Monday, March 23, 2009
The Basics of Forex
Introduction to Fundamental Analysis: Forex
Forex traders almost always rely on analysis to make plan their trading strategies. There are two basic types of Forex analysis - technical and fundamental. This article will look at fundamental analysis and how it used in Forex trading.
Fundamental analysis is often used to get an overview of currency movements and to provide a broad picture of economic conditions affecting a specific currency. Most traders rely on technical analysis for plotting entry and exit points into the market and supplement their findings with fundamental analysis.
Currency prices on the Forex are affected by the forces of supply and demand, which in turn are affected by economic conditions. The two most important economic factors affecting supply and demand are interest rates and the strength of the economy. The strength of the economy is affected by the Gross Domestic Product (GDP), foreign investment and trade balance.
Discover an Effective Forex Trading System
Online Forex Trading Advice
Forex Trading Software
Saturday, March 21, 2009
Forex Trading
Forex trading is said to be the highest risk with highest return investment (or speculation game to be more accurate) in the financial market. The amount traded in the Forex market is much larger than any stock market or even combining few stock markets. Forex trading is simply a world wide trading market running 24 hours from Monday to Friday.
Everyday, there are new Forex traders entering into trading Forex. Some of them don’t even fully understand how Forex is traded but have already trading Forex. They are not idiot who want to burn their hard earned money, it’s just because Forex market is simply too lucrative market to enter with extreme high return. Any Forex traders can easily make a double return just in few minutes time trading Forex.
Forex trading is the trading of buying or selling certain currency. For example, buying US Dollar, then selling it later at a higher price to gain profit. Forex traders may also first sell US Dollar and later on buy it back at a lower price with the same gaining profit. It’s simple strategy of selling price minus buying price to make profit. In Forex trading, we just treat currency as a good, buy it and sell it.
Foreign Exchange
The International Monetary Fund defined Forex as the international creditor's rights which a country has, no matter this kind of creditor's rights are express by the foreign currency or expressed by the standard currency.
Exchange RateExchange rate, also known as the exchange price, it refers by a country currency being express by another country currency, or it is also the price ratio between both countries currency, generally it is being expressed by using the price proportion of both countries. For instance: USD/JPY=105.40, is being expressed a US dollar equal to 105.40 Japanese Yen, US dollar is also known as the unit currency, the Japanese Yen is known as the price currency.
In the foreign exchange market, the exchange rate is demonstrated by five numerals, for example:
Euro/US dollar: EUR/USD 1.3325
US dollar/Japanese Yen: USD/JPY 104.95
Pound/US dollar: GBP/USD 1.9337
US dollar/Swiss Franc: USD/CHF 1.2303
The exchange rate smallest change unit is, namely a final one-figure number digital change, is called an exchange rate basic point (Pip), abbreviation exchange rate spot, for example:
Euro EUR 0.0001
Japanese Yen JPY 0.01
Pound GBP 0.0001
Swiss Franc CHF 0.0001
Foreign Exchange (Forex) Market
Trade and investmentImport and export business, people pays one kind of currency when doing business, but when earns another kind of currency when receive the commodity. This means that, when settling account, business people will pay and receive different currencies. Therefore, they must convert the currencies that they received into the currencies that they could buy commodities. With this similar, when buying a foreign property a company must use the concerned country's currency to make payment, therefore, it needs to convert the domestic currency is concerned country's currency.
Speculation Currencies exchange rates could fluctuate according to the demand and supply between two currencies. A Forex trader buys up one kind of currency in an exchange rate, but up casts this currency in another more advantageous exchange rate, he may gain. Speculation has occupied most of the Forex market.
Hedging Due to the fluctuation between two currencies, those companies who owns foreign asset (for example factory), when these companies convert these properties into cost country currencies, there consist of certain risks. When the value of a foreign asset which is estimated based on foreign currencies remained unchanged, if the exchange rate changes, when converting this property value according to the domestic currency, there could be profit and loss. The company may eliminate such hidden risk through hedging. This carries out a foreign currency trading, its transaction result just counterbalances the foreign currency property profit and loss which produces by the exchange rate change.
Forex Market Development The history of the Forex market as an international capital speculation market is much shorter compared the stock, the gold, the stock, the interest market, but it is developing in an astonishing speed. Today, the foreign exchange market daily trading volume has amounted to 150 billion US dollars, it’s scale has gone far beyond the stock, the stock and other finance commodity markets, it has became the world's most biggest sole finance market and the also the speculation market. Since the birth of the foreign exchange market, the fluctuation of the exchange rate of the Forex market is becoming bigger. In September 1985, 1 US dollar exchanged 220 Japanese Yen, but in May 1986, 1 US dollar only could exchange 160 Japanese Yen, in 8 months, the Japanese Yen has revalued 27%. In recent years, the foreign exchange market wave amplitude has been bigger, on September 8, 1992, 1 pound exchanged 2.0100 US dollars, on November 10, 1 pound exchanged 1.5080 US dollars, in the short two months, the pound exchanged US dollar exchange rate to fall more than 5,000, depreciated 25%. Not only that, presently, everyday the fluctuation of the exchange rate of the Forex market enlarges unceasingly, within a day the rise and drop 2% to 3% is commonly seen. On September 16, 1992, the pound exchanged US dollar from 1.8755 to fall to 1.7850, the pound on first lowers 5%.
