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Search results “Forex trading by banks” for the 2008
83. How Banks, Hedge Funds, and Corporations Move Currencies
 
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Practice trading with a free demo trading account: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/21041-forex-market-participants.html Behind central banks in terms of size and ability to move the foreign exchange market are the banks which we learned about in our previous lessons which make up the Interbank market. It is important to understand here that in addition to executing trades on behalf of their clients, the bank's traders often times try to earn additional profits by taking speculative positions in the market as well. While most of the other players we are going to discuss in this lesson do not have the size and clout to move the market in their favor, many of these bank traders are an exception to this rule and can leverage their huge buying power and inside knowledge of client order flow to move the market in their favor. This is why you hear about quick market jumps in the foreign exchange market being attributed to the clearing out the stops in the market or protecting an option level, things which we will learn more about in later lessons. The next level of participants is the large hedge funds who trade in the foreign exchange market for speculative purposes to try and generate alpha, or a return for their investors that is over and above the average market return. Most forex hedge funds are trend following, meaning they tend to build into longer term positions over time to try and profit from a longer term uptrend or downtrend in the market. These funds are one of the reasons that currencies often times develop nice longer term trends, something that can be of benefit to the individual position trader. Although not the typical way that Hedge funds profit from the market, probably the most famous example of a hedge fund trading foreign exchange is the example of George Soros' Quantum fund who made a very large amount of money betting against the Bank of England. In short, the Bank of England had tried to fix the exchange rate of the British Pound at a particular level buy buying British Pounds, even though market forces were trying to push the value of the Pound Down. Soros felt that this was a losing battle and essentially bet the entire value of his $1 Billion hedge fund that the value of the pound would decrease. The market forces which were already at play, combined with Soro's huge position against the Bank of England, caused so much selling pressure on the pound that the Bank of England had to give up trying to prop up the currency and it preceded to fall over 5% in one day. This is a gigantic move for a major currency, and a move which netted Soros' Quantum Fund over $1 Billion in profits in one day. Next in line are multinational corporations who are forced to be participants in the forex market because of their overseas earnings which are often converted back into US Dollars or other currencies depending on where the company is headquartered. As the value of the currency in which the overseas revenue was earned can rise or fall before that conversion, the company is exposed to potential losses and/or gains in revenue which have nothing to do with their business. To remove this exchange rate uncertainty many multinational corporations will hedge this risk by taking positions in the forex market which negate any exchange rate fluctuation on their overseas revenues. Secondly these corporations also buy other corporations overseas, something which is known as cross boarder mergers and acquisitions. As the transaction for the company being bought or sold is done in that company's home country and currency, this can drive the value of a currency up as demand is created for the currency to buy the company or down as supply is created when the company is sold. Lastly are individuals such as you and I who participate in the forex market in three main areas. 1. As Investors Seeking Yield: Although not very popular in the United States, overseas and particularly in Japan where interest rates have been close to zero for many years, individuals will buy the currencies or other assets of a country with a higher interest rate in order to earn a higher rate of return on their money. This is also referred to as a carry trade, something that we will learn more about in later lessons. 2. As Travelers: Obviously when traveling to a country which has a different currency individual travelers must exchange their home currency for the currency of the country where they are traveling. 3. Individual speculators who actively trade currencies trying to profit from the fluctuation of one currency against another. This is as we discussed in our last lesson a relatively new phenomenon but most likely the reason why you are watching this video and therefore a growing one.
Views: 35551 InformedTrades
82. How Central Banks Move the Forex Market
 
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Practice trading with a free demo account: http://bit.ly/IT-forex-demo3 A lesson on how the central banks of the world participate in the foreign exchange market and move the forex market up and down for their economic benefit.
Views: 45250 InformedTrades
How do central banks affect the forex? - Part one
 
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How the Fed and other central banks affect currency values is an unknown to many forex traders. This is an important topic and is not as mysterious as many traders think. 100% free forex education available from http://www.pfxglobal.com.
Views: 5672 profitingwithforex
Forex Bank Flow Trading
 
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Bank Flow trading strategy results, in the new live trading room. Dustin Pass discusses the "reality" of this type of trading and traders share their results.
Views: 4331 Market Traders Daily
85. Forex Trading - Characteristics of the Main Currencies
 
