GoLearn Forex Analysis 9/12/2009
Posted by Cedrick Toledano in Uncategorized on December 9th, 2009
Pound Range Bound Since May by GoLearn Forex
GBP/USD:
The Greenback continues to rally and we are approaching pivotal handles across the G-10. The GBP has been range bound since the end of May, so much so, that it is the worst performing currency against the Dollar amongst the G-10 since May 25th. Currently the 100 day MA is sitting above the 50 day MA which is indicative of a falling price environment.
The Pound is currently trading at 1.6276 and the 50 SMA is sitting at 1.6404. A close below the 50 SMA generates a strong Short entry signal. In addition, using the Fibonacci Retrace from the Cable’s low on March 11th at 1.3657 to the Cable’s high at 1.7043 on August 5th brings to the forefront some important levels.
INSERT CHART A
The 23.6% Retrace level sits at 1.6244 just 30 pips from the current mark. The close today likely below the 50 SMA coupled with a breach of the 23.6% level may send the GBP free falling to the next Fibo level of 38.2% or 1.5749.
There are a number of trading indicators that are used for ranging markets versus trending markets. The MACD is a common and important tool for traders as it more easily identifies momentum and changes thereto. In the Chart below the red vertical line highlights the crossover of the Average versus the MACD, representing a shift in momentum.
INSERT CHART B
Another indicative technical pattern we use are lower lows, lower highs and vice versa. As you see on the chart above we have been trending down within the range. More importantly we have reached a succession of lower high and lower lows. The more the pattern repeats itself the greater the confirmation of the move and the more likely it is to continue.
The combination of MA’s, Fibonacci’s, MACD, and technical patterns identifies potential entry points, momentum, and profit targets.
Gold Continues Sell-off by GoLearn Forex
Global Equity Markets slumped on Tuesday as a wave of poor economic news and lowered rating caught the market off guard. In Japan, GDP printed less than forecasted, coming in at 1.3%. Fitch lowered its rating on Greece. In Dubai, the main developer reported a $3.65 billion loss contributing to the market’s woes. The DJIA finished the session down 104.14 points to close at 10,287.97
The Dollar continued its rally feeding off the poor equity performance as risk aversion remained in firm control. The DXY closed at 76.31, a level not seen since early November. Gold continued its selloff as it closed the day down $30 to 1,128.40. Oil was not far behind finishing the day down $1.31 to 72.62 a barrel.
The BOC left rates unchanged at .25. In Switzerland, Unemployment printed as expected for November at 4.2%. Later today the RBZ will announce its Interest Rate decision. They are widely expected to keep rates on hold, currently at 2.5%. With no relief insight we expect the dollar rally to continue in to today.
Upcoming Forex Events for December 9, 2009
CHF Unemployment Rate Actual 4.10% Forecast 4.20% Previous 4.10%
EUR German CPI (MoM) Actual -0.10% Forecast -0.20% Previous -0.20%
NZD Interest Rate Decision Forecast 2.50% Previous 2.50%
AUD Employment Change Forecast 6.00K Previous 24.50K
Analysis by http://www.golearnforex.net
Daily Review 09/12/2009
Posted by Cedrick Toledano in Uncategorized on December 9th, 2009
USD Dollar (USD)
The Dollar continued gaining versus most majors as investors turned to the Safe Haven of the Dollar as the global economy keeps struggling to end the recession. President Obama called for more federal spending to fight the unemployment. IBD/TIPP Economic Optimism was out weaker with 46.8 versus 49.5 expected. NASDAQ and Dow Jones dropped by -0.76% and -1.00% respectively as the Dollar strengthened. Crude weakened by -1.23% closing at 73.02$ a barrel and Gold (XAU) fell by -2.87% closing at 1130$ an ounce on a stronger Dollar. Today, Wholesale Inventories are expected with -0.6% versus -0.9% prior.
EURO (EUR)
The Euro continued falling versus the Dollar, breaking below the 1.48 support level. German Industrial Production came out weaker with -1.8% versus 1.1% expected and sent equity markets to declines. Overall, EUR/USD traded with a low of 1.4680 and with a high of 1.4867. French Non-Farm Payrolls will be released at night and are expected to remain with 0% change. ECB Monthly Report will also be released at night giving outlooks for various economic issues.
