UPDATE 1-Three Japan insurers in merger talks - TV

TOKYO, Dec 28 (Reuters) - Japan's Mitsui Sumitomo Insurance Group Holdings Inc, Aioi Insurance Co Ltd and Nissay Dowa General Insurance Co Ltd are in final talks on merging under a holding company as early as next autumn to form the country's top non-life insurer, national broadcaster NHK reported on Sunday.Sales of automobile and housing sales have been sluggish amid the economic downturn, hitting demand for car and fire insurance and weighing on the profitability of non-life insurers, prompting them to seek ways to boost competitiveness.The three aim to reach a basic agreement on the deal as early as next month, NHK added.Officials from the companies were not immediately available for comment.The merger of Japan's No.2, No.4 and No.6 non-life insurers would create the biggest player in the domestic market with revenue of about 2.7 trillion yen ($29.8 billion), NHK said. That would top current top non-life insurer Tokio Marine Holdings I

UPDATE 1-Three Japan insurers in merger talks - TV

TOKYO, Dec 28 (Reuters) - Japan's Mitsui Sumitomo Insurance Group Holdings Inc, Aioi Insurance Co Ltd and Nissay Dowa General Insurance Co Ltd are in final talks on merging under a holding company as early as next autumn to form the country's top non-life insurer, national broadcaster NHK reported on Sunday.Sales of automobile and housing sales have been sluggish amid the economic downturn, hitting demand for car and fire insurance and weighing on the profitability of non-life insurers, prompting them to seek ways to boost competitiveness.The three aim to reach a basic agreement on the deal as early as next month, NHK added.Officials from the companies were not immediately available for comment.The merger of Japan's No.2, No.4 and No.6 non-life insurers would create the biggest player in the domestic market with revenue of about 2.7 trillion yen ($29.8 billion), NHK said. That would top current top non-life insurer Tokio Marine Holdings I

Pakistani forex reserves ease to $10.16 bln

KARACHI, Feb 6 (Reuters) - Pakistan's foreign exchange reserves fell by $50 million to $10.16 billion in the week that ended on Jan. 30, the central bank said on Friday.The State Bank of Pakistan's reserves fell to $6.79 billion from $6.87 billion a week earlier, while reserves held by commercial banks rose to $3.37 billion from $3.34 billion the previous week, the bank said.Pakistan's foreign reserves hit a record high of $16.5 billion in October 2007 but fell to $6.6 billion in November, largely because of a soaring import bill.Pakistan signed a $7.6 billion loan agreement with the International Monetary Fund in November to stave off a balance of payments crisis. It received its first tranche of $3.1 billion that month. (Reporting by Sahar Ahmed;

What is the Difference Between Forex and Stock?

The Forex market has a lot of advantages compare to stock market:A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.

Forex explain

FOREX trading is simply the buying and selling of currencies. The US dollar is almost always the base currency against which other currencies are bought and sold. Of course, ones local currency can also be used as a base currency. In such a case it is called a CROSS TRADE. Cross trading is then an exchange of two currencies where the US dollar is not involved.
Say you suspect that the Japanese Yen might appreciate in value against US dollar in the near future. The current exchange rate is 120 yen to a US dollar. You go to the bank and exchange US $10,000 for 1,200,000 yen.
US$ 1.00
=
¥ 120.00
US$ 10,000.00
=
(120*10,000)
You will get:
¥ 1,200,000.00
Profit:
Later on, as expected, the Yen appreciates by five yen to 115 yen to a US dollar. You then take your yen back to the bank and exchange them into US dollars. You will get US $10,434.78. This extra US $434.78 is your profit on top of
¥ 115.00
=
US$ 1.00
¥ 1,200,000.00
=
(1/115)*1,200,000
=
US$ 10,434.78
Initial Investment was:
=
US$ 10,000.00
Your PROFIT:
=
US$ 434.78
Loss:
On the other hand, instead of appreciating, the yen further weakens. After all, it was only an expectation that the Yen will appreciate, not a guarantee. Let's say the Yen weakens by five yen to 125 yen to a US dollar. Of course, you now have a choice to either hold onto your yen until it appreciates or exchange them back into US dollars. Suppose, you want to exchange them back into dollars for fears of further yen weakness. You then take your yen back to the bank and exchange them into US dollars. You will get US $9,600.00. Your loss is US $400.00 . Now your initial investment of US $10,000 is reduced to US$ 9,600.
¥ 125.00
=
US$ 1.00
¥ 1,200,000.00
=
(1/125)*1,200,000
=
US$ 9,600.00
Initial Investment was:
=
US$ 10,000.00
Your LOSS:
=
(-US$ 400.00)
FOREX trading is neither gambling nor should it be perceived as such. In gambling, once you place a bet you cannot withdraw from a losing situation. You either win or lose. On the other hand, in FOREX, you decide how much you are prepared to lose or wait until you are in a profit situation. FOREX trading provides several means to accomplish just that.
Hence, one can trade FOREX euphorically or in an organized manner. The tools and techniques are there; it's up to you to use them for your best interest.

