Forex Tradings Made Easy

Are you kidding me? Forex trading isn't easy, it's about as risky a financial endeavor as you can legally participate in.Wait, let me rephrase that... foreign exchange trading is easy, success isn't. Yeah, that's right, that's my tag line. It's true.If you are looking for the easy button, here are some platitudes for you:
Buy low and sell high.
Have inside access to national economic reports.
Witness a major international incident prior to the news reports.If you are willing to work hard, be patient, and work to preserve your capital, then here are some more helpful suggestions:

Waiting For A Buying Opportunitys

If you don't know how to recognize a buying opportunity, then you need to be playing with funny money still. Perhaps there has been a big movement recently. Perhaps there is a news release on the way. Perhaps you have noticed a trend and your indicators are giving you signals. Whatever the case, don't just throw your money at the market and hope for a profitable move.

Managing Your Risk

It's easy to get fully invested. Heck, if you are careless you can do this in one trade. If you aren't careful you can blow up your entire account within minutes. Sure, you do have to take a risk every time you enter the market, but you don't have to take huge risks in order to achieve significant returns on your money. Make sure you are around for the long haul because eventually the market will make a move in your direction.

Forex For The Small Speculator

Today was a banner day for me... trading the AUD/JPY with a return of more than 10% NAV. The market simply walked up and down my trend lines bringing me profits with every pass. How come this doesn't happen more often?Anyway, as a small time speculator I thought I'd outline some issues that we face compared to some of the larger traders:
We trade in very small lot sizes
To make any meaningful revenue we may trade with a large percentage of our NAV.
Carry trading strategies may be meaningless

Trading Large NAV Percentags

There is nothing wrong with trading a large percentage of your NAV as long as you know what you are doing. It's a problem if you are trading this way because you keep acquiring positions as the market moves against you. It's okay if you take a measured defined risk because the market has entered a condition that you have decided represents an opportunity. It is very important to get out of losing positions once you know that your market position is unfounded.

Carry Trading Becomes Useless

If you only have hundreds of dollars in your Forex account, then there is no point trying to take advantage of carry trades. If the market didn't fluctuate so much it might be worthwhile, but in all likelihood you'll make a few bucks here and there and end up wasting your time. So what if you make 200% over a year, you still only have several hundred dollars in your account.Concluding ThoughtsWhen you are trading relatively large positions relative to your account size, it can be exciting. You'll quickly win or lose tens of percentage points. If you are good you'll be able to build up a bit of a nest egg before too long and then start trading more appropriately for the size of the account you've built up. Quite simply, as your account gets larger the need to large risks dissipates.Get out there, take your time, make sure the market sets itself up for you just right, and then stomp around and rip a few dollars out!

Waiting For A Buying Opportunity

If you don't know how to recognize a buying opportunity, then you need to be playing with funny money still. Perhaps there has been a big movement recently. Perhaps there is a news release on the way. Perhaps you have noticed a trend and your indicators are giving you signals. Whatever the case, don't just throw your money at the market and hope for a profitable move.

Forex Trading Made Easy

Are you kidding me? Forex trading isn't easy, it's about as risky a financial endeavor as you can legally participate in.Wait, let me rephrase that... foreign exchange trading is easy, success isn't. Yeah, that's right, that's my tag line. It's true.If you are looking for the easy button, here are some platitudes for you:
Buy low and sell high.
Have inside access to national economic reports.
Witness a major international incident prior to the news reports.If you are willing to work hard, be patient, and work to preserve your capital, then here are some more helpful suggestions:
Wait for a buying opportunity before entering a market.
Manage your risk via position size and stop loss orders.
Learn to recognize when you should not be trading.

New York Real Estate - The Empire State

From Niagara Falls to the Catskills to a little city with the Big Apple nickname, New York is truly the Empire State. New York real estate prices reflect this lofty nickname.

New York

While New York City gets a lot of publicity, New York is a state with a lot more to offer. Go upstate and you?ll find spas, horse farms and resorts in the green, towering Catskills and Adirondacks. Lakes and springs present throughout the state are also popular places to live and visit. Of course, if city life is your thing, there?s a little, unassuming place called New York City.

New York City

Where does one even begin to describe New York City? I?m not even going to try other than to say it is perhaps the dominant ?big city? in the world. Space is at a premium and so are real estate prices. This is one of those situations where if you have to ask about the price of a home, you can?t afford it.

Buffalo

The second largest city in New York, Buffalo is a misunderstood city. Known for getting massive amounts of snow in the winter, Buffalo actually has a lot to offer. A very wealthy town during the industrial revolution, the town has beautiful art-deco architecture and historic Victorian homes in the downtown area. A bit sprawling in the suburbs, Buffalo offers reasonably priced real estate compared to the rest of Niagara Falls. Lake Erie to the west of Buffalo makes a great setting for summer fun.

Rochester

A sprawling city, Rochester is dominated by some of the best-known brands in the world. Home to such companies as Xerox, Kodak and Bausch & Lomb, the city offers plenty of jobs and a distinct well-healed atmosphere. This is particularly true in the downtown area, which reflects the economic strength of these companies.

New York Real Estate

New York real estate prices are entirely dependent upon the specific location. If you?re looking for a home in New York City proper, a bank robbery may be in your future as an absolute closet is going to run you close to a million if not more. Things aren?t as bad elsewhere.

A single family home in Buffalo will set you back roughly $225,000 on average, while the same home in Rochester will run an additional $30,000. Appreciation rates for New York real estate were a little more than 13 percent in 2005, but differ greatly by location.

Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner. Visit our home buying page to view and buy New York real estate.

New York Real Estate Lawyers

A New York real estate lawyer practices in accordance with New York law. A New York real estate lawyer handles purchases and sales of condominium apartments, co-operative apartments and homes, commercial and residential real estate transactions, assignments of sub-leases and leases, and more. A New York real estate lawyer also handles litigation involving real estate with banks, architects, building contractors, insurance companies and landlord-tenant litigation. A real estate lawyer handles building and remodeling agreements, and works to settle disputes regarding budget, materials, craftsmanship and other issues.