EUR/USD – Last: 1.4699
|
Resistance |
1.4735 |
1.4896 |
1.5090 |
|
Support |
1.4668 |
|
|
British Pound (GBP)
The Pound dropped versus the Dollar after Manufacturing Production came out short with 0% versus 0.5% expected. NIESR GDP Estimate came out 0.2% versus -0.4% prior. Overall, GBP/USD traded with a low of 1.6255 and a high of 1.6476. Today, Trade Balance is expected with -6.9B versus -7.2B prior.
GBP/USD – Last: 1.6190
|
Resistance |
1.6311 |
1.6515 |
1.6670 |
|
Support |
1.6180 |
|
|
Japanese Yen (JPY)
The Yen gained versus the Dollar and the Euro as risk appetite continued to wane and investors seek the safety of the Yen. Final GDP came out weaker with 0.3% versus 0.8% expected. Overall, USD/JPY traded with a low of 88.16 and a high of 89.51 and EUR/JPY traded with a low of 129.64 and a high of 132.71. Today, Core Machinery Orders are expected with -4.4% versus 10.5% prior.
USD/JPY-Last: 88.00
|
Resistance |
89.17 |
90.10 |
90.77 |
|
Support |
88 |
87.65 |
87 |
Canadian Dollar (CAD)
The Canadian Dollar weakened versus the Dollar as Bank of Canada left the Interest Rate unchanged at 0.25% and Commodity prices continued to weaken lowering the high yielding currency\’s appeal. Housing Starts came out 159K as expected. Overall, USD/CAD traded with a low of 1.0485 and a high of 1.0670. No economic data expected today.
USD/CAD – Last: 1.0647
|
Resistance |
1.0670 |
|
|
|
Support |
1.0611 |
1.0595 |
1.0487 |
Research by http://www.ufxbank.com
The working of binary options
Posted by Cedrick Toledano in Binary Options on December 9th, 2009
This article is aimed at providing an outlook over the binary options which is commonly known as digitals. The focus is not on theoretical or mathematical derivations but on real world behavior.
The binary option components
The main components of binary options are a strike price which is referred to as the payout threshold, a maturity date shows the time limit and an unit which has underlying reference. Commodity, instrument or otherwise called security price make up the other components of the binary option. An up front payment is made in exchange of a binary. The availability of puts and calls is available. The components are similar to that of the standard vanilla American or European style option.
Vanilla option versus Binary
The payout profile is the only thing that differentiates a binary from a standard option when we consider the price dynamics alone. The amount paid by a standard vanilla option is highly variable whereas the binary option pays a fixed amount. None of the strategies promise sure returns, both can expire worthless. The binary option pays a fixed amount when the underlying amount moves “in the money”. The standard vanilla option can pay any amount depending on how much the instrument clears the strike price. Both expire worthless when the instrument show “out of the money”.
Usage of binary options
The binaries find major usage in the markets between sophisticated financial institutions, hedge funds, corporate treasuries, and large trading partners in which binaries are bought and sold over the counter (OTC). They are used more when the underlying instrument is a commodity, currency, rate, event, or index.
The call and put options are very popular in the market for platinum. The price is based on the market price of the quality of metal that is made available. The rates are quoted by dealers in the market, the quotes are made during a given time period. There is a very large amount of trade that happens with platinum. The trade arises between major producers and major dealers. Trade is also done between speculators and dealers. The rates at which trade is made keeps varying with each person. There is no fixed price. The rates are not reported and do not ply to a centralized exchange. In order to strike a deal, a third party agent is always used to make calculations. The agent is used to calculate the best price by considering various factors such as expiration date.
The binary options are mainly used in order to hedge events such as hurricanes, rainfall etc. Major loss is caused to agricultural companies and transportation companies due to the bad weather conditions. The weather conditions are highly volatile and difficult to predict. No one can predict the speed of the wind during a hurricane. The time period of the hurricane, the vicinity of the hurricane and other issues cannot be predicted. This is why the binary option is the best to hedge over such issues.
