Getting started as an online Forex trader

Whether you’re a novice or an experienced trader, this section will help you make the most of online trading online with MetaTrader 4. We’ll help you to get started on MetaTrader 4 and give you all the help you need to read and understand the trading markets.

Here you can learn how to read the ever-changing market and understand the various forms of market analysis using MetaTrader 4 – our online trading platform

By downloading the risk-free Demo Account, you will be able to trade the Forex market with virtual money.Then when you’re ready to open a Live Account, we’ll be here to help make sure you understand the process every step of the way.
1: Open a Demo Account.

You can apply your knowledge in a real-life trading environment without risking your money.

Demo accounts are used for:

  * Developing and testing trading strategies:
  * Gaining confidence and familiarity of the trading platform;

  * Apply your Risk Management strategies and learn from the results:

www.forex4you.com

Alpari (UK) provides institutional-level online FOREX trading services and technologies.

The catalyst behind Alpari’s success is its dedication to invest in institutional-level online trading proprietary technologies, comprehensive market analysis and educational tools, as well as delivering world-class customer service.


With daily trading volumes now reaching billions of US Dollars, we are committed to improving our clients trading experience. Consequently, to handle the demands of increasing trade volume and to advance the quality of execution, we are happy to announce the introduction of two new account types - Micro and Classic.

  * MICRO ACCOUNTS
  Micro accounts are designed to accommodate traders who are new to the Forex market and service clients who are trading relatively small volumes. Demo Accounts will never be able to simulate the psychology behind risk and the fear of making a loss; this is where Micro accounts are effective because they help to introduce the Forex market to novice clients without exposing them to excessive risks because trade size is limited.
  Micro accounts allow users to trade only via MetaTrader4.

  * CLASSIC ACCOUNTS

  Classic accounts are designed to accommodate experienced retail traders as well as professional traders, as there is no maximum trade size, no maximum open position and a minimum trade size of 0.1 lots, while the trade size increment remains flexible at 0.01 lots.

* Place market orders with just one click

  * An excellent option for news-event traders

* Choose from "One-Click," "Double-Click," and "Click and Confirm" trading modes

There are three trading modes to choose from:

  * Click and Confirm
  * One-Click
  * Double-Click

The default trading mode for all accounts is "Click and Confirm."

You also can choose your order type ("At Best" or "Market Range") for the "One-Click" and "Double Click" modes in this window. Click here to learn more about "At Best" and "Market Range" order types.


Click and Confirm

This is the default trading mode. Every time you buy, sell, or close a position, you will receive a confirmation window with the parameters of the order. This allows you to easily check that you have keyed in your order correctly before making it.


One Click

To open a buy or sell position, simply click on the "Buy" or "Sell" price for the currency pair you want. You can set the number of lots you want to trade in the dealing rates box before clicking on the price.

www.forex.com/uk

www.online-spread-betting.com

Spreads below are displayed in pips.

XCM's No Dealing Desk* aims to provide transparent and fair execution. Every trade is executed back to back with one of the world's premier banks or financial institutions, which compete to provide FXCM with bid and ask prices. The best spreads available to FXCM are streamed to you with a small markup, which is generally one pip or less for major currency pairs.

Lower Spreads

  * Euro/U.S. dollar spread is frequently 2 pips, British pound/dollar 3 pips
  * Trade on rates provided to FXCM by multiple global banks
  * FXCM's monthy trading volume of over $365 billion drives price competition
  * Fractional pip pricing facilitates the tightening of spreads even further

No Dealing Desk Execution

  * No conflict of interest between broker and trader
  * No dealer intervention in trades
  * Price providers (banks) do not see your stops, limits, and entry orders
  * Competition reduces the potential for market manipulation by price providers

No Trading Restrictions

  * Trade during breaking news
  * Place entry orders anywhere—even inside the spread
  * Scalp the market
  * Rollover transparency—all amounts are displayed in advance
  * Receive positive rolls at all margin levels

Why Trade at FXCM
www.freshpips.com
An average of over $365 billion in notional volume is traded each month on trading platforms offered by FXCM. As a result, we have obtained close banking relationships with some of the world's largest and most aggressive price providers. Having multiple price providers is especially important in volatile markets, when one or two banks may post wide spreads, or simply avoid quoting any price at all. With so many major banks quoting prices to FXCM, there are competitive spreads, even during market-moving news events. .

FXCM does not take a market position—eliminating a major conflict of interest. A dealing desk broker, which acts as a market maker, may be trading against your position. However, with our No Dealing Desk execution, we fill your orders from the best prices available to us from the banks. While an individual bank may try to skew its prices off the market, the unattractive price on the bid or ask side will lose the price competition and as a result, not factor into the prices streamed to you. At FXCM, prices are not subject to manipulation by a broker or a banks dealing desk.

www.finotec.com

source
http://www.forexhelp.com/news-1184173304-c0031008-46481

WASHINGTON (AP) - Lawmakers on Wednesday said tighter regulation of hedge funds may be necessary to protect ordinary investors from unforseen losses.

That was the consensus among many Democrats, and some Republicans, at a House hearing focused on Bush administration recommendations for managing the economic risks posed by hedge funds and their high-dollar cousins, private equity firms. But lawmakers also expressed uncertainty about how to proceed without further study of the issue.

http://www.forexhelp.com/news-1184165855-c0031008-39705

The Bush administration recommendations, made in February, call for increased vigilance on the part of regulators, investors and lenders, but not any new regulation.

Rep. Carolyn Maloney, D-N.Y., and other members of the House Financial Services Committee voiced concern about the fallout from the recent near collapse of two hedge funds managed by Bear Stearns Companies Inc.