There are two categories of real estate lawyers in New York: litigation lawyers, who mainly work on lawsuits involving real estate, and transactional lawyers, who mainly deal with agreements and contracts involving real estate. Before hiring a real estate lawyer, clients should decide on which of the two types of lawyers they need. A New York real estate lawyer helps clients drawing up a lease agreement based on New York real estate law when leasing a real estate property, and represents the client if any landlord-tenant disputes arise. When purchasing real estate, one has to sign up a Promissory Note, so it is always advisable to keep a real estate lawyer present.

It is essential for all New York real estate lawyers to pass the bar exam, which includes multiple-choice questions and essay questions. On passing the bar exam, one must apply to the Appellate Court to seek entry to the bar and, after passing the interview with the Character and Fitness Committee, one can practice law in New York. Some of the most prominent real estate law firms are the Law Office of Kevork Adanas; Silverberg, Stonehill, Goldsmith and Haber; the Harry Herbertz Law Offices, and many more.

New York Lawyers provides detailed information on New York Lawyers, New York Personal Injury Lawyers, New York Real Estate Lawyers, New York Bankruptcy Lawyers and more. New York Lawyers is affiliated with New Jersey Business Lawyers.

Article Source: http://EzineArticles.com/?expert=Damian_Sofsian

Real Estate Property Investment Series: Focus Bahrain 2007

Despite its five thousand year history, US allied Bahrain is an ?emerging? nation and has been in a significant state of transition since the current king and former amir of Bahrain Sheikh Hamad bin Isa Al Khalifa came to power in 1999 and it?s critical that any investor examining the property market prospects in Bahrain for profit potential in 2007 and beyond understands the nature of the development of the country before they consider committing to it.

While the current period of transition now means that Bahrain has become one of the most prosperous and attractive nations in the Gulf region in which to live, work, invest and prosper, it?s rapidly expanding economy and significant political changes have created an underlying feeling of destabilisation among certain factions of the local population.

While generally speaking Bahrain?s property market prospects for 2007 are very positive indeed and this article covers the positive prospects for the market, it also details the underlying problems that could undermine the short term attractiveness of the country?s real estate sector so that investors can make as informed a decision as possible about market entry and investment commitment.

Since the current king of Bahrain came to power his nation has made incredible progress?on the political front Bahrain is now allied with the likes of the USA and UK, it has a free trade agreement in place with America, it has open elections and in 2006 the first ever female parliamentarian in any Arab Gulf country was elected into office in Bahrain. On the economic front the king of Bahrain has been key to the transition of his nation away from its economic dependence on oil and going forward into 2007 and beyond, Bahrain has a strong economy with very positive annual GDP growth rates.

All of these factors have indirectly started a property market revolution which is largely fuelled by international citizens moving in greater numbers to Bahrain to live and work. The reason for this is that Bahrain is located in an important strategic position in the Gulf and has taken it upon itself to be the nation offering least resistance to multinational businesses requiring a physical presence in the region. As a result of attractive legislation, transparent business practices and a low/no tax policy, Bahrain has succeeded in attracting large numbers of international and multinational corporations to its shores who each require a base in the Gulf region and who each recruit large numbers of international expatriates who are now moving to live in Bahrain.

Why Buy Real Estate Property in Turkey

Turkey has suddenly become one of the most talked about locations in the world in terms of its emergence as a holiday location, a foreign direct investment hotspot and a real estate property paradise for all those seeking the ultimate in affordable, well located and beautifully constructed holiday homes or investment properties.

For the potential buyer or indeed a traveler considering their 2007 summer holiday destination, this is a guide to why Turkey is just such a popular choice and why buying real estate property in Turkey today could set up your future economic prospects very positively indeed!

In 2006 certain significant events took place to define Turkey?s likely future direction. Firstly a small terrorism group which had been targeting Turkey announced a unilateral ceasefire and a change in direction to political lobbying for the realisation of its aims, secondly Turkey began getting its political, social and economic affairs in order for its eventual acceptance into the European Union fold, and thirdly the nation received an incredibly significant financial lift from Middle Eastern investors who see Turkey as the one true nation which bridges Eastern and Western cultures, beliefs and religions.

As a result of all of these incredibly significant and weighty events Turkey has been hitting the headlines weekly as it develops, emerges and becomes one of the most exciting nations in the world in terms of its potential for growth and economic expansion. One significant result of the greater exposure of Turkey is that tourism numbers are surging ahead and it is predicted by the World Travel and Tourism Council that Turkey?s tourism based economy is on track for extra-ordinary growth.

Real Estate Investing: Bird Dogging

For those who are interested in making money in the real estate investment business only sky is the limit. Does not matter if you do not have money to invest in the business or rent a space to begin the operations. There are business solutions that allow you to spin money without any establishment cost. If you are wondering how ? read this article about Bird-Dogging.

What Is Bird-Dogging; ?Bird-Dogging? refers to a business, which involves identification of a real estate property by the businessman. Upon identification, the businessman hands over such a property to a person under a contract to repair and resell in exchange of certain fees. The fees can vary depending on how experienced is the person in the business and what is the condition of the property

Understand Bird-Dogging; In other words, bird-dogging gets you income with no risks involved. It is an easy way of making money in the real estate market, of course for those with strong conviction. People who bird-dog are in constant search for abandoned properties or those lying unused over a period. After identifying such properties, bird-dogs locate their owners and find out if they are willing to sell their properties. In which case, the owners are willing to sell such properties. The bird dog shows them to the potential investors. If the investor likes the real estate property, he will pay certain fees to the finder of the property or the bird dog.

Become a Bird-Dog; The first step towards becoming a bird dog is to find a company that is engaged in the business of buying houses. You can find plenty of such companies in the yellow pages or in the newspaper advertisements. It is however advisable to approach an investor who enjoys a reputation in the market.

