Popular Currency Nicknames in Forex Market

Popular Currency Nicknames in Forex Market

Apart from their official names, the major currencies carry special nicknames as well, which are widely spread among Forex traders. Do you want to know from where these nicknames come? So, let us reveal the origins.

USD – the US dollar. The USD received a nickname mainly because calling it simply “the Dollar” might have arisen some confusion. Let us recall that the currencies of such countries as Canada, Australia and New Zealand are also called the dollar. The nickname Dollar or Buck is popular among professional traders. But it was the term “Greenback” that has gained great popularity among Forex market commentators. This term has its history. I will now tell you, it’s very interesting. So, it was during the Civil War in America in the late 1800’s when then-president Abraham Lincoln printed U.S. Demand Notes to finance the war. He printed the front side of it black and the back side green. It was something new, since all currency notes had blank backs in that period. Now, I hope, you have understood how USD received the nickname “Greenback”.

EUR – the European Union’s Euro. The European Union or Eurozone is now using the EUR as its official currency. The circulation of the EUR started not long ago, in 1999, however it is gaining more and more popularity, yielding only to the USD. Fiber or Fibre stands as the nickname of the EUR. According to some sources, it has received that name because the EUR bills are made of cotton fiber.

  

GBP – Britain’s Pound Sterling. In Forex market the GBP is very often called just Pound, Sterling or Cable. The nickname “Cable” came about because formerly the USDGBP exchange rate was transmitted via the Trans-Atlantic telegraph cable, laid between London and New York.

CHF – Switzerland’s Swiss Franc: Swissie, the Chief. The Swissie is mainly spread among professional traders, whereas the retail Forex market prefers the name “the Chief”.

CAD –Canadian dollar. The pair USDCAD is frequently referred to as “the Funds”. This is because the currency pair trades for value one business day for funds, not two business days as in case of other currency pairs. The CAD carries the nickname “Loonie” as well. The loon is the national bird of Canada which is pictured on the one dollar Canadian coin.

AUD –Australian dollar: the Aussie: Aussie is named after a native of Australia.

NZD –New Zealand dollar: the Kiwi. Kiwi is a flightless bird, specific only to New Zealand. Thus it comes to be the national bird of the country and appears on the one New Zealand Dollar coin. Sometimes natives of New Zealand are also called Kiwis.

GeWorko Method - A Real Revolution in Financial World

Financial world already has an opportunity to enjoy an entirely new approach to financial markets research and analysis. The method is the result of a joint work of NetTradeX Corp., one of the leading trading software companies and of IFC Markets, a Forex brokerage company. The method carries the name personal composite instrument (PCI) GeWorko.

The method may sound to you as something complicated but in fact it is very simple. It will allow you creating portfolios from a range of financial assets, available on the platform NetTradeX and, most importantly, to determine the value of one portfolio relative to the other one. As a result you get a new financial asset – PCI GeWorko. Moreover, you can create both a simple structured PCI, when each portfolio consists of one asset, and a complex one with a variety of instruments.

For clarity let us see an example. You decide to trade a simple structured portfolio. So for the first portfolio you select Oil and for the second one SnP500. So now you have OILSnP500 and like in case of currency pairs the first asset stands for the base currency and the second one for the quoted one.

Likewise you can create a complex portfolio, in the first one including, for example OIL, SnP500, Gold and in the second one AUD, USD and Silver.

And take into consideration that the prices of assets are expressed in US dollars.

So, you see that the most attractive thing about portfolio trading is that you are completely free to use your imagination. There are no limits, you select as many assets as you wish, thus creating your own quotation - personal composite instrument (PCI) GeWorko.

Enjoy your Forex trading with IFC Markets!

Rupee, who are you !?

The History of the Rupee

The official currency of the Indian Republic is called the rupee (INR) and the coins are called the paise. One Indian rupee is made up of 100 paise. Paper money comes in allotments of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. Coins come in allotments of 10 paise, 20 paise, 25 paise, 50 paise, one rupee, two rupees and five rupees. 

