*Philippine Central Bank Holds Key Interest Rate At 4%

(RTTNews) - Philippine Central Bank Holds Key Interest Rate At 4%

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US Dollar Slides To 2-day Low Against Japanese Yen

(RTTNews) - The US dollar plunged to a 2-day low of 90.01 against the Japanese yen at 4:00 am ET Thursday. On the downside, 89.9 is seen as the next target level for the dollar-yen pair. The pair closed Wednesday's New York deals at 90.74.

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British Arms Trader Jailed For Breaching Sudan Embargo

(RTTNews) - A British millionaire-businessman who illegally sold used military personnel carriers to war-ravaged Sudan in breach of an official embargo was sentenced to two years and eight months in prison, and ordered to pay ?5,000 costs.

A Southwark Crown Court in London heard that Andrew Jackson, 46, ignored repeated official warnings not to export the 15 amphibious personnel carriers to the African state (The bloody conflict in that country has already claimed more than 300,000 lives and displaced millions of others). He reportedly committed the offenses between January 2005 and March 2006.

Jackson owns Doncaster-based military equipment-supplier L Jackson & Co, one of the largest suppliers of used military equipment in the world.

He pleaded guilty to first shipping ?322,000-worth of Hagglund BV206s to Norway and then sending them south, and, in the process, knowingly flouted a 2004 British trade prohibition on items which could be used by the Sudanese military to wage war in Darfur.

Steven Smithey, 28, who worked for Jackson, also admitted the charge. He was sentenced to a 35-week imprisonment, suspended for two years, and given a 150-hour unpaid work order for sending three e-mails about the illegal transaction.

Jackson was arrested and his computers seized following a raid on his offices in March 2007.

Judge Nicholas Loraine-Smith told Jackson he could not ignore the number and quality of references provided to the court in the case which made his decision to flout the export law all the more remarkable.

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*US Dollar Slides To 2-day Low Of 90.01 Against Japanese Yen

(RTTNews) - US Dollar Slides To 2-day Low Of 90.01 Against Japanese Yen

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*Iceland Central Bank Cuts Key Interest Rate By 0.5 Percentage Points To 9%

(RTTNews) - Iceland Central Bank Cuts Key Interest Rate By 0.5 Percentage Points To 9%

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Hungary September Industrial Output Rises On Month

(RTTNews) - Thursday, Hungary's Central Statistical Office said in a preliminary report that industrial production rose a seasonal and working day adjusted 3.7% in September, rebounding from the 0.7% decrease in the previous month. This represents the fastest monthly increase in production since March, when output had increased 4.4%.

On a yearly basis, industrial output dropped a working day adjusted 15% in September, markedly slower than the 19.8% decline in the previous month. This marks the slowest rate of yearly decline in production recorded since November last year, when output had fallen 8.4%. Economists were looking for a 17.9% decline.

In the first nine months of the year, industrial production was down 21% compared to the same period of the previous year.

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How To Calculate Profits & Losses

Surely you had ever heard of pips and lots, but you know everything about these terms? How are they calculated? If this is not the case then this section is for you.
To deal with Forex, it is essential to master these concepts. They will help you calculate your profits and losses and so set your stops correctly.

What is a pip?
A pip is the smallest unit of change in exchange rates (see listings). As you can see, the currency pairs are quoted in 4 digits for most. A pip is the last decimal. If the EUR / USD rose from 1.4018 to 1.4019, this means that the euro has appreciated by one pip against the dollar. A pip is equal to 0.0001. In contrast to the USD / JPY, the pip has not the same since the quotation is not only two decimals. A pip is equal to 0.01. You will understand the value of a pip depends on the currency pair for each currency has its own value. It allows each transaction, depending on the currency pair on which you process, calculate your gain or loss.

