5 Great Benefits Of Forex Currency Trading

One of the things that you need to know about Forex and how it can help you is that it is one of the most liquid markets in the world. This is entirely beneficial in the sense that you do not need to be tied down any complicated processes or bureaucracy that you have to get entangled in - that slows down the entire investing and decision making process. Plenty of investors are actually fairly attracted to the whole liquidity of the market, being able to pull in and put out their decisions within a matter of moments. In fact, Forex market is said to be the largest market in the world.

The other thing that is so good about the market is that there is a lot less taxation in the sense that because of the market liquidity and the fact that there is no physical trading space at all, there is much less taxation involved. Most of the time, in other markets, you will need to pay plenty of taxes and entrant fees to be able to participate, but not Forex.

The good thing about an invisible trading platform is that you can bring your trade across the globe without a problem, thanks to the power of the internet. The market is also 24 hours, and when paired up with the internet, you get a strong relationship that allows you to invest almost anywhere in the world. All you need to do is to log on to you account and start investing from your laptop.

A word on this technology is that because the Forex markets are so well paired with the internet, you have on your hands an investment platform that is easy for anyone to enter. This has then augmented the number of retail traders all over the world, with a thousand fold in activity, moving the numbers to just above 7 trillion on a single day.

Lastly, Forex is well known for its patterns. When talking about a market that is dynamic and as volatile as this, this statement might seem out of place. But within the chaos structure of international currency prices and trends likes the heart and mind of market and investor psychology. How central banks, governments and the large number of investors behave fall into a general pattern when they are exposed to certain conditions. Thus, the best brokers in the world have found a way to actually predict and forecast the market with sometimes alarming frequency.

There are more things that you should take note of when considering trading online in Forex because the truth is, Forex trading requires more talent and skill than anyone could have thought of. Sometimes, the chaotic elements of the Forex market and the fact that it is built on principle elements of the economy allows it to thrive. Look at the benefits and then decide for yourself.

Market Psychology And Forex Investors

You should applaud Forex investors for being daring investors in the current market world because they are actually dealing with one of the most volatile market in the world.With a market that is able to change with just a blink of an eye, there are definitely factors worth looking out for to see if there are any patterns that you as Forex investors can spot.

For one thing, looking at the political situation, you need to understand that when governments are removed or they come into power, the shake the pillars of confidence or they can strengthen it. Such incidents can have a major impact on the values of the different currencies involved.

Political coups and situations of unrest also can be a factor when it comes to looking at these policies. Then you might want to look at emerging government policies, new power relations between the markets and politics and how governments are using their resources. War is a huge 21st century problem because it involve countries and the governments as well. Moving on to the economic situations that can affect this as well, you might need to look at the overall economic situation of the world.

You might also consider looking at the trends and behaviours of the market makers because after all, they are the ones who have limitless access to large amount of currencies. These would include financial coalitions, hedge banks and governments. They have the power to control the market inside out and turn things around when the the economic situation does not look as bright.

Inflation rates, prices of commodities and beahaviours of investment funds are definitely crucial information that is worth taking note of from time to time.The scary thing about this is that this I only the tip of the iceberg, because while fundamental analysis has barely been covered here, we have not touched on how important technical analysis is as well.

The other thing that you need to know is that within the Forex market, there is this line called ’sell the sizzle, not the steak.’ This would mean that the market situation in the Forex can be easily effected by anything that happens around the world and it will react so fast that you might not even have the chance to notice it.

As you can see, the breed of Forex investors is one that has to be in the knowledge and facts of market possibilities at all times, and this is something that can be hard to maintain. Looking at the current market psychology, things are only set to get much more complicated in the sense that the market has become much more flighty than it has ever been in the past ten years. When thinking about joining the Forex investor collective, you need to understand how complex and dynamic the market can be.

Foreign Exchange Education Centre

An overview of the Forex market

The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.

The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:

• 24-hour trading, 5 days a week with non-stop access to global Forex dealers.
• An enormous liquid market making it easy to trade most currencies.
• Volatile markets offering profit opportunities.
• Standard instruments for controlling risk exposure.
• The ability to profit in rising or falling markets.
• Leveraged trading with low margin requirements.
• Many options for zero commission trading.

FOREX TRADING

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.

This information was provided by Easy Forex.

(First Habib Bank Modaraba declares final profit distribution)

June 08, 2007

(First Habib Bank Modaraba is managed by Habib Bank Financial Services (Pvt.) Limited (HBFSL), a wholly owned subsidiary of Habib Bank Limited. The Board of Directors of HBFSL, in their meeting held on 20 September, 2007, have approved and declared final profit distribution of First Habib Bank Modaraba at Rs,1.30 i.e. 13% per Modaraba Certificate for the year ended 30 June, 2007.
The Certificate Transfer Book will remain closed from October 22, 2007 to October 29, 2007 (both days inclusive) for the purpose of entitlement of dividend and attendance of the Annual Review Meeting. All transfers received in order up to close of business on October 21, 2007 at our Registrar’s Office, M/s T.H.K. Associates (Pvt) Limited, Ground Floor, State Life Building – 3, Dr. Ziauddin Ahmed Road, Karachi, will be considered in time.
Notice is hereby given that the 8th Annual Review Meeting of the Certificate Holders will be held on Tuesday October 29, 2007 at 3:30 pm at 17th Floor, Habib Bank Plaza, I.I. Chundrigar Road, Karachi, to review the performance of the Modaraba for the year ended June 30, 2007.)

icard and AutoCash to become inactive

September 30, 2007

HBL has discontinued the issuance, service and usage of iCard and AutoCash ATM/POS cards. Please contact your branch to apply for the HBL Value Visa Debit Card to continue using ATM machines and conducting POS based transactions.
The HBL Value Visa Debit Card is enabled for local and international use at all Visa ATM machines and merchants.
Please note that iCard and AutoCash cards that are used after 31st October, 2007 will be captured by HBL ATM machines.

HBL installs Vikuiti screen at its Zamzama Branch

October 05, 2007

HBL has installed a Vikuiti screen at its Zamzama branch in Karachi, Pakistan. The screen plays a montage of HBL’s current product offerings and corporate TV commercials. You can view the screen from sunset onwards during October, 2007.

HBL introduces Enhanced Savings Account

November 01, 2007

Under the auspices of Pakistan Banks' Association, HBL introduced the
Enhanced Savings Account (ESA). All PLS Savings Accounts with an average balance of up to Rs. 20,000 will automatically be transferred to this category and earn up to 4% p.a. profit.

Under ESA, all accounts will be automatically transferred on October 31, 2007. Profit will be calculated and credited on a quarterly basis on the average balance. Additionally, 4 free debit transactions (excluding ATM) are provided and only Rs. 50 is deducted if the average balance falls below Rs. 5,000 during the month.

HBL provides countrywide access to ESA with no hidden charges. Please contact your nearest branch for more details.