After locating such companies, you can ask them to assign you a specific area, so that you can concentrate properties only in that particular area. Then you need to visit the assigned area regularly to look out for ?For Sale? signs. Check for both rental and ownership accommodations.

Patience will fetch you Money; Do not be disappointed if your first few findings are turned down. The skill of bird-dogging is acquired gradually. Hence, remain motivated and with time, you will get a feel of what the investors look out for in a property. Once you master the skill, your success will know no boundaries.

Real Estate Investing LIES Unveiled

Real Estate Investing is not about doing flips, No Money Down or even 'buy and hold'. So many people have been LIED to about Real Estate investments, and I, for one, think it's time to 'get real' about your Real Estate Investing.

This article describes just what these lies are, where they come from and how you can stop them before they stop you - and your successful real estate investing career!

Let's get REAL about something - and quelch the LIES you have been told about Real Estate Investing?

What I am going to reveal to you are some basic truths about Real Estate investing - truths that may totally affect the Real Estate investments you have now - and certainly I intend to modify the way you do Real Estate investing in the future.

Let's get right to it - and into the heart of the real estate investing issue?

You have been programmed all your life to become what you are today - from school, friends, relatives and, yes, your parents.

Recent studies show that you are who you are now, more from what you learned prior to age 8 than in anything else you have learned since.

Now, that may surprise you, but it is true that what you learned at the earliest ages affects the way you make Real Estate investments today, and the type of Real Estate investing success you will have going forward!

Yes, that's a bit shocking?

You see, if you grew up in an environment where you heard things like ?We can't afford it?, ?Be sure you have saved enough and have the cash to buy it (i.e., never use credit)? or numerous other phrases that you now hear yourself saying (you know what I'm talking about - those times you catch yourself "becoming your parents"?), it is because of your early programming (from 0-8 years) and what you were told about money, success and life in general.

Foreclosure Investing Funding

Funding is a critical part of any business, whether it is a real estate investing business or some other type of business. In this article I describe some ways to fund your foreclosure investing deals.

A business won?t last long without the funding it needs to stay afloat and to conduct business. In the business of creative real estate it?s important to have that funding in place as quickly as possible and as accessible as possible.

Realize, though, that it will take time to find people so start now and remember it will take a track record to get your private money. That being said if you find the right deal you can find the money. The right deal would be 70% Loan-To-Value after repairs. There are many strategies to secure the funding you need to lock in good deals like that.

When I first began as a real estate investor I neglected the importance of having funding in place so I could pull the trigger on deals as they came up. Where was I going to find the money to fund the deals I would always ask myself? I saw many other investors doing deals and having the funding in place.

I went through the basic avenues of where to get money. Where is the one place that everyone thinks they can get money? A bank, right?

I came to find out that is the wrong answer. What is the preoccupation with banks in this country? I can only figure that is the way people have been trained. My thought is that there must be a reason why many of the tallest buildings in any given town have the name of banks on them. I don?t want to fund those buildings or those names on them.

In my entire career as a full-time real estate investor I have never used a bank to fund any of my deals. There are other ways you can fund your deals besides a bank.

If your house has enough equity you can take out a home equity loan where you write yourself a check against the equity in your house. You can also open a line of credit on your house. You can create partnerships with other investors where you can share a percentage of the profits.

Credit Help for Real Estate Financing: Credit Scores

When you buy real estate, lenders run all of the "big three" credit bureau reports. Each credit reporting agency lists your credit history as supplied to them by the individual lenders and includes governmental records. Each report assigns a credit score number to you. The credit scores reflect your theoretical risk of default to the lending institutions.

Software developed by Fair Isaac and Company generates your "FICO score." Experian uses a system called Fair Isaac Risk Model, a computer program which rates you with a score according to Experian?s information. Equifax bases scores on BEACON programs and TransUnion bases scores on EMPIRICA models.

Your Baseline

You have three credit scores, often called FICO scores, one from each credit bureau. The lender takes the middle score as your baseline. Lenders have different standards, but generally a "C" score is around 500 to 600, a "B" is around 600 to 680, and an "A-" is above 680. Over 700 is the magical number that gets you the attention you desire. If your score is under 500, find someone to privately finance for you or a partner with good credit while you work on improving your score.

How Lenders Rate You

Credit score Available mortgage financing
720 - 800 Superb! You get what you want
700 - 719 Wonderful! You get top rates & terms
680 - 699 Good! You get good rates & terms
660 - 679 All right. You pay higher costs & rates
640 - 659 Okay score if good income
620 - 639 Weak. You need good income & some money
600 - 619 Poor. Use creative loan broker & pay more loan costs
580 - 599 Almost impossible without large down payment
Under 580 Work on fixing credit without delay

What Does Not Count In Your Credit Score

The scoring model doesn't compute:

Age & gender
Race
Whether you own a home or rent
Length of time at your current address
Job or length of employment at your job
Income
Education
Marital status
Whether or not you've been turned down for credit.

Real estate lenders don't just consider your credit score when you apply for mortgage financing. Understanding your credit score helps you with this one part of your mortgage requirements.

Copyright ? 2005 Jeanette J. Fisher - All Rights Reserved.

Professor Jeanette Fisher, author of "Credit Help! Get the Credit You Need to Buy Real Estate," "Doghouse to Dollhouse for Dollars," and other books teaches Real Estate Investing and Design Psychology. For more articles, tips, reports, and newsletters,

Las Vegas Real Estate Financing-A Quick Overview

Whether you?re thinking of moving to Vegas with your family or considering investing in some commercial property there are plenty of companies specializing in Las Vegas real estate financing that can help ? Here?s a quick overview.

Who and where you get financing will depend on what type of housing you are looking at. Single family dwellings, condos, and townhomes all qualify for different types of financing.

There are financial institutes that specialize in the residential Las Vegas real estate financing needs. Down payments, interest rates, and terms all depend on a number of factors. Besides traditional mortgages there are other types of Las Vegas real estate financing available that have relaxed down payments, relaxed terms, and even relaxed credit requirements.

