Wednesday, 28 September 2011

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Tuesday, 27 September 2011

Trends Realty and Finance: Stocks jump for second day on hopes of Europe deal...

Trends Realty and Finance: Stocks jump for second day on hopes of Europe deal...: <img width=1 height=1 alt="" src="http://us.bc.yahoo.com/b?P=4tW9o0PDkjlO.EFoTm3XhQAJdPAFIk6CIbAAC.ZQ&T=1ga97sugt%2fX%3d1317151152%2fE%3d21...

What leverage does FXCM AU offer?

frequently asked questions

What is margin?
Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit. Margin requirements (per 10K lot) at FXCM are determined by taking a percentage of the notional trade size plus a small cushion. A cushion is added to help alleviate daily/weekly fluctuations.
Why trade on margin?
Trading on Margin (Trading with Leverage) is a common attraction of the forex market. It allows you to open trades that are larger than the capital in your account.
Trading on margin can both positively and negatively affect your trading experience as both profits and losses can be dramatically amplified.
Example Trading on margin
In the example above, US$1,000,000 have been purchased through a long USD/JPY position with a US$50,000 account balance (20:1 Leverage).
What leverage does FXCM AU offer?
FXCM AU offers flexible leverage on its forex trading accounts. The maximum amount of leverage available is around 200:1. The high degree of available leverage is a popular attraction for many traders to the forex market, and most FXCM traders use the default leverage (determined by the default margin settings). But the amount of leverage utilized in your trading is up to you. Please note that Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.
Why FXCM encourages lower leverage?
When you use excessive leverage, a few losing trades can quickly offset many winning trades. To clearly see how this can happen, consider the following example.
Scenario: Trader A buys 50 lots of USD/JPY while Trader B buys 5 lots of USD/JPY.
Questions: What happens to Trader A and Trader B account equity when the USD/JPY price falls 100 pips against them?
Answer: Trader A loses 41.5% and Trader B loses 4.15% of their account equity.
Example

TRADER A TRADER B
Account Equity $10,000 $10,000
Notional Trade Size $500,000 (Buys 50, 10K lots) $50,000 (Buys 5, 10K lots)
Leverage Used 50:1 (50 times) 5:1 (5 times)
100 Pip Loss in Dollars -$4,150 -$415
% Loss of Equity 41.5% 4.15%
% of Equity Remaining 58.5% 95.85%
By using lower leverage, Trader B drastically reduces the dollar drawdown of a 100 pip loss.
How can you increase your margin requirements?
The lowest available margin setting (also the default margin setting) is 0.5%. You can request to decrease your margin settings at any time through your FXCM Account Profile at www.myfxcm.com. Simply choose the margin requirement you desire. (Margin changes can take as long as one business day to be reflected in your account.)
Where can I view FXCM's up-to-date margin requirements?
Up-to-date margin requirements are listed by currency pair in the MMR column of the "Simple Dealing Rates" window within the platform.
Is there a debit balance risk? Can I lose more money than I deposit?
Not with FXCM. It is FXCM's policy to credit accounts to a zero balance when debit balances occur as a result of trading.
One of the greatest concerns traders have about leverage is that a sizable loss could result in owing money to their broker. At FXCM, your maximum risk of loss is limited by the amount in your account. All accounts are tracked by our "Margin Watcher" feature. With the Margin Watcher feature, if account equity falls below margin requirements, the FXCM Trading Station will trigger an order to close all open positions.

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Australian Dollar Top Expected – Short Idea Triggered

Australian Dollar Top Expected – Short Idea Triggered

By Jamie Saettele,
27 September 2011 15:42 GMT
Daily Bars
eliottWaves_aud-usd_body_audusd.png, Australian Dollar Top Expected – Short Idea Triggered
Prepared by Jamie Saettele, CMT
I remain of the persuasion that the AUDUSD is headed lower. In fact, the rally from 9620 fits as a 4th wave within the decline from 10764. A top and reversal is expected at / close to current price (9970). Bearish objectives are the November 2010 low at 9534 and the 2009-2010 double top at 9400.
Trend Strength (M,W,D) – 1, (2), (1)
COT
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday), technical analysis of currency crosseson Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forex Stream. A graduate of Bucknell University, he holds the Chartered Market Technician (CMT) designation from the Market Technician Association. He is the author of Sentiment in the Forex Market.  Send requests to receive his reports via email to jsaettele@dailyfx.com.
DailyFX provides forex news on the economic reports and political events that influence the currency market.
Learn currency trading with a free practice account and charts from FXCM.
27 September 2011 15:42 GMT

U.S. Consumer Confidence (SEP) - Live Trading Room

U.S. Consumer Confidence (SEP) - Live Trading Room

By Christopher Vecchio, Junior Currency Analyst
27 September 2011 15:13 GMT

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27 September 2011 15:13 GMT

Should We Expect a Stock Crash and Blowout Dollar Rally Monday?

DailyFX Home / Video / Daily News Report

Should We Expect a Stock Crash and Blowout Dollar Rally Monday?

By John Kicklighter, Currency Strategist
24 September 2011 00:23 GMT

24 September 2011 00:23 GMT

Trends Realty and Finance: Rumors of European ‘TARP’ Sends US Dollar Lower- K...

Trends Realty and Finance: Rumors of European ‘TARP’ Sends US Dollar Lower- K...: <img width=1 height=1 alt="" src="http://us.bc.yahoo.com/b?P=lu3Ub0PDkjlO.EFoTm3XhQHRdPAFIk6CFGoACwwc&T=1ei7uol50%2fX%3d1317147755%2fE%3d21...