 | To strive to provide quality and value-added services to the capital market in an efficient, transparent and orderly manner, compatible with international standards and best practices. |
| | To provide state-of-the-art technology and automated trading operations, driven by a team of professionals in accordance with good corporate governance. |
| | To protect and safeguard the interests of all its stakeholders, i.e. members, listed companies, employees and the investors at large. |
| To reflect the country’s economic health and behavior and play its role for the growth, development and prosperity of Pakistan. |
Tuesday, February 2, 2010
KSE-Mission
Thursday, November 12, 2009
Forex trading examples
Example 1
An investor has a margin deposit with Saxo Bank of USD 100,000.
The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.
The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.
Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.
Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.
Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.
Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.
As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the profit calculation.
This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.
Example 2:
The investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).
The dealer quotes 112.05-10. The investor sells EUR at 112.05.
Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.
He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.
Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.
The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.
This results in a loss of JPY 0.55m = approx. USD 5,300 (USD/JPY 105) = 5.3% loss on the original deposit of USD 100,000.
Forex Trading Basics
There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading.
Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.
Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.
Saturday, October 31, 2009
FOREX
FOREXTrader PRO includes a sleek user interface packed with advanced charting functionality and enhanced customisation features that sophisticated forex traders need and deserve. Get powerful trading tools, award winning forex research and advanced order types to help you place trades and manage your account. Our FOREXTrader Charts are fully integrated on the FOREXTrader PRO platform providing you with easy access and complete control. With over 70 technical customisable indicators and several chart types, we make it easy to analyse the market using technical analysis. A fully customisable trading environment allows you to modify settings to meet your personal trading needs. Create and save layouts that suit your trading style or access our pre-set layouts for maximum ease. Our convenient tear-off windows ensure that you're never far from your next trade, even when working in other programs.
FOREXTrader Charts
FOREX.com's currency charts combine a rich, intuitive interface with easy access to the tools and resources you demand for forex trading.
Our FOREXTrader Charts are fully integrated on the FOREXTrader PRO platform. A streamlined layout makes it easy to access commonly used features and indicators.
Whether you use Stochastics, Bollinger Bands, Moving Averages, Ichimoku or Fibonacci, you can find over 70 technical and line studies right within the charting application.
Identify trends in the market with over 70 customisable technical indicators
Seize trading opportunities directly from the charting window with our integrated dealing buttons.
Visually track your open positions and orders, giving you maximum position management flexibility.
Use the template saver to save your personalised charting setups and apply them to future charts.
Get a closer look at the markets with FOREXTrader Tick Chart.
Our FOREXTrader Charts are fully integrated on the FOREXTrader PRO platform. A streamlined layout makes it easy to access commonly used features and indicators.
Whether you use Stochastics, Bollinger Bands, Moving Averages, Ichimoku or Fibonacci, you can find over 70 technical and line studies right within the charting application.
Identify trends in the market with over 70 customisable technical indicators
Seize trading opportunities directly from the charting window with our integrated dealing buttons.
Visually track your open positions and orders, giving you maximum position management flexibility.
Use the template saver to save your personalised charting setups and apply them to future charts.
Get a closer look at the markets with FOREXTrader Tick Chart.
Wednesday, October 14, 2009
Retail sales hint consumer demand improving
By Lucia Mutikani
WASHINGTON (Reuters) - U.S. retail sales excluding auto purchases rose for a second month in September, raising cautious optimism consumer spending could support the economy's fledgling recovery from the worst recession since the 1930s.
A Commerce Department report on Wednesday showed non-auto sales rose a stronger-than-expected 0.5 percent last month, building on the 1 percent gain reported in August and beating economists' expectations for a 0.2 percent increase.
The data cemented views the economy started growing again in the July-September period after four quarters of decline, even though overall retail sales slumped 1.5 percent as car-buying incentives expired.
"There's solidity, or new strength, in all discretionary spending categories," said Pierre Ellis, senior economist at Decision Economics in New York. "We evidently have hit the bedrock level of consumer spending and can even see a little bit of normalcy going forward."
U.S. stocks were on a firm footing with some help from the retail sales report and forecast-beating earnings from Intel Corp, the world's largest chipmaker, and No. 2 U.S. bank JPMorgan Chase & Co. For details, see.
An unexpectedly big drop in U.S. business inventories in August raised the risk, however, that the economy's third-quarter rebound might miss forecasts for a growth pace above 3 percent.
Business inventories fell 1.5 percent in August, the biggest drop since December, the Commerce Department said. Wall Street economists had looked for only a 0.9 percent decline.
There were also signs of economic healing in Europe. Euro zone industrial output accelerated month-on-month in August and July production was revised upwards, providing evidence the area's economy probably started growing in the third quarter.