Besides the residential market there are investments in commercial properties and once again there are Las Vegas real estate financing options that aren?t always traditional.

One of the reasons that Las Vegas real estate financing has more flexibility is that there is an unwritten understanding that income can come from a variety of sources and not all income may be reported on the tax form. Right or wrong it isn?t up to the company?s that have Las Vegas real estate financing on their minds to decide. They just want to lend money and make money.

And there is some great news for anyone that has had some credit troubles in the past and thus considered a higher risk. You will have no problem obtaining financing through one of the many Las Vegas real estate financing conglomerates. They?ll simply charge you a higher rate of interest, give you less flexibility on defaulting, and be happy to take the property back if you miss a payment. And you too can earn a piece of Las Vegas.

When it comes to Las Vegas real estate financing these institutes are also happy to base their loan to you on your declared income. There is no need to provide a pay stub or proof of employment. That means that if you want to own a home in the Vegas area there?s a very good chance that you can using a Las Vegas real estate financing institute.

Now if you are about to play with the big boys down on the strip and invest in some commercial properly your Las Vegas real estate financing agent is going to come from a different deck of cards. Generally speaking those that deal in Las Vegas real estate financing for residential purposes don?t play in commercial.

Commercial loans require different down payments, different collateral, and different requirements to obtain the loan. Each circumstance is different so you?ll need to make an appointment with a an agent that deals with Las Vegas real estate financing on the commercial end to see what they can do for you.

World stocks rise in thin trade, bond yields fall

NEW YORK: US stocks were mostly higher in thin trade on Friday, as investors eyed retail sales on the first day of the shopping season after the Thanksgiving Day holiday, to gauge the extent of weakening consumer demand.

European and Asian shares were also higher, despite the attacks in Mumbai, India, while U.S. Treasury debt prices and the U.S. dollar both gained as investors continued to look for safe-havens as global economic growth slows.

The U.S. holiday weekend will test the strength of consumer sentiment, a main driver of the U.S. economy, as the country faces its worst financial crisis since the Great Depression. If the U.S. consumer fails to buy, companies across the globe can expect to see fewer exports and profits.

The Dow Jones industrial average rose 32.42 points, or 0.4 percent, to 8,759.03. The Standard & Poor's 500 Index rose 0.66 points, or 0.1 percent, at 888.34. The Nasdaq Composite Index shed 11.99 points, or 0.8 percent, to 1,520.11.

The S&P's retail index dipped 2.3 percent.

The U.S. stock market was closed Thursday for the Thanksgiving holiday and is trading for half the day on Friday. On Wednesday, stocks ended higher, capping the Dow's biggest four-day percentage gain since 1932.

Technology shares slid after signs of a downturn in global chip demand as STMicroelectronics cut its fourth-quarter outlook. Industry sources said Taiwan companies want to slash costs. The semiconductor index shed 1.1 percent.

U.S. airline shares fall on murky demand outlook

CHICAGO (Reuters) - Shares of U.S. airlines tumbled on Monday on speculation that bookings may suffer more now that the nation's economy has officially been declared to be in recession.

Losses for the Amex airline index .XAL were 8.67 percent in afternoon trade despite an 8 percent drop in the price of crude oil.

The slump in airline stocks outpaced the Dow Jones industrial average .DJI, which shed 5.27 percent, as market watchers questioned the resilience of travel demand in a weak economy.

"Is consumer demand going to fall off? Are there going to be fewer passengers," said Basili Alukos, equity analyst at Morningstar.

UAL Corp (UAUA.O:), parent of United Airlines, saw its stock fall steeper than other airlines' on news that the company has offered $200 million in shares.

UAL shares were down 21.42 percent at $8.84 on Nasdaq. Shares of US Airways Group (LCC.N:) were down 14.77 percent at $5.08 on the New York Stock Exchange.

Delta Air Lines (DAL.N:) shares were down 10.44 percent at $7.89 on the NYSE.

(Reporting by Kyle Peterson; Editing by Bernard Orr)

Real-time Profit & Loss

Instant access to P&L and positions is critical to certain trading strategies. “VuStream”, a component of Fund-Studio, is a real-time P&L Meter and Dashboard. VuStream helps complete the feedback cycle from the middle-office and back-office back to the trading desk by providing, in real-time, profit and loss data across a diverse set of asset classes, as well as providing a portal for other custom/proprietary data in an easy to use dashboard format. VuStream collects and aggregates streams of position, price, valuation, risk and custom data feeds, performs P&L calculations, roll-ups and other custom bucketing operations, and distributes the results to viewers situated on traders’ desks or within middle and back office. Pivots and cubes... in real-time!

VuStream supports multiple, user-configurable views which are defined using a drag-and-drop “pivot-table” paradigm and allow virtually unlimited “slicing and dicing” and filtering of data, all in real-time. VuStream can be used by Traders, to show time-critical information about their portfolios, or by middle and back office to show aggregated views across multiple portfolios, accounts, strategies and the like. VuStream supports authentication and access-rights, to limit which users have visibility to which positions. For customers with an existing portfolio system, VuStream can be deployed independently of Fund-Studio as a stand-alone module that integrates to your existing systems.

About Commercial Banking

Our business is superbly positioned in Asia to help enterprises boost cash flow efficiencies

Our full range of award-winning, innovative solutions and services are among the most comprehensive in the world and will help you to better manage, as well as grow, your personal and business wealth locally, regionally and globally.

Forex VS Stock

Unparalleled liquidity
In the forex market, over $3.2 trillion worth of trades are traded daily, which makes the currency trading market the most liquid market in the world – trading in 1 day what Wall St. trades in 1 month. No matter what time of the day or night it is, the forex market is always moving, and around the world active traders are buying and selling currencies.

