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Category: Finance

Forex Traders Need to Know About Crossing Currency

Why crosses the road? No, this is not what Forex is meant to cross.

Cross currency in Forex is one of the most profitable ways to make money for many investors. Forex is different from any other type of market in the world. The exchange market is characterized by high liquidity, where the circulation of more than two trillion dollars a day. The three currencies most commonly used in the Forex market are the US Dollar, the Japanese Yen and the Euro. These currencies are traded in a way that exceeds the circulation of any other types of currencies.

With the currency exchange market so large, it is highly liquid. Cross currency in Forex allows a great deal of flexibility for the 1K Daily Profit trader and the investor. Forex gives the trader the opportunity to buy and sell currencies quickly as he is not trapped for any type of investment. While investors use online trading in the form of currency crosses, the trading platform can be prepared in advance according to the trader’s preferences. If trading trends do not move in the expected course, the trading platform can be set up to stop trade and then allow the trader to reduce losses during the Forex trade.

Learning to trade in the Forex market can also be profitable and exciting. In order to successfully trade in Forex it is necessary to understand how the market works and also the terms and trends associated with it. Brokers and financial institutions are usually the best way for traders to learn how to use Forex to make profits.

1K Daily Profit
1K Daily Profit

When an investor or any other individual wants to trade a particular currency against another, this is called currency swaps or currency crosses. Cross Currency is the main objective of forex trading. For example, if a company or investor has US dollars and wants to trade against the Japanese yen, the broker will allow them to do so in the Forex market. Many investors trade currencies in order to generate profits. When a particular type of currency is bought at a low exchange rate, the currency can be resold as soon as the price rises and profits are generated.

Learning to cross currencies in the Forex market may be a bit complicated. The main factor in Forex trading is that you have knowledge about how the market works. In addition, there are other advantages to trading using Forex. Cross-Currencies Give traders the leverage they need to make huge profits while minimizing the risk of capital loss. In ideal circumstances, an investor who deposits $ 500 in his accounts can earn more than $ 100,000. T

The currency segment also allows traders and investors to make a profit whether in the event of a market rally or fall. This is also one of the differences between the stock market and the exchange market. In the stock market, an investor can only make money when stock prices rise in the “bearish” market when stocks fall, investors can not make any profits. While with currencies in Forex, this is not true. This is one of the most attractive things to trade in the Forex market as investors can make huge profits by trading a currency pair either up or down. Intersection of currencies in the right direction always earns profits.

Another advantage of Forex trading or currency crosses is that it always stays open. When trading in the stock market, the possibility of trade remains limited at times when the market is open. This market has times to close during the week. This is not true in the Forex market, which remains open all the time and does not close at all, so traders benefit from the possibility of trading 24 hours a day via the Internet.

Learning Forex Trading may be easy when the 1K Daily Profit investor goes with an experienced broker or financial institution. Also, there are many ways to learn how to trade in Forex through free trial accounts available on the Internet. These sites offer valuable sources and free ways for the new investor to enable him to practice Forex. This is very important for those who want to identify the entrances and exits of the currency exchange before they start to open a real account. Mini Forex accounts are also a good way for a novice investor to let him trade Forex without risking the usual calculations. The Mini Account allows traders to use a small amount of money as their initial investment.

Trading Forex with Pivot Points

Forex trading is currently used by Forex traders as it is calculated based on the movements of the previous day and deals are entered when the price hits one of the support and resistance lines formed by the pivot points if it is in line with your index to determine oversold positions overbought. Contrary to what some might think, Forex trading through the points of reference may be the most popular way to trade in the financial markets today. Long before computers were hacked, this method was used by traders to identify hidden levels of support and trade.

The benchmarks are still used by both professional traders and technical analysts. The main advantage now is that we have computers that can calculate our points in advance. Many graphic packages can be calculated for you in any way. Thus enhancing the use of focal points.

