Posted by admin on February 27, 2010 under Forex Knowledge | 
Forex margin allow long or short different currency pair
- Sellers are ASKing for a high price
- Buyers are BIDding at a lower price
- Trading is an auction
- Slippage occurs with most Market Orders
- The difference between the ASK and the BID price is the Spread
- Sellers are ASKing for a high pricen Buyers are BIDding at a lower pricen Trading is an auctionn Slippage occurs with most Market Ordersn The difference between the ASK and the BID price is the Spread
Posted by admin on under Forex Knowledge |
Forex market is tow way market
Currencies are traded in pairs,for example usd/jpy or usd/cad.every position involves the selling of one currency and the buying of another.if a trader believes the cad will appreciate against the usd.the trader can sell usd and buy cad.if one holds the opposite belief,that trader can buy usd and sell cad .the potential for profit exists because there is always movement in the exchange rates.
Posted by admin on under Forex Knowledge |
WHAT IS ZERO SUM GAME/GAIN
In forex market, zero-sum game or zer sum gain describes a situation in which a participant’s gain or loss is exactly balanced by the losses or gains of the other participant(s). If the total gains of the participants are added up, and the total losses are subtracted, they will sum to zero. Zero-sum can be thought of more generally as constant sum where the benefits and losses to all players sum to the same value of money (or utility). Cutting a cake is zero- or constant-sum, because taking a larger piece reduces the amount of cake available for others. In contrast, non-zero-sum describes a situation in which the interacting parties’ aggregate gains and losses is either less than or more than zero. Zero-sum games are also called strictly competitive.
Posted by admin on under Forex Knowledge |
WHAT MEAN FOREX
The FOREX(foreign exchange) is a interbank market established in 1971 .This market is the arena in which the currency of one country is exchanged for those of another and where settlements for international business are made.
The forex including interbank, government central banks andr commercial group.Payments for imports and exports flow through the forex markets,as well as payments for purchases and sales of assets.This is called the “consumer” forex market.There is also a “speculator” segment in the forex companies,which have large financial exposures to overseas economies participate in the foreign exchange market to offset the risks of international investing.
FOREX FEATURES
- You can trading 24 hours a day
- You can forex trading online
- Forex is larger than all other financial markets combined
Posted by admin on February 11, 2010 under Central Bank |
BOJ Website
The Bank of Japan was born after the Meiji Restoration. Prior to the Restoration, Japan’s feudal fiefs all issued their own money, hansatsu, in an array of incompatible denominations, but the New Currency Act of Meiji 4 (1871) did away with these and established the yen as the new decimal currency. The former han (fiefs) became prefectures and their mints became private chartered banks which, however, initially retained the right to print money.
More information from BOJ website:
Bank of Japan official site
Posted by admin on under Central Bank |
BOJ History
The Bank of Japan was established under the Bank of Japan Act (promulgated in June 1882) and began operating on October 10, 1882, as the nation’s central bank. The Bank was reorganized on May 1, 1942 in conformity with the Bank of Japan Act (hereafter the Act of 1942), promulgated in February 1942. The Act of 1942 strongly reflected the wartime situation: for example, Article 1 stated the objectives of the Bank as “the regulation of the currency, control and facilitation of credit and finance, and the maintenance and fostering of the credit system, pursuant to national policy, in order that the general economic activities of the nation might adequately be enhanced.” The Act of 1942 was amended several times after World War II. Such amendments included the establishment of the Policy Board as the Bank’s highest decision-making body in June 1949.
The Act of 1942 was revised completely in June 1997 under the two principles of “independence” and “transparency.” The revised act (the Act) came into effect on April 1, 1998.
Posted by admin on February 10, 2010 under Central Bank |
Objective The primary objective of the ECB’s monetary policy is to maintain price stability. The ECB aims at inflation rates of below, but close to, 2% over the medium term.
To maintain price stability is the primary objective of the Eurosystem and of the single monetary policy for which it is responsible. This is laid down in the Treaty establishing the European Community, Article 105 (1).
“Without prejudice to the objective of price stability”, the Eurosystem will also “support the general economic policies in the Community with a view to contributing to the achievement of the objectives of the Community”. These include a “high level of employment” and “sustainable and non-inflationary growth”.
The Treaty establishes a clear hierarchy of objectives for the Eurosystem. It assigns overriding importance to price stability. The Treaty makes clear that ensuring price stability is the most important contribution that monetary policy can make to achieve a favourable economic environment and a high level of employment.
Posted by admin on under Central Bank |
What is ECB
The ECB full name is European Central Bank, The legal basis for the single monetary policy is the Treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank. The Statute established both the ECB and the European System of Central Banks (ESCB) as from 1 June 1998. The ECB was established as the core of the Eurosystem and the ESCB. The ECB and the national central banks together perform the tasks they have been entrusted with. The ECB has legal personality under public international law.
Posted by admin on under Central Bank |
What is Fed doing,Please see below:
- conducting the nation’s monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices
- supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers
- maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
- providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation’s payments systems
For an overview of the Federal Reserve and its responsibilities, see The Federal Reserve System:
Posted by admin on under Central Bank |
What Is Fed
Fed Full name is The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed,” is the central bank of the United States. It was created by Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role has evolved and expanded.
