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Showing posts with label Currency. Show all posts
Showing posts with label Currency. Show all posts

Saturday, January 12, 2013

Currency Futures

AppId is over the quota
AppId is over the quota

Currency futures are futures markets where the underlying commodity is a currency exchange rate, such as the Euro to US Dollar exchange rate, or the British Pound to US Dollar exchange rate. Currency futures are essentially the same as all other futures markets (index and commodity futures markets), and are traded in exactly the same way.

Futures based upon currencies are similar to the actual currency markets (often known as Forex), but there are some significant differences. For example, currency futures are traded via exchanges, such as the CME (Chicago Mercantile Exchange), but the currency markets are traded via currency brokers, and are therefore not as controlled as the currency futures. Some day traders prefer the currency markets, and some day traders prefer the currency futures. I recommend the currency futures as they do not suffer from some of the problems that currency markets suffer from, such as currency brokers trading against their clients, and non centralized pricing.

As currency futures are based upon the exchange rates of two currencies, they are settled in cash, in the underlying currency. For example, the EUR futures market is based upon the Euro to US Dollar exchange rate, and has the Euro as its underlying currency. When a EUR futures contract expires, the holder receives delivery of $125,000 worth of Euros in cash. Note that this only happens when the contract expires, and as day traders do not usually hold futures contracts until they expire, they should not be involved in the settlement, and will not receive delivery of the underlying currency.

Many of the most popular futures markets that are based upon currencies are offered by the CME (Chicago Mercantile Exchange), including the following :

EUR - The Euro to US Dollar currency future GBP - The British Pound to US Dollar currency future CHF - The Swiss Franc to US Dollar currency future AUD - The Australian Dollar to US Dollar currency future CAD - The Canadian Dollar to US Dollar currency future RP - The Euro to British Pound currency future RF - The Euro to Swiss Franc currency future

Complete descriptions of many of the above currency futures, including the exchange rate that they are based upon, the futures contract specifications, and the market holidays, are available in their Market Profiles.


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Wednesday, April 11, 2012

Currency and Commodity Trading techniques-Target gold and oil alternatives


An analysis of currencies and commodities trade the sharp dealer refers to the currencies of countries whose economic production and later export are mainly raw materials, such as raw materials such as aluminium, oil and gold and agricultural products such as sugar, soya or livestock.
Although it would not be wrong to refer to many world currency such as commodity currencies, this is not the intention when traders use this description. Those who follow currency and commodity trade trends, however, use the term to describe the three major countries in which raw materials an important role in both the economic output if the output play.
A look at trade charts will learn how changes in global commodity prices seem correlated to the Canadian, Australian and New Zealand dollar coins, with the Australian dollar, a very good proxy for gold price movements and the price of crude oil price seems to correlate closely with movements in the Canadian dollar (CAD). Unlike the other two commodity currencies, the New Zealand dollar (NZD) or "Kiwi" does not seem to be associated with a particular raw material, but rather shows a close correlation with price changes in the broader measure of Commodity Research Bureau (CRB) Index.
Let's consider what happens when gold strengthened? We can expect to observe a similar increase in the AUD/USD pair (the Aussie), as all currencies trade in pairs. This equates to a strengthening of the Australian dollar against the US dollar, or put it another way, the u.s. dollar is weakening in that pair. The beginning of the economic uncertainty in the global economy, such as recession or soaring inflation, asks investors to gold as it is considered a safe haven. Currency and commodity traders will also how Golden links to the Aussie, and instead this pair trade.
Australia Gets a significant percentage of the export of raw materials and more than 50 percent of exports from this source with gold, other precious metals and copper play a major role. Take a look at trade data to see the strong positive correlation of the Aussie and gold. This means a switched-on trader can trade gold futures or an ETF, or exposure to AUD/USD in the spot forex market.
Market data will show the keen observer of currency and commodity trading the significant part played in the global commodities market by Canada, especially when it comes to her role as a strategic crude oil-producer. This leads to the inverse correlation observed between the changes in the price of crude oil and the movement of the pair USD/CAD (Loonie).
Canada is a major oil supplier to the United States, which in turn neighbour consumes more oil than any other economy. A low crude oil price would be bad news for the Canadian dollar, but positive for both the u.s. economy and the u.s. dollar. Every merchant bearish on the Outlook for crude oil prices as a proxy can go short the Canadian dollar in the Forex market, instead of short or inverse ETF in Nymex crude oil is going to buy.
Knowing how these three currencies are closely linked to raw materials, we can see why currency and commodity trading in spot forex trading takes observers their chance to take advantage of commodity market movements, or in crude oil, gold, or more in General about the commodity spectrum. There is always a bull market in currency trading, so decide what you are long or short in your chosen currency pair.

