Forex Auto Trading – What is It?
Posted on January 20, 2009
What exactly is foreign exchange trading a.k.a. FOREX? Well basically the Forex market is a 24 hour non-stop cash market where currencies are being traded back and forth depending on the rise and fall of the value on a particular day, usually via a professional broker who has professional experience in handling worldwide transactions. Foreign currencies are simultaneously being bought and sold locally and globally based on the currency movements. Investors who are interested in the foreign exchange markets are usually enticed by the 24 hour trading, an easy market area where you can trade all kinds of currencies, unpredictable market offerings that offer all kinds of opportunities for big profit earnings, and balanced trading with low margin requirements.
As an investor, your main goal is to profit from increasing foreign currency movements, in which the said foreign trading system is usually being done in pairs. You trade in dollars for Euros for example according to the Forex rates, monitoring the increase and decrease of these rates which will prompt you for a possible trading opportunity. To put it simple, an investor, once he has bought foreign currency, can trade it back for more than the amount he bought before once the value of the rate increases. This could happen monthly or yearly, so it is important that the investor monitors the rise and fall of the trade levels, which is usually determined by everyday events that occur in that particular country.
Earning profit from the foreign exchange markets will always be a risky deal for anyone who is willing to participate and invest in the trend. But the foreign exchange market is also an hourly updated market, providing opportunities for high-profit trades and confident analysis of when dramatic increases would occur. Forex markets are immensely lucrative since they run and trade with sizeable volumes and operate practically 24 hours. We also have the World Wide Web to thank for easy trading and online detection of a possible trade opportunity in the Forex markets with the creation of Expert Advisors and automatic trading tools. And because of this, online investors who are serious enough to invest in the foreign exchange market are in search of forex auto trading programs and tools to be able to trade without any worries or problems regarding the flow of the Forex market trading levels.
There are thousands of websites online that cater to Forex trading with Forex expert advisors (EA) and forex auto trading, which is an online trading platform that provides the investor with 24/7 foreign exchange trading services anywhere. These tools are available for everyone anywhere; you can avail of forex auto trading whether you are in the United States, Europe, Asia, and other countries all over the world, which is one of the reasons why forex auto trading is very handy. You can browse through the World Wide Web for online FOREX-specialized websites that offer investors reliable and effective auto trading tools that can assist you in your trading transactions everyday wherever you go.
Steve Comet, a pseudonym, is a group of experienced forex traders. Our team has reviewed all the different forex autotraders that exist, and found out the ones with make money. Check out our forex autotrader reviews
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Bollinger Bands Strategies
Posted on January 19, 2009
The Bollinger Band theory is designed to depict the volatility of a stock. It is quite simple, being composed of a simple moving average, and its upper and lower “bands” that are 2 standard deviations away. Standard deviations are a statistical tool used to contain the majority of movement or “deviation” around an average value. Bear in mind that when you use the Bollinger Band theory, it only works as a gauge or guide, and should be use with other indicators.
Normally, we use the 20-Day simple moving average and its standard deviations to create Bollinger Bands. Strategies some investors use include shorter- or longer-term Bollinger Bands depending on their needs. Shorter-term Bollinger Bands strategies (less than 20-Days) are more sensitive to price fluctuations, while longer-term Bollinger Bands (more than 20-Days) are more conservative.
So how do we use the Bollinger Band theory?
The Bollinger Band theory will not indicate exactly which point to buy or sell an option or stock. It is meant to be used as a guide (or band) with which to gauge a stock’s volatility.
When a stock’s price is very volatile, the Bollinger Bands will be far apart. In technical indicator charts, this is depicted like a widening gap. On the other hand, when there is little price fluctuation, hence low volatility, the Bollinger Bands will be in a tight range. This is depicted as narrow “lanes” along the chart.
As for how we use the Bollinger Band theory, here are a couple of guidelines.
History shows that a stock usually doesn’t stay in a narrow trading range for long, as can be gauged using the Bollinger Bands. Strategies include relating the width with the length of the bands. The narrower the bands, the shorter the time it will last. Therefore, when a stock starts to trade within narrow Bollinger Bands, we know that there will be a substantial price fluctuation in the near future. However, we do not know which direction the stock will move, hence the need to use Bollinger Bands strategies together with other technical indicators.
When the stock starts to become very volatile, it is depicted in the chart by the actual stock price “hugging” or staying very close to either the upper or lower Bollinger Bands, with the Bands widening substantially. The wider the Bands are, the more volatile the price is, and the more likely the price will fall back towards the moving average.