Due to the large fluctuation of the Forex market, it has created more opportunities for the investor, attracted more and more investors to join this ranks.
Characteristics of Forex Market
1st, It consists market but no trading field The finance industry in the western countries consist two sets of systems, namely the centralism business central operation and there is no fixed place for such business network. Stock trading is being traded through stock exchange. Like the New York Stock Exchange, the London stock market, the Tokyo stock market, respectively is American, English, the Japanese stock main transaction place, it is a centralism business financial commodity, its quoted price, the transaction time and hand over to the procedure all consist of unification the stipulation, and has established the same business association, it has formulated the same business rules. The investor could buy and sells the commodity through the broker company, this is known as "consist of trading market and trading field".
But foreign exchange business is done without any unification operation market and business network, it has no centralism unified place like the stock transaction. But, the foreign currency trading network actually is globally, and it has formed a organization which has no formal organization, the market is relied through an approval way and the advanced information system, Forex traders do not consist any membership qualification for any organization, but must obtain colleague’s trust and approval. This kind of Forex market which has no trading field is known as "consist of market but no trading field". Each day, the trading volume in the global Forex market involves billions of U.S dollars, the so huge large amount fund, is being control under both the non-centralism place and non central governance system, plus it is settle based on non-government governance.
2nd, Circulation work Due to the different geographical position of the various financial centre, the Asian market, the European market, the Americas market because of the time difference relations, it has become an entire day 24 hour continued operation whole world foreign exchange market.
Early morning 0830 (New York time) New York market opens, 0930 Chicago market opens, 1830 Sydney opens, 1930 Tokyo opens, 2030 Hong Kong, Singapore open, before dawn 1430 Frankfurt opens, 1530 o'clock London market opens. So 24 hours uninterrupted movements, the foreign exchange market becomes a day and night market, only on Saturday, Sunday as well as the various countries' significant holiday, the foreign exchange market only then can close.
This kind of continued operation, provided no time and spatial barrier ideal outlet for investors, the Forex trader may seek the best opportunity to carry on the transaction. For instance, Forex trader buys up the Japanese Yen in the morning at the New York market, in the evening Hong Kong market opens the Japanese Yen rises, the Forex trader sells in the Hong Kong market, no matter Forex trader in where, he all may participate in any market, any time business. Therefore, the foreign exchange market may say is does not have the time and the spatial barrier market.
3rd, Zero and Game In the stock market, the rise or the drop of stock market could influence the value of the stock whether to rise or drop, for example the Japanese new date iron stock price falls from 800 Japanese Yen to 400 Japanese Yen, the value of this stock has been reduced to half. However, in the foreign exchange market, the value of a stock and a currency is being calculated differently, this is because the exchange rate is refers to the exchange ratio both countries currency, the exchange rate change will influence one kind of monetary value to reduce and at the same time another kind of monetary value increase. For instance in 22 years ago, 1 US dollar exchanges 360 Japanese Yen, at present, 1 US dollar exchanges 110 Japanese Yen, this explains the Japanese Yen currency value rise, but US dollar currency value drops, in the end the value will not reduce or increase. Therefore, some people described the foreign currency trading is "zero and the game", exactly said is the wealth shift.
In recent years, investment foreign exchange market fund has continuously increased, the exchange rate fluctuation expands day by day, urges the wealth shift to be larger, the daily trading volume of the global foreign exchange involves 150 billion US dollars, the rise or falls 1%, means that the 150 billion funds has been shifted. Although the foreign exchange rate change is very big, but, any kind of currency will not become waste paper, even if some kind of currency unceasingly falls, however, but generally it represents certain value, only if such currency has been abolished.
Forex Development History
In 1967, a Chicago bank rejected to provide pound loan to a professor named Milton Friedman, because his purposed was to use this fund to sell short the British pound. Mr. Friedman realized excessively that the price ratio from the British pound to US dollar at that time was high, he wanted first to sell the British pound, after the British pound fell he buys back the British pound to repay the bank again. This family bank rejects the loan offer based on the "Bretton woods Agreement" which was established 20 years ago. This agreement has fixed the various countries' currency to US dollar exchange rate, and the price ratio between the U.S dollar and the gold is also fixed to 35 US dollars to each ounce of gold.
