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Messages - IKOFX

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1
STOCK and FOREX EXCHANGE / LATEST 5 TRADERS - IKOFX DEMO BLAST CONTEST!!!
« on: November 02, 2011, 05:54:28 PM »
This is a monthly contest dedicated to all Forex Traders of IKOFX with Demo Accounts.  It is designed to test our valued traders? Forex trading skills without risking any amount of money and at the same time would allow them to win real money prizes while practicing in trading forex.  This is a great opportunity to demonstrate their knowledge with the Forex Market and to apply their analytical and methodical skills as well an excellent way to show the best trading strategy that is profitable.
Each trader should designate a demo account for this contest and must register it as participant in a particular given month.  The 1st five traders with the highest accumulated gaining in trading their designated demo account at the end of a given month (last day/date of the month 23:59 GMT) shall win the real money prizes that will be deposited in their live trading account.

REGISTER NOW FOR FREE!!!

TOP 5 TRADERS as of today are:

1 4333276 MerampongFx
2 4330559 bunk
3 4333206 Dusun Trader
4 4333233 1B
5 4333176 sen_valas

You can join us now and show us what you got to make it on top!!! :)Happy Trading! :)

IKO Forex Limited - THE BEST FOREX ASIA

2
STOCK and FOREX EXCHANGE / Acceleration/Deceleration ? AC
« on: November 02, 2011, 04:27:52 PM »
Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of the current driving force.  This indicator will change direction before any changes in the driving force, which, it its turn, will change its direction before the price.  If you realize that Acceleration/Deceleration is a signal of an earlier warning, it gives you evident advantages.

The nought line is basically the spot where the driving force is at balance with the acceleration.  If Acceleration/Deceleration is higher than nought, then it is usually easier for the acceleration to continue the upward movement (and vice versa in cases when it is below nought).  Unlike in case with Awesome Oscillator, it is not regarded as a signal when the nought line is crossed.  The only thing that needs to be done to control the market and make decisions is to watch for changes in color.  To save yourself serious reflections, you must remember: you cannot buy with the help of Acceleration/Deceleration, when the current column is colored red, and you cannot sell, when the current column is colored green.

If you enter the market in the direction of the driving force (the indicator is higher than nought, when buying, or it is lower than nought, when selling), then you need only two green columns to buy (two red columns to sell).  If the driving force is directed against the position to be opened (indicator below nought for buying, or higher than nought for selling), a confirmation is needed, hence, an additional column is required.  In this case the indicator is to show three red columns over the nought line for a short position and three green columns below the nought line for a long position.

IKO Forex Limited - THE BEST FOREX ASIA

3
STOCK and FOREX EXCHANGE / Line Studies in Forex
« on: November 02, 2011, 03:58:54 PM »
The support and resistance level as shown in figure 6 is a widely use concept in Forex trading.  The peaks represent the price levels where the selling pressure exceeds the buying pressure and they are known as resistance levels.

The troughs, on the other hand, represent the levels where buying pressure exceeds the selling pressure and they are known as support levels.  A strong resistance level turns into a strong support level after it is penetrated and vice versa.

Trendlines and channels

The idea of trend is principal to technical analysis.  A trend shows the direction of the market.  The technical analysis is all about predicting the trend of the market.  A trendline is the natural development in tracking a trend.  Trendline is a straight line that connects the major peaks or the major troughs.

Thus, a trend can be notice in the chart.  The trendlines are classified as: up trendlines, down trendlines, and sideways trendlines.

A channel is created by sketch a parallel line that connecting the significant peaks in an uptrend and the significant troughs in a downtrend.  The channel line then creates a channel which borders the currency trend.  When prices hit the bottom side of the channel, this may be a good buying opportunity and reversely if prices hit the upper side.

One of the types of line studies is the Ascending Triangle and it is formed during an uptrend.  Besides the ascending triangle, other line studies that available in Forex are Descending Triangle, Symmetrical Triangle, Head and Shoulder, Pivot Point, Fibonacci Retracement, and many more. 

IKO Forex Limited - THE BEST FOREX ASIA

4
STOCK and FOREX EXCHANGE / CENTRAL BANK AND ITS ROLE TO FOREX
« on: November 01, 2011, 12:39:59 PM »
A central bank's role is to direct the domestic monetary policy and maintain the stability of the national currency of its country.  The central bank deals with the flow of money and credit that is provided to the economy under the monetary policy.  Its responsibility includes controlling subsidized-loan interest rates and acting as a lender to the banking sector during times of financial crisis.  It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently.  Market interventions are a part of the total role that central banks exercise in affecting the Forex market.

The Federal Reserve was established at 1913, when Congress passed the Federal Reserve Act.  The Act held that role of the Federal Reserve was to provide an elastic currency and establish an effective supervision of banking in the United States.  In 1923 the Open Market Investment Committee (OMIC) was establish to coordinate the Reserve Bank operations.  In 1930, the OMIC was replaced by the Open Market Policy Conference (OMPC) and it consists of 12 Federal Reserve Banks governors and the members of the Board.

