FOREX : What Is It And How Does It Work?

#11
Re: Trade Forex and make money

Dear TAT Trader,

Really great artical. How to get started, who provide this in India. Like motilal oswal or india bulls whom should i contact for more details and is it possible to trade in INR VS USD
 
#12
Re: Trade Forex and make money

BHARTIJH said:
Dear TAT Trader,

Really great artical. How to get started, who provide this in India. Like motilal oswal or india bulls whom should i contact for more details and is it possible to trade in INR VS USD
I understand that refco sify offers this service.
 
A

amarnath

Guest
#13
Re: Trade Forex and make money

BHARTIJH said:
Dear TAT Trader,

Really great artical. How to get started, who provide this in India. Like motilal oswal or india bulls whom should i contact for more details and is it possible to trade in INR VS USD


One cant trade USDINR untill Indian rupee is freely floating and fullly convertable ;)
 
#14
Re: The Forex Market - What, When and Why?

beda said:
thanks for the info TA trader
pl tell me how from bangalore i can trade in forex. im keen to open a account
can u pl suggest me some broker & what is the minimum investment required say 25,000 Rupees?? I have this question & not able to get any answer can u pl recoment a broker ph no?? & other details
thanks again
beda
Hi Beda

Interested in the most volatile markets in the world. Send me an email the same name at yahoo and I would answer all of your querries.

Regards
James Alex
Trend is your FRIEND, FOLLOW it
 

sean

New Member
#15
Re: The Forex Market - What, When and Why?

beda said:
thanks for the info TA trader
pl tell me how from bangalore i can trade in forex. im keen to open a account
can u pl suggest me some broker & what is the minimum investment required say 25,000 Rupees?? I have this question & not able to get any answer can u pl recoment a broker ph no?? & other details
thanks again
beda
Hi,

You have to understand that with 25 K you will be able to open a MINI Trading Account and if you trade on your own i.e.using your PC and Internet, then only there won't be any broking charges.
Regards,

Sean
 
#16
Re: Currency Trading

Thanks for the info,TATrader!Nice!!
 

Sai

New Member
#18
Re: Trade Forex and make money

TATrader said:
I understand that refco sify offers this service.
Hi TATrader,

You must be aware of the following. Just wanted to know how you/other investors investing through REFCO would be effecte d by this? Hope you are safe from this problem.

http://today.reuters.co.uk/Funds/Fu...5Z_01_NOA925656_RTRUKOC_0_FINANCIAL-REFCO.xml

Refco files for bankruptcy
Wed Oct 19, 2005 8:07 AM BST

By Michael Flaherty

NEW YORK (Reuters) - Refco Inc. filed the fourth-largest U.S. bankruptcy and agreed to sell its core futures trading business to an investor group for $768 million (440 million pounds) to salvage some parts of the damaged commodities and futures brokerage.

The developments followed a week in which customers pulled assets out of the New York-based firm as Chief Executive Phillip Bennett was charged with securities fraud. He is accused of hiding $430 million he owed the company.

Before its recent troubles, Refco was one of the biggest market makers for commodities and financial futures, allowing funds and companies to trade contracts on commodities, bonds and currencies.

Refco Inc. filed late Monday for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. The filing, which was made public on Tuesday, listed assets of $48.8 billion and liabilities of $48.6 billion.
 

Traderji

Super Moderator
#19
Re: Trade Forex and make money

So far there seems to be know problems with Refco-Sify India as they have isolated their net worth from their parent company Refco.

Please let us know if you hear anything on the same.
 
#20
FOREX : What Is It And How Does It Work?

The Foreign Exchange market, also referred to as the "FOREX" is the biggest and largest financial market in the world. It has a daily average turnover of US$1.9 trillion- just imagine that amount of money! Don't you want to join this trillion-dollar industry?

FOREX is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). So basically, FOREX is trading.

There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency.

The other 95% is trading for profit, or what you call speculation. Investors frequently trade on information they believe to be superior and relevant, when in fact it is not and is fully discounted by the market.

On one side of each speculative stock trade is a participant who believes he has superior information and on the other side is another participant who believes his information is superior.

For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid- meaning its in cash or convertible to cash) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors.

A true 24-hour market, FOREX trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - real time- day or night.

The FOREX market is considered an Over The Counter (OTC) or 'interbank' market. This is because the transactions are conducted between two counterparts over the telephone or via an electronic network. Trading is not centralized on an exchange compared to stocks and futures markets.

Understanding FOREX quotes

Reading a FOREX quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.

The US dollar is the centerpiece of the FOREX market and is normally considered the 'base' currency for quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 110.01 means that one U.S. dollar is equal to 110.01 Japanese yen.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 113.01, the dollar is stronger because it will now buy more yen than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.7366, meaning that one British pound equals 1.7366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.

When trading FOREX you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).
 

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