So how old is the Indian rupee? The Indian rupee history goes back to the 15^th century when Sher Shah Suri (1486–1545), the founder of the Sur Empire in North India, introduced the first rupee. The word “rupee” derived from Sanskrit rūpya "shaped; stamped, impressed; coin" and also from the Sanskrit word "rupa" meaning silver.

The United Kingdom, whose colony was India, was trying by force to put into circulation the pound; however these attempts were not a success. In that period the rupee was spread in other colonies of the UK: Kenya, Qatar, Uganda, Bahrain, etc.. After the recognition of independence of India in 1947, the rupee became the official currency of the Indian republic.

On the front side of the banknote features a portrait of Mahatma Gandhi.

The Indian rupee has its special symbol. It is a blend of ‘Ra’ in Devanagri script and ‘R’ in Roman. It has two parallel lines crossing this ‘Ra’ or ‘R’ which shows that the symbol “is equal to” one Indian rupee. If you look more closely at the symbol, you can notice the robustness of the Indian economy.

Rupee in Forex Currently the Indian rupee is widely traded in Indian Forex market. The rate of the currency pair INR / USD is controlled and managed by the Reserve Bank of India, while other pairs INR / EUR and INR / JPY are volatile and are in a free-floating. At present IFC Markets does not provide INR as a trading instrument. But in the nearest future INR will be included in the list of currencies traded in IFC Markets.

Any Company, dealing with clients should put a very high emphasis on the quality of the client support. Forex brokerages are not exceptions. IFC Markets is a good example of a broker who is doing his best for the clients. The below presentation is a bright example of successful support.

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Gaurav Learns About Currency Pairs and Exchange Rates

The next time when we met I felt that Gaurav was impatient to know more about Forex trading.

-          I am really eager to go deep into Forex, so what am I supposed to learn today?

-          Today I will give you general information about currencies. So let’s start from the beginning. As you know in commodity market a product is sold or bought with this or that currency. And how does it operate in Forex market if the currency itself is the product? The answer is simple. In this market currencies are exchanged for one another.

-          You mean that I can trade with any currency in Forex?

-          Yes, you are right. The currencies are so many in number that The International Committee of Standardization has established a special ISO code for each currency, consisting of three latin letters – the first two letters indicate the country of the currency and the last one the name of that currency. For example INR is the abbreviation of India and Rupee.

-          Oh, great, so USD is United States and dollar, GBP – Great Britain and Pound, JPY – Japan and Yen.

-          Yes you are completely right, my friend. But you see not all currencies are important in Forex market. There are such which are traded more than others. Being the World’s Reserve currency USD is traded mostly. Accordingly currency pairs including US dollar are called major currency pairs. They are the following ones:

EURUSD – Euro vs US dollar

GBPUSD – British pound vs US Dollar

USDJPY – US Dollar vs Japanese yen

USDCHF – US Dollar vs Swiss franc

AUDUSD – Australian dollar vs US dollar

USDCAD – US dollar vs Canadian dollar

NZDUSD – New Zealandian dollar vs US dollar

-          And are there currency pairs which do not include USD?

-          Yes, and such pairs are called major currency cross pairs. For example AUDCAD, GBPAUD, EURCAD, etc.

-          But I don’t understand one thing, Manoj. Why in one pair for example USD stands first, in another second?

-          So, see, if the price of one currency is expressed in US dollars such quotation is called direct quotation.

-          So, GBPUSD, EURUSD are direct quotations, right?

-          Yes, it is right. And if the price of USD is expressed in a currency, such quotation we call indirect quotation, e.g. USDCHF, USDJPY. As you see currencies are traded in pairs which are called currency pairs. The first currency in the pair is base currency and the second one is quoted currency.

-          So, in EURUSD EUR is base currency and USD is quoted currency, am I right?

-          Completely right. Let’s continue, each currency pair has its exchange rate and we call it quotation. Quotation is the price of one currency expressed in the price of another currency. For example when you see the following quotation EURUSD 1.3104 what do you understand from it?

-          I guess that for 1EUR you can give 1.3104 US dollars.

-          Great, Gaurav, you have understood everything.