There is much more to using the points of focus in the Forex market trade than we will mention in this article, because the goal is to basically give you the concept of Forex trading through the points of pepot.

Remember that the market can only go up or down or move sideways. It is like a rubber band that is extended, sooner or later will go to the point of equilibrium, which then makes the market in a state of equilibrium, and then spread in the opposite direction only to recover and reach another point of equilibrium, then come events or data to move the market in a new direction and so on Day after day. The benchmarks can help us determine how resilient the market will be before it recovers.

While there are many time frames that can be used to calculate pivot points, but for the purpose of exercise let’s focus on the daily framework (ie, 24 hours). Points are calculated using the opening, closing, closing and closing numbers of the previous day. There are a lot of Pivot Points available on the Internet so you do not need to waste your time manually. Also keep in mind that the more time frame you use, the more time you have to stay in the market or wait until you reach the next entry point.

Pivot points other than other indicators are objective. This is because they are math calculated, so there will be only one answer for each time period.

Many personal indicators, such as the Fibo Nachi correction levels (and I am a fan of Vipo), Elliot waves, etc. can bring together different people who trade in different directions at the same time due to individual interpretations.

Pivot Points can help predict the next day’s peaks and lows in advance. Pivot points can give you between 4 to 8 levels of support and resistance. However, you still need to set the direction yourself to become a successful trader using pipot points. The focus points also work best when the market is in a clear direction.

Entry and exit points

Pivot Points can give you specific entry and exit points, rather than entering the market in the middle of a move or about to change direction. Here we’ll explain how to use other indicators to help us get in and out. If the market slows down at a certain point and you have a handle to determine the peak of the buy or sell, this will help determine the best time to enter or exit. If a Fibonacci level coincides with the pivot level, this will create a strong entry / exit situation. If the market is bullish and your preferred index is not near the peak, when it touches the first resistance level, you may be in a good position to stay in the market by placing your profit target at the next pivot point resistance line. A break above the resistance level can then make it your new stop or stop.

Clearly, the opposite will be true in the case of support lines as well. By merging your pivot points with your favorite indicator you can develop your own trading system that no one else uses.

Today’s trading is likely to remain between the first support levels (S1) and the resistance (R1) as traders paint a picture of their markets. Once one of these levels is breached, other traders will begin to enter the market, and when the second level breaks, long term traders are likely to begin to attract to the market.

Find out where traders expect support and resistance points can be a great advantage especially when there is no external influence on the market. If there is no significant market news between yesterday’s close and the opening today, local traders and market makers tend to move the market between the P (P), the first support (S1) and the resistance (R1). If you break one of these levels, we can expect that the market is heading to test the following levels ((R2) and (R3)

While there are many other aspects related to the trade focal point, but why he is not trying to experience this simple way first and see whether they will develop own your strategy through the use of existing trade techniques in parallel with the focal points.

Binary Options vs Forex Trade – Facts You Ought to Know to Earn Money

When trading Forex, one usually looks to find simpler, faster and safer ways to make money. There are huge possibilities for huge profits, but a careful understanding of risks, returns, price fluctuations and accurate expectations are some of the key things to be aware of. Many people want to know more about the comparison of binary options versus forex, and whether Hydra APP Scam binary options are a good alternative to the usual Forex trade; what are their differences, the risks associated with them, etc. First of all, the binary options trade is different from the usual Forex trade in terms of rates of return, fees and risk. It is also worth noting here that it has a completely different structure for liquidity and the investment process. Binary options are a great alternative as long as the trader is able to carry out hedging and forecasting appropriately, as well as the need for the trader to know the comprehensive about the possible consequences of this type of trade, which does not exceed two.