GoLearn Forex Analysis 8/12/2009
Posted by Cedrick Toledano in Uncategorized on December 8th, 2009
What If the Dollar Takes Off? By GoLearn Forex
NZD/USD:
We are not suggesting the Dollar bulls are running wild, however, every rally in hindsight has a defining moment. Every trader on the street is aware that when the Dollar bulls get set free they are going to come charging. Even if you are a skeptic to the end just the mere massive unwinding of the carry trade would rocket the Greenback.
Our pick would be the NZD and here 3 reasons why:
Performance – Going back to March 9th, 2009 through December 7th, 2009 the top performing G-10 currency (on a percentage basis) against the Greenback has been the Kiwi. It is up 47.24% which is quite shocking given the New Zealand economy is not among the largest of the G-10. To put some perspective on it the EUR is only up 19.59% and the GBP 20.57%
INSERT CHART A
Technical – There are 2 obvious technical reasons that stand out to us. A) A pattern we look for are lower lows and lower highs and vice versa. In the chart below we have depicted the initial emergence of this pattern. B) The Kiwi is already trading below its 50 day MA and on the verge of taking out its 100 day MA, a more significant breakout level than the 50 day MA, which many other G-10 currencies have yet to crack.
INSERT CHART B
Commodities – The Kiwi benefits from rising commodity prices as it is a commodity currency. Commodity prices are quoted in USD so as the Dollar strengthens commodity prices cheapen. If commodity prices cheapen so will the NZD.
Combine these three factors and you may see significant price action on this pair. Of course if the Dollar rallies all currencies will be on their heels but as a trader you are looking for the best trade, and this may be it. We define the best trade as the one with the best risk to return ratio.
Market Flat on Monday by GoLearn Forex
Global Equity Markets were off slightly Monday. A combination of light volume and a lack of any real economic data releases left markets essentially flat as traders continue to be risk averse heading into year end. The Dollar had looked to continue its rally until Fed Reserve Chairman Ben Bernanke’s comments regarding U.S rates remaining low for an “extended period of time” and his seemingly unimpressed manner regarding unemployment put the rally on hold.
The Dollar held its gains from Friday as the DXY closed down only a couple points to 75.757. Gold finished modestly lower to 1,158.10 while Oil gave up a little over a 1.50 a barrel to finish the day at 73.93.
The CAD moved into positive territory as Building Permits jumped 18%. This once again reaffirmed that Canada is in the midst of substantive recovery. This news comes on the heels of the BOC Rate decision today. Mark Carney, Governor of the BOC, has already expressed his commitment to keep rates on hold at least through mid 2010. In Japan, GDP figures are set to print and in the U.K. Industrial Production number are due out. We expect a good amount of volatility in the market today given recent events and today’s prints.
Upcoming Forex Events for December 8, 2009
CAD Interest Rate Decision Forecast 0.25% Previous 0.25%
GBP NIESR GDP Estimate Previous -0.40% 
JPY GDP (QoQ) Forecast 0.90% Previous 1.20%
AUD Home Loans (MoM) Forecast -1.80% Previous 5.10%
Analysis by http://www.golearnforex.net
Daily Review 08/12/2009
Posted by Cedrick Toledano in Uncategorized on December 8th, 2009
USD Dollar (USD)
The Dollar continued Friday’s momentum and gained versus most majors after no major news was released. Chairman Bernanke said the weak employment and tight credit will cause a slow expansion. NASDAQ and Dow Jones ended almost flat moving by -0.22% and 0.01% respectively after Chairman Bernanke said it is too early to declare the recovery will last. Crude weakened by -1.96% closing at 73.99$ a barrel as OPEC ministers flag steady output and Gold (XAU) dropped by -0.22% closing at 1158.8$ an ounce on a stronger Dollar. Today, IBD/TIPP Economic Optimism is expected with 49.5 versus 47.9 prior.