The Bretton Woods Agreement was signed in 1944, the purposed was to prevent the currency to escape between countries, and also to limit the international speculation, thus to stabilize the international currency. Before this agreement was signed, the gold remittance standard system which was widely used since 1876 - was leading the international economy system until the First World War. In the gold remittance system, the currency was at the stable level under the support of the gold price. The gold remittance system has abolished the old time king and the ruler which depreciates the currency value unlawfully, which will lead to inflation.
But, the gold remittance standard system is certainly imperfect. Along with a country economic potentiality enhancement, it can import massive products from overseas, until it exhausts the gold reserve of certain country. It resulted the supply of the currency reduces, the interest rate raises, the economic activity will start to decline until it reaches the recession limit. Finally, the commodity price falls to the valley, gradually attracts other countries to stream in, massively rushes to purchase this country commodity. This will pour gold into this country, this will increase this country currency supplies quantity, and it will reduce the interest rate, and will create the wealth. This is so called the "the prosperity - decline” pattern and is the circulation of the gold remittance standard system, until the trade circulation and the gold freedom was broken by the First World War.
After several catastrophes wars, the Bretton Woods agreement has appeared. The countries which signed the treaty agreed to maintain the domestic currency to US dollar exchange rate, as well as the necessity of the corresponding ratio of the gold, and only allow a small fluctuation. Countries are prohibited to depreciate the currency value for the gain trade benefit, only allows the country to depreciate not more then 10%. Enters the 50's, the continuous growth of the international trade causes the fund large-scale shift which produces because of the postwar reconstruction, this causes Bretton Woods system which establishes the foreign exchange rate to lose stability.This agreement was finally abolished in 1971, US dollar no longer could convert to gold. Until 1973, each major industrialized nation currency exchange rate fluctuation has been more freely, mainly regulates by the foreign exchange market through the currency supplies and demand quantity. The business volume, the transaction speed as well as the price variability, have achieved a comprehensive growth in the 1970's, come along with the emerge of price ratio fluctuation, the brand-new financial tool, then only the market liberalization and the trade liberalization could be achieved.
In the 1980s, along with the published of the computer and correlation technology, the international capital has flow rapidly, and strongly related the Asia, Europe and America market. Foreign exchange business volume from 80's rises daily from 70 billion US dollars to 150 billion US dollars after 20 years.European market inflationOne of the reasons why the foreign exchange developed rapidly was the rapid development of the Euro dollar market. In a Euro dollar market, US dollar is stored beyond the border of America banks. Similarly, the European market is refers to property depositing outside the currency rightful owner country market. A Euro dollar market was formed at first in the 50's, at that time Russia deposited its petroleum income beyond the US border, avoid being freeze by the US government. This has formed a large offshore US dollar national treasury which is beyond the control of the US government. The American government has formulated a law to prohibited US dollar from lending money for the foreigner. Because the degree of freedom of the Euro dollar market is bigger and the rate of return is bigger, therefore it has large attraction. Starting from the 80's, the American company starts to borrow loan from the offshore market, they discovered that the European market is a wealth center which consists of large amount of floating capital which could provide short-term loan.
London once was (until now still is) one of the main offshore market. In the 80's, the Bank of England in order to maintain its global finance industry center dominant position, using US dollar as England pound substitution to make loan, thus to become a Euro dollar market center. London's convenient geographical position (is situated between Asian and Americas market) also helps to maintain the European market as the dominant position.
Famous Forex Quotes
“If you get in on Jones’ tip; get out on Jones’ tip”. If you are riding another person’s idea, ride it all the way.
Run early or not at all. Don't be an eleven o'clock bull or a five o'clock bear.
Woodrow Wilson said, "a governments first priority is to organize the common interest against special interests". Successful traders seek out market opportunities capitalizing on the reality that government's first priority is rarely achieved.
People who buy headlines eventually end up selling newspapers.
If you do not know who you are, the market is an expensive place to find out.
Never give advice-the smart don't need it and the stupid don't heed it.
Disregard all prognostications. In the world of money, which is a world shaped by human behavior, nobody has the foggiest notion of what will happen in the future. Mark that word-nobody! Thus the successful trader bases no moves on what supposedly will happen but reacts instead to what does happen.
Worry is not a sickness but a sign of health. If you are not worried, you are not risking enough.
Except in unusual circumstances, get in the habit of taking your profit too soon. Don't torment yourself if a trade continues winning without you. Chances are it won't continue long. If it does console yourself by thinking of all the times when liquidating early preserved gains you would otherwise have lost.
When the ship starts to sink, don't pray-jump!
Life never happens in a straight line. Any adult knows this. But we can too easily be hypnotized into forgetting it when contemplating a chart. Beware of the chartist's illusion.
