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[hurry]

hello,
i am looking to deposit funds for 'forex trading'(CMS trading Platform NEW YORK) and i am exploring possible modes of payment. The following is in regard to 'wire trasfer' form india -abroad,however i am unclear as to what is meant by
<<<<<<<resident cannot make remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterparty that includes trading in futures and derivatives>>>>>>>>>>>
Does forex trading come under that category? (margins)

Outward Remittance FAQs from ICICI BANK

What are the purposes for which remittance can be made under the USD 100,000 scheme?

This facility is available for making remittances for any permissible current or capital account transactions or combination of both. It is not available for purposes specifically prohibited (Schedule I) or regulated by the Government of India ( Schedule II) of Foreign Exchange Management (Current Account Transactions) Rules, 2000. Under this facility, resident individuals can freely acquire and hold immovable property, shares or any other asset outside India without prior approval of Reserve Bank of India. However, under this facility resident cannot make remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterparty that includes trading in futures and derivatives.

thank -you

 

[Shantanu005]

few doubts ...

Hello,

I would like to clarify a few things:

# How do you establish your trend?

# While swing trading, what is the ideal stop loss?

Thanks,

 

[jjshah]

Re: few doubts ...

Hello,

I would like to clarify a few things:

# How do you establish your trend?

# While swing trading, what is the ideal stop loss?

Thanks,

I generally use channels and trend lines and one very easy thing higher high and higher lows means uptrend. not that hard. I use support and resistance and previous swing lows and highs for my stop loss.so I don't use static stop loss.

 

[hurry]

Dear Trader:

The Forex industry could be in for a major structural change soon.

This change has the potential to benefit Forex Capital Markets, LLC (FXCM); however, we believe many forex brokers may not survive.

Our industrys regulating agency, the National Futures Association (NFA), has proposed new financial requirements for every Forex Dealer Member (FDM). Spelled out in their Request for Comments on Forex Proposals, dated June 19, 2007, the NFAs proposed requirements call for the following:

* All FDMs must maintain at all times a net worth of $5 million;
* Larger FDMs, particularly those that have a dealing desk, could potentially face net excess capital requirements significantly higher than the minimum under the proposed new rules;
* Where appropriate, the NFA may require an FDMs annual financial statement to be certified by an independent public accountant.

FXCMs current financial situation well exceeds NFAs proposed requirements.

As of June 30, 2007, FXCM has over $44 million in adjusted net capital, and for the last six years we have had our financial statements audited by an independent, certified public accounting firm.

We believe the NFA is proposing these requirements because of the troubling number of insolvencies and near-insolvencies that have recently plagued the forex industry. According to the NFA:

* In 2003, a Forex Dealer Member misappropriated almost $2 million in customer funds, driving the company into bankruptcy. (The CFTC is currently attempting to salvage some of the customers' funds.)
* Since March of this year, eight different FDMs have fallen under the early warning requirement of $1.5 million.
* More recently, NFA took a Member Responsibility Action ("MRA") against an FDM whose liabilities exceeded its assets by over $1 million.

Industry-wide, there is now concern that some Forex Dealer Members may be unable to meet their financial obligations to customers in the event the increased capital requirements take effect. A review of the current net capital positions of the 43 Forex Dealer Members available on the following CFTC web page clearly demonstrates that this concern is justified. View CFTC Web Page

As you can see from the financial data compiled by the CFTC, FXCM reports an adjusted net capital of over $44 millionfar greater than the proposed financial requirement. Based on the most current available CFTC financial data, at least 22 FDMs would not be able to meet the new $5 million minimum net capital requirement. These firms are currently reporting net capital levels below $5 million. If the new capital level is imposed, these firms will either have to obtain more capital or close down. Because larger brokers may also face higher capital requirements, FXCM believes that several of these larger firms may also be unable to meet the new requirements, even though they presently have in excess of $5 million in adjusted net capital.

In the event that some of these firms close downor worse, are shut down by the NFAwe are concerned that customer funds, or at least their timely and orderly repayment, could be jeopardized.

We realize that many forex traders have accounts with multiple forex brokers. That is why we advise you to make sure all your trading accounts are held at firms that are adequately capitalized.

If you have an account with a possibly endangered firm, we believe, depending on when the NFA proposal takes effect, that the time may be fast approaching to consider moving those funds while the opportunity still exists.

