ForexGen introduces to all its users a free online academy that would aid them in either learning more about Forex market or in developing their strategies. It is a free academy available online; you can register and enjoy ForexGen services.
Currency futures are specific types of forward outright deals which occupy in general a small part of the Forex trading market. Because they are derived from the spot price, they are derivative instruments. They are specific with regard to the expiration date and the size of the trade amount. Whereas, generally, forward outright deals those that mature past the spot delivery date will mature on any valid date in the two countries whose currencies are being traded, standardized amounts of foreign currency futures mature only on the third Wednesday of March, June, September, and December.Moreover, currency futures provide several benefits for traders because futures are special types of forward outright contracts, corporations can use them for hedging purposes. Although the futures and spot markets trade closely together, certain divergences between the two occur, generating arbitraging opportunities. Gaps, volume, and open interest are significant technical analysis tools solely available in the futures market. Yet their significance extrapolates to the spot market as well.For traders outside the exchange, the prices are available from on-line monitors. The most popular pages are found on Bridge, Telerate, Reuters, and Bloomberg. Telerate presents the currency futures on composite pages, while Reuters and Bloomberg display currency futures on individual pages shows the convergence between the futures and spot prices.
For widening your knowledge and trading experience, you can easily join ForexGen online academy and start develop your own way in handling Forex trade.
ForexGen introduces to all its users a free online academy that would aid them in either learning more about Forex market or in developing their strategies. It is a free academy available online; you can register and enjoy ForexGen services.
Foreign exchange brokers, unlike equity brokers, do not take positions for themselves; they only service banks. Their roles are:• bringing together buyers and sellers in the market• optimizing the price they show to their customers• Quickly, accurately, and faithfully executing the traders' orders.The majority of the foreign exchange brokers execute business via phone. The phone lines between brokers and banks are dedicated, or direct, and are usually in-stalled free of charge by the broker. A foreign exchange brokerage firm has direct lines to banks around the world. Most foreign exchange is executed through an open box system a microphone in front of the broker that continuously transmits everything he or she says on the direct phone lines to the speaker boxes in the banks. This way, all banks can hear all the deals being executed. Because of the open box system used by brokers, a trader is able to hear all prices quoted; whether the bid was hit or the offer taken; and the following price. What the trader will not be able to hear is the amounts of particular bids and offers and the names of the banks showing the prices. Prices are anonymous the anonymity of the banks that are trading in the market ensures the market's efficiency, as all banks have a fair chance to trade. Brokers charge a commission that is paid equally by the buyer and the seller. The fees are negotiated on an individual basis by the bank and the brokerage firm.Brokers show their customers the prices made by other customers either two-way prices or one way prices from his or her customers. Traders show different prices because they "read" the market differently; they have different expectations and different interests. A broker who has more than one price on one or both sides will automatically optimize the price. In other words, the broker will always show the highest bid and the lowest offer. Therefore, the market has access to the narrowest spread possible. Fundamental and technical analyses are used for forecasting the future direction of the currency trading. A trader might test the market by hitting a bid for a small amount to see if there is any reaction. Brokers cannot be forced into taking a principal's role if the name switch takes longer than anticipated. Another advantage of the brokers' market is that brokers might provide a broader selection of banks to their customers. Some European and Asian banks have overnight desks so their orders are usually placed with brokers who can deal with the American banks, adding to the liquidity of the market.
For widening your knowledge and trading experience, you can easily joinForexGen online academy and start develop your own way in handling Forex trade.
U.S. August nonfarm payrolls due out at 12:30 GMT will mark today's key market risk event.
Overnight News Bullets§ FR ILO Unemployment Rate (2Q), out at 7.6% vs. 7.5% exp. 7.5% prior.
§ SW Riksbank Interest Rate hiked to 4.75% from 4.50% as expected.
§ HBOS Plc house prices (Aug), out at -1.8% vs. -1.8% exp. -1.7% prior.
§ HBOS House Price 3Mths/Year (Aug), out at -10.9% vs. -10.7% exp. -8.8% prior.
§ GE Factory Orders MoM/YoY (Jul), out at -1.7%/-0.7% vs. 0.3%/-2.2% exp. -2.9%/-6.1% prior.
§ UK BOE kept rates at 5.00% as expected. •ECB kept rates at 4.25% as expected.
§ US ADP Employment Change (Aug), out at -33K vs. -30K exp. 9K prior.
§ US Nonfarm Productivity (2Q F), out at 4.3% vs. 3.5% exp. 2.2% prior.
§ US Unit Labor Costs (2Q F), out at -0.5% vs. 0.0% exp. 1.3% prior.
§ US Initial Jobless Claims (Aug 30), out at 444K vs. 420K exp. 425K prior.
§ US Continuing Claims (Aug 23), out at 3435K vs. 3423K exp. 3423K prior.
§ US ISM Non-Manf. Composite (Aug), out at 50.6 vs. 49.5 exp. 49.5 prior.
§ US EIA Natural Gas Storage Change (Aug 29), out at 90 vs. 90 exp. 102 prior.
§ US DOE Crude Oil Inventories (Aug 29), out at -1898K vs. 450K exp. -3502K prior.
§ US ICSC Chain Store Sales YoY (Aug), out at 1.7% vs. 2.6% prior.
Markets
§ FX: Further Euro-Zone recession worries has sent the Euro on a further decline, EURUSD made a low of 1.4215
§ Fixed Income: Economic slump, and equity sell-off has been a boon for Fixed Income headed for biggest weekly gain in 6 months.
§ Stocks: A weak session again across the board, US losses carried by the financial sector, the weak sentiment carried into Asia.
§ Commodities: Even with a severe unexpected draw in crude oil inventories oil failed to rally and is still resting under $110.
§ US equities up to 3% lower, which might have been due to forced selling and con-cerns about the health of major market participants. Asian stocks had a weak opening and were unable to regain the early losses.
§ South Korea intervened on forex markets once again to support the tumbling won, which has been hammered by fears of capital flight from Asia's fourth-biggest economy.
§ Russia's central bank intervened to support the ruble as there had been capital outflows since the conflict with Georgia. Ruble shows very limited gains.
§ Sheila Bair, Federal Deposit Insurance Corp's chairman says that troubled loans keep rising and US banks will need to shore up their reserves to cover potential losses in the next quarters.
§ Lehman Brothers considers a plan to put some $32 billion of its commercial real estate and mortgage assets in a new spin-off.
§ Oil ($107.70) falls as inventories report shows declining demand.
§ Today, German Industrial production (July) and the US August payrolls on the cal-endar.