-          Now, let’s conclude. In Forex market we trade with currency pairs. Each currency pair has its exchange rate or quotation. The first currency in the pair is called base currency, the second one quoted currency. We can assume for better understanding that the base currency is your product and the quoted currency your money. In Forex market there exist many currency pairs. Those which include US dollar are major currency pairs, and those where USD is absent are called major currency cross pairs.

-          Thank you, my friend. You really gave me valuable information. Now I suppose that it is time for me to enter Forex India.

-          No, these are only the first steps, Gaurav. You still have much to study. Be patient and you will enjoy Forex trading soon.

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FOREX CONTEST

Hello, dear Forex traders. I am glad to announce that IFC Markets has started a new contest. Only 13 days left if you want to register and become a participant.

                                Try yourself and be confident in your success!

                                                 START

Let's Talk About Forex

Gaurav Learns What Forex Is in General

The next day when we met I decided to tell my friend about how Forex market was formed, what it is in general and who the main participants of that market are.

-I will now tell you how the Forex (Foreign Exchange) market was formed. Before 1970s the price of a currency was determined by the gold reserve of that country. Each currency had its equivalent expressed in ounces of gold. But soon everything changed. The fluctuating rates came to replace the gold standard. So this is how international Forex market was formed.

- What are fluctuating rates, Manoj?

-Fluctuating rates are the capability of the currency value to change freely depending on the supply and demand for that currency.

-Ok, clear. So I cannot understand how currencies are traded.

-Everything is simple, Gaurav. In Forex market a definite amount of one currency is sold or bought by a definite number of another currency. To make it clearer to you just imagine that one currency is the product, another is the currency with which you sell or buy the product. And you gain profit from trades thanks to floating currency rates.

- Ok, so for example if I trade with EURUSD it means that EUR is the product and USD is the currency, right?

- Yes, you are quite right, my friend. Let’s continue. So what is the advantage of this market you may ask. Imagine a market where you can buy or sell any moment you like; Forex market is open 5 days 24 hours a week. You can trade wherever you want due to online trading; a computer or mobile with internet connection and your trading becomes possible from any corner of the world. What is important for me is that in Forex market you do not have any boss, actually you yourself are your boss. In this sphere you are completely independent, there aren’t even colleagues, accordingly no competition exists.

- Great, so anyone can be involved in this market?

- Actually till 1990s only big financial institutions and banks could participate in Forex market. Forex trading was realized with several million U.S. dollars. In future due to brokerage companies Forex trading became possible for individuals as well. Thanks to margin trading one can trade with 100 000 dollars possessing just 1000 dollars, thus risking his own money. I will tell you about margin trading with more details later. And also remember that there is no international Forex company. Forex is realized due to brokerage companies. At present there are an unlimited number of brokers all over the world, offering their own unique services.

- Yes, my friend you really provided me with valuable information.

- This is only the beginning, Gaurav. Next time we will go deeper into this world.

Let's Talk About Forex

Gaurav Decides to Become a Forex Trader

The other day one of my friends rang me up for sharing his decision with me:

- Hi, Manoj, how are you?

- Feeling amazing, I have just gained 1000USD in Forex market.

- Oh, my congratulations, that’s why I am calling you. I am eager to become a Forex trader like you. I possess 500USD and want to invest it and make thousands of dollars. So, I want your advice on which brokerage company to choose.

- I can advise you IFC Markets, a trustworthy company, but wait. Do you know how to trade?

- Yes, it’s simple. You invest money and get profit.

I couldn’t help laughing.

-Let’s meet and I’ll prove that it is not that much simple, my dear friend.

So, we made an arrangement at 7 o’clock in a cosy café to discuss the matter with a cup of coffee.

 Later in the café:

-So, you are interested in Forex trading? I asked

-Yes, and I am about to invest. What I need to do is to choose the proper broker and start my profitable business. I have a definite amount of money, opportunity to choose a broker and a wish to trade. What else do I need?

-You need much to know before starting this business. Let us meet every day and I will explain the basics of Forex trading to you.

-Agreed, thanks, my friend.