Since many public pension funds invest in hedge funds, such difficulties could hurt the retirement savings of schoolteachers, firefighters and other employees, members of the committee said.

http://www.forexhelp.com/news-1184169252-c0031008-42951

"I don't think anybody can be entirely confident that everything is well here, but neither is it obvious what to do," said Barney Frank, D-Mass., chairman of the House Financial Services Committee.

Frank said the panel wouldn't "rush to regulate," but he noted that many of the bad loans that have roiled the mortgage markets were made by brokers and other unregulated entities.

http://www.forexhelp.com/news-1184169134-c0031008-42840

The Bush administration guidelines were issued by the President's Working Group on Financial Markets, which was formed after the 1987 stock market crash. The group is led by Treasury Secretary Henry M. Paulson and includes the heads of the Federal Reserve, the Securities and Exchange Commission and the Commodity Futures Trading Commission.

The hearing is the third in a series by the House Financial Services panel this year on hedge funds and private equity firms, which are attracting increasing scrutiny in Washington.

ttp://www.forexhelp.com/news-1184247765-c0031008-37818

Both have grown rapidly in size in recent years, heightening their potential impact on the broader financial markets

Hedge funds, which trade rapidly in everything from commodities to real estate to complex derivative investments, now control approximately $1.4 trillion in assets.

The Securities and Exchange Commission on Wednesday adopted a new anti-fraud rule for hedge funds. The rule, adopted by a unanimous vote of the five SEC commissioners, makes it a "fraudulent, deceptive or manipulative act" for hedge fund managers to make false or misleading statements to or otherwise deceive investors or prospective investors.

http://www.forexhelp.com/news-1184241153-c0031008-31416

source: http://www.forexhelp.com/news-1184193720-c0031008-54210

WASHINGTON (AP) - Private equity firms that sell shares to the public should be designated as investment companies, a category that would have meant more regulation for Blackstone Group, Democratic lawmakers said Wednesday.

Rep. Dennis Kucinich, D-Ohio, said during a House hearing that the Securities and Exchange Commission made a mistake last month when it refused to classify the New York-based Blackstone as an investment firm before it proceeded with its initial public offering.

Such a classification would have required Blackstone to disclose more information about its holdings, set up an independent board of directors and limit the amount of debt it could take on.

http://www.forexhelp.com/news-1184204237-c0031008-02223

Most mutual funds are considered investment companies and are subject to those rules.

Critics of Blackstone's initial public offering, including labor groups such as the AFL-CIO, said it could set a dangerous precedent because the SEC allowed a private equity firm to go public while escaping strict regulation.

If more private equity firms and hedge funds follow a similar route, Kucinich said, ordinary investors will have access to high-risk investments that were formerly restricted to more sophisticated investors. Kucinich chairs a subcommittee of the House Oversight and Government Reform Committee.

http://www.forexhelp.com/news-1184199898-c0031008-01006

Last month, Kucinich and Rep. Henry Waxman, D-Calif., joined the AFL-CIO in asking the SEC to delay Blackstone's public offering as a result of their concerns, but the New York-based firm proceeded with its IPO June 27 and raised $4 billion.

Private equity firms Kohlberg Kravis Roberts&Co. and Och-Ziff Capital Management LLP are both planning initial public offerings later this year, while other firms such as The Carlyle Group are rumored to be considering doing so.

http://www.forexhelp.com/news-1184197658-c0031008-00531

The firms have faced increasing scrutiny in Washington as they engage in ever-larger buyouts, such as Cerberus Capital Management's $7.4 billion purchase of DaimlerChrysler AG's Chrysler unit and Blackstone's $26 billion acquisition of Hilton Hotels Corp.

The Senate Finance Committee held a separate hearing Wednesday on whether the huge earnings of private equity and hedge fund managers should be subject to higher taxes.

Andrew J. Donohue, the SEC's director of the division of investment management, defended the agency's decision in the Blackstone case and said the private equity firm is "more akin to an investment adviser."

The SEC concluded that the value of investment securities held by Blackstone and Fortress Investment Group, the first private equity firm to go public, was less than 40 percent of the firms' total assets --the definition of investment company under federal law, Donohue testified. That's partly because Blackstone sold shares in its management entity, which is separate from its investment funds.

John C. Coffee, a professor at Columbia University Law School, told the House members that there are other ways to increase the oversight of partnerships like Blackstone.

The SEC should urge the New York Stock Exchange and Nasdaq to require partnerships to accept similar corporate governance rules that the exchanges require of other companies, Coffee said, such as an independent board of directors and shareholder voting rights. Partnerships are currently exempt from such rules.

http://www.forexhelp.com/news-1184173140-c0031008-46284
http://www.forexhelp.com/news-1184176214-c0031008-48227

source:http://www.forexhelp.com/news-1184227674-c0031008-18752

WASHINGTON (XFN-ASIA) - The United States said it is considering forging a bilateral investment agreement with Taiwan but ruled out a free trade pact in the immediate future.

The two sides raised the possibility of an investment accord during annual talks under a Trade and Investment Framework Agreement, which usually precedes a free trade pact.

http://www.forexhelp.com/news-1184229930-c0031008-20827

"Both sides agreed to intensify discussions of possible concrete steps to deepen bilateral cooperation in the investment area, including the possibility of a bilateral investment agreement," said deputy US Trade Representative Karan Bhatia.

http://www.forexhelp.com/news-1184218376-c0031008-07408

"Basically, it would commit both sides to a high standard of investment protection," he told reporters.

Taiwan has been seeking a free trade pact with the US, its key investor, trading partner and top arms provider. Annual US-Taiwan trade is valued at about 60 bln usd.

Resolutions have been adopted in the US Congress and at least 39 of 50 US state legislatures support an FTA with Taiwan, but the US administration and business community are reluctant to pursue it with vigor due to concerns over the likely adverse reaction from Beijing.

http://www.forexhelp.com/news-1184218386-c0031008-07417

Washington switched diplomatic recognition from Taiwan to China in 1979.

