Trade2Win Forums - Forex Discussion http://www.trade2win.com/boards/ en Fri, 20 Nov 2009 22:42:48 GMT vBulletin 60 http://www.trade2win.com/boards/images/misc/rss.jpg Trade2Win Forums - Forex Discussion http://www.trade2win.com/boards/ Leverage Is a Double-edged Sword http://www.trade2win.com/boards/forex-discussion/79914-leverage-double-edged-sword.html Fri, 20 Nov 2009 18:08:58 GMT The foundation of the forex industry is leverage. A few years ago we saw how LTCM used $4 billion to leverage over $1 trillion dollars in assets. George Soros used forex leverage to earn $1 billion dollars against the British pound. On the other hand, this same forex leverage drove LTCM to the... The foundation of the forex industry is leverage. A few years ago we saw how LTCM used $4 billion to leverage over $1 trillion dollars in assets. George Soros used forex leverage to earn $1 billion dollars against the British pound.

On the other hand, this same forex leverage drove LTCM to the brink of bankruptcy and nearly caused worldwide financial meltdown. We also saw George Soros hit with a $2 billion dollar loss in the Russian ruble. When trading forex, leverage is not to be taken lightly.

Leverage is defined as "the use of investment capital in such a way that a relatively small amount of money enables a trader to control a relatively large value". In forex trading there are many instances when you can have leverage as high as 100:1, sometimes even higher. Putting up a few hundred dollars to have a position worth hundreds of thousands can definitely be worthwhile.

An important fact to remember is that, in forex, the money used to leverage a position does not have any intrinsic value. The margin is not a deposit on the actual position. Instead, it is considered "earnest" money, or a "good-faith" deposit .

In forex, the margin is a flat rate that helps put you in the game. This type of leverage can be terrifying for speculators.

Typical Over the Counter (OTC) leverage rules might look like this: You must put up a minimum margin of $1,000 per unit for accounts less than $25,000. Traders must maintain a balance $1,000 or 1% for each open unit.

Such an FX policy permits you to trade foreign currencies on a highly leveraged basis—up to 100 times your investment. An investment of $1,000 would enable you to trade up to $100,000 of a particular currency. A 50% loss in the value of the account, also known as a "draw down" in usable margin, will generate a margin call.

Typically, a speculator new to forex trading will initiate his first trade by getting as many contracts as possible, thereby over-leveraging his account. The greed demon has set in. It is no longer acceptable to get just $7 for every one pip move, it's better to get $70 or more for every one pip move.

Unfortunately, this behavior is not discouraged by the majority of brokerages. Instead, they fuel this greedy behavior. A broker or dealer is paid either on a commission basis or a pip spread, according to the number of contracts his client margins. So it's more profitable for the broker or dealer, at least in the short run, for the client to get as many positions as he can afford to take on margin.

This over-leveraging does a disservice to both the client and the broker. It exposes the client to too much risk at one time, and it forces brokerage to continually get new clients to trade. As a matter of fact, it is not unusual for the first trade a new speculator makes to go against him.

Disciplined speculators know to expect that every trade they take may work against them. That being the case, the disciplined speculator paces himself by investing a little at a time until he hits upon a successful trade.

As is to be expected, even the best trading systems that exist rarely have better than a fifty-percent success rate. Therefore, you must let leverage work for you, and not allow the demon of greed convince you to abuse it. ]]> Forex Discussion Joe Ross http://www.trade2win.com/boards/forex-discussion/79914-leverage-double-edged-sword.html Spike in USD Index around 12:00 Friday 20th? http://www.trade2win.com/boards/forex-discussion/79898-spike-usd-index-around-12-00-friday-20th.html Fri, 20 Nov 2009 14:31:34 GMT Spike in USD Index around 12:00 Friday 20th?

Both Interactive Investor and Tradefair charts show a massive spike in the USD Index for around 12:00 on the 1H chart for today, Friday 20th November 2009.

Doesn't seem to be reflected in the major pairs, except perhaps in the AUD/USD, although not to the same extent.

Thoughts anyone?

