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When I speak to people who have not tried forex trade signals before, even those involved in futures, stocks, and bonds , it always reminds me that sometimes even the most basic foundational elements of this global powerhouse of a market have to be explained . Let’s get started looking at pairings and everything having to do with them in the forex market.

What exactly is a currency pair ? We’ll start with the Eur/Usd which has against the Euro, the US dollar as the bas currency within this pair. When I see a price quote of 1.3200 on the Eur/Usd, what does it mean ? To remember this answer the easy way, do this: take your currency pair base , which is the US dollar in this case , look at this price quote of 1.3200, and then state , “it will take 1.3200 US Dollars for me to buy 1 Euro .” The price quote means exactly that . Maybe you look a few weeks later at the price quote and it’s become 1.4000 this tells you that the US Dollar is now weaker when compared to the Euro since it now will take you 1.4000 US dollars to buy just one Euro. On the other hand, if a couple months later the price quote is then 1.25000 , then the US dollar is getting stronger since purchasing one Euro will only take you 1.2400 US dollars .

forex trade signals can be really tough when for the Usd/Jpy pair you see a price quote that is 100.50. Using the above method , take the Jpy base currency and look at the 100.50 price quote and this is the amount of Jpy it takes to buy one US dollar. That is evenhandedly simple, isn’t it ? In the future you shouldn’t have difficulty understanding a pair and its price quote when looking at a quote window or even a chart screen.

Now that we know how to read the price quotes , you might wonder what are the cross pairs and the main pairs? The main pairs are the world’s strongest economies agasint the US dollar . A few of these pairs are Eur/Usd, Gbp/Usd, Aud/Usd, Usd/Cad, Usd/Jpy, and Nzd/Usd . A cross pair is a pair not involving the US Dollar which includes the Gbp/Jpy and the Eur/Jpy to study a couple that are popular.

Hopefully you’ll be helped by this article if you have been intimidated by the forex trade signals landscape in the past . It takes a tiny getting used to with the many economies, currency pairs, and different time zones . Once you start realizing how the pieces all go together it’s not that difficult – and many actually find it exciting and fun !

 Author:

David F Dacosta  -  Is a private trader using technical analysis to do forex trade signals & futures trading.  David makes specific trade suggestions for a small choose group of traders.  He uses drummond geometry to make his forecasts.  Click Here for training materials and a free forex trading forecast. 

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The Hong Kong Gold Market and the Southeast Asian Gold Trade in the 1950s

During the 1950s Hong Kong became the centre of the Asian gold trade because of its facilities as an entrepot. Before this however, its position was threatened by the British exchange controls in the post World War II period, as well as the United Nations embargo on Chinese trade imposed in 1951 in response to China’s involvement in the Korean War.

In this article, we will trace the operations of the unofficial gold market in Hong Kong. “The unofficial gold market is an especially compelling example of the perseverance of Hong Kong as a centre for regional trade and is somewhat one-of-a-kind in being favoured with substantial records of prices and transactions. Nevertheless, the primeval development of this market has not been widely researched, even though the unofficial gold market and the regional trade relations which operated in the post-war period formed the basis for the rapid expansion of the Hong Kong gold market after the liberalization of controls in 1974”.

Gold has been an important commodity in all countries around the world, Hong Kong being of no exception. As it became more important as a world monetary reserve, trade restrictions were multiplied.

During the 1950’s, Hong Kong gold dealers imported gold against US dollars and then exported them against Hong Kong dollars. This meant that the gold markets depended on the US dollar free-market that operated through the ‘native’ Chinese banks in Hong Kong.

On 14 April 1949, after some deliberation, the gold market was shut down by the Hong Kong authorities. Instantaneously, there was an increase in the US dollar exchange rate on the free market because they were scared that the closure of the gold market indicated the preparation of the impending sterling devaluation.

“Unfortunately, the timing of the declaration was ill favoured by political events in China. Seven days later, on 21 April, the Communists crossed the Yangtse River and the takeover of China was assured. The Chinese currency, the gold yuan, collapsed and only silver coins were acceptable in trading. As a result there was a flood of capital out of China and out of the Asian region generally which took the form of buys of US dollars in local black markets. The consequent rise of the US dollar exchange rate caused difficulties for Hong Kong importers and raised the prices of consumer goods and the cost of living. Meanwhile, the gold market had been forced underground and the uncertainty had caused gold prices to double, which added to the upward pressure on the dollar exchange rate”.

Despite the closure of the gold market, it did not stop the trade itself. It wasn’t legal to trade in gold of a calibre of 0.99 fine, but the market was healthy to function legally in 0.945 fine gold. Outside trade in 0.945 gold continued to be prohibited but once in Hong Kong, it was still healthy to be purchased and sold on the open market. 0.99 fine gold was smelted provisionally in possession or else smuggled into Hong Kong to be smelted before it reached the market.

