Forex Trading Profit

Tiffani Jewellery

2010-02-25T16:54:00.000-08:00

The style of the earrings is related to your face shape. People with triangular faces are not suitable for long earrings with pendants to wear earrings while in wave form can provide a sense of coordination. If you have an oval face, you can wear earrings in every style. Round-faced people should avoid wearing small earrings or oblate, which may face look longer. If you have a slim figure, you can wear small earrings with fine design.

As for people with a long neck and thin, short and broad-rimmed chain is the best choice. Besides, the chain with an average length goes well with oval face, showing elegant face sketches. In summer, most women wear with open collar, which makes their necks to see clearly. Besides necklaces and earrings, bracelets are also indispensable gem to show in the summer. If your wrist is thin, you can choose a little bracelet with wide brim. Young ladies can try two or three narrow rimmed wear bracelets together.

Is it very strange to think the importance of Tiffani jewellery? So surely you'd think Tiffani sale are booming?

Personally I have always been attracted to Tiffani jewellery of simple pearl earrings, pendants and bracelets unusual sound. Picking up a sort of one of my trips rings and Tiffani jewellery that never fail to start a conversation, silver necklaces from Thailand, earrings Opal from Australia.

Simultaneously there is something irresistibly tempting about brushing your hair back to a pair of Kenneth Jay Lane crystal drop earrings, or picking up a glass with a complicated Alex Monroe reveal ring Wrapped Around Your Finger. Although you can not consciously choose your Tiffani jewellery with your outfit, that gap years bracelets on your wrists and silver ring that practically an impression of your finger as much as the clothes you choose to wear.

Choose mate Tiffani jewellery and refuses to let you leave, based on the ring of your grandma that infectious charm bracelet that is an overwhelming sentimental item. Losing your favorite tee shirt is nothing compared to losing your favorite ring.

Importance of Jewellery

2010-02-18T22:27:00.000-08:00

Is it very strange to think the importance of jewelry? So surely you'd think jewelry sales are booming? Personally I have always been attracted to jewelry of simple pearl earrings, pendants and bracelets unusual sound. Picking up one of a kind rings and jewelry from my travels that never fail to start a conversation, silver necklaces from Thailand, earrings Opal from Australia.

Simultaneously there is something irresistibly tempting about brushing your hair back to a pair of Kenneth Jay Lane crystal drop earrings, or picking up a glass with a complicated Alex Monroe reveal ring Wrapped Around Your Finger. Although you can not consciously choose your jewelry with your outfit, that gap years bracelets on your wrists and silver ring that practically an impression of your finger as much as the clothes you choose to wear.

Choose mate jewelry and refuses to let you leave, based on the ring of your grandma that infectious charm bracelet that is an overwhelming sentimental item. Losing your favorite tee shirt is nothing compared to losing your favorite ring.

Take my friend Alice she is a very LK Bennett shoes, Ralph Lauren sweaters kind of girl and I suppose it would not be shocking to tell you that they do not wear bold statement necklaces and hoop earrings, diamond studs her small but hardly noticeable an instant indicator of her personality.

Today let's talk a little about jewelry: jewelry show how dramatic power summer. The revealing style of earrings is related to your face shape. People with triangular faces are not suitable for long earrings with pendants to wear earrings while in wave form can provide a sense of coordination. If you have an oval face, you can wear earrings in every style. Please never try too long, too small or too big. Round-faced people should avoid wearing small earrings or oblate, which may face look longer. If you have a slim figure, you can wear small earrings with fine design.

As for people with a long neck and thin, short and broad-rimmed chain is the best choice. Besides, the chain with an average length goes well with oval face, showing elegant face sketches. In summer, most women wear with open collar, which makes their necks to see clearly. Well-designed chains, such as Tiffany & Co last test series can function as a good way to add beauty and charm.

Besides necklaces and earrings, bracelets are also indispensable gem to show in the summer. If your wrist is thin, you can choose a little bracelet with wide brim. Young ladies can try two or three narrow rimmed wear bracelets together. No doubt there are many other types of jewelry. Tiffanys sale, as one of the best online stores for Tiffany jewelry, always with heart and soul dedicated to providing all of your exciting tiffany Jewelries at the most competitive prices, let you enjoy the beauty and fashion with the lowest cost.

Tiffany store, as one of the best online stores for Tiffany jewellery, always with heart and soul dedicated to providing all of your exciting tiffany Jewelries at the most competitive prices, let you enjoy the beauty and fashion with the lowest cost. And surly Tiffany jewelry will best holiday gift. So do not hesitate, choose one at a time!

Links of London Jewelry

2010-02-15T04:47:00.000-08:00

Jewelry has been worn by humans for generations, and means different things to different people and cultures. Today, people tend have certain expectations of their jewelry, it must be high quality, fashionable and attractive. The company history is interesting, and goes to show that even internationally recognized brands to start small to get started!

Links of London was founded in 1990 in the city of London, United Kingdom, in response to a request from a local restaurant owner for a few Sterling silver cufflinks, which are given to loyal customers. The company now has stores in the U.S., Canada, Hong Kong and the United Kingdom. The company seeks the personalization of their products as possible by providing space for engravings and relief, and producing a series of charms for individuals to choose their own bracelets for baby making.

This adds an extra sense of luxury to the items of jewelry, making your donation or purchase more exciting. At the time sweetie bracelets are very popular, they are examples of items of fun jewelry made by famous brands for quality.

Besides the bracelets, necklaces, rings, earrings and charm, Links of London also produce a number of attractive and high quality watches that should be considered when selecting that special something. No matter what jewelry item that you ultimately choose to purchase products from the Links of London combine style, quality and character.

Diamond earrings are the first choice of the woman who loves diamonds earrings, because it’s classic and never go out of style. You can wear diamond earring when in the night or day when you're at work. But buying a diamond earring is a very daunting task and you must be very careful.

Here are some guidelines that will help you when buying a perfect diamond earring. Before purchasing your earring, you must comply with the style. You can find many different styles such as diamond earring stud earrings, hoop earrings, fancy stud earrings and much more. If you are looking for simple style than chandelier earrings are the best example of simple earrings and if you want something different than the current and classic diamond stud earrings are the best.

You should also take into account the carat of diamond, the weight of diamonds and is measured in carats. You can also find earrings made of precious stones, beads and silver. But before the selection of the metal of your earring you think of choosing your partner well.

By surfing the Internet you can find many online stores offer a high quality of the diamond earring at reasonable prices. Making a purchase could be simpler. Go to elinksjewellery and add any items you want to buy into the shopping cart. Elinksjewellery sell a range of jewelry, including Links of London, Links of London Earrings, Links of London Rings and other brands.

Some Tips to Buy Louis Vuitton Bags

2009-12-06T02:57:00.000-08:00

Luxury and status are two important issues surrounding the buying craze behind legitimate Louis Vuitton bags. But this exclusivity has given reason for manufacturers to design the famous false Design House to create. It is clear then that the best bags to buy at a good Louis Vuitton boutique. Before buying you should first check whether your bag is actually made by Louis Vuitton. You should carefully study the design elements of their collections.

Note the Ming in the Louis Vuitton Monogram bag, which should be in a symmetrical placement of the bag to be original. To ensure a multi-colored design is authentic, you should see if the colors are one of the 33 colors used Louis Vuitton. Dull colors is a sure sign of fake Louis Vuitton bag. Do not choose a bag by photo if you buy from eBay; instead ask the seller these questions. Louis Vuitton design is that sometimes gave the logo on his head not mistake this for a fake.

There should be no loose hanging tags Louis Vuitton bags hang tags ever since. You should also consider the fact that fake Louis Vuitton bags to be auctioned during the weekend when more so-called special discounts. You should always buy Louis Vuitton bags from a smoke-free place. This is because cigarette smoke tends to enter the Louis Vuitton dust and leather even in the parts of a Louis Vuitton bag.

Louis Vuitton is one of the most famous brands. People from all over the world love the design and purchase the brand Louis Vuitton. Like most women love the look of a real fashion designer Louis Vuitton handbags. For me, Louis Vuitton handbag is not just a handbag, it is the ultimate fashion statement and represents a dream come true. It is my dream handbag.

There are many imitation bags on the market due to the popularity of the Louis Vuitton handbag. Be careful when buying Louis Vuitton handbags. The following points should be kept in mind when buying a bag: Louis Vuitton handbags are made of camel, crocodile and lamb skins and are very expensive. It is very difficult to miss a distinctive Louis Vuitton handbag.

Popular Styles of Ugg Boots

2009-11-18T22:55:00.000-08:00

Ugg boots are a style of sheepskin boot lined with wool on the inside and with a tanned outer surface. Ugg boots often have a synthetic sole, but this is not universal. The natural insulating properties of sheepskin provides thermostatic properties to the boots: the thick fleecy fibers on the inner part of the boots allow air to circulate and keeping feet at body temperature. This means that Ugg boots can be worn without socks, even in relatively cold weather.

Ugg boots are traditionally made of sheepskin. The soles of the boots are made of rubber, and the stitching is often prominent on the outside of the boot. The film pulls moisture away and keeps feet dry and at body temperature. Today they come in a variety of colors such as orange, pink, blue and fuchsia, and are available in both slip-on and lace-up varieties. The height of the boot can vary from just above the ankle, in some cases, over the knee.

Ugg boots are now setting the trend in the haute couture with their glamorous profession. Earlier Ugg boots sale are made exclusively for the winter and people wear them often as the weather is cold. Listed below are some of the styles in Ugg boots:

Ugg Classic Crochet. This luxury boat is really awesome for her slouchy knit pattern and colorful uppers. Her colorful knit uppers are made with a perfect blend of soft wool and polyester ease your feet with extreme comfort.
Ugg Classic Tall. Ugg Classic Tall is a choice between elite Australian surfers. Soft sheepskin fibers and makes your feet to breathe and keep your feet stay comfortable in the summer and winter.
Ugg Classic Short. Shorter height design, Ugg Classic Short boot is ideal under or over jeans / trousers. These Ugg boots Classic gives lasting fit due to enhanced heel guard.
Ugg Cove. The Ugg boot "cove" is a perfect retreat for your feet in the winter. Split leather and silk wrap detail around the ankle area gives stylish look and secure fit.
Ugg Stella. Sockliner lambskin and sheepskin lining allows your foot to breathe by absorbing excess moisture that causes foot odor causes.

These popular styles come in a variety of colors to match your dress. Each of these styles, a different purpose, choose your favorite styles based on your needs. It will be a good bet for you to wear these sheepskin boots with a matching handbag and jeans with a great look.

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2009-11-11T19:47:00.000-08:00

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Credit Card Processing Services

2009-08-17T08:46:00.000-07:00

Do your customers start asking you for credit cards processing services? If so, you may want to consider that service to your company in order to provide timely payment methods, which will lead back to business. performance of companies today are headed complementary sad for electronic commerce, which means that if you intend to avoid here is not being paid back, it is assumed that organized to join the multitude of professionals who are interested in running the electronic age of doing business.

Although you may have relied on cash transactions so far, you could recover with the intention of its increasingly difficult to properly change, accept checks with the rebound can track offenders and payments, although all of maintenance of roads each and every transaction. Unindustrialized out a little of these errands can be costly, which is why you may be proficient to help on after esteem credit card processing services. If the conduct of business in the most important site of an installation, you can connect a laptop and taking credit payments immediately, which are now a few apt to bounce checks.

First you will need to open a business credit card services processing tribute. Look for an ancient treasure trove with a solid reputation, which now provides a reliable market for the accounts that remind the owners of the relationships to you. So prepare to provide the necessary credentials, to show a stable reputation and a history table with the aim affordable business credit cards depends on sharing services. After its approval, which may come up within a few days you will be able to purchase or lease a credit card and delivery of equipment to open tolerant honor of initiating payments to your customers.

If your business is growing, customers are asking for only the payment of credit, or you want to progress forward with their business plan, allocate an amount of thought to opening a business account, a convenient Web site, and tallying the convenient customer service possible recognition credit card processing services.

Forex Scalping Strategy

2009-07-16T00:40:00.000-07:00

Forex scalping can also be called a quick trading. It is a method where traders allow their positions to last only a matter of seconds, to a full minute and rarely longer than that. As a general rule, if a trader has a position of more than a minute or two is no longer considered a scalp, but rather a trade. The goal is to make small profits leather, while the exposure from one account to a very limited risk, which is due to rapid open or close trading mode.

There would be no point in leather for many operators if they are not offered to trade with highly leveraged accounts. Only the ability to operate with large funds, in fact, still virtual money, empowers traders to profit from even a 2-3 pip movement.

How do they do? Suppose a scalp open trading position of a 100 000 units of EUR / USD. For every nugget that now earns $ 10 ... Closing in with only a 3 pip benefits it brings to $ 30 - not bad for less than a minute of work.

Now, you probably wonder what Forex brokers think, because if you win a scalp constantly, that the corridor, obviously, to keep some losses. That's why the theme is another popular discussion on the care provided Speculators.
What Forex broker that allows the scalp?