forex history

Man has used money, in one form or another, for centuries. At first, civilizations used mainly gold and silver to transact with one another. Goods were traded against other goods or against gold. As a result, the price of gold became a reference point. As the trading of goods grew between nations, moving quantities of gold around locations to settle payments of trade became cumbersome, risky and time consuming. Therefore, a system was sought by which the payment of trades could be settled in the seller's local currency. But how much of the buyer's local currency should be equal to the seller's local currency? The answer was simple. The strength of a country's currency depended on the amount of gold reserves the country maintained. So, if country A's gold reserves are double the gold reserves of country B, country A's currency would be twice in value when exchanged with the currency of country B. This became to be known as The Gold Standard. Around 1880, The Gold Standard was accepted and used worldwide.During the first WORLD WAR, in order to fulfill enormous financing needs, paper money was printed in quantities that far exceeded the gold reserves. The currencies lost their standard parities and caused a gross distortion in the country's standing in terms of its foreign liabilities and assets.After the end of the second WORLD WAR the western allied powers attempted to solve the problem at the Bretton Woods Conference in New Hampshire in 1944. The conference resulted in the creation of:The World BankInternational Monetary Fund (IMF), andBretton Woods Exchange SystemThe World Bank and the International Monetary Fund are collectively known as the Bretton Woods Institutions. Under the Bretton Woods Exchange System, the currencies of participating nations could be converted into the US dollar at a fixed rate, and foreign central banks could convert the US dollar into gold at a fixed rate. In other words, the US dollar replaced the then dominant British Pound and the parities of the world's leading currencies were pegged against the US Dollar.However, this fixed exchange rate system allowed any country to devalue or revalue its currency to fulfill the local financial and economic needs, particularly to make their exports more competitive in the global market. The massive US balance of payments deficits of early 1960's began casting shadows of doubt in the strength of the US dollar. During the same decade, the currency crisis in Europe, mainly in the United Kingdom, France and Germany brought about the end of the Bretton Woods accord.The United States, under president Nixon, retaliated in 1971 by devaluing the dollar and forcing realignment of currencies with the dollar. The leading European economies tried to counter the US move by aligning their currencies in narrow band and then float them collectively against the US dollar.Fortunately, this currency war did not last long and by the first half of the 1970's leading world economies gave up the fixed exchange rate system for good and floated their currencies in the open market. The idea was to let the market decide the value of a given currency based on the demand and supply of the currency and the economic health of the currency's nation. This market is popularly known as the International Monetary Market or IMM. This IMM is not a single entity. It is a collection of all financial institutions that have any interest in foreign currencies all over the world. Banks, Brokerages, Fund Managers, Government Central Banks and sometimes individuals are just a few examples of these institutions. This is very much the present system of the exchange of foreign currencies. Although the currency's value is dependent on the market forces, the central banks still try to keep their currency in a predefined (and highly confidential) fluctuation band.

Forex Recommendation

Buy USDJPY at 111.64 on 2 January 08.
Volume- High
Take Profit- 112.18
Stop Loss- 111.05

life insurance quotes

If you are a twenty-something newlywedseeking a 30 year term policy or one thatis considered high risk seeking a highrisk life insurance policy CompuQuotescan save you money.In addition to familycoverage, term life insurance can beused for key man protection, buy sellagreements, guarantee of mortgage or SBAloans, estate planning and conservation.

Forex Charting Trial

To obtain comprehensive training and support. Our advanced at home study course provides the experienced trader with new insights into the Foreign Currency Exchange. Our rigorous Three Day course provides experienced traders with in-depth exposure to the money market and Market Traders Institute's Methodology. Finally, MTI's subscription to our online interactive (video & Voice) trading sessions. Watch and trade along with our verified professionals as they trade in real-time. Trade along with them. Learn why they are successful traders.Forex For Beginners MTI's live Interactive Trading Sessions are a chance to observe and become skilled at the ins and outs of the currency exchange market. MTI has several educational plans for the new trader. Starting with our study at home course, which can be purchased in moduals. MTI's three day intensive Forex workshop is an on campus course, arming new Traders with the knowledge needed to become successful money market traders. Finally, we highly recommend the "Earn While You Learn" course, a monthly subscription to our online live interactive trading sessions. MTI supplies the beginning currency market trader with lessons (study at home), Software, and access to MTI's live, Interactive trading sessions, The new trader can basically pay for the course and earn money in the Forex at the same time. We provide everything you need, Software, no-commission brokers* and tutoring. You provide the time and the determination to become skilled at Forex trading.Trial To receive your Free 14 Day Trial simply complete the form - (Beginners - Please check the box on the form for the Free Demo account to receive the Trading software, and the CD Rom Lesson, They're Free!)*The FCM and IB are compensated for their services through the spread between the bid/ask prices.

Forex Related Material Books

Rehanical Books
exclusive4xReader
Genious4xSolutions
4x4allothers
Markete4xrates
4xMarketingCategories
4xhighrates
forex4x ship

Credit Cards

This article is about the payment system. ForThe Price Is Right game,see Credit Card(pricing game).This is often doneto secure a lower interest rate, secure afixed interest rate or for the convenience ofservicing only one loan.Debt consolidationcan simply be from a number of unsecured loansinto another unsecured loan, but more oftenit involves a secured loan against an assetthat serves as collateral, most commonly ahouse. In this case, a mortgage is securedagainst the house. The collateralization ofthe loan allows a lower interest rate thanwithout it, because by collateralizing,the asset owner agrees to allow the forcedsale (foreclosure) of the asset to pay backthe loan. The risk to the lender is reducedso the interest rate offered is lower.

Jet Charter

Ameristar Jet Charter is an Americancharter cargo airline based in Dallas,Texas, USA. It operates on demand cargoair-taxi services, as well as actingas a broker to cargo carriers operatinglarge aircraft. Its main base isDallas-Fort Worth International Airport,with hubs at Detroit Metropolitan WayneCounty Airport, El Paso InternationalAirport and Nashville International Airport.

forex benefits

We already have mentioned that factors such as the size,volatility and global structure of the forex markethave all contributed to its rapid success. Given thehighly liquid nature of this market, investors areable to place extremely large trades withoutany given exchange rate. These large positionsare made available to traders because of thelow margin requirements used by the majorityof the industry's brokers. For example, itpossible for an investor to control a positionof US$100,000 by putting down as little as US$1,000up front and borrowing the remainder from his or her broker. This amount of leverage acts asdouble-edged sword because investors can realizelarge gains when rates make a small favorablechange, but they also run the risk of a massiveloss when the rates move against them. Despitethe risks, the amount of leverage available inthe forex market is what makes it attractive for many speculators.The currency market is also the only market thatis truly open 24 hours a day with decent liquiditythroughout the day. For traders who may have a day jobor just a busy schedule, it is an optimal market to tradein. As you can see from the chart below, the majortrading hubs are spread throughout many differenttime zones, eliminating the need to wait for an openingor closing bell. As the U.S. trading closes, othermarkets in the East are opening, making it possibleto trade at any time during the day.

