Friday 31 July 2015

Beige Book

The Beige Book is a report by the Federal Reserve and is considered a major market mover for the US Dollar.
The Beige Book is published eight times a year, generally one week before the meeting of the FOMC. The name, "beige book" replaces the full title: Summary of Commentary on Current Economic Conditions by Federal Reserve District.Beige Book: what is it?
Essentially, the Beige Book gathers in a unique relationship to the data provided by the Federal Districts of the Federal Reserve about production, consumption, sales, financial and banking, energy, agriculture, etc. to help provide a true and full of 'economy of the district to which they refer.
The 12 Federal Districts that make up the central body of the Federal Reserve provide different reports, each relative to its district of competence.
The contents of the Beige Book are, in substance, the representation of the topics that will be discussed at the next FOMC meeting.Beige Book: the only one open to all
The Beige Book is not the only source of information used by the Federal Reserve, but is the only one to be made available to anyone and in full online. There are in fact also the "Green Book" and the "Blue Book" containing estimates of economic and monetary policy proposals that will be subsequently discussed by the Federal Reserve and that, however, are private publications, reserved to the members of the FOMC.Beige Book and Forex: such reactions can arouse?
Although the publication of the Beige Book is always eagerly awaited, generally the release of the report has very limited effects on the short term. On the contrary, this report gives way to a series of speculations and forecasts among analysts and investors about the future of monetary policy of the Federal Reserve.
The modest impact on the very short term is also due to the linguistic style of the Beige Book, deliberately difficult to decode. However, investors and analysts are waiting for the publication of this report because it can give you, in the long run, information about the evolutionary possibilities of the Fed's monetary policy: for example, about issues that could lead to the change of interest rates and / or reduction of Quantitative easing.

Bearish and Bullish

Bearish and Bullish, sometimes even in Italian Bears and Bulls, respectively are two ways to call the approach to bearish and bullish.

Bearish may be a trend, or approach a trader bearish, bullish on the contrary indicates the bullish movement.

bearish 3

The Bearish 3 is a bearish continuation pattern consists of two long candles downward (in the illustration black, or red on many platforms) with a central series of candles from the smaller body, which generally remain in the range indicated by the first bearish candle .

Monetary Base

The monetary base is the aggregate of legal currency (coins and notes) and financial assets in convertible currency. In darkened words, the monetary base is the different degrees of liquidity present in the financial system.

The monetary base is the total of notes and coins in circulation added to the reserves (mandatory and optional) and deposits held with a financial system (in our case the Eurosystem).

The monetary base is therefore a liability in the balance sheet of the central bank (in our case the European Central Bank). For this is announced periodically by the banks and is considered a market mover of medium impact.

Bank of England

The Bank of England, or the Bank of England is the central bank of the United Kingdom. The current bank governor is Mark Carney, who succeeded Mervyn King. The Bank of England was founded in 1964, nationalized in 1946 and made independent from the government in 1997.
The Bank of England is responsible for:

    
promote and maintain monetary and financial stability in the UK,
    
adjust the exchange rate policy,
    
ensure the distribution of the pound in England and Wales
    
lend to commercial banks.
Since 2009, the Bank of England by the so-called Asset Purchase Facility (APF), a securities purchase plan aimed at improving the liquidity situation in the market. At the same time, the bank carries out the plan of quantitative easing (QE).
The MPC is the Monetary Policy Committee, which is the decision making body of the bank.Once a month a few days away from the meeting of the board of directors of the bank, it is published in the minutes of the MPC.The minutes of the MPC
Minute by MPC are released monthly, 13 days after the official announcement on interest rates by the Bank of England.
The response of the minute is written in the form: XXX.

    
The first number indicates how many of the members have voted because the rates were increased.
    
The second number indicates how many voted in favor of a rate cut.
    
The third number indicates how many have voted to keep them unchanged.
The publication of the minutes is interpreted as a market mover for the Forex market. It is, in fact, a useful tool to predict future decisions of the MPC.