The Banking Act of 1935 had reshaped the structure of the Federal Reserve System and the OMPC's name was switched to the Federal Open Market Committee (FOMC).  The Banking Act held that the Board must generate a suitable environment for business stability.  Like the other central banks, the Federal Reserve affects the Forex markets in three general ways:

   1.  The discount rate.
   2.  The money market instruments.
   3.  Foreign exchange operations.

The major central banks are involved in the Forex market operations in more ways than intervening in the open market.  Their operations include payments between central banks.  The major central banks do not engage in speculative trading.  Intervention in the Forex markets is toward restoring orderly condition in the market or influencing the exchange rates.  The actual intervention is executed by the Foreign Exchange Desk at the Federal Reserve Bank of New York.  There are two types of Forex interventions:

   1.  Naked intervention
   2.  Sterilized intervention

Naked intervention refers to the sole Forex activity.  To be brief, Federal Reserve either buys or sells US dollar against a foreign currency.  Besides the impact in the Forex market, there is also a monetary effect on the money supply.  If the money supply is impacted, then adjustments will be made in interest rates, prices and all levels of economy.  Consequently, a naked intervention results a long term effect.

Sterilized intervention functions to neutralize the impact on the money supply for the reason that there are few central banks want the impact or the intervention in the Forex market to affect all corners of their economy.  The impact of sterilized intervention will tend to have only a short to medium term effect.

Here is a case example of market intervention from the Bank of Japan.  Japan's economy is mostly depending upon its exports.  Thus, Japan's economy benefits from the weaker value of yen because low value yen provide an advantage in its export competitive.  So, the yen value is preferred to be remained low relative to USD.  When the yen value appreciates, Bank of Japan will try to control it by market intervention either selling trillions of yen to bring down the value or reduce the interest rates.

IKO Forex Limited - THE BEST FOREX ASIA

5
STOCK and FOREX EXCHANGE / Forex Trading
« on: November 01, 2011, 12:30:41 PM »
There are many benefits and advantages to trading Forex with IKOfx.  Here are just a few reasons why so many traders are choosing this market and partnership with IKOFX:

* Commissions free.
No clearing fees, no exchange fees, no government fees, and no brokerage fees.
* No middlemen
Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.
* No fixed lot size.
In the futures markets, lot or contract sizes are determined by the exchanges.  A standard-size contract for silver futures is 5000 ounces.  In Forex, you determine your own lot size.  This allows traders to participate with accounts as small as $1 USD
* Low transaction costs.
The retail transaction cost (the bid/ask spread) is typically less than 0. 1 percent under normal market conditions.  At IKOfx, the spread could be as low as 2 pips.
* A 24-hour market.
From Sunday 2200 EST to Friday 2100 EST, the Forex market never sleeps.  This is good for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.
* No market manipulation
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.
* Leverage.
In Forex trading, a small margin deposit can control a much larger total contract value.  Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.
* High Liquidity.
Because the Forex market is so enormous, it is also extremely liquid.  Under normal market conditions, just a click you able to instantaneously buy and sell at will.  You can even command the trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).
* Free "Demo" Accounts, News, Charts, and Analysis.
IKOfx offer free 'demo' accounts to practice trading, along with breaking Forex news and charting services on the website for beginner traders who would like to hone their trading skills with virtue money before opening a live trading account and risking real money.
* "Mini Account" Trading:
You would think that getting started as a currency trader would cost a ton of money.  The fact is, compared to trading stocks, options or futures, it doesn't.  IKOfx offer "mini" trading accounts with a minimum account deposit of $1 USD.  It makes Forex much more accessible to the average individual who doesn't have a lot of start-up trading capital.

IKO Forex Limited - THE BEST FOREX ASIA

6
STOCK and FOREX EXCHANGE / PARTNERSHIP PROGRAMS - IKOFX
« on: November 01, 2011, 11:08:51 AM »
We are glad of your interest of becoming an IKO Forex Limited partner.  IKO Forex Limited values the essence of great partnership in every business endeavor.  We always maintain the high degree of good business relations with our clients as well as with our partners.  So we created the IKO Forex Limited Partnership Programs to compensate and award partners who referred and introduced clients to IKO Forex Limited.

IKO Forex Limited Partnership Programs are the following:

* Affiliate Trader
* Introducing Broker
* Master Introducer Broker

AFFILIATE TRADER PROGRAM

To be an Affiliate Trader, a partner needs to open a live account with IKO Forex Limited who will be provided with a trading account number and a personal referral link.  The trading account number and the personal referral link will serve as tracer that will trace any client who registered to IKO Forex Limited under the Affiliate Trader?s account, and/or who registered using Affiliate Trader?s personal link.

Thus, to consider a client to be under your direct referral, such client must register either of the following ways:

* By entering your trading account number in Agent code area upon registration; or
* By using your personal referral link, which is available in your cabinet by clicking on "my profile", upon registration.

Under this program, the Affiliate Trader shall be entitled for a commission of 0. 5 pips for each closed trade that their direct referral client makes.  The Affiliate Trader can access and view a 24-hour online affiliate statistics at the IKOFX Cabinet system.

INTRODUCING BROKER PROGRAM

Whether you are an individual or business firm, you are very much welcome to be our partner and become an IKOFX Introducing Broker (IB).  As an IKOFX IB, you will earn and receive a highly competitive compensation by referring and or directing to IKO Forex Limited new clients.

Under this program, the IKOFX IB shall be entitled for a commission of 0. 8 pips for each closed trade that their direct referral client makes.

The following are the requirements to become an IKOFX IB:

* Be an Affiliate Trader, thus, open a live account with IKOFX;
* Recruit at-least 5 direct referral clients;
* Accumulate a total clients? deposits of 30,000USD from all of your down-lines in a year;
* Accumulate a total trade volume of 100 standard lots and
* Write an email to partnership@ikofx. com to upgrade your account to IB account.

MASTER INTRODUCING BROKER PROGRAM

It is the best interest of IKO Forex Limited to offer and give our partners the best and most competitive compensation to suit our partner?s strengths and referral capabilities.  Thus, under this program, an IKOFX Master Introducing Broker (MIB) shall be entitled for a commission of 1 pip for each closed trade that their direct referral client makes.