Good News

I am glad to announce that we are becoming more and more day by day. From now on we are already a team and will work more productively since your trust is our pride. We are adopting a completely new approach and are going to present you the basics of Forex in a more available way.  

LINK HERE  - http://aboutforex-india.blogspot.com/p/lets-talk-about-forex.html ||

Follow us every Friday.

Hello, dear traders. I would like to inform you that from this time on the blog will be regularly updated with new posts. If you are interested, follow us every Friday.

NetTradeX

NetTradeX Trading Platform

I have been absorbed by Forex trading for already two years. During this period I have realized my trading ambitions with a range of brokerage companies. While deciding what trading platform to choose, every time I gave my preferance to Metatrader 4. My experience in working with this platform has gone so far, that passing to another one was merely out of the question. But as once I encountered with IFC Markets brokerage company, its trading platform really caught my attention. This platform is actually innovative one, offering its clients a broad range of possibilities for trading in Foreign Exchange market. I am more than sure that it will be valuable for Foreign Exchange in India as well.

I would like to present you the main distinctive features of this platform and what I mainly like or dislike about it.

·         Like everything in this life, the first impression of the platform is its appearance. I somehow like its interface and menu is quite comfortable as well, thought it is a little bit complex for beginners. It would be better if they provide some tutorials how to make use of the platform.

·         What makes NetTradeX different from MT4 is that it gives its traders an opportunity to make a withdrawal request directly from the platform. Very convenient and innovational, don’t you agree?

·         With NetTradeX trading platform you can set up a whole range of orders and their combinations, such orders as Market, Limit, Stop, Pending, Linked, Activated and Trailing Stop mode as well. Moreover, in NetTradeX Trailing Stop order is active on the server, i.e. it works even when the client terminal is turned off.

·         Here you can make opposite transactions with the same currency at the same time without positions closing each other and this is possible through Lock mode.

·         NetTradeX allows to get financial market’s news flow every day with the help of which you make trading decisions more easily and reasonably.

·         A detailed trading account’s information is available. In case you forget what operations you have made, never mind, the platform reflects all your operations and you can see them any moment you wish.

·         NetTradeX trading platform provides a broad range of technical analysis tools, which will give you wider opportunities for technical analysis.

·         The terminal is available in 15 languages. Unfortunately, currently it is not available in Hindi for Forex India, but I hope that in the nearest future we will enjoy the terminal in Hindi language.

I guess that at present this platform is one of the most innovational and multifunctional platforms. Gradually it is becoming better and better by improving its functions and services. 

Contacts: 
web- www.nettradex.com
Facebook - facebook.com/NetTradeX
Twitter - twitter.com/nettradex

New IFC Markets

Great! Finally the new website of IFC Markets is launched. New design, new offers, new services. Enjoy your Forex trading in IFC Markets!

http://www.ifcmarkets.com/

Hello, dear Indians. The festival of Holi is celebrated in India the day after the full moon in March every year. In 2013, Holi was celebrated on Wednesday, March 27. The festival symbolizes the end of winter and the beginning of spring, the season of harvest, colours and joy. On that day the atmosphere in India was wonderful. All the country was like a great rainbow, you could see every colour in all corners of India. Happy Holi to you, dear Indians. May this spring be fruitful and productive for you and may it bring new colours into your life.

Hello, dear Indian Forex traders. The other day I was looking through IFC Markets Facebook page and there was a pleasant surprise. The new website is coming soon. I see that quite promising changes await us. New design, new offers, innovational tools, exclusive instruments. I am looking forward to waking up one morning and seeing a quite new IFC Markets. 

Million Dollar Granny

An old woman named Frau Ingebor Motz has gained 1 million dollars in Foreign Exchange market.

“Thanks to Forex market I became one of the most successful women in Germany despite being unemployed. It gave me a chance to earn a great amount of money. At present I gain 5000 – 10000 dollars per day and I guess that it was not my limit. I am not yet satisfied with what I have obtained”, she says.

It turns out that acquiring a new profession, having a progress and being a success are quite possible at every age and the example of Frau Motz is the best proof of it. Even if you are living the ninth decade of your life, everything is ahead.