When the actual stock price moves away from the Bands back towards the moving average, it can be taken as a signal that the price trend has slowed, and will move back towards the moving average. However, it is common for the price to bounce off the Bands a second time before a confirmed move towards the moving average.
As usual, and for the Bollinger Band theory in particular, it should be noted that individual indicators should not be used on their own, but rather with one or two additional indicators of different types, in order to confirm any signals and prevent false alarms.
Steven is the webmaster of http://www.option-trading-guide.com If you would like to learn more about Option Trading or Technical Analysis, do visit for various strategies and resources to help your stock market investments.
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Forex Trading Online From Home
Posted on January 16, 2009
The ability to trade online through Forex, just like with many other forms of investing, has absolutely revolutionized the market and revitalized the act of trading for many people. Online Forex trading has opened the door to new resources and information, and also has increased the speed through which a seasoned Forex trader can access the information that they are looking for. Day trading Forex has become extremely popular thanks to the internet, primarily because day trading would not be possible if not for the up to the minute quotes available online.
The ability to trade on the Forex market online has become possible because traders are able to access more information relating to currencies than ever before. Now it only takes a couple of mouse clicks to allow a Forex trader to access current prices, trends, commentary and full histories on exchange rates to better determine exactly how the Forex trading market is performing and behaving. Forex investors and traders can develop much more sound Forex trading strategies simply by learning how to use all of this information to their greatest possible advantage.
Day traders who are trying to break into the Forex market are finding it easier than ever because the current information that they need for accurate trading is easily at their fingertips. Having current information is a vital part of trading Forex, and knowing how to read Forex quotes is an essential part of being successful with this particular type of trading. It is absolutely vital that all Forex traders have the latest updates when it comes to planning future trades. Even the slightest little shift in the market can change your strategy which is why having up to the minute information and Forex quotes is so vital.
There are a number of tools available online that will show new Forex traders how to read Forex quotes, and other vital aspects of learning how to trade online. Some of these tools make it simple to process the information in these Forex quotes, but many seasoned traders prefer to learn how to do the work their own selves for better success in the market. While Forex trading has been revolutionized by the ability to trade online, seasoned Forex traders prefer to do a lot of the work their own selves, rather than taking advantage of what the internet has to offer.
Many people who trade actively in Forex online have learned how to use the internet tools while doing business, but people who understand the Forex trading market before they log in to the internet will have a much more sound handle on Forex trading and learning how to read Forex quotes. It may be more beneficial to learn how to trade on the Forex market first before taking advantage of the ease of use that the internet has to offer.
If you interested in the Forex Market but don’t know where to start then get your free copy of the Complete Newbies Guide to Forex Trading Online.
To start trading in the Forex here are the Top Pick Forex Trading Programs.
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Shocking Forex Trading News – Free Forex Tips
Posted on January 15, 2009
Looking for forex tips but don’t have the money? Or were you given a Shocking Forex Trading News but don’t know if this tip is worth using? As a rookie in the trading game, you will be in constant search for forex tips to increase you understanding of the currency, gain better foresight for strategies, or just simply improve your earning potential. You may search high and low, but most of the winning forex tips are best kept as secrets, because only few are really winning strategies. Though majority of traders will eventually lose, we may succeed with just the right forex tip at hand.
Most free forex tips are given to fellow beginners to help each other out understanding the market. One of the best and sure-fire tips to give out is that trading forex requires a lot of planning and strategy. If you’re trigger-happy, or an impulsive buyer, you may want to go back to your shooting range or to the mall, as spontaneous investments simply rely on chance and luck to succeed. As any tactician would, you can use a demo account, instead of real time, real life trades first to assess the situation of the current market. Remember the saying “Too good to be true?” In most times, it usually is. Just sit still in that comfort zone of yours, and if you have enough experience, then you can beat it out against the system
Every trade and every move towards every trade in forex should be well thought out. Free forex tips are just the tip of the iceberg when it comes to forex trading. Forex trading is not for those who are searching to make quick money. The best investments usually take days to trade and those are that are usually worth the wait.
Like any well-planned attack, every move and every trade should be well thought of, should be well executed. More often than not, Free Forex Tips are usually just the tip of the iceberg. Again, let me stress that forex trading is not for those who want an instant buck. Like wine, the best investments take time, and it is really worth the wait.