Bhatia said an FTA prospect with Taiwan did not arise because the administration of President George W. Bush had lost its nearly five-year-old Trade Promotion Authority (TPA), known as "fast-track" on June 30.

"In the absence of TPA, any discussion of FTA will be premature," he said.

http://www.forexhelp.com/news-1184226454-c0031008-17499

Under the TPA, the administration negotiated trade agreements that could only be approved or rejected by the legislature, but not amended.

www.gencappartners.com

source:

http://www.forexhelp.com/news-1184216416-c0031008-06276

Forex - US dollar gains vs yen after Bank of Japan leaves key rate unchanged

SYDNEY (Thomson Financial) - The US dollar strengthened against the yen after the Bank of Japan on Thursday kept its overnight call rate target unchanged at 0.5 percent for the sixth straight meeting, as widely expected by the market.
http://www.forexhelp.com/news-1184205642-c0031008-02680
At 2.17 pm (0417 GMT) in Sydney, the dollar was trading at 122.35 yen, up from 122.29 yen in early Asia trading, while the euro was at 1.3754 dollars, up from 1.3748 earlier.

The Japanese central bank said the vote by its nine-member policy board was eight to one, with Atsushi Mizuno voting against the proposal by BoJ governor Toshihiko Fukui to leave the overnight call rate at the current level.

"The BoJ's decision and the vote were largely as expected by the market, including Mr Mizuno's dissenting vote," said Mitsuru Sahara, a senior manager at Bank of Tokyo-Mitsubishi UFJ.
http://www.forexhelp.com/news-1184176818-c0031008-48479
Currency markets are now awaiting Fukui's speech which is due to begin at 3:30 pm Tokyo time (0630 GMT).

Sahasa said unless the BoJ governor indicates that a rate hike in Japan is unlikely next month, then the currency market will not likely be affected too much by his remarks.

He said the market is currently looking at a 70-80 percent chance of a rate increase in Japan in August. The BoJ's next policy meeting is on August 22-23.
www.forextradingsoftwarenextgeneration.com
Elsewhere in Asia, traders will again find themselves short of key data releases for the second consecutive night and range trading will likely dominate into Friday.

NAB Capital strategists said carry trades are likely to remain supported following the BoJ's decision.

"With no change in the glacial pace of interest rate increases, it's hard to see why Japanese investors won't continue to invest abroad in high-yielding currencies such as the Australian dollar," they said.

CMC Markets chief analyst Ashraf Laidi said the US dollar/yen currency pair could stabilize around the 122.10 yen level if US equity markets continue their recovery from this week's earlier sell-off.
http://www.forexhelp.com/news-1184173669-c0031008-46709
But he said the greenback's weakness is becoming more structural in nature, suggesting renewed losses down to 121.60 yen and possibly further to 121.20 yen. Key support for the US dollar remains at 120.75 yen, he said.

Laidi said that while a rebound in US equities should boost the euro on rising risk appetite, a decline in US equities may not be as negative for the euro as proven in previous episodes.
www.childtrendsdatabank.org
"Traders must also watch the price of gold. If we see a decline in equities accompanied with rising gold, then this reflects a sign of reduced risk appetite coupled with overall dollar weakness from subprime (lending) woes," he said.
http://www.forexhelp.com/news-1184173304-c0031008-46481

1. Narrow your objectives.

You probably won't be able to achieve every financial goal you've ever dreamed of. So identify your goals clearly and why they matter to you, and decide which are most important. By concentrating your efforts, you have a better chance of achieving what matters most.

2. Focus first on the goals that matter.

To accomplish primary goals, you will often need to put desirable but less important ones on the back burner.

3. Be prepared for conflicts.

Even worthy goals often conflict with one another. When faced with such a conflict, you should ask yourself questions like: Will one of the conflicting goals benefit more people than the other? Which goal will cause the greater harm if it is deferred?

4. Put time on your side.

The most important ally you have in reaching your goals is time. Money stashed in interest-earning savings accounts or invested in stocks and bonds grows and compounds. The more time you have, the more chance you have of success. Your age is a big factor - younger people (who have more time to build their nest egg) can invest differently than older ones. Generally, younger people can take greater risks than older people, given their longer investment horizon.

5. Choose carefully.

In drawing up your list of goals, you should look for things that will help you feel financially secure, happy or fulfilled. Some of the items that wind up on such lists include building an emergency fund, getting out of debt and paying kids' tuitions. Once you have your list together, you need to rank the items in order of importance (if you have trouble doing so, use the CNNMoney.com Prioritizer for help).

6. Include family members.

If you have a spouse or significant other, make sure that person is part of the goal-setting process. Children, too, should have some say in goals that affect them.

Electric roadster maker making money

7. Start now.

The longer you wait to identify and begin working toward your goals, the more difficulty you'll have reaching them. And the longer you wait, the longer you postpone the advantage of compounding your money.

8. Sweat the big stuff.

Once you have prioritized your list of goals, keep your spending on course. Whenever you make a large payment for anything, ask yourself: "Is this taking me nearer to my primary goals - or leading me further away from them?" If a big expense doesn't get you closer to your goals, try to defer or reduce it. If taking a grand cruise steals money from your kids' college fund, maybe you should settle for a weekend getaway.

9. Don't sweat the small stuff.

Although this lesson encourages you to focus on big-ticket, long-range plans, most of life is lived in the here-and-now and most of what you spend will continue to be for daily expenses - including many that are simply for fun. That's OK - so long as your long-range needs are taken into consideration.

10. Be prepared for change.

• Coming out of retirement at 65
• The terrors of Craigslist
• Dear USPS: Consider privatizing
• Freddie Mac reports first profit in 2 years
• Buy foreclosures now, before it's too late
• 
  

source: http://money.cnn.com

THANK TO : By David Lawder and Jessica Wohl

WASHINGTON/CHICAGO (Reuters) - Former U.S. Treasury Secretary Henry Paulson talked often to the head of Goldman Sachs at the height of the credit crisis but did not actively seek to help the bank he once ran, a spokeswoman for Paulson said Saturday.