The following are the requirements to become an IKOFX MIB:

* Be an IKOFX IB, thus, open a live account with IKOFX;
* Recruit at-least 10 direct referral clients;
* Accumulate a total deposits of 100,000USD from all of your down-lines in a year;
* Accumulate a total trade volume of 500 standard lots; and
* Write an email to partnership@ikofx. com to upgrade your account from IB to MIB.

IKO Forex Limited makes available support and training program to IKOFX IB and IKOFX MIB, so that they will become highly qualified to assist their clients and give them the ability to trade on a powerful, easy-to-use trading platform.  IKOFX IB and MIB can access the 24-hour online affiliate statistics at the IKOFX system.

IKO Forex Limited - THE BEST FOREX ASIA

7
STOCK and FOREX EXCHANGE / TECHNICAL ANALYSIS
« on: October 31, 2011, 04:28:22 PM »
After introduction to the chart types and major chart information, the subject now is moved from chart interpretation to the quantitative trading methods which provide more objective view of price activity.  The tools of the quantitative trading methods are the moving averages (discussed in this subchapter) and the technical indicator is a result of mathematical calculations based on indications of price and/or volume.  The values obtained are used to forecast possible price changes.  Technical indicators can be categorized into three groups; line studies, volume indicators, and oscillators.
Moving averages

Moving averages are one of the oldest and most popular technical analysis tools.  The moving average is an average price of a financial instrument over a given time period.  As shown in figure 8, the line is smoother if longer time period is used.  There are three types of moving averages:

1.  Simple moving average (SMA).
2.  Linearly weighted moving average (LWMA)
3.  Exponential moving average (EMA)

The simple moving average is calculated by summing up the prices of instrument closure over a certain number of single periods:

Where N = the number of calculation periods.

Whereas the different with linearly weighted moving average is this type of moving average assigns more weight to the more recent closing prices while SMA use equal weight to each closing prices.  For EMA, it also takes account of the previous price information in addition of assigning different weights to them.  Traders can use different time period of moving average such as short-term, medium-term, and long-term periods.

IKO Forex Limited - THE BEST FOREX ASIA

8
STOCK and FOREX EXCHANGE / FUNDAMENTAL ANALYSIS
« on: October 31, 2011, 04:02:24 PM »
The main strengths of technical analysis are flexibility.  There is flexibility with regard to the principal instrument.  A trader may easily apply his technical expertise to trade another currency when trading activity in the currency that he trade slows down.

There is also flexibility regarding markets.  Trader can apply the same technical principles in every market, either spot or future markets.  Finally, there is time frame flexibility.  Again the same technical principles can apply to different trading styles and time frames.

However, technical analysis is not perfect.  Technical analysis is done based on previous and current information.  So, technical analysis has its disadvantages.  The Forex market has a degree of randomness and prediction done by technical analysis will not completely accurate.  It is impossible to forecast everything correctly just based on previous and current information.

Moreover, technical analysis more often gain less profit because it need time to identify the trends in chart.  Thus, trader will late for a trading opportunity and takes less profit.  Finally, technical analysis focuses only on charts and do not take other precise factors into consideration.  Somehow, a good trading system must make use of both technical and fundamental analysis.

IKO Forex Limited - THE BEST FOREX ASIA

9
STOCK and FOREX EXCHANGE / Inflation Reports
« on: October 28, 2011, 09:36:23 PM »
Inflation measures the rate of prices rise in an economy.  Inflation has direct relation to the purchasing power of a country within its borders and the country's standing on the international markets.  Therefore, gauging inflation is a crucial macroeconomic task.  The tool of fighting inflation is raising the interest rates and the higher interest rates tend to support the local currency.  The examples of economic data that measures inflation are Producer Price Index (PPI), Consumer Price Index (CPI), Commodity Research Bureau's Index (CRB Index), and so on.

The PPI has been compiled since the beginning of twentieth century.  The PPI gauges the average price level for capital, rent and materials required for producers to manufacture their goods.  The PPI data is compiled from various sector of economy, such as manufacturing, mining and agriculture.  The PPI measures the prices at producer level while the CPI measures the prices from consumer point of view.  The sample used to calculate the index contains about 3400 commodities and the weight of each commodity used for calculation is different.  This index is released on monthly basis.

The CRB index is made with the purpose of watching for inflationary trends easier.  The CRB index consists of the futures prices of 21 commodities.  Some examples are gold, silver, lumber, copper, cotton, oil, wheat and so forth.  The rising of crucial commodity prices such as oil will start out inflation.  When the oil price increases, many other items will increase in price because the production process consumes oil.  Consumers and companies have to spend more compare with previous time to buy the same amount of goods.  Thus, the rapid rise in oil price initiates inflation and inflation wear down the purchasing power of the particular currency.

The correlation of the crude oil price and the USD/CAD exchange rate is inversely proportional relation as shown in figure 1.  Since United States is a highly industrialize country, the demand of crude oil is very high.  In addition, Canada supplies most of the crude oil to United States compare to other oil-production countries in the Middle-East due to the shorter distance between the two countries and thus the cost is relatively lower.  When the crude oil price increases, it brings large inflation pressure relatively to United States and wear down its purchasing power.  High oil prices tend to cut into the US's ability to stay productive.  Besides, Canada gained benefits from exporting the expensive crude oil.  Therefore, the exchange rate of USD/CAD falls as the Canadian dollar appreciates its value or the US dollar depreciates its value in the situation when the crude oil price rises rapidly.