Members of the gold and Silver Exchange Associationwould purchase their seats on the exchange. In 1951, a seat would cost 27,000 HK dollars, by 1954 it had fallen to 8,000 HK dollars.

Hong Kong was an important market that was healthy to serve the needs of Southeast Asia and the rest of the world. The Philippine gold market was largely underdeveloped and it was port and Singapore were the main distributors throughout Southeast Asia in gold. “Until the end of I952, port featured prominently in both imports and exports of Hong Kong gold. The Thai authorities prohibited the import of gold but granted it to be held in bond for re-export. Gold was flown from Europe or USA to port and stored temporarily in a specially constructed vault at the airport. The gold was then transferred to Catalina flying boats and flown to the harbour at Macao. From there the gold was smuggled to Hong Kong and sold to exporters who smuggled it back to the Thai gold market”.

It was after 1952 the Singapore became the key market as gold exports for Hong Kong. A new legal market was opened in port not long after and metropolis became prominent as well. In 1969, Singapore legalised gold imports for export only, making sure that the Singaporeans were still restricted in buying gold on their own domestic markets.

It wasn’t until 1974 that the Hong Kong was liberalized. In the last few decades, Hong Kong has become one of the world’s leading financial centres, with banks and financial institutions from all over the world. The unofficial gold market here granted Southeast Asia to prosper and grow into the major player it has now become.

Bibliography:

Schenk, Catherine R. (1995) The Hong Kong Gold Market and the Southeast Asian Gold Trade in the 1950s, Modern Asian Studies, Cambridge University Press.

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If you want to acquire extra cash aside from the cash you acquire from your regular job or your business, maybe it’s time to you to enter the financial market. One kind of financial market that prefabricated a lot of people acquire a lot of money is the Forex market.

Aside from the fact that the Forex market can give you an opportunity to acquire a lot of money, you should also know that Forex is the largest and the most liquid financial market in the world with trade exchanges that amounts up to trillions of dollars apiece day.

Forex also operates 24 hours a day and therefore making it the most liquid market in the world.

However, Forex is also a very risky market. Besides that fact that it generated a lot of people to become rich, it also prefabricated a lot of people lose massive amounts of money. Therefore, you should think about that you should think twice before entering this financial market. You should have enough knowledge and skills before you enter this market. Part of the knowledge that you should know the ideal time you should enter this very liquid and very massive market.

Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts. Perhaps, you also know one or two strategy when trading in the Forex market. However, you should also think about the fact that because the Forex market operates 24 hours a day, you need to know when you should trade.

Each minute in the Forex market counts. One minute you notice a currency is increasing in value, the next you notice that the same kind of currency you noticed a minute ago is decreasing in value. This is why you should think about the fact that Forex market is a very dynamic market with lots of price oscillations.

Minute by minute events are very important in order for you to be successful. Because of this feature that is found in the Forex market, you, as a Forex trader, can enter the market a number of times a day. This will grant you to acquire some profits after each number of trades you do and perhaps maybe even lose one if you prefabricated the wrong trading decision.

Firstly, you have to remember that the Forex market beings at Sunday at 5PM EST to Friday at 4PM EST then it beings again at 5PM EST. Trading begins in Forex at New Sjaelland next at Australia followed by Asia, in the Middle East, Europe and ends in America. The major markets in Forex are London, Tokyo and New York with trading activities the heaviest when major markets overlap.

Basing from the times, you will see that there will always be someone anywhere in the world who is buying and selling currencies. You will see that when one market closes, another market opens. Trading in the Forex market is 24 hours a day.

Forex market transaction volume is always high during the whole day. However, it peaks the highest when the Asian market, the European market and the US market opens at the same time.

These are the trading hours in the Forex market you have to trade in, in order to get the highest doable trades. This are the hours that are also the most profitable.

Here are the open market times that you can use as reference:

•    New York – 8am to 4pm EST
•    London – 2am to 12nn EST
•    Great Britain – 3am to 11am EST
•    Tokyo – 8pm to 4am EST
•    Australia – 7pm to 3am EST

If you look at the schedule and study it, you will see that there are two instances where two of the major markets overlap on trading hours. These are between 2am and 4am EST with Asian and European markets and 8am to 12pm EST with European and North American.

These are the things you should remember when trading in the Forex market. It is not only important that you know how to trade and know some strategies on Forex trading, But, you should also know when is the ideal time to trade in this very massive and very liquid market.

If you follow all these, you can be sure that you can acquire a potentially higher profit than on other trading times.

