Leverage trading, or trading on margin, means you aren't required to put up the full value of the position. Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.
Reading a foreign exchange quote is simple if you remember two things:
1. The first currency listed is the base currency
2. The value of the base currency is always 1.
The basic premise of fundamental analysis is that the value of a currency is determined by the comparative strength and weakness of a country's economy in relation to those of its trading partners. The stronger a country's economy - measured in higher GDP growth, lower inflation, higher interest rates, greater productivity, more political stability, etc. - the stronger a country's currency. Over time, these fundamental factors produce the long lasting price trends typical of the currency markets...
A Forex market transaction differs from a retail transaction. In a retail environment, the price is predetermined by the seller, and the purchaser measures his need for the item against the price asked and makes his decision to buy or not. In a market transaction, both the seller and the buyer continually adjust their price expectations to the information flowing out from the market to its participants and into the market from outside sources. A seller who thinks that the price may be higher in ...
The seasonally adjusted annual rate1 of housing starts reached 157,300 units in October. This is an increase from 149,300 units started in September, according to Canada Mortgage and Housing Corporation (CMHC).
The dollar weakened broadly on Monday, pushing the euro above $1.50, after a weekend G20 meeting and U.S. jobs data last week did little to alter the view that U.S. interest rates will stay low for some time.
The U.S. dollar may come under renewed pressure from emerging market currencies and the euro after a meeting of the world's top finance officials failed to take concrete action on rebalancing global money flows
The Australian Dollar opens higher on Monday at US92 cents after the Reserve Bank of Australia (RBA) upgraded economic growth forecasts on Friday and U.S. unemployment came in worse than expected. The Aussie traded in a one cent band over the previous session (0.9090 - 0.9197) and was underpinned after the RBA said in its quarterly statement on monetary policy that GDP is set to expand by 1.75 per cent by the end of 2009 and to 3.25 per cent by the end of 2010. Markets viewed this as a sign that...
China on Saturday shrugged off international pressure to appreciate its currency, saying developed countries should focus on the quality of their own economic policy-making. Chinese Finance Minister Xie Xuren, speaking after finance ministers and central bank governors of the Group of 20 nations met in Scotland, said countries with global reserve currencies should work to maintain the currencies' value to avoid destabilising the world economy.
Group of 20 finance ministers and central bankers pledged on Saturday to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.
European shares turned negative in afternoon trade on Friday after data showed U.S. employers cut 190,000 jobs in October, more than expected and driving the unemployment rate to 10.2 percent, the highest in 26-1/2 years.
U.S. stock index futures pointed to a nearly 1 percent drop at the open on Friday as U.S. unemployment reached a more than 26-year high and topped the psychologically important 10 percent level.
Global stocks and commodities gained on Friday, buoyed by firm U.S. data the previous session, lifting risk appetite ahead of hotly anticipated jobs data which will give more evidence on the state of the global economy.
News, details on corporate bond issues in the European markets on Friday:
Banks led European stocks higher on Friday, following quarterly results from Royal Bank of Scotland (RBS.L), while investors also awaited key U.S. employment figures later in the day.
Britain's leading share index was up 0.2 percent approaching midday on Friday with a rally by banks offsetting weakness in oil majors in thin trade as investors await the key U.S. October jobs report.
U.S. stock index futures rose slightly on Friday as investors awaited monthly payrolls data and the unemployment rate, key indicators to determine the strength of the economic recovery.
U.S. stock index futures were slightly higher on Friday as investors awaited monthly payrolls data and the unemployment rate, key indicators to determine the strength of the economic recovery.
The Australian Dollar opens at US91 cents after yesterday's release of September trade data hinted that official interest rates may need to be increased for third consecutive month in December. The trade deficit was smaller than expected at A$1.849 billion, however imports were up 5 per cent suggesting that domestic demand remains robust. During overnight trade the Aussie moved between a low of 0.9030 and a high of 0.9122 after central banks in Europe and the United Kingdom left their benchmark ...
Wall Street was set for a higher open on Thursday as data showed a steep pickup in productivity and a decline in applications for jobless insurance.
The euro extended gains against the dollar to hit a session high on Thursday after European Central Bank president Jean-Claude Trichet said the euro zone economy will recover at a gradual pace.
Stock index futures rose on Thursday on upbeat results from Cisco Systems and ahead of an expected pickup in October same-store sales as well as jobless claims data.
The euro held steady on Thursday as the European Central Bank kept interest rates on hold, while the pound rose versus the greenback as the UK central bank raised its asset buying but less than some expected.
Sterling jumped, UK gilts tumbled and British stocks briefly slipped on Thursday after the Bank of England expanded its quantitative easing programme by 25 billion pounds, allaying some concerns about a bigger increase.
Britain's top shares fell 0.5 percent around midday on Thursday, as investors digested the Bank of England decision to keep interest rates on hold and said it will pump more money into the economy to spur growth.
The Bank of England expanded its quantitative easing programme by 25 billion pounds to 200 billion pounds on Thursday, continuing its unprecedented scheme to revive Britain's recession-hit economy.
Risk aversion ahead of key central bank policy decisions put pressure on Britain's leading shares around midsession on Thursday, with weakness in banks and miners offsetting modest gains in defensive telecoms and tobacco firms.
U.S. stock index futures were little changed on Thursday ahead of jobs and productivity data and same-store sales numbers from major U.S. retailers.
The dollar and the yen edged up on Thursday as short-term investors and Japanese exporters sold into a rally in the euro and higher-yielding currencies which followed a repeated pledge by the U.S. Fed to keep rates low for a while.
The dollar and the yen gained broadly on Thursday as the euro and perceived higher risk currencies succumbed to profit-taking ahead of policy decisions by the Bank of England and the European Central Bank.
