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Forexmarketing-solutions: 03/01/2008 - 04/01/2008
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Valuing FX options: The Garman-Kohlhagen model. As in the Black-Scholes model for stock options and the Black model for certain interest rate options, the value of a European option on an FX rate is typically calculated by assuming that the rate follows a log-normal process. C = S 0 exp(-r f T) N(d 1) - K exp(-r d T) N(d 2). The value of a put option has value. P = K exp(-r d T) N(-d 2) - S 0 exp(-r f T) N(-d 1). D 1 = frac{ ln(S 0/K) (r d - r f sigma 2/2)T}{ sigma sqrt{T}. D 2 = d 1 - sigma sqrt{T}.
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Forexmarketing-solutions: 01/01/2009 - 02/01/2009
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How do I manage risk? How are currency prices determined? How long are positions maintained? Approximately 80% of all forex trades last seven days or less, while more than 40% last fewer than two days. As a general rule, a position is kept open until one of the following occurs: 1) realization of sufficient profits from a position; 2) the specified stop-loss is triggered; 3) another position that has a better potential appears and you need these funds. How often are trades made? What is a Limit order?
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Forexmarketing-solutions: 02/01/2008 - 03/01/2008
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If you have a $10,000 account and only open one $100,000 position, this has committed only $1,000 of your money plus you must maintain $1,000 in margin. While this leaves $9,000 free in your account, it is possible to lose almost all of it if the speculation loses money. Transaction Costs and Market Makers. In financial markets, the retail forex (retail currency trading or retail FX) market is a subset of the larger foreign exchange market. This "market has long been plagued by swindlers preying on t...
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Forexmarketing-solutions: 12/01/2008 - 01/01/2009
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What is a Stop Loss order? A stop loss order is an order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49. What is Forex Market? The biggest money market in the world, Foreign Exchange or Forex or FX...
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Forexmarketing-solutions: 05/01/2008 - 06/01/2008
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Generally in thinking about options, one assumes that one is buying an asset: for instance, you can have a call option on oil, which allows you to buy oil at a given price. One can consider this situation more symmetrically in FX, where one exchanges: a put on GBPUSD allows one to exchange GBP for USD: it is at once a put on GBP and a call on USD. There are a number of subtleties that follow from this symmetry. Http:/ www.fxswingtraders.com. This type of contract is both a call on dollars and a put on st...
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Forexmarketing-solutions: 11/01/2008 - 12/01/2008
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Forex or Foreign Exchange. Foreign Exchange market is the biggest financial market in the world, with a potential of fast and great gains and a sizable number of investors. The advent of internet technology is what made Forex trading grow considerably popular as well as accessible with various types of investors. . The market can prove any expert wrong at any point. So it is always said in terms of the market, that the learning never ends here! Subscribe to: Posts (Atom). Forex or Foreign Exchange.
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Forexmarketing-solutions: 07/01/2008 - 08/01/2008
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What is Foreign Exchange? The Foreign Exchange market, also referred to as the "Forex" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.2 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen. Where is the central location of the FX Market? Subscribe to: Posts (Atom).
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Forexmarketing-solutions: 04/01/2008 - 05/01/2008
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The explosion in trading of financial assets (stocks and bonds) has reshaped the way analysts and traders look at currencies. Economic variables such as economic growth, inflation and productivity are no longer the only drivers of currency movements. The proportion of foreign exchange transactions stemming from cross border-trading of financial assets has dwarfed the extent of currency transactions generated from trading in goods and services. Balance of payments model. Uncovered interest rate parity.
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Forexmarketing-solutions: 01/01/2008 - 02/01/2008
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Exists wherever one Currency. Is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, Central banks, currency Speculators,. Multinational corporations, governments. And other Financial market and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion. Individuals) are a small fraction of this market and may only participate indirectly through. Main article: Currency future. A foreign e...
