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forex broker commission comparison
In this Forex broker comparison, we look at many different factors, such as the different ways that you could be charged a commission from the various online brokers in the market. If you're a rookie in the Forex market, you might be thinking, "Wait a minute! I thought we didn't have to pay commissions with some brokers." While this is technically true, you are still paying your broker in one way or another, regardless of whether they call it "commissions" or not.
Here is a handy reference chart that you can scroll through to compare some of the brokers available in the market.
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Fixed Forex unfold
One way that you just may doubtless pay your broker is by employing a mounted Forex unfold. With this approach, you recognize precisely what quantity the unfold is on every dealings that you just create. for instance, on the GBP/USD try, once you create a trade, you may need to provide them a pair of pips.
forex broker comparison
These sorts of brokers can provide you with a resource that you just will use to check the spreads on every currency try. With a set unfold broker, the spreads area unit invariably an equivalent, no matter what's truly occurring within the market.
Variable Spreads
Another structure that Forex brokers use is that the variable unfold methodology. With this sort of commission structure, you pay a variable unfold that fluctuates with market conditions. for instance, typically the unfold on the GBP/USD try is one.6 and at alternative times its a pair of.4.
With discount a broker, you have got to appear at your commercialism platform at the time of the trade to check what the unfold is.
Commission Brokers
While most Forex brokerage companies use some form of unfold for compensation, alternative on-line brokers use a commission structure. With this sort of compensation structure, the broker charges you a share of the unfold on every trade.
With this approach, you may solely need to pay a fraction of a pip towards the broker then your order is passed on to a bigger firm that puts it into the market.
Which is Better?
There is not invariably a collection answer on which sort of broker would be higher for your commercialism. whereas several newbies assume that the mounted unfold brokers may be the simplest, this can be not essentially the case. you may be able to pay less in dealings prices by employing a commissioned broker.
Before selecting a broker, you would like to induce a demo account and see what their spreads area unit at any given moment. Some can advertise little spreads, however once it comes time to trade, their spreads are literally alittle larger.
Look at the main points of every broker you're considering before creating a choice. By doing a straightforward Forex broker comparison on the commission structures of every one, you'll be able to see that one would be the simplest choice for you. every broker ought to have elaborated data on however they're paid, that you'll be able to access before gap associate degree account
While the quantity of cash that you just need to pay in dealings prices isn't the sole issue for you to worth a once selecting a Forex broker, it ought to positively play a job in your call.
Thursday, June 6, 2013
Monday, June 3, 2013
How to choose a forex broker
Choosing a forex broker is a very important and crucial moment of the beginning of real trade in this market. Broker is the intermediary between the financial institution and the inter-bank foreign exchange market trader. Its degree of professionalism, reliability, and the terms of trade depends largely on the success of trade. Unfortunately, information on choosing a broker in the forex market for beginners is often served in a biased with a hidden advertisement of a broker.
Which broker to choose and what criteria should be considered?
Terms of trade:
Spread. Check out the type and size of the spread. Some of them are fixed and remain constant for any developments in the market, others - floating, the value of which is variable in situations of heightened volatility and increases in such moments, dozens of times.
The minimum amount of money needed to open a trading account. Is an important moment of choice and depends on the amount of your initial capital. Some brokers have the mini and micro account and open an account with them possible since the 100-200 USD, others offer a minimum trade 1 lot and given the money management system, you should be in the account for at least 10,000 USD. If you want to work with serious West Brokers, the required deposit amount may start at 50,000 USD.
Additional fees. Usually they are available, but must be carefully read the Terms of the contract that would avoid hidden charges. Most brokers there is a commission for the process of transferring your position in a day - Swap, the value of which, depending on the interest rate in exchange traded currency pair, maybe as charged to your account and credited.
Trading platform, ease of working with her and the availability of payment for its use, and the availability of payment analytical information. As a rule, the trading platform, providing quotes and analysts are free, but clarify this point.
Additional terms and restrictions apply. Sometimes brokers, most Western impose additional requirements on the mandatory number of transactions or the amount of cash flow per month and at default - withdraw fee.
Which broker to choose and what criteria should be considered?
Terms of trade:
Spread. Check out the type and size of the spread. Some of them are fixed and remain constant for any developments in the market, others - floating, the value of which is variable in situations of heightened volatility and increases in such moments, dozens of times.
The minimum amount of money needed to open a trading account. Is an important moment of choice and depends on the amount of your initial capital. Some brokers have the mini and micro account and open an account with them possible since the 100-200 USD, others offer a minimum trade 1 lot and given the money management system, you should be in the account for at least 10,000 USD. If you want to work with serious West Brokers, the required deposit amount may start at 50,000 USD.
Additional fees. Usually they are available, but must be carefully read the Terms of the contract that would avoid hidden charges. Most brokers there is a commission for the process of transferring your position in a day - Swap, the value of which, depending on the interest rate in exchange traded currency pair, maybe as charged to your account and credited.
Trading platform, ease of working with her and the availability of payment for its use, and the availability of payment analytical information. As a rule, the trading platform, providing quotes and analysts are free, but clarify this point.
Additional terms and restrictions apply. Sometimes brokers, most Western impose additional requirements on the mandatory number of transactions or the amount of cash flow per month and at default - withdraw fee.