The New York Times on Saturday reported records of two dozen conversations between Paulson and Goldman chief executive Lloyd Blankfein the same week last September that rival bank Lehman Brothers collapsed and insurer American International Group -- closely connected to Goldman -- was rescued with public funds.

Goldman was the single biggest beneficiary of the AIG bailout, receiving nearly $13 billion in counterparty payments that would have been lost had the insurer failed.

Paulson's spokeswoman Michele Davis confirmed the telephone conversations with Blankfein took place but denied Paulson had any intention of helping Goldman specifically.

"Suggesting that AIG was saved for the sake of one firm is as ridiculous as saying firemen put out a fire in a skyscraper to protect just one of the thousands of people in the building," Davis said in a statement.

Goldman has come under fire from some lawmakers and public interest groups for its government connections, seemingly sailing through a deep recession shortly after accepting $10 billion of taxpayer bailout money and benefiting from a host of other government programs, including access to the U.S. Federal Reserve's borrowing window.

PAULSON ON SIDELINES

Paulson asked Treasury and White House lawyers for a waiver from an ethics ban on contacting his former firm, as officials feared that Wall Street was facing a total collapse.

The Times said the waiver was granted on Sept. 17, the day after the AIG bailout was announced and the day after he received a phone call from Blankfein.

"Following Lehman's failure and the acquisition of Merrill Lynch (by Bank of America) that prevented its failure, officials feared the same crisis of confidence might spread to the remaining investment banks, Morgan Stanley and Goldman Sachs," Davis said.

"If Morgan Stanley were to fail, Secretary Paulson and the other regulators believed that Goldman Sachs, as the last remaining investment bank, might fail as well."

If the government needed to intervene on Goldman, Paulson "needed to be able to actively engage in finding a solution," she added.

http://money.cnn.com/galleries/2009/news/0908/gallery.extreme_job_interviews/index.html

The Sept. 16-21 telephone records, which the Times said it obtained under a Freedom of Information Act request, showed that Paulson spoke much more frequently with Blankfein than he did other Wall Street executives during a week in which the world stood on the brink of financial collapse.

He spoke with John Mack, CEO of Morgan Stanley, which was in a more tenuous situation, 12 times over the same period.

Paulson and Blankfein spoke three times before the waivers were granted and five times on Sept. 17, the New York Times said.

Paulson spent 32 years at Goldman Sachs and preceded Blankfein as CEO before becoming Treasury secretary in 2006.

The records also show frequent phone calls with Timothy Geithner, the current Treasury secretary who was head of the New York Federal Reserve, Fed Chairman Ben Bernanke, and congressional leaders.

A Treasury Department spokeswoman declined to comment.

Davis said the volume of calls to Blankfein reflected in part the need to keep abreast of market developments such as frozen money market mutual funds and address a "crisis of confidence" in the remaining investment banks.

A Goldman spokesman told the New York Times that Blankfein spoke with the Paulson about Lehman Brothers' troubled London operations and "disarray in the money markets."

At a July 16 congressional hearing, lawmakers angrily asked Paulson to explain changes in U.S. policy during the crisis and said he had conflicts of interest in decisions involving Wall Street firms.

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Source & special Thank to http://www.bloomberg.com

By Shamim Adam and Liza Lin

Aug. 10 (Bloomberg) -- The U.S. economy may be on the cusp of a recovery and the impact of the nation’s stimulus plan should increase this quarter, said Laura Tyson, an adviser to President Barack Obama.

“We may have hit stability, we may be in the beginning of an upturn” based on the latest economic data, Tyson, a member of the White House’s Economic Recovery Advisory Board, said yesterday during an interview in Kuala Lumpur. Nobel Prize- winning economist Paul Krugman said the deepest slump since the Great Depression may be ending.

“It’s quite possible, though not certain, that retrospectively, we’ll say that the recession ended in July or August, maybe September,” Krugman said in a separate interview in the Malaysian capital. “My guess is that we’ve bottomed out now, that August was probably the trough month.”

Krugman, 56, cited last week’s government report showing that the pace of U.S. job losses slowed more than forecast in July and the unemployment rate dropped for the first time in 15 months. He also pointed to reports by the Institute of Supply Management that manufacturing, while still contracting, is on the mend.

Tyson, 62, cautioned that declining housing values and an overhang of unsold homes pose threats to a recovery, and it’s too early to say the jobs report is the beginning of a trend.

“We’ve had one number that’s been slightly stronger than expected,” she said. “It’s pretty hard to read a single month as creating a trend. Most of the forecasts are still that the unemployment rate rises through till the end of the year.”

Unemployment Falls

U.S. payrolls fell by 247,000 in July, after a 443,000 loss in June. The jobless rate unexpectedly dropped to 9.4 percent from 9.5 percent. Obama said last week that the unemployment numbers indicate “the worst may be behind us.”

The report propelled the Standard & Poor’s 500 Index above 1,000 for the first time since November as U.S. stocks rose for a fourth week. The S&P 500 rose 2.3 percent to 1,010.48, the highest since Oct. 6. The Dow Jones Industrial Average climbed 198.46 points, or 2.2 percent, to 9,370.07.

The Aug. 7 Labor Department report came a week after the Commerce Department said U.S. gross domestic product shrank at a better-than-forecast 1 percent annual pace in the second quarter after a 6.4 percent drop in the prior three months.

There’s no reason for a second stimulus package now, Tyson said in the interview. She suggested on July 7 the U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small.” She told CNBC three days later that it’s premature to plan for a second stimulus package.