Optimism means expecting the best, but confidence means knowing how you will handle the worst. Never make a move if you are merely optimistic.
Whatever you do, whether you bet with the herd or against, think it through independently first.
Repeatedly reevaluate your open positions. Keep asking yourself: would I put my money into this if it were presented to me for the first time today? Is this trade progressing toward the ending position I envisioned?
It is a safe bet that the money lost by (short term) speculation is small compared with the gigantic sums lost by those who let their investments "ride". Long term investors are the biggest gamblers as after they make a trade they often times stay with it and end up losing it all. The intelligent trader will . By acting promptly-hold losses to a minimum.
As a rule of thumb good trend lines should touch at least three previous highs or lows. The more points the line catches, the better the line.
Volume and open interest are as important to the technician as price.
The clearest and easiest way to determine a trend is from previous highs and lows. Higher highs and higher lows mark an uptrend, lower highs and lower lows mark a downtrend.
Don't sell a quiet market after a fall because a low volume sell-off is actually a very bullish situation.
Prices are made in the minds of men, not in the soybean field: fear and greed can temporarily drive prices far beyond their so called real value.
When the market breaks through a weekly or monthly high, it is a buy signal. When it breaks through the previous weekly or monthly low, it is a sell signal.
Every sunken ship has a chart.
Take a trading break. A break will give you a detached view of the market and a fresh look at yourself and the way you want to trade for the next several weeks.
Assimilate into your very bones a set of trading rules that works for you.
The final phase in a bull move is an accelerated runaway near the top. In this phase, the market always makes you believe that you have underestimated the potential bull market. The temptation to continue pyramiding your position is strong as profits have now swelled to the point that you believe your account can stand any setback. It is imperative at this juncture to take profits on your pyramids and reduce the position back to base levels. The base position is then liquidated when it becomes apparent that the move has ended
What Is The Difference Forex and Futures?
The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required, the Forex trading system will automatically settle your position, this means even if a Forex trader suffered losses, moreover if the market is suffering from a disaster fluctuation, your loss could not surpass your account amount. In order to understand the advantages, please apply for the demo account to carry on the complete zero risk.
A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world. At present the trading volume in the Forex market is 140 billion Dollars, such big market will completely digest your transaction cash.
A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open, such linkage market enable you to do 24 hours transactions, also provide flexibility for Forex trader to do transaction.
Forex V/S Stock
The Forex market has a lot of advantages compare to stock market:
A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.
Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.
Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.
If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.
In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.
Characteristics of Forex Market
1st, It consists market but no trading field The finance industry in the western countries consist two sets of systems, namely the centralism business central operation and there is no fixed place for such business network. Stock trading is being traded through stock exchange. Like the New York Stock Exchange, the London stock market, the Tokyo stock market, respectively is American, English, the Japanese stock main transaction place, it is a centralism business financial commodity, its quoted price, the transaction time and hand over to the procedure all consist of unification the stipulation, and has established the same business association, it has formulated the same business rules. The investor could buy and sells the commodity through the broker company, this is known as "consist of trading market and trading field".
But foreign exchange business is done without any unification operation market and business network, it has no centralism unified place like the stock transaction. But, the foreign currency trading network actually is globally, and it has formed a organization which has no formal organization, the market is relied through an approval way and the advanced information system, Forex traders do not consist any membership qualification for any organization, but must obtain colleague’s trust and approval. This kind of Forex market which has no trading field is known as "consist of market but no trading field". Each day, the trading volume in the global Forex market involves billions of U.S dollars, the so huge large amount fund, is being control under both the non-centralism place and non central governance system, plus it is settle based on non-government governance.
2nd, Circulation work Due to the different geographical position of the various financial centre, the Asian market, the European market, the Americas market because of the time difference relations, it has become an entire day 24 hour continued operation whole world foreign exchange market.
Early morning 0830 (New York time) New York market opens, 0930 Chicago market opens, 1830 Sydney opens, 1930 Tokyo opens, 2030 Hong Kong, Singapore open, before dawn 1430 Frankfurt opens, 1530 o'clock London market opens. So 24 hours uninterrupted movements, the foreign exchange market becomes a day and night market, only on Saturday, Sunday as well as the various countries' significant holiday, the foreign exchange market only then can close.
This kind of continued operation, provided no time and spatial barrier ideal outlet for investors, the Forex trader may seek the best opportunity to carry on the transaction. For instance, Forex trader buys up the Japanese Yen in the morning at the New York market, in the evening Hong Kong market opens the Japanese Yen rises, the Forex trader sells in the Hong Kong market, no matter Forex trader in where, he all may participate in any market, any time business. Therefore, the foreign exchange market may say is does not have the time and the spatial barrier market.
