Advantages of Associating with Royal Index UAE
When you are trading in the currency market, it is essential that you have a financial advisor to help you with the right choice of investments. There will be many financial advisors around you, eying only your assets and not your success. Unlike other financial advisors or brokers, Royal Index LLC, functioning in Bur Dubai provides investors guidance and support on all financial investments.
Why Royal Index?
To avail you all the benefits and advantages of trading with Royal Index UAE, we give essential training and orientations for our clients, that many of our competitors do not offer. During our training and orientation sessions, we make our clients understand the risks and advantages involved in forex trading and currency markets.
Our vision is to help investors by identifying the new events unfolding in the international financial market and clarifying all concepts and terms related to the investments. For this, our information and help center work closely with our investor relations department to give competent and outstanding help to all our clients.
Royal Index UAE Advantages
By associating with Royal Index LLC, our clients can get the following benefits:
- zero commission trading
- competitive rates
- buy/ sell program
- advantage of trading with 0.5% of the contract value
- can spread betting with 2 to 5 pips
- no minimum or maximum investment
- trading lots can be one to 30 at a time
At Royal Index Dubai we offer several plans and programs for associates who wish to cooperate and enhance their forex activities. By associating with us you can take advantage of working together with one of the leading investment consultancy in Dubai. To know more about our partnership programs, shoot us an email and get more advantages of associating with Royal Index Bur Dubai.
Benefits of forex trading
ReplyDeleteSeptember 16, 2012 Forex Basics
When one begins to discuss the advantages of investment in the Foreign Currency Exchange Market (Forex) over the Stock or Commodity Market, it is quite easy to sound like a cheerleader and with the same kind of bias. The Forex market offers so many advantages that it is not hard to understand its popularity.
The Forex Market operates 24 hours a day. It is a truly world wide market, and when the sun goes down in one trading center, it is coming up in another.
The Forex market, although it has its trends and cycles, is not locked in the Bear vs. the Bull market mentality of the Stock Exchange. Since all Forex trades involve the exchange of one currency for another, one currency’s hard times opens the door for a profit in another currency. The market is not adversely affected by rising interest rates. When a nation raises rates, generally the currency is strengthened, while rising interest rates tends to depress the stock market.
The combined number of different stock issues on the NYSE and NASDAQ exchanges totals 8000. That is a lot of stocks and it is time consuming to keep up with even a portion of them. There are four major currencies, and only about 34 second tier currencies, to consider in the Forex. Brokerage firms do not stand between you and profit in the Forex. Not only are the brokerage and commission fees almost non-existent, but analysts in the Forex tend to actually analyze in the currency market and not dictate or control the rise and fall of the market.
chow@royalindexuae.com
A guide to forex trading
ReplyDeleteSeptember 16, 2012 Forex Basics
Forex trading hours
The forex trading desk is open 24 hours daily from 17:00 ET Sunday through 16:30 ET on Friday.
Currency Pairs
In normal cases the 24-hour forex trading is currently available in the following 14 currency pairs. EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, EUR/JPY, EUR/GBP, EUR/CHF, GBP/JPY, AUD/JPY, CHF/JPY, EUR/AUD, GBP/CHF.
Dealing Spread
Forex Day Trading’s normal dealing spreads are 3-5 pips for the major currency pairs.
Types of accounts
When it comes to forex trading accounts, there are mainly two types of accounts – mini accounts and standard accounts.
Mini Accounts: Forex Day Trading’s minimum transaction size for mini accounts is 1/10th the size of a standard lot, or 10,000 of the base currency, with a minimum margin deposit of 0.5% (that is, 200:1 leverage). For example, a US$10,000 position would require an initial margin deposit of US$50.
Standard Accounts: The minimum transaction size for standard accounts is 1 lot of 100,000 of the base currency, with a minimum margin deposit of 1% (that is, 100:1 leverage). For example, a US$100,000 position would require an initial margin deposit of US$1,000.
chow@royalindexuae.com
History of forex trading
ReplyDeleteSeptember 17, 2012 Forex Basics
The modern day foreign exchange market was initiated during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world’s major industrial states in the mid 20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states.
Preparing to rebuild the international economic system as World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference. The delegates deliberated upon and signed the Bretton Woods Agreements during the first three weeks of July 1944.
Setting up a system of rules, institutions, and procedures to regulate the international monetary system, the planners at Bretton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group. These organizations became operational in 1945 after a sufficient number of countries had ratified the agreement.
The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value—plus or minus one percent—in terms of gold and the ability of the IMF to bridge temporary imbalances of payments.
chow@royalindexuae.com
Why forex trading?
ReplyDeleteSeptember 17, 2012 Forex Basics
Forex trading has its importance in the life of an investor as chances of making huge profit is higher as the market spread across the globe remains live round the clock. The currency exchange, usually known as forex market, has a daily trade volume of US$1.5 trillion. This astonishing amount is much larger than the volume that is traded in the New York Stock Exchange (NYSE), considered as the pinnacle of financial trading.