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Practice currency trading with a free demo account: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/21156-forex-trading-overview-worlds-main-currencies.html Over 80% of all currency transactions involve the US Dollar. As you can probably imagine after hearing this, currency traders pay heavy attention to what is happening with the US Economy, as this has a very direct affect not only on the US Dollar but on every other currency in the world as well. Japan, which is the second largest individual economy in the world, has the third most actively traded currency, the Japanese Yen. After experiencing impressive growth in the 60's, 70's and early 80's Japan's economy began to stagnate in the late 1980's and has yet to fully recover. To try and stimulate economic growth, the central bank of Japan has kept interest rates close to zero making the Japanese Yen the funding currency for many carry trades, something which we will learn more about in later lessons. It is also important to understand at this stage that Japan is a country with few natural energy resources and an export oriented economy, so it relies heavily on energy imports and international trade. This makes the economy and currency especially susceptible to moves in the price of oil, and rising or slowing growth in the major economies in which it trades with. While the United Kingdom is a member of the European Union it was one of the three countries that opted out of joining the European Monetary Union which is made up of the 12 countries that did adopt the Euro. The UK's currency is known as the Pound Sterling and is a well respected currency of the world because of the Central Bank's reputation for sound monetary policy. Next in line is Switzerland's currency the Swiss franc. While Switzerland is not one of the major economies of the world, the country is known for its sound banking system and Swiss bank accounts, which are basically famous for banking confidentiality. This, combined with the country's history of remaining neutral in times of war, makes the Swiss Franc a safe haven currency, or one which attracts capital flows during times of uncertainty. When traded against the US Dollar, the Euro, Yen, Pound, and Swiss Franc make up known as the "major currency pairs" which we will learn more about in coming lessons. For the purposes of this course we will focus on currencies that trade actively 24 hours a day allowing the trader to move in and out of positions during the trading week at anytime as he or she pleases. Although not considered part of the major currencies there are three other currencies in addition to the ones just listed which trade actively 24 hours a day and which we will be covering in this course. Known as the commodity currencies because of the fact that they are natural resource rich countries, the Australian Dollar, New Zealand Dollar and the Canadian Dollar are the three final currency pairs we will be covering. Also known as "The Aussie" the Australian Dollar is heavily dependant upon the price of gold as the Australian economy is the world's 3rd largest producer of gold. As of this lesson interest rates in Australia are also among the highest in the Industrialized world creating significant demand for Australian Dollars from speculators looking to profit from the high yield the currency and other Australian Dollar denominated assets offer. Like the Australian Dollar the New Zealand Dollar which is also known as "The Kiwi" is heavily dependant on commodity prices, with commodities representing over 40% of the countries total exports. The economy is also heavily dependant on Australia who is its largest trading partner. Like Australia, as of this lesson New Zealand also has one of the highest interest rates in the industrialized world, creating significant demand from speculators in this case as well. Last but not least is the Canadian Dollar or otherwise affectionately known as "The Loony". Like its commodity currency brothers, the Canadian Economy, and therefore the currency, is also heavily linked to what happens with commodity prices. Canada is the 5th largest producer of gold and while only the 14th largest producer of oil, unbeknownst to most; it is also the largest foreign supplier of oil to the United States.
Views: 26486 InformedTrades
84. A Breakdown of the Forex Trading Day
 
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Practice trading with a free demo trading account: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/21071-breakdown-forex-trading-day.html Unlike the futures and equities markets, the forex market trades actively 24 hours a day with active trading hours following the sun around the globe to each of the major money centers. As the foreign exchange market is an over the counter market where two counterparties can trade with each other whenever they want, technically the market never closes. Most electronic trading platforms however open for trading at around 5 PM Eastern Time on Sunday, which corresponds to the start of Monday's business hours in Australia and New Zealand. While there are certainly banks in these countries which actively make markets in foreign exchange, there is very little trading done in these countries when compared to other major money centers of the world. The first major money center to open and there fore the start of the first major session in the forex market is the Asian Trading session which corresponds with the start of business hours in Tokyo at 7pm Eastern Time on Sunday. While still considered 1 of the three major money centers, only 7.6% of forex transactions flow through Tokyo trading desks, so the Asian trading session is the least active of the three. While there is active trading in Yen based currency pairs during Asian hours the market for currencies outside of Yen based pairs is relatively thin, making Asian trading hours a time when the larger banks and hedge funds in the market will sometimes try and push the market in their favor. Next in line is the European trading session which begins with the start of London business hours at 2 AM Eastern Standard Time. While New York is considered by most to be the largest financial center in the world, London is still king of the forex market with over 32% of all forex transactions taking place in the city. Before the Euro there were more than a dozen additional currencies in Europe making foreign exchange part of every day life for both individuals and businesses operating in the region. In addition to this, London is situated perfectly from a time zone standpoint with business hours for both the large eastern and western economies taking place during London trading hours. As London is the most active session in the forex market it is also the session with the most volatility for all the currency pairs which we will be studying in this course. Last but not least is the US session which begins with the start of New York business hours at 8 AM Eastern Standard Time. New York is a distant second to London in terms of forex trading volumes with approximately 19% of all forex transactions flowing through New York Dealing Rooms. The most active part of the US Trading session, and the most active time for the forex market in general, is from about 8am to 12pm when both London and New York trading desks are open for business. You can see very large volatility during this time as in addition to both New York and London trading desks being open, most of the major US economic announcements are released during these hours as well. The trading day winds down after 12pm New York time with most electronic platforms closing for business at around 4 PM Eastern Standard Time on Friday.
Views: 32458 InformedTrades
80. Who Really Controls the Forex Market?
 
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View the entire lesson: http://www.informedtrades.com/20991-who-really-controls-forex-market.html Register for a free forex demo trading account: http://bit.ly/IT-forex-demo3 As we discussed in our last lesson the forex market is an over the counter market meaning that there is no centralized exchange where all trades are made. Because of this, the price that someone receives when trading forex has traditionally differed depending on the size of the transaction and the sophistication of the person or entity that is making that transaction. At the center or first level of the market is something known as the Interbank market. While technically any bank is part of the Interbank market, when an FX Trader speaks of the interbank market he or she is really talking about the 10 or so largest banks that make markets in FX. These institutions make up over 75% of the over $3 Trillion dollars in FX Traded on any given day. There are two primary factors which separate institutions with direct interbank access from everyone else which are: 1. Access to the tightest prices. We will learn more about transaction costs in later lessons however for now simply understand that for every 1 Million in currency traded those who have direct access to the Interbank market save approximately $100 per trade or more over the next level of participants. 2. Access to the best liquidity. As with any other market there is a certain amount of liquidity or amount that can be traded at any one price. If more than what is available at the current price is traded, then the price adjusts until additional liquidity enters the market. As the forex market is over the counter, liquidity is spread out among different providers, with the banks comprising the interbank market having access to the greatest amount of liquidity and then declining levels of liquidity available at different levels moving away from the Interbank market. In contrast to individuals who make a deposit into their account to trade, institutions trading in the interbank market trade via credit lines. In order to get a credit line from a top bank to trade foreign exchange you must be a very large and very financially stable institution, as bankruptcy would mean the firm that gave you the credit line gets stuck with your trades. The next level of participants are the hedge funds, brokerage firms, and smaller banks who are not quite large enough to have direct access to the Interbank market. As we just discussed the difference here is that the transaction costs for the trade are a bit higher and the liquidity available is a bit lower than at the Interbank level. The next level of participants has traditionally been corporations and smaller financial institutions who do make foreign exchange trades, but not enough to warrant the better pricing As you can see here, traditionally as the market participant got smaller and less sophisticated the transaction costs they paid to trade became larger and the liquidity that was available to them got smaller and smaller. In a lot of cases this is still true today, as anyone who has ever exchanged currencies at the airport when traveling knows. To give you an idea of just how large a difference there is between participants in the Interbank market and an individual trading currencies for travel, Interbank market participants pay approximately $.0001 to exchange Euros for Dollars where Individuals in the airport can pay $.05 or more. This may not seem like much of a difference but think about it this way: On $10,000 that is $1 that the Interbank participant pays and $500 that the individual pays. The landscape for the individual trader has changed drastically since the internet has gone mainstream however, in many ways leveling the playing field and putting the individual trader along side large financial institutions in terms of access to pricing and liquidity. This will be the topic of our next lesson.
Views: 58407 InformedTrades
How do central banks affect the forex? - Part two
 