Hydra APP Review
Hydra APP Review

Binary Options vs. Forex – Basics

Binary options are often classified as “anomalies” and are relatively simpler to understand and practice than traditional options. Unlike foreign exchange trading, binary options can be exercised in stock and commodity markets and indices. They are often referred to as fixed yield options because they involve a fixed expiration time and a fixed exercise price. If the trader is able to predict the direction in which the market will move correctly within the specified period of time, and close the price of the asset by the expiry time on the right side of the exercise price, the trader gets a fixed amount no matter how long the asset moves. On the other hand, if the trader’s expectations about the direction of the market are wrong by the time of expiration, he loses some or all of his investments.

How to win a deal for binary options

The most important thing you need to know when comparing binary and forex trading is that in the case of regular trades, the amount of profit or loss remains unknown in advance, unlike the binary options where the expiration time, the exercise price and the risk involved in the transaction are all predefined and clear Since the beginning of the transaction. The trader who expects the market to end the highest practice price is exercising the so-called “callback” option, on the other hand if the trader expects the market to end below the practice price by the expiry time, he is exercising the “position” option.

A trader makes a profit using the call option if the price of the asset ends by the expiry time of the highest exercise price. While the trader makes a profit in the case of a position option if the price of the asset ends by the expiry time below the exercise price. Regardless of the amount of money invested, the trader gets a fixed rate of return to be determined at the beginning of the transaction.

Binary options vs. Forex, another difference

Since all factors are predetermined in binary options trading, the investor does not need to spend all his time monitoring market volatility as long as he opens the deal. Once the transaction is completed, the trader is not allowed to liquefy or exit the transaction before the expiry time is reached.

Example of a binary options deal

If the trader predicts that he will end the highest practice price, he is not sure about the amount of the move. For example, if the trader is watching the S & P 500 which is currently trading at 1150 and find one broker that provides the same exercise price by the end of the day. In this case, the trader may decide to buy a call option that provides an 80% return if the option ends above the 1150 level and loses 85% of its investment if the option ends below 1150.

As binary options have multiple expiration times ranging from several minutes to months and can be purchased at all types of practice prices, the Hydra APP Trader has no difficulty finding the right binary option for his or her potential. The amount of investment and general terms and conditions may vary from broker to broker; therefore, the smart investor must carefully look at all the details before starting to trade binary options.

Reality of Online Forex Trading

The foreign exchange market is essentially a currency trade. Most currencies can be traded. Large volumes of these currencies are exchanged 24 hours a day and five days a week. On average, $ 1.9 trillion is traded daily. The most currencies in terms of volumes are the US Dollar, the Japanese Yen, the Euro, the Canadian Dollar, the Pound Sterling, the Australian Dollar and the Swiss Franc.

You will find many brokers who will be able to open a trading account with a minimum deposit of $ 250. Although this may seem a small amount, remember that you will use margin in your trade. So your $ 250 investment will allow you to control $ 25,000. Since all types of investments are not risk averse, make sure you take the time to study the markets before you start your forex deals. Personally I recommend Hydra System that you do some paperwork first until you are sure of your ability to understand the mechanics of the market. Training is risk-free. All you have to do is write the deals you would like to do on real prices. Buy and sell to see in the end if you have reached the right strategy before you begin to do real trades.

You will need a high-speed Internet connection so you can work in the Forex market. The broker you will deal with will provide you with many tools on the Internet that will allow you to study the market: Instant quotes and news feeds:

You can visit different Forex broker sites and then compare the services they offer. Some brokers may give you the ability to open demo accounts. It is recommended that you do this to test the trading programs they offer and therefore choose the best among them.

Before you start trading the market you must make sure that you fully understand the terms related to the world of commerce such as the order of the market, order limit, stop order. You can find definitions for these terms and more other information by visiting Calculating Forex Profits and Losses.

Each currency has a standard standard used throughout the world, for example: EUR EUR GBP UK GBP AUD. Of course you do not have to be aware of all these currencies but it will be important that you have the ability to recognize the major currencies to help you make quick trading decisions.

To make good assessments you will need information. Monitor the events in the world carefully, including economic and political news. You will be surprised to see that some events that may seem insignificant cause sharp fluctuations in the currency market.