EURO (EUR)
The Euro reached a monthly low versus the Dollar breaking below the 1.48 support level but unable to keep below it. The pair has crossed and remained below the 50 day moving average for the first time in 8 months supporting the Dollar rebound. German Factory Orders came out weaker with -2.1% versus 0.6% expected. Overall, EUR/USD traded with a low of 1.4755 and with a high of 1.4904. Today, German Industrial Production is expected with 1.1% versus 2.7% prior.
EUR/USD – Last: 1.4840
|
Resistance |
1.4900 |
1.4970 |
1.5020 |
|
Support |
1.4775 |
1.4735 |
1.4685 |
British Pound (GBP)
The Pound remained unchanged versus the Dollar and gained slightly versus the Euro as investors await Wednesday announcements from Bank of England. Overall, GBP/USD traded with a low of 1.6312 and a high of 1.6515. Today, Manufacturing Production is expected with 0.5% versus 1.7% prior. Industrial Production is expected with 0.5% versus 1.6% prior. NIESR GDP estimate will be released.
GBP/USD – Last: 1.6460
|
Resistance |
1.6500 |
1.6550 |
1.6600 |
|
Support |
1.6390 |
1.6330 |
1.6275 |
Japanese Yen (JPY)
The Yen gained versus the Dollar as slight declines in world markets along with the Dollar rally lowered risk appetite. Japanese Current Account came out weaker with 1.38T versus 1.6T expected. M2 Money Stock came out weaker with 3.3% versus 3.5% expected. Overall, USD/JPY traded with a low of 89.04 and a high of 90.42 and EUR/JPY traded with a low of 132.36 and a high of 134.36. Today, Final GDP is expected with 0.8% versus 1.2% prior.
USD/JPY-Last: 89.35
|
Resistance |
89.75 |
90.10 |
90.75 |
|
Support |
89.00 |
88.50 |
88.00 |
Canadian Dollar (CAD)
The Canadian Dollar gained versus the Dollar after Building Permits jumped by 18% versus 1.1% expected. Overall, USD/CAD traded with a low of 1.0482 and a high of 1.0649. Today, Bank of Canada will announce the Interest Rate Decision expected to remain at 0.25%. Housing Starts are expected with 159K versus 157K prior.
USD/CAD – Last: 1.051
|
Resistance |
1.0585 |
1.0645 |
1.0690 |
|
Support |
1.0480 |
1.0450 |
1.0430 |
Research by http://www.ufxbank.com
What are Bungee Options in Forex?
Posted by Cedrick Toledano in Bungee Options on December 7th, 2009
Bungee options are a unique type of trading that has opened the doors of higher gains in the fast growing world of forex trade to the retail traders or investors. The low cost forex bungee option dealer has offered the day traders with low investment capacity the ability to carry on the trade and similar type of returns as to that of the highly leveraged forex traders.
Forex is now becoming a very fast paced market of investment; wherein the daily dealings if the investor tops about one hundred billion dollars on the open exchanges. One just needs to give a thought to the vast amount of currency that is changing hands in this retail market. This market is controlled by the regular volumes of the institutional trades passing though the BIS (Bank of International Settlements).
Here the retail forex traders can make an entry to speculate. It is the traders trading that is carried out representing the hedging funds of their accounts that are responsible for about eighty percent of the regular volume of currency trading. This has made the currency trading on the foreign currency movements directly a risky position for the small and retail traders like me and you. This is the reason for the emergence of another kind of trading as one of the leading choice of investment for the people who wish to take part in the forex market: bungee options.
The forex bungee option dealer provides relatively smaller amount of trade. This offers an opportunity to purchase a call and put positions on most of the important cross rates like Euro/ Dollar, Dollar/ Yen, Yen/ Euro, Pound/ Dollar; even the Swiss Franc/ Dollar is open for trading in the bungee exchange market. The bungee market provides an opportunity for the average trader to earn a fixed high yielding return along with a payout that is received either by the end of that particular day or hourly. The trade is very simple to carry out. The dealing here are made in dollars by the forex bungee option dealer, and the put and call orders are simply made just with simple mouse clicks.