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One of the additional tools a central bank has access to are its foreign currency reserves. Most central banks use these reserves to back their currency and other liabilities and some will use those reserve accounts to interfere in the FX market. 100% free forex education available from http://www.pfxglobal.com.
Views: 2637 profitingwithforex
108. How Interest Rates Move the Forex Market Part 1
 
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http://www.informedtrades.com/25425-how-interest-rates-move-forex-market-part-1-a.html Like current and future earnings prospects are the most important factors to consider when trying to forecast the long term direction of a stock, current and future interest rate prospects are the most important factors to consider when trying to forecast the long term direction of a currency. Because of this fact, currencies are highly sensitive to any economic news that can affect the country's interest rates, an important factor for traders of all time frames to understand. As we learned in module 8 of our free basics of trading course located in the free course section of InformedTrades.com, when the central bank of a country raises interest rates this not only affects the short term rate that they target, but the interest rates for all types of debt instruments. If the central bank of a country raises interest rates then debt instruments of all types are going to become more attractive to investors, all else being equal. This not only means that foreign investors are more likely to invest in the debt of that country, but also that domestic investors are less likely to look outside the country for higher yield, creating more demand for the debt of that country and driving the value of the currency up, all else being equal. Conversely, when a central bank lowers interest rates, then interest rates on all types of debt instruments for that country are going to be less attractive to investors, all else being equal. This not only means that both foreign and domestic investors are less likely to invest in the debt of that country, but that they are also more likely to pull money out to seek higher returns in other countries, creating less demand for, and a greater market supply of that currency, and driving its value down, all else being equal. Once this is understood, it is next important to understand that foreign investors are exposed to not only the potential profit or loss from interest rate changes on the debt instrument they are investing in, but also to profits and losses which result from fluctuations in the value of that country's currency. This is an important concept to understand, as it generally will work to increase the profits for investors when interest rates increase, as the increase in the value of the currency is realized when they sell the investment and convert back into their home country's currency. This gives the foreign investor that much extra return on their investment, and that much extra incentive to invest when interest rates rise, driving the value of the currency up further all else being equal. Conversely when interest rates decrease, there will be less demand for the debt instruments of a country not only because of the lower yield to investors, but also because of the decrease in the value of the currency that normally comes with a decrease in interest rates. The additional whammy of a loss to the foreign investor from the currency conversion that results as part of the investment, further incitivizes them to put their money elsewhere, decreasing the value of the currency further, all else being equal.
Views: 31641 InformedTrades
90. How to Place Your First Forex Trade
 
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Free Forex Course on InformedTrades: http://www.informedtrades.com/f112/ The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/IT-forex-demo3 A lesson on how to place your first forex trade for traders who are new to the forex market.
Views: 73554 InformedTrades
107. Fundamentals that Move Currencies - Balance of Payments
 
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View Full Lesson: http://www.informedtrades.com/25278-balance-payments-forex-traders.html Practice trading on a demo trading account: http://bit.ly/IT-forex-demo3 As we discussed briefly in our last lesson it is the interaction of flows of money relating to international trade and investment that ultimately determines the value of a currency over the long term. When demand strengthens for the exports of a particular country and/or investments by foreigners into that country increase, then, all else being equal a currency should strengthen. Conversely, when demand weakens for the exports of a particular country and/or investment by foreigners in that country falls, then, all else being equal a currency should weaken. It is the interaction of the current account and the capital account that measures this, and when combined these make up a country's balance of payments. The balance of payments is very simply the total transactions by a country with all other countries in the world, or in other words the combination of both trade flows and capital flows into one report. By following a country's balance of payments and its related indicators, an FX trader can gain great insight into the potential future direction of a country's currency. To help understand this better lets look at the example of the US Dollar. As we've discussed in previous lessons, the United States has run a very large current account deficit for quite some time, meaning that the country has imported many more goods and services than it has exported. As this chart of the US Dollar Index shows however, for a number of years the US Dollar continued to strengthen, despite this large current account deficit. [CENTER][IMG]http://www.informedtrades.com/images/created/balanceofpayments.jpg[/IMG][/CENTER] As you can see here going up into 2000 although the US ran a persistent current account deficit, the currency overall continued to strengthen before starting to sell off from late 2000 forward. Now I am making some pretty significant generalizations here for simplicities sake, but there are two major reasons that fundamental traders will point to as reasons for this: 1. Although this is starting to change somewhat, there has for many years been a strong demand for US Dollars because the US Dollar is the currency of choice for many major central banks to hold as their reserve currency, with Japan and China being the countries you will hear most about in this regard. This creates a demand for dollars on the capital flows side of the equation that helped to offset the persistent current account deficit going into 2000. 2. As most of you will remember the NASDAQ top which happened in March of 2000 was preceded by a major bull market in the United States, one in which foreign investors were active participants. As we learned about in our lesson on capital flows this also created a large demand for dollars, further helping to offset the large current account deficit. After the sell off of the NASDAQ however, foreign investors fled the US Stock market along with a lot of other traders and investors. As there was no longer as much foreign capital flowing in to offset the large current account deficit, the US Dollar began to weaken. As the dollar began to weaken this created a chain reaction with the central banks who began to diversify into the EURO and other currencies, further exacerbating the dollar's sell off. This created a situation where the current account deficit in the United States remained large (creating a market surplus of US Dollars from an international trade standpoint) and the inflows of capital into the US stock and bond markets began to fall, lowering the demand for dollars which was offsetting the current account deficit. While it is not important to understand all the intricate details at this point, what you do need to understand is that in order to have a feel for the long term fundamentals of a currency, it is important to have a general understanding of what is happening from both a trade flows and a capital flows standpoint, and how these two things interact with one another. As we will learn in coming lessons all fundamentals with currencies can be related back to these two basic concepts, so for your homework assignment for this lesson I encourage you to consider the following question: As the value of the US Dollar falls what effect if any should this have on the large current account deficit in the United States and why? If you would like to post your answer in the comments section of this lesson on InformedTrades.com for discussion this is something that I always encourage.
Views: 23278 InformedTrades
105. The Current Account: How Forex Traders Can Use it to Identify Opportunities
 