HB Swiss Winning Strategies

HB Swiss Winning Strategies HB Swiss is a smart trading software powered with auto intelligence algorithm that never stops learning from its HBSwiss data and improving results

The goal of any HB Swiss organization is to deliver outstanding and sustainable performance. “Performance” for the organization means “return on investment” and “sustainable” means that this performance will continue in the long run rather than just the next quarterly profit target. The word “distinct” means that it is better than competitors so that the company is always at the forefront when more capital is needed, which makes it more sustainable. What does it take for an institution to deliver superior and sustainable performance? First, a good strategy is needed, and a combination of options for positioning and how to compete. Secondly, good implementation and integration of actions for the implementation of the strategy is needed. Both of these require good leadership to ensure that the right choices are taken and that the right actions are taken. In this special report by Dr. John Wales, President of the International Institute for Management Development (IMD), Switzerland, the focus is on winning strategies, competitive realities, competitive advantage and profits.

HB Swiss
HB Swiss

HB Swiss

The real possibility of profit

The assessment of any Hans Berger HB Swiss business opportunity begins by determining the value provided to the HBSwiss customer. This is a measure of the maximum price the customer is willing to pay. We need to compare this price with the cost of providing the customer with the service or the commodity. The difference between them is a measure of the probability of profit.

However, customers rarely pay the highest price, and the actual price is the product of market competition. If the competition is low, the prices are close to the maximum the customer can pay. In the event of increased competition, prices can fall rapidly to the cost of supply or even lower, in which case the company is likely to go bankrupt. The level of competition varies greatly from one business to another and affects the level of profitability that a medium-sized company can expect.

Sources of competition for profits

When evaluating the level of competition in a field, it is easy to make the mistake of focusing only on direct competitors. The number of direct competitors is certainly important; the higher the number of competitors and the more competition, the lower the average profit. However, it is important to take a more comprehensive view of competition. There are many sources of competition for profits [see Michael Porter, Competitive Strategy, Figure 17]. Powerful customers can extract most of the profit from a HB Swiss company, which many companies have noticed when providing service to a major retailer such as HB Swiss. Top suppliers can also get a lot of profit. The PC industry, for example, is not very profitable because most of the profits in the supply line are controlled by Intel and Microsoft.

However, even if there are a few competitors, suppliers and customers have limited leverage, the profits will also not last long if it is easy to enter into this area. In order to achieve long-term profitability with, barriers and barriers to entry must be high. Business people often fail to take this into account. The new idea may look amazingly valuable, but it will not be profitable for a long time if it is easy to imitate. When entering a domain, it is important for the company to build barriers and barriers for those who come after it.

Last but not least, alternative products set a maximum price that the HBSwiss customer will pay, so there is a maximum profit that the HB Swiss company can achieve.

A careful assessment of the five forces indicates the level of profitability that a medium-sized company can expect. It also indicates ways in which the company can position itself in a position to achieve above-average returns, for example by choosing to provide service to less-powerful client segments. The HB Swiss trends in the five powers also provide an indication of whether the average profitability of the field will rise or fall. Smart investors look to invest in industries that are likely to increase profits in the future and buy shares at a reduced price. Similarly, these investors look to sell companies at a premium price when they believe that profits will fall in the long term.

When evaluating a company, it is also useful to have a more comprehensive look at the total value system, looking upwards towards the supply chain and down towards the distribution channels. It would also be equally useful to consider free products on both sides. The goal is to determine where profits can be made within the value system and how this will change in the future. For example, 25 years of music industry earnings have been earned by major record companies. For 10 years, major retailers offering price cuts have been making a big chunk of profits. Now the distribution and spread of online registrations are tightening up retailers and putting more pressure on record companies.