If you wish to learn it and enter the market with a positive goal in mind, you will be definitely able to do it within no time. Understand the market conditions by keeping a eye on it and trade accordingly. This will help you to remain updated about the forex market. Bungee options are the easiest ones to trade. With a few knowledge and understanding regarding the bungee market, one can begin to trade effectively in it; irrespective of experience or further knowledge.
So, what are you looking for? Get your mindset and start earning great profits by trading in the bungee options market?
Benefits of Binary Trading
Posted by Cedrick Toledano in Binary Options on December 7th, 2009
Binary trading is a well-known form of trading options. A number of people do prefer it instead of the traditional form of trading because of a number of reasons. Nevertheless, one reason that attracts all to go for the binary trading option is the different benefits offered by it.
Let us have look on these benefits:
1. The binary trading option has a tendency to expire on every hour. It is very different from that of the traditional trading, wherein the options do have a tendency to expire on the third Friday of each month. This is highly beneficial for the binary traders because they can make easy capital hourly rather than waiting for a three weeks period to gain the same.
2. The options in the binary market cannot be implemented before its expiry date. In case of traditional trading, it can be executed any time prior to its expiry date. Thus, it becomes easy for the traders to bargain and discuss the rates until the expiry time in order to make higher gains.
3. The binary trader receives a fix payout that is not the case in traditional trading. it provides only a variable payout depending on the rates of the principal stocks. It means that even in critical circumstances the traders are liable to receive some capital back, whereas in traditional trading the trading variability makes it a complex task for the trade to get back your capital in unfavorable circumstances.
4. The traders in binary trading receive a payout regardless of whether the option agreement they hold is in the money or out of the money. On the contrary, in traditional trading it gives a payout only if the trader’s options seem to be in the money. Thus, binary trading is more beneficial to the binary traders regarding the payout.
5. The agreements are never traded in the secondary market in binary trading, what happens in traditional trading. This keeps the uniqueness intact and makes the entire thing so simple and easy as the agreements are never traded before its expiry date.
6. The binary agreements are in terms of dollars instead of shares. This is not the case in traditional trading. This makes the entire process a profitable one for the binary traders because they can attain indeed a high sum as compared to the traders in traditional trading.
7. The binary broker does not need any added security or guarantee as such, from the traders like that of traditional trading.
8. In binary trade, only the direction that the rate of principal stock takes matters; whereas in traditional trading the size of the principal stock’s movements is what actually matters.
9. The binary trader has limited risks as compared to that of the traditional trader who has unlimited risks associated with them.
GoLearn Forex Analysis 7/12/2009
Posted by Cedrick Toledano in Uncategorized on December 7th, 2009
Dollar Bear Ready for Hibernation? by GoLearn Forex
The Greenback has been offered across the board since March 2009. As long as risk did not rear its ugly head investors were
selling the dollar in favor of better yielding assets. When risk showed up at the Market’s doorstep the Dollar was right
there with it ready to regain market control. We saw this a week and half ago when Dubai spooked the market with a needed
debt restructuring.
The pattern we have seen for the last 9 months has been equities advancing as the dollar slides. Equities would advance on
positive (or at least less negative) economic data. The correlation between increasingly better news and the Greenback was
therefore negative. When normal markets are in control positive news typically strengthens a currency. What we witnessed
Friday may be an early indicator that the Dollar bear is finally ready to hibernate.
Friday brought us 2 very important prints from the U.S. The first was the Change in Nonfarm Payrolls and the Unemployment
Rate. The Change in Nonfarm Payrolls fell by just 11k and the Unemployment Rate fell from 10.2% to 10%. This is obviously
positive news for the U.S economy and the Global economy as well. Stock’s advanced, but this time the Greenback would not
yield any ground instead it posted gains on all its G-10 rivals. The Dollar move was positively correlated with the
economic news, something not seen in 9 months. There was a tangible shift in market sentiment regarding the timing of a
potential rate increase. Originally, forecasts were calling for an increase in Q4, however, analysts now think it may come
sooner.