200 times more leverage than trading stocks
With stocks, the maximum leverage is 2:1. But when you trade Forex with CMS Forex, you can use up to 400:1 leverage. For example, if you invest $1,000 in stocks, with 2:1 leverage you may buy up to $2,000 worth of shares. However, if you invest $1,000 margin on a foreign currency trade, at 400:1 leverage, you can control up to $400,000 in currencies. Leverage is one of the most appealing and risky factors of the forex market. Traders should note that trading using leverage may increase potential gains as well as losses on any given trade.

Scratch-out the middleman
Spot currency trading bypasses expensive middlemen that are always associated with trading stocks. With forex, clients are able to interact directly with the currency market, and can buy and sell at the simple click of a mouse. No mess. No hassle. No middleman.

Commission-free*
With CMS Forex, you are never charged a commission. No clearing fees. No exchange fees. No Software fees. No brokerage fees.

*CMS charges no commission on your trades; we are compensated through the Bid and Ask prices or spread of a given currency pair. We may charge a fee for fund withdrawals. Please see Withdrawal of Funds for more information. Please be aware that the bank you deal with may be charging fees on your deposits or withdrawals. CMS has no control over any applicable bank fees.

Forex and the technical trader
Because currencies typically develop strong trending patterns, a technical currency trader may potentially identify new trends, breakouts, and opportunities to enter and exit positions.

Measuring the currency market
Currency prices are reflected in the balance of supply and demand for currencies. When it comes to currencies, there are two primary factors that affect supply and demand and they are interest rates and the strength of the originating country’s economy as a whole. Fundamental indicators, such as foreign investment, PPI, CPI, GDP, and the trade balance, echo the overall health of the economy, and alter the supply and demand for that currency. Expert commentaries and data on interest rates, International trade, and currencies are release on a regular basis.

Trade forex 24-hours a day
When you are looking at your forex platform, you are actually looking at a window display of the world’s economy. Currency trading is available twenty-four hours a day, starting on Sunday at 5P.M. EST with the opening of the market in Sydney and Singapore. A short while after, the Tokyo market opens. Then London, which opens at 2A.M. EST on Monday. And, by daytime in N.Y., the currency market has already been very active for fifteen hours. With currency trading, you are able to decide when to trade. Trading stocks when the U.S. markets are closed is difficult and only offers limited liquidity. With forex, you can trade twenty-four hours a day, from Sunday at 5P.M. EST. until Friday at 5P.M EST.

6 major currency pairs vs. over 8000 stocks
There are approximately 8,000 publicly traded companies, deciding which one to trade can become downright tedious and confusing. How do you determine which needle to pull out of the haystack? With Forex, there are currently 6 major currency pairs to choose from, and about 34 second-tier currencies.

Superior Software
CMS Forex began in 1999. Since then, our team of professional forex specialists has spent many late nights improving our software and services to guarantee a simplified, all-inclusive forex system that enables users to make the most educated decisions possible – providing over 100 tools and technical indicators, as well as streaming Reuters News to cover necessary fundamental updates that impact the forex market. We offer advanced chart-based trading, streaming price quotes, custom alerts, as well as the ability to create an automated trading system (so you can pre-program your system to buy or sell at specified market occurrences). Through VT Trader, users are able to connect directly with the live currency market on a stable platform that has been made to make your currency trading as intuitive as possible

U.S. Non-Farm Payrolls Falls The Most Since 1974, Unemployment Rate Hits 15-Year High Friday, 05 December 2008 12:52:32 GMT

U.S. Non-Farm Payrolls fell the most in 34 years as the economy lost 533K jobs in November, which raised the total number of job losses in 2008 to 1.91M.

U.S. Non-Farm Payrolls fell the most in 34 years as the economy lost 533K jobs in November, which raised the total number of job losses in 2008 to 1.91M. In addition, the previous reading was revised sharply lower to -320K from an initial reading of -240K in October, and the considerable drop raised the unemployment rate to fifteen-year high of 6.7% from 6.5% in the prior month. Market participants were expecting the jobless rate to hit 6.8%, which indicates that an increasing number of workers are leaving the job force as the economy faces its longest recession in a quarter century. The data suggests that firms are becoming increasingly pessimistic towards the economy as the financial crisis drags on the real economy, and conditions may only get worse as firms continue to cutback on employment. Meanwhile, the U.S. dollar weakened against the euro initially following the release, but turned around as risk trends continue to drive price action in the forex market.

The outlook for the British pound looks

The outlook for the British pound looks dim as the Bank of England is widely anticipated to follow up their October 8 and November 6 rate cuts with yet another aggressive reduction on Thursday morning. Currently, the markets are betting on a 100bp cut to 2.00%, which would bring the Bank Rate its lowest level since 1939. However, the BOE's subsequent monetary policy statement will be just as important, as it will provide a gauge as to what the central bank will do next, and may determine the British pound's next move.

The Bank of England is widely anticipated to follow up their October 8 and November 6 rate cuts with yet another aggressive reduction at 7:00 ET on December 4. As of November 26, a Bloomberg News poll shows that the majority of economists surveyed thought that the BOE would reduce the Bank Rate by either 50 or 100 basis points, with the consensus forecast calling for the latter. Likewise, Credit Suisse overnight index swaps are fully pricing in a 100 basis point cut, and it seems increasingly likely that the BOE will slash the Bank Rate to the lowest since 1939, when rates were at 2.00%.

Bank of England Voting History Since August 2007



The BOE’s upcoming decision will be just one of many efforts put forth in an attempt to prevent the UK economy from falling into a prolonged recession, as Chancellor of the Exchequer Alistair Darling downgraded growth forecasts during his pre-budget report on November 24 to 0.75 percent in 2008, between -0.75 and -1.25 percent in 2009, and between 1.5 to 2 percent in 2010. Chancellor Darling also announced a £20 billion fiscal stimulus plan, which calls for a cut to the Value Added Tax (VAT) to 15 percent from 17.5 percent, boosts to state pensions and child benefits, extensions of employment support, and a housing support package, among other things. In order to accommodate for some of these costs, Chancellor Darling said that after April 2011 those earning at least £150,000 a year would face an income tax of 45 percent.