Obviously, dealing desk brokers do not agree with the speculators' trading style and most likely will ask a trader to change their habits or to find another commercial corridor. But even if he got a scalp, there is another method to slow performance and scalp which is to establish a delay between the onset of the order and its actual filling. The reason behind this is that dealing desk brokers need time to trade / every process to prevent losses themselves in case a trader is closed in profit.

The corridor would not be opposed to leather has the best trading platform for automated processing. Directly by using the transformation there is no intervention of a trader and a market maker - the software handles the entire business process. Therefore, it is more likely an agent with a "slow" business processing platform oppose scalp trading style.

Forex Trading Strategy: Leverage Your Capital to Multiply Profits

2009-07-16T00:19:00.000-07:00

Many beginning traders do not fully understand the concept of leverage. This one forex trading strategy, leverage capital to multiply profits. Basically, if you have a start-up capital of $ 5000 trade and commerce in a 1:50 margin you can effectively control a capital of $ 250,000. However, a two percent move against you and your trading capital is completely wiped out. If you are a currency trader principle should not use more than 1:20 margin until you get comfortable and profitable and then and only then can try to use higher margins.

What margin of 1:20 mean? This means that with $ 5000 to control a capital of $ 100,000. Say you are trading the currency pair EUR / USD and by using our entry strategy you have decided to enter the trade on a long side. This means you are betting that the depreciation of U.S. dollars against the will of Euros.

Let's say current EUR / USD rate of 1.455. Again, if the trade is $ 5000 of capital, it is actually using 1:20 as the exchange of 100,000 U.S. dollars to Euros. If the current rate is 1.455 you will receive 100,000 / 1.455 = 68,728 Euros.

If the trade goes in the direction of his room to work in their favor and 1% in dollars means 20% increase in its start-up trading capital. Therefore, if EUR / USD rate moves from 1.455 to 1.469, you can exchange your 68,728 Euros back to $ 101,000 for a profit of $ 1,000. Since its launch commercial capital was $ 5,000, is actually a 20% increase in your account. However, if the trade goes against you and USD appreciated 1% vs. Euro your account would be reduced to $ 4000.

Reasons Why Forex is Number One Investment Option

2009-07-10T22:08:00.000-07:00

There are many reasons why Forex is number one investment option in these troubled times and this article a list of them to you. First, seeing the decline of the market and how the savings can easily turn itself, you need to have the speed and patience is not one thing to consider when it you expect from your investment decision for leave live in the market. You need a market that is fully liquid in nature, and this has to Forex shovel. It is one of the most liquid markets in the world, and because of this, you can maintain a high level of investor confidence. He is also the largest market in the world.

The benefit here is the lack of trade unless local laws and taxes not on the road. Survives and thrives in a concrete world of economic freedom, based on the neo-liberal market principles of free market and business environment is the best kind of environment it is. There is no trade involved unnecessary and there is no paperwork to engage in y. Another thing you can shine some light on the cause of Forex is that it is a market that has been linked to the Internet, and this has come more than a demand that the roots of the region unless the nature of the market. As the market moves from one region to another, investors can connect anytime, from anywhere, and trade in its currency pairs in the market environment of their choice.

Buying Gold Coins

2009-07-06T19:18:00.000-07:00

Gold coins have risen sharply in value in the last couple of years and now are so expensive. There are some things you should watch for when making their purchases. With the advent of the Internet, are not limited to the local currency dealer. This will give you the opportunity to obtain better prices in many currencies, but you can also enter a little more thing for you to think about when buying your gold coins.

If you buy from a bricks and mortar dealer or buy online through a website or auction site, check the reliability of the dealer first with the Better Business Bureau. If the dealer is a member of the Professional Numismatists Guild (PNG), it is a great advantage. If it is very low, or there are many negatives, think twice (and third time) before going on a lot of them. Although the information seems good, look closer, some people may buy or sell a number of very cheap items to build their ratings, and then jump in sales of large items. They act as an intermediary in the transaction and the money is not the seller until the buyer is satisfied with the item. There is a charge, that the buyer expects to pay, but worth it when a lot of money changing hands.

One of the biggest problems buying collectible gold coins is grading. His idea of an MS65 may be different than the dealer's. Many coins have a huge gap between the values in degrees. Avoiding the issue for the purchase of coins has been classified by a third in the classification of services. Make sure you only accept the major services (ANACS, NCG, PCGS, NCS, ICG), the classification, there are some lesser known grading services whose grading may be suspect. You should also want the classification has been done in the recent past. Classification rules have changed over time and it was an MS65 five or ten years ago, could only be an MS63 or 64 today.

Make sure the seller has a return policy that will allow you a refund if you are not satisfied with the coin. This should apply to both online and off-line dealers. This is especially important if you buy an uncertified coin. You want to have the option to return if their ranking service returns a lower grade gold than you bought.

Buy the scarcest coin in better condition that you can afford. Many collectible gold coins sell near the price of gold are melted because there are more than enough to cover some of the demand. This is especially true in the lower grades. When gold increases or decreases in value, these coins still in an equal percentage. But the higher the grade, the lower the population and demand will raise prices and not only after the price of gold.

Try to invest regularly. As in the stock market is very difficult to call the top and bottom of the currency market. Over time, you best rate to the dollar cost averaging to invest a large amount at once.

Forex Strategy Builder Software

2009-07-05T21:05:00.000-07:00

Forex Strategy Builder is a platform for creating, testing and analyzing business strategies for the currency market. It provides an easy way to build strategies for change through a combination of technical indicators. All parameters necessary rules and logic can be selected from menus, and not have to write a formula or program code.

Forex Strategy Builder uses real data to test for the new currency pairs and different time periods and calculate the real outcome of the strategy. Provides detailed statistics and graphs, and automatic journal shows all transactions and positions, as well as changes in your virtual bank account.

Forex Strategy Builder shows the real situation as if the marketing strategy in the market. In addition, you can test the strategies that the books or see analyzers and think for yourself whether they are profitable or not. Simply configure your strategy Forex Strategy Builder and displays the virtual bank account as if it had been marketed in the selected period. If this balance is virtual, it is an indicator that this strategy of losing real money trade, but if the balance is, the strategy can be profitable.

Forex Strategy Builder also provides a strategy that allows generating even the total novice to create a strategy with the click of a button. After the strategy is generated you can read the details in the summary. Experienced traders can use the generator and add more indicators to improve their current and their business strategy.

Another unique feature of the Forex Strategy Builder is intrabar scanner. Its aim is to ensure that the back is similar to the proof of actual movement of prices as close as possible to load all the time. Intrabar Browser lets you check the price movement within each bar and see the exact order of operations during that period.

The Optimizer can be used to adjust the indicators' parameters to get maximum benefit, but this often leads to over-optimization and is not recommended for purposes of negotiation.

Detailed information about downloading, the system requirements and installation of this program can be found on the download page.

How To Make Money with Forex

2009-06-21T18:57:00.000-07:00

Forex is a new way to make money in the world currency market. Making money in forex is very similar to stocks. It will provide a list of currency pairs along each one comes with the graphics that you can select and trade. The object of Forex trading is to exchange one currency for another. Currencies are always traded in pairs such as GBP / USD or USD / JPY. The reason they are quoted in pairs because each transaction in currency those are simultaneously buying one currency and selling another.

Thousands of people trading in the currency market, not only multinational corporations, governments, banks and other financial institutions but also individuals. You can easily find the basic rules and expert advice on how to make money in foreign currency on the Internet. There are many online tutorials that you can train in forex. Adequate training is the first step to become successful in the currency market. It is important that anyone who wonders how to make money in Forex Forex seeking professional training.

The foreign exchange earning potential is unlimited, but the entire field may seem confusing to beginners. It is always preferable to start with demo accounts. Once they acquire sufficient knowledge of the subject that you can use a real account. Patience is the key to making money in the Forex market. With experience and a little help almost anyone can make money in Forex. A large amount of aid is available through the software technology. There are several software tools that helps to read the letters of exchange and help make the right decision during the operations change. There are many online resources that answer the question of how to make money in forex.

When you buy a currency in the currency market, sold one currency and buying another. You know what currency you are betting for / against, in front of the bag in which only need to know a store. Unlike stock trading, most online forex firms do not charge commission. They make money by giving out bad and then get the charging of interest on deposits. This expansion is usually two or three seeds.

The margins are huge in currency trading; you can be easily accepted by 200 of margin line. Some companies will give you forex margin to 400:1. To be honest, there is very little regulation in this sector. Foreign exchange earnings are measured in "pips" or "points." A pip is 1 / 1000 of a dollar. Buy cheap and sell dear and buy cheap and sell dear is the basis to make money in Forex. The question is how can know the best time to buy and how can you know that if you buy, the price will rise and make a profit. There are some ways to know the optimal time to buy and sell to make money with Forex. These forms are the technical analysis and fundamental analysis.

In technical analysis, look at the price chart with the help of some special tools that are called indicators. Forex fundamental analysis is a key strategy of negotiating widely used by Forex traders online. This strategy outlines the criteria that are taken into account in currency trading. Economic conditions in the country currency, along with a number of other factors are necessary elements of fundamental analysis. There are two schools of thought in the people about how to make money in forex. On one hand you have the technique, which are essentially graphs and other statistical methods were used to try to guess the market. On the other hand you have the basics, studying things like the domestic product, interest rates, economic production. The best answer is always at the center, using a combination of graphics and tables, along with the knowledge of the real world of political developments and economic statistics to make the market more predictable for you.

Many new traders often fail to make money, because the Forex trading are confused about the hundreds of financial indicators and Forex. With tons of data that can be difficult for retailers to see new trends and leading to poor business decisions. Most new traders often lose sight of the big picture and focus on recent trends. To get too caught up with the latest news believing easy money is made by chance. That is not true.

Another mistake some of the new operators to believe there are secret or privileged information that can make rich. In the currency market is almost impossible to have any inside information; there is no possibility of an insider, even in secret. The first thing you need is a trade agent. Register with any of them and to provide a software platform those teams with a list of currency pairs, graphic, technical indicators free for use. The broker usually gives practices the freedom to provide virtual money to practice and improve their skills will teach you how to make money with Forex trading.

Foreign exchange is a great opportunity to make money for those who know their way around, so a beginner can be quite hard. There are a lot of companies and individuals online and offline to help you make money from Forex trading system, but only a few of them can help. You need help at first, and may take some time for you to learn the currency trading system. To make good profits from foreign exchange trading, it is necessary to keep an eye on the currency markets. You have to do their own analysis of foreign currency trading and you need to know what other people are thinking about new trends in foreign exchange markets. It is also necessary to follow the news that could move the currency market.

Now that you have the basics of how to make money with exchange transactions that will take the next step. If you still are not comfortable enough to invest, there are many online courses to help improve their skills. Now it's time to start making your wealth!

Forex Trading Tips

2009-06-19T01:06:00.000-07:00

There is thousands of Forex traders successfully making money trading in foreign currency, but did you know that 90% of new traders lose money doing this? To succeed, there are some things you absolutely must know. The following are some of the most important forex tips to understand if you plan to make money in currency trading.

In pairs to learn - know both sides of the Currency

It is absolutely impairitive that you understand the relationship of the two currencies you are trading with each other. Understanding how currency fluctuations affect others and their cyclinicals. Failure to have a basic understanding of what learning is likely to end up trading costs money.

Watch Global Influencers - News & Events

One of the biggest contributors to fluctuations in currency events around the world. Good or bad news, especially in the financial sector will cause a change in the value of world currencies. Instability in one market will likely lead to another boom - make sure you know your peers! Remember, the instability and volatility is where you make your money.

More prudent and tiny margins of trade

We've all heard the old addage "slow and steady wins the race." Well, it is the opinion of this merchant that the types of investments will lose the race. This is a player of the game, if you do not give your position an opportunity to demonstrate their value to you in the same trade undercutting fees. Make big shops are where the money is, and then again you should know and be confident in their position.

Have a strategy, but stay on your toes

Could you start a business without a business plan? If so, exchange operations are not right for you. You must have a plan detailing the approach to take the coins for trade and how to manage the risk that your taking. But that said, always be aware of your market and do not be afraid to call an audible if you see indicators that suggest a change in plans Recalls global influence?

Emotional trading and trust

It goes back to a strategy. If you are emotional, then you're not thinking with your head, like a poker player is going to tilt. Keep cool and stay confident in maintaining their plan. Learn to manage stress and understand that while you play a winning strategy, which will have ups and downs, but eventually you will succeed, provided they stay calm.

The Hidden Techniques

2009-06-19T00:43:00.000-07:00

Forex is a big market to participate in and surprisingly only 5% making money are higher. That means the remaining 95% of traders are breaking even or losing money. The small minority at the top in this business have their own techniques and strategies they use to hidden benefit. I hope to give you a look at what they do.

The expert trader also knows when it should leave the training wheels, which would be the demonstration of the platforms. I'm not saying they're bad because demonstrations are excellent tools for people relatively new, but there is one point that it can not help you and can be detrimental to its success. You have to learn to recognize this and stop using it.

The three development steps

2009-06-19T00:40:00.000-07:00

The three development steps of forex trading:

1. Emotions
Emotions and intuition can not be calculated mathematically. Mathematics is the only thing that a trading system has to work. Therefore, the first and most important development director of the trading system is that each State to enter or exit the market should be justified mathematically.

