Forex and Bush Presidency

What Is Forex (foreign Exchange)?



Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets. MG Financial Group’s combination of low margin and high leverage has changed the way the Interbank currency market operates. We have done this by opening the doors of Forex to retail investors, giving them the professional tools and services needed to trade effectively in an independent atmosphere.

MG Financial Group, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's DealStation™ allows them to participate in FOREX trading by providing a combination of live quotes, Real-Time charts, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis.

Bush Presidency

The Bush Presidency is really corporate presidency. America is not the government of the people. It's the government of Enron. It's the government of the oil, tobacco, the credit card companies, polluters, Christian terrorists, gun lobby, the media, and anyone who has the money to buy favors. These people are thieves and we have become the biggest threat to democracy on the planet. The people of America are now slaves to a government with no soul that is owned my multinational corporations - and they are using us to establish world domination.

So what will Son of Bush do if he were elected president? Will he stay the course and build on the Clinton/Gore economic miracle? Or, will he go back to Reagan/Bush voodoo granting big tax cuts for the rich and paying for it with borrowed money? Do we stay with what works or go back to what doesn't? I'm for staying with what works!


Forex Market News

The softer USD is being blamed for much of the recent spike higher in commodity prices, and while this makes sense on a basic level (European’s can buy more gasoline as it is cheaper in EUR’s), chances are that the USD effect on non-precious metal commodities is being greatly overestimated by commodity bulls. Still, [...]

Slowly but sure the dollar lose new pips against the euro. After the report for U.S. New Home Sales the rumors was confirmed that the crisis in the housing sector is deep. The forecast is for test of the levels of 1.42 tomorrow ahead the key reports for Personal Income and Spending. The forecast here [...]

The EUR/USD pushed to new highs on Thursday, with the market feeling pretty good about the Eurozone economy as the German jobless rate ticked lower, money growth remains a bit too high for the ECB’s comfort, while the US economic data remains patchy. The ECB’s Trichet was on the wires suggesting that it was too [...]

Forex trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in FOREX you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with online forex trading, and seek advice from an independent financial advisor if you have any doubts. Past returns are not indicative of future results.


Forex Trading

The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.

When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.


Tips For Global Forex Trading

Forex is the foreign exchange market where currencies are bought and sold. It began back in the 1970's with the introduction of free exchange rates and floating currencies. Thanks to the internet more and more people are able to reap the profits of the currency market with global Forex trading.

This is a market that trades as over US$1 trillion a day. It trades more than any other market. There are some distinct differences in the currency market compared to the stock market. Money moves much faster so no single investor has the ability to actually affect market price and trades are able to open and close within seconds which is not possible on the stock market.

To start your global Forex trading you need to open a Forex account. Just fill in the application and the sign the margin agreement which let's the broker intervene at any time. That makes sense since it's the broker's money that just makes sense.
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