Do you want the very best forex trading robot? Well I have some good news for you, I bought and tested the top 7 forex software’s and put a review of the top 2 on my website: ForexTradingReview.Info I made over 900 dollars a day with one of the softwares listed on that site. Just Imagine if you purchase a couple of profitable softwares!
You have to be very careful when purchasing a software though. Some of the software’s just sit around and never make you any money. If you want to make thousands every week with forex I suggest you take a look at the website: Forex Trading Review
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The Tweezer Forex Signal – How To Trade It
Posted on January 14, 2009
Certain formations on Japanese candlestick charts can provide a reliable Forex signal if you interpret them right and realize the limitations of candlesticks in the foreign exchange market.
Candlestick formations work particularly well in some markets where there are clearly defined opening and closing periods such as the futures and equity markets. The Forex on the other hand is a 24 hour market place that runs for nearly six days a week and therefore it doesn’t have the distinct open and close timings that make Japanese candlestick formations such significant indicators.
However, there is a significant candlestick formation that can be used as a Forex signal taking into account the open closing times of various markets (New York, European, Asian sessions) and the overlapping times when market reaction is more pronounced.
This Forex signal is commonly called the Tweezer shape. It consists of two candles side by side with short bodies at the base and long wicks that extend upward. The two candles can be either identical in shape or they may simply have approximately the same size body and wick. Conversely they can be the other way, a short body at the top with long wicks extending downward.
WHY can the tweezer candle formation be a significant Forex signal?
It helps to understand what is represented by a candlestick. There is a need to go behind the scenes and perceive what is actually going on in the market.
Every candle represents a battle between the bears and the bulls, struggling to gain dominance. In the case of a tweezer candle formation at the top of a price move, the bulls took price up to a certain level but were unable to hold it and price came back.
In the second candle period, the bulls again tried to take price up but only succeeded in reaching the high of the previous candle and again their efforts failed with price coming back. A new high was reached, then an attempt made to pass it which failed, the bears wresting control from the bulls.
If a tweezer formation is seen at the end of a large downward move in price, then the opposite is true. The bears have not been able to maintain new lows and the bulls have wrested control.
The tweezer candlestick formation as a reliable Forex signal is conditional however on other factors.
WHEN can the tweezer candle formation be a significant Forex signal?
It is probably unwise to just take a tweezer formation as an instant Forex signal to go long if the tweezers form at the top of a run up in price or short in a drop in price. A reliable Forex signal involves many factors not just one.
Here are some key points to keep in mind:
- Tweezer formations on higher time frames (1 hour, 4 hour) are more significant. At times a tweezer on a 15 minute chart can provide a good Forex signal if it coincides with other factors mentioned below.
- Tweezer formations can be significant when they come at a key level of resistance or support, or if they are on a pivot line, or a Fibonacci retracement or extension level.
- Tweezer formations are not such a reliable Forex signal if they come in a consolidation pattern when price is caught in a channel.
- Tweezer formations can be significant if they come at the end of a major run in price that is equal to or exceeds the average daily range. If you pull up your Average True Range indicator and see what the average price movement has been for that currency pair for the last five days and compare it with the current price movement, if price has already moved by the average number of pips and you now see a tweezer formation, there is a higher probability you can safely enter a trade in the opposite direction.
- Tweezer formations can also be a reliable Forex signal if you take into account the average daily range and the time of day when the tweezer formation appears. If it appears at the close of the London session for example, or the end of the New York session, it is unlikely price is going to go much farther for the remainder of that day. The likelihood is price will retrace and that is where you can catch some good pips.
Trying to find the perfect Forex signal is a futile exercise as no such signal exists. However, there are certain indicators that when put together can constitute a reliable Forex signal that works more times than it fails.
Learn to recognize the tweezer candlestick formation. Take note of where it appears in relation to price action, check the time of day, look at your other favorite indicators, and if they all line up, pull the trigger!