2. Complexity
Growing up in the trading systems and more complex by the inclusion of rules that take into account more parameters. I believe the excessive amount of rules can ruin good trading system.

3. Test
Testing is absolutely necessary step. You need to have historical price data to test the system.

Price Action, Impulsive vs Corrective

2009-06-06T01:35:00.000-07:00

One of the toughest borders for Forex traders has been the interpretation of price action without the presence of a known flow. Although there are many methods to dip their fingers in the cake ingredients and get a sample of the price action, none of them seems to be fully at the base of our subject - in the real price of the ingredients of the action.

What is the price action?

Price action is essentially the closest relative to the flow of foreign currency and in all markets. Is a direct result of the order flow? Therefore, has the fingerprints of prejudice, the speed of buying / selling, buying and selling that is occurring (support / resistance) when a leak is real and a probable change is occurring. The continuous flow of price action that our graphics pouring in, all indicators were born and, therefore, depends on it. Therefore, to understand and be able to interpret the price action becomes an essential component of our trade. It is a way to get to the essence behind what creates most of the technical indicators and market signals.

Impulsive vs Corrective

Although I do not promote the use of wave Eliot, Elliot wave theory had the wisdom and insight to examine the difference between the movements. Both moves are seen around the world is an essential Impulsive move or relocate a corrective.

Impulsive Moves

An impulsive move is characterized by a strong force or move in one direction. It is very fast and powerful, which produces some of the candles in a larger whole, although any time. It is also usually followed by several candles moving in one direction, or most of them in one motion. Candles are often represented by closed at the top or bottom of the candle, depending on the direction of the impulsive move.

They ultimately created a large amount of capital with the buyers / sellers to reach a certain level with a specific address in mind. The other scenario is being created due to a price cascade through major stops tripping and, therefore, the abolition of the defenses to rise or fall in the level of resistance or support, creating an imbalance in order books. Impulsive moves can happen at any time.

Figure 1 illustrates a recent impulsive dive in the EUR / USD. In this graph of 1 hours, observe how the movement began with the largest sailing around the movement and the closure is toward the bottom of the candle (signaling steady selling pressure for the entire hour).

Also notice how before the movement is a mix of red / blue sail, but once the momentum starts to move, we have six red candles in a row.

This movement sends the pair in a capitulation below 1.5928 to 1.5756 (172 pips) in a matter of 6 hours. The daily ATR (average true range) for this pair was 133 pips in the top down on a daily basis, but in 6 hours, moved over the average daily range by almost 22%. This is a great example of an impulsive move.

These are the types of movements that want to be in. These are movements where the order flow is the most consistently and strongly biased in one direction. Its secret is not moving the big market. Therefore, being able to identify the movements and assemble these impulsive waves give us some of the best business opportunities.

Corrective moves congested

Corrective moves are the most common moves an impulsive move. That almost the opposites of impulsive movements. The candle bodies tend to be smaller in nature, however, does not close flush to the top or bottom. They are usually a blend of fruits with two sails up and down and generally have little or no bias. It is important to identify because these are the prelude to the next impulsive move.

From an end-of-flow, are usually created by one of two scenarios: 1) to take profits after a major impulse with few buyers and sellers in the next challenge for the preceding movement, or 2) a mixture Buyers and sellers who reside in the same place and a potential investment. More often than not, a corrective move following an impulsive move is usually a continuation move.

Figure 2, seeing the same EUR / USD showing the corrective action before landing the high triple dive for this pair, followed by a corrective move, and then continues to sell.

Remember, when you trade, we want the order flow bias strongly in our favor. Corrective moves very little bias with order books closely aligned with 50% of buyers and sellers. Even in the best scenario at a 60/40, still have a much higher percentage of players on the other side of the market, the price action moving in the opposite direction of their trade. Ideally, we want the maximum available tilt and corrective moves in themselves do not offer this to us as foreign exchange traders.

Forex Tips 11 - 20

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Tip 11. Think about the risk / reward ratio before entering each trade.
How much money can you lose in this trade? How much can you get? Now, if you make decisions that trade worth entering. Example: if traders look for possible 35 pips gain and possible 25 pips loss, the condition is not worth trading. Compare with the situation when a trader has 100-120 pips profit potential and the only possibility of 10/20 pips loss. This is the trade to open!

Tip 12. Do not add to the loss of trade position. Do add positions when the trade would have proved profitable.
Do not let a few lost consecutive trading snowballs into lost trade. When the day is clearly not good, turn the monitor off. Often do not trade during a day can help to break the chain of consecutive losses. Try to get revenge often make things worse.

Tip 13. Let your profits run.
You can leave a position open for as long as the market would like to reward you. Of course, this requires a trader to exit a good strategy, if they all risk benefit back ... Running two or more open trade to give the option to close several other positions earlier and keep running for a higher profit.

Tip 14. Cut your losses short.
Better to complete the trade do not quickly than waiting for the situation to get worse. Do not put the stop loss too far - it's your money you risk. Better calculate the best place to enter if the potential loss will be minimized. More: respect you and do not stop move "cherishing hopes".

Tip 15. Trade currency pairs in relation to the active market hours.
Learn about overlapping market hours when the two markets that are open and highest volume of trade is done. For example, Australia and Japan trading sessions overlapped 8-1 EST. At the time that traders can successfully trade AUD / JPY currency pair.

Tip 16. Choosing a day for trading.
Recomendation is often taken as an optional thing, because all people know that the Forex market open 24 hours a day 7 days a week. However, choosing the time to trade can make the difference between success and expectations of trade.
This proven and highly recommended not to trade on Monday, when the market just wake up and the first is to create a "probation steps" to form a new or confirm a trend at this time, and on Friday afternoon, during the closing of large volume of trade. It is best to trade on Tuesday, Wednesday and Thursday.

Tip 17. Fibonacci and learn about how to use them for trading.
Fibonacci can be very helpful in trading, even using some of the study, for example, to determine the best way out, can bring new merchants to the ends of the trade.

Tip 18. Always ensure that the signaling bar / candle on the chart is fully formed and closed before you enter the trade.
A trading rule: "Always trade what you see, not what you want to see" the best explanation is here

Tip 19. If you ask other people for advice about how and when to trade
in other words, choose to live depends on the trading signals from other traders, make sure you do it for your benefit, not disaster. If you use a signal like that to know how other traders do analysis and study on the price - you are on the right track and soon you will be able to perform their own analysis.
But if you're just blindly following recommendations and your task is only to press the correct button ... think again.

Tip 20. Using a highly leveraged account comes at the cost.
Akan, of course, to give more teeth to financial traders trade, but for experienced traders higher leverage, and, in fact, the Forex can leverage the disaster. When a registered trader to leverage the high accuracy without knowing how to use it to benefit himself, he just signed up for the additional risks that multiply with the higher leverage in the tight "friendly" proportion.

Forex Tips 1 - 10

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Tip 1. Gamblers go to casino. All out, spontaneous actions in Forex trading - are a part of pure gambling.
Any attempt to trade without analysis and market studies with the same game. A fun game except when you lose real money ...

Tip 2. Investment money is never a real Forex account until you practice on Forex Demo Account!
Allow at least 2 weeks for the demo trading. Consider this: 90% beginners fail to succeed in the real money market only because of lack of knowledge, training and discipline. Those remaining 10% of traders have been successful sharpening and shaping their skills on demo accounts for years before entering the real market.A demo account to start practice with the can, for example, from FXGame Oanda.

Tip 3. Go with the trend!
Trend is your friend. Trade with the trend to maximize your opportunities for success. Trade against the trend will not "kill" the market, but will require more attention, nerves and sharp skills to rich trading goals.

Tip 4. Always look at the time that is greater than the one that has chosen to trade.
Provide a larger picture of market price movements and so help determine clear trends. For example, when trading in 15 minutes time, see chart 1 hour; trade per day will need to get a picture of daily, weekly price movements.

If the trends that are difficult to spot - choose a bigger time. Up and down market patterns are always present. Always make sure you know the dominant trend, unless you are a scalper. Scalpers do not need to spend their time studying big trends, what is happening in the market here and now (during 5-10 minute time frame) should be only for the benefit of the Forex scalper.

Tip 5. Risk no more than 2-3% of the total trading account.
One important difference between a successful and an unsuccessful trader is the first that is capable of enduring under the unfavorable conditions in the market, while an unsuccessful trader will blow his account after 5-10 do not trade on line.
Even with the same trading system 2 traders can get opposite results in the long term. The difference will be back in the money management approach. To introduce you to the management of money, let's get one fact: losing 50% of total account requires making 100% return of the remaining money only to restore the original balance.

Tip 6. Putting emotions down. Trade calm.
Do not try to revenge after losing their jobs. Do not be greedy by adding lots of positions when winning.
Overreaction blocks clear thinking and as a result, it will cost you money. You can shake Overtrading money management and dramatically increase trading risks.

Tip 7. Choosing the right time for you.
Choosing wise means that you feel comfortable and have enough time to analyze the market, and close the orders etc. Some people cannot wait for hours to make the price to move,
they act like it is smaller and the period of time. Conversely, for others 10-15 minutes is a hustle to be able to make informed decisions.

Tip 8. Trade or not is a position other than standing.
If in doubt - stay out. If it is not clear where the market will move - do not trade. In this case saving present capital and actually is better than the option and risk losing money.

Tip 9. Learn to use protective stops. Respect them and not moving.
Hope that the market will turn the direction you are a false hope. With the move stop loss traders the opportunity to further increase that ended with losses far greater.

When the loss of trade to hold too long, even if funds permit, traders as a rule are very reluctant to accept big losses, thus often continue to "hope for the best." Meanwhile, invest the money stuck in a trade that is open for a period not known (even weeks and months) and cannot be used to open a new position. Not working money - dead money. This will also generate interest payment remains open to hold the position.

Tip 10. "Keep it simple, stupid" - applies to indicators, signals and trading strategies.
Too much information will make a controversial picture when to trade and when not. To avoid confusion, but many make a simple method of trading Forex.

Strategy

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A few things you should learn about Forex trading if you want to make some real money.

Follow Trends
No matter how many factors you take into account, it still comes down to a degree of guesswork. There is a great deal of money to be made from simply following already existing, reliable trends than jumping in and out as it reverses.

Have a Trading Plan
Your plan doesn't have to be very precise. You have to set some limits for yourself. It takes a great deal of discipline to be a successful FOREX trader. Frequently you'll feel your emotions start to play into and affect your decisions, but you've got to do what's ultimately best, think rationally and sell when you need to sell.

Employ a Trading Program
FOREX trading programs are slowly becoming the new standard of trading, with over 30% of all traders currently using them now in 2009. These are programs which automatically trade for you by analyzing real time market data and reacting accordingly. They are equally as effective for beginners as well as experienced traderss.

Leverage

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FOREX is associated with the development of each lot and a lot of 100,000 units consisting of a specific foreign currency. To buy a lot of foreign exchange is needed and can run into hundreds of thousands of dollars which means that the small investor is left from the commotion. For this purpose the concept of leverage is launched in FOREX trading.

Leverage backed with credit, such as a margin account, is very common. Usually the leverage in the margined account is collateralized by the initial deposit made by you in that account. If the value of the trade goes down significantly, the broker may ask you to either deposit more cash, or sell a portion of your holding. Leverage, expressed as a ratio between total capital available to actual capital, is the amount of money a broker will lend you for trading. For example, a ratio of 100:1 means your broker would lend you $100 for every $1 of actual capital. Many brokerages offer as much as 250:1.

Margin requirements and interest vary among broker/dealers. The amount of leverage you use will depend on your broker and what you feel comfortable with. You can get leverage from a high as 1% with some brokers. This means you can control $100,000 with the investment of only $1,000. The broker sets a minimum account size also known as account margin or initial investment. Once you have deposited the required sum you will be able to trade in the FOREX market.

The online FOREX market has further reduced the requirement of the margin amount to a great extent and it is now reduced to couple of hundred dollars from the initial hundreds of thousands dollars. The small investor in a FOREX market can earn due to the presence of the leverage accounts in the online FOREX market. The effect of the leverage accounts actually enables the small investor to earn huge returns like if he invests $300 on 1% leverage he gets to operate the FOREX of $30,000. The leverage is the key to make this FOREX trade profitable for the investors in true sense and till it is there it will continue to attract thousands and thousands of people.

Forex Demo Account

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Forex demo account allows you to practice trading Forex without financial loss. Many online Forex brokers offer the possibility to trade in a demo account to get to the platform. A demo account is a simulated trading account, sometimes with the amount of virtual money. Traders may try to test the trading platform and see if they are comfortable to trade under the condition of the broker before investing real money in it.

Most demo accounts can be downloaded for free. With the right Forex demo account software, learning the Forex trading strategies will be much easier. It is also good to hire a broker to give advice and handle many aspects of the foreign exchange trading that you do not understand to practice Forex.

Forex demo accounts can reflect the real-time market movements and allow traders to test the conditions they would be trading with. Forex demo accounts use historical rates during week-ends, when the currency trading markets are closed. A Forex demo account broker will guide you in the right directions and assist in all aspects of the Forex demo account. Learning the market can be very challenging and it is very important to understand the risks involved. Research, ask questions, and make sure you understand the entire concept of foreign exchange before you make any investments.

