Latest Post
Monday 1 November 2021
Wednesday 5 August 2015
Risks in Forex trading market in Vietnam
Foreign currency trading is increasingly important status in the activity of commercial banks (URBAN COMMERCIAL) Vietnam. However, forex trading activities contain many risks.Therefore, the measure, calculated to give a solution to reduce risk in the business of banks is very important.
Forex trading: opportunities and challenges
Risk in Forex business in the URBAN COMMERCIAL special risks is Vietnam rates occurs when the open status maintaining bank rate with this type of Exchange. When the exchange rate of foreign currencies that change will lead to damage free share trading software to the Bank. Therefore, the measurement of the level of risk for each individual currency and foreign currency portfolio is the basis for the Bank to put preventative measures in order to reduce the risk of damage.
However, the figures also showed that the Exchange has close relationships with each other, expressing through the USD's correlation coefficients with the Exchange. The dollar is the currency has the lowest correlation coefficient compared to online trading platform of the EUR, JPY, GBP, AUD, CAD ... but have a relatively high correlation coefficients compared with 0.81% coefficient, HKD. In contrast, the JPY has high correlation with all the coins, except the Council of CAD, HKD.
In addition, the fluctuation rate of the USD/GBP reflect inversely correlated relationship, i.e., the correlation coefficients between USD, GBP and USD by-0.12. I.e. If the dollar price rises or GBP going off and vice versa. As such, through the analysis of data correlation can be seen to reduce the risks in online forex trading within the business, banks need to maintain field status (buy) for USD.
In 2007, the volatility of rates shows the correlation of Dong VND for mostly low. The dollar remains the currency has the lowest correlation coefficient compared to the rest of the coins, along with HKD. However, the dollar has an inverse correlation with EUR, AUD and SGD.
This shows the changes in the exchange rate between this currency against each other. EUR has a relatively high correlation coefficient compared to the other coins to get online trading experience followed by the Aussie. In terms of risk level, in 2007, the Business Council of SGD is still the coin of the lowest risk level, followed by the dollar. Aussie currency has the highest risk level, followed by the Thai baht (THB) with the risks in turn is 3.47% and 3.3%. However, sales for the sale of the coin representing small. Thus, the Bank can reduce the risks when trading currencies.
In 2008, due to the volatility of the exchange rate, most of the large fluctuations in currencies, so the level of risk when trading foreign currencies rise. The evidence is the standard deviation of the EUR 324% increase, the JPY increased more than 114% and the dollar also over 283%.
The cause of the large fluctuations of the exchange rate of the currency was due to the degree of liberalization of capital transactions are relatively high, due to the volatility of capital flows, especially capital flow indirectly have trading shares online influence to the supply and demand of foreign currencies and rates. In 2008, the indirect investment flow has continued to fluctuate, making foreign exchange supply and demand imbalance. This significant increase in capital inflows in the first three months of 2008, putting pressure on prices in VND.
Then, when the world economic situation continued domestic economic difficulties, faced with inflation, soaring trade deficit or the USD discounted signs increase the demand of foreign currencies. The unpredictable fluctuations of the economy and the financial market in the world as well as in the water have negative influence on online options trading to balance the supply and demand of foreign exchange in the country and have an impact on the exchange rate.
The 2009-2010 period, the level of risk of the foreign currencies declining, except copper HKD there risk level increase in 2010. Thus, when considering the level of online trading canada risk that the foreign currency that the URBAN COMMERCIAL business, the dollar is the currency has the largest sales revenues compared with the other coins have the lowest risk level of the transactions of the Bank. EUR, JPY has a relatively high risk. In addition, the GBP, AUD also maintains major risk factor.
The risk assessment for each individual currency that is to consider the open status for each Exchange, the foreign exchange risk was much more chemistry exaggeration. Because of the change in the exchange rate between currencies have an inverse relationship. Therefore, the profit from maintaining open State for this currency could offset the losses due to remain open for other currencies. So, trading risk assessment of Exchange need computer to both categories of Exchange.
Strategy of making money from Forex trading market
The opportunity to make money from Forex trading (Forex) is opened by the difference in the exchange rate. Trading mechanism is very simple, for example: you buy 1 euro with price $ 1.2 and wait until the euro will rise to 1.3 dollars. Once that happens, you sell the euro and get profit is $ 0.1.
You can make money with similar success not only bought into when the coin up the price, but also can make money when sold for trading contract prices go down. Of course, these numbers are just illustrations, in fact the number of very large transactions, which means that the volume of foreign exchange trading will proportional profit that you earn daily.
Relationship of the Exchange with the happenings of the macro economy lies online trading canada in the fundamental market analysis:
The output of the statistical information, reflect the economic situation of the country that the currency is traded on Forex global market;
Market prices always move a direction.
All this is shown on the graph of the exchange rate, trading shares online and based on the analysis with the header on, people can take out predictions about the volatility of the currency.
