Forex Technique

FOREX

The Gold Exchange and the Bretton Woods Agreement

In 1967, a Chicago bank refused a college professor named Milton Friedman a loan in pound sterling because he had intended to use the funds to short the British currency.
Friedman, who had noticed that the pound was priced too high against the dollar, wanted to sell the currency and then after that the price of the currency declined, buy it back to repay the bank, pocketing So a quick profit. The bank’s refusal to grant the loan was due to the Bretton Woods Agreement, established twenty years earlier, which fixed national currencies against the dollar, and set the dollar at a rate of $ 35 per ounce of gold.

The Bretton Woods Agreement, established in 1944, aimed at installing international monetary stability by preventing money from fleeing across nations, and restricting speculation in currencies. Before the Convention, the gold exchange standard that prevailed between 1876 and World War I dominated the international economic system. Under the gold exchange, currencies gained a new phase of stability as they were backed by the gold price. It abolished the age-old practice used by kings and rulers of arbitrarily debasing money and triggering inflation.

But the gold exchange standard did not lack flaws. As an economy strengthened, it would import heavily from abroad until it ran its gold reserves required to back its money. As a result, the money supply would shrink, interest rates rose and economic activity slowed to the point of the recession. Ultimately, prices of goods had reached their lowest point, appearing attractive to other nations, who would rush into buying sprees that injected the economy with gold until it increased its money supply, drive down interest rates and recreate wealth into the economy. These boom-bust patterns prevailed throughout the gold standard until the outbreak of World War I interrupted trade flows and free movement of gold.

After the Wars, was held in Bretton Woods Agreement, in which participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar and a corresponding rate of gold as needed. Were prohibited from devaluing their currencies to countries in their trade advantage and were only allowed to do so for devaluations of less than 10%. In the decade of 50, the volume of the ever-expanding international trade led to massive movements of capital generated by post-war construction. That destabilized foreign exchange rates as setup in Bretton Woods.

The Agreement was finally abandoned in 1971, and the U.S. dollar would no longer be convertible into gold. By 1973, currencies of major industrialized nations floated more freely, controlled mainly by the forces of supply and demand which acted in the exchange market. The daily prices were set to a floating exchange rate, with an increase in volumes, speed and volatility of the same during the 70’s, giving rise to new financial instruments, market deregulation and trade liberalization .

In the 80’s, the movement of capital across borders accelerated with the advent of computers and technology, extending market continuum through the time zones of Asia, Europe and America. Transactions in foreign exchange rocketed from about $ 70 billion per day in the mid 80’s to over $ 1.5 trillion a day two decades later.

Advantages of forex on the purchase and sale of shares.
Investing in forex offers great advantages over buying and selling stocks and futures. Here are the advantages of the forex market:
Operates 24 hours a day
The Forex market is a continuous market available 24 hours a day, open on Sundays at 14:00 New York time until Friday at 16:00 New York time. By having the ability to operate during the hours of the U.S. market, Asia and Europe, operators have the advantage of reacting immediately to market news and determining their own hours of operation.
Greater liquidity
With a daily trading volume 50 times greater than the volume traded on the New York Stock Exchange, provided there are runners and “dealers” (agents) willing to buy or sell currencies in the forex markets. Exchange market liquidity, especially the market for major currencies, helps ensure price stability. Traders can almost always open or close a position at a fair market price. This represents a great advantage the currency market.
100:1 leverage on the forex market
The online forex market dealers offer a leverage of 100 to 1, which exceeds the typical 2:1 margin offered by brokers and the margin of 15:1 in the futures market. With 100:1 leverage, traders deposit a margin of $ 1000 for a position of $ 100.0000, or 1%.
Low transaction costs
It is much more efficient in operating costs based on the foreign exchange market in terms of fees and expenses in the forex trading.
Same potential for profit in bull and bear markets
In every open Forex position, an investor has a long position in one currency and short the other. A short position is one in which the trader sells currency before it will depreciate. In this case, the investor benefits from a decline in market price.
The ability to sell currencies without any restrictions is another distinct advantage over the stock market.