Generally Forex demo account has the same capabilities of the real account, the only difference between them is that the real account is with real money and the practice account is with virtual money. Once you have sharpened your skills, you can begin to move on to making real money with Forex live accounts.

Rules of Forex

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FOREX traders should use the free demo account to study FOREX trading

Beginners must patiently study. Beginner FOREX traders may first test the demo account where they can study process, develop individual FOREX trading strategy. If their capability of making profit enhances day by day, this indicate that a beginner FOREX trader might draw up the real FOREX trading account.

Use stop loss to reduce risk

FOREX trader must be able to afford taking loss. Using the stop loss will prevent any further loss, the affordable loss depends on the account available margin situation. If there is a stop loss, FOREX traders should not feel upset because he or she has prevented the loss from getting worse.

The account margin must be sufficient

The lesser the trading margin, the bigger the risk, therefore beginners must avoid letting the account margin be too little. Such account amount does not allow any mistake to happen. Even a well-experienced FOREX trader can make mistakes.

Record the trading details

The beginner should record all the trading details, whether there is certain news or other reasons that influence profit and loss. FOREX traders can not remember the history of every trade, therefore recording is helpful in enhancing FOREX trading skills.

Do not enter the FOREX market after making loss

Do not eagerly open a new reverse market position in order to recoup from loss. This will only make the situation worse. Do not play with the FOREX market by guessing.

Software

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FOREX software is designed for dealing in the trade of foreign currencies. Most FOREX trading software comes with built in signaling capabilities, so you know when it's the right time to buy or sell. Some trading platforms enable traders to execute automatically 24 hours a day.

If you decide to use FOREX trading software, there is no doubt that it will guarantee profits or not result in losses from trading. Trading currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. When it comes to trading, there is so substitute for accurate and instantaneous information.

Software finds price patterns that fulfill user-defined performance statistics and risk/reward parameters by searching historical data in a fully automated way. It is equipped with an intuitive interface where its user can specify data files and the performance criteria the price patterns must fulfill. User is not required to write any code.

There are many companies that create FOREX trading software. This a useful resource to read various FOREX software reviews - http://www.eforexsoftware.org/

Essential Aspects of Forex

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Essential aspects of foreign currency market. Understanding these sides of trading is crucial for arranging your FOREX trading experience.

Fundamental Analysis is the process of market analysis. Fundamental analysis can be a part of any financial planning or forecasting. FOREX fundamental analysis deals with interest rates, central banks decisions, global industrial, economical, political and weather news. Fundamental analysis is the most natural way of making FOREX market forecasts.

Technical analysis relies only on market data numbers - quotes, charts, indicators, volume of supply and demand, etc. The main idea is the dependence of the future market technical data on the past market technical data.

Money Management is a set of rules which you develop to set your own trading style and amount of money you have for trading. Money management plays very important role in getting profits out of Forex.

FOREX Trading Psychology is crucial. You need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions.

Forex Brokerage is the last essential aspect. Every Forex trader like any other professional needs tools to trade. One of these tools is a Forex broker, or an on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market.

Glossary

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A
Ask the price at which a trader will buy a currency. Also known as the offer, it’s the price a seller is willing to sell at.

B
Base Currency the currency used as the base to quote a pair. For instance in the EURUSD pair, the EUR is the base currency, in the USDJPY, the USD is the base currency.
Bid the price at which a trader will sell a currency.
Broker an agent who handles investors' orders to buy and sell currency. In the FOREX business, no commission is charged as the broker makes money through the spread.

C
Call Rate the overnight interbank interest rate.
Cash Market the market for the purchase and sale of physical currencies.
Central Bank the institution that manages a country’s monetary policy.
Convertible Currency currency which can be freely exchanged for other currencies or gold without special authorization from the appropriate central bank.
Counter party the customer or the bank with whom a foreign deal is made.
Cross Rate an exchange rate between two currencies, usually constructed from the individual exchange rates of the two currencies, measured against the United States dollar.

D
Day Trading refers to opening and closing the same position or positions within one day's trading.

F
Federal Reserve (Fed) The Central Bank of the United States.
Fixed Exchange Rate official rate set by monetary authorities for one or more currencies. In practice, even fixed exchange rates are allowed to fluctuate between definite upper and lower bands, leading to intervention.
Flat/Square to be neither long nor short is the same as to be flat or square. One would have a flat book if he has no positions or if all the positions cancel each other out.
Floating Rate Interest as opposed to a fixed rate, the interest rate on this type of deal will fluctuate with market rates or benchmark rates. One example of a floating rate interest is a standard mortgage.
Foreign Exchange Swap transaction which involves the actual exchange of two currencies (principal amount only) on a specific date at a rate agreed at the time of the conclusion of the contract (short leg), at a date further in the future at a rate agreed at the time of the contract (the long leg).

G
GTC Good Till Cancelled. An order left with a Dealer to buy or sell at a fixed price. The order remains in place until it is cancelled by the client.

H
Hedging the practice of undertaking one investment activity in order to protect against loss in another, e.g. selling short to nullify a previous purchase, or buying long to offset a previous short sale. While hedges reduce potential losses, they also tend to reduce potential profits.

I
Initial Margin the required initial deposit of collateral to enter into a position as a guarantee on future performance.
Interbank Rates the Foreign Exchange rates at which large international banks quote other large international banks.

L
Limit Order an order to buy at or below a specified price or to sell at or above a specified price.
Long Position a market position where the Client has bought a currency he previously did not hold own.

M
Margin customers must deposit funds as collateral to cover any potential losses from adverse movements in prices.
Market Maker a dealer who supplies prices and is prepared to buy or sell at those stated bid and ask prices. A market maker runs a trading book.

O
Offer the price or rate that a seller is prepared to sell at.
Open Position any deal which has not been settled by physical payment or reversed by an equal and opposite deal for the same value date.

P
Pip (or Points) the term used in currency market to represent the smallest incremental move an exchange rate can make.

R
Resistance a price level at which you would expect selling to take place.
Risk Capital the amount of money that an individual can afford to invest, which, if lost would not affect his or her lifestyle.

S
Settlement actual physical exchange of one currency for another.
Spot a transaction that occurs immediately, but the funds will usually change hands within two days after deal is struck.
Spread the difference between the bid and offer (ask) prices; used to measure market liquidity. Narrower spreads usually signify high liquidity.

T
Two-Way Price rates for which both a bid and offer are quoted.

U
US Prime Rate the rate at which US banks will lend to their prime corporate customers.

V
Value Date settlement date of a spot or forward deal.
Volatility a statistical measure of a market or a security's price movements over time. It is calculated by using standard deviation. Associated with high volatility is a high degree of risk.

FAQ about Forex

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How does Forex trading work?

Forex is traded in pairs: USD/Euro, USD/JPY, Euro/JPY, GBP/CHF, and CAD/USD. It is considered as Over-the-Counter or Inter-bank as trades are done between two counterparts via electronic network or telephone connections. Forex works truly as a 24-hour market. Everyday Forex trade begins when the financial centers in Sydney start their day, and moves around the globe to Tokyo, London, and then New York. Traders can always response to the market regardless of the local time.

What are the major traded currencies?

Major traded currencies are United States dollars, Australian Dollars, Japanese Yens, British Pounds, Swiss Francs, Canadian Dollars, and the Euro Dollars.

What are the working hours of Forex market?

Forex market is open from 22:00 GMT Sunday (opening of Australia trading session) till 22:00 GMT Friday (closing of USA trading session).

How much funds do I need to open an account?

The minimum deposit to open a standard account is US$2,500. A minimum transaction size is US$100,000 with a minimum margin deposit of $2,500 (at 100:1 leverage).

What is margin?

Margin is money you need to have in your broker account to secure your open position. Different brokers require different amount of margin money to keep your positions open.

What is leverage?

Leverage is a loan that is provided to an investor by the broker that is handling his or her Forex account. When an investor decides to invest in the Forex market, he or she must first open up a margin account with a broker.

Who trades Forex?

The trading of foreign exchange has been dominated by the large international banks. Corporations and money managers have always traded their forex with their preferred bank, which then covers the position in the Interbank market. However, with the recent availability of internet based trading systems there has been a rapid growth in the number of private individuals trading forex.

Fact about Forex

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Some basic facts to help you understand what FOREX is about.

FOREX is a spot market, where foreign currencies are traded - bought and sold for profit.
FOREX is a worldwide currency speculation arena with no centralized place for trading and exchange.
FOREX is a huge market with trillions dollars turnover a day and the largest investors are banks, hedge funds, investment companies and so on.
FOREX is open to individual retail investors 'so-called Forex traders through the services of FORE' brokerage companies that provide an access to the currency exchange market. They buy and sell for their clients.
FOREX is a 24 hour market that is traded every day all year round, except for holidays.
FOREX allows trading over 150 foreign currency pairs, among which the most traded are: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, USDCAD and GBPJPY.
FOREX trading is based on technical (price, charts) and fundamental (news, economic events) analysis.

Main Forex

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Do you want to become a successful Forex trader? This site will help you get started with Forex trading from scratch. Here you will find lots of information about the Forex market for beginners. Read interesting articles about the Forex to help you on the road to become a FOREX trader.

Forex trading should be considered high risk, but with better risk management Forex it is possible to produce some excellent return on your investment. It is an ideal investment alternative that is less correlation with the global market share. We have a lot of information on your Web site to understand how it works.

Forex this here is a guide to help you learn, trade and investment in the Forex market. It is designed to be a one-stop shop for Forex trading, and to provide a variety of tools, information and resources for all levels of traders and investors. The aim is to provide the best service available in the Forex market.

Market Participants

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Private Banks play two roles in the Forex market. Firstly they facilitate transactions between two parties wishing to exchange currency, and secondly they speculate by buying and selling currencies. It has been estimated that international banks generate 70% of their revenues from currency speculation.
Governments through their central banks also participate in the Forex market. Central banks such as the US Federal Reserve buy and sell currency in order to try to stabilize their own currency and therefore strengthen or weaken their country’s financial position.

The Forex market is so large and is composed of so many participants that no one player, not even a government central bank, can control the market.
Forex is not a “market” in the traditional sense. There is no centralised location for trading and there is no “exchange” like stocks or futures. Trading occurs over the phone and through computer terminals at many locations throughout the world. The bulk of the trading is done between approximately 300 large international banks, which process transactions for large companies, governments and their own accounts.
These banks are continually providing prices for each other and the broader market as a buy or “bid” and a sell or “ask” The most recent quote from one of these banks is considered the markets current price for that currency.

The Purpose of Forex

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People who trade Forex contracts may do so for a variety of reasons. Some trade for speculation, that is, with a view to profiting from fluctuations in the price or value of the underlying instrument or security. For example, Forex traders may be short-term investors who are looking to profit from intra-day and overnight market movements in the underlying currency. Forex traders may have no need to sell or purchase the underlying currency themselves, but may instead be looking to profit from market movements in the currency concerned.
Others trade Forex to hedge their exposures to the underlying currency. Foreign exchange exposures may arise from a number of different activities.

• Companies or individuals, that are dependent on overseas trade, are exposed to currency risk. This can be to purchase (or sell) physical commodities (such as machinery) or even financial products (such as investing in securities listed on an international stock exchange).
• An exporter who sells its product priced in foreign currency has the risk that if the value of that foreign currency falls then the revenues in the exporter’s home currency will be lower; or
• An importer who buys goods priced in foreign currency has the risk that the foreign currency will appreciate thereby making the cost, in local currency terms, greater than expected.
• A person going on a holiday to another country has the risk that if that country’s currency appreciates against their own, their trip will be more expensive.
In each of the above examples, the person or the company is exposed to currency risk. Currency risk is the risk that arises from international business which may be adversely affected by fluctuations in exchange rates. The Forex market allows individuals and corporations the ability to buy or sell foreign exchange products to manage these risks.

The History of Forex

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The Forex market is a cash inter-bank or inter-dealer market, which was established in 1971 when floating exchange rates began to appear. The foreign exchange market is huge in comparison to other markets. For example, the average daily trading volume of US Treasury Bonds is $300 billion and the US stock market has an average daily volume of less than $10 billion. Ten years ago the Wall Street Journal estimated the daily trading volume in the Forex market to be in excess of $1 trillion. Today that figure has grown to exceed $1.8 trillion a day.

Prior to 1971 an agreement called the Bretton Woods Agreement prevented speculation in the currency markets. The Bretton Woods Agreement was set up in 1944 with the aim of stabilising international currencies and preventing money fleeing across nations. This agreement fixed all national currencies against the dollar and set the dollar at a rate of $35 per ounce of gold. Prior to this agreement the gold exchange standard had been used since 1876. The gold standard used gold to back each currency and thus prevented kings and rulers from arbitrarily debasing money and triggering inflation.

The gold exchange standard had its own problems however. As an economy grew it would import goods from overseas until it ran its gold reverses down. As a result the country’s money supply would shrink resulting in interest rates rising and a slowing of economic activity to the extent that a recession would occur. Eventually the recession would cause prices of goods to fall so low that they appeared attractive to other nations.