3rd, Zero and Game In the stock market, the rise or the drop of stock market could influence the value of the stock whether to rise or drop, for example the Japanese new date iron stock price falls from 800 Japanese Yen to 400 Japanese Yen, the value of this stock has been reduced to half. However, in the foreign exchange market, the value of a stock and a currency is being calculated differently, this is because the exchange rate is refers to the exchange ratio both countries currency, the exchange rate change will influence one kind of monetary value to reduce and at the same time another kind of monetary value increase. For instance in 22 years ago, 1 US dollar exchanges 360 Japanese Yen, at present, 1 US dollar exchanges 110 Japanese Yen, this explains the Japanese Yen currency value rise, but US dollar currency value drops, in the end the value will not reduce or increase. Therefore, some people described the foreign currency trading is "zero and the game", exactly said is the wealth shift.
In recent years, investment foreign exchange market fund has continuously increased, the exchange rate fluctuation expands day by day, urges the wealth shift to be larger, the daily trading volume of the global foreign exchange involves 150 billion US dollars, the rise or falls 1%, means that the 150 billion funds has been shifted. Although the foreign exchange rate change is very big, but, any kind of currency will not become waste paper, even if some kind of currency unceasingly falls, however, but generally it represents certain value, only if such currency has been abolished.
Foreign Exchange (Forex) Market
Trade and investmentImport and export business, people pays one kind of currency when doing business, but when earns another kind of currency when receive the commodity. This means that, when settling account, business people will pay and receive different currencies. Therefore, they must convert the currencies that they received into the currencies that they could buy commodities. With this similar, when buying a foreign property a company must use the concerned country's currency to make payment, therefore, it needs to convert the domestic currency is concerned country's currency.
Speculation Currencies exchange rates could fluctuate according to the demand and supply between two currencies. A Forex trader buys up one kind of currency in an exchange rate, but up casts this currency in another more advantageous exchange rate, he may gain. Speculation has occupied most of the Forex market.
Hedging Due to the fluctuation between two currencies, those companies who owns foreign asset (for example factory), when these companies convert these properties into cost country currencies, there consist of certain risks. When the value of a foreign asset which is estimated based on foreign currencies remained unchanged, if the exchange rate changes, when converting this property value according to the domestic currency, there could be profit and loss. The company may eliminate such hidden risk through hedging. This carries out a foreign currency trading, its transaction result just counterbalances the foreign currency property profit and loss which produces by the exchange rate change.
Forex Market Development The history of the Forex market as an international capital speculation market is much shorter compared the stock, the gold, the stock, the interest market, but it is developing in an astonishing speed. Today, the foreign exchange market daily trading volume has amounted to 150 billion US dollars, it’s scale has gone far beyond the stock, the stock and other finance commodity markets, it has became the world's most biggest sole finance market and the also the speculation market. Since the birth of the foreign exchange market, the fluctuation of the exchange rate of the Forex market is becoming bigger. In September 1985, 1 US dollar exchanged 220 Japanese Yen, but in May 1986, 1 US dollar only could exchange 160 Japanese Yen, in 8 months, the Japanese Yen has revalued 27%. In recent years, the foreign exchange market wave amplitude has been bigger, on September 8, 1992, 1 pound exchanged 2.0100 US dollars, on November 10, 1 pound exchanged 1.5080 US dollars, in the short two months, the pound exchanged US dollar exchange rate to fall more than 5,000, depreciated 25%. Not only that, presently, everyday the fluctuation of the exchange rate of the Forex market enlarges unceasingly, within a day the rise and drop 2% to 3% is commonly seen. On September 16, 1992, the pound exchanged US dollar from 1.8755 to fall to 1.7850, the pound on first lowers 5%.
Due to the large fluctuation of the Forex market, it has created more opportunities for the investor, attracted more and more investors to join this ranks.
Foreign Margin Markets
Besides the fund enlargement, another attraction of the Forex margin trading method is that it can be traded in both ways, you can make profit by buying the currency when the currency rise (makes many), or to sell a currency when the currency is dropping to make profit (short-selling), thus does not need to be restricted by the restriction so-called bear market is unable to make money.