Good Forex Signals Performance Using Proper Money Management

It’s been quite long time since I did last update of Pipholic forex signals performance. I really haven’t had enough time to continue making the performance update. Fortunately, few days ago Silvio Czerwinski was generously writing a summary of Pipholic free forex signals.
He browsed and read each forex signals article from June 2007. He then made the summary and interestingly he also wrote a money management model for it. He sent me the file and allow me to share with you.
The file shows interesting result of trading GBP/USD using Pipholic free forex signals and Silvio’s money management model. The US$ 5,000 initial deposits grows into about US$ 9,000 within the period from June 2007 to April 2008.
I took the above graph from Silvio’s file. It shows the equity grow without any large drawdown. You can download the file (.zip) from the download link at the end of this article. I have asked Silvio to answer any question about it here.
Silvio is one of Pipholic readers, he lives in Germany and currently provide free forex signals for his forex blog readers

Foreign exchange market

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.[1] (individuals) are a small fraction of this market and may only participate indirectly through Retail tradersbrokers or banks, and are subject to forex scams
Market size and liquidity
The foreign exchange market is unique because of
its trading volumes,
the extreme liquidity of the market,
the large number of, and variety of, traders in the market,
its geographical dispersion,
its long trading hours: 24 hours a day (except on weekends),
the variety of factors that affect exchange rates.
the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
As such, it has been referred to as the market closest to the ideal perfect competition. According to the BIS,[1] average daily turnover in traditional foreign exchange markets is estimated at $3.21 trillion. Daily averages in April for different years, in billions of US dollars, are presented on the chart below:
This $3.21 trillion in global foreign exchange market "traditional" turnover was broken down as follows:
$1,005 billion in spot transactions
$362 billion in outright forwards
$1,714 billion in forex swaps
$129 billion estimated gaps in reporting
In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.
Exchange-traded forex futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts. Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).
Average daily global turnover in traditional foreign exchange market transactions totaled $2.7 trillion in April 2006 according to IFSL estimates based on semi-annual London, New York, Tokyo and Singapore Foreign Exchange Committee data. Overall turnover, including non-traditional foreign exchange derivatives and products traded on exchanges, averaged around $2.9 trillion a day. This was more than ten times the size of the combined daily turnover on all the world’s equity markets. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the foreign exchange market. [4]
Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 32.4% in April 2006. RPP
The ten most active traders account for almost 73% of trading volume, according to The Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203 on a retail broker. Minimum trading size for most deals is usually 100,000 units of currency, which is a standard "lot".
These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100 / 1.2300 for transfers, or say 1.2000 / 1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e. 0.0003). Competition is greatly increased with larger transactions, and pip spreads shrink on the major pairs to as little as 1 to 2 pips.

Whole Sale Goods Platform

Under the label Design for X a wide
collection of specific design guidelines
are summarized. Each design guideline
addresses a particular issue that is a)
caused by, or b) effects the characteristics
of a product. The design guidelines itself
propose usually an approach and corresponding
methods that may help to generate and apply
technical knowledge in order to control,
improve, or even to invent particular
characteristics of a product. From
knowledge-based view, the design guidelines
represents an explicit form of knowledge,
that contains information about "knowing-how-to"
(see Procedural knowledge). However, two problems
are prevailent. First, this explicit knowledge
(i.e. the design guidelines)

Forex swap

In finance, a forex swap (or FX swap)is an over-the-counter
short terminterest rate derivative instrument.In emerging money
markets, forex swapsare usually the first derivativeinstrument
to be traded, ahead offorward rate agreements.

Rate of Change (ROC) and Momentum

Introduction and Calculation

The Rate of Change (ROC) indicator is a very simple yet effective momentum oscillator that measures the percent change in price from one period to the next. The ROC calculation compares the current price with the price n periods ago.

ROC = ((Today's close - Close n periods ago) / (Close n periods ago)) * 100

The plot forms an oscillator that fluctuates above and below the zero line as the Rate of Change moves from positive to negative. The oscillator can be used as any other momentum oscillator by looking for higher lows, lower highs, positive and negative divergences, and crosses above and below zero for signals.

Example

The chart of Lucent shows that a large negative divergence formed in Dec-99 and the ROC moved into negative territory just before the large decline. While this was a superb sell signal, the ROC can produce whipsaws as it moves above and below zero. As with most technical indicators, ROC should be used in conjunction with other aspects or technical analysis as well as other non-momentum based indicators.

There is another popular indicator called "Momentum" that is almost identical to the Rate of Change indicator. The only difference is that the Rate of Change indicator adds 100 to the ROC's value. Momentum also uses 100 as its center line instead of zero like the ROC. Because both indicators give identical signals, StockCharts.com has choosen to only implement the Rate of Change version. People that are used to using the Momentum indicator can simply replace that with the ROC indicator on their charts.

Pivot point

Pivot Point The point at which resistance disintegrates and the stock price begins to rise past the prior resistance level. This point can be considered the optimal time to buy as the bulls are gaining strength.

Introduction to Forex Trading

The 1971 abandonment of the Bretton Woods Accord and the subsequent unwinding of the regime of universal fixed exchange rates gave rise to the foreign exchange market as we know it today.

Forex refers to the foreign exchange market, where brokerage firms and banks are connected over an electronic network that allows them to convert the currencies of countries around the globe. The forex market is the largest and most liquid financial market in the world. The daily dollar volume of currencies traded in the currency market exceeds $1.4 trillion, many times larger than the combined volume of all U.S. equity markets.

While the foreign exchange market is often seen to be dominated by government central banks and commercial and investment banks, trading on the currency exchanges has become increasingly accessible to private investors through technological innovations such as the internet. The most commonly traded currencies are the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. The FX market runs 24-hour hours a day, 5 days a week with continuous access to global dealers. Trading is not centralized on an exchange, as with the stock and futures markets. Transactions are conducted between two counterparts over the telephone or via an electronic network.