USD, JPY Drift Lower, RBA Cuts 100-bp

The dollar relinquished ground against the majors, slipping to 1.2765 versus the euro and near the 0.65-handle against the Aussie. Crude oil extended its losses amid decelerating demand as a result of the sharp slowdown in global economic growth, dropping to its lowest level in 3 ½ years to $46.82. Global equity bourses rebounded in the Tuesday session, prompting currency traders to jump back into higher-yielding currencies and sending both the greenback and the yen lower.

The Bank of Japan held an emergency policy meeting, leaving policy unchanged but moved to further alleviate tightening credit conditions, announcing it would broaden the range of collateral to accept for up to 3-months. With the BoJ’s benchmark lending rate hovering near zero, the Bank continues to explore alternative methods to jump start the economy.

The key highlights for the remainder of the week will be the policy decisions from the ECB and the BoE, as well as the labor report from the US on Friday. Both the ECB and BoE are anticipated to cut rates aggressively near the end of the week, with markets expecting 50-basis point rate cuts. We look for the greenback to remain buoyed heading into the end of the year and expect the recent strength in the euro and Aussie to be short-lived.

The dollar relinquished ground against the majors, slipping to 1.2765 versus the euro and near the 0.65-handle against the Aussie. Crude oil extended

The dollar held its ground on Monday, taking advantage of the ultra-thin volumes owing to U.S. and UK market holidays to arrest its decline of the last three weeks and eke out slender gains against a basket of major currencies.

"This is only due to the iliquid markets," said Carole Laulhere, currency strategist at Societe Generale in Paris.

"The dollar should stay quite vulnerable this week. We still have record oil prices, which is negative for the dollar, and U.S. equity markets are worsening, which is also a concern for the greenback."

Crude oil has soared almost 40 percent so far this year -- over 17 percent in May alone -- to record levels above $135 a barrel . This is fanning fears over the ability of U.S. consumers and businesses to weather the credit- and housing market-led economic storm and prevent the economy from sliding into full-blown recession.

The dollar index hit a one-month low last Thursday, and the S&P 500 equity index posted its biggest one-week decline since early February.

Deteriorating equity markets and rampant oil prices -- which provide the backdrop for the latest euro zone consumer price inflation figures this week -- should be the focus for currency investors this week, Laulhere said.

At 0930 GMT the dollar index was up a slender 0.1 percent on the day at 72.065 <.DXY>, but still within sight of one-month lows of 71.823 struck last week.

Learn To Forex Trade

FOREX (the Foreign Exchange market) is an international market where participants speculate on the value of different currencies, buying and selling dollars, pounds, euros, and other currencies.

There are only a few major currencies to follow, compared to hundreds of stocks in the equities market. In order to get started understanding Forex, sign up for a free practice account today and learn as you trade!

Trading risk free with a practice account is the best way to get familiar with this ever-growing market. And once you are signed up, CMS Forex will provide you with thorough educational resources to guide you along the way.

So don't wait, take this opportunity to get started trading Forex!

Experience A Smart Way to Trade Currency

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FX market

FX Markets
The FX market is the largest global market with daily trading volumes greater than USD 3 trillion! It is currently one of the most efficient and liquid markets accessible.
TFI FX offers its clients the ability to make speculative transactions on FX fluctuations between currencies. Customers can also buy/sell deliverable currency to cover FX obligations.

In the last decade the foreign exchange market has developed and expanded. Originally banks executed FX deals to cover the need of their importing/exporting clients. Today we are in an efficient FX market with a variety of participants ranging from investment firms, asset managers, hedge funds and individuals that cater for trading and speculation requirements.

The FX market is a global over the counter (OTC) market (i.e. no central bank or clearing house acting as an intermediary). Deals are agreed between participants where firm credibility and local regulations ensure the delivery of transactions.

A number of market contributors execute FX deals to finance international business so as to acquire a range of assets and services. Others sell/buy currencies for speculation aiming to profit from price fluctuations. The international demand and supply for currencies is what determines the exchange rates of all currency pairs at any given moment

CFS financing average interest rate drops down to 39pc

KARACHI: Karachi Stock Exchange (KSE) CFS financing average interest rate this week declining by 50 percent pegged at 39 percent.

KSE released figures said that KSE CFS financing this week declining by 0.60 percent amounted to Rs11 billion, while the average interest rate came reeling down by 50 percent to 39 percent. CFS financing interest rate this week on NIB shares stood at 100 percent, while among the other prominent companies in the financing included JSCL, OGDCL, National Bank. Arif Habib Securities and Pakistan Oil Fields.

China to increase money supply to boost his economy

BEIJING: China said it plans to increase the amount of money circulating in its economy next year in a new effort to spur consumer spending and shield the country from a global downturn.

The announcement by the country's State Council, or Cabinet, comes on the heels of a multi billion-dollar economic stimulus package announced last month that calls for injecting more government money into the economy through spending on construction and other projects.

There are mounting signs that China's economic slowdown is sharper and deeper than expected. Exports fell in November for the first time in seven years and the industry minister warned Friday that worse was to come.

China will increase its money supply by 17 percent next year, the Cabinet said in a statement on its Web site. It said that would be 3 to 4 percentage points above the total growth of economic output and consumer prices.

Stock market turmoil to hit banks

KARACHI: The current equity market turmoil has raised concerns over its impact on various stakeholders, particularly the banking sector, which carries substantial exposure through a combination of direct investment, margin financing and CFS financing.

“The banking sector is already going through a tough phase due to declining deposit growth and rising bad loans because of high interest rates and credit crunch. Our estimates suggest that banks have an exposure in the range of Rs100-150 billion in the stock market, which is 20-25 per cent of their equity base,” stated Farhan Rizvi, analyst at JS Research, in a report.

With the Karachi Stock Exchange index already down 24 per cent since the lifting of floor on Dec 15, “we think further erosion in the sector’s book value along with capital adequacy ratio (CAR). Moreover, default on margin financing and Continuous Funding System (CFS) exposures also remain significant risks for the sector.”