Making Profit in the Foreign Exchange Market
The currency fluctuate continuously due to reasons such as political, economical reasons, sometimes the changes could be extremely great, therefore, the Forex traders also can have the opportunity in among which makes a profit. For example, the Japanese Yen daily fluctuation is probably between 0.7% to 1.5%, Forex traders may make profit through buying and selling. All trading could be completed in a short time, the trading strategy could be carry up according to the market conditions, it is extremely flexible, even if the direction looks wrong, the lost could be stop immediately, the lost could reduce but profit potential is still great. Therefore, the Foreign Exchange margin trading is the most flexible and the most reliable investment method.Foreign Exchange Margin Trading elementary knowledge
Currency name
Commonly used currency code
Singapore dollar Thai Bath Swedish krona Danish Krone Norwegian krone Spanish peseta German Mark US dollar Euro Japanese Yen Pound Swiss franc Australian dollar New Zealand Yuan Canadian dollar Hong Kong dollar French franc Italian lira Belgian franc
SGD THB SEK DKK NOK ESP DEM USD EUR JPY GBP CHF AUD NZD CAD HKD FRF ITL BEF
Introduction to Foreign Exchange Markets
In the early days, the system of currency exchange is supported solely by the gold amount held in the vault of a country. However, this system is no longer appropriate now due to inflation and hence, the value of one’s currency nowadays is determined through the market forces alone. In order to determine the value of a currency’s exchange rate, two main types of system is used which is floating currency and pegged currency.
For floating exchange rate, its value is determined by the supply and demand of the global market where the supply and demand is bound by all these factors such as foreign investment, inflation and ratios of import and export. Normally, this system is adopted by most of the advance countries like for example UK, US and Canada. All of these countries have a similarity where their market is well developed and stable in economic terms. These countries choose to practice this system due to the reason where floating exchange rate is proven to be much more efficient compared to the pegged exchange rate. The reason behind this is because for floating exchange rate, the market itself will re-adjust the exchange rate real-time in order to portray the actual inflation and other economic forces. However, every system has its own flaw and so does the floating exchange rate system. For instance, if a country suffers from economic instability due to various reasons such as political issues, a floating exchange rate system will certainly discourage investment due to the high risk of suffering from inflationary disaster or sudden slump in exchange rate.
Another form of exchange rate is known as pegged exchange rate. This is a system where the value of the exchange rate is fixed by the government of a country and not the supply and demand of the market. This system is called pegged exchange rate because the value of a country’s currency is fixed to another country’s currency. As a result, the value of the pegged currency will not fluctuate unlike the floating currency. The working principle behind this system is slightly complicated where the government of a country will fixed the exchange rate of their currency and when there is a demand for a certain currency resulting a rise in the exchange rate, the government will have to release enough of that currency into the market in order to meet that demand. However, there is a fatal flaw in this system where if the pegged exchange rate is not controlled properly, panics may arise within the country and as a result of that, people will be rushing to exchange their money into a more stable currency. When that happens, the sudden overflow of that country’s currency into the market will decrease the value of their exchange rate and in the end, their currency will be worthless. Due to this reason, only those under-developed or developing countries will practice this method as a form to control the inflation rate.
However, the truth is, most of the countries do not fully practice the floating exchange rate or the pegged exchange rate method in reality. Instead, they use a hybrid system known as floating peg. Floating peg is the combination of the two main systems where one country will normally fixed their exchange rate to the US Dollars and after that, they will constantly review their peg rate in order to stay in line with the actual market value.
The Foreign exchange market, or commonly known as FOREX, is the largest and most prolific financial market because each day, more than 1 trillion worth of currency exchange takes place between investors, speculators and countries. From this, we can deduce that the actual mechanism behind the world of foreign exchange is far more complicated than what we may already know, and that, the information mentioned earlier is just the tip of an iceberg.
Friday, March 20, 2009
Thursday, March 19, 2009
Solid-State Drives and Caching
Intel® High-Performance SATA Solid-State Drives
Intel® X25-E Extreme SATA Solid-State Drive
Extreme performance and reliability for servers, storage and workstations.
Intel® X25-M and X18-M Mainstream SATA Solid-State Drives
High-performance storage for notebook and desktop PCs.
Intel® Z-P230 PATA Solid-State Drive
Flexible, cost-effective and low-power complete storage solution for value mobile and desktop systems such as netbooks and nettops.
Intel® Z-P140 PATA Solid-State Drive
Ultra-small, low-power storage solution with the right features and performance for mobile Internet devices, digital entertainment and embedded products.
Intel® Turbo Memory with User Pinning
Caching solution to improve application performance on desktop and laptop PC platforms.
In-Vehicle Infotainment
So, enjoy the ride! Along with a robust and interoperable development environment, Intel's broad third-party ecosystem, including members of the Intel® Embedded and Communications Alliance, supports you with multiple levels of integration, supply-chain flexibility, a vast selection of high-quality products, economies of scale, and extensive R&D investments.
Medical Embedded Computing Solutions
Intel helps you deliver innovative new solutions to address growing complexity in the field of medicine. For example, ultra-low power Intel processors are enabling ever-smaller yet highly intricate devices that run for long periods on battery power alone. And these smaller, high-performance chips deliver graphics capabilities that rival high-end imaging, enabling you to build solutions that are portable for use in the field. Intel's remote management technology is enabling remote monitoring solutions to be deployed with assurance and ease. Our high performance processors also support 3D and 4D imaging as well as patient monitoring systems that can track multiple parameters and report results in real time. And our multi-core microarchitecture is enabling development of highly integrated systems that support complex diagnostic and analysis applications.