Foreign Exchange is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). For example, you would execute a trade when you expect the currency you are buying to increase relative to the one you are selling. If the currency you are buying increases in value, you must sell the other currency to close the position and take a profit. The first currency in the pair is called the base currency and the second is called the counter or quote currency. Usually the US currency is the base currency and quotes are given in $1 USD per counter currency, e.g. USD/JPY. The exceptions are the British Pound, the Euro and the Australian Dollar.

Five Fibonacci Tricks

Fibonacci jumped into the technical mainstream late in the bull market. Futures traders had it all to themselves until real-time software ported it over to the equity markets. Its popularity exploded as retail traders experimented with its arcane math and discovered its many virtues.

Fibonacci ratios describe the interaction between trend and countertrend markets -- 38%, 50% and 62% retracements form the primary pullback levels. Apply these percentages after a trend in either direction to predict the extent of the countertrend swing. Stretch a grid over the most obvious up or down wave, and see how percentages cross key price levels.

Convergence between pattern and retracement can point to excellent trading opportunities. Keep in mind that retracements work poorly in a vacuum. Always examine highs, lows and moving averages to confirm the importance of a specific level.

Discord between retracement and the underlying pattern generates noise instead of profit. Move on to a new chart when nothing lines up correctly. This divergence generates most of the whipsaw in a price chart. Alternatively, strong phasing between Fibonacci and pattern exposes highly predictive reversals at narrow price levels.

Let's look at five tricks to improve your Fibonacci skills. Add these twists and turns to your toolbox and apply them to your next trade. I promise they'll serve you very well in the years ahead.

First Rise/First Failure

First Rise/First Failure marks the first 100% retracement of a trend within your time frame of interest. It provides an early reversal warning after a new high or low. The 100% retracement violates the major price direction and terminates the trend it corrects. From this level, the old trend can reestablish itself if it breaks through the old 38% level. More often, traders will use that level to enter low-risk positions against the old trend.

Parabola Hunt

Parabolic movement tends to occur between the 0%-to-38% and 62%-to-100% Fibonacci levels in all trends. This tendency offers a great tool for finding the big moves when looking for trades. Watch for congestion to form at the 38% or 62% level. Then use a simple breakout or breakdown strategy when price moves past it. The next thrust can be dramatic, with price moving like a magnet back to an old high or low. Of course, the strategy only works when you can find these levels in advance.

Continuation Gap Extensions

You can often target the exact price a rally or selloff will end at by using the continuation gap as a Fibonacci extension tool. Identify the gap by its location at the dead center of a vertical price wave. Then start a Fib grid at the beginning of the trend and extend it so the gap sits under the 50% retracement level. The grid extension points to the terminating price for the rally or selloff.

Overnight Grids

Find an active stock and start a grid from the high (or low) of a session's last hour. Stretch the grid to the opposite end of the next morning's first hour low (or high). This defines a specific price wave traders can use to uncover intraday reversals, breakouts and breakdowns. The overnight grid also offers a way to trade morning gaps. The gap will often stretch across a key retracement level and target low-risk entry on a pullback.

Second High/Low

Many traders can't figure out where to start a Fib grid. Here's a trick to help you place it where it'll do the most good. The absolute high or low in a price wave isn't the best starting point for a grid most of the time. Instead, look for a small double bottom or double top within the congestion where the trend began. Swing one end of the grid over this second high (or low), instead of the first. This will capture a specific Elliott Wave that conforms to the trend you're trying to trade.

Fibonacci Trading

Leonardo Pisano, better known by his nickname, Fibonacci, was an Italian mathematician born in Pisa in the 12th century. He is known to have discovered the Fibonacci numbers, said to be based upon observations of the Great Pyramid of Gizeh in Egypt. Fibonacci Numbers are a sequence of numbers where each successive number is the sum of the two previous numbers.

e.g. 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc.

It is the ratio of the Fibonacci sequence that is significant, rather than the actual numbers in the sequence. The quotient of the adjacent terms in the series possesses an amazing proportion, roughly 1.618, or its inverse 0.618. This proportion is known by many names: the golden ratio, the golden mean, PHI, and the divine proportion. The dimensional properties that adhere to the ratio of 1.618 occur repeatedly in nature. Examples are as various as mollusk shells and the shapes of gallaxies containing billions of stars.

When used in technical analysis, the golden ratio is most often translated into three percentages: – 38.2%, 50%, and 61.8%. However, other multiples can be used, such as 23.6%, 161.8%, 423%, and so on. The Fibonacci sequence is applied to finance in several ways: retracements, arcs, fans, and time zones.

How does Forex work?

The Forex market is nowhere and everywhere. There is no central place where market players execute trades. Instead, Forex is comprised of currency transactions between banks, investment funds, Forex brokers and traders. Currency supply and demand and investors' expectations determine the market price of a currency. Some currencies also come under significant influence from Central Banks. The Forex market is a virtual market, which means that it is not followed by a physical delivery of currency

What is Forex II?

The Global Forex market is one of the largest markets in the world in terms of daily volume. Its trade volume varies from 1 to 3 trillion USD every day, which is 6-8 times higher than the volume in the stock exchange worldwide. The commodies traded on Forex are national currencies. The Forex market enables exporters and importers to engage in international trade, banks and financial institutions to provide sophisticated financial services, governments to implement policies, and tourists to travel. In essence, it is a truly global market, which operates around-the-clock and around-the-globe. The global nature of the Forex market, utilizing modern information technologies and financial services, enables private investors to participate in the market from their homes or offices via telephone or computer.