The forms and methods of input and output of cash, as well as whether the broker tax agent - that is, whether the withheld tax on earned and the output from your cash. Need to find out whether it is possible acceptance of electronic money, what documents are required and how the contract is signed - in person or through a broker's website.
Reliability:
Terms of the contract. It must contain a description of all the nuances and controversial issues that typically arise in the course of trade, and how to resolve them. Clearly defined responsibilities and obligations of the parties. Must be public regulation of the transactions. If you do not understand, find out all the points at this stage or consult a lawyer.
Legal status and jurisdiction of the company. You have to see where the company is incorporated - in your country or anywhere in the offshore. As you know, in the case of fraud or failure to meet contractual conditions, to sue a company registered in the offshore practically useless.
Term presence in the market. Look at the history of a broker, the presence of his branch network, the amount of own funds, the amount of customer reviews on the company, the quality of services, the availability of complaints and how they were resolved. If possible, talk to customers you are interested broker.
Licenses. Prerequisite. Foreign brokers all have licenses and Russian brokers in the majority of homes have a gaming license.
Liability insurance. An important indicator - the presence of a broker liable to the customer for the complete safety of cash, which guarantees their return in a number of situations. An additional advantage is the accrual of interest on bank balance amount on the customer's account.
Currently on the market there are a large number of brokers that provide services in the forex market and you can choose the most suitable for your circumstances. Many are trying to choose a foreign broker. In this case, you must remember:
Foreign forex brokers are usually more reliable reputation, but you should not forget about the requirements of making relatively large start-up capital, which is problematic for beginners. It is very important to know not only English, but also trade terminology in English, as the Russian-language support is not at all or limited and trading platform, analytics, contract - in English. In addition, some have a sufficiently sophisticated trading platforms that require serious consideration.
Russian forex brokers are more adapted to the mentality and level traders former Soviet Union. It takes much less start-up capital. All support in Russian, and is widely represented trading platform Metatrader 4 - is simple to learn and intuitive to use.
The best forex brokers in the market have an extensive network of branches and sales offices, including many foreign brokers are in the CIS countries.
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There are many online resources that explain the comparative characteristics of a list of brokers and their ranking according to various criteria and indicators. You can find a list of reliable brokers. When choosing a broker, and then read some of the most suitable to you, then read the agreement, in the event of ambiguities - phoned with the staff of the brokerage company and find them. Get a demo account selected broker, try to run 1-2 weeks, and if you are satisfied - open a real account.
Saturday, June 1, 2013
Essence of technical forex analysis.
Technical forex analysis can be generally defined as a method of forecasting prices, based on mathematical rather than economic computations. This method was created for purely industrial purposes, namely income while playing at first in the securities markets, and later in the futures. All methods of technical analysis created separately from each other and only in the 70s were integrated into a single theory with the general philosophy, axioms and basic principles.
Technical analysis - a method of forecasting prices with the graphs of market movements in the previous periods.
The practical use of technical analysis implies the existence of axioms.
Axiom 1. Movement of the market account for all (or rates account for all).
Any factor that affects the price (for example, the market price of the goods), - economic, political, psychological - is taken into account in advance and is reflected in its schedule.
Axiom 2. Prices move directionally.
This assumption is the basis for all methods of technical analysis. The main task of technical analysis is to determine the price trends (or tendencies or trends) for use in the trade.
Identify trends that gives the Dow, is as follows: when the rising trend (bullish trend) of each successive peak and each subsequent decline over the previous one. By other words, the bullish trend should be consistently with the outline of the curve rising peaks and troughs. Accordingly, the downward trend (bearish), each successive peak and decline will be lower than the previous one. Such definition is a fundamental trends and serves as a starting point in the analysis of trends.
There are three types of trends - bullish (upward price movement), bearish (downward price movement) and side (the price is almost not moving). All three types of trends are not in pure form, as the movement of "straight" on a price chart can be found very rarely.
The trend is valid as long as the files a clear signal that it has changed.
Axiom 3. History repeats itself.
Analysts have suggested that if a certain type of analysis worked in the past, it will work in the future, as It is built on a sustainable human psychology.
Technical analysis classified into two methods:
- Graphic
- Math - computer analysis.
The Maastricht Treaty on European Union
Signed in February 1992 and came into force on November 1, 1993, provided for the gradual formation of a monetary and economic union:
The first phase began almost since July 1992 with the withdrawal of all foreign exchange restrictions on the movement of capital within the EU. At this stage, the problem was solved by reducing the rate of inflation and reduce the budget deficit. In September 1993, the share exchange was frozen in ECU at the next level: Germany - 32.6%, France - 19.9%, England - 11.5%.
From January 1994 - provided for the creation of Frankfurt-am-Main European Monetary Institute and the preparation of the creation of the single European currency.
Begins with January 1997, when the EU reached the required level of convergence. In this case, since January 1, 1999 participants in the economic monetary union will become the country's economy which will meet the established criteria.
Maastricht criterion - a criterion that must be satisfied currency to replace it with the euro:
Inflation <3% per year
The national debt <60% of GDP
Discount Rate <max value of one of the three lowest rate + 2%.
In Germany, a very low retirement age, and the Germans are afraid of change marks a cheaper currency - the euro.
SWITZERLAND
Switzerland is not going to join the European Union, thereby emphasizing their independence. The attractiveness of CHF remains high. But there are problems associated with the Nazi gold, which call into question the reputation of the major Swiss banks.