With Intel® architecture you can choose from a broad selection of embedded hardware building blocks, validated platforms and reference designs - all with long lifecycle support, the same pin-compatible core microarchitecture from top to bottom, and an extensive software base including some of the best developer tools available today. And by choosing Intel architecture for your medical solutions, you gain access to a trusted, integrated and validated supply line of third-party developers through the Intel® Embedded and Communications Alliance, all of whom deliver the world's most advanced firmware, hardware and software components that help you speed time-to-market of your next-generation medical devices and systems.
Intel® QuickAssist Technology for Embedded and Communication Applications
This initiative includes support for acceleration using Intel® multi-core processors and third-party accelerators while developing new integrated accelerators inside the Intel® processor. The approach includes a software layer (Accelerator Abstraction Layer - AAL) that allows applications to easily manage accelerators and protect software investment.
Decrease development time without the need to develop proprietary acceleration layers for each new device.
Accelerate performance for demanding applications with Front Side Bus attached Field Programmable Gate Array (FSB-FPGA) hardware modules.
Support future generations of system-on-chip and multi-core processor designs.
Increase business flexibility with solutions that fit changing business requirements without being tied to a particular accelerator.
Migrate from one technology to another with minimum impact to applications with AAL.
Support for small form factor accelerators with emerging technology combining powerful technology on a single chip.
Manageability Technology for Embedded and Communications Applications
Using built-in platform capabilities and popular third-party management and security applications, Intel AMT allows system managers to:
Discover assets even while systems are powered off, or the OS is inoperable
Diagnose, isolate, and recover systems after OS failures helping to reduce downtime
Verify that software agents are running and proactively protect your enterprise with hardware-based agent presence checking
Isolate and proactively block incoming threats while alerting system managers when critical software agents are removed
Update software and virus protection across the networked systems, and enable third-party software to store version numbers or policy data in non-volatile memory for off-hours retrieval or updates
Intel® architecture unifies industries
A single implementation across multiple sub-segments requires systems from a wide variety of providers. For example, a highly automated factory requires seamless integration of different sub-systems such as programmable controllers, testing systems, machine vision, and back-end IT infrastructure. If those components are based on incompatible hardware and software platforms, the overall complexity and expense of the solution can escalate dramatically.
The fact that multiple use cases exist within each sub-segment makes the compatibility provided by Intel® architecture even more valuable. For example, test and measurement includes such devices and technologies as oscilloscopes, signal generators, spectrum analyzers, and more. Smooth inter-operation helps ensure scalability and software re–use.
In addition to innovations in performance, cost-effectiveness, and energy efficiency, the unmatched ecosystem that surrounds Intel architecture drives revolutionary improvements in efficiency and productivity, across industrial sub-segments.
Intel® Quad-Core Technology
Intel® Multi-Core Technology for Embedded and Communications Applications
Ideal for communications and embedded systems where performance-per-watt has become increasingly critical, each execution core in an Intel multi-core processor is clocked slower than a single-core processor resulting in lower input voltage and greater performance.
Improved performance per watt enabled by 45nm Hi-k next generation Intel® Core™ microarchitecture, delivering improved transistor switching speed and reduced transistor gate leakage.
Backwards compatibility with Intel® Architecture-based processors so you can continue to utilize the 32-bit applications of today while adopting 64-bit applications for the future.
Assign different tasks to each execution core, with each functioning as a distinct processor, allowing you to dedicate multiple applications and operating systems (OSs) to a single execution core, unencumbered by tasks that would otherwise compete for CPU resources.
Intel® Virtualization Technology (Intel® VT) for Embedded Communications Applications
The ability to isolate OSs and application stacks provides a range of benefits for embedded and communications application developers:
Reduce operating and maintenance costs shrinking the overall footprint while eliminating redundant hardware
Protect against corruption with software failover and software migration
Protect previous development investments with legacy applications and new applications on the same hardware platform
Reduce platform overhead and support costs by consolidating onto isolated virtual machines that run both a real-time OS and general-purpose OS on the same device
Intel® Core™ Duo Processors
Tuesday, March 10, 2009
Causing an Avalanche: The latest advance in Silicon Photonics
Several companies are active in the field of silicon photonics because they believe that silicon has an advantage in making the very low cost optical parts needed for large markets. These potentially include a very diverse set of applications including supercomputing, data center communications, consumer electronics, automotive sensors, and medical diagnostics just to name a few. Up until now, only a few silicon photonics products have been commercialized as companies have been working through the latter stages of the development and qualification processes. This looks set to change over the next few (≤3) years as several devices exit this pipeline and go on the market.