IKO Forex Limited - THE BEST FOREX ASIA

10
Currency exchange rates are greatly influence by financial factors, particularly the interest rates.  Financial factors are vital to fundamental analysis.  Changes in a government's monetary or fiscal policies are bound to generate changes in the economy, and will be reflected in the exchange rates.  Financial factors should be only triggered by economic factors.  However, financial factors may have priority over economic factors when governments focus on different aspect of the economy.  Financial factors that affecting currency exchange rates are money supply and interest rates.

IKO Forex Limited - THE BEST FOREX ASIA

11
STOCK and FOREX EXCHANGE / Interest Rates in Forex
« on: October 28, 2011, 08:04:54 PM »
Interest rates are the important role in the foreign exchange market because it has the capability to move the exchange rates of currencies.  Therefore, the central banks are the most influential player in this case as the central banks set the interest rates.  Different in interest rates have an effect on the relative worth of currencies in relation to one another.  Overall, the higher interest rates generate a stronger currency and vice versa.

Forex market experience volatility when central banks change the interest rates.  An accurate speculation of central banks' actions is important for most of the traders.  A higher interest rate will encourage traders to invest in that currency and cause the demand for that currency to rise.  As the result of increasing demand, foreign investments are drawn to the currency and thus causing the currency to increase in value.  In opposition, fall in interest rates will discourage investors and the currency will depreciate due to weaker demand.

For an example, a US investor that wants to deposit a saving account of 1000 dollars with domestic or foreign banks.  The US, Japan and Switzerland bank's interest rate are 4. 5%, 0. 5% and 5. 5% respectively.  Among all the options, deposit the money in the Switzerland bank is the best option that generates highest return for that investor.  The high interest rate in Switzerland bank had attracted foreign investors and this will take effects into the growth of currency value.

Since Forex is the simultaneous transaction of two currencies, then the market must focus on two respective interest rates, which is the base currency interest rate and the quote currency interest rate.  This will generate an interest rate differential and this is a basic factor in the Forex markets.  Traders will react when the interest rate differential changes, not the interest rates themselves.

Traders approaches the interest rates based on trading expectation and facts.  When there is rumor about changes in interest rate differential, traders will react before the fact.  However, the quieter of the markets is before a news release will normally signify a huge movement in the market.  Besides, the market expectations and actual new release will cause a potential breakout opportunity.  The news that comes out as the market expected usually do not cause a strong market reaction.  On the other hand, a sudden unexpected change in interest rates is then possibly to trigger a sharp currency move. 

IKO Forex Limited - THE BEST FOREX ASIA

12
STOCK and FOREX EXCHANGE / Retail Sales in Forex
« on: October 27, 2011, 11:04:36 AM »
Retail sales are a significant consumer spending indicator for Forex traders.  It shows the strength of consumer demand and confidence.  If the consumer has enough flexible income, then more merchandise will be produces or imported.

This indicator is released on a monthly basis and is related to the seasonal aspect.  Holiday season and back to school month are important period for Forex traders to watch the retail sales report.  Retail sales are monitored to gauge the overall strength of economy and currency.

IKO Forex Limited - THE BEST FOREX ASIA

13
STOCK and FOREX EXCHANGE / Ikofx Multiterminal
« on: October 27, 2011, 09:46:07 AM »
IKOfx MultiTerminal supports all basic functions of IKOfx Client Terminal: working with securities at Forex, Futures, and CFD, alerts about system and trading events, fast news providing, internal electronic mail, multi-language interface.

The attractive side of IKOfx MultiTerminal is the ability to work with several accounts at the same server, track open orders and trading history for several accounts, trade on several accounts simultaneously, and distribute lots on several accounts automatically in equal parts or according to the ratio between available assets on different accounts.

FEATURING:

a) Live Executable Rates
IKOfx quotes live and executable streaming prices.  These prices are updated automatically second by second reflecting the slightest move in the market.  Prices shown are actual executable prices.  The IKOfx always hold fixed spreads during normal market conditions.  Executions and confirmations are immediate under normal market conditions

B) Variety of Orders
Instant Orders: A trade is executed at the current market price.  This order is quick and efficient.  Click on the currency pair you want to trade then click on the price and the trade is executed!

Entry Orders/Pending Orders: Trader specifies the price he/she wants to open the position at.  Position is not executed until exchange rate hits the specified price.  Stop/Loss Orders: Used to pre-determine to what loss a trader is willing to take.  Limit Orders: Used to pre-determine to what profit a trader is looking to make.  Trailing Stop Orders: Used to minimize loss and set the stop order to move in the same direction as the market when it does in favor of the trader.

c) Account Information
Our MetaTrader-IKOfx trading platform does all the calculation for your account! It auto calculates your profits or losses of each trades in real time basis.  Your general equity, margin and profits or losses are also constantly updated by the slightest move in the market.

d) Margin Watcher
It is a safety feature embedded in this system of Forex trading that prevents clients from turning their deposit into negative value in their online Forex trading accounts.  Should the account Usable Margin goes down to zero, the dealing desk of Forex trading will close some of the biggest loss positions in order to protect the trader from losing more than the existing funds in the online Forex trading account.

IKO Forex Limited - THE BEST FOREX ASIA

14
STOCK and FOREX EXCHANGE / Other Features in Metatrader 4
« on: October 27, 2011, 09:21:43 AM »
The MetaTrader 4 is user friendly software and has many extra features as mentioned.  It can shift between the line, bar and candlesticks chart plus different timeframe that available in the toolbar.  Besides, it can be changed up to 24 languages based on user suitability and convenient.  The background may be changed too according to user preference.  A lot of technical indicators and line studies can be input to the market chart.