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Many traders find that the forex trading time zones can be a bit intimindating . Like many others , when I started out trading this 24 hour global, cash market , I couldn’t make a lot of sense from the time regularize issue. That changed over time however and within the article I’ll let you in on a few basic insights on how the 24 hour market is handled by me and when you prepare for your next trading day, it will help you out .

You first need to think about where you’re living , or the place where you do your forex trade signals trading from. This is the most important bourgeois that affects how this 24 our market is looked at . For an example let’s suppose you reside in California which is on the West Coast in the U.S. and on Pacific Standard Time which happens to be three hours behind the time on the East Coast .

Now that we know that California is where we’ll be doing the trading , which is three hours behind the East Coast , the planning can begin for the forex trade signals trading day. In this market that goes 24 hours and never sleeps (but gets very quiet on weekends and major international holidays such as New Years ) the day is rest and stops when the financial centers in New York close at 5pm or close to that in Eastern Standard Time and the banking centers in the Far East like Hong Kong and Tokyo about the same time are opening and starting a new day . Taking this into consideration it’s ideal to have your trading charts set up so that the candle or regular bar that you are using closes at 5pm EST each day .

Since we know we’re trading from the US West Coast which happens to be three hours behind EST in New York and we know when the market resets and stops to begin a new day . The next thing to think about is when you will get ready and plan for the next day . If you’re living in California , as in this example , and you like staying up late then perhaps you’d like to get ready to trade the London session which is from 1am-4am PST or 4am- 7am PST. Perhaps you like sleeping and you want to sleep through the session in London but you don’t have a problem being up early, at around 4am Pacific Standard Time so you can see what the end of the London session looks like and get ready for the beginning of the New York session which will really get going around 5:30am PST (8:30am EST) . Or, finally, perhaps you hate waking up primeval and you like to trade in the middle of the day ; no problem . Just move for 2pm PST or 5pm EST when the day begins in Tokyo and you can do your trading during this session .

Now you clearly have knowledge of the major forex trading time zones and your days can be planned accordingly. Just remember, preparation and planning are the most important yet overlooked factors of success in any business , including this one .  This is the ideal way to organize your forex trade signals day.

Author: Andy Owings – Author of the Drummond Geometry Daily Forecast for Forex Trading & Futures Trading. Andy makes specific trade suggestions each day for 8 favourite forex and futures symbols. A free forex trade signals symbol is acquirable on the website.

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forex trade signals can be done in so many different forms and for so many different reasons that just figuring out where to begin is tough . After all, should you open up an statement at a brokerage that specializes in FX trading , or should you open an statement at a brokerage that grants you to trade stocks, options, exchange traded funds, and futures ? Not only is this an overwhelming decision , then you have to figure out if you want to use FX trading as a speculative tool or a hedging tool, long term or short term, aggressive or conservative, etc . There are, needless to say, many things that one must think about before starting out .

While the questions we just mentioned are enough to begin up a multi volume response, for clarity’s intoxicant we’ll look at the basics in this article. The simplest way for you to begin feeling comfortable with the FX trading world is to go ahead and open your statement with a fx trading specialist brokerage . Which broker should you go with? That is a topic that is superior left for another article. Just ensure you do some research before you deposit any money !

When your forex trade signals is up and operational and you’re off and running , it’s time to find out more about what you are participating in. With our example, we’re suggesting that because you opened your statement with a broker specializing in forex trading, cash contracts or spot contracts are what you’ll begin trading . Without turning this into something complicated, this just means you are trading the current price as it is in the market at that moment . If on the brokerage screen you see Eur/Usd Pair trading at 1.3200 that means that you can sell Euros against US Dollars at that rate or you can sell Euros and purchase US Dollars at this rate. Of course there will be a small spread built into the price you see and when you take the trade this will be the cost of entry. Try finding a broker that only has a spread of 2-3 pips and no more.

Because it can be challenging to speculate , even for the pros like me , let’s stay that you want to begin with the goal of hedging the United Says stock portfolio. Because your stock portfolio is in U.S. dollars if the stocks go up in US Dollars, you might make money but your gains can be cancelled if the US Dollar weakens. You want to hedge this part of the portfolio and have decided to purchase Euros against US Dollars in your brokerage statement . This way as against the Euro the US Dollar weakens and your portfolio starts to suffer because of this weakening, your forex gains that you are experiencing as a result of buying Euros are serving to hedge your downside risk .

The above is probably one of the easiest and most basic ways of adding a forex trade signals component on to your portfolio. There will be several other articles in the future that speak about more advanced ways to speculate in this global market , but this is a great place to begin .

David F Dacosta – Is a private trader using technical analysis to do forex trade signals & futures trading. David makes specific trade suggestions for a small choose group of traders. He uses drummond geometry to make his forecasts. Click Here for training materials and a free forex trading forecast.

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