CONSUMER SPENDING IMPROVING
U.S. car sales tumbled 10.4 percent last month, the largest fall since August 2005, as the government's popular "cash for clunkers" program ended. The program, which gave consumers cash to trade in aging gas-guzzlers for new fuel-efficient cars, had helped push sales up 7.8 percent in August.
Elsewhere, however, there were solid sales gains across almost all categories in September. Sales were probably supported by back-to-school buying, as well as the best furniture and home furnishings sales since January 2007.
"Underlying consumer demand is a lot stronger than what some people think. Typically the back-to-school is a good predictor for holiday sales," said John Canally, economist at LPL Financial in Boston.
WASHINGTON (Reuters) - U.S. retail sales excluding auto purchases rose for a second month in September, raising cautious optimism consumer spending could support the economy's fledgling recovery from the worst recession since the 1930s.
A Commerce Department report on Wednesday showed non-auto sales rose a stronger-than-expected 0.5 percent last month, building on the 1 percent gain reported in August and beating economists' expectations for a 0.2 percent increase.
The data cemented views the economy started growing again in the July-September period after four quarters of decline, even though overall retail sales slumped 1.5 percent as car-buying incentives expired.
"There's solidity, or new strength, in all discretionary spending categories," said Pierre Ellis, senior economist at Decision Economics in New York. "We evidently have hit the bedrock level of consumer spending and can even see a little bit of normalcy going forward."
U.S. stocks were on a firm footing with some help from the retail sales report and forecast-beating earnings from Intel Corp, the world's largest chipmaker, and No. 2 U.S. bank JPMorgan Chase & Co. For details, see.
An unexpectedly big drop in U.S. business inventories in August raised the risk, however, that the economy's third-quarter rebound might miss forecasts for a growth pace above 3 percent.
Business inventories fell 1.5 percent in August, the biggest drop since December, the Commerce Department said. Wall Street economists had looked for only a 0.9 percent decline.
There were also signs of economic healing in Europe. Euro zone industrial output accelerated month-on-month in August and July production was revised upwards, providing evidence the area's economy probably started growing in the third quarter.
CONSUMER SPENDING IMPROVING
U.S. car sales tumbled 10.4 percent last month, the largest fall since August 2005, as the government's popular "cash for clunkers" program ended. The program, which gave consumers cash to trade in aging gas-guzzlers for new fuel-efficient cars, had helped push sales up 7.8 percent in August.
Elsewhere, however, there were solid sales gains across almost all categories in September. Sales were probably supported by back-to-school buying, as well as the best furniture and home furnishings sales since January 2007.
"Underlying consumer demand is a lot stronger than what some people think. Typically the back-to-school is a good predictor for holiday sales," said John Canally, economist at LPL Financial in Boston.
Tuesday, August 18, 2009
Short Term Rebound for the U.S. Dollar
The U.S. dollar is gaining momentum over weak economic data. The trend should continue over the short/medium term. However, the longer term picture stays bearish for the greenback.
U.S.: The trade balance to widen further?The FOMC meeting of last week was basically a non-event, since the Fed reiterated the need to keep rates low for an extensive period of time, albeit it sees the U.S. economy stabilizing. Rates should again rise in the second part of next year, despite expectations mounting for an increment in December. In fact, after WW2, the Federal Reserve started to increase rates six months following the top in the unemployment rate, which, at present time, might happen sometimes this year or at the beginning of the next. Finally, the Fed has apparently no intention of expanding the purchase of USD 300 billion of longer-term U.S. bonds after the October’s target. With inflation so low, the consumer price index was down 2.1% year-on-year in July, a “wait and see” approach could be the best solution. In reality, economic data remains volatile. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.
U.S.: The trade balance to widen further?The FOMC meeting of last week was basically a non-event, since the Fed reiterated the need to keep rates low for an extensive period of time, albeit it sees the U.S. economy stabilizing. Rates should again rise in the second part of next year, despite expectations mounting for an increment in December. In fact, after WW2, the Federal Reserve started to increase rates six months following the top in the unemployment rate, which, at present time, might happen sometimes this year or at the beginning of the next. Finally, the Fed has apparently no intention of expanding the purchase of USD 300 billion of longer-term U.S. bonds after the October’s target. With inflation so low, the consumer price index was down 2.1% year-on-year in July, a “wait and see” approach could be the best solution. In reality, economic data remains volatile. Angelo Airaghi is a Commodity Trading Advisor, registered with the National Futures Association and the Commodity Futures Trading Commission. He has been an active professional since 1990 working for major international financial companies. In the past 10 years, Angelo Airaghi has been an analyst and commentator for national and international media.
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