US stocks narrowly mixed as oil prices rise

NEW YORK: Wall Street was little changed in early trading Monday as crude prices rose on concerns that Israel's attack on Gazamight disrupt oil production and shipments from the Middle East.

Oil rose near $40 a barrel Monday after the conflict between Israel and Gaza's Hamas rulers raised tensions in the Middle East. Light, sweet crude rose $1.24 to $38.96 a barrel on the New York Mercantile Exchange.

The advance in oil was welcome for some investors who have worried that plunging prices signaled a long and severe recession. Oil has fallen more than $100 from its peak of $147.27 a barrel on July 11 as a slowing economy curbed demand. The increase helped oil companies, with Exxon Mobil Corp. shares up more than 1 percent.

However, investors also digested a potential blow to dealmakingon Wall Street. On Sunday, Kuwait's government canceled its $17.4billion K-Dow Petrochemicals joint venture with Dow Chemical Co., saying it was ``very risky'' because of the global financial crisis and low oil prices. The joint venture was set to begin Thursday.

Rohm & Haas Co. maintains that its proposed $15.3 billion takeover by Dow Chemical won't be affected by Dow's substantial loss of income from the venture. But investors punished shares, driving them down more than 20 percent to $50.61, compared with their Friday close of $63.56. Dow Chemical shares lost almost 9 percent.

The Dow Jones industrial average rose 5.49, or 0.06 percent, to 8,521.04.

Broader indexes were mixed. The Standard & Poor's 500 index rose0.22, or 0.03 percent, to 873.02; the Nasdaq composite index fell1.35, or 0.09 percent, to 1,528.89.

The year 2008—worst for the global economy

The year 2008—worst for the global economy KARACHI: The year 2008 proved to be the worst for global economy, as the year saw even giant multi-nationals going bankrupt, unleashing joblessness and the rate of unemployment skyrocketing.

The US sub-prime loan gave rise to the financial crisis. Sub-prime loans are given to those, who are under financial stress and as they were given financial help at an astronomical rate of interests, its payment turned impossible for them, which kept piling up and the loans continued swelling up. In March 2008, US financial organization Bear Stearns was the first to get hit, which later on was sold to JPs Morgan for $29 billion. Following that the US administration provided $300 billion bailout package to the Federal Housing Management so that the mortgaged securities could be bought. Later on, the Federal Department bought for $200 billion housing loans providing Fenniman and Frederick Mack. Despite having spent $500 billion, the imbroglio could not be brought under control, when in September 2008 US Investment Bank Leman Brothers formally announced its bankruptcy, followed by several US financial institutions went tumbling down in the tremors. Global financial management and investors’ consultants, Invest Company Merrill Lynch got struck by financial crunch, which resulted in Bank of America buying it for $50 billion, while the US government permitted the amalgamation of Goldman Sak and Morgan Stanley and provided loans on hard terms under bailout package of $150 billion for salvaging the largest US insurance company AIG.

Investors’ confidence could not be restored even after providing of $700 billion bailout package for surmounting the financial crisis, which saw the global stock markets also sinking. Following the US, all other countries in the world began announcing bailout packages for overcoming the great crisis, which included Britain’s $656 billion,

Oil prices higher in Asia on Mideast conflict

SINGAPORE: World oil prices rose in Asian trade Monday afternoon, fuelled by the ongoing conflict in the Middle East after Israel stepped up its military onslaught on Gaza, analysts said.

New York's main contract, light sweet crude for February delivery, was up 1.21 dollars to 47.55 dollars a barrel in the afternoon. The contract closed 1.74 dollars higher at 46.34 Friday on the New York Mercantile Exchange. Brent North Sea crude for February delivery was trading 81 cents higher at 47.72 dollars in afternoon trade Monday. It closed Friday 1.32 dollars higher at 46.91 dollars. "The Gaza conflict added to the geopolitical risk premium embodied in the oil price," said David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia. Israel poured ground troops into Gaza late on Saturday, stepping up an eight day long bombing campaign of Hamas targets, aimed at ending the Islamist movement's rocket attacks across the border. Despite the spike in oil prices, analysts said the rally was likely unsustainable because of low energy demand caused by a weak global economy.

Oil price rises on Gaza conflict

The price of oil has risen briefly on fears of heightened tension in the Middle East following Israel's offensive in the Gaza Strip.
US light, sweet crude peaked at $48.68 a barrel, before falling back to trade at $46.44, up 10 cents on the day.http://newsimg.bbc.co.uk/media/images/45345000/jpg/_45345416_006673442-1.jpg

The price of Brent crude was down one cent at $46.90 a barrel.

Opec sources have said that is is highly unlikely that the oil producers' cartel will follow Iran's call to boycott supporters of Israel.

Among Opec's biggest producers are Saudi Arabia, Kuwait and the United Arab Emirates, all of which have good relations with the United States.

Production cuts

An Iranian military commander had suggested earlier that oil supplies should be withheld to put pressure on Israel's allies.

Separately, Iran's OPEC representative Mohammad Ali Khatibi said that the cartel would hold an extraordinary meeting in Kuwait in February.

OPEC has already agreed to production cuts of 4.2 million barrels per day, but prices have not risen in response.

There remains concern among traders about how severely the deepening downturn will reduce global demand for oil.

Traders have also been worried about the continuing gas dispute between Russia and Ukraine.

Several EU countries have reported a drop in supplies after Russia cut off gas to Ukraine on New Year's Day in a row over unpaid bills and a new price contract.

About CMS Forex

CMS Forex was founded by professional Forex traders, Forex brokers, and software developers, and as a result has been able to identify traders’ needs from the very beginning. Since 1999, CMS Forex’s mission has been to provide the most powerful currency trading technology combined with quality execution, competitive services, and dependable customer service. Over the past seven years, CMS Forex has quickly become one of the world’s leading online retail currency trading institutions, providing secure, user-friendly Forex trading software.