Basic Principles on the forex trading
All forex trading involves buying one currency and sell another simultaneously. Currency quotes are presented as rates, ie the value of a currency relative to another. Supply and relative demand for both currencies will determine the value of the exchange rate.
When a currency trader makes a transaction, you want the value of the purchased currency appreciates against the currency sold. Your ability to determine how to modify the exchange rate will determine your gain or loss in an operation. Give an example with a currency quote obtained by the system of buying and selling foreign exchange (forex).
Taking an example a bid price and the current demand for EUR / USD is 1.0126, meaning you can buy 1 euro for 1.0126 dollars.
Imagine that you think the euro is depreciating against the dollar. To execute the strategy, you buy Euros (simultaneously sold dollars) and then waits until the exchange rate to rise.
Then performs the transaction: 100.000 EUR (1 lot) and sell $ 101.260.

As you originally sold (paid) IS $ 101.260, his profit is $ 1100.
Total profit = U.S. $ 1100.00 USD

 

USD / JPY = 119.72
The motto that appears to the left of the slash (“/”) is called the base currency (in this example, the U.S. dollar) and the motto that appears to the right of the bar is known as its “partner” (in this example, the Japanese yen.) This means that 1 unit of base currency (ie dollar) worth 119.72 Japanese yen. If you want to buy, the exchange rate specifies how many units of currency counterparty will pay you to buy one unit of base currency. Given the example above, you must pay to purchase 119.72 Japanese yen 1 U.S. dollar. Now if you want to sell, the exchange rate specifies how many units you will receive currency counterparty to sell a base currency unit. In the example, you will receive 119.72 Japanese yen by selling a dollar.
Despite many currencies throughout the world, 85% of all daily transactions involve trading of a group called the major currency pairs (in English majors). Are currencies are the U.S. dollar, Japanese yen, the euro, British pound, Swiss franc, Canadian dollar and Australian dollar.
The four most traded currency pairs are:
· U.S. Dollar / Japanese Yen (USD / JPY)
· Euro / US dollar (EUR / USD)
· Free sterling / US dollar (GBP / USD)
· U.S. Dollar / Swiss Franc (USD / CHF)
· U.S. Dollar / Canadian Dollar (USD / CAD)
· Australian Dollar / U.S. Dollar (AUD / USD)

 

How To Make Money In Forex Trading ?

The Foreign Exchange market, also known as market “Forex”or “FX” market is the largest and most liquid financial world with a daily average turnover of approximately U.S. $ 6 trillion.

This high volume is advantageous from the standpoint of investors because transactions can be executed quickly and at low cost

To put it in a simple, Forex is the simultaneous buying of one currency and selling another. The world’s currencies are traded at floating rates and are always traded in pairs, for example EURO / USD or USD / JPY.

Content Of The Course

1. As Making A Trading Plan For Every Operator
It is important that all Forex market trader knows how to develop a trading plan to carry out their operations, this course will guide you to.

2.¿What is the ideal form of forex trading in December?
As a Forex trader you must know the times and how to operate during the dates of Christmas and New Year. In this article you will find this information and adjust your trading plan.

3.The Best Way To Recover After A Loss In The Forex Market
In this article you can get information on how to recover from a loss in the FX market. May be many factors that you do not take into account and thus to prevent future losses in its capital.

4.What Is The Swap In The Forex Market?
This article describes what the swap market FX so that people can handle when starting operations.

5.How to Know What Use Are There Many Signals Available
Many people do not know adequately or use of the indicators used inadequate for their needs by creating losses in his business, so you explain what is the best way to select it.

6.Investing in a Forex Managed Account
This article explains how to invest in a managed account Forex market through several steps and also report any scams you can find on the market.