UK
The presence of high interest rates in the UK identifies a large interest in the world of speculators, which affects the economic performance as a whole. England - a recognized global financial center, the main offices of the largest investment giants are located right here in the country operates a very strict laws governing the financial activities of companies, banks and stock exchanges.
The first phase began almost since July 1992 with the withdrawal of all foreign exchange restrictions on the movement of capital within the EU. At this stage, the problem was solved by reducing the rate of inflation and reduce the budget deficit. In September 1993, the share exchange was frozen in ECU at the next level: Germany - 32.6%, France - 19.9%, England - 11.5%.
From January 1994 - provided for the creation of Frankfurt-am-Main European Monetary Institute and the preparation of the creation of the single European currency.
Begins with January 1997, when the EU reached the required level of convergence. In this case, since January 1, 1999 participants in the economic monetary union will become the country's economy which will meet the established criteria.
Maastricht criterion - a criterion that must be satisfied currency to replace it with the euro:
Inflation <3% per year
The national debt <60% of GDP
Discount Rate <max value of one of the three lowest rate + 2%.
In Germany, a very low retirement age, and the Germans are afraid of change marks a cheaper currency - the euro.
SWITZERLAND
Switzerland is not going to join the European Union, thereby emphasizing their independence. The attractiveness of CHF remains high. But there are problems associated with the Nazi gold, which call into question the reputation of the major Swiss banks.
UK
The presence of high interest rates in the UK identifies a large interest in the world of speculators, which affects the economic performance as a whole. England - a recognized global financial center, the main offices of the largest investment giants are located right here in the country operates a very strict laws governing the financial activities of companies, banks and stock exchanges.
Inflation indicators
The Consumer Price Index (Consumer Price Index - CPI) - that's the retail price index.
The index of producer prices (Producer Price Index - PPI) - the index of wholesale prices.
The more of these indices, the more expensive the national currency. Considered acceptable to the growth of these indices to 3% per year.
The monetary aggregates:
M1, M2, M3, M4 - MONEY SUPPLY - monetary support.
M1 - cash in circulation, bank notes and coins;
M2 = M1 + funds for the settlement and current accounts in banks, traveler's checks;
M3 = M2 + time deposits in banks;
M4 = M3 + valuable state documents.
The accelerated growth of the money supply, both in cash and non-cash, provide downward pressure on the currency.
Gross domestic product (Gross Domestic Product - GDP)
The higher the GDP, the better the condition of economy. Optimal change - up to 3% a year, if higher - the reverse reaction. Have to enter the higher rates, which will cause the appreciation of the national currency.
CPI and PPI are considered once a month, M / M.
GDP - Quarterly Q / Q and converted to year Y / Y.
Financial performance report (Treasure Statement)
1. Revenues and expenses of citizens
Personal income (Personal Income)
Feeling the consumer's willingness to spend money (Consumer Sentiment)
2. Construction Spending (Construction Spending)
Start of construction (Hosing Starts)
Appeal at resolving (Building Permits)
New home prices (New Houses Sales)
Current prices (Existing Houses Sales).
The unemployment rate (Unemployment Rate) - is once a month. With increase in national currency depreciates.
Initial jobless claims (Imital Claims).
Ongoing treatment (Continuing Claims).
Increase in these parameters results in a cheaper currency.
Retailing (Retail Sales) - the better the trade, the stronger currency.
Dealer orders durable goods (Durable Goods).
All of this information is Moscow time at 16:30 and 18:30 (Reuters, CQG)
JAPAN
Japan's fiscal year ends on March 31. By the end of the year, as a rule, to take stock of balances transferred to a large amount foreign exchange in the yen, which tends to rise in price. Numerous insurance companies in Japan are the largest players in the market: USD / JPI, USD / DEM, DEM / JPI, CHF / JPI, GBP / JPI. The big problem in Japan is an aging population. Hold on for many years a small interest rate has caused distortion in the banking industry, but, nevertheless, Japan's banks remain the world's major banks. Strengthening South-East economy in the long term will give a chance to the yen to become the main currency for the Asian region.
GERMANY
In Germany a very costly annexation of East Germany (larger transfers from the pension fund, five undeveloped land and unemployment). Under Gorbachev, and later under Yeltsin, Germany issued a lot of credit to Russia ($ 30mlrd), so that any adverse political events in Russia cause a dramatic change in the course of the brand in relation to other currencies. Reports on the state of health of Yeltsin dramatically reduces the cost of DEM versus $.
The index of producer prices (Producer Price Index - PPI) - the index of wholesale prices.
The more of these indices, the more expensive the national currency. Considered acceptable to the growth of these indices to 3% per year.
The monetary aggregates:
M1, M2, M3, M4 - MONEY SUPPLY - monetary support.
M1 - cash in circulation, bank notes and coins;
M2 = M1 + funds for the settlement and current accounts in banks, traveler's checks;
M3 = M2 + time deposits in banks;
M4 = M3 + valuable state documents.
The accelerated growth of the money supply, both in cash and non-cash, provide downward pressure on the currency.
Gross domestic product (Gross Domestic Product - GDP)
The higher the GDP, the better the condition of economy. Optimal change - up to 3% a year, if higher - the reverse reaction. Have to enter the higher rates, which will cause the appreciation of the national currency.
