significant opportunities for profits
- - Forex trading strategy for news trading – how not to hit the stop loss
- The best times for trading forex
- 9 worst times for forex trading that you should avoid
- Which is the best timeframe for trading forex – learn from the pros
- Which analysis is better – fundamental or technical
- Best currency pairs to trade for beginners
- The secret nicknames of currencies
- The secrets of commodity currencies – how gold and oil can influence the forex prices
This Forex trading guide is for both beginners and advanced traders. You will find here proven trading strategies, very practical money and risk management method, optimal and high performance trading, best advice about trading psychology and all tips you need to be happy winner in your trades.
Do you want to learn the secret...
..How to...
predict currency rates like the Pros do?
>>> visit www.forexhero.eu and get the most popular forex learning app FOR FREE!
The updated version of the highly popular "Forex basics & secrets in 15 minutes". This is the most effective and fun way to learn how to trade forex.
You will learn:
- What are the best times for forex trading
- What influences the exchange rates
- Tips from pros
- **NEW** Most effective technical strategies
- How leverage works
- ....and much more.
Forex Trading For Beginners (2019) - The Holy Grail Of TradingRoberts Eihmanis
Forex Trading pdf eBook with the most distilled and actionable info: basics, tips, tricks & strategies for forex beginners.
Some of the topics covered:
- TOP 3 forex tools that professional traders use
- TOP 9 factors that influence the forex prices
- Why more than 86% of forex traders lose money
- The #1 advice from the investing guru Warren Buffet on how to make money while you sleep.
- How much should you invest to increase your chances of profitability
- TOP 5 news reports that create the most significant opportunities for profits
- - Forex trading strategy for news trading – how not to hit the stop loss
- The best times for trading forex
- 9 worst times for forex trading that you should avoid
- Which is the best timeframe for trading forex – learn from the pros
- Which analysis is better – fundamental or technical
- Best currency pairs to trade for beginners
- The secret nicknames of currencies
- The secrets of commodity currencies – how gold and oil can influence the forex prices
This Forex trading guide is for both beginners and advanced traders. You will find here proven trading strategies, very practical money and risk management method, optimal and high performance trading, best advice about trading psychology and all tips you need to be happy winner in your trades.
Forward Rate Agreements, or FRAs, are a way for a company to lock in an interest rate today, for money the company intends to lend or borrow in the future.
Master in trading, lesson 1: "The basics of trading and knowledge of the fina...Stefano Gianti
Master in trading is a 8 lessons course, from the basics to the advanced level in financial trading. Please find the recording of the webinar here: https://youtu.be/4PjI5E8JFag and register to the next lessons: https://en.swissquote.com/webinars?utm_source=swissquote.eu&utm_medium=post&utm_content=SG&utm_campaign=eFX-education
The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is the largest financial market in the world, with over $1.2 trillion changing hands every single day. This paper is about trading and managing risk in that fast moving market.
Forward Rate Agreements, or FRAs, are a way for a company to lock in an interest rate today, for money the company intends to lend or borrow in the future.
Master in trading, lesson 1: "The basics of trading and knowledge of the fina...Stefano Gianti
Master in trading is a 8 lessons course, from the basics to the advanced level in financial trading. Please find the recording of the webinar here: https://youtu.be/4PjI5E8JFag and register to the next lessons: https://en.swissquote.com/webinars?utm_source=swissquote.eu&utm_medium=post&utm_content=SG&utm_campaign=eFX-education
The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is the largest financial market in the world, with over $1.2 trillion changing hands every single day. This paper is about trading and managing risk in that fast moving market.
Forex Trading Program Concepts by Todd Hanson PhDTodd Hanson PhD
According to Todd hanson PhD, on Livetradesignals trading platform, you can establish ongoing relationships with other traders that want to share ideas and experiences.
Forex is a $5 trillion-per-day market!
That’s an insane amount of money changing hands EVERY day.
And if you know exactly where to look and what to do you can bank fast currency profits…
Currency Derivatives are available on four currency pairs viz. US Dollars (USD), Euro (EUR), Great Britain Pound (GBP) and Japanese Yen (JPY). Cross Currency ...
The trading of one currency for another or system of converting one national currency into another (Rupee for Dollar)
An exchange rate is the price of a currency (value of one currency relative to the other)
It is essential for the trading between nations
For Example: how many Indian rupees does it take to buy one US dollar?
If the exchange rate is 71, it means Rs. 71 are needed to buy 1 USD
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
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Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
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• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2. Let’s start with a definition of foreign currency exchange rates. Simply put, foreign
currency exchange rates are what it costs to exchange one country’s currency for
another country’s currency.