So the strategy is about selection, and the first and biggest choice the company should take is to choose the battlefield in which to compete. Some fields are more attractive than others. So she has to ask: Which business is more attractive? Which sectors within the sector will generate higher than average returns? Which is more attractive: to be at the top of the pyramid or at its base? How can this change over time? How can the company benefit from these data so that it can choose for itself a position that can achieve higher than average returns?

Look for competitive advantage

Although a company may be able to find an attractive sector within an industry, it is likely that other companies will find it similarly. It is now a matter of building a competitive advantage to help the company win. One method is to provide greater value to customers so that the company can demand higher prices, a so-called differentiation strategy. An obvious alternative is to reduce costs to become less than competitors to improve margins. It is often difficult to focus on doing both at the same time, and here is the second major strategic choice that the company must take. What weapons do the company choose to win? Will it resort to a trade-off or lower cost method?

Thus, the company’s profit potential consists of three components: the real mean of profitability within the field, the growing profit from finding attractive sectors within the field, and the size of competitive advantage compared to other competitors in the same sector.

The trade-off: stimulate the process of achieving a higher price

The trade-off can not be summed up in mere difference and exclusivity. I myself know many companies that offer unique but unprofitable products. The goal of differentiation is to be better from the perspective of the client. A critical test that will determine whether a company has better products is whether it can maintain a high price for what it offers and at the same time have a market share. If the company sells at the same price, then it should get a larger share of the market because its customers prefer it to competitors. However, just having a product at a high price does not mean that it has a competitive advantage. The definition of the advantage is that it turns into higher profits; therefore the price difference must exceed any additional costs. Many companies make the mistake of adding two dollars to the cost of their product to make themselves better, but they only earn one dollar as a price difference. This is a complex form of charitable work. The trade-off requires a strict economic system. The company must know the cost of the unit it produces compared to its competitors and also know about its relative price. They must be satisfied with their cost base as they realize that they can achieve price differentials to cover incremental costs.

It is important to fully understand the needs of customers to achieve price difference. For example, customers in the Rollman Blend industry are willing to pay more than twice as much as Rollman’s crew for the time of another crew, because in this case they will not only buy half the amount they have to buy, but will also save installation costs. Understanding customer economics provides a deeper insight into the market price differentials. The proper way to deal with the issue of differentiation requires sound estimates of the issue of willingness to pay.

Value Inquiry Group

When a company determines how to find additional value, it has to choose how it will achieve that value. What activities should they invest in? For example, in the case of the Rolman Bally factory, which manufactures a life-long product that is twice the age of competitors’ products, there is an obvious option to sell a soft roller, but it may be reasonable to provide a machine maintenance service because this will allow the company to provide more installation costs. The Company may also choose to commence the concession to offer Machine Maintenance Services. It can also license other Rollman producers to manufacture it. There are many methods to compete, each of which involves different forms of investment, different possibilities to achieve value, different levels of strategic control. Strategy is a matter of choice!

Cost Less

To achieve high levels of profitability, the low cost is not enough; the goal is to have a lower cost than the competitor. In addition, it is not acceptable to have a lower cost, but you are offering a lower quality product. The goal should be the lower cost for the same product or service. If customers demand a reduction, it should be smaller than a low cost advantage so that a distinct profitability can be achieved.

Whether the company chooses to be low-cost or privileged, it must clearly have a very good understanding of its relative cost location. This information is difficult to obtain from published accounts. It is best to look at the cost of each activity involved and then model changes in each of these costs (for example, volume of operations, nature of technology, plant location and the like). In this understanding of cost shifts, the company should then ask the question: “How much will our costs be if we work in the same place and in the same way as our competitors?” This provides a reasonable estimate of the relative cost position and also helps determine how to modify activities to find cost .

Cost reduction activities

Once the company determines how it can achieve a lower cost, it must choose the scope of its activities. You may choose to avoid activities where a large number of suppliers are at low cost and much competition, and it is best for the company to buy such products or services from the market. On the other hand, activities that are important for competitive advantage or high profitability have higher investment priorities.

