Buying and Selling Currencies

Traders can generate profits (or losses) whether a currency is rising or falling by buying one currency, which is anticipated to gain value against another currency or selling one currency, which is anticipated to lose value against another currency. Taking a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. Alternatively, a short position is one in which the trader sells a currency that he anticipates to depreciate and aims to buy the currency back later at a lower price.
Buying or selling currencies in response to economic or political events which occur are reactive, whereas buying or selling currencies on anticipated events is speculative. The bulk of currency activity is generated by market participants anticipating the direction of currency prices. In general, the value of a currency versus other currencies is a reflection of the condition of that country’s economy with respect to the other major economies.It is the trader’s option to take either a conservative or a more risk-taking approach. Employing a conservative approach, the trader establishes and liquidates positions quickly and efficiently to capitalize on even the slightest of price fluctuations, using limit and stop orders to manage risk. A limit order is placed to ensure a position is established once a price level in the market has been reached.* A stop order is placed to automatically liquidate a position at a chosen price level in order to limit potential loss on a particular trade. By placing orders in relation to technical support and resistance levels, the trader may profit incrementally from the minor price fluctuations that occur each day.

ForexCharts by eSignal

ForexCharts by eSignal is a complete charting package developed by a leading provider of real-time market information and award-winning products and services. The ForexCharts by eSignal package provides indicators and drawing tools for trend analysis and to identify potential entry and exit points, and includes the following features:
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FOREX TRADER

Advanced trading tools with up to the second position and account information.Designed to run in a web browser environment, FOREXTrader.java supports multiple operating systems and web browsers.FOREXTrader.java utilizes push technology to provide real time quotes and instantaneous updates about your open positions, P&L, margin and account balances. The Java Edition also offers clients the ability to trade on the platform in 5 different languages, including English, Chinese, Japanese, Russian, and Spanish.

FX Auto

FX Auto is an independent provider in automated trading systems. With more than 50 unique automated forex trading systems to choose from, FX Auto's simple user interface and advanced strategy management capabilities help you create custom trading portfolios with pre-defined signals that will automatically execute trades according to your specifications. With FX Auto you can:
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Track and monitor all trades in an account Custom build your portfolio and back-test Choose from over 50 strategies developed by money managers and other leading research groups and combine them to build a trading system portfolio. You can also choose from pre-built portfolios and then customize them by adding or removing trading systems. FX Auto gives you the ability to back-test each strategy independently, or analyze your systems portfolio as a whole.

Today's Market Update July 10, 2009 5:32 AM

Risk aversion was evident in the market again today. Stocks are generally down in Europe, EUR/USD is lower and the yen has made additional progress. Yen gains accelerated around the London open before running into sellers, USD/JPY is modestly lower but EUR/JPY and AUD/JPY have both registered significant falls. The USD posed little reaction from comments made at the G8 apparently aimed at its dominance as a global reserve currency. Better than expected industrial production data this morning from France and Italy had little impact. However, insofar as these data come on the back of this week's better German data they do soften the economic outlook in the Eurozone. UK PPI inflation data was weaker than expected. This will stir up additional interest in what policy decision the BoE will likely take in August following its decision yesterday not to increase its asset purchases plan.
UK Jun PPI output fell -1.2% y/y. The weakness in this series is in contrast with that of the CPI. The latter is edging lower but is proving to be more stubborn on the downside than the market has been expected. The failure so far of CPI (at 2.2% y/y in May), to fall below the BoE's 2.0% y/y target may be a factor in the yesterday's decision by the MPC not to announce further quantitative easing. In contrast the PPI highlights an absence of underlying inflationary pressures. June CPI is due next week, the market expects a fall to 1.8% y/y. Given that the BoE has apparently deferred a decision on QE, the August MPC meeting will now be a crucial event for the UK markets. This morning cable has edged lower in tune with the more risk adverse tone of the market today. Of interest, is that EUR/GBP is holding below last night's close, re-establishing its downtrend and suggesting that sterling continues to find support in yesterday's decision by the BoE not to extend its QE program.