On your next trip to England, you’ll stop at the first ATM for cash for cabs, snacks,
tips, etc.
Your ATM transaction will be a foreign exchange transaction.
You’ll take money out of your US account in dollars and receive it in pounds. Let’s
look at an example.
At the preparation of this presentation, each dollar you take out of your account will
deliver .67 GPD.
This would be considered the spot market conversion rate for converting dollars to
pounds.
Currency Investors Group
What are foreign currency exchange rates?
3. After spending a few days in England you find you need more ready cash to spend
on the trip. You visit another ATM and discover that your dollar now converts to .65
GPD.
This means that the dollar is worth less than the pound or “weaker” against the
pound than it was just days earlier.
When you arrive back home, you will need to convert your remaining pounds to
dollars for use in the US. This process will serve as another spot market
transaction and your dollar’s value will be determined by the market’s conversion
rate on that day.
The intermediary associated with your transaction, i.e. the bank, keeps a fee
associated with the exchange.
Currency Investors Group
What are foreign currency exchange rates?
4. You can convert the exchange rate for buying a currency to the exchange rate for
selling a currency, and vice versa, by dividing 1 by the known rate.
Example:
The exchange rate for buying British pounds with US dollars is .56011, the
exchange rate for buying US dollars with British pounds is 1.78536.
In other words, one divided by .56011 equals 1.78536.
Similarly, if the exchange rate for buying US dollars with British pounds is 1.78536,
the exchange rate for buying British pounds with US dollars is .56011 (or one
divided by 1.78536 equals .56011).
This is how newspapers and your trading platform will often report currency
exchange rates. **Know however, that this will not be exactly what you pay or
receive in the exchange.
Currency Investors Group
This is how we do the math
5. You should know, however, that you will not receive the price quoted in the
newspaper if you trade forex.
That’s because Futures Commission Merchants or FCM’s where you will open
your live account, and other market participants make money by selling the
currency to customers for more than they paid to buy it and by buying the currency
from customers for less than they will receive when they sell it.
This difference is called a spread and we’ll talk more about spreads later in this
program.
As you see, currency exchange rates fluctuate. Retail customers who trade in the
forex market hope to profit from those fluctuations. Our goal is to teach you how to
profit consistently with satisfactory risk management.
Currency Investors Group
How do dealers and traders make money?
6. You should know, however, that you will not receive the price quoted in the
newspaper if you trade forex.
That’s because Futures Commission Merchants or FCM’s where you will open
your live account, and other market participants make money by selling the
currency to customers for more than they paid to buy it and by buying the currency
from customers for less than they will receive when they sell it.
This difference is called a spread and we’ll talk more about spreads later in this
program.
As you see, currency exchange rates fluctuate. Retail customers who trade in the
forex market hope to profit from those fluctuations. Your goal is to profit
consistently with satisfactory risk management.
Currency Investors Group
How do dealers and traders make money?
7. Now let’s take a look at how foreign currencies are quoted and priced.
Currencies are designated by three-letter symbols. The standard symbols for
some of the most commonly traded currencies are shown below.
EUR Euro
USD United States dollar
CAD Canadian dollar
GBP British pound
JPY Japanese yen
AUD Australian dollar
CHF Swiss franc
Currency Investors Group
How foreign currencies quoted and priced
8. Currency pairs are often quoted as bid-ask spreads.
The first part of the quote is the amount of the quote currency you will receive in
exchange for one unit of the base currency (the bid price).
The second part of the quote is the amount of the quote currency you must spend
for one unit of the base currency (the ask or offer price).
For example, a EUR/USD spread of 1.2170/1.2178 means that you can sell one
Euro for $1.2170 and buy one Euro for $1.2178.
This spread could also be quoted as 1.2170/78.
Currency Investors Group
How foreign currencies quoted and priced
9. At first glance, the bid and ask prices may seem backwards to you.
That is because they are listed from the dealer’s point of view, not from your point
of view.
The first part of the spread, or the bid, is what the dealer is willing to pay to buy the
base currency. So this is the price you will get if you SELL the base currency.
In the same way, the second part of the spread, or the ask, is what the dealer is
willing to sell the base currency at, so this is the price you will get if you BUY the
base currency.
Currency Investors Group
How foreign currencies quoted and priced
10. As we look at another example, make a note of this important point.
**The forex market has no central market place as does the equities market.
There is no NASDAQ or NYSE for the forex market.