Thanks, ]]> Forex Discussion montmorencyt2w http://www.trade2win.com/boards/forex-discussion/79898-spike-usd-index-around-12-00-friday-20th.html Annabel Meade Forex Trader http://www.trade2win.com/boards/forex-discussion/79896-annabel-meade-forex-trader.html Fri, 20 Nov 2009 12:50:26 GMT Has anybody come accross Annabel Meade, who apparently is a forex trader who has written a book, Trading from Home, her web site is Forex Trading Info.org Good Trading. Has anybody come accross Annabel Meade, who apparently is a forex trader who has written a book, Trading from Home, her web site is Forex Trading Info.org

Good Trading. ]]> Forex Discussion scoptions http://www.trade2win.com/boards/forex-discussion/79896-annabel-meade-forex-trader.html Killer Comm http://www.trade2win.com/boards/forex-discussion/79848-killer-comm.html Thu, 19 Nov 2009 21:19:19 GMT Hey guys quick question...Ive been making about 50 trades a day on a demo platform and as you can imagine the comm is a killer. Which company do you think I should be using for this amount of trades??? will it be better for me to use someone that charges no comm or one which charges a small... Hey guys quick question...Ive been making about 50 trades a day on a demo platform and as you can imagine the comm is a killer. Which company do you think I should be using for this amount of trades??? will it be better for me to use someone that charges no comm or one which charges a small amount???

thanks in advance for your help

J ]]> Forex Discussion jamespp83 http://www.trade2win.com/boards/forex-discussion/79848-killer-comm.html forex trading info http://www.trade2win.com/boards/forex-discussion/79700-forex-trading-info.html Wed, 18 Nov 2009 08:19:03 GMT Hi, Has any one visited forextradinginfo.org (fortune found in forex) Seems to be a forex site run by Annabel Meade! Who is someone trading from home and of course making stacks and has written a book to that effect. Hi, Has any one visited forextradinginfo.org (fortune found in forex)

Seems to be a forex site run by Annabel Meade!

Who is someone trading from home and of course making stacks and has written a book to that effect. ]]> Forex Discussion scoptions http://www.trade2win.com/boards/forex-discussion/79700-forex-trading-info.html FX transfer http://www.trade2win.com/boards/forex-discussion/79696-forex-transfer.html Wed, 18 Nov 2009 01:42:10 GMT need to transfer some moonies to america and i dont fancie being anal probed by my bank..where can i get a good deal on some doolahs to send over? (6 figures) need to transfer some moonies to america and i dont fancie being anal probed by my bank..where can i get a good deal on some doolahs to send over? (6 figures) ]]> Forex Discussion N Rothschild http://www.trade2win.com/boards/forex-discussion/79696-forex-transfer.html What do you say about opening long here http://www.trade2win.com/boards/forex-discussion/79668-what-do-you-say-about-opening-long-here.html Tue, 17 Nov 2009 21:58:54 GMT EUR/USD or GBP/USD Strategy add (reenter) tomorrow before 4pm MST, exit, than reenter on Thursday before the news... this is simply the idea based on the published forecast on FAS http://www.trade2win.com/boards/us-stocks/79548-sharing-my-views-us-stocks-fas.html EUR/USD or GBP/USD

Strategy

add (reenter) tomorrow before 4pm MST, exit, than reenter on Thursday before the news...

this is simply the idea based on the published forecast on FAS

http://www.trade2win.com/boards/us-s...tocks-fas.html
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]]> Forex Discussion Nostradamus359 http://www.trade2win.com/boards/forex-discussion/79668-what-do-you-say-about-opening-long-here.html Open your Forex Account and Receive $5,000 BONUS http://www.trade2win.com/boards/forex-discussion/79614-open-your-forex-account-receive-5-000-bonus.html Tue, 17 Nov 2009 09:25:28 GMT Open your Forex Live Account with the Best Forex Broker with all the tools to ensure you make *big profit* and *minimize your loss*. They are very very good and reliable. *They are regulated. They are the Best Forex Broker in Asia.* You can open your live account from* $1* and above. It takes... Open your Forex Live Account with the Best Forex Broker with all the tools to ensure you make big profit and minimize your loss. They are very very good and reliable. They are regulated. They are the Best Forex Broker in Asia.