Predict competitors

There can be no strategy while you are in isolation from what is around you. It depends on the location of the competitors and what they are expected to do. What advantages do they have? What is their main objective? How did they behave in the past? What does this tell us about how they move in the future? How can they react to any moves the company might make? This deep knowledge allows the company to predict and anticipate movements and countermeasures, and determine its movements.

The company must assess the potential speed of the competitor’s reaction to anything the company is doing, what it will cost when it responds, and what impact this will have on the company’s competitive advantage. Ideally, the HB Swiss company should look forward to moves expected to be a slow competitor response, and the cost of response is very high, and the company, as a result of this move, has increased its relative position.

When a competitor’s reaction is delayed because of the costs involved, this allows the company a significant amount of time to enjoy the additional profit from its new idea. However, since a move leads to a delay in the competitor’s reaction, the company should still consider such moves strategically safe, even if the opponent’s reaction is rapid. The difficulty is when a competitor becomes more competitive once he has reacted. In this case, as long as the opponent’s response is slow, it is still logical for the company to present the new idea as long as it can reap a good amount of revenue before the competitor responds. However, once a competitor imitates the idea, the company has no choice but to find another new idea for profitable profits, because the competitor is now stronger. The idea of ​​this strategy revolves around how to anticipate competitors and stay in the forefront.

But it should be noted that the most dangerous new idea is the idea that the competitor can imitate quickly and at a lower cost. Any HB Swiss company that intends to offer such a product will be a person who is committing an unforgivable strategic sin.

What is the extension in Forex?

What Is The Extension In Forex? As a whole wants to master the skill or a career in one of the areas, should everyone wants to become a trader or wants access to the trading and Forex markets world be aware of the various aspects of the foreign exchange market and the laws that govern the basic concepts and terminology used by the participants in this market. In this Step 2 Wealth Review article we will talk about the interest rate on the extension or “roll-over”, which is one of the basic concepts that should be on every trader pairs of foreign currencies to know.

What is the benefit to the extension in the forex market?
Interest on the extension or “rollover” (Rollover Interest) as defined in the foreign exchange markets, the interest rate paid for the Forex trader or deducted from your account when you leave an open position on a particular currency pair after 5:00 pm EST (EST ) of the United States.

Forex Trader
Forex Trader

The amount will be deducted from the money from the trader’s account or add this amount when you leave an open position on a pair in the forex market, the amount of this amount, according to the state that a trader to buy or sell currency is determined. It is known that trading currencies in the forex market is done by couples, meaning that the currency is determined by comparing the value of another currency interview, and when you buy a currency, you are selling the counter currency in the pair. The benefit, therefore the extension is determined by the difference between the ratios of interest in the two states, which pair consists of their currencies. For example, when you leave an open position on the EUR / USD “EUR / USD” after 5:00 EDT proportion of the benefit extension be the difference between the interest rate applicable in the European Union and the proportion of interest rate applicable in the United States.

In most cases it will be deducted or added benefit extension to the trader’s account automatically by the financial intermediary. The Step 2 Wealth mediators in this process to avoid even traders who are mostly speculators in the short term to do the actual delivery of the currencies of the other counterparty in the deal, a process known as “reconciliation.” It is through the settlement must do rolling physical delivery of the currencies of two days of the deal after the other party. Through the process of extension by the financial intermediaries trader can keep an open Bmrakzh without doing the extradition process, because if he had not been the extension will also need rolling the nominal value of the currency, which has traded on delivery.

Looking at the Forex Market – NetoTrade

It will be deducted or added benefit of the extension by the total nominal value and not the value of the user in the transaction margin. For example, if a trader purchased the contract of the currency pair “EUR / USD” worth $ 100,000 will be useful extension to the sum of the contract, or $ 100,000 account, not only the margin used in the deal.