Stimulus Expectations

“We know that relative to plan, the stimulus package in place is performing along expectations,” Tyson said yesterday. “Right now, based on the evidence that the economy has put forward and the stimulus spend out relative to plan, there isn’t any reason to think about a next round.”

Policy makers may want to consider doing more for unemployed Americans, Tyson said. Employers have eliminated about 6.7 million jobs since the recession began in December 2007, the most since the Great Depression.

Congress will consider extending unemployment benefits next month when lawmakers return from their August recess, Majority Leader Harry Reid said Aug. 7. The Senate’s top Democrat said 1.5 million Americans may exhaust their benefits by the end of the year if Congress doesn’t act.

“That could be considered as a second stimulus or it could be considered as an extension of unemployment compensation,” said Tyson, a professor at the University of California’s Walter A. Haas School of Business, who was an adviser to Obama during last year’s presidential campaign.

1 Million Jobs

Krugman, a Princeton University economist, said the stimulus plan probably saved 1 million jobs. He said a second package is needed and should be directed at state and local governments as well as spending on construction projects.

The U.S. economy may be the first after Asia to “take off,” said Raghuram Rajan, the former chief economist of the International Monetary Fund who’s now a professor at the University of Chicago.

“Unemployment may continue rising and job losses may continue, but growth will start picking up in the U.S.,” Rajan, 46, said in an interview yesterday. “We will get a few quarters of rebound growth.”

Krugman, Tyson and Rajan were in Kuala Lumpur for the World Capital Markets Symposium, which starts today.

To contact the reporter on this story: Shamim Adam in Kuala Lumpur at sadam2@bloomberg.net; Liza Lin in Kuala Lumpur at llin15@bloomberg.net

For the new FIFO rule created by NFA, it had made some changes to our trading, actually is good for us to prevent losses or margin call. Here the changes that affected:-1) If apply FIFO: You need to close the 1st trade before you can close the 2nd trade, but you still can open the same lot size for the same pair. Only can create S/L & T/P for the 1st trade.

2) If without FIFO: You can't open the same lot size for the same pair and you need to open different lot size for them, Eg: 1.00 lot for 1st pair and 1.01 lot for 2nd pair.
Do you want to know why the NFA is enforcing this rule?
It's supposed to be a protective rule to prevent you from incurring major losses on a set of losing trades. If you didn't close the first opened first hoping the market would retrace to either minimize your losses or potentially achieve a small profit, the NFA feels that too often the market does not retrace to just compound your losses further until you hit margin calls. I think the NFA created the exception for different lot sizes to rule more with a velvet glove than an iron fist because it gives traders some flexibility and keeps a balance between protective vs. controlling for the new rule.

For more info, please visit http://www.nfa.futures.org/news/newsNotice...?ArticleID=2273
source: & THANK
http://forum.lowyat.net/topic/880976/+2380


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FX Week

On April 29th, I wrote an article about some new NFA rules . They ended hedging with NFA registered brokers (bad), and also restricted the ability of brokers to wreck profits by claiming price feed errors (extremely good).

Everyone was so focused on the hedging part that some of the implications of the wording got overlooked. There was a little detail about FIFO (first in, first out). I assumed this was only talking about hedges. Evidently, the NFA FIFO rule has some more implications. FPA member Pratomo posted some info from FXCM about the problems in the forums 2 days ago and I've done a little more digging. I don't think most forex traders are going to like how this will affect trading with NFA registered brokers.

My article on the problems with the NFA's anti-hedging rules

It seems that the NFA plans to apply FIFO to ALL positions on a currency pair., not just old hedged trades This means if you have 2 separate sell orders on the USDJPY, you can't close the 2nd one you opened before closing the first order. You can only close them in the order that you opened them (or all at once). No more running a long- term strategy on an account and using the same account for a little bit of day trading. I don't know if this was something the NFA intended or if it's something that one of their over-zealous regulators suddenly realized he could foist off on on all of us by deliberately misinterpreting the original intent of an already poorly designed set of regulations.

It gets worse. Much worse. Stop losses and take profits apply to individual orders. If this is implemented, you won't be able to set a proper stop loss or take profit on any platform with an NFA registered broker after July 31st, 2009. Some platforms allow you to set up a pair of OCO

And finally, the worst of the worst for those of us who really like to use MT4. MetaTrader 4 doesn't work this way. Currently, brokers don't seem to accept pending orders that would make your position on a pair neutral because of the NFA's anti-hedging rules. The end effect of this is that if you trade with MT4 and open a second position on a pair, there won't be any way to set a stoploss. Unless the people at MetaQuotes do something about this, you probably won't be able to have a stoploss on even a single position.

Since SL, TP, and the ability to close individual orders in any order are built into MT4, it is possible that NFA regulated brokers may not even be able to offer trading through MT4 starting on August 1st, 2009.

Pratomo's posting with info from FXCM

If this rule happens and MT4 remains usable, the only thing I'll be using any of my NFA brokers for is long term, super-low leverage position trades. All the rest of my trading will be moved to non-NFA brokers outside the USA. If they really wipe out MT4, I'll be defunding my USA accounts and moving everything offshore (ok, I'm “forex platform challenged” and I admit it).

The NFA claims that these rules will make it easier to keep track of their positions – even though this strips out stoplosses from MT4 and complicates them on other platforms. It looks like the NFA wants it to be easier to see why traders get margin called rather of helping traders prevent margin calls.