Other than that, the bottom part of the figure is the terminal features in MT4.  It gives information of current trade position details, trader?s account history, news and journals.

Next, the most advanced feature of the MT4 is the MetaEditor which enables the custom creation of own Expert Advisor automated trading program by the use of MQL language, which is quite similar to the C programming, to compile the program codes.  There is built in dictionary to teach and help user to develop the codes.

Moreover, the strategy tester feature in MT4 allows back-test simulation to carry out in order to evaluate the EA developed.  The back-test can be done either in visual mode or not.  The visual mode models the simulation to the real time executions.  In the strategy tester, user can modify the test setting such as currency pair, tested EA, use date, and timeframe.  When the back-test is finished, the software automatic generates the results.

IKO Forex Limited - THE BEST FOREX ASIA

15
STOCK and FOREX EXCHANGE / 5 Leading Traders ( IKOFX DEMO BLAST CONTEST)
« on: October 27, 2011, 06:57:43 AM »
This is a monthly contest dedicated to all Forex Traders of IKOFX with Demo Accounts.  It is designed to test our valued traders? Forex trading skills without risking any amount of money and at the same time would allow them to win real money prizes while practicing in trading forex.  This is a great opportunity to demonstrate their knowledge with the Forex Market and to apply their analytical and methodical skills as well an excellent way to show the best trading strategy that is profitable.

Each trader should designate a demo account for this contest and must register it as participant in a particular given month.  The 1st five traders with the highest accumulated gaining in trading their designated demo account at the end of a given month (last day/date of the month 23:59 GMT) shall win the real money prizes that will be deposited in their live trading account.

TOP 5 TRADERS as of today are:

1 4326390 Mat Sapu
2 4318025 jellyfish
3 4326094 balthazor
4 4324452 Rudy kurniawan
5 4325796 mc_mc

YOU CAN REGISTER now for free!!!

IKO Forex Limited - THE BEST FOREX ASIA

16
STOCK and FOREX EXCHANGE / Trendlines and channels
« on: October 27, 2011, 06:33:11 AM »
The idea of trend is principal to technical analysis.  A trend shows the direction of the market.  The technical analysis is all about predicting the trend of the market.  A trendline is the natural development in tracking a trend.  Trendline is a straight line that connects the major peaks or the major troughs.

Thus, a trend can be notice in the chart.  The trendlines are classified as: up trendlines, down trendlines, and sideways trendlines.

A channel is created by sketch a parallel line that connecting the significant peaks in an uptrend and the significant troughs in a downtrend.  The channel line then creates a channel which borders the currency trend.  When prices hit the bottom side of the channel, this may be a good buying opportunity and reversely if prices hit the upper side.

One of the types of line studies is the Ascending Triangle and it is formed during an uptrend.  Besides the ascending triangle, other line studies that available in Forex are Descending Triangle, Symmetrical Triangle, Head and Shoulder, Pivot Point, Fibonacci Retracement, and many more.

IKO Forex Limited - THE BEST FOREX ASIA

17
STOCK and FOREX EXCHANGE / The Central Bank
« on: October 27, 2011, 05:30:26 AM »
A central bank's role is to direct the domestic monetary policy and maintain the stability of the national currency of its country.  The central bank deals with the flow of money and credit that is provided to the economy under the monetary policy.  Its responsibility includes controlling subsidized-loan interest rates and acting as a lender to the banking sector during times of financial crisis.  It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently.  Market interventions are a part of the total role that central banks exercise in affecting the Forex market.

The Federal Reserve was established at 1913, when Congress passed the Federal Reserve Act.  The Act held that role of the Federal Reserve was to provide an elastic currency and establish an effective supervision of banking in the United States.  In 1923 the Open Market Investment Committee (OMIC) was establish to coordinate the Reserve Bank operations.  In 1930, the OMIC was replaced by the Open Market Policy Conference (OMPC) and it consists of 12 Federal Reserve Banks governors and the members of the Board.

The Banking Act of 1935 had reshaped the structure of the Federal Reserve System and the OMPC's name was switched to the Federal Open Market Committee (FOMC).  The Banking Act held that the Board must generate a suitable environment for business stability.  Like the other central banks, the Federal Reserve affects the Forex markets in three general ways:

1.  The discount rate.
2.  The money market instruments.
3.  Foreign exchange operations.

The major central banks are involved in the Forex market operations in more ways than intervening in the open market.  Their operations include payments between central banks.  The major central banks do not engage in speculative trading.  Intervention in the Forex markets is toward restoring orderly condition in the market or influencing the exchange rates.  The actual intervention is executed by the Foreign Exchange Desk at the Federal Reserve Bank of New York.  There are two types of Forex interventions:

1.  Naked intervention
2.  Sterilized intervention

Naked intervention refers to the sole Forex activity.  To be brief, Federal Reserve either buys or sells US dollar against a foreign currency.  Besides the impact in the Forex market, there is also a monetary effect on the money supply.  If the money supply is impacted, then adjustments will be made in interest rates, prices and all levels of economy.  Consequently, a naked intervention results a long term effect.

Sterilized intervention functions to neutralize the impact on the money supply for the reason that there are few central banks want the impact or the intervention in the Forex market to affect all corners of their economy.  The impact of sterilized intervention will tend to have only a short to medium term effect.