Bollinger Band

Bollinger Bands (which are named after their inventor John Bollinger, author and American financial analyst) are a statistical tool used in technical analysis of the Forex market and are used to assess the market volatility, or to indicate the intensity of the movements , in terms of trade.
 

When the market takes place a few exchanges, Bollinger bands tend to decline. On the contrary, when the trading volume increases, Bollinger bands tend to expansion.
phenomena

- Bollinger Bounce:
Looking at the graph, you will notice how the candles of the prices tend to reposition themselves within the bands, this phenomenon is called "bounce Bollinger".

- Squeeze:
When the market is in terms of trends and bands suffer a narrowing, or a squeeze, it can be a sign of an impending breakout.

BOJ - Bank of Japan

Bank of Japan (BoJ)
The Bank of Japan (often called by the English name, Bank of Japan, or BoJ) is the Japanese central bank headquartered in Nihonbashi, Tokyo.
History
The BoJ is born after the Meiji Restoration (the change of the social structure and political Japanese in the second half of the 800 gave back the power to the emperor, after centuries of domination shogun). In 1871, the Meiji Act eliminated the currency in circulation until then, finally setting up the circulation of the Japanese Yen.Mandate
According to the statutes of the mandate of the Bank of Japan it will establish the power to:

    
Decision and implementation of monetary policy, independent of the government.
    
Issuance and management of money.
    
Promotion and implementation of policies aimed at the stability of the financial system
    
Treasury activities, safety and the like.
    
International financial activities.
    
Compilation of data, economic analyzes and related research activities.
The Governor of the BoJ
The new governor of the Bank of Japan, at the end of February and appointed successor of Masaaki Shirakawa is Haruhiko Kuroda.
In early spring 2013, the Bank of Japan is in the world spotlight for having initiated a monetary easing that has been defined by many revolutionary.
The purpose of this plan is a series of asset purchase, is the expansion of the monetary base of the Bank and the fight against deflation for years oppresses the Japanese economy.

BaFin

BaFin (Bundesanstalt Für from Finanzdienstleistungsaufsich) is a regulatory body Forex born in Germany in 2002. The federal authority for the supervision of the financial sector is a public organization in an independent character and subject to strict technical and legal supervision of the Federal Ministry of Finance.
Being a public organization, the BaFin draws funds from contributions and fees from the institutions that submit to his watch.Goals
The BaFin (in English: Federal Financial Supervisory Authority) arises to ensure the proper functioning of markets along with maintaining the stability and integrity of the German financial sector.
Among the functions associated with BaFin fall:
- Banking Supervision;- Supervision of insurance systems;- Supervision of the stock markets;- Cooperation with the German Bundesbank.
- For more information:

    
Please visit BaFin.de (available in English and German)

Wednesday 29 July 2015

Average True Range (ATR)

The Average True Range is a statistical indicator used to measure the market volatility created by Welles Wilder and described for the first time in 1978, from his book "New Concepts in Technical Trading Systems".

In general, the ATR is a gauge of volatility and is calculated as a moving average of the amplitude of the prices of a particular period.
True Range and Average True Range

The average true range is a moving average (Average) of the true range of the last "N" periods (generally 14 days).

- The True Range is defined as the difference between:

     The maximum and the minimum today,
     The maximum of today and yesterday's close,
     the minimum of today and the closure of yesterday.

Austerity

Speaking of Austerity refers to a state of reduced costs and increased parsimony in the financial sector. The austerity measures, are generally adopted by governments in an attempt to reduce costs, with the aim of tightening literally deficit (deficit) budget.Austerity: unpopular and controversial
Generally, the austerity measures are unpopular because they tend to lower the amount and the quality of services and benefits normally provided by the government.
Furthermore, austerity is a highly debated topic which opposes a school of thought that believes that in times of economic weakness, fiscal austerity will help to curb the growth.Background
Since 2009, many countries have been forced to take austerity measures unprecedented, so much so that in 2010 the austerity has been recognized by the G20 as a tool against the crisis.
The measures of "austerity" were considered necessary to reduce the debt that has reached levels Recordo because of actions taken by countries to stimulate their economies as a result of the financial shock and the global crisis of 2008.