7. What Is The Procedure To Initiate An Account With Real And how you can request their money in the account?
Start with your personal preparation before opening a real account must go through at least 3 months in a demo account. Many of these operators will have a question, what is the accurate and secure process to start an account with real capital. Later in the topic will explain this.

8. Functionality Heiken Ashi Japanese Gauge
Looking on the Fx, the trader displayed that there are a number of indicators for use just in time to run operations in the foreign exchange market, expressed these most popular and many are not, but that similarly may be of utility.

9. In that address the services of “signals” In The Forex Market
Searching the web, we can realize that there are countless companies that service signals. Today we’ll talk about it and that would be considered most important for success in forex trading.

10. Which Is The Right Way To Use The Forex Parabolic SAR
This article discusses how a forex trader should use the Parabolic SAR Technical Indicator and thus improve profits.

11.How to estimate the values of “pips” in the foreign exchange market?
It is then necessary to know the value of a pip at the time to start operations in the Forex market. That is why the formula set out to do.

12.Hours and Sessions More Recommended To Operate In The Forex Market
This time, we explain about the times and sessions to operate correctly the Forex market. The hours may affect operating results as an operator.

12.Considerations to be taken before starting operations in real account
This article is rated highly relevant, because many people around the world are motivated to perform operations on Forex, but often that intention or feeling can take you to lose all your capital.

13. How funcionana bots on the FX
You’ve probably heard that the foreign exchange market may have the chance to produce revenue and that is why this market has taken a long boom in recent years.

14. Four Tips To Invest In Forex by Raul Mercedes
It is not easy to invest in forex without having enough knowledge of the foreign exchange market and technical investment.

15. Appropriate use of diagonal lines of support and resistance in the forex market
You need to know to correctly use support and resistance lines in the forex market. The following article shows the correct way to do so.

16 Vs. Managed Accounts Managing Your Own Account
If you are thinking about starting in the exchange market, it is possible you might have many questions about what type of account can be opened or in plain words how to start your investment. For this reason you should know what is the disparity between the types of accounts.

17.How Make Money In Forex Brokers?
This article tries to explain, how is that forex brokers make money. This also implies a prior incestigacion the broker among other things.

18. History Ponzi Schemes In The Forex Market
Ponzi schemes are a type of fraud used in the Forex market. For many years, there have been many people who do not know, have fallen into the hands of unscrupulous scams.

19.Successive Forex Investment
Do you operate in the Forex market? Do you expect to make a high return on their investments through forex? Want to invest in succession? In this paper, we give you tips that ish auydarle successive forex investments.

20. What is the right way to operate the Intraday Forex
In the Forex market can generate extra income constant. We show how to perform correctly intraday.

21 What is the correct way of using the index Ichimoku Exchange Market?
Ichimoku indicator is an indicator used in forex trading data to analyze support and resistance that have the power of the trend and direction and finally to find possible points of beginning and ending at the moment of wanting to take action in the market.

22.How To Choose A Forex Broker? by Isabel Good Day
To operate in the Forex market, you need, above all, open an account with a recognized and respected firm. Next, here are five tips that can help you when you will choose your Forex Broker.

23.Can You Make Money With Forex Trading?
Now that they are failing stock markets, the cost of price decline and financial institutions are going up against the wall, people are looking for new ways to make money. That’s why people are questioning if they really can make money with Forex Trading.

24. Learn Forex – 7 Tips For Choosing the Best Forex Course
There are 7 tips which you must take into account in deciding which courses you must take Forex. Taking into account these seven great tips for choosing the best Forex courses.

* Want to earn a return higher than what you currently pay your bank for money?

* Would you like passive income on your investment?

* Do you want more time and money to enjoy with your family and do what you’ve always dreamed?

* And all without lifting a finger?

If you answered YES to any of these questions, then we can help.

Introducing the “Guide to Investing In Forex” where we will show real gains and show how you too can have them.

 

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