There are many currencies in the world and their prices

There are many currencies in the world and their prices fluctuate against one another and change value over time. This creates the potential for investment and/or speculation. Forex (short for FOReign EXchange) is the market where international currencies are traded against one another. Evolution of communication technologies in recent years has made it possible for millions of individual investors to access Forex, market which not so long ago had been accessible only for banks and large institutional investors. FOREX is one of the newest financial markets and it is a good idea to learn how it is different from other markets. Currency rates are determined by many factors, such as political events and economic developments in national economies. They are also determined by the investor attitude influencing the market at any given moment. If you were able to foresee these developments you would be able to make profitable trades on Forex. However, if you assessment is not correct, you may suffer significant losses. Just like anything else the key to successful Forex trading is knowledge

Aussie Rises to New Monthly Maximums

The Australian dollar reached the new monthly maximum the Japanese yen as the stock markets signaled growth for a third day on improved earnings of the banks.
The currency experienced a minor decline during the day as the markets reacted on the RBA minutes stating the necessity of the further interest rate cuts. But then the growth followed. The Aussie also fell against the New Zealand dollar as the gain in commodities market made the NZD look more promising than than its Australian counterpart.
The analysts talk mainly about the good news from the U.S. banking sector as the primary reason for the global stock and high-yielding optimism. Some are afraid of the further rate cuts and say that the current optimism can’t last for too long and the Australian dollar has now some considerable space to fall. When the optimism is over, the crude oil will start to pare its gains and the Aussie will have to step back against other currencies.
AUD/USD is currently trading near its open level at 0.6583 as of 13:52 GMT after almost reaching new monthly high at 0.6615. AUD/JPY rose from 64.74 to 65.03 after peaking at 65.39 — the highest level since January 8. AUD/NZD fell for sixth day in a row — from 1.2442 to .12424. NZD/USD rose from 0.5288 to 0.5300, while NZD/JPY went up from 51.96 to 52.59 today.

Forex(FX) Trading Strategy

A forex trading strategy can provide profit for a skilled speculator. A FX trading strategy is, simply put, a method for using foreign exchange rates of currency from various countries to buy one country’s currency when it is undervalued, and exchange it for another country’s currency with it is of normal or higher value, with the difference being profit.
A common forex trading strategy could involve US dollars and the Euro, the official currency of most European countries. To use a simple example of a forex trading strategy, a speculator would buy Euros when they were undervalued; let’s say two Euros equaled one US dollar. This would be unusual because normally the two currencies are almost equal.
By spending one hundred US dollars to buy two hundred Euros a speculator would be able to buy more goods in Germany, France or other European countries. When the market changed and became more even, the speculator would have twice as many goods as he normally would have, and would be able to exchange those goods for US dollars once again.
The difference would be profit. This is a very simple explanation of a forex trading strategy, but gives the basics to the new speculator.Of course, when coming up with a forex trading strategy the trader should only use money that he or she can afford to loose. This is speculation, as opposed to investment. The chances for profit are real, and could come quick but if the market turns the opposite way than expected the trader could actually loose money.
A forex trading strategy can reap large profits, but if anyone tells you that all trades will result in profit, they haven’t studied the market as well as they should have and they are not correct. Still having a sound forex trading strategy for a competent businessman can be a profitable venture. It requires study of the markets, which takes time and is usually best accomplished by reading financial newsletters and using tools available on the Internet.
Getting the advice of a professional forex trading strategy specialist can also be a sound choice. Professionals have the time, education and skills and can generally help a trader come up with a forex trading strategy that will result in profit more often than one could do without their help.The most sound forex trading strategy options are generally used by large multinational corporations who are often able to make steady profits.
Watching what large corporations do who are involved in forex trading, looking for patterns they may have set, can help a trader to get the benefit of the very expensive expertise used by these large companies. Making watching of the large traders a part of a person’s education is definitely a good place to start a forex trading education. Identifying the state of the market, determining the time frame you are working in, and the currencies that have fluctuation and getting the advice of professionals through self study can be the wisest forex trading strategy option available.

Rupee to Post Worst Weekly Drop This Year

The Indian rupee declined against the U.S. dollar today and is currently ready to show the biggest weekly drop since the beginning of the year as the slump of the U.S. stock markets was followed by the decline in the Asian markets.
The Bombay Stock Exchange benchmark index (SENSEX) is currently falling by more than 2.5 percent. Such a strong decline in the stocks prompt foreign investment funds to sell their Indian equities and to convert from the rupee the Indian dollar. The rupee is currently approaching its 11-week lowest level against the dollar.
The analysts see a little chance that the rupee will be growing again soon — even the country’s officials are saying that the recession will have a deeper influence on the Indian economy than it was expected earlier. The capital outflows are likely to continue to be the major disadvantage of the INR, which is likely to get many speculative positions traded against it.
USD/INR from 49.73 to 49.87 as of 9:13 GMT today — its highest level since early December. The weekly gain of this currency pair is 1.9 percent.

Why should I learn Forex currency trading?

I think you are already aware that Forex trading is a good way to make money at home. More over, I bet you knew someone, or would have heard of someone, who's already making tons of good money in FX trading.
But what you wouldn't know is that 7 out of 10 traders keep losing money in Forex market! That's right, 70% of individual FX traders keep losing their hard-earned money in the market; while the rest of the 30% work freely at home and earn millions annually)
Wonder what differs between the losing 70% and the winning 30%?
Forex trading skills and the trading system! If you want to work less than 20 hours a day at home, if you want to make millions by trading freely at home, if you want to have financial freedom by trading Forex; you better LEARN Forex trading before you start trading Forex. Forex market is definitely not a game for newbie and you need to brush up your skills before getting your hands wet.

Forex Enterprise — A Full Review

new marketing course to hit the internet by Nick Marks that advertises earnings of $1000 a day and $30,000 a month respectively. This turnkey system generating multiple streams of income is relatively new and so it is my pleasure to review it for you. After purchasing you are given a login page where you are introduced to the system which is in website format. Everything is easy to access and well organized. After Nick gives you a little pep talk about positive thinking and goal setting, you will be introduced to his first recommendation: join Coastal Vacations. While not a part of his main Forex system this is a recommendation I could've done without. In the pay per click section you are given a large list of keywords that Nick found convert really well with his system. Some of the keywords in the list have bid prices already attached to them so you can get front page exposure. The course also has $50 in free adwords credit that unfortunately only works with new accounts so I was out of luck. If you don't already have an account this is worth the price of the course alone. The forex course shows you some inexpensive traffic methods and provides links to these sources. He also covers stuff like pop-over ads, e-mail lists and autoresponders. Not bad information by any means, and is an alternative to pay per click advertising if you have a smaller budget. He has an ebook package that seemed like it was going to be really cool as there were dozens of bonus ebooks and software programs covering everything from creating ebooks and website templates, to getting top positions in the major search engines. As I took a closer look at this package I realized there were some bargain bin informational products included. However, there were also alot of goodies in there as well that I found rather useful. You get so many ebooks and software in here that it really is worth far more than the price of the course. There is a section on becoming an Ebay power seller in 90 days that goes into a fair amount of detail and wasn't bad. However, Ebay isn't something I have ever been particularly interested in doing. There is also a section on baccarat strategies that I had no interest in. One of the last sections of his course introduces you to e-currency exchanging using the DXINONE system. It is a great way to acquaint yourself with this increasingly popular opportunity without having to buy standalone e-currency courses which can cost a couple hundred dollars. The author has combined several effective ways to earn money online and rolled them all into one course. While I didn't jump up and down about all of his strategies, the free ebooks, software, and adwords credit make Forex Enterprise worth the money.