CPI and PPI are considered once a month, M / M.
GDP - Quarterly Q / Q and converted to year Y / Y.
Financial performance report (Treasure Statement)
1. Revenues and expenses of citizens
Personal income (Personal Income)
Feeling the consumer's willingness to spend money (Consumer Sentiment)
2. Construction Spending (Construction Spending)
Start of construction (Hosing Starts)
Appeal at resolving (Building Permits)
New home prices (New Houses Sales)
Current prices (Existing Houses Sales).
The unemployment rate (Unemployment Rate) - is once a month. With increase in national currency depreciates.
Initial jobless claims (Imital Claims).
Ongoing treatment (Continuing Claims).
Increase in these parameters results in a cheaper currency.
Retailing (Retail Sales) - the better the trade, the stronger currency.
Dealer orders durable goods (Durable Goods).
All of this information is Moscow time at 16:30 and 18:30 (Reuters, CQG)
JAPAN
Japan's fiscal year ends on March 31. By the end of the year, as a rule, to take stock of balances transferred to a large amount foreign exchange in the yen, which tends to rise in price. Numerous insurance companies in Japan are the largest players in the market: USD / JPI, USD / DEM, DEM / JPI, CHF / JPI, GBP / JPI. The big problem in Japan is an aging population. Hold on for many years a small interest rate has caused distortion in the banking industry, but, nevertheless, Japan's banks remain the world's major banks. Strengthening South-East economy in the long term will give a chance to the yen to become the main currency for the Asian region.
GERMANY
In Germany a very costly annexation of East Germany (larger transfers from the pension fund, five undeveloped land and unemployment). Under Gorbachev, and later under Yeltsin, Germany issued a lot of credit to Russia ($ 30mlrd), so that any adverse political events in Russia cause a dramatic change in the course of the brand in relation to other currencies. Reports on the state of health of Yeltsin dramatically reduces the cost of DEM versus $.
The Role of Central Banks in Forex Trading
Central Bank monitors the level of inflation in the country, the rate of the national currency and tries to adjust with three key interest rates:
1. Discount rate - Discount rate. The interest rate under which the Central Bank lends to commercial banks.
USA -6,50%
Switz. - 3,75%
UK - 6,00%
EU - 3,75%
Japan - 0,5%
American and British rates are quite high, therefore they are showing great interest of foreign investors.
2. Rate - Repo rate. The interest rate applied by the Central Bank in transactions with commercial banks and other lenders when buying a (registered) government treasury bills. CB thereby regulates the loan market. Fed Funds (Rate Repo USA)
3. Lombard rate - Lombard rate. The interest rate applied by the Central Bank on the security of real estate, gold values for loans to commercial banks.
With a decrease in interest rates increased business activity and increased inflation. Lower interest rates leads to a cheaper currency. An increase in interest rates leads to a reduction in business activity, lower inflation and appreciation of the currency. In modern conditions the method of influence on the currency continues to be the practice of buying and selling of foreign currency by central banks, known as currency intervention.
Central banks:
USA:
• FED - Federal Reseve System;
The decision to change the rates adopted FOMC-Federal Open Market Committee, which meets every six weeks for two days: Monday and Tuesday.
• Chairman of the Board - Alan Greenspan
The federal funds rate (refinancing) = 6.50%
Discount Rate = 6.0%.
Germany:
• Bundesbank (BBK, Buba) - The Central Bank of Germany
• Buba cooncil meeting - meeting Buba - every 2 weeks on Thursdays;
• Chairman of the Board - Ernst Welteke
Great Britain:
• Bank of England - BOE;
• Session 1 once a month;
• Chairman of the Board - Eddie George
Discount rate = 6.00%
Switzerland:
• Swiss National Bank (SNB);
• meeting - every Thursday;
• Chairman of the Board - Hans Meyer
rate of LIBOR = 3.25%
Japan:
• Bank of Japan (BOJ);
• meeting 24 hours a day;
• Chairman of the Board - Masaru Hayami
Discount rate = 0.50%
EU:
• Europian Central Bank (ECB);
• Chairman of the Board - Willem F. Duisenberg, President of the ECB
Discount rate = 3.75%.
Along with the central banks operate in the foreign exchange market, brokerage firms, who, working with a particular bank, acting as intermediary between the seller and the buyer of the currency. For certain advantages of working through a broker can be attributed anonymity in transactions, continuity of quotes, and the ability to offer their own prices.
In recent decades, the forex market has changed the nature of trade with the transfer of the urgency to change the focus of trade: there has been a significant increase in transactions, the execution of which takes place in the future. All this resulted, on the one hand, to increased susceptibility to opportunistic currency market change and a significant increase in currency fluctuations, and on the other hand, to increase capacity for a high investment. In many markets, along with widespread operations on purchase and sale of foreign currency received into derivative financial instruments - currency and financial futures and options. Examples of such exchanges have long been recognized as the world's centers of currency trading can serve as the London International Financial Futures Exchange (London International Financial Futures Exchange - LIFFE), the European Options Exchange in Amsterdam (European Options Exchange - EOE), the German Stock Exchange in Frankfurt Express (Deutsche Terminboerse - DTB), Singapore Exchange (Singapore International Monetary Exchange - SIMEX) (Sydney Futures Exchange - SFE) and the Stock Exchange Derivatives Trading in Sydney.