Here is a case example of market intervention from the Bank of Japan.  Japan's economy is mostly depending upon its exports.  Thus, Japan's economy benefits from the weaker value of yen because low value yen provide an advantage in its export competitive.  So, the yen value is preferred to be remained low relative to USD.  When the yen value appreciates, Bank of Japan will try to control it by market intervention either selling trillions of yen to bring down the value or reduce the interest rates.  In early 2004, the Bank of Japan intervened in the currency market to keep the exchange rate of USD/JPY above the level of 105. 00.  Figure 2 shows that this massive intervention pushed the USDJPY from just above 105. 00 to above 112. 00, a 700 pip gain in just a few weeks.

IKO Forex Limited - THE BEST FOREX ASIA

18
STOCK and FOREX EXCHANGE / The Central Bank
« on: October 27, 2011, 05:18:40 AM »
A central bank's role is to direct the domestic monetary policy and maintain the stability of the national currency of its country.  The central bank deals with the flow of money and credit that is provided to the economy under the monetary policy.  Its responsibility includes controlling subsidized-loan interest rates and acting as a lender to the banking sector during times of financial crisis.  It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently.  Market interventions are a part of the total role that central banks exercise in affecting the Forex market.

The Federal Reserve was established at 1913, when Congress passed the Federal Reserve Act.  The Act held that role of the Federal Reserve was to provide an elastic currency and establish an effective supervision of banking in the United States.  In 1923 the Open Market Investment Committee (OMIC) was establish to coordinate the Reserve Bank operations.  In 1930, the OMIC was replaced by the Open Market Policy Conference (OMPC) and it consists of 12 Federal Reserve Banks governors and the members of the Board.

The Banking Act of 1935 had reshaped the structure of the Federal Reserve System and the OMPC's name was switched to the Federal Open Market Committee (FOMC).  The Banking Act held that the Board must generate a suitable environment for business stability.  Like the other central banks, the Federal Reserve affects the Forex markets in three general ways:

1.  The discount rate.
2.  The money market instruments.
3.  Foreign exchange operations.

The major central banks are involved in the Forex market operations in more ways than intervening in the open market.  Their operations include payments between central banks.  The major central banks do not engage in speculative trading.  Intervention in the Forex markets is toward restoring orderly condition in the market or influencing the exchange rates.  The actual intervention is executed by the Foreign Exchange Desk at the Federal Reserve Bank of New York.  There are two types of Forex interventions:

1.  Naked intervention
2.  Sterilized intervention

Naked intervention refers to the sole Forex activity.  To be brief, Federal Reserve either buys or sells US dollar against a foreign currency.  Besides the impact in the Forex market, there is also a monetary effect on the money supply.  If the money supply is impacted, then adjustments will be made in interest rates, prices and all levels of economy.  Consequently, a naked intervention results a long term effect.

Sterilized intervention functions to neutralize the impact on the money supply for the reason that there are few central banks want the impact or the intervention in the Forex market to affect all corners of their economy.  The impact of sterilized intervention will tend to have only a short to medium term effect.

Here is a case example of market intervention from the Bank of Japan.  Japan's economy is mostly depending upon its exports.  Thus, Japan's economy benefits from the weaker value of yen because low value yen provide an advantage in its export competitive.  So, the yen value is preferred to be remained low relative to USD.  When the yen value appreciates, Bank of Japan will try to control it by market intervention either selling trillions of yen to bring down the value or reduce the interest rates.  In early 2004, the Bank of Japan intervened in the currency market to keep the exchange rate of USD/JPY above the level of 105. 00.  Figure 2 shows that this massive intervention pushed the USDJPY from just above 105. 00 to above 112. 00, a 700 pip gain in just a few weeks. 

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19
STOCK and FOREX EXCHANGE / Major Player in Foreign Exchange
« on: October 27, 2011, 05:16:40 AM »
The major players in the Forex market arena are commercial banks, investment banks, central banks, trading institutions, hedge funds, corporations, and individual investors.

Commercial and investment banks are the natural players in Forex.  Currency trading started to be an additional service to commercial banking business, deposits and loans.  The commercial and investment banks are in the market on behalf of both customers and themselves.

Central banks are different type of player.  They are not in the market for money and they are in fact nonprofit organization.  Their main purpose is to provide satisfactory trading condition and direct the domestic monetary policy and maintain the stability of the national currency of its country.

Hedge funds mainly research potential investments in the markets worldwide and focus the capital on one or few instruments only.  The international investment opportunities increase when more funds are entering the currency markets.

The internationalization of business and increase in competition force corporations to keep an eye on at Forex.  Corporations surpass their commercial needs and take speculative positions, as opportunities occur.

Individual investor access Forex hoping to make money by exploiting the movement of a currency pair. 

IKO Forex Limited - THE BEST FOREX ASIA

20
STOCK and FOREX EXCHANGE / Hedging in Forex
« on: October 20, 2011, 11:12:42 PM »
A hedge is an investment that carries out specifically to reduce the risk in another investment.  Hedging is more like a strategy designed to minimize the exposure to unwanted business risk at the same time gain profits from an investment.  In the other way, think of hedging as insurance.  When hedge is done, people are ensuring themselves against negative event.  The impact of the negative event is reduced if hedge properly.  Hedging is not for making money but reduce the potential loss and hedging occurs everywhere.

Some types of risk are natural to any business activity such as oil price.  Risk are not wanted but cannot be avoided without hedging.  A hedge for this type of risk is called natural hedging.  In natural hedging, undesired risk is reduced by matching cash flows.