You can open your live account from $1 and above. It takes just less than 5 minutes to open account. Identity card is not required to open account and start trading. Very easy to deposit and withdraw your money. You can fund your account via Bank wire, Credit card, Money Bookers, AlertPay, WebMoney, Liberty Reserve, Perfect Money, WebMoney, e.t.c.

They also offer;

Bonuses ranging from $30-$110-$300-$500-$1,000-$5,000 when you open and fund your account. Ensure you type FAO as the affiliate code in the registration page to activate the bonus

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Robot Trading is allowed.

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You can also trade with your Phone/PDA


Open your account and enjoy these services and even more.

http://www.instaforex.com/?x=FAOEnsure you enter FAO as the affiliate code in the registration page to activate the Bonus ]]> Forex Discussion richerworld http://www.trade2win.com/boards/forex-discussion/79614-open-your-forex-account-receive-5-000-bonus.html Daily Review 12/11/2009 http://www.trade2win.com/boards/forex-discussion/79302-daily-review-12-11-2009-a.html Thu, 12 Nov 2009 10:47:55 GMT USD Dollar (USD)



Dollar closed the day on a mixed note after a low liquidity trading session amid U.S. bank holiday. U.S. stocks future print modest gains reaching fresh year highs, suggesting dollar bearish rally is not over. The NASDAQ rose by 0.7% and the S&P 500 gained 0.5%, The Dow Jones appreciated 0.43% closing at 10,291. Gold (XAU) reached a fresh historical high at 1118.60$ an ounce to close the day. Crude Oil also rose closing above 79$ a barrel. Today, The Initial Jobless Claims expected unchanged at 512K. The Federal Budget Balance is expected at -150B vs. -46.6B previously.


EURO (EUR)



The EUR/USD has done little in the last few days, it attempted to break yearly high, yet failed at the 1.5050 level, triggering some modest profit taking among investors. It was a French Bank Holiday in Europe. Overall, EUR/USD traded with a low of 1.4952 and with a high of 1.5047. Today, The ECB Monthly Report will come out and might show that Europe’s economy expanded last quarter, damping demand for the U.S. currency as a refuge. Later ECB president, Jean-Claude Trichet will speak. The Industrial Production expected at 0.6% vs. 0.9% previously.


EUR/USD - Last: 1.4994
http://forex-ufxbank.com/Images/Dail...009/EURUSD.PNG


British Pound (GBP)



The Pound declined by the most in almost three weeks against the dollar after Bank of England Governor Mervyn King said a weaker currency should lead to a recovery in the economy. Sterling fell under the 1.6600 level, after U.K. inflation statement, that present the idea that the BOE is likely to keep policy steady for an extended period amid what is likely to be a slow economic recovery. GBP/USD traded with a low of 1.6534 and with a high of 1.6797. Today, No economic data expected.


GBP/USD - Last: 1.6600
http://forex-ufxbank.com/Images/Dail...009/GBPUSD.PNG


Japanese Yen (JPY)



The Japanese currency traded without clear direction against the dollar and closed almost unchanged. The currency needs to break through the 90.35 level in order to stay bullish but so far it can\'t hold above 90 levels. The Yen strengthened against the sterling after the inflation report came out. Overall, USD/JPY traded with a low of 89.28 and with a high of 90.03. Today, The Industrial Production expected unchanged at 1.4%


USD/JPY-Last: 89.82
http://forex-ufxbank.com/Images/Dail...009/JPYUSD.PNG


Canadian dollar (CAD)



Canada’s Dollar rose to the strongest level against its U.S. counterpart since Oct. 22, after reports in China showed the economy is advancing, spurring stock and commodity gains. Overall, USD/CAD traded with a low of 1.0430 and with a high of 1.0502. Today, The New Housing Price Index (NHPI) expected at 0.2% vs. 0.1% previously.