Friday, April 6, 2012

Currency and Commodity Trading techniques-Target gold and oil alternatives


An analysis of currencies and commodities trade the sharp dealer refers to the currencies of countries whose economic production and later export are mainly raw materials, such as raw materials such as aluminium, oil and gold and agricultural products such as sugar, soya or livestock.
Although it would not be wrong to refer to many world currency such as commodity currencies, this is not the intention when traders use this description. Those who follow currency and commodity trade trends, however, use the term to describe the three major countries in which raw materials an important role in both the economic output if the output play.
A look at trade charts will learn how changes in global commodity prices seem correlated to the Canadian, Australian and New Zealand dollar coins, with the Australian dollar, a very good proxy for gold price movements and the price of crude oil price seems to correlate closely with movements in the Canadian dollar (CAD). Unlike the other two commodity currencies, the New Zealand dollar (NZD) or "Kiwi" does not seem to be associated with a particular raw material, but rather shows a close correlation with price changes in the broader measure of Commodity Research Bureau (CRB) Index.
Let's consider what happens when gold strengthened? We can expect to observe a similar increase in the AUD/USD pair (the Aussie), as all currencies trade in pairs. This equates to a strengthening of the Australian dollar against the US dollar, or put it another way, the u.s. dollar is weakening in that pair. The beginning of the economic uncertainty in the global economy, such as recession or soaring inflation, asks investors to gold as it is considered a safe haven. Currency and commodity traders will also how Golden links to the Aussie, and instead this pair trade.
Australia Gets a significant percentage of the export of raw materials and more than 50 percent of exports from this source with gold, other precious metals and copper play a major role. Take a look at trade data to see the strong positive correlation of the Aussie and gold. This means a switched-on trader can trade gold futures or an ETF, or exposure to AUD/USD in the spot forex market.
Market data will show the keen observer of currency and commodity trading the significant part played in the global commodities market by Canada, especially when it comes to her role as a strategic crude oil-producer. This leads to the inverse correlation observed between the changes in the price of crude oil and the movement of the pair USD/CAD (Loonie).
Canada is a major oil supplier to the United States, which in turn neighbour consumes more oil than any other economy. A low crude oil price would be bad news for the Canadian dollar, but positive for both the u.s. economy and the u.s. dollar. Every merchant bearish on the Outlook for crude oil prices as a proxy can go short the Canadian dollar in the Forex market, instead of short or inverse ETF in Nymex crude oil is going to buy.
Knowing how these three currencies are closely linked to raw materials, we can see why currency and commodity trading in spot forex trading takes observers their chance to take advantage of commodity market movements, or in crude oil, gold, or more in General about the commodity spectrum. There is always a bull market in currency trading, so decide what you are long or short in your chosen currency pair.

Monday, November 14, 2011

Trading,Exchange,Currency


Simple sense of Forex (Forex currency exchange, currency) or any other country in the currency of a country's currency, exchange, buying and selling simultaneously. The EUR / USD USD / JPY currency pair like all the others because the world of fixed exchange rates and currency fluctuations will always be. 85% of daily turnover in currency trading has been taken. In general, four pairs of the investment: the Japanese yen, United States of America dollar, British pound and dollar for dollar the United States United States America United States dollars, euros, Swiss francs, or about EUR / USD, USD for / JPY, GBP / USD and USD / CHF pair is used on the register.stop: position 11 in 2001 were foreign exchange market (FX trading as well as to shorten the name) in one of the oldest and largest of the world has seen.'s main market, money, work 24 hours a dayAlways phrase "be careful!are allowed more time to review the error here is a list of common mistakes include:

Tuesday, November 1, 2011

Review the trading product alternative to currencies and techniques - target gold and oil.


