Forex trading also referred as global currency exchange or FX trading is a market that doesn’t have any physical existence. The term Forex implies foreign exchange. The stock traders gather at the New York Stock Exchange floor, and internet and telephones make up their market.
The big players in the market including national governments, the central banks along with commercial banks and multi-national firms, all engage in Forex trading regularly. The primary currency dealings of forex market involve the euro, the English pound sterling, the Japanese yen and the U.S dollar. The Swiss franc and the Australian dollars have gained popularity as well.
Forex trading is considerably simple since the whole currency trading procedure takes over very short span of time, say minutes. Buying $100,000 worth of Euros, require a deposit of $1,000. If the euro climbs up 1 percent vs. the U.S. dollar, you make $1,000 on your investment $1,000.If the euro plummets by 3 percent vs. the U.S. dollar you lose the $1,000 that you risked and you are liable for another $2,000 as well.
Are you a fresher in the investment market? Investments are undoubtedly pretty tricky for the beginners but the article here is a short account on some easy as well as low-risk investment options for a first timer.
Firstly, you can start off with stocks & bonds, the 2 most common investing options for the novices. Stocks are the equity investments while bonds are the debt investments. These are usually less risky, especially the bonds. Then, another good option would be the mutual funds. These provide with diversification and are highly flexible too.
Another easy investment option for the beginners is CD’s or the Certificates of Deposit. In this case, the investor is putting a fixed sum of money which you are guaranteed to get back after a specified time. It’s good to inform that the rate of interest is always higher in case of CDs as the investor is unable to withdraw the money till his CD has matured fully.
Do you wish to know about price action trading? Well, in simple words, price action business implies making business decisions on the prices alone the way these are printed on a chart. The process is sometimes termed as “trading naked” since the confusion and clutter of adding the indicators, silly lines, whistles and bells is not necessary here.
The price action trading is actually based on the explanation of one raw price list or chart. The charts too are easy and clean to see. It was first introduced in Japan in 1700 by the Nippon rice traders who formulated candlestick charts featuring price formats with the candlesticks. These trading strategies are tested and trialed and have proved to be useful over the years. Price action trading is a very stress free as well as a fun way to effective business and many professional and veteran traders would reveal that their maximum entry-exit decisions are determined by the analysis of plain price dynamics.
E-mini trading refers to the electronically traded or e-traded futures contract options on Chicago Mercantile Exchange a portion of usual futures contracts. The E-mini trading contracts are found in a broad selection indexes like S&P 500, Nasdaq 100, Russell 2000, S&P small and mid-cap indexes, MSCI, Nikkei etc. E-minis have lesser margin demands as well as trading costs.
The E-mini future contracts are bought with the margin demand of around 10-15% of contract value. The E-mini futures, usually, are traded more than 23 hours every day with the contract dates 4 times in a year. The Chicago Mercantile Exchange has remarked that E-mini trades are filled up almost at any time in the day.
E-mini trading is really advantageous for the traders since it does not suffer from the volatility issues and come with good intra-day volatility. Besides, E-mini trading offers volume data that enables effective trades using amateur/foreign indicators.
If you are planning for any sort of investment it’s necessary to mention that every investment carries a substantial risk. The risk levels might vary with investment types but it’s always there in some form or the other. Thus, you need to be aware of risk assessment strategies before investing.
Firstly, start off by jotting down your medium, monthly and near term cash requirements. Then, make a list of the resources and savings for investment. It’s great if you can make notes regarding your entire financial condition. This would help you in deciding whether you would be able to accept the possible risks your investment is going to bring in.
Then determine the cash amount you would be able to deposit monthly and also how much you can bear to lose. For example, if you’re planning for 300 USD deposit per month in your account for retirement, make sure you can run the entire month without any need of these 300 dollars.
Long term investments are those that are made for a span of more than 5 years. In this state of unstable economy and volatile markets, it’s always wiser to invest for future with long term investments. There are many ways by which you can go for the future investment plan.
One of them is investment in the market of real estates. The demand and price for the real estate spaces are hiking every day for both commercial and domestic buyers. It’s chiefly because of the increased demand for lands and its lesser availability.
One can also invest in the mutual funds and stocks. The other places of longer term investments are precious metals. However, investment here is a pretty tricky business and hence make sure to study and understand the respective trade tricks while investing. And yes don’t hesitate to take advice from veteran traders before investing if you are not aware of the market values and strategies.
Are you planning for mutual funds but is not aware when to sell them. Well, practically speaking there’s no particular answer on the time to sell the funds but we can point out certain situations as indicators of selling the mutual funds.
The prime moment is when you are not making money any more. You have to keep track on your fund’s performance so that you can make a comparison of the performance with fees. There are many free virtual portals as well as financial newspapers to help you in keeping track.
The next situation is when your fund is not living up to your investment expectations. You have to be clear about the investment objectives on the first hand and you have to revisit the investments every year to see whether it is meeting up the set objectives. Again, the trade experts have suggested that if the fund return is unable to beat the inflation rate, it’s time to sell the fund.
It’s always good to go for online mutual fund investment. The process is easy, convenient and open for 24/7. Besides, in virtual investment it’s very simple to change investment schemes without any hassle or complicated procedures. Also, the internet enables the investor to track her/his investment all round the clock, 365 days.
However, many people tend to be worried about investing in the mutual funds through online broker since there have many pertinent scams lately revealing huge losses on part of the investors. Yes, online investment would be a tad risky as you don’t get to connect with the online brokers live and there’s always the safety concerns regarding your account number and other credit info that you submit to the website.
Thus, it’s suggested to invest with a reputed site only. The online site must promise of high security for the customer accounts like the use of military grade encryption settings for customer accounts. Also, make sure that site has passed the security standards of esteemed internet security authorities.
Planning to try your hands with oil futures? Good since oil futures is a highly lucrative business but do make sure that it suits up with your business temperament as investing here is pretty risky as well. The article below discusses some pints on how to invest in oil futures.
Firstly, you have to open up your internet futures business account. The trading eligibility would be verified by brokerage agency on the basis of net worth, income, investment experience as well as the capacity to take plus endure the profit and loss risks. If the application gets approved, the trader would be needed to deposit a minimum balance to open the business account.
It’s advised that you start off after a good market research as it’s a highly risky field and call for a thorough knowledge plus technical analysis on the investment. And yes, the expert investors here always advise to go with entry & exit strategy given the volatile market nature of the oil futures.
What is Present Value? Well, the Present Value concept is obtained by adjusting a predicted future worth of any asset at predetermined the discount rate or rate of interest from a familiar future spot in the time which is backward to the asset’s value today. The P.V. analysis is an essential instrument for the investment professionals and is required everyday in their different trading decisions including the investing in the assets.
The Present Value notion allows the investors in calculating the predicted future worth of any asset or say financial equipment in present dollars via the process called discounting. Suppose you are asking “How much would be required to invest in at present if you’re planning to retire with 1 million USD in ten years with a known investment of 12%?” So, here it goes:
Future Value = PV (1+ interest) years
PV= FV 1/(one + interest) years
PV= 1 million USD 1/ (one +12) years
PV= 1 million USD one / (3.1058)
PV= 1 million x .321973
Thus, PV = 321,973 USD