For a free candle & chart pattern recognition reference tool click here:
http://www.vitalstop.com/Forex/Candle-Chart-Patterns
Do you know the important lesson Mohammed Ali teaches us about Forex trading? Read it here:
http://www.vitalstop.com/Forex/Advisor/forex-online-trading-mohammed-ali.htm
For the best free economic calendars plus a free pivot point calculator and Fibonacci calculator click here:
http://www.vitalstop.com/Forex/tools.html
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Posted on December 19, 2008
titleForex – What is Forex Currency Trading?/titlepIf you are someone who is interested in investing, you must certainly have heard the term, Forex Trading. What many investors dont know is that Forex is not a new term by itself, but rather a short form of Foreign Exchange. As the name implies, Forex Trading simply refers to Foreign Currency Trading./ppAs recently as ten years ago, Forex Currency Trading was confined to the large institutions and banks as they only had access to the tools and systems required to meet the then high barriers of entry set in the Forex Trading game./ppToday, things have changed drastically. Recent advancements in technology have empowered the individual investor to participate in the game, and trade with any of the various online trading platforms that exist today./ppOnce you get started with buying and selling in the Forex Currency Trading market, it will become obvious to you that there exist four Currency Pairs that completely dominate the Forex market. The four pairs are US Dollar vs. Euro, US Dollar vs. British Pound, US Dollar vs. Japanese Yen and US Dollar vs. Swiss Franc./ppThe prime goal of any investor who deals in the Forex market is to hold a currency that is appreciating in value in relation to the other currencies. To illustrate with an example, if you choose to buy 100 British Pounds in exchange for 200 US Dollars, hold the 100 British Pounds for a week and in that period, the value of the British Pound appreciates in relation to the US Dollar, you get to convert those Pounds back into Dollars for say $250 and make a tidy profit./ppUnlike domestic stock markets around the world that operate for only a few specified hours each day, Forex Currency Trading is open 24 hours a day. Since every country trades on the Forex market, its always business hours in some part of the world and so its open all day. The volume of trade on the Forex market is roughly a whopping $1.2 Trillion./ppAnother important distinction is that Forex Currency Trading is not centered on any exchange such as the NASDAQ. There is no central governing authority or organization and trading is carried out between all the major banking institutions of the world./ppThe advent of the internet has given rise to online Forex Brokers which are similar to an online stock trading account. These brokers have thousands of investors placing orders through their online portals and so are able to allow anyone to open a Forex account and buy and sell in any quantity./ppTimes have changed and made it extremely easy for anyone to trade on the Forex Currency Market. But, a new investor must keep in mind that it is a very complex and complicated environment that may offer amazing opportunities for wealth creation, but is also capable of relieving you of your hard-earned money in an easy fashion. A would-be investor is advised to do a lot of homework and gain as much knowledge as possible about the Forex market before choosing to make an investment./ppFor more information on a target=_new href=http://www.tradingforexmarket.co.ukForex Currency Trading/a visit our site: All You Need to Know About a target=_new href=http://www.tradingforexmarket.co.ukForex Trading Market/a./pbrbr
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Posted on December 18, 2008
titleFree Technical Analysis – Getting Free Technical Analysis For Triple Digit Gains/titlepIf you want to get free forex technical analysis and build your own forex trading system for big long term profits then you can and this article will show you how…/ppThere are certain basics you need to learn first, before you devise your system and besides the obvious searches, look up these key areas:/ppSupport and resistance/ppThis is the basis on which all successful forex trading systems are built around and generally, the more tests of the level the better and if the tests occur in spaced out time periods and far apart, they add to the validity of the level./ppBreakout Methodology/ppWhen using support and resistance, look at executing your trading signals when levels break, rather than focusing on trading into ones that might hold./ppThe reason for this is that most major trends start from new market highs and going with these breaks can yield huge profits./ppMost traders cant do this, they wait to get in at a better price but the market sails on and they never get in. Its hard to buy the break sometimes, as you miss a bit of the move – but dont worry, if its a valid break it will continue and a great trend will develop./ppTiming Your Trading Signal/ppWhen a breakout occurs you need to check price momentum and now its time to learn about momentum indicators. If prices velocity is accelerating then chances are the break will continue./ppThere are numerous momentum indicators – but the two we like are:/ppThe stochastic and the RSI./ppThey only take half an hour each to learn, are visual indicators and are great for better market timing./ppNow you need to find a free chart service and there are numerous ones on the net – so look for one which will allow you to use the above momentum indicators./ppMake sure you use the weekly chart as well as the daily./ppThe weekly chart is a great way to see the wood from the trees and can give you targets and stop levels – then use your daily charts to time./ppBe Patient!/ppMany traders think the more they trade the more they make but this is imply not true you need patience to wait for the high odds breakouts when you have a break do the following:/ppCheck your momentum indicators if they are in the direction of the break go with it./ppPut your stop below the breakout point/ppWait for the trend to get in motion and trail your stop slowly./ppYou must not get it to close or you will be bumped out by normal price retracements – we like the 40 day moving average once the trend is in motion. You can also add to your positions by buying back to the 18 day average./ppThe system above is simple, easy to understand and robust and will get you on the side of all the major trends that yield big profits./ppKeep in mind – forex trends last for weeks, months or years and you can catch a good chunk of these trends./ppMany people buy forex trading systems but the free technical analysis tools and information available online, can provide you with ALL the tools you need to build a robust, profitable, forex trading strategy./ppFree technical analysis online is there for you to use and if you use the enclosed article as a guide, for getting the right forex education, you can soon be on the road to currency trading success./ppNEW! 2 X FREE ESSENTIAL TRADER PDFSbr ESSENTIAL FOREX TRADING COURSE/ppFor free 2 x trading Pdfs and more on a target=_new href=http://learncurrencytradingonline.com/free_info.htmlFREE Forex Technical Analysis/a and an exclusive risk free a target=_new href=http://www.learncurrencytradingonline.com/subscribe.htmlForex trading Course/a visit our website./pbrbr
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What is an Options Spread
Posted on December 18, 2008
So what is a spread? A spread position is entered by buying and selling an equal number of options on the same stock but with different strike prices or expiration dates.