Mainly products oil, including ingredients such as aluminum and later export analysis hard currency and Commodities traders of national currency in economic output and reference, and is gold such as sugar, soybeans, livestock and agricultural products.
It refers to many world currency trading currency as a mistake is not intended to use this explanation of traders. Use the term currency and commodity trading trends, however, play a big role to both the output of the commodity economy and exports to describe three major countries.
Trading chart to see how global commodity price changes correlated dollar currencies of Canada, Australia and New Zealand to shows and Australia dollar gold price movements for a very good proxy and oil prices as closely associates the movements of the Canadian dollar (CAD). Two other commodity currencies and unlike New Zealand dollar (NZD) or "Kiwi" specific is not linked to the product rather broad measure of commodity Research Bureau (CRB) index of price change in close correlation shows.
Enhanced look at acting as a money? Will observe the rise like every currency pair trade AUD / USD pair (Australia). This is equivalent to the Australia dollar and US dollar strengthening, or to put it another way is in pairs weakened the dollar. Investors appears to go gold as the onset of the uncertainty of the economy such as the world economic recession or inflation rise is regarded as a safe haven. Currency and commodity traders also Australia how to link money to see and trade on behalf of this pair.
Australia products from a significant percentage of the output and more than 50% of the original of the export of gold, other precious metals, copper big serves. Australia gold strongly positive correlation to reference data business look at to let. In other words, agile trader gold futures or ETFs trading or AUD / get exposure to the US dollar, spot forex market.
Market data is as crude oil producers, especially strategic role, when sharp observer, currency and commodity trading, Canada an important part of the world commodity market play appears. This movement of the USD / CAD (die) paired with the crude oil price changes observed inverse relationships.
Canada is a major oil supplier is the United States to its neighbours in order to consume more oil than the other economies. Low oil prices, bad news, the Canadian dollar is positive United States economy and both of US dollar? As a proxy rather than short short Canadian dollars on the Nymex crude oil or inverse ETF for oil purchases was about the prospect of the bearish oil prices all traders in the Forex market.
To know these three currencies and how closely commodity linked trading commodity currencies and observer of chance from the movement of spot forex trading commodity markets, crude oil why, whether money or more broadly, take the interests of the entire spectrum of products that can be seen. Always bullish market currency trading, long or short, the selected currency pair decides to do something

Thursday, October 20, 2011

Using Intermarket Analysis in Your Currency Trading

I am going to assume that if you are reading this article then you already have a foundational knowledge of the foreign exchange (forex) market, so I am going to breeze through the basics and go right to the main topic of intermarket analysis.


If you are a financial market junkie like me, the topic of intermarket analysis is a fascinating one because it can applied to making money with forex trading (the main topic of this article) as easily as it can be applied to commodities. As you can probably guess, the term "intermarket" in this context simply means looking beyond normal economic data in order to come to a conclusion about where the price of a certain currency pair is headed. The opposite of intermarket analysis is plain fundamental analysis, usually focusing on major economic data such as employment, labor, and interest rates.


A few of the most significant intermarket relationships have to do with gold, oil, and the 10-year bond yield in the United States. The reason that the 10-year yield is important is because this value can be correlated to the value of a dollar index, or a basket of goods that can reveal the overall strength of the US dollar.


When it comes to gold and oil (which are arguably two of the most important commodities in the world today), the prices of those commodities will most affect the currencies of the countries that produce these commodities. There are two main relationships when it comes to gold and oil: Canada is a large producer of oil, an so the Canadian dollar (CAD) will be affected by changes in oil prices; and Australia produces alot of gold, and there are many companies in Australia that manufacture gold products such as rare coins, so the Australian dollar (AUD) will be affected by changes in gold prices.


These are some of the most profound instances of intermarket relationships in the global economy, but keep in mind that these relationships are *not* exclusive to the currencies I just mentioned. That is to say, changes in gold prices are not going to only affect the price of the Australian dollar and leave the value of every other currency unchanged; changes in the value of these important commodities like gold and oil will affect every currency, it just so happens that a larger part of the Australian economy has business interests in gold, so if gold gets more expensive then it becomes harder to do business.


Though oil and gold each have a "flagship" currency which they affect the most, fluctuations in the price of each of these commodities will also affect every currency in a somewhat predictable manner. When it comes to gold, a basic rule of thumb is that the currency value of all nations will decrease when gold gets more expensive, since this can indicate that more people are buying precious metals because they may not have as much faith in the main governing bodies in the world.


The way that oil affects currency prices is very interesting, since at this point in history (but hopefully not for much longer) nearly every major economy is dependent on oil for transportation and heating. The way that changes in oil prices affect a country's currency depend on whether or not that country is an importer or an exporter of oil. As an example, Canada has traditionally been an exporter of oil, whereas the United States has been an importer. So when oil becomes more expensive, this can be damaging to the United States economy and beneficial to an oil-exporter like Canada.


As a forex or currency trader, it is important to understand these relationships so that you do not derive your trading signals from only one source. It is also good to know how major commodities affect currency prices because you can also use this knowledge to make money in the global stock market, by investing in companies such as a Canadian oil producer or an Australian company the specializes in gold coins.


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