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Forex Trading Articles

Understanding The Difference Between Currency Futures And Spot Forex Trading

Forex is the largest market in the world in terms of the total cash value traded. Any person, company or country may participate in the market. Forex investors may engage in currency futures as well as trade in the spot forex market. The difference between these two investment options is minor as explained below.

The introduction of Forex futures occurred at the Chicago Mercantile Exchange in 1972. Forex futures also referred to as currency futures serve two primary purposes as financial instruments. First, they can be used by companies or individuals to remove the exchange rate risk inherent in international transactions. Second, they can be used by investors to speculate and profit from currency exchange rate fluctuations.

With currency futures, the price is determined when the contract is signed and the currency pair is exchanged on the delivery date, which is usually sometime in the distant future (typically no more than 3 months). However, most participants in the futures markets are speculators who opt to close out their positions before the settlement date.

In the spot FX, the price is determined at the point of trade, and the physical exchange of the currency pair takes place right at the point of trade or within a short period of time thereafter (the standard settlement timeframe for foreign exchange spot trades is 2 days from the date of trade execution). Forex trading is not conducted on a regulated exchange. It is referred to as an over-the-counter (OTC) transaction. For example, whenever someone goes to a bank to exchange currencies, that person is participating in over-the-counter (OTC) trade.

Whether you decide to jump right in to spot FX or want to speculate a little, the Forex market offers countless opportunities with unlimited risk.

Contact a Spot Forex management and investment research firm who specializes in providing investors alternative market opportunities that diversify portfolio risk. Forex indicators help identify attractive investment opportunities in any economic environment. Use forex strategies to designed or reduce capital draw down that can occur in the extremely volatile Forex market.

General Forex

Forex Trading Psychology Learn to See The Line Between The Trading Plan And Your Emotional Impulses

Forex trading market is a very well-known market. It is very important to understand everything about the market before entering into it. You can find many of pivot points, charts, trend lines, moving averages, and all types of the Fibonacci ratios simultaneously with the latest in the trading automation. Any of the forex website publishes all these data or some of these with the myriads of other details, opinions and interviews.

You might also get the support and resistance levels, entry and exit signals, all of which can appear as adequate in decision making process. If you are attentive of the importance of having a strict trading plan to start, then you should be known with the moments of doubt when the following the market goes awry, opening of trade, together with your self-esteem and emotions.

The trading books and videos will help you in knowing the forex trading market. As we trade, all our experiences are increased. Experience is also good for efficient trading. Since the forex trading market is extremely volatile and liquid market, the forex trading market goes on changing and changing all the time. With its unstable nature it is better that the trader should also accept it.

You should take your time to learn as how to understand the charts, preparing yourself accordingly to the economic calendar and make your trading plan to follow it strictly. Your emotions should not be present in the economy of trade.

As you progress along the path of becoming a professional Forex operator, your unseen analyst will start adjusting your trading decisions, silently participating in your trading decision process. Your emotions should never be present in forex trading. In fact, you should not give any place to your emotions in forex trading. That is why it is better to learn to see the line between the trading plan and your emotions impulses.

Emotions have no place in for successful forex trading. If a trader wants to be successful then he must dominate his emotions while trading in forex. In simple words, there should be no sorrow for in a loss and no joy in profit. There should be no joy in profit because if we enjoy the happiness of profit in forex trading then they joy will turn into sorrow when you will not make profit.

The very first step in forex trading for success is emotional control. Without emotional control there will no one to help you in forex. The trader has to himself help his own self from emotions to operate successful forex trading. By this way you can cope with psychological pressures.

Market Analysis

Growing Conflict Between IT And Mobility

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A battle has been brewing between end users and corporate IT ever since the release of the iPhone. End Users want to access corporate applications and data from their iPhone; and IT Management and Security has fought them every step of the way. The Consumerization of IT Recent IT market research studies have found that the broad popularity of the iPhone, Android phones, and iPad have created a new phenomena at the office; “BYOD” or Bring your own Device. Users are buying one of the many new (non corporate standard) mobile devices themselves (iPhones, Androids, iPads, etc.), and then assuming that IT will “hook them up” with the corporate network. IT was able to resist the growing trend, often called the “Consumerization of IT”, until the release of the iPad. The iPad proved to be the tipping point for IT.

The iPad’s power came from the fact that senior executives were early adopters. And, there is no greater motivation for an IT Manager, than having the CEO unhappy that he can’t get his email or check his corporate dashboard on his brand new iPad. As an example, recently the CEO of a major company bought 500 iPads for his senior managers; without giving the IT department any advanced warning. Included within the growing role of mobility and consumerization; is the trend toward users having a single mobile device that includes both their corporate information and their personal information. This mingling of personal and business lives only increases the risk for data loss. You can easily imagine an employee accidentally posting a business document to their Facebook page, or cc’ing their friends with a corporate email.

Role of the Cloud The pressure on IT management to incorporate a full spectrum of mobile devices will only increase over the next few years. According to Gartner, 90% of companies will support corporate applications on personal mobile devices by 2014, and 80% of companies will have a mobile workforce armed with tablets. SaaS has proved to be both an ally and an enemy to IT in managing mobile security. Because corporate applications are moving to the cloud, it has become much easier for users to access these applications from their mobile device. At the same time; this broader access also opens new security vulnerabilities. Making it increasingly difficult for IT Security to guard against both intruders and accidental or malicious data loss. While this drive for mobility is not new, IT market research surveys have shown that most organizations do not have a formal strategy for dealing with the proliferation of user devices. However, the demands of Corporate and IT Compliance are quickly forcing organizations to face up to this new reality and develop sophisticated policies and procedures for adapting to a mobile world.

Market Analysis

The Difference Between a Money Market Account And a Money Market Fund

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Many investors do not realize that there are differences between a money market account and a money market fund. While the differences are subtle, they both have faintly distinct levels of risk. Due to this variance in risk, there is also a small difference in the money market rates offered between the two financial products. Investors should have an understanding of what these financial products are. Knowing how banks use these funds will help investors make the most informed decisions about how to allocate their investment capital based on the amount of risk they want to assume.

A money market account is very similar to a savings account at a bank. Most money market deposit accounts typically can have a minimum opening deposit and can provide customers with the ability to write checks against the account. A money market deposit account is virtually a risk free investment because the bank uses these deposits for cash equivalent investments used in their banking operations. The money market account deposits help the bank offer loans to its customers for homes, cars, and other purchases while providing investors good money market rates of return.

Money market funds carry with it a slightly higher risk profile because of the underlying investments purchased with the deposits in order to earn a higher rate of return. While with money market funds, capital is placed in low risk investments such as Treasuries and short-term debt instruments, these funds are still considered a very safe financial product for investors to own. Most money market funds have a set share price of $1 which does not change. Capital appreciation or dividends earned are either disbursed to investors or invested as new shares of the money market fund.

Money market deposit accounts and money market funds are very similar in design and the type of protection they offer investors. Depending on the amount of risk an investor wants to assume, money market accounts and money market funds offer excellent options for short-term investments with little risk to their principal.