The Forex Market is full of misleading advertising

Why complain when someone tries to bring a little balance, or reality into public view.I have read several times that 80 to 85% of all new fx trading accounts lose money overall. Why is this when a trader's odds should be just under 50% using blind random trade selection.The reason is simple. The real cost of trading forex is not 2 to 5 pips as advertised everywhere (irresponsibly). It is on average closer to 65 pips as stated at forexfacts.atspace.com Wake up people, you either have a realistic understanding of your odds, or you lose. I win consistently through hard work and knowledge, logic, understanding trader sentiment, sound risk management etc... I NEVER set stop losses! I repeat I NEVER set stop losses.If you want to win, there are no shortcuts. Well that is my understanding and I hope it helps.Good luck and stop picking on people who try to break your false illusions.

Reality of Online Forex Trading

Foreign exchange trading is the trading of currencies. Most currencies can be traded. Huge amounts of currencies are traded 24 hours a day, 5 days a week. On average $1.9 trillion is traded a day. The most traded are United States Dollar, Japanese Yen, Euro, Canadian Dollar, British Pound Sterling, Australian Dollar and Swiss Franc. Many brokers will let you open an account with a starting balance of just $250. Though that may seem small, remember you will be trading on margin. Your $250 investment may let you control $25,000. As with all investments there are risks so make sure you take the time to study the markets and your exposure before making your first trades. I highly recommend that you do some paper trades first to make sure you have understood how the markets work. No risk training, just write down the trades you would have done for real and chart the prices. Buy and sell and see if you have the right strategy before making real trades. A fast internet connection will allow you to do forex trading online. Your broker will give you many online tools to allow you to study the markets: Real time quotes, news feeds: Visit different broker's websites and compare the services they offer. Some brokers give you the possibility to open demo accounts. Do so, to test their software and find the one you like best. Before you start trading make sure that you have learnt the terminology: Market Order, Limit Order, Stop Order. You may find the definitions of these terms and more information at http://www.forex.value-guides.com/calc-forex.html Calculating Forex Profits And Losses. All currencies have standard identifying code used worldwide, some examples are: EUR (European euros), GBP (United Kingdom pounds), AUD (Australian dollars). Of course you don't have to know them all but it may be good to be able to recognize all the major currencies codes so that you will be able to make quick decisions. To make sound evaluations, you need information. Follow carefully the world's current events, economic and political news. You will be surprised to see how, what may seem to you as insignificant will cause the currencies markets to fluctuate wildly.

Forex Trade: Main Drawbacks of a Forex Trader

Why is it that very few traders succeed in the Forex trading environment while the grand majority of traders fail to achieve success? Although there is no hard answer to this question, there are a few things that will put you one step ahead and will definitely put the odds in your favor. The main purpose of this article is to guide you through some important aspects of Forex trading. But in a different way, instead of telling you what to do or the best way to do it, it will tell you what to avoid. Sometimes it is better to identify the main drawbacks on a discipline and then isolate them so we have the best results at a certain level of development. The search for the Holy Grail Many traders spend years and years trying to find the Holy Grail of trading. That magic indicator or set of indicators, only known by a few traders, that will make them rich in a short period of time. Fact: Well, there is no magic indicator, nor a set of indicators that will make anyone rich in a short period of time. The main reason of this is because market changes, every single moment is unique. Every Forex trading system will fail from time to time. Our work here is to find a Forex trading system that fits our personality as traders, otherwise the trader will find it hard to follow it. Looking for Easy Money Unfortunately most traders are attracted to the Forex market for this reason. Mainly because of the publicity showing or rather trying to show how easy is to trade and make money in the Forex market. Fact: Yes, it is very easy to trade, anyone can do it. It is as hard as one click. But the second part of it isn't that easy. Making money or achieving consistent profitable results is hard. It requires lots of education, patience, discipline, commitment, and this list could go to infinite. In a few words, it is possible to have consistent profitable results, but definitely it is not easy. Looking for Excitement Some other traders are attracted to the Forex market or any other financial market because they think it is exciting to be a trader. Fact: Yes, it is very exciting to trade the Forex market. But if this is the main reason you are still trading the Forex market, sooner or later you will discover the most expensive adventure you have ever known. Do some thinking on it. Not Using Money Management. Most traders forget about this important aspect of trading. They think they shouldn't be using money management until they achieve consistent profitable results. They totally forget about the risk side of trading. Fact: Money management allows your profits to increase geometrically, but also limits your risk on every single trade. Money management tells you how much to risk on each trade. Using money management is a must if you want to achieve your trading goals. By using money management you make sure you are going to be able to trade tomorrow, the next week, month and the following years. Not Being Psychology Tuned This is one of the most underestimated subjects when it comes to trading. One of the main principles of financial markets is that the price of each instrument is based on the perception of each individual participant "the crowd." In other words the price of each instrument is determined by the fear, greed, ego and hope of all traders. Fact: Being aware of all psychological issues that affect the decisions made by traders will definitely put the odds in your favor. Lack of Education Education is the base of knowledge on every discipline. As lawyers and doctors require several years of college until they get their degree, Forex traders also require long years of study. It is better to have someone experienced to guide you through your trading, since some information could take you in the wrong path. Fact: The market teaches us invaluable lessons on every single trade made. The process of education for a Forex trader could take for ever. That's right, we never stop learning. We should be humble about the markets and our knowledge; otherwise the market will prove us wrong. These are some of the most important barriers every trader faces when trying to trade successfully. Trading successfully the Forex markets is no easy task, it requires a lot of hard work to do it right, but with the right education, you will put yourself closer to your trading goals.