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http://www.informedtrades.com/24555-current-account-measuring-trade-flows-move-currencies.html While the concept that we are going to be covering here is fairly involved, I am covering this not because I feel we need to know all the details, but because having a general understanding of how the flows of money in and out of a country are measured, is important to help understand how the value of currency is affected by those flows. Now that we have an understanding of both trade and capital flows we are going to learn how each is measured starting with the current account. The basic formula for calculating the current account for a country, is exports - imports of goods and services (also referred to as the balance of trade) + Net Factor Income from Abroad (basically interest and dividends) + net transfer payments (like aid given to foreign countries). In general for the countries whose currencies we are focused on, the balance of trade portion of the formula is the main component we are concerned with and very little if anything will ever be heard about the other two components. When thinking about a countries imports and exports (balance of trade), you will often hear a country described as having either a current account surplus or a current account deficit. A current account surplus basically means that a country is exporting more than they are importing which, as we learned in our lesson on trade flows, should strengthen the value of the currency all else being equal. A current account deficit basically means that a country is importing more than it is exporting which should weaken the value of its currency all else being equal. If you remember from our lesson on trade flows I gave the example there of a US company needing to import 1 Million Dollars worth of steel from a Canadian steel producer. Just to give a simple example lets say for a second that this was the only transaction that both the United States and Canada did with foreign countries. If this were the case then the United states would have a current account deficit of 1 Million Dollars and Canada would have a current account surplus of 1 Million dollars. Now obviously there are millions of transactions just like this one which go on between countries all over the world. The current account measures these transactions so we as traders can have an idea of whether the value of a countries currency should be increasing or decreasing based on the trade flows of that country, all else being equal. As of this lesson China has the largest current account surplus at $363 Billion and the United States had the largest current account deficit at $747 Billion. It is because of this that many argue China's currency is too weak and the US Dollar is too strong, two imbalances which have started to right themselves over the last year. Here is a graph of the current accounts of some of the major countries whose currencies we are focused on, so you can have an idea of whether those countries are more import or export oriented. As we will learn this is something which is going to be important when analyzing economic data relating to those currencies. Japan: A Surplus of $201 Billion Germany: A Surplus of $185 Billion Switzerland: A Surplus of $67 Billion Canada: A Surplus of $28 Billion New Zealand: A deficit of $10 Billion France: A deficit of $35 Billion Australia: A Deficit of $50 Billion Italy: A Deficit of $58 Billion United Kingdom: A Deficit of $111 Billion
Views: 15372 InformedTrades
110. How To Trade the Carry Trade Strategy Part 1
 
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Practice trading the carry trade strategy: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/25717-how-trade-carry-trade-strategy-part-1-a.html As we learned about in our lessons on how rollover works in module two of this course, when holding a position past 5pm NY time traders earn interest when they are long the currency with the higher interest rate. Conversely, when traders are long the currency with the lower interest rate they pay interest when holding a position past 5pm NY time. Like the US investor in the example from our last lesson who took his US Dollars and invested them in New Zealand Bonds to earn a higher return, currency traders can also take advantage of countries which offer higher interest rates. Luckily for us however taking advantage of interest rate differences between countries is generally much easier for currency traders who can do so with a simple click of the mouse. To help demonstrate this lets look at the interest rates as set by the central banks for the main currencies which we are interested in. As you can see here and as we went over in our last lesson, rates as set by the Federal Reserve in the United States are currently at 2%, and rates as set by the Bank of New Zealand are currently at 8.25%. Now lets bring up a screen shot of the simple dealing rates window of the FXCM platform and locate the New Zealand Dollar/US Dollar Currency pair. If we buy this currency pair, then we are long the New Zealand Dollar which is the higher yielding currency, and short the US Dollar which is the lower yielding currency. With this in mind we earn $10 per contract held past 5pm NY time as shown in the Roll B column of the simple dealing rates window. Conversely, if we sell this currency pair then we are short the higher yielding New Zealand Dollar and Long the lower yielding US Dollar, so we pay $15 dollars per contract held past 5pm NY Time, as shown in the roll s column of the window. As you can see here, we can take advantage of the higher interest rates in New Zealand by buying New Zealand Dollars and Selling US Dollars with the click of the mouse, and without having to go through the trouble of figuring out how to buy New Zealand bonds as we would have had to in our last lesson. Because of the simplicity of this strategy and the fact that in addition to the interest that one earns by being long the currency with the higher interest rate there is the opportunity for capital appreciation should the higher yielding currency move in one's favor, this is a hugely popular strategy. This is important to us as traders not only because it is a strategy that we may want to consider trading at some point, but also because a huge amount of capital flows in and out of currencies based on this strategy, making it a major market mover in both the long and short term time frames. Lastly, it is important to us as traders to understand that when a trader is long the carry, meaning that he or she is long the currency pair with the higher interest rate, then that trader is normally trading with the wind at their back as they are getting paid every day they hold their position, regardless of what happens to the exchange rate. Conversely when a trader is short the carry, meaning that they are long the currency pair with the lower interest rate, then they are generally trading with the wind in their face as they are paying money every day, regardless of what happens with the exchange rate.
Views: 29923 InformedTrades
Trading the Forex with Bonds - Part 1
 
