New Forex Trading Strategy

Sunday, November 1, 2009

Currency Options Trading To Make It Big!

By John Varlalin

The rapid expansion of the trading volume in the currency market has led to a rapid expansion in currency options trading market as well. It functions in many ways like the equity options market with a few differences. If the option trader believes a currency price will move higher, he/she will buy calls on the currency. This gives them the right to buy the currency at a set price for a specific amount of time. If prices are trending lower, he/she will buy puts on the currency. This gives them the right to sell the currency at a set price before the option expires.

One type of currency option is the traditional option contract. Since currencies trade in pairs so do currency options. With the traditional option the trader selects the strike price as well as tje expiration date of the option contract. These factors are used by the broker in arriving at the premium they will charge for the trade. If the trader feels the premium is fair the option/options are purchased. An example of an option contract is when the trader feels that the dollar will move higher against the Swiss franc. They will purchase calls on the USD/CHF. If the dollar does move up against the franc, the trader in with a traditional option will exercise the option by buying the dollar at the strike price and turning around and selling it at the current market price to realize the profit.

The SPOT contract is a bit different from the traditional option. It does not have to be exercised in order to realize the profit that has been generated. Just like the traditional contract the trader is the one who selects the strike price and the expiration date. The broker sets the premium based on these two factors. Premiums for SPOT contracts are higher than for traditional options. If you think a currency base price will move down you would purchase puts. If you are correct, the profit will automatically be credited to your account with the broker. If you are wrong, you will lose the premium at expiration.

Premiums on currency options, as mentioned before are set by the broker. The closer the strike price is to the current market price the higher the premium will be. The premium will be higher also the longer the time until expiration. If the currency is experiencing wide swings in price this is likely to raise premium levels as well.

There are a number of reasons people get involved in the currency options trading market. Speculation is the top reason. Pure profit is the motivation. In this high volume market, with it's limitation of risk exposure traders find it easier to take advantage of price changes in the currency market.

Hedging is another reason for using currency options trading. The person buying options may own the currency because of business dealings they have with that country. They are interested in protecting themselves from price swings between the currency and their own country's currency. Options can help to do this.

Traders can sell options as well. They receive the premium. If the option expires rather than being exercised the person makes a small amount of money. Due to the higher risk exposure, the broke will require a much higher capital deposit on these types pf transactions.

The currency options trading market is growing at a fast pace. Traders get involved because the lower capital requirements and the limited loss potential. If you develop sharp trading skills large profits can be made in this market. - 23305

About the Author:

Sound Analysis Provides Real Investment Research

By Harriett Meece

I've been investing for years now, and I have to share something. I can't stand most investment research - whether it's a financial newsletter, stock newsletter, or investing newsletter.

These newsletters arrive in my mailbox and email inbox in droves. These newsletters are awful. Another corporation's research is always driven just by the market; they consistently fail to identify any other factors that may influence stocks and bonds. Another corporation's research is always driven just by the market; they consistently fail to identify any other factors that may influence stocks and bonds.

One day I complained about these terrible investment research materials, and a friend recommended MyStrategicForecast.com. After visiting the website, I found myself spending hours reading their webpages; I re-read several parts over and over. I was incredibly impressed with their research; I went on and registered for a few sample strategic investing reports.

After I read their first investing newsletter, I felt like I was in shock. Through a sound methodology for predicting financial markets, My Strategic Forecast doesn't simply engage in predictions. By using several many factors, including historical trends, political conditions, geopolitical considerations, and Solar-Geophysical data, they derive information that is well-considered and concise. I was impressed by the amount of data they managed to review prior to issuing their report, but yet, the report's information was timely and current.

Through a unrivalled market timing device, My Strategic Forecast has created value-driven research; all largely due to their consideration of "five pillars of global market influences". My Strategic Forecast doesn't follow other brokerage firms' pattern of tracking global indexes in order to determine a recognizable pattern. Instead, they incorporate the five other market influences into the historical charts, and determine what was occurring when the market shifted one way or another. My Strategic Forecast absolutely ignores "shoot from the hip" predictions; they instead rely on their carefully calculated methodology to understand what is happening.

The organization's emails are incredibly impressive. Their e-newsletters are all clear, focused, and substantial alerts. I was thrilled that I don't receive the same ad copy - rewritten every time - in my inbox every time I open it.

Due to his recommendation, I constantly thank my friend for providing me information regarding My Strategic Forecast. I am very pleased with the amount of work they have put in compared to the low cost I am spending each month. Today, it seems almost impossible to receive better service than what you pay for. - 23305

About the Author:

What Are Tha Best Techniques To Use In Advertising For A Rental Premise In Order To Attract The Right Tenants

By Connor Sullivan

It is important to utilize the right methods to attract tenants as the landlord will be certain that his house will be given care of and the leased income will be steady. There are many techniques that can be used to attract wonderful tenants and avoid the bad ones. However, the most common option for individuals living in Rhode Island is property management Providence. Providence property management is a skilled management firm that concentrates in a huge array of housing needs. If homeowners really wish to rent out their houses to genuine tenants, then there are some simple tips that they must follow.