Forex Trading — Understanding Commissions, Spreads and Trading Costs

The forex market is quickly becoming one of the most popular markets for trading. Not only are the experienced traders looking to this market to maximize their trading returns, but many new, individual investors are now able to trade the Forex market — just as they do stocks and futures. More and more individuals are seeing Forex not only as a new way to diversify their portfolio, but are also finding that it is becoming the most profitable component of their investments. And that's because of the many advantages Forex offers over other markets like stocks or commodities. Here's what you will typically see advertized about Forex: — Unparallelled liquidity. It is the largest financial market in the world by far. Almost $2 trillion being traded daily! — Excellent leverage potential. Individual investors have access to leverage of 100:1 and even 200:1 — No Commissions (more on this later on) — Low trading costs. And yes, the Forex market really does offer all these advantages. But the last two points above talk about costs, and that's what we'd like to focus on in this article. Like any trading, there are costs involved, and, while these may be much lower than they used to be, it is important to understand what those are. Let's start by looking at stock trading, something that most of us investors are pretty familiar with. When trading stocks, most investors will have a trading account with a broker somewhere and will have investment funds deposited in that account. The broker will then execute the trades on behalf of the account holder, and of course, in return for providing that service, the broker will want to be compensated. With stocks, typically, the broker will earn a commission for executing the trade. They will charge either a fixed dollar amount per trade, or a dollar amount per share, or (most commonly) a scaled commission based on how big your trade is. And, they will charge it on both sides of the transaction. That is to say, when you buy the stock you get charged commission, AND then when you sell that same stock you get charged another commission. With Forex trading, the brokers constantly advertise "no commission". And, of course that's true — except for a few brokers, who do charge a commission similar to stocks. But also, of course, the brokers aren't performing their trading services for free. They too make money. The way they do that is by charging the investor a "spread". Simply put, the spread is the difference between the bid price and the ask price for the currency being traded. The broker will add this spread onto the price of the trade and keep it as their fee for trading. So, while it isn't a commission per se, it behaves in practically the same way. It is just a little more hidden. The good news though is that typically this spread is only charged on one side of the transaction. In other words, you don't pay the spread when you buy AND then again when you sell. It is usually only charged on the "buy" side of the trades. So the spread really is your primary cost of trading the Forex and you should pay attention to the details of what the different brokers offer. The spreads offered can vary pretty dramatically from broker to broker. And while it may not seem like much of a difference to be trading with a 5 pip spread vs a 4 pip spread, it actually can add up very quickly when you multiply it out by how many trades you make and how much money you're trading. Think about it, 4 pips vs 5 pips is a difference of 25% on your trading costs. The other thing to recognize is that spreads can vary based on what currencies you're trading and what type of account you open. Most brokers will give you different spreads for different currencies. The most popular currency pairs like the EURUSD or GBPUSD will typically have the lowest spreads, while currencies that have less demand will likely be traded with higher spreads. Be sure to think about what currencies you are most likely to be trading and find out what your spreads will be for those currencies. Also, some brokers will offer different spreads for different types of accounts. A mini account, for example may be subject to higher spreads than a full contract account. And finally, because the spreads really are the difference between bid prices and ask prices as determined by the free market, it is important to recognize that they are not "guaranteed". Most brokers will tell you that there may be times during periods of low demand, or very active trading when the spreads widen and you will be charged that wider spread. These do tend to be rarer situations because the Forex market really is so large and demand and supply are generally quite predictable, but they do occur, especially with some of the lesser traded currencies. So it's important to be aware of that. In summary then, when trading Forex, understand that the "spread" is truly your most important consideration for trading costs. Spreads can vary significantly between brokers, account types and currencies traded. And small differences in the spread can really add up to thousands of dollars in trading costs over even just a few months. So be sure to understand what currencies you are going to be trading, how frequently, and in what type of account and use those factors to help decide which broker can offer you the best trading costs.

Trading Forex To Advance Your Financial Position

Everyday, currencies are traded in an international foreign exchange market, otherwise known as the forex market, with the main marketplaces (otherwise known as bourses) existing in the world's financial centes New York, London, Tokyo, Frankfurt and Zurich. Historically, the only way to participate was from the trading floor of one of these bourses, but today, people can trade forex from anywhere through a secure internet connection and a PC. Today's traders operate in a global network, taking positions in the market and making investment decisions based on either relative value between two currencies, or a particular currency's actual price. Currency value fluctuations are constantly renegotiated through trading activity, and this activity, and the corresponding currency values are also indicators of the levels of currency supply. An example of market behaviour greater demand for the Euro might indicate a weakening supply. Low supply and increased demand will drive the price of the Euro up against other currencies like the dollar, until the price better reflects what traders are prepared to pay when short supply exists. Another way to look at this situation is this higher demand means it will cost more dollars to buy the Euro, which equates to a weakening of the dollar in comparison. Analysis of situations such as in this example forms the basis for a trader's investment decisions, and they will purchase or sell currency accordingly. This should be remembered, as while many see the foreign exchange market as the vehicle for converting their home currency while travelling abroad, many others choose to use the market to advance their financial position and secure their future.