Example:
If the USD/CHF spread is listed as 1.2440/1.2443, you can sell one US dollar for
1.2440 Swiss francs and buy one US dollar for 1.2443 Swiss francs.
The forex dealer determines the execution price, so you are relying on the dealer’s
integrity for a fair price.
**The Base currency in the first currency listed in a currency pair.
Currency Investors Group
How foreign currencies quoted and priced
11. Using this USD/JPY spread (110.45/55), how many Japanese yen would it take to
buy one US dollar?
Remember, the first part of the quote is the sell quote so the dealer will the USD
for 110.45. The second part of the quote is the dealer buy quote so you can buy
one USD for 110.55 Japanese yen.
Who determines the execution price—the trader, the dealer or the exchange?
The correct answer is the dealer.
** Remember that the forex markets we are discussing have no central exchange
on which the contracts are traded, and you as the trader, have no control over the
execution price.
Currency Investors Group
How foreign currencies quoted and priced
12. Before trading forex, you will have to open a trading account with a forex dealer.
There are no rules about how a dealer charges a customer for the services the
dealer provides or that limit how much the dealer can charge.
Some firms charge a per trade commission, while other firms make their money on
the spread between the bid and ask prices they give their customers.
In the earlier example, the amount of the Euro spread is .0008 (the 1.2178 ask
price minus the 1.2170 bid price). This means that if you bought (or sold) the Euro
and immediately turned around and sold (or bought) it before the prices changed,
you would have a $.0008 loss on each Euro, or an $80 loss on a 100,000 Euro
transaction. The wider the spread, the more the price has to move before you
break even.
While some forex firms advertise “commission free” trading, they are still making
money from your trades through the bid/ask spread.
Currency Investors Group
The price you pay to trade foreign currency
13. Retail forex transactions are normally closed out by entering into an equal but
opposite transaction with the dealer.
For example, if you bought Euros with US dollars, you would close out the trade by
selling Euros for US dollars. This also is called an offsetting or liquidating
transaction.
Many retail forex transactions have a settlement date when the currencies are due
to be delivered. If you want to keep your position open beyond the settlement date,
you must roll the position over to the next settlement date.
Most forex dealers in the Spot Forex market roll open positions over automatically.
Currency Investors Group
The price you pay to trade foreign currency
14. Now that you know how forex is traded, it’s time to learn how to calculate your
profits and losses.
When you close out a trade, take the price (exchange rate) when selling the base
currency and subtract the price when buying the base currency, then multiply the
difference by the transaction size. That will give you your profit or loss.
The Equation:
Price (exchange rate) when selling the base currency – price when buying the
base currency X transaction size = profit or loss
Let’s look at an example.
Currency Investors Group
Calculating Profits and Losses
15. Assume you buy Euros at $1.2178 per Euro and sell Euros at $1.2188 per Euro.
The transaction size is 100,000 Euros.
The Equation:
To calculate your profit or loss, you take the selling price of $1.2188, subtract the
buying price of $1.2178 and multiply the difference by the transaction size of
100,000.
($1.2188 – 1.2178) X 100,000 = $100
In this example, you would have a $100 profit from this transaction.
Currency Investors Group
Calculating Profits and Losses
16. Let’s try it again using a different currency.
Assume you buy British pounds at $1.8384 and sell them at $1.8389. The
transaction size is 10,000.
By following the formula we discussed earlier, you should be able to determine
that you would see a $5.00 gain from this transaction.
($1.8389 – $1.8384) X 10,000 = $5.00
Currency Investors Group
Calculating Profits and Losses
17. Now you try it.
If you sell 100,000 Euros at $1.2170 per Euro and buy 100,000 Euros at 1.2180
per Euro, would you have a profit or loss on the transaction and how much would it
be?
Remember The Equation:
Price (exchange rate) when selling the base currency – price when buying the
base currency X transaction size = profit or loss
1.2170 – 1.2180 = .- 001
1.2170 – 1.2180 x 100,000 = -100 for a $100 loss
Currency Investors Group
Calculating Profits and Losses
18. You can also calculate your unrealized profits and losses on open positions.
Just substitute the current bid or ask rate for the action you will take when closing
out the position.
For example, if you bought 100,000 Euros at 1.2178 and the current bid rate is
1.2173, you have an unrealized loss of $50.
($1.2173 – $1.2178) X 100,000 = –$50
Similarly, if you sold 100,000 Euros at 1.2170 and the current ask rate is 1.2165,
you have an unrealized profit of $50.