One of the most common spreads is called a credit spread (also known as a vertical spread)
A credit spread is two options of the same type with the same expiration, but with different strike prices.
One of the options is purchased and the other is sold (or written).
There are two types of credit spreads the Bull Put Spread and the Bear Call Spread. If we believe a stock is going to go up or stay in the same place we use a Bull Put Spread. If we believe the stock will drop or go nowhere we use a Bear Call Spread.
Bear Call Spread – Makes money if stock drops, stays the same or goes up slightly.
Bull Put Spread- Makes money if stock goes up, stays the same or drops slightly.
There are 5 things that the markets can do.
1.Make a small move upwards
2.Make a small move downwards
3.Make a side ways move – i.e. in a given time frame, the market price “goes practically nowhere” or before that time frame expires, returns to its original point.
4.Make a large move upwards
5.Make a large move downwards
If you buy a stock the only way you can make much money is if the markets make a large move upwards. This is why option spreads are so advantageous. Firstly, 80% (4 out of 5) of market movement is in your favor; Secondly, even if that unlucky 20% hits you, you can still come out unscathed or even profitable.
This is part of the reason that professional traders use credit spreads as it is easier to make a consistent income with them.
Example 1 : A Bull Put Spread
Assuming QQQQ is at $44. Buy 1 QQQQ Put with a strike price of $44 and 5 weeks or less til expiration for $1.05 per contract and sell (or write) 1 QQQQ with a strike price of $45 for $1.85 per contract. The net result is a credit for .80 or $80 per contract.
A Bull Put Spread results in maximum profit when the underlying stock closes above the strike price of the sold put option. So in this case as long as the QQQQ closes above $45 or more you will collect the full $80.
Following up from the above example 1:
Max. Return = $1.85 – $1.05 = $0.80 when QQQQ closes above $45
Max. Risk = Difference in Strike – Net Credit = ($45 – $44) – $0.80 = $0.20 when QQQQ closes below $44
Break Even = higher Strike – Net credit = $45 – $0.80 = $44.20
Example 2 Bear Credit Spread
QQQQ is at $44
Buy 1 QQQQ $44 Call with 5 weeks or less till expiration for $1.05 per contract and sell to open 1 QQQQ Jan43call for $1.85 per contract
Max. Return = $1.85 – $1.05 = $0.80 when QQQQ close below $43
Max. Risk = Difference in Strike – Net Credit = ($44 – $43) – $0.80 = $0.20 when QQQQ close above $44
Break Even = Lower Strike + Net credit = $43 + $0.80 = $43.80
When to use a Credit Spread
When we believe the market is going to move in a certain direction either bullish or bearish, but we don’t anticipate a big move.
Palmer Owyoung is the Founder of OptionSpreadTrades.com A website dedicated to educating the small investor and helping them to achieve financial independence. Averaging returns of 5-15% a month. To subscribe to the free newsletter and receive a 9 part options trading course go to
http://www.optionspreadtrades.com
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Forex Robot Software – Consistent Profits on Auto-Pilot?
Posted on December 16, 2008
Are you attempting to trade Forex on the side, but do not have the time to learn the ins and outs of the business? Maybe you should start today!
First of all, to brush up on some brief skills, it is important that you know what Forex actually is so that you can approach the Forex marketplace and dominate it! Forex itself is a Foreign Currency exchange market that was only accessible by big businesses, etc.