Friday, May 31, 2013
The OTC turnover index (NASDAQ)
The National Association of Securities Dealers calculates a number of indices representing both OTC turnover in general, and of corporations individual industries. The main index is the NASDAQ, which are included as a component stock of about 3,500 corporations (other than listed on the stock exchanges). This index is an index weighted by the market value of its components. It was first calculated in February 1971.
Transactions in options and futures on this index are carried out on the Chicago Mercantile Exchange.
Falling stock index leads to a drop in the national currency.
NASDAQ.SYSTEM
U.S. OTC market dealers are connected with the sellers and purchasers ¬ securities via the automated Institute ¬ formation about the quotes of the National Association of Securities Dealers NASDAQ. This system transmits the most recent courses of supply and demand to 5100 shares, selected from among the most active ¬ but sold over the counter. Facilitating the establishment of con ¬ cycles between sellers and buyers, NASDAQ has made tor ¬ merce on the OTC market continuously. To conclude the transaction ¬ ki securities not listed on a system of NASDAQ, ¬ lam buyers and sellers have to find each other on the reference edition ¬ tions or access to certain dealers of the stock market. When ¬ approximately 2,900 shares of all listed in NASDAQ, meeting the convent ¬ dy requirements for financial parameters of the issuer and the activity is about ¬ Company, rendered in a special list - National market system ¬ mu in the NASDAQ (NASDAQ / NMS). Transactions on shares of that list carefully monitored by dealers and investors, so the details of their quotes are published in the financial press quotes separately from other securities of OTC turnover.
NASDAQ provides three levels of service. ¬ The first provided an opportunity to retail brokers and their customers to track the terminal, located in the very brokerage firm, or not far from it, the highest current price of the offer to purchase and the lowest current asking price for the sale. In some cases the asking prices for buying and selling - of two hundred ¬ ron each quote - can be provided by various dealers ¬ authors. The customer may not always be sure that his order will be executed at the displayed price.
The second and third levels show a firm quotes for all ¬ registered dealers of the system. However, the third level indicated ¬ The caller also changes in the quotes as the market price. Firms that do not set up bilateral to ¬ portation, but receive orders customers may prefer second-level services, which provides them with access to information on the best market prices. Some institutional investors ¬ tors, particularly insurance companies use the services of the second ¬ cerned level to accurately assess the value of its portfolio securities and to monitor the activity of dealers, such as finding out who is constantly offering the best market prices. Those who exhibited bilateral quotations must be a subscriber con ¬ ing the third level, as soon as this level allows dealers ¬ py to make or change the quotes that are displayed by the system.
NASDAQ system is divided into two parts: the issue in the conventional system and the emission in the NASDAQ National Market System (Na ¬ tional Market System - NMS). NMS, being the upper tier of NASDAQ, takes the most well-known and top-selling issue. At the time of its criteria for inclusion in the course bulletin was much ¬ nd more stringent than the usual system of NASDAQ. However, in 1990 the Board of Directors proposed to double the usual requirements for inclusion in the course bulletin NASDAQ, which would bring together the oc ¬ novnye criteria for the two parts of the system.
There are also some alternative rules CHANGES ¬ tion in the course bulletin, which apply to companies that do not meet these criteria, but the acting is not less than 3 years old, having larger assets and more shares outstanding in comparison with the above criteria.
Information reporting NMS similar reporting on emissions of shares that are traded on exchanges. These accounts shall be published in the press of business, and include: the highest and self ¬ mye low prices in the past 52 weeks, the symbols of companies in the NASDAQ, the dividend rate, the ratio of market price-earnings ratio of the volume, the highest and lowest prices at the close of trade and net changes during the day. In other words, all this information is that most investors get ¬ Institute for emissions, as quoted on the New York Stock Exchange or the American Stock Exchange, also legkodos ¬ avail able on emissions, quoted National Market System.
The volume of trading in the NASDAQ NMS system, and has long been ahead of sovo ¬ kupno trade on the American Stock Exchange and regional ¬ governmental exchanges. This market share is the third largest in the world, behind only New York and Tokyo stock exchanges.
An important tool in the American counter trading case ¬ RAT electronic recorders current transactions, combined in a nationwide network of Inter Market Trading System. Efforts to identify suspicious transactions previously carried out manually, now largely computerized. In electronic trading NASDAQ involved 50 control ¬ ditch, using 40 special electronic product designed to track suspicious transactions.
In the case of "no" automated methods of supervision con ¬ trolery NASDAQ conduct additional investigation, requesting ¬ Shivaya necessary information directly from the transaction counterparties ¬ stone. Every year they have to deal with many thousands of cases of establishing abuse. About 250 of them, a decision is to impose a fine or license revocation.
Transactions in options and futures on this index are carried out on the Chicago Mercantile Exchange.
Falling stock index leads to a drop in the national currency.
NASDAQ.SYSTEM
U.S. OTC market dealers are connected with the sellers and purchasers ¬ securities via the automated Institute ¬ formation about the quotes of the National Association of Securities Dealers NASDAQ. This system transmits the most recent courses of supply and demand to 5100 shares, selected from among the most active ¬ but sold over the counter. Facilitating the establishment of con ¬ cycles between sellers and buyers, NASDAQ has made tor ¬ merce on the OTC market continuously. To conclude the transaction ¬ ki securities not listed on a system of NASDAQ, ¬ lam buyers and sellers have to find each other on the reference edition ¬ tions or access to certain dealers of the stock market. When ¬ approximately 2,900 shares of all listed in NASDAQ, meeting the convent ¬ dy requirements for financial parameters of the issuer and the activity is about ¬ Company, rendered in a special list - National market system ¬ mu in the NASDAQ (NASDAQ / NMS). Transactions on shares of that list carefully monitored by dealers and investors, so the details of their quotes are published in the financial press quotes separately from other securities of OTC turnover.
NASDAQ provides three levels of service. ¬ The first provided an opportunity to retail brokers and their customers to track the terminal, located in the very brokerage firm, or not far from it, the highest current price of the offer to purchase and the lowest current asking price for the sale. In some cases the asking prices for buying and selling - of two hundred ¬ ron each quote - can be provided by various dealers ¬ authors. The customer may not always be sure that his order will be executed at the displayed price.
The second and third levels show a firm quotes for all ¬ registered dealers of the system. However, the third level indicated ¬ The caller also changes in the quotes as the market price. Firms that do not set up bilateral to ¬ portation, but receive orders customers may prefer second-level services, which provides them with access to information on the best market prices. Some institutional investors ¬ tors, particularly insurance companies use the services of the second ¬ cerned level to accurately assess the value of its portfolio securities and to monitor the activity of dealers, such as finding out who is constantly offering the best market prices. Those who exhibited bilateral quotations must be a subscriber con ¬ ing the third level, as soon as this level allows dealers ¬ py to make or change the quotes that are displayed by the system.
NASDAQ system is divided into two parts: the issue in the conventional system and the emission in the NASDAQ National Market System (Na ¬ tional Market System - NMS). NMS, being the upper tier of NASDAQ, takes the most well-known and top-selling issue. At the time of its criteria for inclusion in the course bulletin was much ¬ nd more stringent than the usual system of NASDAQ. However, in 1990 the Board of Directors proposed to double the usual requirements for inclusion in the course bulletin NASDAQ, which would bring together the oc ¬ novnye criteria for the two parts of the system.
There are also some alternative rules CHANGES ¬ tion in the course bulletin, which apply to companies that do not meet these criteria, but the acting is not less than 3 years old, having larger assets and more shares outstanding in comparison with the above criteria.
Information reporting NMS similar reporting on emissions of shares that are traded on exchanges. These accounts shall be published in the press of business, and include: the highest and self ¬ mye low prices in the past 52 weeks, the symbols of companies in the NASDAQ, the dividend rate, the ratio of market price-earnings ratio of the volume, the highest and lowest prices at the close of trade and net changes during the day. In other words, all this information is that most investors get ¬ Institute for emissions, as quoted on the New York Stock Exchange or the American Stock Exchange, also legkodos ¬ avail able on emissions, quoted National Market System.
The volume of trading in the NASDAQ NMS system, and has long been ahead of sovo ¬ kupno trade on the American Stock Exchange and regional ¬ governmental exchanges. This market share is the third largest in the world, behind only New York and Tokyo stock exchanges.
An important tool in the American counter trading case ¬ RAT electronic recorders current transactions, combined in a nationwide network of Inter Market Trading System. Efforts to identify suspicious transactions previously carried out manually, now largely computerized. In electronic trading NASDAQ involved 50 control ¬ ditch, using 40 special electronic product designed to track suspicious transactions.
In the case of "no" automated methods of supervision con ¬ trolery NASDAQ conduct additional investigation, requesting ¬ Shivaya necessary information directly from the transaction counterparties ¬ stone. Every year they have to deal with many thousands of cases of establishing abuse. About 250 of them, a decision is to impose a fine or license revocation.
Indexes of the American Stock Exchange (AMEX)
American Stock Exchange publishes two major indexes, which are calculated on an entirely different basis.The main market index of the American Stock Exchange (AMEX Major Market Index) is a simple average of the price movements of 20 leading industrial corporations. It was conceived by the American Stock Exchange as a kind of substitute for the Dow Jones industrial average. Although it is calculated and published by the American Stock Exchange, it consists of shares of corporations listed on the New York Stock Exchange. It is noteworthy that 15 of them are also components of the Dow Jones industrial average. Transactions in futures on this index are carried out on the Chicago Mercantile Exchange.
The index of the market value of the American Stock Exchange (AMEX Market Value Index) is calculated on the basis of a fundamentally different: it is an index weighted by the market value of all issued shares of those corporations that are included in it as a component. It was first published in September 1973. It includes as a component of more than 800 issues of shares representing securities of corporations of all major industry groups registered on the American Stock Exchange, including, in addition to common stock, American depositary receipts and subscription certificates. From a technical point of view it is unique due to the fact that in its calculation assumes the form of cash dividends paid by its member shares are reinvested and, on this basis, they are reflected in the index. Options on the index are traded on the American Stock Exchange.
The index of the market value of the American Stock Exchange (AMEX Market Value Index) is calculated on the basis of a fundamentally different: it is an index weighted by the market value of all issued shares of those corporations that are included in it as a component. It was first published in September 1973. It includes as a component of more than 800 issues of shares representing securities of corporations of all major industry groups registered on the American Stock Exchange, including, in addition to common stock, American depositary receipts and subscription certificates. From a technical point of view it is unique due to the fact that in its calculation assumes the form of cash dividends paid by its member shares are reinvested and, on this basis, they are reflected in the index. Options on the index are traded on the American Stock Exchange.