Usually, the Forex trader predict price fluctuations in just a few hours, or at most two days. And using this short-term forecasting to signing deals forex trading platform born of profit. Those who are prejudice the thinking with questions how to make money from Forex does not need to know the price of the foreign exchange it will how after a few months or up to last year. To make a forecast of the next month is more difficult than the next day. Although a reasonable approach with long term Forex trading strategies can also bring great profits.
TO KNOW TO CHOOSE THE RIGHT MOMENT TO COME OUT ON ON EVERY FOREX TRADING
Investors who want to make money with Forex need to know to predict movements and capture when to join in a forex trading transaction. For example, a Forex trader can give an accurate prediction about the reviews in the near future, but still have to purchase a currency at its highest point on the chart before the discount trend in the decline, because the result is Forex trader will suffer losses. So it is important not to "Miss" the time to buy and sell foreign currency on trading.
MUST ALWAYS ADHERE TO THE STRATEGY OF CONTROLLING CAPITAL (MONEY MANAGEMENT)
Any Forex trader would also need a defense system against risks with all the rules about capital controls. When built properly system forex trading players will earn money in a more stable way.
To comply with the security system, it is important to have nerves of steel. On the foreign exchange market is not allowed to affect the emotional investment decisions, it can lead to large losses.
Comply with all the fundamental issues that will create a 60% chance of making sure that the Forex trader will make lyrics are on the forex trading market. In this case the profit will depend on a field, the ability to predict and Forex trading strategies of the major Forex trader. TeleTrade's consulting professionals will help you capture the market foreign exchange forex trading strategy and the development of his own personal daily.
Becoming a millionaire thanks to online trading lectures
Sean McCleese's people, online trading always despise surprise. When a young boy Sean makes people marvel at by smart indicators (IQ) high pole and the older age. Education is advantageous, then Sean deciding to abort after completing grade 9 online trading program in high school in La Cañada Flintridge, facility in the State of California, United States of America. Parents expressed support for the decision of the physical classroom but the son.But Sean back surprise when you join the exam to graduate high school and Park. Then people marvel at when he became the youngest person to be admitted to the University of Occidental in Los Angeles. He graduated in 2005 with a degree in physics.
"Yes, I do not follow the traditional academic. But I think the path that I choose, although no one's ever gone through cheap online trading and rife Chong gai, helped me become a man and an entrepreneur ", Sean, the President of the company's online training Student of Fortune in the State of California, United States of America, statements.
In the process of resolving a thorny problem in the final semester at the University of Occidental, Sean is looking for a quick answer to a complex physics problems, but could not find it in any source document. Soon after that he was inspired to trained online trading company to fill gaps in knowledge. The idea that led to the birth of the Student of Fortune-a new company is active for 5 years but growing rapidly rushing. Its annual turnover ranges from 5 to 10 million USD.
Student of Fortune a whole new form to connect people with knowledge who need the knowledge. When must solve a problem whatever-as Fireworks, balancing chemical equations-everyone can put questions to the site of the Student of Fortune along with the amount that they are willing to pay for a course can lead to help them find the answer or the solution. The online trading platform minimum wage was 25 cents (1 USD = 100 cents). Then the Board will move web site questions to experts in cooperation with the company. These experts have the answer will take up the lecture to address the issue.
After watching the introduction summary of lecture, people question choose one or few items to pay. Student of Fortune on hold 18% of the amount, and the remainder was transferred to the specialist. If the lecture are many favorites, online trading accounts will be saved on the site's virtual library so others can buy, thanks to which the Faculty will have more potential sources of income in the future. The Faculty has the highest income from company to earn more than $ 125,000 per year.
"We do not sell your time to teach that to sell their knowledge," Sean said.
The company of Sean the breathtaking forex trading singapore growth each year, especially in 2009, when the following quarter revenue always nearly doubled compared to the previous quarter. The young boss of it companies thrive thanks to a completely new way. He and close friend Nikhil Sreenath has built the company without a dime from outsiders.
"Us interest rates very quickly and every penny that the company make belong to us. Do not owe anyone so our costs very low, so that the marginal profit ratio growing to incredible levels, "Sean said.
All those factors that Sean launched the company into a set position a strategic advantage. It not only helps you complete the dream "became a source of knowledge on the net", but also attracted the attention of countless investors. Even so, Sean has not yet accepted online trading platform from the joint proposals of any investor would. I always listen to their requests and then declined a modest way.
Currently Sean is taking the course master in technology at the University of Southern California. I admit that is a surprising turning point for a man who always evade traditional learning methods and training companies operating online. Now, as a high school student, boredom is no longer a problem with Sean. Young entrepreneur unit said he was motivated to return to the classroom.
"I love school and I remember learning online trading activities. According to a graduate course also helped me better understand the customers come from students, "he said.