The forex trading market is known as an “interbank” market where trades are conducted over the counter (OTC). Rather than trading through a central exchange, the transactions take place directly between the parties involved in the trade. The main centres for the Forex market are located in Sydney, New York, Tokyo, Frankfurt and London, making the market virtually live round the clock.
As the market is not smitten by the rising interest rates or locked in the Bear vs. the Bull phenomenon, traders can gain the maximum out of the market. The advantage of forex exchange is that the traders can make their transactions during anytime of the day or night without waiting for opening or closing of the stock markets. This feature helps those working in different shifts to trade without much effort.
The forex market has its own trends and cycles. As all Forex trades involve exchange of one currencies, the hard time of one currency opens the doors of profit for another currency. Another thing that makes forex trading easier is that one need to understand only four major currencies and about 34 second tier currencies, compared to the umpteen number stock issues in NYSE, NASDAQ or any other stock exchange in the world.
chow@royalindexuae.com
Dollar Trying to Leverage AUDUSD Reversal into EURUSD 1.30 Break
ReplyDeleteSeptember 18, 2012 Daily Forex News
After the exaggerated risk appetite rally last week that leveraged S&P 500 to multi-month highs and nudged EURUSD’s bullish tally to approximately 1100 pips (in less than 2 months), the FX and capital markets were finally taking a break Monday. A pause, however, does not necessarily imply that investor sentiment has conceded to a wholesale reversal. And, unless this underlying fundamental theme can take the reins, the dollar’s recovery will remain out of reach. For the greenback, offered an impressively consistent – yet reserved – advance. The currency advanced against all but the British pound, but the 0.1 percent slide for the market’s most liquid pair (EURUSD) suggests the move held relatively little fundamental depth beyond a mild correction from ‘oversold levels’.
There are other fundamental considerations when it comes to trading the dollar; but given the developments of the past weeks, it is unlikely that any of those other factors will supplant sentiment for the currency’s favor. That means that the next big move in AUDUSD and EURUSD will likely find the two moving in the same direction and at the same pace. Of course, as long as participation (liquidity, volume) is lacking, the relationship can continue to stray. Though we can see the after-effects to a return of strong risk appetite trends easily enough (aggressive market swings and strong correlations), the foundation for the move is better monitored by watching volume figures on benchmark risk measures (like the S&P 500) and volatility measures (VIX or FX VIX).
Euro Fundamentals Contradict EURUSD, EURJPY Rally
Japanese Yen: USDJPY Posts Biggest Two-Day Rally in Three Months
USDJPY extended its post QE3 reversal by tallying a second bullish, daily close through Monday for the biggest two-day advance 122 pips in three months. This perhaps peaks more to the slow pace of this pair in general rather than the recent volatility. Yet, the fact that the yen is dropping against a currency that is equal for risk and was just recently weighed by stimulus should be a major concern ahead of the BoJ meet.
Australian Dollar Leads Market Decline Despite Steady Risk, Improved Rate Outlook
What has driven AUDUSD to its stand out correction from late Friday? The pair’s slide contradicted traditional risk trends as the S&P 500 held above 1460 (though it was technically the first bearish close in five trading days) and the RBA’s 12-month rate forecast is the best in three weeks (calling for only 73 bps in cuts). Separation from thematic fundamentals isn’t uncommon, but it doesn’t usually last.
British Pound Run Growing Extreme With April 1.6300 High In Sight
The title of ‘overbought’ seems to be a more popular fit to US equities or the EURUSD’s aggressive advance. However, by pure consistency, GBPUSD outshines them all. The pair’s six-week run through this past Friday’s close matches the steadiest advance since early 2005. Furthermore, the five-day rally through Monday is the most consistent since April 27. Will this trend end with a whimper or a roar?
Oil Suffers Shocking, 3.9 Percent Decline in Minutes
Gold Threatening a Turn and 1750 Break as Dollar Firms, Volume Crashes
Gold doesn’t require risk trends to keep moving, it can move on the currency-devaluing efforts of stimulus enough. The question is whether the ECB and Fed’s open-ended programs represent enough of an anti-currency drive to justify a steady transition of capital something as liquidity and fungible as the dollar or euro to an asset as expensive and lacking for yield as gold. There is a tipping point.
Courtesy: John Kicklighter, Sr. Currency Strategist, Dailyfx
chow@royalindexuae.com
Few Euro- and US Dollar-specific Releases Puts Focus on Asian, British Data
ReplyDeleteSeptember 18, 2012 Daily Forex News
Since late-July, much of the focus in capital markets has been on two main themes: will the European Central Bank use its balance sheet to help stem the Euro-zone crisis; and will the Federal Reserve ease its monetary policy further to help a struggling US economy enraged by a disjointed fiscal program. On September 6 and then again on September 13, both questions were answered: yes and yes.
Why does this relationship matter? China is Australia’s largest trading partner, and thus, the Australian Dollar is very sensitive to the Chinese growth picture. A strong indicator for weakening Chinese growth has been the price of Iron Ore – Australia’s main commodity export – which has plummeted in recent months from $150.20/metric ton to as low as $86.20/metric ton on September 6 (-42.61%!). The evidence is clear – and our long-held view of a “hard landing” in China is being vindicated (for now).
In the policy statement accompanying the RBA’s Rate Decision, Governor Glenn Stevens issued a more optimistic tone than anticipated, which should be reflected in the Minutes. “Growth has been running close to trend, led by very large increases in capital spending in the resources sector,” he said. “Labor market data have shown moderate employment growth, even with job shedding in some industries, and the rate of unemployment has thus far remained low.” Governor Stevens also noted that domestic consumption was “quite firm” while acknowledging that the Chinese growth picture was worsening. In all, it’s unlikely that the Minutes deviate far from the policy statement. The key pairs to watch are AUDJPY and AUDUSD.
09/18 Tuesday // 08:30 GMT: GBP Consumer Price Index (AUG)
Price pressures are stable in the United Kingdom, though they remain above the Bank of England’s target rate of +2.0% year-over-year. According to a Bloomberg News survey, the Consumer Price Index rose by +0.5% in August, on a monthly-basis, after gaining +0.1% m/m in July. Over the past year, prices eased from +2.6% in July to +2.5% in August.
Inflation expectations have to be tempered right now, following Bank of England Governor Mervyn King’s statement in mid-August that traditional policy measures (i.e. rate cuts) wouldn’t be “effective” in the current environment: stimulus measures that could stoke inflation (by loosening credit and allowing capital to flow more freely through the economy) are off the table in the near-term. With the London Olympics failing to have a meaningful impact on consumption, any kickback in the acceleration of money is unlikely. A higher inflation rate could accelerate the British Pound higher. The key pairs to watch are GBPJPY and GBPUSD.
09/19Wednesday // –:– GMT: JPY Bank of Japan Rate Decision
Typically, the Bank of Japan Rate Decision doesn’t draw much attention; the main rate has been and will remain at 0.10% for the foreseeable future (withstanding the Yen being devalued by a full decimal place – yes, it could take that much to spur inflation for a sustained period of time). But two things are working against the BoJ at present time: regional growth issues are starting to grow; and the Fed’s program will consistently hurt the US Dollar, which will weigh on the USDJPY.
But Japanese exporters can’t afford a stronger Yen, so the BoJ, with its newly-minted dovish Board, might be a bit trigger happy in the wake of reprieve in the Euro-zone crisis (just like on October 31, 2011 perhaps?) to set the Yen back to buy some time. An intervention still is a far-fetched outcome, but it remains on the radar nonetheless. The key pairs to watch are CHFJPY and USDJPY.
09/19Wednesday // 08:30 GMT: GBP Bank of England September Meeting Minutes
chow@royalindexuae.com
At its meeting on September 6, the BoE kept its key interest rate on hold at 0.50% and left its asset-purchase target at £375 billion.In mid-August, Bank of England Governor Mervyn King said that traditional policy measures (i.e. rate cuts) wouldn’t be “effective” in the current environment; hence the British Pound’s strength in recent weeks. Without this threat on the table – and no discussion of new measures that would dilute the value of the Sterling (unsterilized bond-buying resulting in a balance sheet expansion) – further strength by the British Pound could materialize in the aftermath of the release.
ReplyDeleteWe do caution that the Federal Reserve – for whom the BoE has modeled some of its policies after and via-versa – defended nontraditional policy measures and went so far as to implement their own this past week. Perhaps a new program is in the works at the BoE; but the recent upturn in economic data (it is coming in better than expected) would suggest that the recession is easing and the economy is starting to pick up without more easing from the BoE. The key pairs to watch are EURGBP, GBPJPY, and GBPUSD.
chow@royalindexuae.com
The New Zealand economy grew at a rate of +2.4% y/y in the second quarter, the same pace it grew at in the first quarter, according to a Bloomberg News survey. On a quarterly-basis, the economy expanded at a slower rate of +0.4% in the second quarter, down from the +1.1% q/q growth rate in the prior period.
ReplyDeleteThe New Zealand economy is intriguing for a few reasons: its two largest trading partners, Australia and China, are very intertwined themselves so any weakness in the Australian economy is likely to be onset by weakness in the Chinese economy (this is currently materializing); and the New Zealand economy is supported mainly by agricultural trade, which means that rising food prices, so long as they’re at a contained rate, can boost growth (some evidence of this happening). For now, trade has withstood global headwinds, with the July Trade Balance showing a surplus when a deficit was expected, supported by stronger than expected Exports. Although July’s data won’t be taken into account when calculating the second quarter GDP figure, it does offer some evidence that regional trade weakness might be overestimated in the near-term. The key pairs to watch are AUDNZD, NZDJPY, and NZDUSD.
chow@royalindexuae.com