CMS Forex is positioned as an industry leader in the Forex marketplace and continues its growth while striving to provide its clients the best trading environment. Based out of New York, CMS Forex and its affiliates now have offices in Boston, Tokyo, Bermuda, Saint Petersburg, and Shanghai. Bermuda’s Capital Market Services International and CMS Japan were created to strengthen global reach and better cater to our international clients.

CMS Forex strives to serve both the retail and institutional segment of the Forex community. Its commitment to providing innovative currency trading technology, fair dealing practices, and excellent customer service establishes CMS Forex as a major force that traders look to for advanced Forex charting, up-to-date Forex news, and informative Forex education.

WHAT IS FOREX CURRENCY TRADING?

f you read about investing, you've seen the word forex trading. But because forex doesn't get much publicity in the major publications and websites, many investors don't know that forex just short for "foreign exchange". So trading the forex market is simply trading foreign currencies.

As recently as ten years ago, currency trading had high barriers to entry, so only large banking and institutional firms had access to the tools and systems required to play in the forex trading game. Recently, however, technology has developed to the point that any individual investor can hop right in and trade with one of the many online platforms.

When buying and selling in the forex currency trading system market, you'll see that there are four "currency pairs" that dominate the percentage of trades. Those four are the Euro vs U.S. Dollar, US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, and US Dollar vs British Pound.

The goal when investing in currency is to be holding a currency that appreciates in value in relation to the other currencies. To use an overly simplistic example, if you bought 50 British Pounds for 100 US Dollars, held the Pounds for 1 week, and in that period the value of Pounds increased in relation to US Dollars, you could then convert those Pounds back into dollars for, say, $120.

Unlike the domestic stock markets, the forex currency trading is open for trades 24 hours a day. Much like the phrase "it's always noon somewhere," it's always business hours at some region of the globe. Since every country trades on the FX market, and it's open all day, the daily volume is roughly $1.2 trillion, which dwarfs that of the NYSE. Another comparison to make in order to truly realize the magnitude of the Forex market is with the currency futures market (which has around 1% of the daily volume).

One other important distinction to make is that forex currency trading is not centered on an exchange like the NYSE or NASDAQ. There is no central body or organization required to act as middleman. Trading circulates between major banking centers around the world.

How to Trade Forex

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

LEARN TO TRADE FOREX

FOREX (the Foreign Exchange market) is an international market where participants speculate on the value of different currencies, buying and selling dollars, pounds, euros, and other currencies.

There are only a few major currencies to follow, compared to hundreds of stocks in the equities market. In order to get started understanding Forex, sign up for a free practice account today and learn as you trade!

Trading risk free with a practice account is the best way to get familiar with this ever-growing market. And once you are signed up, CMS Forex will provide you with thorough educational resources to guide you along the way.

So don't wait, take this opportunity to get started trading Forex!

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Manager/Market Strategist, Saxo Bank

David Karsbøl holds a Master of Science degree (Economics) from the University of Copenhagen and has previously been employed as an insurance analyst. Mr Karsbøl works with fundamental analysis and research and contributes to Saxo Bank's strategy products. He also develops and maintains macroeconomic models and a number of trading models, which are designed to profit from co-variations between the Forex and fixed income markets. Mr Karsbøl is regularly appears on major financial news networks and comments several days a week on the financial markets via Saxo Bank's live Market Call webcast. He is a native Danish speaker and is fluent in English.

John J. Hardy

Asset Management, Saxo Bank

John Hardy publishes daily comments on the Forex market. Mr Hardy's analysis attempts to overlay short term technical developments and fundamental event risks with longer term themes and trends in the G-10 currencies. Mr Hardy considers inter-market correlations as paramount in understanding moves in the Forex space, so the analysis draws on a number of models based on other markets and gauges their correlation with Forex markets in an attempt to detect inefficiencies that may provide trading opportunities.

Why should I learn Forex currency trading?

By reaching to our website, I think you are already aware that Forex trading is a good way to make money at home. More over, I bet you knew someone, or would have heard of someone, who's already making tons of good money in FX trading.

But what you wouldn't know is that 7 out of 10 traders keep losing money in Forex market! That's right, 70% of individual FX traders keep losing their hard-earned money in the market; while the rest of the 30% work freely at home and earn millions annually)

Wonder what differs between the losing 70% and the winning 30%? Forex trading skills and the trading system! If you want to work less than 20 hours a day at home, if you want to make millions by trading freely at home, if you want to have financial freedom by trading Forex; you better LEARN Forex trading before you start trading Forex. Forex market is definitely not a game for newbie and you need to brush up your skills before getting your hands wet.

Forex Trading Basics

The global foreign exchange market is the biggest market in the world. The 3.2 trillion USD daily turnover dwarfs the combined turnover of all the world's stock and bond markets.

There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading.

Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.

In the following article, we would like to introduce you to some of the basic concepts of foreign exchange trading. If you would like any further information, we suggest that you sign up for a on this website, where you will be able to exchange views with other Forex traders and get answers to any questions you might have.

Base Currency and Variable Currency

When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell euro. Or buy euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening in relation to the other.

The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Singapore dollars, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD 1,000,000. When closing the position, the opposite trade is done, again USD 1,000,000. The profit or loss will be apparent in the change of the amount of SGD credited and debited for the two transactions. In other words, your profit or loss will be denominated in SGD, which is known as the price currency. As part of our service, Saxo Bank will automatically exchange your profits and losses into your base currency if you require this.

Forex trading examples 1

An investor has a margin deposit with Saxo Bank of USD 100,000.

The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.

The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.

Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.

Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.

Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.

Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.

As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the profit calculation.

This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.

Forex trading examples 2

The investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).

The dealer quotes 112.05-10. The investor sells EUR at 112.05.

Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.

He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.

Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.

The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.

This results in a loss of JPY 0.55m = approx. USD 5,300 (USD/JPY 105) = 5.3% loss on the original deposit of USD 100,000.