People trade tons of money on Forex ,in fact, trillions of dollars are exchanged on a daily basis, some being profit, some being losses. Let is be stated that you can either gain or lose an enormous amount of money on Forex in a fast amount of time, so unless you’re an expert trader -you want an auto-pilot robot helping you do the trade – either that or a professional mentor.
Now that you know what Forex is, you need to know what an automated forex robot is. A good automated forex robot is one that will trade money for you by paying attention to the mathematical trends, algorithms, rising and declining money potential, and trade only sure-fire profitable trades.
Now there is not one system out there that will give you 100% certainty on every single trade, but there are specific ones which are basically guaranteed to give you profit in the long run. You will not have to trade on a regular basis – or sit at your computer all the time going though mind numbing number crunching searching for a potential trade that will be absolutely profitable. Your risk is automatically minimized when using software such as this.
It was also designed by some of the best traders online and based on past systems that usually cost people thousands of dollars just to access. You will be able to use the software to spot short term opportunities that can give you instant return on your profits.
So although it’s not 100% you can increase profit and make a substantial amount of short term profits overtime!
Achieve Auto-Pilot Forex Profits 24/7. Earning small yet consistent profits through Forex while you are at your computer or away is a possibility with the Forex Auto-Pilot System. Complete beginners will have the ability to earn without any knowledge of how Forex works! For more information, visit: http://forextracerauto.blogspot.com/
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Using Intermarket Analysis in Your Currency Trading
Posted on December 16, 2008
I am going to assume that if you are reading this article then you already have a foundational knowledge of the foreign exchange (forex) market, so I am going to breeze through the basics and go right to the main topic of intermarket analysis.
If you are a financial market junkie like me, the topic of intermarket analysis is a fascinating one because it can applied to making money with forex trading (the main topic of this article) as easily as it can be applied to commodities. As you can probably guess, the term “intermarket” in this context simply means looking beyond normal economic data in order to come to a conclusion about where the price of a certain currency pair is headed. The opposite of intermarket analysis is plain fundamental analysis, usually focusing on major economic data such as employment, labor, and interest rates.
A few of the most significant intermarket relationships have to do with gold, oil, and the 10-year bond yield in the United States. The reason that the 10-year yield is important is because this value can be correlated to the value of a dollar index, or a basket of goods that can reveal the overall strength of the US dollar.
When it comes to gold and oil (which are arguably two of the most important commodities in the world today), the prices of those commodities will most affect the currencies of the countries that produce these commodities. There are two main relationships when it comes to gold and oil: Canada is a large producer of oil, an so the Canadian dollar (CAD) will be affected by changes in oil prices; and Australia produces a lot of gold, and there are many companies in Australia that manufacture gold products such as rare coins, so the Australian dollar (AUD) will be affected by changes in gold prices.
These are some of the most profound instances of intermarket relationships in the global economy, but keep in mind that these relationships are *not* exclusive to the currencies I just mentioned. That is to say, changes in gold prices are not going to only affect the price of the Australian dollar and leave the value of every other currency unchanged; changes in the value of these important commodities like gold and oil will affect every currency, it just so happens that a larger part of the Australian economy has business interests in gold, so if gold gets more expensive then it becomes harder to do business.
Though oil and gold each have a “flagship” currency which they affect the most, fluctuations in the price of each of these commodities will also affect every currency in a somewhat predictable manner. When it comes to gold, a basic rule of thumb is that the currency value of all nations will decrease when gold gets more expensive, since this can indicate that more people are buying precious metals because they may not have as much faith in the main governing bodies in the world.
The way that oil affects currency prices is very interesting, since at this point in history (but hopefully not for much longer) nearly every major economy is dependent on oil for transportation and heating. The way that changes in oil prices affect a country’s currency depend on whether or not that country is an importer or an exporter of oil. As an example, Canada has traditionally been an exporter of oil, whereas the United States has been an importer. So when oil becomes more expensive, this can be damaging to the United States economy and beneficial to an oil-exporter like Canada.
As a forex or currency trader, it is important to understand these relationships so that you do not derive your trading signals from only one source. It is also good to know how major commodities affect currency prices because you can also use this knowledge to make money in the global stock market, by investing in companies such as a Canadian oil producer or an Australian company the specializes in gold coins.
Trading the foreign exchange market can be a great way to make a living from literally any computer in the world, or as a home business. Learn more about profitable forex trading at http://TheCurrencyMarkets.com/currency-trading-strategy-reports.htm
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