Now that you know what a pip, you can proceed to its calculation. The value of a pip is equal to the smallest unit of a pair of currencies / exchange rates
Let our previous examples:

For the USD / JPY, the smallest unit of measurement is 0.01 since the listing is done in 2 decimals. Suppose the USD / JPY 90.68 rating, and one deals with a batch of 100 000 Dollars Value of a pip (JPY) = 100 000 * 0.01 = 1,000 JPY
The value of a pip is always calculated in the currency listed (here is the JPY)

To know the dollar amount it can then do the following operation:

Value of a pip (USD) = 1000/90.68 = 11.03 USD

For the EUR / USD, the smallest unit of measure is 0.0001 since trading occurs in 4 decimal places.
Suppose the EUR / USD 1.4018 and ratings that are dealing with a consignment of 100 000 Euros
Value of a pip (USD) = 100 000 * 0.0001 = USD 10
The value of a pip is always calculated in the currency listed (here the U.S.)

To know the euro amount, then just doing the following:

Value of a pip (EUR) = 10/1.4018 = 7.13 EUR

The value of a pip depends also on the price quotation currency.

What is Lot Size ?

Forex, it is possible to batch. It is the investment unit on the market. The standard size of a batch of 100 000E. But according to the type of account you open your broker, the lots are smaller. There are lots of 10 000E and 000E of 1. The latter is often the minimum size to deal Forex with many brokers. Does this sound great but do not panic. Indeed, the consignments are linked with the pips which as you know now are a unit measuring very small. It is therefore necessary to address significant quantities to make significant gains and losses. The lots will actually serve to increase the value of a pip.

Consider an example. You decide to treat using a set of 10 000E. The EUR / USD 1.4018 rating.

Value of a pip = (0.0001/1.4018) * 10 = 0.7133 EUR 000EUR
This means that if the EUR / USD is one pip or loses, you win or lose depending on your position 0.7133 EUR. The value of a pip is constantly evolving as it depends on the price side. However, once your stance on the market, the amount of your winnings or losses will depend on the value of a pip at the time of your entry. Thus, you can calculate your gains or losses.

The simplest remaining still set its gain or loss in money won or lost. The example for the EUR / USD would: gain or loss from $ 40 to a position of 10,000 is made on an upward (downward in the direction of trade) of 40 pips. (40USD / 10,000 = 0.0040 = 40 pips).

Practical Implementation

The EUR / USD rating 1.4018 / 1.4020. You expect a falling dollar. You then buy the euro.

1. Your entry price is 1.4020 (purchase price. 1.4018 is the selling price) since it is the price at which traders are willing to sell you the EUR.

2. You use a lot of 10 000E
The value of a pip is equal to 1 USD or (0.0001/1.4020) * 10000 = 0.7132E during 1.4018 / 20. A week later, you unbuckle your position. The EUR / USD 1.4050/1.4052 then rated Your exit price is to 1.4050, since this is the price at which traders are ready to buy the EUR.

Your gain is 30 pips, making a total of $ 30 or 21.35 euros ($ 30 during resale earned USD (1.4050 at the time of resale of the EUR / USD)

Reasons For Preferring Forex

- No commission on transactions : Unlike brokers on stock markets, Forex brokers do not take no commission (unless otherwise stated). How to remunerate happens then you tell me? And although they are paid, thanks to the spread, which is also the case on the stock markets. Depending on your broker, the spread evolves. It is for you to choose the broker that you like. Our 'brokers & MM' will give you all the information needed.

- Instantaneous executions of orders in the market : On the Forex, you click to get a price and that price will be yours! There are no delays between the time you place the order and the time you are done as is the case on the stock markets. This is an important advantage. If you've dealt a little purse, you probably got to spend a market order and be surprised by the result of your running. Well this is due to execution time. But thanks to Forex, you're done!

- Buy / Sell, regardless of the direction : it is you he happened to want a shorter action and can not do? Yes probably because the stock market, the only way to do that is through the SRD. But as you have already noticed, all the shares are not eligible for the SRD. Some actions are impossible to shorter. With Forex, it is finished. Whatever your view, the pair selected, everything is possible with a single click. It's up to you to decide your strategy and not the market that will impose its laws! Indeed, the Forex, when you trade on parity, you sell one currency and buying another.

- No intermediate : on Forex, you are directly connected with the Market Maker. There is therefore no loss of time or money lost due to intermediate as is the case on the stock markets. All processes that delay the transmission of your order on the market disappear in Forex. This allows your orders to be executed instantaneously.