We must understand that the benefit extension unrelated charges the use of financial leverage, because many people confuse the benefit extension and fees calculated on the use of the leverage offered by the broker to the trader to increase its ability to trade many times what he had to check in in the account, but the benefit of extension relating to the difference between the ratios interest in force in the countries where the rolling trading currencies.
Pay and deduct the interest on extension
Or pay interest on the extension deduction depends on the currency component currencies for a couple who bought it rolling and states to which they belong and the interest rate applicable in these countries Is it high or not. For example, if the trader buys the currency pair USD / JPY (US dollar against the Japanese yen) it means that he bought the currency the US dollar and selling currency Japanese yen, and the dollar interest 2 percent compared with 0.5% on the Japanese yen, the rolling It will get the benefit of extending the equivalent of 1.5% (on an annual basis). In the case of a trader to sell the currency pair USD / JPY, ie rolling sold the US dollar and buy the yen it will benefit from the extension of his account which is equal to the difference in interest between the two countries, which are equivalent to 1.5% of the expense ratios rolling discount.

Simply put, the interest will be paid if the trader has bought a currency interest rate in the country to which it belongs is greater than the interest rate in the country to which it belongs counter currency in the pair. This interest will be deducted from it in the case was the interest of the coin, which was bought from the lowest interest rates on the counter currency in the pair ratio. And the interest rate in any country is determined by many factors and economic conditions which are constantly changing depending on economic indicators as percentages of growth and inflation rates.

Because most banks in the world close at the end of the week, any Saturday and Sunday, the interest rate on these two days be applied on Wednesday, that is, in the case of the trader to leave the position open on Wednesday after the 5:00 pm EDT, will be deducted or pay additional benefit for day laborers.

The financial intermediaries operations extension automatically, and traders can see a discount or payment operations with immediate effect on a platform of their own trading account for each deal left open after 5:00 ET.

Learn about Rollover Interest – NetoTrade
Take advantage of the extensions
Traders can take advantage of the extension of operations and increase their profits, which included traders interest rates in the criteria to make their decisions for circulation to achieve the greatest possible use. The so some traders to daily (Day traders) to leave their positions open after 5:00 pm Eastern time the United States to take advantage of the benefit extension when buying a currency with a high interest rate compared to the same currency in the pair. The traders also “swing” and investors to buy high interest rate currency only to take advantage of the benefit extension.

In addition, the trader can in case it is expected that the price of a currency will not move in the direction that he wants and will remain fluctuate accidentally during this year, you can take advantage of the interest rate differential between the currencies of the pair. For example, if the investor has purchased a pair EUR / JPY (euro against the yen) and is expected to end the year at the same level, will be able to make a profit through the use of financial leverage, usefulness to extend the equivalent of 2% will result in a gain of 20% if the lever used financial equal to 10: 1. This may also cause a loss to the Forex trader if he bought the currency low utility ratio means it will lose 2% or 20% in the case of the use of financial leverage.

The Impact Of New Laws On Financial Traded Funds

The Impact Of New Laws On Financial Traded Funds For many years investors to keep their money in money market funds, these funds that provide assets with a return on short-term, enable investors to buy its assets for $ 1 each asset. 100K Factory Revolution Review Investors prefer to individuals investing in these financial funds because they offer returns in the short term the greatest returns offered by bank deposits. But the global financial crisis of 2008, increased the US Securities and Markets Authority fears of the impact of these funds on the markets in the event of another financial crisis.

What made this body, which is the largest organization of capital markets staff in the United States to enact a set of new laws during 2016, which will do starting from the month of October of the same year. Among the most prominent new procedures to cancel the base “of $ 1” provided most of the cash financial funds, so that the price of the underlying will change depending on variables and market conditions, as well as some fees and commissions that will be added in the case of an investor wanted to withdraw his money in bad market conditions.


Financial cash funds
Monetary and financial funds, also known as the cash market, are investment funds that invest in assets with short-term income securities, bonds of US Treasury trading and securities tradable unsecured and with a fixed maturity repayment period from one day to 270 days. Investors these financial funds and is considered safe assets with a greater return of deposits offered by commercial banks. The total assets in this market of 2.7 thousand billion dollars in the United States of America.