Is the NFA really intend on destroying retail forex in this country? Do they really want to take money out of the USA and send it overseas? I don't know what they really mean to do, but it's not hard to see what the real consequences are. My only hope is that someone in charge at the NFA realizes that this is an amazingly stupid thing to do and stops it from happening.
orders. These will act as SL and TP, but only for the size of position you set them to. If your total positions on a pair comes to 2.4 lots, you'll need to set your OCO to 2.4 lots if you want everything to close. There are 2 drawbacks. First, you need to set up the OCS (or set of OCOs) to the correct amount to cover all your positions without going over or under. Second, if you miscalculate your risk and get a margin call before hitting the OCOs, those OCOs will still be waiting to be activated, thus risking a 2nd margin call.
SOURCE & THANKS to :
http://www.forexpeacearmy.com/forex-forum/forex-articles/5216-does-nfa-plan-destroy-mt4-usa.html

New NFA Rules

FAQ on FIFO at Daily FX

My article on Risk Management – for use with brokers that can legally offer stoplosses

Jobs Sparks USD, Stock Rally

The dollar surged against the majors on the Friday session, rallying sharply against the euro from 1.4412 to 1.4156 and pushing the sterling to 1.6655. The catalyst for the steep move was the closely anticipated July jobs data. In sharp contrast to recent market behavior, the greenback’s strength coincided with a rally in the US equity markets. The major bourses were all higher by over 1.6%, with the S&P 500 advancing by 1.75% and the Dow Jones up more than 1.64%.

The July labor report unexpectedly improved for the first time in 15-months with the unemployment rate defying estimates for an increase to 9.7%, instead declining to 9.4% from 9.5% in June. Non-farm payrolls posted a drastic improvement, revealing a loss of 247k jobs, besting calls for a reading of -320k jobs, versus an upwardly revised June reading of 443k jobs lost.

The market action today challenges recent trade correlations, rewarding the greenback on improving sentiment that the US economy will be the first to recovery from the global economic recession. Nonetheless, the economic reports remain inconsistent but reinforce the prospects that the deterioration in fundamentals is slowing. The focus will now be on the two-day FOMC monetary policy meeting next week, with traders closely scrutinizing the Fed’s outlook for the economy.

Daily Report: Non-Farm Payroll to End Consolidations?

EURUSD trades near 1.4170, with support starting at 1.4140, followed by 1.41 and 1.4060. Subsequent floors are seen at 1.4030 and 1.40. On the topside, resistance will emerge at 1.42, backed by 1.4230 and 1.4260.

MG Financial Group
http://www.mgforex.com

Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.

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Weekly Review and Outlook

Traders Back to Fundamentals, Has Dollar Bottomed?

After making a new 2009 low against most major currencies last week, dollar struck a strong comeback on the back of upside surprise in employment report in US and closed the week higher. While the employment markets were still weak, the non-farm payroll report did show significant improvements over the last few months, considering that the -247k job loss in July was one-third of that peak of -741k recorded in Jan. Another surprise was the drop in unemployment rate which was down from 9.5% to 9.4%. While the economists are viewing that as a "temporary dip" and unemployment rate is still generally expected to rise towards the end of the year, the expectation has now shift to an earlier and lower peak.

Dollar has responded positively in a broad sense to a piece of positive data finally, arguing that traders are possibly turning back to fundamentals. In particular, consider that dollar was initially sold off after NFP on risk appetite trades but those weakness was quickly overshadowed by massive dollar buying together with surge in bond yields. Markets are continuing to reinforce the expectation that Fed will begin to remove the ultra-loose monetary policy sooner than earlier expected. Indeed, Fed fund futures are pricing in over 60% chance that Fed will raise rate from the current 0-0.25% range by January meeting, up more than 10% chance from a month ago.

The question in everyone's mind now is whether the dollar has bottomed? While the rebound last Friday was strong, there is no clear confirmation of reversal yet. Note that dollar's strength was seen mainly against yen and European currencies. The recovery against Canadian dollar and Australian dollar was mild while there wasn't much strength seen against New Zealand dollar indeed. Also, note that if the notion of traders turning back to US fundamentals is correct, we'd continue to see the greenback correlate positively with stocks, like what it did on Friday. In other words, strong data from US will boost both stocks and the greenback. In turn, strength is stocks will lift commodities as well as commodity currencies. However, strength in greenback will likely pressure commodities. So, in case of strong US data, European currencies will likely be pressured. But the fate of commodity currencies and dollar in generally, will depend on the developments in commodity markets, including gold and crude oil. But in any case, yen will be pressured by improvements in investor sentiments.

Two other main events last week was BoE and ECB meetings. The Bank of England decided to keep interest rate unchanged at 0.5% but to extend the asset purchase program by 50B pounds to 175B pound. This was done as recession has been deeper than expected and after assessing the new set of economic forecasts, the existing stimulus plans and generation-low interest rate are not sufficient to overcome deflation. More in BOE Extends The Asset Purchase Program To 175B Pound

As anticipated, ECB kept its main refinancing rate unchanged at 1% in August. Moreover, there's nothing new in the press conference that we could get regarding economic outlook, monetary policies or exit strategies. More in ECB Meeting: Non-eventful As Expected

Technically, dollar index did draw strong support from mentioned 75.89/77.67 support zone and rebounded strongly last week. Bullish convergence condition in daily RSI argues that 77.43 might be a short term bottom at least. But there is no confirmation yet. Focus will be on 79.66 resistance initially this week and break there will solidify the case that dollar has already bottomed out and turn focus to 80.89/81.47 resistance zone for confirmation.

source: http://www.actionforex.com/

Candlesticks & Ichimioku Analysis

• NZDUSD Candlesticks and Ichimoku Analysis
• EURJPY Candlesticks and Ichimoku Analysis
• USDCAD Candlesticks and Ichimoku Analysis
• EURCHF Candlesticks and Ichimoku Analysis

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Managed forex accounts may or may not be appropriate for you. A managed forex account can give an investor who does not have time to trade, the opportunity to participate in the gigantic world of currency trading. Also, investors who want their capital managed by an experienced professional, may find that forex managed accounts fit well in their existing portfolios.