This in turn led to an inflow of gold back into the economy and the resulting increase in money supply saw interest rates fall and the economy strengthen. These boom-bust patterns prevailed throughout the world during the gold exchange standard years until the outbreak of World War I which interrupted the free flow of trade and thus the movement of gold.

After the war the Bretton Woods Agreement was established, where participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar. A rate was also used to value the dollar in relation to gold.

Countries were prohibited from devaluing their currency to improve their trade position by more than 10%. Following World War II international trade expanded rapidly due to post-war construction and this resulted in massive movements of capital. This de-stabilised the foreign exchange rates that had been set-up by the Bretton Woods Agreement.

The agreement was finally abandoned in 1971, and the US dollar was no longer convertible to gold. By 1973, currencies of the major industrialised nations became more freely floating, controlled mainly by the forces of supply and demand. Prices were set, with volumes, speed and price volatility all increasing during the 1970’s.

This led to new financial instruments, market deregulation and open trade. It also led to a rise in the power of speculators.

In the 1980’s the movement of money across borders accelerated with the advent of computers and the market became a continuum, trading through the Asian, European and American time zones. Large banks created dealing rooms where hundreds of millions of dollars, pounds, euros and yen were exchanged in a matter on minutes.

Today electronic brokers account for 70% of the $1.8 trillion a day Forex market in London and single trades for tens of millions of dollars are priced in seconds. The market has changed dramatically with most international financial transactions being carried out not to buy and sell goods but to speculate on the market with the aim of most dealers to make money out of money.
London has grown to become the world’s leading international financial centre and is the world’s largest Forex market. This arose not only due to its location, operating during the Asian and American markets, but also due to the creation of the Eurodollar market. The Eurodollar market was created during the 1950’s when Russia’s oil revenue, all in US dollars, was deposited outside the US in fear of being frozen by US authorities. This created a large pool of US dollars that were outside the control of the US. These vast cash reserves were very attractive to foreign investors as they had far less regulations and offered higher yields.

Today London continues to grow as more and more American and European banks come to the city to establish their regional headquarters. The sizes dealt with in these markets are huge and the smaller banks, commercial hedgers and private investors hardly ever have direct access to this liquid and competitive market, either because they fail to meet credit criteria or because their transaction sizes are too small. But today market makers are allowed to break down the large inter-bank units and offer small traders the opportunity to buy or sell any number of these smaller units (lots).

What is Forex?

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FOREX is the foreign exchange market or currency market. FOREX is a market where one currency for another sale. This is the biggest market in the world. Some of the participants in this market is that you want to exchange foreign currency for their own, like multinational corporations which must pay salaries and other costs in various countries. However, most of the currency market traders. Their fate in the exchange rate movement, like many other people will speculate on the movement of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.
Forex is an over-the-counter (“OTC”) derivative. “Foreign exchange” generally refers to trading in foreign exchange products (currency) in the spot (cash) markets. Margin foreign exchange products can be differentiated from foreign currency as they allow the investor an opportunity to trade foreign exchange on a margined basis as opposed to paying for the full value of the currency. In other words, investors are required to lodge funds as security (initial margins) and to cover all net debit adverse market movement (variation margins) i.e. positions are monitored on a mark-to-market basis to account for any market movements. When clients are making a loss to an extent that they no longer meet the margin requirements they are required to “top up” their accounts or to “close out” their position.

Foreign exchange is essentially about exchanging one currency for another at an agreed rate. Accordingly, in every exchange rate quotation, there are two currencies. The exchange rate is the price of one currency (the “base” currency) in terms of another currency (the “terms” currency) such as the price of the Australian dollar in terms of the US dollar. For example, if the current exchange rate for the Australian dollar as against the US dollar is AUD/USD 0.7500, this means that one Australian dollar is equal to, or can be exchanged for 75 US cents.

The most traded currencies in FOREX are Euro, US dollar, Swiss Frank, British Pound and Japanese Yen. Trading is not limited to those currencies; FOREX offers variety of currencies one can trade.

FOREX trading is done online. A person finds a FOREX broker, opens a trading account with the broker and deposits money. FOREX broker provides to a trader so called FOREX trading platform. It is an application, a working environment, where a trader buys and sells currencies, dealing online, he speculates to make money on the difference of currency rates.

In FOREX currencies are traded in pairs: EUR/USD, GBP/USD, AUD/JPY, USD/CHF.

Introduction to Forex

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This Article shows you the basic fundamentals in trading the Forex market. Any financial product information contained in this article is general information only and has been prepared without considering your objectives, financial situation or needs.
A prospective investor needs to consider, with or without the assistance of a financial Adviser, whether the advice is appropriate in light of the particular investment needs, objectives and financial circumstances of the prospective investor.
Pacific Investor Group believes that any information or advice (including any financial product advice) contained in this presentation was accurate when issued by Pacific Investor Group however, does not warrant its accuracy or reliability.

Before entering into a Forex transaction, you should seek independent advice to ensure that it is appropriate for your particular financial objectives, needs and circumstances. We recommend that you also obtain independent taxation and accounting advice in relation to the impact of any Forex transaction foreign exchange gains and losses on your particular financial situation. The taxation consequences of Forex transactions can be complex and will differ for each individual’s financial circumstances and your tax adviser should be consulted prior to entering into a Forex transaction.
Dealing in Forex is a challenging opportunity where above average returns are achievable to educate and experienced investors who are willing to take above average risks. Before deciding to participate in Forex trading, you should carefully consider your investment objectives, level of experience and risk profile. Most importantly do not risk money you cannot afford to lose.
There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.
The leveraged nature of Forex means that any market movement will have a direct effect on your funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of your initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses.
More information about some of the inherent risks of Forex trading is available further in this website.

Risk Warning Notice for Forex Trading

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This Risk Warning Notice is provided to you in compliance with the rules of the Financial Services Authority (FSA).
This warning cannot and does not disclose all the risks and other significant aspects of forex trading. You should not engage in forex trading unless you understand the nature of forex trading, how they work, how you make a profit or a loss and the extent of your exposure to risk and loss. Note in particular that your losses can be unlimited and no deposit or other amount you have paid (such as Initial Margin or Variation Margin) will limit your losses. You should be satisfied that forex trading is suitable for you in the light of your circumstances and financial position.
Although forex trading can be utilized for the management of investment risk, forex trading is unsuitable for many investors.
If you are in any doubt seek professional advice.

General
When you engage in forex trading you are placing a trade in relation to movements of prices set by GFT Global Markets. Our prices relate to prices of the underlying. Our Execution Policy gives further details in relation to our prices. We can change our prices at any time, in particular having regard to changes in the underlying to which our prices relate.
Whether you make a profit or a loss depends on how our price has moved between when you opened your trade and when you closed your trade.
Our terms and conditions clarify how you make a profit or a loss.
Your trades with us will be subject to our terms and conditions. It is in your own best interests to read and understand them before you engage in forex trading with us.
Forex trading carries a high degree of risk. The “gearing” or “leverage” available in forex trading (i.e. the funds we require at the outset compared to the size of trade you can place) means that a small deposit (we call this Initial Margin or Margin) can lead to large losses as well as gains. It also means that a relatively small movement can lead to a proportionately much larger movement in the size of any loss or profit can work against you as well as for you.
Forex trades are subject to payment of Variation Margin. If the market moves against you, you may be called upon to pay substantial additional Variation Margin at short notice to maintain your Open positions. If you fail to do so within the time required, your Open positions may be closed at a loss and you will be responsible for the all losses.
Your losses may be unlimited. You may lose all amounts you deposit with us such as Initial Margin (we also call this Margin) or Variation Margin.
You have to pay us all losses you sustain as well as all other amounts payable under our terms and conditions such as interest and costs. If you decide to engage forex trading, you must accept this degree of risk.
No credit is extended to you. Neither a variation margin credit allocation nor an initial margin credit allocation constitutes a credit facility and neither of them will limit your losses or liability. The amount you are prepared to risk should include any variation margin credit allocation and any initial margin credit allocation.
Forex trades can only be settled in cash.
As mentioned above, our prices relate to prices of the underlying; however, you do not acquire the underlying nor any rights or delivery obligations in relation to it.
Forex trades are not traded on or under the rules of a recognized or designated investment exchange. Consequently, engaging forex trading may expose you to substantially greater risks than investments which are so traded.
Forex trades are legally enforceable. This means that, for example, we can take legal action to recover money you owe us. The potential for profit or loss from transactions on foreign markets or in foreign denominated contracts may be affected by fluctuations in foreign exchange rates.
Interest rates may affect whether you make a profit or a loss.

Money Management

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Is there a secret to becoming a successful trader?

There is a method that all successful traders use, and it’s no secret. It’s called money management.

Money management is not some vague industry lingo – it simply means the knowledge and skill of managing your Forex trading account. As simple as that may seem, it’s the key to a long and successful trading career. And yet it is often forgotten or neglected in the thrill of the trade. We’d like to take this opportunity to lay out some ground rules by which you can effectively manage your account.

Don’t go looking for the Big Win; it will most likely result in a big loss. Successful trading means consistent trading, where small wins amount to large long term profits. Never assume that all your trades will be profitable, and plan on losses.

You should only risk a small percentage of your total account balance on each trade. This simply minimizes your risk, so that even if you end up losing your entire investment on a trade, it doesn’t have a critical effect on your account balance. The recommended amount is 2% of your account balance per trade. More aggressive traders go as high as 5%, but never higher than that. It is a very important rule to keep, since the lower your account balance drops, the harder it
is to rebuild it.

Using Limit Orders
Learn to use the Stop Loss and Take Profit orders effectively. These orders protect your investment and realize your profits. They are very simple tools that can make all the difference to your account balance.

Size of Trades
You are suggested to open small trades, because in the case of a losing trade, you can then open the opposite trade with a bigger investment or higher leverage, thus compensating for losses.

Practice with Virtual Money
Use virtual money mode for practice. One of the unique features is that platform provides you with a practice environment. Virtual money mode works exactly the same as real trading mode and uses the same real time rates, with the small difference of no risk involved. We recommend using the practice mode to get to know the platform and gain Forex trading experience.

And even after you’ve begun trading with real money, it is the perfect place to try out your trading strategies. There is no point in risking your money to test out a possible theory, when you can do so with the same success minus the risk. After seeing that your strategy is consistently successful with virtual money, you can try
it out for real.

Remember, money management is very simple to master, but not as simple to keep up. Once you’ve developed the money management system that works for you, make sure to stick with it and don’t let your emotions get in the way of long term profit, even if it means absorbing short term losses.

Hedging Risks and Rewards

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Forex trading is a risky business. This chapter will explain the usage of Stop Loss (SL) and Take Profit (TP) orders. These are used for hedging your risks and rewards, realizing your profits and minimizing your losses.

Many place an automatic Stop Loss order on all your trades to prevent you from losing more than you’ve invested. If the rate of your open trade drops below what’s covered by your investment, the trade is closed by the automatic Stop Loss. This means the maximum amount you can lose on a trade is almost always limited to the initial investment of the trade.

Still, there is no reason why you should wait until you lose your entire investment to close the trade. By setting a Stop Loss order you make sure that the value of your trade doesn’t drop below a certain level. This way you control the maximum amount that you are willing to lose on a trade, without having to monitor each trade around the clock.

Take Profit orders are similar to stop loss orders, only referring to profits. Take Profit orders make sure that once your trade reaches a certain level of profit it ill be closed.

For instance, imagine that you’ve opened a Long EUR/USD trade for at the rate of 1.5400. After a few hours the rate rises to 1.5500, but an hour later drops to 1.5300. Without a Take Profit order, you might miss the rise in the rate, and end up with a loss on your hands.

If you had set a Take Profit order, the potential profit of the trade would have been realized, without you having to monitor the trade around the clock.

Remember, Stop Loss and Take Profit orders are very simple tools that can make the difference between a successful trading career and a big hole in your pocket. Consider using these orders with every trade that you make.

A Simple Trade Example

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Are you ready? It's time to trade!

Here is a to‐do list of actions to be taken as you open a trade:
‐ Identify the pair to buy/sell
‐ Decide on the initial investment amount
‐ Choose the appropriate leverage
‐ Consider applying trade limits (covered in the next chapter)
‐ Open trade

Let’s say that after spending some quality time on gazing at the charts of several currencies, you’ve concluded that:
1) The EUR is trending up
2) The USD is trending down
Now, what is the reasonable decision based on this conclusion?
Clearly you can profit by first selling USD and buying EUR, and then buying cheaper USD and sell expensive EUR. We could do this by buying and then selling the EUR/USD currency pair.
A reminder ‐ buying is done at 'Ask' price, while selling is done at the “Bid” price.
Imagine that you bought $100 worth of EUR/USD with a leverage of 1:100 at the exchange rate of 1.5461. The details of your trade are:
Investment $100
Leverage 1:100
Units sold 10,000
EUR/USD (Ask) 1.5461

In plain English, what you’ve just done is bought (100X100=) 10,000 Units of EUR/USD, which at that specific rate represents 1.5461 USD per 1EUR.

Now, let’s assume that at the end of the day, or possibly even a few minutes later, the EUR/USD rate has risen to 1.5538. You sell those 10,000 Euro/USD Units at the new rate of 1.5538 and get $177 back.