Our industry is changing, and the new proposed regulations are intended to put every FDM, and the industry itself, on a more secure financial footing. We welcome the NFAs proposed changes because the effect will ultimately lead to clients trading through regulated brokers that are better capitalized or have access to greater financial resources.

WHAT DO YOU MAKE OF THIS!!!!!!!!!!!

 

[learningcurve]

Dear jjshah,
your internet write up was very good, but it has generated few doubts in my mind. I will be pleased if you clarify these :

1) How to calculate the correlation coefficient between Rupee versus Nifty / Sensex? Can you give an example with it ?

2) What is the effect of increase or decrease in Forex reserves on stock markets ?


3) What is meant by pips in Forex ?

It will be very informative if you start a thread on forex education.

With regards,

Learningcurve

 

[jjshah]

Dear jjshah,
your internet write up was very good, but it has generated few doubts in my mind. I will be pleased if you clarify these :

1) How to calculate the correlation coefficient between Rupee versus Nifty / Sensex? Can you give an example with it ?

2) What is the effect of increase or decrease in Forex reserves on stock markets ?


3) What is meant by pips in Forex ?

It will be very informative if you start a thread on forex education.

With regards,

Learningcurve

I can see many of the readers have some expectation from me. To let you know by no means I am expert in this field. Yes I am making good money from this market but it doesn't mean I know everything about it. I think no one can.I do good what I do.
I never traded stock market for long. I just traded stock market for 3 months and then jump to forex. I live in Australia so I don't have much idea about Indian stock market and how forex affect stock market becoz i don't trade stocks.
Sorry to disappoint some of the readers but let everyone know I am not an expert so don't follow me blindly do your own research as well. Internet is full of information. so work hard.

 

[North Star]

Hi,

I am new here. Can any one tell me if the following can be done:

1. I sell euros in USD-EUR pair.
2. Then I sell USD in another pair - Say JPY-USD.

Can I then offset the dollars sold in account from the dollars bought in the other?

Are there any service providers which allow one to do that?

 

[jjshah]

Hi,

I am new here. Can any one tell me if the following can be done:

1. I sell euros in USD-EUR pair.
2. Then I sell USD in another pair - Say JPY-USD.

Can I then offset the dollars sold in account from the dollars bought in the other?

Are there any service providers which allow one to do that?

i really don't understand what do you mean with this? And why you want to do this? Just for little explanation when you are selling euro in usd-eur pair means you are buying us dollar and when you sell usd in jpy-usd pair you are buying japanese yen. So currency is always traded in pairs.
I don't know this will help but I don't understand your question and why you want to do that?

 

[amarnath]

hello,
i am looking to deposit funds for 'forex trading'(CMS trading Platform NEW YORK) and i am exploring possible modes of payment. The following is in regard to 'wire trasfer' form india -abroad,however i am unclear as to what is meant by
<<<<<<<resident cannot make remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterparty that includes trading in futures and derivatives>>>>>>>>>>>
Does forex trading come under that category? (margins)

Outward Remittance FAQs from ICICI BANK

What are the purposes for which remittance can be made under the USD 100,000 scheme?

This facility is available for making remittances for any permissible current or capital account transactions or combination of both. It is not available for purposes specifically prohibited (Schedule I) or regulated by the Government of India ( Schedule II) of Foreign Exchange Management (Current Account Transactions) Rules, 2000. Under this facility, resident individuals can freely acquire and hold immovable property, shares or any other asset outside India without prior approval of Reserve Bank of India. However, under this facility resident cannot make remittances in the nature of margins or margins calls to overseas exchanges/ overseas counterparty that includes trading in futures and derivatives.

thank -you

Yes retail forex comes under speculative margin based one, so its not legal for Indian resident to trade forex or futures with a OTC or futures broker abroad or here

 

[hurry]

Amarnath many thanks for the reply !

Yes retail forex comes under speculative margin based one, so its not legal for Indian resident to trade forex or futures with a OTC or futures broker abroad or here.
(
But Reliance Money in one of their FAQs says:

Can an Indian National invest/trade in the Forex Market?

Yes. After RBIs circular dated November 04, 2004 on Liberalized Remittance Scheme of USD 25,000 Indian Individuals may freely remit up to $25,000 per calendar year for any permissible current or capital account transaction or a combination of both.

This opens up a Window for Indian clients to remit funds abroad to do Forex trading.
( the indian gov is delibrately vague in their policies..)
Thank - you