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Most investors have no idea how bond or note yields affect the forex or any other capital market. This is unfortunate because they play a major role in what happens to capital flows and can be used to time and manage forex trades. 100% free forex education available from http://www.pfxglobal.com.
Views: 11538 profitingwithforex
58. What Traders Need to Know About The Structure of The Fed
 
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Setup a free practice trading account: http://bit.ly/IT-forex-demo3 Continue learning: http://www.informedtrades.com A lesson on the structure of the Federal reserve for traders and investors in the stock, futures, and forex markets. In our last lesson we finalized our discussion on the importance of interest rates and introduced the Federal Reserve. In today's lesson we're going to continue our discussion on the Federal Reserve by looking at the parts of the Fed which are relevant to us as traders so we can begin to understand how this one institution is able to create drastic moves in the markets. The Federal Reserve has many responsibilities which include regulating banking activity, playing a major role in operating the nation's payments system, and maintaining the stability of the financial system. The role that is most important to us as traders and therefore the role in which we will concentrate on in our lessons, is its role in conducting the nation's monetary policy. ***As a side note here the Federal Reserve is also the Central Bank of the United States. I say this here because most countries have something which operates in much the same way as the Fed which is many times referred to in other countries as the Central Bank. While these institutions may be structured differently from the Fed, from a broad perspective many of the things you learn in our lessons on monetary policy will apply to any central bank. While the Fed's objectives are set by law, its day to day activities are not subject to government approval. This is an important point to understand as it means that unlike Fiscal Policy, which must be approved by both Congress and the President, monetary policy can be enacted as the Fed pleases. This gives the Fed much more control over the economy at least in the short term, and is the reason why some people consider the chairman of the Federal Reserve to be more powerful than even the President. There are many interesting details about The Fed and its structure that I encourage everyone to explore, however the primary components which move markets, and are therefore the ones that we will focus on, are: 1. The Board of Governors: Located in Washington DC the Board of Governors is at the top of The Fed's food chain. It is made up of 7 members who are appointed by the president and confirmed by the Senate. To help keep The Fed from being influenced by political factors, 5 of the Fed Governors are appointed to staggered 14 Year terms. The Chairman and the Vice Chairman are appointed to 4 year terms and can be reappointed should the President wish to have them. 2. The Regional Federal Reserve Banks: This is a network which includes the 12 regional Federal Reserve Banks, and 25 Branches. As most of you already know, different areas of the United States are comprised of different industries. As an example the New York area economy is influenced heavily by what is going on in financial services, while the San Francisco area economy is influenced heavily by what is happening in the technology sector. As this is the case, each of the regional banks are strategically located throughout the country so that the can stay abreast of current economic conditions in each area.
Views: 23620 InformedTrades
Forex Trading #32 : Beware The Carry Trade "Liquidation"
 
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http://www.ForexCoachingPros.com http://www.ForexHomeStudy.com Stephen Story (Forex Trader, Coach, Author) warns of the dangers of the dreaded "Carry Trade Liquidation" and possible advantages of certain ironic situations in the market, especially for those practicing Forex carry trades.
Views: 3331 ForexCoachingPros
137. An Introduction to Forex Capital Markets (FXCM)
 
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http://www.informedtrades.com -- An introduction to Forex Capital Markets, a currency trading broker.
Views: 9959 InformedTrades
Forex Trading Made Easy
 
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http://tips-and-articles.com Facts About This Forex Trading Platform * No need to download any forex trading software. * It is purely online currency trading Forex Trading It derives its name from foreign exchange trading. It also know as the following: * fx trading * currency trading Why Use this Forex Trading Platform? This Forex Trading Company wants to show you how you can be part of the largest global market. When choosing which online platform to trade with, there are many different considerations. Here are some of the reasons why they are the platform of choice. * Its about you: personal service; training * Trading with us is easy: no software download; instant deposits; margin trading with low minimum deposit; quick registration * Managing risk: rates, limits and stop-loss; tools to trade smarter * Transparent: no hidden costs * Innovative: trade anywhere at anytime; Freeze rate; special features and tools only available to our traders * Flexible and competitive: special terms for frequent traders; spreads; bonuses * Security: data security and privacy * Professional: reputable business partners; real-time quotes Their platform includes: * Free and simple registration, start in 5 minutes; * 24 / 7 online from any computer, anywhere, no download; * Regulated (USA; UK; Australia; EU); * Instant deposits and profit withdrawals with credit cards or PayPal; * Start trading from as little as $50; * No additional collateral required for trading (no "maintenance margin"); * Unique "Freeze rate" trading feature (accept or regret); * No hidden costs; * Working with reputable business partners and world leading banks; * Full transparency, full control, highest data security and privacy; * Special tailor-made terms to individuals traders; * Free 1-on-1 live training by experts; * Personal service by real people with real names and addresses; * Special incentives to frequent traders; * Portfolio manager programs currency forex online trading currency forex trading foreign exchange trading forex forex currency forex day trading forex software forex system forex trade forex trading forex trading platform forex trading signal forex trading software forex trading strategy forex trading system fx trading online currency trading online forex online forex trading online forex trading platform trading currency. http://tips-and-articles.com
Views: 118 randallcwilson
Trading with the Momentum Indicator
 