It is quite essential to understand the different strategies in looking for a tenant. There are many strategies that homeowners can imply in order to look for the right tenant for their rental homes. Firstly, posting online is a great way to expose the rental premise. There are few websites which charge a small amount of money for posting but other classified sites are free and they work great as well. It is also important to renew the advertisement occasionally. Another method that can be used to attract tenants is by incorporating pictures of the different areas of the house such as the bathroom, kitchen, living room and bedroom. The conditions and the convenience and resources included shall also be listed down.

Word of mouth is another great way to let people know that there is a home for rent. The message will quickly spread and if the first individual is not concerned about in renting the premise then he may be able to find somebody else who is certainly planning to rent. Homeowners can also place notices in their garage so that nearby people and neighbors know that there is a home for rent. There are also chances of the neighbors knowing of individuals who are searching for a rental house.

Real estate professionals can also provide great exposure to landlords but there are advantages and disadvantages of hiring a real estate agent to make a deal for the premise. It is likely for such agents to get a tenant quickly but at the same time it can be quite expensive to get the home listed with the agents. For the aid that professionals offer, they even take a full month's rent. Advertising in magazines is becoming ancient nowadays, but this method still works. It may also be very costly to post an ad in a newspaper, but at the same time the landlord will get a lot of exposure.

It normally takes few months before locating the right tenant to rent the premises. Therefore, it is important to stay consistent and keep up with marketing budget. After three to four months, if homeowners are still unsuccessful in searching a good tenant, then they might consider lowering their rental amount as the price is a major determinant which can influence the rental of houses. As it is a wonderful suggestion to advertise in as many places as attainable, it is also necessary to avoid posting at places which will attract bad tenants. - 23305

About the Author:

Buying American Gold Eagle Coins

By James Stevenson

If you're familiar with American Gold Eagle coins, well, you probably already know that they can be a great investment. Not only for people who love to collect coins, but for anyone who wants a part of history. Coming out in the 1980's they are the official gold bullion coin of America.

Gold that is used in the the American Gold Eagle coin must come from United States soil, and also added into the mixture are copper and silver that will help the coin more durable and wear-resistant. 22 karat gold is used to make these beautiful coins.

The reverse side that displays the American Gold Eagle shows a male bird flying while holding an olive branch. He is flying over a nest containing a female Gold Eagle with her hatchlings. The design was created by Miley Busiek. While the opposite side of the coin is a design by Augustus Saint-Gaudens', showing Lady Liberty. The picture is one with Lady Liberty holding an olive branch in one hand, while in the other is a torch.

Values of these American Gold Eagle coins will be based on the value that cold is currently at, and depending on the content of gold in each coin. Back in April 2009 the values ranged from $130 for the $5 coin, all the way up to $1,000 for the $50 face value coin.

Depending on the spot price of gold, the market will determine the price that you could hope to get from the sale of these coins. Almost all of these types of coins will be produced at the New York at West Point Mint. These American Gold Eagle coins contain a mixture of 91. 67% gold, 5. 33% copper, and 3% silver.

Sizes of the different coins are as follows, the one tenth troy ounce coin comes in 16. 50 mm diameter, weighs 3. 393 grams, and is 1. 19 mm thick. While when you have a quarter troy ounce coins it will be 1. 83 mm thick, measure 22 mm in diameter, and weigh 8. 483 grams. Moving up to the half troy ounce this coin will weigh 16. 965 grams, be 27 mm in diameter, and 2. 24 mm thick. And finally, the one troy ounce American Gold Eagle coin will be 32. 70 mm in diameter, weight 33. 93 grams, and be 2. 87 mm thick.

During the years of 1986 to 1991 Roman numerals were used to date the coins. Starting after that it was switched to Arabic numbers for the dates. The American Gold Eagle is an item that is not only a great investment, but beautiful to behold. Any item that is a great investment, as well as something that you can enjoy looking at is worth obtaining. Today you can get a piece of history and enhance the value of your gold bullion portfolio,as American Gold Eagles are well worth the cost to invest in. - 23305

About the Author:

Invest in Beach Property by Buying Land

By Jeremy Szechenyi

Purchasing land at the beach requires finding land at or near the beach that has not been developed with a house. Finding land that is actually on the ocean or waterway is challenging, and can be prohibitively expensive. Land just off the ocean or waterway tends to be more available, and requires less investment. Either way, there must be value in the property for it to be a good investment. Look at the following points to help you figure out if it will have value.

1. Why is the land for sale?

2. Research the area to see if utilities are available for a house.

3. Figure out if any development projects are going to take place.

First, you need to figure out why the land is for sale. There are many reasons why land goes up for sale, from honest to dishonest reasons. Zoning restrictions can cause issues with building a house, and you will need to be aware of these restrictions when evaluating a property for purchase. Land might also go on sale because of hidden problems with the land itself, such as ground too soft to lay foundation in. Make sure you know the land and about the property before you buy.

Second, research the area to see if it has all the necessary utilities to support a house. If there are electrical lines, but no sewer access and rules against a septic tank, then the land won't be worth as much. Keep in mind that if the land doesn't have all the utilities it needs available, it might have them available in the future. Land development close by might mean that a sewer line is put in. Purchasing the land before those events happen would allow you to get it for less money, and ultimately have a larger profit.

Third, figure out if any development projects are going to take place. Residential and Commercial development are typically easy to forecast given the surrounding area, but sometimes they can pop up in remote places. Investigate the development projects that might be coming close to your land, and consider that into your purchase. - 23305

About the Author: