Hello everyone,
I will be glad to answer for all your questions about FOREX in this room.
Welcome!
Hello everyone,
I will be glad to answer for all your questions about FOREX in this room.
Congratulations TEACHER, now you have special place!
Welcome teacher....
hope we can share sumthing nice regarding FOREX trading....in malay we say it 'tunjuk ajarku sifu'
Never Say Never
Don't trade hard but trade smart
First of all, can u tell me what is PPP and how effective PPP in profting FX today?
An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.Originally Posted by dude_89
The relative version of PPP is calculated as:
S= P1/P2
"S" represents exchange rate of currency 1 to currency 2
"P1" represents the cost of good "x" in currency 1
"P2" represents the cost of good "x" in currency 2
In other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency.
I prefer to use 90% of technical analysis in the trading. Other 10% for fundamentals.
Well, i'm not try to be rude but i'm not asking what is your trading method. I want to know how effective PPP in today's forex. Can you give me some example as i have read this before but still don't know how it's affect fx. But this is the main point here.
I'm also a mechanical traders, well newb one. But I play forex just not because of money only, but also because i love to discover why it goes that way. (I'm a science student)
A trader need to have a good sense in life in various aspect, isn't it. Not making our eyes focusing on monitor seeing the ugly graph.
I'm also interested in influence of PPP on FX market.
Actually, don't use fundamentals in my trading to.
PPP is well suited to forecasting exchange rate movements over the months or even years.
For daily operations and forex trading PPP index is not
sufficiently powerful.
i would people to understand the influences regards to the leverage understanding.
would you elaborate the differences and with examples too.
Leverage.
In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a minimum. For example, Forex brokers offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on. But leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as gains.
By the way, FX TEACHER Sheriff is an Elliot Wave trader, so, the people interested in this theory might get a lot of usefull information and details.
Ok. Please tell me how PPP affect in Federal Policy in Keeping or changing interest. Please don't try to run from the question
What about carry trade? Is it another PPP or it's another term? Let's say there a lot of investor live in country A. And they have profit from investing in currency B (it doesn't mean for FX only) and want to take all the profit in currency A. What will happen to monetary policy(explain what is this) whether it will tight it or loose it and interest rate and also the currency if the current interest rate is high or low to both country?
Last edited by dude_89; 04-27-2007 at 09:52 AM.
But i think i want to know more about leverage.. and how to calculate profit with those leverage?
Well easy. In fx let's say u have 1000USD and u choose 1:500 that mean u control 500 000 USD for 1000 USD. Let's say you buy eu at 1.4 but it goes down and you loss 1000 pips. This is how we calculate 1.4-1.3 = 0.1
then u do 0.1 x 500 000 u get 50000 USD loss.too bad
Last edited by dude_89; 04-27-2007 at 12:44 PM.
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