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Diversify away from the stock market with a managed forex account
The returns from professionally managed forex accounts are not related to the forex strategies performance of the stock market, as indicated by various studies conducted. Therefore, putting a portion forex charts
of your investment capital into a managed account that invests in the forex market can be a way to diversify your portfolio whether the stock market goes up or down. This is one of the reasons why some investors participate in this alternative investment vehicle.

Best Performing Trading Systems Services and Software

Are managed forex accounts right for me?
Managed forex accounts may be appropriate for investors who are looking for the following benefits:

• An asset global forex class for the aggressive part of their portfolios.*
• Low minimum investment compared to other managed accounts.
• A way to diversify away forex platform from the stock market.
• Increased diversification managed forex in their investment portfolios.
• A professional, well-known forex currency
  account money forex trading strategies manager.
• A way to participate in the foreign
  forex rate exchange market forex markets without having to trade the market themselves.
• Account balance forex strategy
  can be withdrawn at any time - no lock-up period.

A forex managed account may also be appropriate for high net-worth individuals
Method used in the managed forex program
Different money managers use different methodologies in the forex managed account in an attempt to capitalize on short-term price swings and trends that occur in major currencies. A diversified managed account may also uses money management techniques to for risk control.*

The forex managers
The managers of the managed forex account program have years of market experience.

Source:http://www.forextradingusa.com

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The most challenging part of getting started with Forex trading is to learn this innovative way of trading. Many potential investors that try to navigate the Forex system unaided end up being frustrated and financially intimidated. There are very simple strategies to becoming successful using the foreign exchange trading system but the first step is gathering all of the necessary information surrounding this type of trading specialty. Securing a reliable Forex trading broker is likely the first and most pivotal step after learning the initial principles.

Unlike many types of trading and futures, foreign exchange trading is not designed to make the client rich quickly. Many people are frightened off by the word that Forex trading is a get rich quick scheme that in large part, doesn't work. This is a financial myth despite all the hype surrounding the foreign exchange trading system. There are steps and gains to be taken in order to secure a future in successful trading. Expect to dedicate a large portion of time to researching and understanding the market in general before setting out with your pocket book ready to invest. Learn all you can about the Forex market in the beginning in order to make the Forex trading path a smooth and triumphant one.

There is no doubt that there are numerous types of orders that can be utilized in order to open and close trades and becoming familiar with them is a must. In the foreign exchange trading business there are charts, graphs and other visuals to help you effectively analyze trends in currency trading. These charts and graphs will assist in making well-informed decisions on what currency to sell. Timing is everything and it goes without saying that when experiencing with the Forex trading system, knowing when to trade can be the pivotal difference between success and failure. Understanding the analysis tools and how to use them efficiently will put any investor on the right track.

As well as proficient trading tools, it is an absolute necessity when using the foreign exchange trading system to understand how to use the software to perform actual trades. The only way to become comfortable with using Forex trading software is to use it and learn how to plot a course through the process. Selecting a good trader is the most imperative tip at this stage because an established trader can help you with the services required as well as giving you in depth tutorials using the foreign exchange trading system.

The most critical tool that will be utilized in the Forex trading system is patience and discipline. As mentioned earlier, foreign exchange trading is not a get rich quick proposal so learning patience and discipline can help you to become profitable in a timely fashion without losing money. Most brokers offer a demo account that can be used to practice and learn the foreign exchange trading system that mimics the real account with the exception of real money being traded. This gives a client insight into the market and its behaviors before actual money is invested. Learn how to make a profit using paper trading on a regular basis before risking your capital with Forex trading.

International commerce has rapidly increased as the internet has provided a new and more transparent marketplace for individuals and entities alike to conduct international business and trading activities. Significant changes in the international economic and political landscape have led to uncertainty regarding the direction of foreign exchange rates. This uncertainty leads to volatility and the need for an effective vehicle to hedge foreign exchange rate risk and/or interest rate changes while, at the same time, effectively ensuring a future financial position.

Each entity and/or individual that has exposure to foreign exchange rate risk will have specific foreign exchange hedging needs and this website can not possibly cover every existing foreign exchange hedging situation. Therefore, we will cover the more common reasons that a foreign exchange hedge is placed and show you how to properly hedge foreign exchange rate risk.

Foreign Exchange Rate Risk Exposure - Foreign exchange rate risk exposure is common to virtually all who conduct international business and/or trading. Buying and/or selling of goods or services denominated in foreign currencies can immediately expose you to foreign exchange rate risk. If a firm price is quoted ahead of time for a contract using a foreign exchange rate that is deemed appropriate at the time the quote is given, the foreign exchange rate quote may not necessarily be appropriate at the time of the actual agreement or performance of the contract. Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.

Interest Rate Risk Exposure - Interest rate exposure refers to the interest rate differential between the two countries' currencies in a foreign exchange contract. The interest rate differential is also roughly equal to the "carry" cost paid to hedge a forward or futures contract. As a side note, arbitragers are investors that take advantage when interest rate differentials between the foreign exchange spot rate and either the forward or futures contract are either to high or too low. In simplest terms, an arbitrager may sell when the carry cost he or she can collect is at a premium to the actual carry cost of the contract sold. Conversely, an arbitrager may buy when the carry cost he or she may pay is less than the actual carry cost of the contract bought. Either way, the arbitrager is looking to profit from a small price discrepancy due to interest rate differentials.