It is not by coincidence that a number of pairs slid almost exactly to Support levels before firming against the Dollar. A
breakthrough of support would most likely trigger a massive Dollar rally, something the market is not whole heartily a
believer in at this point in time. Rather, the move on Friday was one of caution as it may be the first signal the Bull is
getting ready to run.
Let’s analyze current key technical levels and what the trading implications are:
EUR – Friday’s close put the EUR right at the 50 SMA. The 50 SMA has been holding as support for nearly 9 months. An
entire candle below the 50 SMA would trigger a Short EUR entry while a quick bounce off of support levels would trigger a
a resumption of our EUR Long
INSERT EUR CHART
AUD – Similar to the EUR, the 50 SMA has been holding firm support. Therefore, a Short AUD entry would be triggered
with the appearance of an entire candle below support. We would resume a Long AUD position with a bounce off of support.
INSERT AUD CHART
GBP – The Cable has been trading the range but has not dipped below the 50 SMA since mid September at which point it
gave up over 4.5% to the Dollar. As with the EUR and AUD, an appearance of entire candle below the 50 SMA would trigger a
Short GBP entry.
INSERT GBP CHART
Obviously one occurrence hardly represents an entire shift in trend, however, a shift in trend starts with one occurrence.
Continue to monitor the correlation between economic news and the Dollar. In addition pay special attention to support and
resistance levels on the majors, as a breach of S&R may signal future changes and should be capitalized on.
Good News for the Greenback Finally Pushes Gold Down a Few Pegs by GoLearn Forex
Gold tumbled on Friday as better than expected Unemployment and Nonfarm Payroll figures helped prop up the Greenback. Gold
fell 5.1% during intra-day trading to a session low of 1,150. Crude Oil was mixed on Friday as it originally bounced higher
on the positive news, however, it gave up its gains and then some as the Dollar firmed throughout the day. Both Gold and Oil
are quoted in Dollars ,so as the Dollar strengthens it sends commodity prices lower.
Global Equity Markets advanced Friday finishing the week in positive territory. The DJIA added 22.75 points to close at
10,388.90. At the moment Equity Futures are pointing lower ahead of the open. Economic data releases will be on the lighter
side for Monday although the remainder of the week will yield some interesting price action as Canada, New Zealand,
Switzerland, and the U.K are on deck for rate decisions.
The DXY soared to highs not seen since early November as the DXY touched 75.911 during the Friday session. Traders were
unwinding some bets and covering shorts as the positive employment data gave rise to concerns that the U.S Federal Reserve
may raise rates sooner then later. With little economic data due out today do not expect much price action.
Important Forex Events for December 7, 2009
EUR ECB President Trichet Speaks
CAD Building Permits (MoM) Forecast 1.00% Previous 1.60%
USD Fed Chairman Bernanke Speaks
AUD Current Account Forecast -17.00B Previous -13.30B
Analysis by http://www.golearnforex.net
Daily Review 07/12/2009
Posted by Cedrick Toledano in Uncategorized on December 7th, 2009
USD Dollar (USD)
The Dollar rallied versus all majors after Nonfarm Payrolls came out better than expected with -11K versus -119K expected and -111 K prior. The reverse correlation between U.S economic data and the Dollar prices seems to have ended. The U.S jobs market is improving and the Federal Reserve is expected to raise the rates if the improvement continues. Unemployment Rate came out 10% versus 10.2% expected and prior. NASDAQ and Dow Jones gained by 0.98% and 0.22% respectively after the better employment data. Crude weakened by -1.29% closing at 75.76$ a barrel and Gold (XAU) dropped by -3.99% closing at 1160.2$ an ounce on stronger Dollar and weaker inflation fears. Today, Federal Reserve Chairman Bernanke will speak in Washington. Consumer Credit is expected with -9.6B versus -14.8B prior.
EURO (EUR)
The Euro fell as the Dollar rallied after Nonfarm Payrolls data showed a massive improvement raising expectations for a rate increase in the Dollar, lowering the demand for the Euro. Overall, EUR/USD traded with a low of 1.4821 and with a high of 1.5090. Today, German Factory Orders are expected with 0.6% versus 0.9% prior. ECB President Trichet will speak in Brussels.