The index of the New York Stock Exchange (NYSE Index)
This index is a weighted index of the market value of the movement of share prices of all the corporations that have registered their shares on the New York Stock Exchange, that is, in fact, this figure represents the average price per share for all companies on the New York Stock Exchange, the weighted the market value of the shares of each corporation (with appropriate adjustments for factors stock splits, mergers and acquisitions).
Unlike the Dow, which is expressed in points, NYSE index is expressed in dollars. Transactions in options on this index are carried out on the most of the New York Stock Exchange. Transactions in futures contracts are carried out on the New York Futures Exchange, which is a division of the New York Stock Exchange.
Unlike the Dow, which is expressed in points, NYSE index is expressed in dollars. Transactions in options on this index are carried out on the most of the New York Stock Exchange. Transactions in futures contracts are carried out on the New York Futures Exchange, which is a division of the New York Stock Exchange.
FOREX FUNDAMENTAL ANALYSIS
The exchange rate impact factors reflecting the state of the economy of the country:
• Economic growth (gross domestic product, industrial production, etc.);
• The state of the balance of trade, the degree of dependence on external sources of raw materials
• Growth in the money supply in the domestic market
• The rate of inflation and inflation expectations
• The interest rate
• The solvency of the country and confidence in the national currency on the world market
• Speculation in the foreign exchange market
• The development of other sectors of the global financial market, such as the securities market, competing with the foreign exchange market.
Interest rates differential (difference procentnyh Rates)
JPI - 0.5% GBP - 6.00%
In view cennyh BUMAG:
T-bills (paper Treasuries)
USA - UK Bonds - Gilts
Germany - Bunds Japan - JGB
USA - Budget deficit negative
Japan - the budget deficit of positive
In Japan this razmeŝaet core assets in bonds USA around 60% to both Market.
Central Bank Rossii razmeŝaet approximately 80% MEDIUM FF rezervnyh also in bonds USA.
indexes
DJIA-USA Nikkey - 225 - Japan
FTSE - 100 - UK CAC - 40 - France
DAX - 30 - Hang Seng Germany - HK (Gong Kong)
The Dow Jones (DJI)
There are 4 of the Dow Jones.
The Dow Jones (The Dow Jones Industrial Average - DJIA) - a simple average of the movement of share prices of 30 largest industrial corporations. The Dow Jones is the oldest and most common among all indicators of the stock market. Its composition is not the same: its components may vary depending on the positions of the largest industrial corporations in the U.S. economy and the market, but in the present conditions, such cases are rare. In principle, it has to make up 15 to 20% of the market value of the shares quoted on the New York Stock Exchange. This index is calculated by adding up the prices of the included stocks and dividing this sum by a certain denominator (which is adjusted for stock splits and dividends in the form of shares representing more than 10% of the market value of the issue, as well as the replacement of components, and mergers and acquisitions). Dow Jones quoted in points. More recently, he appeared on futures contracts in Chicago.
Readymix Dow-Jones index (the Dow Jones Transportation Average - DJTA) - average component, harakterizuûŝij traffic prices of shares 20 transportnyh corporations (airlines, rail companies and avtodorožnyh).
Communal Dow-Jones index (the Dow Jones Utility Average - đưa) - Medium component motion Kursov shares of 15 companies, zanimaûŝihsâ gas - and Electricity supply.
Composite Index Dow-Jones (The Dow Jones Composite Average - DJCA) - component, sostavlâûŝijsâ the industrial base, transportation and kommunalʹnogo Indeksovo Dow-Jones.
The index of "Standard & pauerz" (S & P)
This index is published by an independent company, "Standard & pauerz." It is made in two versions - the shares of 500 corporations and 100 shares of corporations.
S & P - 500 is a market value weighted index of 500 stocks of corporations that are present in it in the following proportions: 400 industrial companies, 20 transportation, 40 utility and 40 financial companies. It includes mainly the shares of companies listed on the New York Stock Exchange, but there are also some stocks of corporations that are listed on the American Stock Exchange and over the counter in the back. The index represents about 80% of the market value of all issues listed on the New York Stock Exchange. This index is more complex compared to the Dow Jones, but it is also more accurate in view of the fact that there are a larger number of shares of corporations and the shares of each corporation are weighted by the value of all the shares in the hands of shareholders. Futures and options on it are sold on the Chicago Mercantile Exchange.
S & P - 100. The index is calculated on the same basis as the index for shares of 500 corporations, but is comprised of stocks of corporations for which there is a registered options on the Chicago Board Options Exchange. This is mainly industrial corporations.
Exchange Rates Definition
Exchange rate - is the price of the currency of one country expressed in the currency of another country, with sales transactions. Such a price can be established on the basis of supply and demand for a particular currency in the free market, or to be strictly regulated decision of the government or its main financial body, usually the central bank.
Types of exchange rates
Direct quotation - the number of national currency per unit of foreign.
In most countries, foreign currency exchange rates are expressed in national currency. This is the so-called system of direct quotations. For example, in Germany, the U.S. dollar ($) will be equated to a certain amount of DM (DM), and in New York, one German mark will be equal to a certain number of cents (or dollars if the course grade is quite high).