USD/CAD - Last: 1.0433
http://forex-ufxbank.com/Images/Dail...009/CADUSD.PNG ]]> Forex Discussion UFXBank http://www.trade2win.com/boards/forex-discussion/79302-daily-review-12-11-2009-a.html Best Forex Broker In Asia http://www.trade2win.com/boards/forex-discussion/79298-best-forex-broker-asia.html Thu, 12 Nov 2009 10:21:54 GMT Open your forex account with the best forex broker in Asia that offers a wide variety of tools useful for your forex trading and you also receive a bonus of up to $5,000 when you open and fund your account, it takes less than 5 minutes to open account, over 120 currency pairs, instant execution of... Open your forex account with the best forex broker in Asia that offers a wide variety of tools useful for your forex trading and you also receive a bonus of up to $5,000 when you open and fund your account, it takes less than 5 minutes to open account, over 120 currency pairs, instant execution of orders and so much more.

visit: http://www.instaforex.com/?x=FAO ]]> Forex Discussion richerworld http://www.trade2win.com/boards/forex-discussion/79298-best-forex-broker-asia.html Short Selling Forex http://www.trade2win.com/boards/forex-discussion/79282-short-selling-forex.html Thu, 12 Nov 2009 01:41:00 GMT I understood shorting forex, only I could not figure out is there a borrowing of one currency when make short of a pair i.e. like in stocks, or there is no borrowing. Please help. I understood shorting forex, only I could not figure out is there a borrowing of one currency when make short of a pair i.e. like in stocks, or there is no borrowing. Please help. ]]> Forex Discussion belhaj2010 http://www.trade2win.com/boards/forex-discussion/79282-short-selling-forex.html USD POst http://www.trade2win.com/boards/forex-discussion/78830-usd-post.html Sun, 08 Nov 2009 09:18:31 GMT I suppose we start a new post about the currency market: US non farm payrolls : bad release... Who says what for this week trading?? I suppose we start a new post about the currency market:
US non farm payrolls : bad release...
Who says what for this week trading?? ]]> Forex Discussion tomo1 http://www.trade2win.com/boards/forex-discussion/78830-usd-post.html SB Companies or Brokers for FX? http://www.trade2win.com/boards/forex-discussion/78760-spreadbetting-companies-brokers-forex.html Sat, 07 Nov 2009 13:40:06 GMT Hi, What would be better for FX trading

A spread betting firm cmc/ig/capital etc or a broker alpari/fxpro etc? and Why?

No tax on sb companies, thats good isn't it?

Please elaborate! ]]> Forex Discussion boxersam123 http://www.trade2win.com/boards/forex-discussion/78760-spreadbetting-companies-brokers-forex.html HKD peg w/ USD; HKD/CAD http://www.trade2win.com/boards/forex-discussion/78714-hkd-peg-w-usd-hkd-cad.html Fri, 06 Nov 2009 16:39:42 GMT Right now I'm getting killed by the crappy HKD/CAD exch rate since HKD is pegged to the USD and USD has been flushing down the toilet for anyone knows how long. Just wondering if this argument makes sense:
-if HKD's peg to the USD is removed, it will probably be overnight and w/o any warning whatsoever
-HKD's value will probably increase immediately, since it will then be pegged to a basket of currencies, or even the RMB
-given this, HKD will finally regain ground over the CAD

Do you think de-pegging is probable? Thoughts? What would you do if most of your assets are in HKD but you eventually need to convert to CAD? ]]> Forex Discussion trade2finind http://www.trade2win.com/boards/forex-discussion/78714-hkd-peg-w-usd-hkd-cad.html What is the EUR/GBP future? http://www.trade2win.com/boards/forex-discussion/78660-what-eur-gbp-future.html Fri, 06 Nov 2009 10:03:43 GMT Someone told me that going LONG on the EUR and going SHORT (2 contracts) on the GBP doesn't make sense, in a strategy betting on a reduction of the divergence, and that I should simply trade the "EUR/GBP future", saving on commission and spread costs.

That seems right, but when I looked at IB's forex futures, I only found the "RP", a contract that has a few hundreds of trades per day. How can that be possible? Am I looking at the wrong contract? The CME page doesn't say very much about the future, nor about its volume. What is, on IB's TWS, the December 2009 contract symbol for the correct EUR/GBP future? Can anyone help me please?

So far these are the useful links I've found:
http://www.cmegroup.com/trading/fx/f...ish-pound.html
http://www.interactivebrokers.co.uk/...conid=68532387 ]]> Forex Discussion travis http://www.trade2win.com/boards/forex-discussion/78660-what-eur-gbp-future.html