EUR/USD – Last: 1.4870
|
Resistance |
1.4925 |
1.4970 |
1.5000 |
|
Support |
1.4800 |
1.4765 |
1.4735 |
British Pound (GBP)
The Pound slid versus the Dollar after the better than expected employment data in the U.S raised expectation for a future rate increase in the Dollar. Overall, GBP/USD traded with a low of 1.6422 and a high of 1.6673. Today, Halifax House Price Index is expected with 40.50 versus 40.90 prior.
GBP/USD – Last: 1.6470
|
Resistance |
1.6525 |
1.6590 |
1.6620 |
|
Support |
1.6390 |
1.6357 |
1.6275 |
Japanese Yen (JPY)
The Yen plunged versus the Dollar and the Euro after better than expected U.S employment data led to less demand for the Yen as a Safe Haven as economic conditions improved. Overall, USD/JPY traded with a low of 87.99 and a high of 90.76 and EUR/JPY traded with a low of 132.49 and a high of 134.56. Today, Japanese Current Account is expected with 1.6T versus 1.34T prior. M2 Money Stock is expected with 3.5% versus 3.3% prior.
USD/JPY-Last: 90.25
|
Resistance |
90.75 |
91.35 |
91.65 |
|
Support |
89.70 |
89.154 |
88.75 |
Canadian Dollar (CAD)
The Canadian Dollar remained almost unchanged versus the Dollar after better than expected employment data in the U.S and Canada left the pair unchanged. Canadian Unemployment Rate came out 8.5% versus 8.6% expected and Employment Change showed a surprising rise of 79.1K more workers versus 15K expected. Overall, USD/CAD traded with a low of 1.0433 and a high of 1.0595. Today, Building Permits are expected to rise by 1.1% versus 1.6% prior.
CAD/USD – Last: 1.0565
|
Resistance |
1..0615 |
1.0645 |
1.0690 |
|
Support |
1.0515 |
1.0480 |
1.0460 |
Research by http://www.ufxbank.com
An introduction to bungee options trading
Posted by Cedrick Toledano in Bungee Options on December 4th, 2009
Forex options trading is the easiest method of options trading. But it is not so popular among traders. In spite of that, this method is selling like hot cakes. Traders unwilling to wait for a long-term investment go for this type of trading. Complete information about options trading method is available on the most popular and favorable teacher available today. That is the internet. The following text however teaches newcomers in the Forex market about bungee options trading only. The word “bi” indicates dual. As every coin has two sides, this trade has a back side too. The trade flourishes when the stock market is strong. Likewise, it fails as the stock market crashes.
The trade occurs in the following manner. The investor or the trader having a bungee options trading account decides a company he wants to invest in. But as in all cases, this too has many black sheep in its field. Therefore it is crucial that one checks the company’s credibility. Companies with a high level of security generally help us on the road of success. Then the trader has to select the amount he wants to invest. The trader must then decide on the security status. There are two options either put (down) or call that is up. The system then outputs the expected returns based on the inputs. If the trader finds all terms acceptable, then he can place his trade order. But he can also reject it and change his inputs to meet his demands.
The biggest advantage in this type of trader is that the amount the stock market changes by does nothing to affect the rates of the trades. They solely depend on the increase or decrease. The profits remain the same as decided before submitting any order. The trader can exercise many of his Forex options daily. This is very important as many successful options contribute to success in the Forex trade market. Also one point should be noted by new traders. The contracts or trades are on an hourly basis. They cannot be submitted or completed before the expiry time ends. Also termination of contracts can be very disastrous while trading in the Forex market. The potential of risk and loss is very high while dealing with such things.
It is very important to be complete sure and confident of the company we invest in. The markets can fluctuate at any unsaid time. This might work in favor of some while it may lead some to loss. This is a matter of experience of skill. With enough experience one can make beneficial trades. But luck also plays a minor part in this. The tutorials like Forex demo accounts, Forex books, etc can help the beginners to learn about the market in detail.