This means that this seemingly insignificant fluctuation in the rate allows you to cash in $77 from an initial investment of $100.

In other words you just made 77% profit on your investment, thanks to the movement in the pair's quote.

On the example trade that we’ve just seen, your risk and reward was unlimited, and the risk was limited which is good if you are very certain regarding your decisions.

Tactical usage of Leverage

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If you’ve been at all exposed to the world of Forex you’ve probably heard the word “Leverage” being tossed around. But what exactly is “Leverage”?

Leverage is a very important part of Forex trading, and it’s critical that you know exactly how it works and how to use it. It is the term Forex traders use to refer to the ratio of invested amount related to the trade's actual value.

Forex brokers usually provide their customers with the option to trade on borrowed capital, so that traders don’t have to invest tens of thousands of dollars for the chance to make any real profit. When you trade at a leverage of 1:100, or X100, it means that for every $1 that you invest in the market, the broker invests $100. As a result, you can control an amount of $10,000 by investing $100.

It probably won’t surprise you when we say that with greater opportunity for profit comes greater risk. Just like slight fluctuations in currency rates can make you significant amounts of money, it can also cause you to lose your money very quickly. The higher the leverage, the larger the profit that you stand to make and the quicker you might lose your investment. A leverage of 1:400 can make you more money than a leverage of 1:100, but it also puts your initial investment at more risk.

If you trade with a leverage of 1:100 the market would have to move 100 pips against you for your position to be wiped out. On the other hand, if you trade with a leverage of 1:400 the market would only have to move 25 points against you for your position to be wiped out.

We recommend first opening a position with a low 1:100 Leverage, and only once you see that you’ve hit a strong trend, consider opening one with a 1:400 leverage.
The Ratio between Minimal Lot Size, Trade Size and Leverage Fundamentally, the minimal lot size for a trade is $10,000, thus the leverage limitations are set according to the amount you choose to trade:

Trade Size Minimal Leverage Lot
25 400 10,000
50 200 10,000
100 100 10,000

The advantage of trading with Leverage is that while your profits potential is virtually infinite, at eToro your loss is limited to the amount of your initial investment. Once the rate drops below the rate covered by your investment, the trade is automatically closed. That is done through an automatic Stop Loss – explained in the next chapter.

Remember, Leverage can be a trader’s best friend when used carefully, and his worst enemy when used recklessly. It is a great tool for increasing profits, in fact private traders rarely trade without it, but you should always keep in mind that the higher the leverage is – the higher the risk level involved.

The Trend is Your Friend

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Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future.

Although this may seem pretty basic, being able to identify when a pair is in a trend and when it isn't will help you to increase your chances to profit consistently in the Forex market.

When you can identify a trend, you can estimate what direction the rate of a currency pair is going to go in. You should exploit the direction of the trend you identify by placing a trade in that direction.

If it’s an uptrend, meaning that the rate is increasing, buying the currency pair will give you a better probability for profit. If it’s a downtrend, meaning that the rate is decreasing, selling the currency pair will give you a better chance of making
money.

How do I identify a trend? What are the characteristics of a trend?

The simplest way to identify a trend is through the distinct patterns that the price forms. These can tell you if the market is moving in an uptrend or downtrend.

Identifying a Forex Trend
When a trend is taking place in a Forex pair, the price movements start to form peaks and valleys in the chart of that pair, which are easily identified. In an uptrend, the price movements form a series of higher peaks and higher valleys.(Higher Highs and Higher Lows.)

Profitability

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It doesn’t take a financial genius to figure out that the biggest attraction of any market, or any financial venture for that matter, is the opportunity of profit. In the Forex market, profitability is expressed in a number of ways.

First of all, just to set the record straight, you don’t have to be a millionaire to trade Forex. Unlike most financial markets, the Forex market allows you to start trading with relatively low initial capital. At eToro, you can start trading Forex with as little as $25!

Right about now you’re probably asking yourself: “What chance do I have of profiting with such a low initial investment?” The Forex market doesn’t require large initial investments because it allows you to use leveraged trading. Leveraged trading lets you open positions for tens of thousands of dollars while investing sums as small as $25. This means that Forex trading has the profit (and loss) potential of tens and even hundreds of percent a day!

What is also unique about the Forex market is that any sort of movement is an opportunity to trade. Whether a currency is crashing or soaring, there is always room for speculation, since you always have the option of buying or selling the currency of your choice. Unlike the stock market, you are not limited to speculating on rising stocks, and a falling market is just as good for business as a rising market.

Having said all that, it is important to remember that as profitable as the Forex market is, it still carries all the risks involved with financial trading. You should always be aware of the risk, and never risk money that you can’t afford to lose.

Why Forex?

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If you are reading this guide, you have most likely taken some sort of interest in the Forex market. But what does the Forex market have to offer you?

Accessibility – It’s no wonder that the Forex market has the trading volume of 3 trillion a day ‐ all anyone needs to take part in the action is a computer with an internet connection.
24 Hour Market ‐ The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop. No need to bite your fingernails waiting for the opening bell.
Narrow Focus – Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no rooms for confusion, so even though the market is huge, it’s quite easy to get a clear picture of what’s happening.
Liquidity ‐ The foreign exchange market is the largest financial market in the world with a daily turnover of just over $3 trillion! Now apart from being a really cool statistic, the sheer massive scope of the Forex market is also one of its biggest advantages. The enormous volume of daily trades makes it the most liquid market in the world, which basically means that under normal market conditions you can buy and sell currency as you please. You can never be in a jam for currency to buy or stuck with currency that you can’t unload.
The Market Can’t Be Cornered ‐ The colossal size of the Forex market also makes sure that no one can corner the market. Even banks don’t have enough pull to really control the market for a long period of time, which makes it a great place for the little guy to make a move.

General Requirements

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All NFA Members must comply with the federal privacy laws and NFA's business continuity and disaster recovery requirements.

Privacy Rules
The CFTC's regulations restrict a Member's right to disclose nonpublic, personally identifiable financial information about customers and other consumers. These restrictions only apply to information about individuals who obtain financial products or services from the Member primarily for personal, family, or household purposes.

Members must have policies and procedures that describe their administrative, technical, and physical safeguards for protecting customer records and information. The procedures should also address the Member's policies for disclosing nonpublic, personally identifiable financial information and for notifying customers of those policies.

A Member must provide a customer with a privacy notice when the customer first establishes a relationship with the Member and annually after that. Your firm must also notify other consumers of its privacy policies before disclosing nonpublic personal information about those consumers. Every Member must provide a privacy notice that identifies the categories of nonpublic personal information the Member collects and describes the Member's policies and procedures for protecting that information.

If your firm does not disclose nonpublic personal information to nonaffiliated third parties, or does so in very limited circumstances, the only additional information it must include in the privacy notice is a statement that it shares nonpublic personal information with third parties as permitted by law. CFTC Regulations describe the limited circumstances where Members may disclose the information without having to provide a more detailed privacy notice (e.g., when necessary to process a transaction or provide a service to the customer or with the customer's specific consent).

If your firm discloses nonpublic personal information to nonaffiliated third parties for other reasons, the notice must inform the customer that the firm discloses or reserves the right to disclose nonpublic personal information to nonaffiliated third parties and that the customer has the right to opt out of that disclosure. The notice must identify the categories of nonpublic personal information that your firm discloses and the categories of affiliates and nonaffiliates that your firm will disclose the information to. The notice must inform the customer that it may opt out of the disclosure and must provide a reasonable means for the customer to exercise its opt out right.

Members must provide amended privacy and opt out notices before disclosing information to unaffiliated third parties if either the information or the third party does not fall within a previously identified category. All privacy and opt out notices should be in writing. Members may deliver these notices electronically if the customer agrees.

Business Continuity and Disaster Recovery Plan
Each Member must establish and maintain a written business continuity and disaster recovery plan. The plan must be reasonably designed to enable the Member to continue operating, to reestablish operations, or to transfer its business with minimal disruption.

Your firm's business continuity plan should address the following areas:
• establishing back-up facilities, systems, and personnel in locations that are geographically separated from the firm's primary facilities, systems, and personnel;
• backing up or copying essential documents and storing the information off-site;
• considering the impact of third-party business interruptions and identifying ways to minimize that impact; and
• developing a communication plan to contact essential parties such as employees, customers, counterparties, vendors, and disaster recovery specialists.

Each Member must update its plan when necessary and must periodically review the plan and keep a record of the review. Your firm should distribute and explain the plan to key employees, communicate the essential parts of the plan to all employees, and maintain copies of the plan at one or more offsite locations that are readily accessible to key employees.

Finally, each Member must provide NFA with the name and contact information for an individual who is authorized to make key decisions and will be the firm's primary contact if there is an emergency. If your firm has more than one principal or is registered as an FCM, it must provide this same information for a second individual authorized to make key decisions in an emergency.

Anti-Money Laundering Programs

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Federal law imposes significant anti-money laundering requirements on financial institutions, including NFA Members. NFA Compliance Rule 2-9(c) requires each Member registered as an FCM or IB to have an anti-money laundering program, and an interpretive notice to that rule explains the standards the program must meet.

Developing Policies, Procedures, and Internal Controls
Members must establish and implement policies, procedures, and internal controls reasonably designed to assure compliance with anti-money laundering provisions of the Bank Secrecy Act (BSA) and related regulations. A firm's procedures must cover four key areas:
• identifying customers,
• detecting and reporting suspicious activity,
• hiring qualified staff, and
• recordkeeping.

Customer Identification Program
The anti-money laundering program must include procedures to obtain information about the customer and to verify its identity. Unlike NFA's "know your customer" requirements, these requirements apply to all customers, not just individuals.
A Member must obtain the following minimum information before it transacts business (e.g., introduces or opens an account or acts as counterparty) with a customer:
• for individuals, the customer's name, date of birth, and personal or business address;
• for customers that are not individuals, the customer's name, principal place of business, local office or other physical location;
• for U.S. persons, the customer's social security number or taxpayer identification number; and
• for non-U.S. persons, a U.S. taxpayer identification number, a passport number and the issuing country, an alien identification card number, or the number and issuing country for any other government-issued document that shows nationality or residence
and contains a photograph or similar safeguard.

In addition to obtaining this minimum information, the Member must take steps to verify the customer's identity. You do not have to verify the customer's identity before transacting business with the customer but must do so within a reasonable time before or after the first business transaction. The procedures for verifying the customer's identity should:
• describe those situations where documents will be used to verify identity and list the documents that will be used (e.g., drivers license, passport, certified articles of incorporation, governmentissued business license);
• explain when non-documentary methods will be used either instead of or in addition to looking at documents and describe those nondocumentary methods (e.g., contacting the customer at the telephone number or address provided by the customer, comparing
the information provided by the customer with information from a consumer reporting agency, checking references with other financial institutions);
• include a mechanism for identifying customers that may be high money laundering or terrorist financing risks (such as customers from particular geographic locations);
• provide a means for notifying customers that the Member will ask them for information to verify identity; and
• describe what the Member will do if it cannot form a reasonable belief that it knows the customer's true identity.

If a Member cannot identify a customer that is not an individual using its normal procedures, the Member may need to obtain information about the individual with authority or control over the account. Your firm's customer identification procedures should describe those situations where the firm will obtain this information.

Members are not required to determine whether a document used to verify identity is valid. If a document appears to be a forgery or there is other evidence of fraud, however, your firm must decide whether it has enough information to form a reasonable belief that it knows the customer's true identity. The same is true if the information provided by the customer is inconsistent (e.g., a home address in New York and a telephone number in California or a birth date that isn't consistent with the customer's apparent age).

A Member may rely on another U.S. financial institution to conduct the customer identification procedures. The law provides a safe harbor if the BSA requires the other financial institution to have an anti-money laundering program, that financial institution enters into a contract with the Member agreeing to annually certify that it has implemented an anti-money laundering program and will perform the required steps, and reliance is reasonable under the circumstances. Your firm's procedures must describe any circumstances where it will rely on another financial institution.

Although the safe harbor does not apply unless all of the above conditions are satisfied, firms may also choose to rely on U.S. financial institutions in other reasonable circumstances. Your firm should conduct a risk-based analysis before relying on those institutions. Detecting and Reporting Suspicious Activity A Member's anti-money laundering program must also include systems and procedures designed to detect and report suspicious activity, such as transactions that do not appear to have a business or other lawful purpose, that are unusual for the customer, or that cannot be reasonably explained.

Your firm and appropriate personnel should know the nature of the customer's business and the customer's purpose in entering into the transactions. Your firm should also provide employees with examples of activities that raise red flags.
Each firm's program must require employees to promptly notify specified firm personnel of potentially suspicious activity. The appropriate supervisory personnel must then evaluate the activity and decide whether to report it to the firm's DSRO or the Financial Crimes Enforcement Network (FinCEN).

Hiring Qualified Staff
A Member's procedures should describe its policies for ensuring that employees in areas susceptible to money laundering or terrorist financing are properly qualified and trained. Your firm should perform background checks on key employees to screen those employees for criminal and disciplinary histories.