Today the old woman is considered the most successful private investor. And young traders have to do nothing but envy her professionalism.

Тill the age of 48 Frau Motz was a common housewife, who was holding the house and bringing up her children. She entered Forex market 10 years ago for the first time. It was her accountant husband that provoked her to dive into that world. Once during a quarrel he scolded her: “You have never been smart enough to earn money”.

These words hurt her greatly and Mrs. Frau intended to prove him that he is not right. Unfortunately the death came earlier. Her husband died leaving her an inheritance of some securities. During 10 years she managed to create an investment package costing over one million euro from securities costing pennies.

So, presently the old woman is buying new securities, is trading in Forex market and in addition to it she receives a scholarship. “The retirement age is not the reason to bring everything to an end”, she says.

Can this example be repeated in Forex India?

New Promo Video Of IFC Markets

I watched this video quite by chance and decided to share my thoughts with you.

History of Foreign Exchange Part 2

History of Foreign Exchange Part 2 | See: Part 1

Floating Exchange Rates

According to the announcement made in 1971 by Richard Nixon, United States would not replace dollar for gold any more. This was the start of  Bretton Woods system disintegration. And later in 1976, due to the Jamaica agreement Bretton Woods system was completely collapsed leading to a system of floating exchange rates.
Since then, depending on the power of economy that prints the money,  currencies fluctuate and have floated in value against one another.  The value of currencies is affected by various factors like interest rates, retail sales, housing numbers, non-farm payroll, etc.

The Forex Market

After the abandoning of Bretton Woods system, institutional investors and banks were the only leading players in the Forex market. In order to trade one was to have great sum of money.
In 1994  Forex exchange appeared already online and gave the necessity of opening Forex brokers. Forex brokers made it possible for common individuals to participate too, as the latters  could trade with  leverage. There was no necessity of  putting up a great sum of money for market trading.

The Market Today

At present Forex market is considered to be the largest financial market on the earth. More than $4 trillion a day pass through the market by its participants. Then, why to give so much importance to the history of foreign exchange? After having studied the long way of  “Gold Standard” , we can say that it would be nice to get a minute fraction of that $4 Trillion each day. Now it’s time to look through the site and learn about Forex trading to be able to make a profit.
Source

History of Forex Part-1

History of Foreign Exchange

The history of foreign exchange greatly differs from that of other financial markets around the world. In this connection it would be relevant to mention the words of a sapient  man who considered that it’s really important for one to know and remember the history and the past of his antecedents, otherwise he’ll  always remain a child. If we try to relate this idea with  Forex  market it would mean that unless one is aware of how  it  came into being he will always remain a novice.  So the fundamental points of Forex history and its beginning are given below.

The Gold Standard

The term “Gold Standard" is hardly unknown to anyone. It stands for indicating something which is the best. It came forth in 1875 as a currency system. In this period countries made decision to fix the exchange rate by gold. So, currencies as backed by gold appeared. The country ought to have certain amount of gold for the given currency whether it’s dollar or not.

Bretton Woods System

Countries were short of money in the period of  World War I and World War II. Some countries like United States and Germany, that were included in the wars,  for some period of time didn’t make use of “Gold Standard” , and in order to provide sufficient money for wars they printed up more money.
Seventy representatives from the Allies made a decision in 1944 to create such a financial system that would give all dominant countries an opportunity to be integrated  in it. They made a system covering fixed exchange rates for currencies. They substituted the “Gold Standard” with US dollar making the latter overall reserve currency. The rest of the countries consequently estimated the value of the dollar.
Bretton Woods also contributed to the  formation of International Monetary Fund or IMF, the International Bank for Reconstruction and Development and the General Agreement on Tariffs and Trade.
Source

Rally Trade

2 DAYS LEFT

 Dear Forex traders, hurry up to register for the contest in IFC Markets. The contest will be held from February 4, 2013 to February 28, 2013. The conditions of participation are the following: you should open a new Real account and fund it with 100USD (leverage is up to the participant). A contestant with the largest trading account balance will be recognized as the first place winner. The same criteria will be applied to recognize other winners taking the rest of the winning places (from 2 to 5).

See More

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