Hedging is the favorite technique used by corporations.  Income of company was often heard to be reduced by the falling of commodity prices.  Reason why companies make an effort to hedge is because there are always risks to their central business.  Companies enter a transaction whose sensitivity to movements in financial prices offsets the sensitivity of their core business to such changes.  Corporations also hedge for eliminate and managing the types of exposure they facing.

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21
STOCK and FOREX EXCHANGE / Standard Deviation in FOREX
« on: October 20, 2011, 11:01:28 PM »
Standard Deviation ? value of the market volatility measurement.  This indicator describes the range of price fluctuations relative to simple moving average.  So, if the value of this indicator is high, the market is volatile, and prices of bars are rather spread relative to the moving average.  If the indicator value is low, the market can described as having a low volatility, and prices of bars are rather close to the moving average.  Normally, this indicator is used as a constituent of other indicators.  Thus, when calculating Bollinger Bands, one has to add the symbol standard deviation value to its moving average.

Where:
SQRT ? square root;
SUM (. . . , N) ? sum within N periods;
SMA (. . . , N) ? simple moving average having the period of N;
N ? calculation period.

To know more about Technical analysis feel free to visit US

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22
STOCK and FOREX EXCHANGE / Acceleration/Deceleration - TECHNICAL ANALYSIS
« on: October 20, 2011, 09:37:40 PM »
Acceleration/Deceleration Technical Indicator (AC) measures acceleration and deceleration of the current driving force.  This indicator will change direction before any changes in the driving force, which, it its turn, will change its direction before the price.  If you realize that Acceleration/Deceleration is a signal of an earlier warning, it gives you evident advantages.

The nought line is basically the spot where the driving force is at balance with the acceleration.  If Acceleration/Deceleration is higher than nought, then it is usually easier for the acceleration to continue the upward movement (and vice versa in cases when it is below nought).  Unlike in case with Awesome Oscillator, it is not regarded as a signal when the nought line is crossed.  The only thing that needs to be done to control the market and make decisions is to watch for changes in color.  To save yourself serious reflections, you must remember: you cannot buy with the help of Acceleration/Deceleration, when the current column is colored red, and you cannot sell, when the current column is colored green.

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If you enter the market in the direction of the driving force (the indicator is higher than nought, when buying, or it is lower than nought, when selling), then you need only two green columns to buy (two red columns to sell).  If the driving force is directed against the position to be opened (indicator below nought for buying, or higher than nought for selling), a confirmation is needed, hence, an additional column is required.  In this case the indicator is to show three red columns over the nought line for a short position and three green columns below the nought line for a long position.
AC bar chart is the difference between the value of 5/34 of the driving force bar chart and 5-period simple moving average, taken from that bar chart. 

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23
STOCK and FOREX EXCHANGE / The Major Player in Foreign Exchange
« on: October 19, 2011, 09:29:44 PM »
The major players in the Forex market arena are commercial banks, investment banks, central banks, trading institutions, hedge funds, corporations, and individual investors.

Commercial and investment banks are the natural players in Forex.  Currency trading started to be an additional service to commercial banking business, deposits and loans.  The commercial and investment banks are in the market on behalf of both customers and themselves.

Central banks are different type of player.  They are not in the market for money and they are in fact nonprofit organization.  Their main purpose is to provide satisfactory trading condition and direct the domestic monetary policy and maintain the stability of the national currency of its country.

Hedge funds mainly research potential investments in the markets worldwide and focus the capital on one or few instruments only.  The international investment opportunities increase when more funds are entering the currency markets.

The internationalization of business and increase in competition force corporations to keep an eye on at Forex.  Corporations surpass their commercial needs and take speculative positions, as opportunities occur.

Individual investor access Forex hoping to make money by exploiting the movement of a currency pair.

IKO Forex Limited - THE BEST FOREX ASIA

24
STOCK and FOREX EXCHANGE / WHY TRADE FOREX - IKOFX
« on: October 19, 2011, 08:52:55 PM »
There are many benefits and advantages to trading Forex with IKOfx.  Here are just a few reasons why so many traders are choosing this market and partnership with IKOFX:

* Commissions free.
No clearing fees, no exchange fees, no government fees, and no brokerage fees.
* No middlemen
Spot currency trading eliminates the middlemen, and allows you to trade directly with the market responsible for the pricing on a particular currency pair.
* No fixed lot size.
In the futures markets, lot or contract sizes are determined by the exchanges.  A standard-size contract for silver futures is 5000 ounces.  In Forex, you determine your own lot size.  This allows traders to participate with accounts as small as $1 USD
* Low transaction costs.
The retail transaction cost (the bid/ask spread) is typically less than 0. 1 percent under normal market conditions.  At IKOfx, the spread could be as low as 2 pips.
* A 24-hour market.
From Sunday 2200 EST to Friday 2100 EST, the Forex market never sleeps.  This is good for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.
* No market manipulation
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank) can control the market price for an extended period of time.
* Leverage.
In Forex trading, a small margin deposit can control a much larger total contract value.  Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum.
* High Liquidity.
Because the Forex market is so enormous, it is also extremely liquid.  Under normal market conditions, just a click you able to instantaneously buy and sell at will.  You can even command the trading platform to automatically close your position at your desired profit level (a limit order), and/or close a trade if a trade is going against you (a stop loss order).
* Free "Demo" Accounts, News, Charts, and Analysis.
IKOfx offer free 'demo' accounts to practice trading, along with breaking Forex news and charting services on the website for beginner traders who would like to hone their trading skills with virtue money before opening a live trading account and risking real money.
* "Mini Account" Trading:
You would think that getting started as a currency trader would cost a ton of money.  The fact is, compared to trading stocks, options or futures, it doesn't.  IKOfx offer "mini" trading accounts with a minimum account deposit of $1 USD.  It makes Forex much more accessible to the average individual who doesn't have a lot of start-up trading capital.