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This lesson is designed to introduce the trader to this indicator, its basic construction, how it can be used for trends or reversals, to indicate trend strength or weakness, and how it relates to price action. To learn more about the services we offer, visit http://2ndskiesforex.com
Views: 33301 2ndSkies Forex
Latest  breakthrough in automated forex trading has arrived
 
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http://www.forex-tracer.fxmechanics.com Forex trading once restricted to the large banks and blue chip companies has now become available to the average Joe.
Views: 26 papaghost08
What is FOREX FOREX Investment Opportunities
 
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Forex Market or Foreign Exchange Market, 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...
Views: 462 mailmegatienda
Forex Trading |Class #3 Forex vs. Other Markets| FXReturn.com
 
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We will discuss the Forex Market vs.Other Markets.We will discuss the benefits of the Forex Market,the Forex Market vs. The Stock Market and The Forex Market vs. The Futures Market
Views: 1322 FXReturn
101. How Rollover Works in Forex Trading
 
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Check out the rest of our intro to forex course: http://www.informedtrades.com/f112 Practice forex trading with a free demo account: http://bit.ly/IT-forex-demo3 A lesson on what rollover is and how it works for traders of the forex market who hold trading positions overnight.
Views: 22158 InformedTrades
103. What Moves the Forex Market? - Trade Flows
 
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Practice trading for free: http://bit.ly/IT-forex-demo3 Continue your forex education: http://www.informedtrades.com/ A lesson on how the trade flows between different countries affect the value of their currencies for active traders and investors in the forex market.
Views: 24610 InformedTrades
Forex Trade System "Scaled Equation"
 
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Forex trade system and FREE signals. Over 300% profit in 2007! Free signals! Over 3000 pips in the first quarter of 2008!
Views: 2034 afsfraven
86. Setting Up Your Forex Trading Software
 
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The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/forex-demo1 A lesson on getting set up with a forex trading demo account for active currency and foreign exchange traders.
Views: 141083 InformedTrades
93. How to Calculate Forex Trading Profits and Losses
 
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http://www.informedtrades.com/ A lesson on how to calculate profits and losses in the forex market for active traders and investors in foreign exchange and currrencies. The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/IT-forex-demo3
Views: 69283 InformedTrades
88. Forex Trading - Understanding Currency Rate Movements
 
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Free Forex Course on InformedTrades: http://www.informedtrades.com/f112/ The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/IT-forex-demo3 A lesson on understanding what increases and decreases in the rate of a currency pair mean for the values of the currencies which make up that pair.
Views: 42432 InformedTrades
89. Forex Trading - Understanding the Bid/Ask Spread
 
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Check out the free forex course on InformedTrades: http://www.informedtrades.com/f112/ Register for a free forex demo trading account: http://bit.ly/IT-forex-demo3 A lesson on the two way quote in forex trading referred to as the bid ask spread and what this means to us as traders of the forex market.
Views: 51277 InformedTrades
About Forex - Part 3
 
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www.BestForExpert.com Recent years up to now some expert form Financial back ground had encouraged us to do some investment. And also some time ago there are some articles in the Strait Times, saying FOREX is safer to be done by expert, such as Banks. We are operating a FOREX Trading Education Centre. Teaching the general public like yourself to acquire the knowledge on how to Trade FOREX Online. Our reasons is to create awareness to general public how Big Players such as Commercial Bank, Central Bank , Importer & Exporter and etc, how they make profit form FOREX. Our Strategies are proven by more than over 1000, students. We are very confident that you will achieve at least 10% ROI (Return of Investment). We are giving you the following: • 6 months one to one session with your private Trainer. • 2 Days course. • Unlimited recourse for 6 months. • Expert Adviser to run your trade. If you are not generating any profit after using our proven strategy after 6 months, there will be 110% MONEY BACK GUARANTEE. (Terms and Condition apply) Regards, MK Chin (MBA), FOREX Trader and Investor (Full time), 2 Havelock Road, Apollo Centre, Singapore 059763. (Clarke Quay MRT). [email protected] www.BestForExpert.com
Views: 245 Chrismilly2007
Forex Trading Guide
 
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Discover exactly what the stock market is all about. Learn new stock market trends. Find out how to understand currency conversion. Discover forex volatility and market expectations. Learn aspects of the trade. The "Buzz" words that you need to know. Discover several risk management factors you need to know. Learn exactly how to read and interpret statistics. Discover how to handle a whipsaw. Find out how to use arbitrage correctly. An in depth look at secondary markets. How to use the foreign exchange market to your advantage. Learn how to properly protect your investments. Exactly how investment works and how it can work for you. Plus much MUCH More!
Views: 1303 MantisFoundation
To Hedge or Not to Hedge-Forex Trading
 
02:23
Free strategy vids: http://www.forexstrategysecrets.com Hedging in the forex market seemed like a great idea to me at first. However, it has been terribly ineffective, and the only way I have trading out out of a hedge is by trading very small.
Views: 16729 ForexStrategySecrets
Forex Tracer Automated Trading Software - Make Money Online on FOREX
 
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Download Forex Tracer: http://hitek192.iforex.hop.clickbank.net/ 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.
Views: 296 AsSeenOnTv12
FOREX Training - Trading Interest Rate Decision
 