Intel has been doing research in this area for more than 5 years and has already reported on silicon modulators, silicon Raman lasers, and hybrid InP-Si lasers (view website). Last year we also published on a photodetector made from germanium and silicon that had a bandwidth of 31 GHz. The use of Ge is important because, unlike Si, it can efficiently detect light in the near infra-red which is the standard for communications. The drawback is that so much stress is developed in pure Ge films deposited on Si that defects are introduced near the Ge/Si interface. Careful design and processing is needed to minimize the impact of these defects on the electrical performance of the device, and this will be mentioned later.
We are now reporting on a different type of Ge/Si photodetector that has built-in amplification, which makes it much more useful in instances where very little light falls on the detector. It is called an avalanche photodetector because an avalanche process occurs inside the device. First, a negative and a positive charge (electrons and holes in semiconductor terminology) are created when the light strikes the detector. The electron is accelerated by an electric field until it attains a high enough energy to slam into a silicon atom and create another pair of positive and negative charges. Each time this happens the number of total electrons doubles, until this “avalanche” of charges are collected by the detection electronics. Click on the image below to see how this works. This amplification effect (called gain) is the key to the device, and it serves as the motivation for why anyone would try to do this in silicon and not just continue to use traditional InP-based APDs. The materials properties of silicon inherently led to lower noise and better performance in this avalanche process. Another reason relates to this bit economic trivia; an individual 10 Gb/s InP APD can sell for more than $200 currently and has a semiconductor area of roughly 400x400 m2. Even the much cheaper 1-2 Gb/s APDs used in fiber to the home (FTTH) still sell for $3-5.
Revolutionary mobile technologies
Designed for higher performance, advanced connectivity, and longer battery life, new Intel® Centrino® processor technology delivers a breakthrough notebook experience.+
Teraflops Research Chip
The Teraflops Research Chip is the latest development from the Intel® Tera-scale Computing Research Program. This chip is Intel's first silicon tera-scale research prototype. It is the first programmable chip to deliver more than one trillion floating point operations per second (1 Teraflops) of performance while consuming very little power. This research project focuses on exploring new, energy-efficient designs for future multi-core chips, as well as approaches to interconnect and core-to-core communications. The research chip implements 80 simple cores, each containing two programmable floating point engines—the most ever to be integrated on a single chip. Floating point engines are used for accurate calculations, such as for graphics as well as financial and scientific modeling. In terms of circuit design, they are more complex than integer engines, which just process instructions.
Friday, February 13, 2009
Intel's Breif History
Intel's Smallest Processor Atom
Intel Atom processor-based netbooks and nettops offer both an easy-to-use mobile device with simple interfaces and targeted performance for a good online experience. They are rugged and compact in design, and offer the freedom and flexibility of wireless connectivity¹.
Great for Internet, these devices are an affordable option for education, photo and video viewing, social networking, voice over IP, e-mail, messaging, browsing, and numerous other Internet activities and basic applications.
Hafnium-based Intel® 45nm Process Technology
With this breakthrough transistor technology, Intel is manufacturing serious advantage into every hafnium-based Intel 45nm high-k chip. These revolutionary new notebook and desktop processors enable greater performance in gaming, multimedia, and multitasking—at work, at home, or on the go.
Intel® Quad-Core Technology
Intel® Core™2 Duo Technology
Next-Generation Intel PC Chips to Carry Intel Core Name
SANTA CLARA, Calif., Aug. 11, 2008 – Intel Corporation announced today that desktop processors based on the company's upcoming new microarchitecture (codenamed "Nehalem") will be formally branded "Intel® Core™ processor." The first products in this new family of processors, including an "Extreme Edition" version, will carry an "i7" identifier and will be formally branded as "Intel® Core™ i7 processor." This is the first of several new identifiers to come as different products launch over the next year.
Products based on the new microarchitecture will deliver high performance and energy efficiency. This "best of both worlds" approach is expected to extend Intel's processor leadership in future mobile, desktop and server market segments.
"The Core name is and will be our flagship PC processor brand going forward," said Sean Maloney, Intel Corporation executive vice president and general manager, Sales and Marketing Group. "Expect Intel to focus even more marketing resources around that name and the Core i7 products starting now."
The Intel Core processor brand name has gained broad awareness, preference, and market momentum over the past several years. The Intel Core name remains the logical choice for Intel's latest family of processors. The Intel Core i7 processor brand logo will be available for high-performance desktop PCs with a separate black logo for Intel's highest-end "Extreme Edition." Intel will include processor model numbers to differentiate each chip.
Initial products based on this microarchitecture are expected to be in production in the fourth quarter of this year. These processors will feature Intel® Hyper-Threading Technology, also known as simultaneous multi-threading, and are capable of handling eight software "threads" on four processor cores.