Foreign Investment / Stock Exposure - Foreign investing is considered by many investors as a way to either diversify an investment portfolio or seek a larger return on investment(s) in an economy believed to be growing at a faster pace than investment(s) in the respective domestic economy. Investing in foreign stocks automatically exposes the investor to foreign exchange rate risk and speculative risk. For example, an investor buys a particular amount of foreign currency (in exchange for domestic currency) in order to purchase shares of a foreign stock. The investor is now automatically exposed to two separate risks. First, the stock price may go either up or down and the investor is exposed to the speculative stock price risk. Second, the investor is exposed to foreign exchange rate risk because the foreign exchange rate may either appreciate or depreciate from the time the investor first purchased the foreign stock and the time the investor decides to exit the position and repatriates the currency (exchanges the foreign currency back to domestic currency). Therefore, even if a speculative profit is achieved because the foreign stock price rose, the investor could actually net lose money if devaluation of the foreign currency occurred while the investor was holding the foreign stock (and the devaluation amount was greater than the speculative profit). Placing a foreign exchange hedge can help to manage this foreign exchange rate risk.

The FOMC sets the discount rate or federal funds rate and because interest rates are set higher to induce foreign investment and therefore fight inflation during times of prosperity and lower to increase spending during recessions they are one of the main factors influencing the strength of the dollar.

Economic indicators play a huge role in the forex trading especially for traders who approach the market through fundamental analysis and trade the news. The Federal Open Market Committee (FOMC) interest rate decision is one of the most influential indicators for the US dollar and you can be sure after the news is released there is going to be volatility in the markets and volatility is what traders thrive on.

I have heard many 'traders' say never to trade the news and especially the FOMC. Although the FOMC interest decision is a news event and can fall under the category of through fundamental analysis I am a technician and I believe that charts always price everything in. However I guarantee the market does not know what exactly the Feds comments and decision will be, therefore it is not priced in yet and this will cause the markets to react when they do find out. This is confirmed by the change in price after the decision and the continuation in the days following.

I have been trading the Fed for eight years now and yes I have been burnt in the past and that is exactly how I have come to learn how to trade it properly. The most common pattern to trade the Fed is the whip-saw. But do not be fearful of it, embrace it. Here is how it happens, first there is a large spike one direction (traders come in and follow that direction)followed by a large spike in the opposite direction (those same traders now sell their first position at a loss and reverse their position - this is when I take a position in the direction of the original move)followed by an extended move back in the direction of the original spike (all the emotional trades are left sick to their stomachs) and I am left holding a very nice position setting myself up to capture a larger than average market move.

If this pattern does not play out exactly as outlined I stand on the sidelines and do not trade at all. Because the markets are moving fast in the period following the FOMC interest rate decision I am watching a very short time frame, mainly the one and five minute charts.

This article is one of a series which looks at the advantages and weaknesses of trading using the hedged, grid trading system to trade volatile markets.

We will look at how money can be made by breaking a number of trading truths or principles; * cut your losses and let your profit run and * there is nothing to gained by entering into buy and sell deals at the same time.
The hedged grid trading system uses the principle that one should be able to cash in at a gain no matter which way the market moves. No stops are therefore required at all. The only way this is logically possible is that one would have a buy and sell active at the same time. Most traders will say that that is trading suicide but let's take some to look at this more closely.
Let's say that a trader enters the market with a buy and sell active when a currency is at a level of say 100. The price then moves to 200. The buy will then be positive by 100 and the sell will be negative by 100. At this point we start breaking trading rules. We cash in our positive buy and the gain of 100 goes to our account. The sell is now carrying a loss of -100.

The grid system requires one to make sure that cash in on any movement in the market. To do this one would again enter into a buy and a sell transaction. Now, for convenience, let's assume that the price moves back to level 100.
The second sell has now gone positive by 100 and the second buy is carrying a loss of -100. According to the rules one would cash the sell in and another 100 will be added to your account. That brings the total cashed in at this point to 200.

Now the first sell that remained active has moved from level 200 where it was -100 to level 100 where it is now breaking even.
The 4 transactions added together now magically show a gain:- 1st buy cashed in +100, 2nd sell cashed in +100, 1st sell now breaking even and the 2nd buy is -100. This gives an overall a gain of 100 in total. We can liquidate all the transactions and have some champagne.
There are many, many other market movements that turn this strange buy and sell at the same time? activity into gains. These will be covered in future articles and are covered in a free grid trading course which is available at the expert-4x.com website for those traders whose curiosity has been aroused.

When I started my trading career I attended a 3 day forex trading course which gave me a mere introduction to this great and fascinating money making activity. I was given some good advice during this course but I have since found that there are more many more ways to skin a cat than sticking to hard a fast Forex trading rules. If all traders are sticking these common trading beliefs one has to ask the question why do so many fail?

One of the Golden rules of Forex trading I was told is Never, but never, trade without a stoploss. I took this rule very much to heart and started trading with stops. Like most beginners my stops were way too tight and small and I got stopped out time and time again. As I gained experience and started trading the bigger price waves I started trading bigger stops. I soon realised that the bigger your stop the higher your success rate. However I also soon found out that the gains made on nine successful transactions when using big stops can very quickly be wiped out by one or two big losses. So I went through a very frustrating time when my stops were too small for my good transactions (the stops were hit and then my targets soon after) and way too big for my bad transactions (allowing big stops when the direction was totally wrong). You soon start thinking that brokers are there just to hunt your stops. This is always an emotive subject for debate amongst forex traders.

One day I started thinking the unthinkable. Why not trade without a stoploss at all? Is it possible to make money trading with no stoploss orders? I set about developing a technique to do just that. It took a few years of experimenting, but I now have a profitable no stop forex trading technique. I can't tell you the relief of not caring which way the price moves (as long as it moves). Yes, it is possible to cash on any move in the market. For more information, which is freely available, on this great technique why not Google stop forex trading or visit informative sites like www.expert-4x.com or www.forextradersupportservices.com

Other rules that were worthwhile breaking in the course of developing this technique were: let your profits run and cut your losses or always trade in the direction of the main trend. These will be subjects of future articles which give more information on the development of the No Stop forex trading system.

This is the first in a series of seven articles on the No stop forex trading technique which will be published in this article directory on a regular basis. Make sure that you do not miss any of them.