Forex Digest

Does anyone play the forex market? and what strategies do you have to reading the charts. i can never figure it out. Can someone help me to make a trade based on the current chart situation, and what factors do i need to look for in order to make a successful trade? Thank you in advance.

Hi,
I'm trading forex.
I think all your interesting questions are disclosed in those books:
Technical Analysis by Jack D. Schwager;

Comprehensive Course on The Wave Principle by A.J. Frost and Robert Prechter;

Candlestick Charting Explained- Timeless Techniques for Trading Stocks and Futures by Gregory L. Morris;

Trading Chaos – Applying Expert Techniques to Maximize Your Profit by Bill Williams;
New Trading Dimensions by Bill Williams

Read it and you discover how useful those are. Than you be able to create your own trading technique accordingly to your available funds, time and character

2006-11-30 08:06:25 by fiasco007

Learn who trades Forex and why

Anybody can tell me how forex options affect forex market? Do they actually affect the market only when they are exercised? Does an exercise of a forex option occur at the same time as a sell-off of the option? (My understanding is that when an option expires, you have to exercise it then sell it to make profit)
OK, for more clarification, my understanding is that, when an option is exercised, you open a position at the stated price. But I don't know if the opened position has to be closed immediately. Correct me if I am wrong.

Typically, what happens is you will be given the difference between the strike price and the current market price, as clearly the Writer of the Option cannot physically deliver a curreny pair at an older, lesser price than the market. So they owe to indemnify you, or place in you in a financial position similar to that as if you have the currency pair at the current market value.
Now as for option contracts, YOU DO NOT need to exercise them if they are about to expire. That would make no sense, as if they are 'out-the-money' you would lose money. A contract can expire, leaving you out the contract's premium.

Hope this helped

2007-12-26 14:09:15 by Pat

I have different sources tell me yes and no. I know a lot of new bylaws have been passed to govern the Forex market and the people who trade in it. But for the ordinary person that trades for forex for friends and family do you need to be registered? Are IB and Money Managers the same thing?

Hi,

Different countries have different laws.

Generally speaking, if you're just trading for your friends and relatives, you probably don't need to be registered.

However, if you're looking to trade professionally (on behalf with clients), then it's a more complicated matter.

If you are looking for the best forex software, visit this site

http://the-best-forex-software-in-intern et.blogspot.com/

This software is the best software that can help increase your trading profit and user friendly.


Best Wishes,

2009-09-02 19:54:06 by lupita

I currently dabble in the forex market and using a US broker. How will I be taxed on my earnings, and what happeneds if I lose money that year, is it a capital loss? HOw does this work in regards to canadian tax laws with the broker being in the US?

Your tax reporting for dealing with a US broker is the same as dealing with a cdn broker in that the income reporting and transactions should be translated in Cdn $.

Regarding your quesion whether your loss should be a capital loss depends on whether your "playing" in the fx market constiute an investment or a business. There are no provisions in the Act which specify whether a foreign exchange gain or loss is on account of income or capital. An investment is generally in a situation of buy and hold, while a business is in a situation when you are knowledgeable and maybe with insider information, lots of daily time spent and numerous buys and sells during the day or week, etc.

Please see the CRA’s IT-95R “Foreign Exchange Gains and Losses”. http://www.cra-arc.gc.ca/E/pub/tp/it95r/ it95r-e.txt

2008-06-11 11:44:44 by dodger346

No one ever seems to talk about the Forex market.

Actually the US dollar has been doing well during the recent crisis. Since this is a global financial event, foreigners think the dollar is safer than a lot of their home currencies.
In the Forex market, you're always comparing one currency to another- it's not like the DOW that either goes up or down. So if the dollar goes up versus the Euro, one is going up while the other is going down.
They don't like to talk about the Forex because the PTB (Powers That Be) would prefer that you invest your money here in the US of A. If you buy Euros or British Pounds or whatever, you're investing overseas.

2009-01-06 12:31:20 by kglover86