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Download my MT4 chart templates, profiles, indicators and pivot points for FREE: http://charts.fxbootcamp.com Today the Federal Open Market Committy of the Federal Reserve Bank lowered the Fed Funds Target Rate to 1%. See how we traded it live using fibonacci studies, multiple time frames and intermarket analysis of the 10 Year T-Note. Live FOREX Training | EVERYDAY http://www.fxbootcamp.com
Views: 4027 fxbootcamp
94. An Introduction to Leverage in Trading
 
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Practice trading with leverage: http://bit.ly/IT-forex-demo3 View full lesson: http://www.informedtrades.com/21270-setting-up-your-demo-forex-trading-account.html A lesson on what leverage is and how it is used to amplify gains and losses in the forex market. This lesson also applies to any financial market including stocks and futures so a good lesson for both traders and investors.
Views: 25209 InformedTrades
99. How to Place a Stop Loss and Take Profit Order in Forex
 
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Practice placing orders with a demo trading account: http://bit.ly/IT-forex-demo3 A lesson on how to place a stop loss and take profit order in the forex market. For active traders and Investors in the forex market.
Views: 66908 InformedTrades
Trading forex pairs with oil
 
08:05
This is the first article in a series we will be doing at www.PFXglobal.com on forex trading and intermarket analysis. Intermarket analysis is a tool that can be used to find trading opportunities in the market. 100% free forex education available from http://www.pfxglobal.com
Views: 6206 profitingwithforex
92. Forex Trading - Pips and Fractional Pip Pricing
 
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http://www.informedtrades.com/ A lesson on what a pip is in the forex market as well as what fractional pip pricing is for active traders and investors in the foreign exchange market. The platform featured in the video is the FX Trading Station. Click here to try a register for a free practice account on the FX Trading Station: http://bit.ly/IT-forex-demo3
Views: 32963 InformedTrades
Trading the Forex with Bonds - Part 4
 
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The forex is a great place to trade and offers a lot of opportunity for profits. Intermarket analysis can amplify these benefits for forex traders by increasing the frequency of trading opportunities. 100% free forex education available from http://www.pfxglobal.com.
Views: 2701 profitingwithforex
Citi Sydney - Trading Room 1/2 [HQ]
 
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18/11/08 - A tour of Citi trading room Sydney office.
Views: 38647 MidnightCrysis
115. Forex Trading Fundamentals Quiz - Test Your Knowledge
 
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Lesson Link: http://www.informedtrades.com/26444-forex-trading-quiz-test-your-basic-forex-fundamentals-knowledge.html As we now have a basic understanding of how trade flows and capital flows move the forex market, the next step is to look at each of the individual currencies we will be focusing on so we can gain an understanding of their backgrounds, and the makeup of their economies. Once we have an understanding of this it will become clear what fundamental factors are the most important drivers of individual currencies, and therefore what we as traders should watch for. Before we get into this however it is very important that everyone has a sound understanding of how trade flows and capital flows move the forex market (which is covered in module 3 of this course) as well as the following concepts, all of which are covered in module 8 of our free basics of trading course located in the free course section of InformedTrades.com: - We all need to understand what the business cycle is. - The difference between monetary and fiscal policy. - What a central bank is and how they go about changing interest rates. In module 8 of the basics of trading course we cover the Federal Reserve which is the central bank in the United States. While the central banks that we are going to be covering going forward may differ in how aggressive they are with monetary policy in relation to the Federal Reserve, the methods they use to conduct monetary policy, and the reactions of the forex market that monetary policy generates, is basically the same no matter what central bank you are looking at. - The first currency we will be covering will be the US Dollar, so you should have a good understanding of the basic components of the US Economy. I am going to give everyone 10 questions here that you should now have the knowledge to answer if you have been through module 8 of my free basics of trading course, and module 3 of this course. To help make it interesting for everyone, I will offer a free copy of Kathy Lien's excellent book Day Trading the Currency Market, to the first person that posts the correct answers to all 10 questions in the comments section of this lesson on InformedTrades.com. If you are watching this video on Youtube you can find a link to this lesson on InformedTrades to the right of the video. Ok so here we go: 1. If inflation is low and a Central Bank is concerned about recession, what would the expected monetary policy response be? 2. If inflation and growth are both high what would the expected monetary policy response be? 3. If a central bank raises interest rates, what affect if any is this expected to have on the currency of that country, all else being equal? 4. If a central bank lowers interest rates, what affect if any is this expected to have on the currency of that country, all else being equal? 5. If a country's imports grow and all other trade and capital flows remain equal, what affect would this have on the current account and what would be the expected affect on the currency if any? 6. If a country's exports grow and all other trade and capital flows remain equal, what affect would this have on the current account and what would be the expected affect on the currency if any? 7. If a country is a major exporter of gold and the price of gold moves up by 50% over the course of a year, what would be the expected affect if any on that country's currency all else being equal? 8. Japan is a major importer of oil and Canada is a major exporter of oil. If the price of oil goes up by 50% over the course of a year, then what affect if any should this have on the CAD/JPY currency pair all else being equal? 9. Traders who follow US Dollar fundamentals pay particular attention to any numbers which reflect the overall health of the consumer. Why? 10. The US Economy in the past was referred to as an Industrial Economy, now it is referred to more as a ________________ Economy. Once the first person posts the right answers to all 10 questions I will send a private message to them via the forum to request the mailing address where they would like their free copy of Day Trading the Currency Market sent. That's our lesson for today. In tomorrow's lesson we will begin a discussion on the fundamentals that move each of the main currencies we will be focusing on, starting with the US Dollar, so I hope to see you in that lesson.
Views: 13512 InformedTrades
Trading the Forex with Bonds - Part 2
 
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Bond prices are affected by several factors but some of the most powerful are investor tolerance for risk and inflation. This is helpful information for us forex traders that have to deal with the same issues as we look for new opportunities or exits in the market. 100% free forex education available from http://www.pfxglobal.com.
Views: 5849 profitingwithforex
Banks get hammered
 
