domingo, 20 de mayo de 2007

correlation Forex

If there are US news that move dollar price down, then at the same time when EUR/USD is going up USD/CHF MUST go down, i think it is logical no more explenation needed.So how to take adventage of currency correlation?First of all go to and checko out how much and which currencies are the most correleated ones (i can tell you know that it will be EUR/USD and USD/CHF but shhhh check it out by yourself) at the diffrent days diffrent cross pairs can have diffrent correlation value, pick the ones with value about 80 or -80, and remeber to use timescale which is suitable to your trading style, if you trade intraday then it will be stupid to look at 20 day correlation are you with me here?Second, egzamine the charts. If you choosed XXX/USD, YYY/USD and USD/ZZZ and from your technical analysis it looks like first to will go down and third will go up then ther is very high probability that very strong and quick move in your direction wil occur, enough said.Now you proboably know what to do, check correlation, check charts and set your positions :) When treading stocks traders can take advantage of volume which is very usefull when trading technically, forex do not have volume, you maybe saw tool which shows volume on charts for example meta trader has such option but it is only diffrence between close and open price, but fortunetly when trading forex, we can use something diffrent and even more usefull then volume, currency correlation.Most (if not all) currencies pairs are correletated in some level, it is mainly because of Forex structure, in fact it can be called dollar and anti dollar market, face it dollar (despite it is getting weaker and weaker every day) is still the most important currency, so US economic news has impact on all currencies, but that is not even a point.When trading forex we trade two currencies, let's make it EUR/USD for sake of example, if we predicted it is going up and we are always right :> then what about USD/CHF?
buy Do Trading Strategy! not unknown Forex

I actually couldn't find anyone who was or is using one of this strategies, so i asked asuthors.Results where terryfinig it happens those who sell this strategies don't even know what they are talking about, for example what is "forex trading hours" some of sellers are not even aware of that they can trade forex 24 hours a day!!! Lately i was many times asked about, forex trading strategies for sale, they always offer big returns easy trading without stress and the can be applied by everyone.So i decided to make my own investigation, and i must admit i had big issue with those trading strategies, they all show proofs of earning, have got "happy" customers statments even with their happy faces, but on the other hand i never heard that someone made money trading bought strategy. Not to mention they do not even know what leverage, long or short position is.There also happens sellers who know what forex is, proboably traded for some years but there are no proofs they made money, or that they strategies are succesfull.Finally there are few gems i can recommend, i contacted their authors and belive buying this books will be a good investment.Bird Watching in Lion CountryGuide to Profitable Forex Day TradingForex Trading StrategiesIf you have any experiences with any of this strategies please comment my post or write to me, it will be interesting for us all.
in increase banks & Foreign exposure forex gilts

This accounts for nearly 40% of the total daily g-secs deals , which is much higher than the earlier period. However, given the 50 basis points rise in reverse repo rates in the last six months, purchase of securities through reverse repo auction has proved to be a costlier route. In the first week of the current month, foreign banks have bought g-secs worth nearly Rs 1,000 crore on a daily basis. In April, their share was still lower at 24%.The Reserve Bank of India (RBI) permits foreign banks to classify government securities purchased under the reverse repo auction as part of the statutory liquidity requirements (SLR) exposure of the bank. According to Clearing Corporation of India Ltd (CCIL), the share of foreign banks in total g-secs' purchases was only 28% in May. As a result, foreign banks prefer outright purchase of g-sec through the secondary market. With the ongoing volatility in domestic interest rates as well as in the Sensex movement, foreign banks, whose numbers may be small, have suddenly emerged as the leading players in both the segments - gilts and forex - in the money market. Further, given the prevailing high volatility in the domestic equity markets, many foreign banks have pared their exposure in equities and increased that in the government securities.Read more here.
Technologies recommends (India) 260% Financial dividend

Financial Technologies (India) (FTIL), headquartered in India and listed on the Bombay Stock Exchange, is India`s leading vertical specialist enterprise delivering mission-critical, straight through processing solutions comprising domain expertise, technology licensing and development & transaction outsourcing services.Read more here. During the year the company has paid interim dividend of 40% and accordingly, total dividend for the year aggregates to 300%.The decision was taken by the board of directors of the company at its meeting held on June 17, 2006. Financial Technologies India has recommended a final dividend of 260% for the year.
Preview Trading Forex Japanese

Traders are in store for a slower week in the way of US economic reports, with the following slated for release; May housing starts, building permits, weekly jobless claims, May leading indicators and May durable goods orders. Returning to the fore is uncertainty from Asia, with North Korea completing fuelling of missiles with a range to reach the US.Read more here. The dollar starts the week softer against the euro, sterling and Swiss franc, but firmer versus the yen.
2 offers RefcoFX spreads wide to clients Forex FX

Refco FX, a subsidiary of Refco Group, has finally fallen to its parent company’s financial troubles and has been forced to suspend all trading.Refco Group experienced a massive devaluation earlier this year as a result of its CEO, Phillip R. Refco FX, one of the largest firms in the Forex industry, has recently announced it’s filing for bankruptcy protection. Refco FX was initially unaffected by the scandal, but has recently announced its inability to proceed.Read more here. Bennet, being accused of a scheme to falsely inflate the company’s stock price through improper accounting practices.
on 6-week FOREX-Dollar high core data inflation hits US

NEW YORK, June 13 (Reuters) - The dollar on Tuesday hit six-week highs against the euro and the yen after a higher-than-expected reading of core U.S. "That's supporting the dollar."Read more here. inflation heightened expectations for more Federal Reserve interest rate increases. Interest rate futures markets pushed up the chances of a quarter percentage point rate increase in the federal funds rate at the end of June, and some analysts are now suggesting the Fed may not stop there. "Topping out in the fed funds rate is not quite clear and no one is concluding that it is one more move and we're done," Alex Beuzelin, foreign exchange market analyst with Ruesch International in Washington, said.
Online Join Trading Revolution! the

In an industry that neverstays still, will keep visitors up-to date on all the latest advances, as well as providing all the information a person could ever require to become a successful trader on the worlds largest exchange.Read more here. Foreign exchange is a frenetic, fast-paced trading platform, which routinely trades over $1.5 trillion in a single day. Foreign exchange is a frenetic, fast-paced trading platform, which routinely trades over $1.5 trillion in a single day. /24-7PressRelease/ - ODESSA, ON, CANADA, June 15, 2006 -- Forex is the largest trading exchange in the world. With trading tools, analysis and all the plausible data at users' fingertips, trading on the Forex market has never been simpler.But in a market overflowing with potential but still rife with danger, new and experienced traders alike need a resource to hone skills and understand exactly what is happening in the industry today. With its unique style of instantaneous transactions, 24 hour trading and 0% commission on exchanges, Forex has become the largest and most lucrative trading platform in the world today.In an industry built around perpetual motion, Forex has embraced the developments on the Internet to allow online brokerages and individual traders to make a market impact. Forex is the largest trading exchange in the world. provides all of the solutions that will get any person on the right road for trading success.With advice, jargon busting and basic foreign exchange strategies, is a one-stop shop for any aspiring trader.