Reciprocal rate - the number of foreign currency per unit of domestic.
Cross Rates
This relationship between the two currencies, which stems from their course in relation to the rate of the third currency. In operations on the world market are often used cross-rate with the U.S. dollar, as the U.S. dollar is not only a major reserve currency, but the currency of the transaction in most foreign exchange transactions.
DEM / CHF, GBP / DEM
All calculations on cross-rates associated dollar, determined by dividing the
DEM / CHF = USD / CHF: USD / DEM
All calculations on cross rates associated with pound sterling, determined by multiplying the
GBP / DEM = GBP / USD USD / DEM
Spot rate
Price of the currency of one country expressed in the currency of another country, established at the time of the transaction, subject to exchange currency counterparty banks on the second business day following the date of the transaction. Spot rate reflects how highly regarded the national currency at the time of surgery outside the country.
FOREX (Foreign Exchange) - the international exchange. The abbreviation FX
USD - U.S. Dollar
Currencies (majors)
EUR = ECU - European Currency international-euro (ECU)
USD - (U.S. Dollar)
GBP = STG (sterling)
CHF = SWF (Swiss franc, swissie)
JPY = YEN (JPY)
The finance ministers of the European Union announced currency conversion rates of 11 countries in the new common currency - the euro.
Starting with 0.00 in the European time 1 January 1999 the euro became the official currency of 11 EU countries, although banknotes and coins in circulation will not appear until 2002.
United Kingdom, Sweden, Denmark and Greece did not participate in the conversion.
The ministers announced the following conversion rates:
DEM - 1.95583
French franc - 6.55957
Italian Lira - 1936.21
The Spanish peseta - 166.386
Portuguese escudo - 200.482
Finnish mark - 5.94573
Irish pound - 0.787564
Belgian / Luxembourg franc - 40.3399
Dutch guilder - 2.20371
Austrian schilling - 13.7603
USD / CHF = 1,7050 / 60
This means that a trader can buy dollars for Swiss francs at the exchange rate of 1.7060, while the dollar sold for Swiss francs at the exchange rate of 1.7050.
1.7050 - bid (bid); 1,7060 - the ask (ask).
Point (point) - this is the minimum price change (pips) - 1,7055 - 5 pips.
Spread (spread) - the difference between the purchase price and the selling price: 1.7060 - 1.7050 = 10 pts points (standard bank spread from 5 to 10 pts).
1,7060 - 1,70 - big figure (big figure).
Hedge (fence) - insurance against currency risks.
Types of exchange rates
Direct quotation - the number of national currency per unit of foreign.
In most countries, foreign currency exchange rates are expressed in national currency. This is the so-called system of direct quotations. For example, in Germany, the U.S. dollar ($) will be equated to a certain amount of DM (DM), and in New York, one German mark will be equal to a certain number of cents (or dollars if the course grade is quite high).
Reciprocal rate - the number of foreign currency per unit of domestic.
Cross Rates
This relationship between the two currencies, which stems from their course in relation to the rate of the third currency. In operations on the world market are often used cross-rate with the U.S. dollar, as the U.S. dollar is not only a major reserve currency, but the currency of the transaction in most foreign exchange transactions.
DEM / CHF, GBP / DEM
All calculations on cross-rates associated dollar, determined by dividing the
DEM / CHF = USD / CHF: USD / DEM
All calculations on cross rates associated with pound sterling, determined by multiplying the
GBP / DEM = GBP / USD USD / DEM
Spot rate
Price of the currency of one country expressed in the currency of another country, established at the time of the transaction, subject to exchange currency counterparty banks on the second business day following the date of the transaction. Spot rate reflects how highly regarded the national currency at the time of surgery outside the country.
FOREX (Foreign Exchange) - the international exchange. The abbreviation FX
USD - U.S. Dollar
Currencies (majors)
EUR = ECU - European Currency international-euro (ECU)
USD - (U.S. Dollar)
GBP = STG (sterling)
CHF = SWF (Swiss franc, swissie)
JPY = YEN (JPY)
The finance ministers of the European Union announced currency conversion rates of 11 countries in the new common currency - the euro.
Starting with 0.00 in the European time 1 January 1999 the euro became the official currency of 11 EU countries, although banknotes and coins in circulation will not appear until 2002.
United Kingdom, Sweden, Denmark and Greece did not participate in the conversion.
The ministers announced the following conversion rates:
DEM - 1.95583
French franc - 6.55957
Italian Lira - 1936.21
The Spanish peseta - 166.386
Portuguese escudo - 200.482
Finnish mark - 5.94573
Irish pound - 0.787564
Belgian / Luxembourg franc - 40.3399
Dutch guilder - 2.20371
Austrian schilling - 13.7603
USD / CHF = 1,7050 / 60
This means that a trader can buy dollars for Swiss francs at the exchange rate of 1.7060, while the dollar sold for Swiss francs at the exchange rate of 1.7050.
1.7050 - bid (bid); 1,7060 - the ask (ask).
Point (point) - this is the minimum price change (pips) - 1,7055 - 5 pips.
Spread (spread) - the difference between the purchase price and the selling price: 1.7060 - 1.7050 = 10 pts points (standard bank spread from 5 to 10 pts).
1,7060 - 1,70 - big figure (big figure).
Hedge (fence) - insurance against currency risks.
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