IKO Forex Limited - THE BEST FOREX ASIA

25
STOCK and FOREX EXCHANGE / FOREX TERMINOLOGY
« on: October 19, 2011, 08:00:49 PM »
Since currencies are always quoted in pairs; for example: EUR/USD = 1. 3075.  The first currency left to the slash is called base currency while the currency right to the slash is called quote currency and the value shown is the exchange rate.  The base currency is the basis for the buy or sells.  If trader buy EUR/USD, means he/she are buying the base currency (in this case, the Euro) and at the same time selling the quote currency (in this case, the US dollar) and vice versa.  In Forex market, buy is termed as "go long" or "long position" and sell is termed as "go short" or "short position".  For this particular example, trader will need to pay 1. 3075 US dollar to buy 1 Euro and can receive 1. 3075 US dollar when sell 1 Euro (without considering the spreads).  A trader is open position whenever he enters a trade and is close position when he exits from his trade.

The "bid" is the price which traders will sell and the "ask" is the price which traders will buy.  The bid price will always lower than the ask price and the difference between the prices is known as "spread".

In Forex, there is a term called Swap Rate or Rollover Interest.  Rollover interest is a type of interest rate that trader pays or earns depending on the pair of currencies traded.  As every Forex trade involves borrowing one currency to buy for another, rollover interest is part of the Forex trading.  Interest is paid on the currency that is borrowed and is earned on the currency that trader bought.

Forex is traded in lots.  The standard size of a lot is $100,000 and a mini lot size is $10,000.  Pip is the dimension of the smallest increment or decrement of currencies.  A pip is the last decimal place of a quotation and use to measure trader's profit or loss.  For instance, EUR/USD move from 1. 3075 to 1. 3076, there is a pip increase in the quotation.  For quotation involving the Japanese yen, there will has only two decimal points such as 123. 45, and 1 pip would be 0. 01.  In foreign exchange market, the value of a pip is all shown in the unit of US dollar.  Sample of calculation for pip value is shown below.  Profit or loss is thus calculated by just multiply the pip value with the amount of pips gain or loss.

Example:

USD/CAD at an exchange rate of 1. 2345:
(0. 0001/1. 2345) ? $ 100,000 = $ 8. 10 per pip

If the base currency is not US dollar, the formula is slightly changed.

EUR/USD at an exchange rate of 1. 3075:
(0. 0001/1. 3075) ? EUR 100,000 = EUR 7. 65 ? 1. 3075 = $ 10 per pip

Margin is the minimum account size require for a trader to trade.  Unlike other markets, Forex allow trader to trade with leverage.  Leverage is the ratio that trader can trade using a small account size.  If $ 1,000 is deposit and trade in standard lot size, the trader is trading in a leverage of 100:1.  At IKOfx, we offer leverage up to 500:1.  A trader will experience a margin call if the equity (the value of account) fall below the margin requirements.  In the event of margin call, the trading platform will automatically close some or all open positions to prevent trader's account fall to negative balance.
There are some basic types of order that use in Forex market.

1.  Market Order
To buy or sell a currency pair at the current price.  Execution of this order results in opening of a trade position instantly.
2.  Pending Order
Pending order is the client's commitment to the IKOfx to buy or sell a currency pair at a pre-defined price in the future.  This type of orders is used for opening of a trade position provided the future quotes reach the pre-defined level.  There are four types of pending orders available in the terminal:
* Buy Limit ? buy provided the future "Ask" price is equal to the pre-defined value.  The current price level is higher than the value of the placed order.
* Buy Stop ? buy provided the future "Ask" price is equal to the pre-defined value.  The current price level is lower than the value of the placed order.
* Sell Limit ? sell provided the future "Bid" price is equal to the pre-defined value.  The current price level is lower than the value of the placed order.
* Sell Stop ? sell provided the future "Bid" price is equal to the pre-defined value.  The current price level is higher than the value of the placed order.
3.  Stop Loss
This type of order is used for minimizing of losses if the security price has started to move in an unprofitable direction.  If the quote price reaches this level, the position will be closed automatically.  Such orders are always connected to an open position or a pending order.  Terminal checks long positions with Bid price for meeting of this order provisions, and it does with Ask price for short positions.  To automate Stop Loss order following the price, one can use Trailing Stop.
4.  Take Profit
Take Profit order is intended for gaining the profit when the quote price has reached a certain level.  Execution of this order results in closing of the position.  It is always connected to an open position or a pending order.  Terminal checks long positions with Bid price for meeting of this order provisions, and it does with Ask price for short positions.
5.  Trailing Stop
Trailing Stop is always attached to an open position and works in client terminal, not at the server like Stop Loss, for example.  To set the trailing stop, the user has to execute the open position context menu command of the same name in the "Terminal" window.  Then the user has to select the desirable value of distance between the Stop Loss level and the current price in the list opened.  Only one trailing stop can be set for each open position.  After the above actions have been performed, at incoming of new quotes, the terminal checks whether the open position is profitable.  As soon as profit in points becomes equal to or higher than the specified level,
command to place the Stop Loss order will be given automatically. The order level is set at the specified distance from the current price.  Further, if price changes in the more profitable direction, trailing stop will make the Stop Loss level follow the price automatically, but if profitability of the position falls, the order will not be modified anymore.  Thus, the profit of the trade position is fixed automatically.  After each automatic Stop Loss order modification, a record will be made in the terminal journal.

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