($1.2170 – $1.2165) X 100,000 = $50
Currency Investors Group
Calculating Profits and Losses
19. If the quote currency is not in US dollars, you will have to convert the profit or loss
to US dollars at the dealer’s rate.
Let’s look at an example using a USD/JPY spread. If you lost 50,000 Japanese
yen on the transaction and the dealer’s rate is $.0091 for each yen, what is your
loss in dollars?
By multiplying the transaction size (50,000) by the dealer's rate ($.0091), you will
find that your loss is $455.
50,000 X $.0091 = $455
Remember that you must also subtract any dealer commissions or other fees from
your profits or add them to your losses to determine your true profits and losses.
Also, remember that the dealer makes money from the spread. If you immediately
liquidate your position using the same spread, you will automatically lose money.
Currency Investors Group
Calculating Profits and Losses
20. As stated at the beginning of this program, off-exchange foreign currency trading
carries a high level of risk and may not be suitable for all customers.
The only funds that should ever be used to speculate in foreign currency trading,
or any type of highly speculative investment, are funds that represent risk capital;
in other words, funds you can afford to lose without affecting your financial
situation.
Let’s proceed on the assumption that you have risk capital you would like to use in
trading forex. The next question is how much you need to open an account.
This will vary according to the forex dealer with some requiring balances of
$5000.00 and others opening accounts for specific marketing campaigns for as
low as $25.00.
Currency Investors Group
How Leverage Impacts Foreign Currency Trading
21. Most dealers will also require you to have a certain amount of money in your
account for each transaction.
This security deposit, sometimes called margin, is a percentage of the transaction
value and may be different for different currencies.
Keep in mind that a security deposit acts as a performance bond and is not a down
payment or partial payment for the transaction.
Let’s use an example of a dealer requiring a 1% security deposit. The formula for
calculating the security deposit is:
The current price of the base currency X transaction size X security deposit %
= security deposit requirement given in quote currency
Currency Investors Group
How Leverage Impacts Foreign Currency Trading
22. Looking at the Euro example we used earlier, multiply the current price of the base
currency ($1.2178) times the transaction size of 100,000 times 1%. Your security
deposit would be $1,217.80.
$1.2178 X 100,000 X .01 = $1,217.80
Security deposits allow customers to control transactions with a value many times
larger than the funds in their accounts. In the previous example, $1,217.80 would
control $121,780 worth of Euros.
This ability to control a large amount of one currency using a very small
percentage of its value is called leverage.
In our example, the leverage is 100:1 because the security deposit controls Euros
worth 100 times the amount of the deposit.
Currency Investors Group
How Leverage Impacts Foreign Currency Trading
23. Since leverage allows you to control large amounts of currency for a very small
amount, it magnifies the percentage amount of your profits and losses.
A profit or loss of $1,217.80 on the euro transaction is 1% of the full price but is
100% of the 1% security deposit.
The higher the leverage, the more likely you are to lose your entire investment if
exchange rates go down when you expect them to go up or go up when you
expect them to go down.
You should check your Account Agreement with the dealer to see if the Agreement
limits your losses.
Some dealers guarantee that you will not lose more than you invest, which
includes both the initial deposit and any subsequent deposits to keep the position
open. Other dealers may charge you for losses that are greater than your
investment.
Currency Investors Group
How Leverage Impacts Foreign Currency Trading
24. Margin Based Leverage = Total Value of Transaction
Margin Required
For example:
If you are required to deposit 1% of the total transaction value as margin and you
intend to trade one standard lot of USD/CHF which is equivalent to US$100,000,
the margin required would be US$1,000.
Thus, your margin-based leverage will be 100:1 (100,000/1,000).
Forex trading does offer high leverage in the sense that for an initial margin
requirement, a trader can build up - and control - a huge amount of money.
Currency Investors Group
How Leverage Impacts Foreign Currency Trading
25. An Example from Grace Cheng at http://gracecheng.com
Both Trader A and Trader B have a trading capital of US$10,000, and they trade
with a broker that requires a 1% margin deposit. After doing some analysis, both of
them agree that USD/JPY is hitting a top and should fall in value. Therefore, both
of them short the USD/JPY at 120.
Trader A chooses to apply 50 times real leverage on this trade by shorting
US$500,000 worth of USD/JPY (50 x $10,000) based on his $10,000 trading
capital. Because USD/JPY stands at 120, one pip of USD/JPY for one standard lot
is worth approximately US$8.30, so one pip of USD/JPY for five standard lots is
worth approximately US$41.50. If USD/JPY rises to 121, Trader A will lose 100
pips on this trade, which is equivalent to a loss of US$4,150. This single loss will
represent a whopping 41.5% of his total trading capital.