06:53
The Wachovia announcement of a larger than expected write-down set off a chain of events in the stock market reminiscent of the credit panics of recent months. Subsequently, the S&P downgrade of Merrill, Morgan and Lehman shoved the market down further. The important thing that forex traders need to think through is how the break in the stock market pushes the forex. Today we are already seeing an adjustment in the USD/JPY and USD/CHF as traders react to today's risk adjustment. The adjustment on the two pairs is similar but for different fundamental reasons. In today's video we will talk about that and I will share the levels I am using to identify a significant break of support.
Views: 234 profitingwithforex
Money Making Secrets Revealed: Forex Exposed
 
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http://www.forex.MakeMoneyFromScratch.net Are you looking for quick money making secrets to make some extra cash to take a vacation, pay bills, pay your debts or buy a new car? Or maybe you want to make money full time from your home? Well, This is your lucky day, because the best money making secret amongst all will be revealed. It is no other than, Forex. Forex, is also known as Foreign Exchange Trading or Currency Exchange Trading. It is currently recognized as the world's largest financial market. The Foreign Exchange Market exists wherever one currency is traded for another. It includes trading between large banks, central banks, currency speculators, multinational corporations, governments and other institutions. It is a portal for people on how to make money fast With forex, you can trade commissions free in over 60 currencies around the globe. And you can benefit on this currencies whether they are going up or down. You can possibly make money in either case or profit from both. It is by far the most effective amongst all the money making ideas. Find out about the secrets of currency trading and learn to control large sums of money using leverage. When you trade currencies, you are taking advantage of a 100 to 1 leverage. This is the most powerful concept of forex trading, how to use leverage for your success. Learn forex today and know how I make good money with lesser time for work and more time for my loved ones and recreation. Be a part of the forex world right now at http://www.MakeMoneyFromScratch.net and make unstoppable cash in no time.
Views: 404 forextrainingtoday
78. An Overview of the Forex Market
 
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View our full free forex course: http://www.informedtrades.com/f112/ Register for a free forex demo trading account: http://bit.ly/forex-demo1 The first lesson in our new free video forex trading course which introduces the main aspects that differentiate the forex market from the equities and the futures markets.
Views: 96213 InformedTrades
74. The Advantages and Disadvantages of Position Trading
 
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Continue learning: http://www.informedtrades.com/ Practice trading with a free demo trading account: http://bit.ly/IT-forex-demo3 A lesson on the advantages and disadvantages of position trading for active traders and investors in the stock, futures, and forex markets. In our last lesson we looked at the advantages and disadvantages of the second most popular style of trading, swing trading. In today's lesson we are going to look at the third and final category of trading, position trading. Position Trading, which is also referred to as trend trading, generally involves holding a position for three to six months to capture a fundamental change in the value of the financial instrument that is being traded. As this is the case position traders will generally be more prone to integrating at least some fundamental analysis into their trading, than will day and swing traders. Probably the biggest advantage to position trading is it generally involves the least amount of time of the three trading styles. After they have spent the significant time necessary to learn about trading in general, many good position traders will spend just several hours a week analyzing the market and making their trades. As they are holding positions for long periods of time good position traders have their stop loss and profit targets in place before making the trade, requiring that the trader only monitor the position to make sure nothing significant has changed since his original trading decision. The second major advantage that I think many traders would site about position trading is that because you are in positions for long periods of time with wide stop loss orders, your positions have room to breath and are much less likely to get stopped out because of random market noise than with the other two styles. As we learned in our lesson on Swing Trading, holding positions over longer time frames generally requires wider stop loss orders. While as we have just stated this is an advantage from a market noise standpoint it is also a disadvantage from a larger average risk per trade standpoint. The second main disadvantage that I think most traders would site is that position traders miss out on many of the shorter term opportunities that day traders and swing traders can use to amplify their profits. This is not only true from a length of trade standpoint but also from a capital standpoint. Because position traders hold positions for long periods of time their trading capital is also tied up in those trades for longer periods of time, restricting them from taking advantage of as many opportunities. We are going to go into a bit more detail on how to choose the style of trading which is best for each trader in our lesson on the trader's business plan, but you should now have a good understanding of what each style entails. The last thing that I would like to point out here is that often times different styles work better in different types of market conditions. With this in mind many traders will learn a bit about each of these styles so they can place longer or shorter term trades depending on the market conditions at the time. That's our lesson for today, in our next lesson we are going to begin to take a look at the different markets that are available to traders so we hope to see you in that lesson.
Views: 19712 InformedTrades
133. Choosing a Forex Broker: Regulation and Financial Stability
 
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http://www.informedtrades.com -- What forex traders need to consider regarding the regulatory environment of the forex broker they trade with.
Views: 8059 InformedTrades
Corporates seek legal aid against banks
 
04:25
The fear of mounting losses on exotic forex derivative products may now push many companies to head to the courts. Following reports of possible forex losses, many companies are scanning through the agreements signed with their banks on forex derivatives to see if these agreements are legally enforceable and if they can avoid losses on their balance sheets.
Views: 345 NDTV
Forex Trading #24: The "Optimized" Carry Trade
 
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http://www.ForexCoachingPros.com http://www.ForexTidalWave.com Stephen Story (Trader, Coach, Author) discusses his optimized carry trade strategy, and how new traders can use it to make money early in their trading careers while they are learning the more in-depth aspects of trading.
Views: 4880 ForexCoachingPros
Forex ebook trade with zero risk to capital
 
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http://www.forexzeno.com Download the free first chapter of this forex book that shows how to trade with zero risk to your capital. Forex trade method simple and safe. Learn forex ebook trading.
Views: 1086 tutux2

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