Recordkeeping
The procedures must also describe the firm's recordkeeping policies regarding information and documents obtained during the identification process. Members must keep records of all identifying information obtained from customers, including a copy or detailed description of each document viewed and a description and the results of each non-documentary method used. Your firm must keep records of the information obtained from customers for five years after the account is closed and of the information used to verify identify for five years after those records are made.

Other Requirements
Compliance Officer
Each Member registered as an FCM must designate a qualified individual or individuals to monitor the firm's day-to-day compliance with its anti-money laundering program. For example, a firm with a full-time compliance officer could designate that compliance officer. The designated individual may not be involved in any functional areas where money laundering or terrorist financing could occur and must ultimately report to senior management. This individual does not, however, have to be a principal of the firm or an Associate Member of NFA.

Employee Training Program
Members must provide ongoing training to employees who are involved in areas where money laundering or terrorist financing could occur. These employees should receive annual or more frequent training on their firm's policies and procedures, federal laws, and NFA requirements. Your firm should maintain records to show it has met this training requirement.

Independent Audit Function
A Member's anti-money laundering program must be audited at least annually. The audit may be conducted by internal audit staff or other internal employees if the employees conducting the audit do not have other antimoney laundering responsibilities, are not involved in areas where money laundering or terrorist financing could occur, and are independent of staff with these responsibilities or involved in these areas (e.g., the internal audit staff may not report to a compliance officer responsible for monitoring the firm's day-to-day compliance with the program). In the alternative, the Member may hire an independent outside party with experience in this type of auditing.

The audit staff or outside auditor should document the audit and report the results of the audit to the firm's senior management or to an internal audit committee or department. If the audit reveals any deficiencies, the audit staff, outside auditor, senior management, or internal committee or department should follow up to ensure that the firm has addressed and corrected those deficiencies.

Doing Business with Non-Members

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Third-party solicitors and account managers are generally not required to register with the CFTC or become Members of NFA. Except for Forex Dealer Members, or persons excluded from the definition of a Forex Dealer Member under NFA Bylaw 306(b), however, no Member may conduct business with non-Members when acting as a fully disclosed forex intermediary.

If non-Members solicit customers to open accounts with, or manage customer accounts at, a Forex Dealer Member, NFA can take an enforcement action against the Forex Dealer Member for the non-Member's conduct if that conduct would violate NFA requirements when engaged in by an NFA Member. This is true even if the non-Member is not the Forex Dealer Member's agent.

This rule allows NFA to bring a disciplinary action even if a Forex Dealer Member acts diligently and has no knowledge of the non-Member's conduct. As a practical matter, however, NFA will not take disciplinary action unless the Forex Dealer Member knew or should have known of the non-Member's conduct or failed to exercise due diligence when establishing and maintaining the relationship with the non-Member.
The Forex Dealer Member should adopt and enforce written procedures to review the activities of non-Members soliciting for it. The procedures should include, among other things, a regular review of the trading being conducted in the accounts solicited, introduced, or managed by these non-Members.

The Forex Dealer Member should also have procedures for following up on any customer complaints received by the firm, including a written description of the investigation made and any resolution of the complaint. Further, supervisory procedures should include a regular review of all promotional material used by any non-Member third-party. The Forex Dealer Member should maintain copies of all promotional materials reviewed, along with a written record of the review conducted and any deficiencies corrected, and should make them available for the periods specified in the recordkeeping section of this notice. A supervisory employee that is, or is under the ultimate supervision of, a listed principal who is also an NFA Associate should conduct the review of the non-Member's activities.

Forex Dealer Members are not subject to discipline for the actions of non-Members who are exempt from the Forex Dealer Member category based on their status as regulated entities or who would be exempt from CFTC registration if they were acting in the same capacity in connection with exchange-traded futures contracts (e.g., persons located outside the U.S. that solicit, introduce, or manage accounts solely for persons located outside the U.S.). Even if your firm is not subject to iscipline for a non-Member's actions, NFA can still discipline it for its own actions. For example, a Member violates NFA rules if it has actual or constructive notice that a non-Member has engaged in fraudulent conduct and the Member fails to take appropriate
action.

Supervision

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Members and their Associates that have supervisory responsibilities must diligently supervise the Member's forex business. This includes supervising the activities of the Member's employees and agents. Forex Dealer Members must also supervise the activities of affiliates that act as counterparties to forex transactions.

Members must establish, maintain, and enforce written supervisory procedures reasonably designed to detect and prevent violations of NFA rules. NFA has provided Members with guidance on minimum standards of supervision through interpretive notices issued under NFA Compliance Rule 2-9, which are listed at the end of this Guide. While these interpretive notices do not directly apply to forex transactions, the principles included in them are equally applicable to those transactions.

NFA recognizes that, given the differences in the size and complexity of the operations of NFA Members, there must be some degree of flexibility in determining what constitutes "diligent supervision" for each firm. Your firm should tailor its procedures to its unique circumstances as long as they meet certain minimum requirements.
All Members subject to NFA's forex requirements should have procedures to address the following:
• screening employees who will solicit transactions from, or provide advice to, customers or manage customer accounts to see if they are subject to any of the statutory disqualifications in Section 8a of the Act and, if so, to determine what supervision they will require;
• monitoring communications with the public, including sales solicitations and web sites, and approving promotional material;
• reviewing the information obtained from and provided to customers solicited by the firm and its employees to ensure that the appropriate information has been obtained and provided; and
• handling and resolving customer complaints.

A Forex Dealer Member's procedures should also include:
• screening employees who will solicit transactions from forex customers to ensure that they are registered with the CFTC as associated persons;
• screening third-party non-members who introduce customer business or manage customer accounts to see if the third party or any of its principals is subject to a statutory disqualification under Section 8a of the Act and, if so, determining if the Forex Dealer Member should perform additional background research regarding the third party – the screening process should include checking BASIC and any other readily available sources and asking the third party to represent that neither it, nor any of its principals, is subject to a statutory disqualification or to identify and explain any statutory disqualifications;
• reviewing on a regular basis the solicitation materials of nonmembers that introduce customers to the Forex Dealer Member, and procedures for quickly identifying and correcting any deficiencies in such materials;
• reviewing disclosures provided to customers to ensure that they are understandable, timely, and provide sufficient information;
• reviewing and analyzing the forex activity in customer accounts, including discretionary customer accounts; and
• handling customer funds, including accepting security deposits.

An adequate supervisory program also includes periodic on-site visits to branch offices and guaranteed IBs that conduct forex business on behalf of the Member. Your firm should consider the characteristics of the branch office or guaranteed IB when deciding how often to visit it and what the visit should cover. These characteristics include the amount of business it generates; the number of customer complaints; the training and experience of its personnel; and the frequency and nature of the problems that originate from that office or IB. You should also take these considerations into account when determining whether and how often you should conduct on-site visits of non-members that solicit customers for your firm.

Members must also ensure that their employees are properly trained to perform their duties, to abide by NFA requirements, and to handle customer accounts. How formal the training program is will depend on the size of the firm and the nature of its business.

A non-FCM affiliate of a Forex Dealer Member may act as counterparty to forex transactions with customers if, and only if, the affiliate meets the requirements in Section 2(c)(2)(B)(i)(II)(cc)(BB) of the Act. In particular, the Forex Dealer Member must directly or indirectly control, be controlled by, or be under common control with the affiliate, the Forex Dealer Member must make and keep records concerning the financial activities of the affiliate under the CFTC's risk assessment requirements, and the Forex Dealer Member must maintain the required minimum adjusted net capital (at least $7.5 million). If a Forex Dealer Member has one or more affiliates that act as a counterparty to forex customers based on their affiliation with the Forex Dealer Member, that Member must supervise the affiliates' forex activities to ensure they comply with the same requirements that apply to the Forex Dealer Member. Your firm should conduct periodic on-site audits of those affiliates and must make their books and records available to NFA upon request. NFA can take an enforcement action against a Forex Dealer Member if its affiliate violates the standards imposed by NFA requirements.

Electronic Trading Systems
The NFA Interpretive Notice entitled "Compliance Rule 2-36(e): Supervision of the Use of Electronic Trading Systems" provides guidance as to what steps a Forex Dealer Member must take to fulfill its supervisory responsibilities with regard to the firm's electronic trading system. The requirements also apply to a Forex Dealer Member that uses another entity's trading system through a "white-labeling" agreement.

A Forex Dealer Member must adopt and enforce written procedures to address security, capacity, credit and risk-management controls, recordkeeping, and trade integrity with regard to its electronic trading platform. Each year, a principal who is also registered as an associated person of the Member must certify that the firm has met the relevant standards for their electronic trading system.

Security
Members must protect the reliability and confidentiality of customer orders and account information, and the procedures must assign responsibility for overseeing the process to one or more individuals who understand how it works and who are capable of evaluating whether the process complies with the firm's procedures.

Capacity
Members must maintain adequate personnel and facilities for the timely and efficient delivery of customer orders and reporting of executions and for the timely and efficient execution of customer orders. In addition, the procedures must be designed to handle customer complaints about order delivery, execution, and reporting and to handle those complaints in a timely manner.

Credit and Risk-Management Controls
Members must have procedures reasonably designed to prevent customers from entering into trades that create undue financial risks for the Member or the Member's other customers. Forex Dealer Member's who have trading platforms that claim to automatically liquidate positions before an account goes into a deficit must set the automatic liquidation levels high enough so that positions will be closed out at prices that will prevent the account from going into a deficit position under all but the most extraordinary market conditions.

Recordkeeping
The Member's trading system must record and maintain essential information regarding customer orders and account activity. The electronic system must record and maintain information regarding:
• Transaction records for orders (which must include the types of information contained on orders for exchange-traded commodities, such as the date and time an order was received)and rollovers;
• Account records showing the financial status of each account;and
• Time and price records similar to those maintained by the futures exchanges.

The Member's trading system must also produce daily exception reports showing price adjustments and orders filled outside of the price range displayed by the system when the customer order reached the platform. The Member should review these reports for suspicious or unjustifiable activity.

Trade Integrity
Members must have in place procedures reasonably designed to ensure the integrity of trades placed on their trading platforms. There are three areas of particular concern:
• Pricing. Trading platforms must be designed to provide bids and offers that are reasonably related to current market prices and conditions.
• Slippage. Electronic trading platforms should be designed to ensure that any slippage is based on real market conditions.

Furthermore, if a Forex Dealer Member advertises "no slippage," the platform should be designed to execute a market order at the price displayed when the order is entered and to execute a stop order at the stop price.
• Rollovers. The platform should be designed to ensure that automatic rollovers comply with the terms disclosed in the customer agreement.

Recordkeeping and Reporting

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Each Member must maintain books and records necessary to conduct their business, and Forex Dealer Members must provide customers with timely and accurate notice of the status of their accounts.

Recordkeeping Requirements
Compliance Rule 2-10 requires each Member to maintain books and records necessary to conduct its business. Members should adopt procedures to create and maintain current and accurate books and records to support and explain their forex activities. FCM Members, including Forex Dealer Members, must prepare and maintain those records in an office in the United States or in a jurisdiction the CFTC has found to have a comparable regulatory scheme for purposes of Part 30 of its rules if the member is subject to that regulatory scheme. Other Members, and FCM Members with their primary business office in the U.S., should maintain their books and records at their main business office.

Members must file all records required to be filed with NFA in English. In addition, financial reports required to be filed with NFA must be prepared using U.S. Dollars and according to U.S. accounting standards. Members must also provide English translations of other foreign-language documents and records when requested by NFA.

All required books and records must be kept for five years and must be readily accessible for the first two years of the five-year period. Members may keep hard or micrographic copies (e.g., microfilm or microfiche) of these records or may use a suitable electronic storage media. An electronic storage media is suitable if it is a digital storage medium or system that preserves the applicable records in a permanent format, indexes the data and records the data’s date, and can be immediately converted to hard copy. Members must make the records available to NFA.

Customer Statements
Written Confirmations
Forex Dealer Members must provide written confirmations to customers within one business day after any activity in the customer’s account. Account activity includes entering or exiting positions, rolling positions over, and delivering the underlying currency.
At a minimum, the written confirmation should include:
• the date of the transaction,
• the currency pair,
• the number of contracts or units,
• the contract or unit size, and
• all commissions, fees, interest, or charges associated with the transaction, including any commissions, fees, interest, or charges collected on behalf of third-parties.

Monthly Summaries
On a monthly basis, Forex Dealer Members must provide a summary of all forex transactions and other account activity to each customer that has open positions at the end of the month or changes in account balance since the prior statement. For all other open accounts, Forex Dealer Members should provide summaries at least quarterly. With the customer’s prior consent, your firm may send confirmations and monthly summaries by facsimile or email, or may post them on a passwordprotected Internet site. The Forex Dealer Member should maintain a hard copy of the customer’s signed consent.

Soliciting Customers

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In developing its forex requirements, NFA's primary concern was to ensure that the requirements provide adequate protection for customers without imposing undue burdens on NFA Members. NFA also recognized that, because of the differences between forex transactions and traditional exchange-traded futures and options, some of NFA's futures rules may not be appropriate for forex transactions. Compliance Rule 2-36 sets out the general standards that apply to Members and their Associates in connection with forex transactions, and the Interpretive Notice entitled "Forex Transactions" explains how these standards apply.