Trader B is a more careful trader and decides to apply five times real leverage on
this trade by shorting US$50,000 worth of USD/JPY (5 x $10,000) based on his
$10,000 trading capital. That $50,000 worth of USD/JPY equals to just one-half of
1 standard lot. If USD/JPY rises to 121, Trader B will lose 100 pips on this trade,
which is equivalent to a loss of $415. This single loss represents 4.15% of his
total trading capital.
Currency Investors Group
How Leverage Impacts Foreign Currency Trading
26. Currency Investors Group
How Leverage Impacts Foreign Currency Trading
Refer to the chart below to see how the trading accounts of these two
traders compare after the 100-pip loss.
An Example from Grace Cheng at http://gracecheng.com continued.
- Trader A Trader B
Trading Capital $10,000 $10,000
Real Leverage Used 50 times 5 times
Total Value of Transaction $500,000 $50,000
In the Case of a 100-Pip
Loss
-$4,150 -$415
% Loss of Trading Capital 41.5% 4.15%
% of Trading Capital
Remaining
58.5% 95.8%
Figure 1: All figures in U.S. dollars
27. Currency Investors Group
Some final points as we wrap this introduction
What is a pip?
Pip stands for "percentage in point" and is the smallest increment of trade in
Forex. In the forex market, prices are quoted to the fourth decimal point. For
example, if a bar of soap in the drugstore was priced at $1.20, in the FX market
the same bar of soap would be quoted at 1.2000. The change in that fourth
decimal point is called 1 pip and is typically equal to 1/100th of 1%.
Among the major currencies, the only exception to that rule is the Japanese
yen. Because the Japanese yen has never been revalued since the Second
World War, 1 yen is now worth approximately US$0.08; so, in the USD/JPY
pair, the quotation is only taken out to two decimal points (i.e. to 1/100th of yen,
as opposed to 1/1000th with other major currencies).
28. Currency Investors Group
Some final points as we wrap this introduction
What are you really selling or buying in the currency market?
The short answer is "nothing". The retail FX market is purely a speculative
market. No physical exchange of currencies ever takes place. All trades exist
simply as computer entries and are netted out depending on market price. For
dollar-denominated accounts, all profits or losses are calculated in dollars and
recorded as such on the trader's account.
29. Currency Investors Group
Some final points as we wrap this introduction
What are you really selling or buying in the currency market?
The short answer is "nothing". The retail FX market is purely a speculative
market. No physical exchange of currencies ever takes place. All trades exist
simply as computer entries and are netted out depending on market price. For
dollar-denominated accounts, all profits or losses are calculated in dollars and
recorded as such on the trader's account.
30. Currency Investors Group
Is there a next step for you?
Forex or currency trading is not for everyone. Currency Investors Group
and its training arm “YouCanTradeCurrency.com” deliver numerous
overviews, trainings, and demos for use by prospective traders. We would
like you to become a part of those sessions if you wish.
Visit http://currencyinvestorsgroup.com for information regarding
additional training opportunities, training packages, pre-approved
mechanical trading systems, and preferred forex dealer relationships.
If you are interested in a career in forex you will also find our site
extremely helpful in determining your next move.
Thank you for being with us today.
American-style option – An option contract that may be exercised at any time before it expires.
Ask – The quoted price at which a customer can buy a currency pair. Also referred to as the ‘offer,’ ‘ask price,’ or ‘ask rate.’
Base Currency – For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.
Bid – The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate.'
Bid/Ask Spread – The point difference between the bid and ask (offer) price.
Currency pair – The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.
Dealer – A firm in the business of acting as a counterparty to foreign currency transactions.
European-style option – An option contract that can be exercised only on or near its expiration date.
Expiration – This is the last day on which an option may either be exercised or offset.
Interbank market – A loose network of currency transactions negotiated between financial institutions and other large companies.
Leverage – The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as ‘gearing.’
Margin – See Security Deposit.
Offer – See Ask.
Open position – Any transaction that has not been closed out by a corresponding opposite transaction.
Quote currency – The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.
Rollover – The process of extending the settlement date on an open position by rolling it over to the next settlement date.
Security deposit – The amount of money needed to open or maintain a position. Also known as ‘margin.’
Settlement – The actual delivery of currencies made on the maturity date of a trade.
Spread – The point difference between the ask and bid price of a currency pair.
Trader – An individual who is on the other side of the trade with the dealer and whose objective is to profit from price movements.