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Igor
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Everything posted by Igor
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Fixed rates for the Non-Deliverable Swaps are based on the currency spot rates taken from the previous day. Multi-national transactions will require each country to enter into the contract using the commonly traded currency, and this allows emerging markets to enter into a greater number of transactions.
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Nonconvertible Currencies are created by government legislation that prevents the open exchange of the currency for foreign money. This can have a major effect on a country'sability to participate in global transactions, which can impact Trade Balance figures.
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The Nominal Effective Exchange Rate is meant to give markets a sense of the value of one currency against the most commonly traded currencies. These collections generally include the Euro, US Dollar, and Japanese Yen, among others.
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Noise Traders, are also refereed to as “idiot traders” or “dumb money.” This is because they tend to conduct simple research and buy into trending moves very late in the process and, as a result, tend to be unsuccessful over time.
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When a forex broker offers this type of arrangement to traders, they are completing their transactions using liquidity providers. Because these transactions are more direct, there is generally a smaller spread costs for these trades.
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Choice Markets are a very rare occurrence, as brokers will generally need to be paid for providing access to the trading markets. The Forex market is one of the markets closest to being a choice market, as spread prices are usually seen at a fraction of zero.
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Since currency pair often move is impulses of 5 or 10 , traders use the term Nickel to describe one of these smaller movements. This kind of terminology tends to be seen in short term trading situations as investors discuss intraday developments.
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The NFA Compliance Rule 2-43b is a way for market regulators to prevent certain positions to be held indefinately. In some cases, traders would only be willing to close winning positions but this law prevents this by requiring the first trade in the sequence to be closed first.
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News trading is generally accompanied by high volatility and short term time frames, as traders look to capitalize on news developments before they influence the market. This makes new strategies riskier than other methods and generally requires tight stop losses.
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The New Zealand Dollar is the official currency of New Zealand, given value by the region’s central bank. The Dollar can be broken down into 100 cents and is considered to be a Dollar-block currency. Traders investing in the NZD currency hold an optimistic view of the country’s macro economic fundamentals and the value and allocation of the countries natural resources. The NZD tends to track commodity prices because of the country's exporting of natural resources.
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Net Interest Rate Differentials can have a large impact on the strategy that traders will use on each currency pair. If for example, the Net Interest Rate Differentials large, the currency pair will likely be used in carry trade strategies.
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While it is possible for a Negative Carry Pair to make gains in a trade, it should be remembered that the longer the position is held, the more money is lost because of negative interest rates. In order to make gains in these trades, the exchange rate must move favorable and erase the cost of holding the trade.
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The NAB Business Confidence Index tends to produce little in the way of market volatility but on longer term perspectives, the information can be used to construct trading ideas. One of the most influential areas that business confidence can affect can be seen in labor market data.
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Mt. Gox is designed to allow traders to hold their funds in something that resembles an e-wallet, and to make currency exchanges at a low cost. Additional benefits of this type of savings includes protection against inflation and efficient transactionary elements.
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With the historically low interest rates seen in Japan, the nation's investors often chose to buy foreign currencies with higher interest rates through carry trades. This activity served to keep the Japanese Yen weak during times of economic stability (low volatility).
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Moving Averages are usually seen in technical price analysis and can be seen on a number of different time frames. Generally, the most commonly used moving averages are the 10 Day, 21 Day, 100 Day and 200 Day Moving Averages
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For example, of the public has possession of 500 million Dollars and the central bank has obsession of 2 billion dollars, the Monetary Base of that country would be 2.5 billion Dollars. The Monetary Base is used to determine the economic spending strength of a country.
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Mirror Trading can be helpful to new traders in a number of ways. This includes limiting your downside risk by siding with the strategies of a successful trader but it also allows new traders to see how successful traders will act under a wide variety of market conditions.
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Mini Accounts are generally recommended for new traders with limited risk capital to invest. These accounts allow traders to use medium trading sizes so that strategies can be tested before larger amounts of money are invested.
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The trading phrase Mine And Yours is a good way of understanding what is actually happening when trading investments are placed. Buying something is the same as taking possession of it, while selling is equivalent to giving that item away.
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Micro-Lots allow traders to limit their risk levels by using very small trade sizes without excessive amounts of leverage. Since these trades obey live market conditions there is no difference between these trades and larger position sizes, and this allows new traders to test developing strategies.
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Micro Accounts are generally recommended for new traders with limited risk capital to invest. These accounts allow traders to use small trading sizes so that strategies can be tested before large amounts of money are invested.
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While the MetaTrader 4 (MT4) trading station appears to be very basic at first glance, the station is one of the most easily customizable software applications that are currently available. The MetaTrader 4 (MT4)can be used be traders of all styles and methods and is freely available from most forex brokers.
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In today's markets, many brokers are offering higher levels of Maximum Leverage, with some as high as 500:1. Maxing out trading leverage can be a risky prospect, however, as losses can accumulate very quickly.
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Market Sentiment can change at any given time but is usually based on a major news event or economic release. Market Sentiment can be difficult to identify in some cases, but it can be seen in the general price trends that are seen over a given time period.