- The market is not influenced : In stock, when a background, a company or other large shareholder sells his shares, as the fall because they have a strong impact on the market. This is also true in the sense of purchase. Forex, this impact disappears. You say it would disappear completely lie to you but it is very limited. Indeed, liquidity is such that funds or other big players may not significantly influence the market. It is for you all to the market and create a trend!

- Analyzes undistorted : Many analysts work for banks. However, these banks for business clients that their analysts are responsible for noting. You will therefore understand that there is a strong link between the two. The company pressured the bank to get a good rating under pain of what it changes its bank. The bank does not want to lose a client, then it puts pressure on the analyst that it gives a good rating to the company. Thus analysis is published distorted and do not be fooled, this happens regularly, even if it is prohibited. Forex do not exist, analysts are content just to analyze the market, they have no incentive to distort their analysis.

- A choice easier : On stock markets, I can tell you it is the exact number of different titles but it is great. For you, it is therefore a multitude of investment opportunities, which degrades the quality of your positions. Forex, there are only 8 major pairs. Other opportunities are accessible to you but it is easier for you to choose from conviction. You can keep track of all the major pairs, which is impossible on the stock markets.

- A market trend : You should know that the foreign exchange market is a market conducive to strong trends. Unless exceptional circumstances as is the case in crisis, it is rare to see a parity length remained within a range. The investor thus earning opportunities consistent.

- A significant leverage : All the brokers are at your disposal to leverage it can use or not. On each transaction, you can then choose the desired leverage for your profile, all applying the method of money management!

- A significant liquidity : on Forex, it processes daily about 3200 billion dollars which will therefore provide significant liquidity irrespective of the gender that you want to process. Moreover, given that your counterpart is your broker, you will always be treated on parity that offer. Gone are the days where you want to buy a stock on the market promising action but could not due to insufficient liquidity.

- An open market 24/24H : Forex is a market that never closes, except on weekends but this is not the market closes, your broker that you simply forbidden treat. Your broker offers you the opportunity to address 23h Sunday 22h to Friday. You can then treat any time of day, while returning from office for example which is impossible on the equity market. In addition, it allows you to avoid gaps of these openings are very common on the stock markets and can be very harmful to your wallet.

- Information accessible : Unlike the equity market, all information is immediately available through your broker or specialist websites. You do not need a subscription to track ads like this happens on stock markets.

The Difference Between Fundamental Analysis and Technical Analysis Trading

Technical forces and fundamental forces are the two main drivers of the forex markets. They both give you valuable information but is one better than the other?

Fundamental forces include things such as interest rates, balance of trade data, economic and financial reports, money supply etc. Technical forces on the other hand are simply a reflection of the fundamental analysis at the current market price.

In the past, most professional traders have primarily used fundamental analysis to determine their trades. With many hours each day devoted to trading they were able to invest the time required to do this type of analysis properly. However most amateur traders simply do not have the time it takes to do this type of trading properly, without taking short cuts and seriously compromising their data.

For professional traders, this isn't as much of an issue. Because they trade 24/7 and are always watching the markets, they are able to trade with the precise timing you need to move with the markets. This is why fundamental traders are never far from their trading platform and are always ready to trade.

Everyone else who doesn't have the time to spend watching the markets is too far behind the action and ends up getting taken for a ride. To be successful you must be ready to react in an instant.

The key to understanding how fundamental analysis works is realizing that the underlying market data is NOT important. All you need to be concerned with is the market's reaction to that data.

It's important to note that most fundamental data is projected, meaning that the projections change based on the release of news or reports, rather than being created by them. What this means to fundamental traders is the timing of analysis is the most important thing and you profit due to the swing in market reaction.

Technical analysis, on the other hand, requires a lot less time and effort. It also allows you greater flexibility and mobility in the markets. Technical analysis, being based on fundamental analysis at the current market price, gives you a shortcut as all the fundamental work has been done for you by the market. You simply establish your trading conditions and ride the trend.

As you might have guessed, trend spotting is a crucial skill in technical analysis. Successful technical traders are able to identify, confirm and enter a trade with just a few key indicators. And they give themselves enough time in the trade to realize profit targets while identifying, confirming and exiting the trend before it comes to an end.

That's why I much prefer trading based on technical analysis -- you still get all the benefits of fundamental analysis (with all the hard work done by the market) but you can trade in just a few minutes each day and make more profit with less work.

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