Forex Glossary

Here are some of the most common terms used in FOREX trading. Ask Price — Sometimes called the Offer Price, this is the market price for traders to buy currencies. Ask Prices are shown on the right side of a quote — e.g. EUR/USD 1.1965 / 68 — means that one euro can be bought for 1.1968 UD dollars. Bar Chart — A type of chart used in Technical Analysis. Each time division on the chart is displayed as a vertical bar which show the following information — the top of the bar is the high price, the bottom of the bar is the low price, the horizontal line on the left of the bar shows the opening price and the horizontal line on the right of bar shows the closing price. Base Currency — is the first currency in a currency pair. A quote shows how much the base currency is worth in the quote (second) currency. For example, in the quote — USD/JPY 112.13 — US dollars are the base currency, with 1 US dollar being worth 112.13 Japanese yen. Bid Price — is the price a trader can sell currencies. The Bid Price is shown on the left side of a quote — e.g. EUR/USD 1.1965 / 68 — means that one euro can be sold for 1.1965 UD dollars. Bid/Ask Spread — is the difference between the bid price and the ask price in any currency quotation. The spread represents the broker's fee, and varies from broker to broker. Broker — the intermediary between buyer and seller. Most FOREX brokers are associated with large financial institutions and earn money by setting a spread between bid and ask prices. Candlestick Chart — A type of chart used in Technical Analysis. Each time division on the chart is displayed as a candlestick — a red or green vertical bar with extensions above and below the candlestick body. The top of the extension shows the highest price for the chart division and the bottom of the extension shows the lowest price. Red candlesticks indicate a lower closing price than opening price, and green candlesticks indicate the price is rising. Cross Currency — A currency pair that does not include US dollars — e.g. EUR/GBP. Currency Pair — Two currencies involved in a FOREX transaction — e.g. EUR/USD. Economic Indicator — A statistical report issued by governments or academic institutions indicating economic conditions within a country. First In First Out (FIFO) — refers to the order open orders are liquidated. The first orders to be liquidated are the first that were opened. Foreign Exchange (FOREX, FX) — Simultaneously buying one currency and selling another. Fundamental Analysis — Analysis of political and economic conditions that can affect currency prices. Leverage or Margin — The ratio of the value of a transaction to the required deposit. A common margin for FOREX trading is 100:1 — you can trade currency worth 100 times the amount of your deposit. Limit Order — An order to buy or sell when the price reaches a specified level. Lot — The size of a FOREX transaction. Standard lots are worth about 100,000 US dollars. Major Currency — The euro, German mark, Swiss franc, British pound, and the Japanese yen are the major currencies. Minor Currency — The Canadian dollar, the Australian dollar, and the New Zealand dollar are the minor currencies. One Cancels the Other (OCO) — Two orders placed simultaneously with instructions to cancel the second order on execution of the first. Open Position — An active trade that has not been closed. Pips or Points — The smallest unit a currency can be traded in. Quote Currency — The second currency in a currency pair. In the currency pair USD/EUR the euro is the quote currency. Rollover — Extending the settlement time of spot deals to the current delivery date. The cost of rollover is calculated using swap points based on interest rate differentials. Technical Analysis — Analysis of historical market data to predict future movements in the market. Tick — The minimum change in price. Transaction Cost — The cost of a FOREX transaction — typically the spread between bid and ask prices. Volatility — A statistical measure indicating the tendency of sharp price movements within a period of time.

The 6 Advantages Forex Trading Has Over Other Investments

There are many different advantages to trading forex instead of futures or stocks, such as: 1. Lower Margin Just like futures and stock speculation, a forex trader has the ability to control a large amount of the currency basically by putting up a small amount of margin. However, the margin requirements that are needed for trading futures are usually around 5% of the full value of the holding, or 50% of the total value of the stocks, the margin requirements for forex is about 1%. For example, margin required to trade foreign exchange is $1000 for every $100,000. What this means is that trading forex, a currency trader's money can play with 5-times as much value of product as a futures trader's, or 50 times more than a stock trader's. When you are trading on margin, this can be a very profitable way to create an investment strategy, but it's important that you take the time to understand the risks that are involved as well. You should make sure that you fully understand how your margin account is going to work. You will want to be sure that you read the margin agreement between you and your clearing firm. You will also want to talk to your account representative if you have any questions. The positions that you have in your account could be partially or completely liquidated on the chance that the available margin in your account falls below a predetermined amount. You may not actually get a margin call before your positions are liquidated. Because of this, you should monitor your margin balance on a regular basis and utilize stop-loss orders on every open position to limit downside risk. 2. No Commission and No Exchange Fees When you trade in futures, you have to pay exchange and brokerage fees. Trading forex has the advantage of being commission free. This is far better for you. Currency trading is a worldwide inter-bank market that lets buyers to be matched with sellers in an instant. Even though you do not have to pay a commission charge to a broker to match the buyer up with the seller, the spread is usually larger than it is when you are trading futures. For example, if you were trading a Japanese Yen/US Dollar pair, forex trade would have about a 3 point spread (worth $30). Trading a JY futures trade would most likely have a spread of 1 point (worth $10) but you would also be charged the broker's commission on top of that. This price could be as low as $10 in-and-out for self-directed online trading, or as high as $50 for full-service trading. It is however, all inclusive pricing though. You are going to have to compare both online forex and your specific futures commission charge to see which commission is the greater one. 3. Limited Risk and Guaranteed Stops When you are trading futures, your risk can be unlimited. For example, if you thought that the prices for Live Cattle were going to continue their upward trend in December 2003, just before the discovery of Mad Cow Disease found in US cattle. The price for it after that fell dramatically, which moved the limit down several days in a row. You would not have been able to leave your position and this could have wiped out the entire equity in your account as a result. As the price just kept on falling, you would have been obligated to find even more money to make up the deficit in your account. 4. Rollover of Positions When futures contracts expire, you have to plan ahead if you are going to rollover your trades. Forex positions expire every two days and you need to rollover each trade just so that you can stay in your position. 5. 24-Hour Marketplace With futures, you are generally limited to trading only during the few hours that each market is open in any one day. If a major news story breaks out when the markets are closed, you will not have a way of getting out of it until the market reopens, which could be many hours away. Forex, on the other hand, is a 24/5 market. The day begins in New York, and follows the sun around the globe through Europe, Asia, Australia and back to the US again. You can trade any time you like Monday-Friday. 6. Free market place Foreign exchange is perhaps the largest market in the world with an average daily volume of US$1.4 trillion. That is 46 times as large as all the futures markets put together! With the huge number of people trading forex around the globe, it is very hard for even governments to control the price of their own currency.