Customer Information and Risk Disclosure
The Interpretive Notice requires Members to obtain certain information from customers and to provide them with understandable and timely disclosure on essential features of forex trading. The information must be obtained, and the disclosures must be given, before the customer makes the first trade. Members must update this disclosure prior to entering into new forex transactions with current customers if failing to update the information would make it misleading.

Members or their Associates must obtain, at a minimum, the customer’s name, address, principal occupation or business, current estimated annual income and net worth, approximate age, and previous investment and trading experience. All forex customers must receive disclosures about the characteristics of the forex transactions and the particular risks of those transactions, and you must supplement this disclosure when necessary. For example, if a customer does not have experience trading forex, you must determine what additional information the customer needs to make an informed decision on whether to enter into forex transactions. In some circumstances (e.g., if the customer is living on social security or is looking for a safe investment), you may even have to tell the customer that forex trading is too risky for that particular customer. A Member, however, is not required to reject the account if a customer, after receiving the additional disclosures, still insists on trading forex.

NFA does not require Members to provide their Associates with any sort of grid-like formula to identify those customers who require additional risk disclosure. Your firm should, however, be able to articulate the general factors its Associates consider when deciding whether to give additional risk disclosure.

There are also certain prescribed disclosures that a Forex Dealer Member must provide to all customers. The firm must disclose to the customer that the funds used for trading forex may not receive the same protections under the bankruptcy code as those funds that are used to margin exchange-traded futures and options. When a customer first opens an account and at least once a year thereafter, the Forex Dealer Member must provide information regarding NFA's Background Affiliation Status Information Center (BASIC). Additionally, a Forex Dealer Member must provide both the bid and the offer when a customer enters an order.

Forex Dealer Members must provide customers with a disclosure making clear that the firm is acting as counterparty in forex transactions and may profit from the market moving against the customer. Unless alternative language is approved by NFA, this disclosure must be the language prescribed in the Interpretive Notice. This disclosure must be prominently displayed in uppercase letters in at least 10 point size type and separately acknowledged by the customer at or before the time the customer first engages in a forex transaction.

NFA has approved alternative language to be used in lieu of the prescribed disclosure where the Forex Dealer Member's business model, unlike the typical counterparty relationship, has the following characteristics: (1) when a retail customer enters an order on the Member's platform, the Forex Dealer Member automatically (without human intervention and without exception) enters into the same transaction with another counterparty, creating an offsetting position in its own name; (2) the Forex Dealer Member confirms to the retail customer the price at which the order has been executed, which is the same price at which the Member entered into the offsetting position; (3) the Member does not profit from any resulting market movement as its offsetting transaction will result in the same profit or loss as the retail customer’s transaction; and (4) the Forex Dealer Member's sole manner of compensation is a commission charge on each trade.

If your firm's business model has all these characteristics it may use the alternative language after providing NFA with written notice of its intention to use this alternative language, with a representation that it's business model is the same as that described. The notice must be signed by a principal of the Forex Dealer Member that is also an NFA Associate.

A Forex Dealer Member must provide disclosure on the essential features of forex trading even if it did not solicit the customer. Your firm does not, however, have to obtain the customer information and provide any additional disclosure if the account was solicited by another NFA Member, since that Member is required to do so. If a non-Member solicited the customer, however, these obligations fall on the Forex Dealer Member.

Communications with the Public and Promotional Materials
Members should adopt and enforce written procedures regarding communications with the public. These procedures should address oral sales solicitations as well as promotional material, and they should be reasonably designed to prevent your firm, its Associates, and any non-member solicitors from making any communication with potential or current customers that operates as a fraud or deceit, uses a high-pressure approach, or implies that forex transactions are appropriate for all customers. For example, you may not represent that forex funds deposited with a Member are "segregated" or given special protection under the bankruptcy laws. If your firm or nonmember solicitors represent that your services are commission free, you must prominently disclose how you are compensated in near proximity to this representation. Additionally, you may not represent that you offer "noslippage" or guarantee fills unless you can demonstrate that all orders on your platform have been executed at the price initially quoted when the order was placed on the platform and you do not have the authority to adjust customer accounts so as to have the effect of changing the price at which the order was executed. In other words, if you "re-quote" prices or have the contractual right to make adjustments that directly or indirectly change the price of an order after it is executed you cannot claim to have no slippage.
If you mention the possibility of profit, you must include an equally prominent statement of the risk of loss. In addition, any references to actual past trading profits or testimonials must also mention that past results are not necessarily indicative of future results. You should also ensure that the communication does not discuss past performance or include a testimonial unless the performance is similar to the actual performance of the firm's reasonably comparable accounts for the same time period. Finally, promotional materials should never guarantee against loss.

A supervisory employee should approve promotional materials before they are used to ensure that they do not deceive the public or contain any material misstatements of fact. The firm's written procedures should say who will be responsible for reviewing and approving the promotional material. The person responsible for the review and approval must be, or be under the ultimate supervision of, a listed principal who is also an NFA Associate. The review and approval must be documented in writing. Additionally, a supervisory employee should be responsible for reviewing the promotional materials of non-members soliciting on behalf of a Forex Dealer Member to ensure that they are not deficient. As discussed more fully below, a Forex Dealer Member will be held responsible for any violations of NFA requirements by non-members soliciting accounts for or managing accounts at the Forex Dealer Member.

Your firm must maintain all promotional material for five years from the date of last use and must keep it readily accessible for the first two years. Furthermore, Members must maintain supporting documentation for all statements, claims and performance results included in promotional materials.

Members Subject to the Forex Requirements

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NFA's forex requirements apply only to Members who are not subject to oversight by another regulator. In particular, the requirements discussed in this Guide do not apply to members (or to their Associates acting on their behalf) that are:

financial institutions (e.g., banks and savings associations),
certain insurance companies and their regulated subsidiaries or affiliates,
financial holding companies,
investment bank holding companies,
registered broker-dealers that are members of NASD, and
Material Associated Persons of registered broker-dealers that are members of NASD. These are affiliates for which the registered broker-dealer makes and keeps records under the Securities and Exchange Commission's risk assessment requirements.

All other NFA Members that engage in a forex business with customers are subject to the forex requirements, although some of those requirements apply only to Forex Dealer Members. A Member is a Forex Dealer Member if it acts as counterparty to or offers to act as counterparty to at least one customer. (See NFA Bylaw 306).

Members that do not act as counterparties are subject to various anti-fraud, ethical conduct, and supervision requirements if they solicit customers, introduce customers to a counterparty, or manage accounts on behalf of customers. (See NFA Compliance Rule 2-39.) Additionally, as of November 30, 2008, Members that manage forex accounts on behalf of customers or offer pools that trade forex must provide prospective clients and pool participants with a disclosure document and file it with NFA prior to use.

Additionally, any trading program or pool that includes forex trading must provide disclosures similar to those currently required under CFTC Part 4 regulations regarding trading in on-exchange products. Similar to traditional CPOs, a Member operating a pool trading forex is also required to provide periodic (monthly or quarterly) account statements and an annual report to the pool participants. (See NFA Compliance Rules 2-41 and 2-42),

Forex Transactions: A Regulatory Guide - Registration

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Counterparties
A firm may not act as a counterparty, or offer to act as a counterparty, to any forex transaction unless the firm is one of the regulated entities listed in the Act. These entities (authorized counterparties) are:
• financial institutions (e.g., banks and savings associations),
• certain insurance companies and their regulated subsidiaries or affiliates,
• financial holding companies,
• investment bank holding companies,
• registered broker-dealers,
• certain affiliated entities of registered broker-dealers,
• registered FCMs, and
• certain affiliated entities of registered FCMs.

Associated Persons
Individuals employed by an FCM to solicit or accept orders for exchangetraded futures and options must register as associated persons of the FCM. A March 1, 2002 CFTC staff advisory (the Advisory), which is referenced in Appendix 3, states that individuals employed by an FCM acting as counterparty must register as associated persons if they solicit or accept forex business for the FCM.

Introducing Entities
Generally, a separate entity that introduces customers to an FCM must register as an introducing broker (IB). The Advisory states, however, that entities that introduce customers to registered FCMs that act only as counterparties for forex transactions are not required to register as IBs, although they may do so voluntarily. If the entity introduces customers to a registered FCM that also solicits or accepts orders for exchange-traded futures or options, the entity must register as an IB or FCM.
The Advisory mentions several situations where a person who claims to be merely introducing business may actually be acting as a counterparty. In particular, a person may be acting as a counterparty if it:
• uses promotional material that fails to identify the regulated counterparty or that fails to make it clear who the counterparty is,
• receives funds from customers in its own name,
• sends funds from a regulated counterparty to customers, or
• does business with a regulated counterparty on less than a fullydisclosed basis.

In other words, a person is a counterparty, and must fall within one of the regulated categories, if a customer would reasonably believe that the person is the counterparty or if the transaction is structured so that it is actually two transactions – one transaction between the customer and the firm that has the relationship with the customer, and a second transaction between that firm and a regulated entity to offset the risk the firm took by acting as counterparty to the transaction with the customer.

Account Managers
Generally, a person exercising trading authority over a customer's futures or options account must register as a commodity trading advisor (CTA). The Advisory states, however, that a person that manages the funds of customers held by an authorized counterparty solely to trade forex is not required to register as a CTA but may do so voluntarily. Obviously, if the person also exercises trading authority over a customer's account for exchange-traded futures or options contracts, the person must register as a CTA.

A person exercising trading authority over a customer's account may not receive or hold the customer's funds. Those funds must be held by an authorized counterparty.

Pool Operators
The Act defines a commodity pool as an "investment trust, syndicate or similar form of enterprise operated for the purpose of trading commodity interests." Generally, a person who operates a commodity pool must register as a commodity pool operator (CPO) unless an exemption applies. The Advisory states, however, that a person operating a pool that limits its trading solely to forex and only trades with authorized counterparties is not required to register as a CPO, but may do so voluntarily.

Forex Transactions: A Regulatory Guide - Introduction

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The Commodity Exchange Act (Act) gives the Commodity Futures Trading Commission (CFTC) limited anti-fraud and anti-manipulation jurisdiction over offexchange(also called over-the-counter or OTC) foreign currency futures and options transactions offered to or entered into with retail customers. Under the Act, only certain regulated entities may be counterparties to these off-exchange trades with retail customers. These regulated entities include registered futures commission merchants (FCMs) and certain of their affiliates. All other off-exchange futures and options transactions with U.S. retail customers are unlawful unless done on or subject to the rules of a regulated exchange.

Before going on, you should understand two of the terms that we will use throughout this Guide.

• For our purposes, a customer is any party to a forex trade who is not an eligible contract participant as defined in the Act. This includes individuals with assets of less than $10 million and most small businesses.
• As used in this Guide, forex transactions are leveraged off-exchange foreign currency transactions where one party is a customer (as defined in the previous bullet), except that the term does not include transactions that result in actual delivery within two days or that create an enforceable obligation to deliver between parties who are capable of making and taking delivery for business purposes.

NFA's forex requirements apply only to Members whose forex activities are not subject to oversight by another regulator. Who these Members are is discussed in the section called Members Subject to the Forex Requirements.

This Guide should help our Members who are subject to NFA's forex requirements understand those requirements. This Guide does not, however, include every requirement that may apply and does not deal with every detail of the requirements it does include. In addition to this Guide, you should read NFA's rules and interpretive notices and the CFTC's interpretive advisories and letters regarding forex transactions. NFA's most significant rules and interpretive notices regarding forex transactions are included in Appendices 1 and 2.

Exchange Link

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Start Trading Forex and Get Profit

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If you've decided to jump in and check out the Forex, or foreign currency market, there are a number of things you should keep in mind as a beginning trader. Your experience with Forex can be a long and profitable one, and it is essential to be prepared at the onset so you can start leveraging your tools and resources at once, and start building experience.

To get started, once you've located a brokerage you would like to work with, you should open up a demo account, so you can start making practice trades. When you are ready to open a real account, its a good idea to also keep your demo account open. You will be able to test alternative trades with your demo account, which gives you the ability to keep learning and testing strategies. You will also be able to see if you are being too liberal or conservative in your real account, by testing out different trade amounts in your demo account and comparing the outcomes.

To become more successful with Forex, research is the name of the game. If you tend to jump in first and ask questions later, you may want to be a little more deliberate, and start by understanding the basics of how the market works, such as the trading terms and terminology that are used in Forex. There are many tutorials available on the Internet, and much of the basic information can be accessed at no cost.

You should also stay informed with current events, such as political, social and economic factors that can effect a country's currency rates. While you don't want to feel overwhelmed by a barrage of information, Forex trading is fluid, and these external factors play a part in currency fluctuations that impact your trading.

Probably the most important piece of advice is to have a money management plan in place. You should only use money you can afford to lose when you invest in the Forex market, and have only a set amount of money at risk. There are no guarantees in Forex trading, and you don't want to get wiped out. In addition, you should be especially careful when trading on margin, which is borrowed money to trade with. Margin money is not free money, and if you can accumulate bigger losses if you are trading on too much.

Forex trading can be fun and profitable, but it does carry a number of risks and uncertainties. By doing your research, practicing and shadowing with a demo account, and carefully managing your money, you can minimize your risks and increase your success with Forex.