Financial cash funds designed to reduce exposure to losses resulting from loans and market risk and liquidity risk. These investment funds are subject to the control of the US Securities and Exchange Commission (Securities and Exchange Commission (SEC)). And investing in high-security loans and financial instruments that are maturing less than 270 days.

After the global financial crisis of 2008 and the securities markets and US regulatory bodies and other body began by making Takovadtha of these funds and their ability to destabilize financial markets in the event of a financial crisis. To start so these bodies starting in 2014, new laws governing the transactions and investment funds in the financial cash.

Traded Index and the effect of the new laws funds
ETFs, known in the world of financial markets, the symbol ETF (exchange-traded fund), is an investment fund traded on stock markets, in the same way in which the stock trading. Each fund tracks the price range of shares or bonds movement, or the price of a particular commodity. Most ETFs are tracking the movement of the stock market indices, as well as certain sectors of the stock and bond market indices. These funds, attract a lot of investors because the United Trading Network Review investment cost little compared to other financial instruments, and take advantage of tax concessions may sometimes up to full exemption.

The age of the new rules by the Securities and Exchange Commission relating to monetary and financial funds, which will take effect from mid-October 2016, aims to reduce risk by trying to prevent investors from closing their positions in time unit in the event of a crisis. But these new laws has not received satisfaction of investors and fund managers who invest in money market assets with short-term returns. Which may be a positive factor for some ETFs that may be a refuge for those affected by the new laws investor funds. The most important ETFs that could benefit from the new rules issued by the US Securities and Exchange Commission are the following funds:

– SPDR Barclays 1-3 Month T-Bill ETF (BIL): indicators fund trader with a return in the short term, is to invest in US Treasury bonds for shorter maturities or equal to 3 months. Of the fund value of $ 1.6 billion, and at a cost of 0.14% of the amount invested, or $ 14 for each $ 10,000 invested. The yield on the fund and arrive at the current time on the 0.13% on a monthly basis.

– IShares Short Treasury Bond ETF (SHV): indicators fund trader with a return in the short term, is to invest in US Treasury bonds with a maturity of up to 12 months. This fund provides financial back up to 0.30% on a monthly basis. While worth $ 3.4 billion in terms of total assets with a cost of 0.15% in.

– Goldman Sachs Treasury Access 0-1 Year ETF (GBIL): indicators fund trader with a return in the short term, is to invest in US Treasury bonds like “T-notes” and “T-bills” bonds that are maturing less than 12 months. The cost of investing in this fund 0.14% while the value of the total assets of $ 20 million.
– Guggenheim Enhanced Short Duration ETF (GSY): traded fund indices with a return in the short term, of the value of total assets under management of $ 907 million and seeks to outperform Treasuries Index “Barclays Capital 1-3 Month U.S. Treasury Bill Index”. This fund will invest in a wide range of fixed-income financial instruments, like financial commercial paper and bank loans, with the period of entitlement to an average of 15 months, while the cost of investment in the fund of 0.25% with a return of 1.13% on a monthly basis.

PIMCO Enhanced Short Maturity Active ETF (MINT): current indications fund a return in the short term is worth the total assets under management of $ 4.9 billion, and aims to achieve a higher proportion of middle-profits offered by financial funds cash dividends, and by investing in loans short-term and high-quality. The cost of investing in this financial fund of 0.25% with a return of 1.13% on a monthly basis.

– FlexShares Ready Access Variable Income Fund (RAVI): Fund current indicators is return on short-term value of the total assets it manages $ 98 million. The fund invests in the same outbound investment feature of the US Treasury and the governments of other countries, as well as to invest in corporate bonds loans. The cost of investing in this fund 0.25% with a yield of 0.75% on a monthly basis.