Aussie

Slang term used to refer to the Australian dollar.

Sometimes the US dollar is called greenback and the Canadian dollar loonie, so the Australian dollar aussie called to distinguish it from other currencies into dollars.
It is also indicated with $ A $ or AU, as well as with AUD.

Capital increase

Carry out the capital increase means determining a change in share capital established at the time of birth of the company.

The ways in which we can realize the capital increase are twofold:

     the company issues new shares;
     now increases the value of the securities already in circulation.

The company intends to proceed with the capital increase has to decide according to which mode to do so, choosing from the following options:

     capital increase in payment: the subscription of new shares is made by payment of a fee.
     scrip: assigning new shares free of charge to existing shareholders.
     capital increase in mixed form.

Generally a company decides to carry out a capital increase to pay because it needs cash to invest or, as a result of financial problems, to replenish the capital.

AUD / USD

AUD / USD is the abbreviation for the return of the Australian dollar and the US dollar, the currency pair that tells us how many dollars (quote currency) are needed to buy an Australian dollar (base currency)
The trading on the AUD / USD is also trading sull'Aussie said.AUD / USD: as you read?
The value of the AUD / USD says in other words that is worth N $ 1 Australian Dollar. For example, if the pair is trading at 1.50 means that serve 1.5 dollars (USD) to buy an Australian dollar (AUD).AUD / USD: what it depends on?
AUD / USD is affected by factors that affect the value of the Australian dollar and / or the US dollar in relation to each other and with other currencies. For this reason, the interest rate differential between the Reserve Bank of Australia (RBA) and the Federal Reserve (Fed) tends to affect the value of the couple.
Indeed, when the Fed intervenes in market activity to make stronger the dollar, the value of the AUD / USD may decrease due to a strengthening of the US dollar against the Australian Dollar.Correlations
The AUD / USD tends to have a negative correlation with the USD / CAD, USD / CHF and USD / JPY because the AUD / USD is quoted in US dollars, while others are not.
The correlation of USD / CAD could also depend on the positive correlation between the Canadian dollar and the Australian dollar (because both have similar economic structures and because they are both resource-based economies).

Sunday 26 July 2015

AUD

AUD is the abbreviation indicating the Australian dollar, the currency in the Commonwealth of Australia and the Pacific were insulted Nauru, Tuvalu and Kiribati.

The Australian Dollar is made up of 100 cents and sometimes referred to as A $ or AU $.
brief history

The Australian Dollar was coined for the first time February 14, 1966, when he replaced the Australian pound. At the same time it was pegged to the British pound through with a change 2.5 to 1.

In 1967 he left Australia for the for the Pound to switch to an anchor with the US dollar. In 1976 the peg became movable in relation to an index based on trade. Finally, in 1983 all'AUD was allowed to float freely.

Ask

Literally in English "ask" means 'demand' and is the term used in Forex to indicate the price at which sellers wish to place a currency pair.

This price is also called "Ask Price" or "Ask Rate" indicating substantially the offer.

ASIC

The ASIC (Australian Securities and Investment Commission) is one of the regulators of the Forex market; it is an Australian institution, government and independent, which aims to ensure the transparency and accountability of financial markets Australians.ASIC: objectives
Among the objectives stated by the fall:
- Maintaining and improving the performance of the financial system (and entities related thereto);
- The promotion and the information necessary for investors and consumers of financial system;
- Management of legal and procedural regulations;
- Inform consumers and investors about the comrades or organizations that have been approved.ASIC: consumer protection
The ASIC is responsible to regulate Australian companies, markets and financial services and organizations providing investment instruments, credit insurance, and doing so to ensure an efficient and honest conduct of financial transactions in the protection of the consumer.
- For more information:

    
Please visit ASIC.gov.au

ARS

ARS is the symbol or abbreviation, used to indicate the currency of Argentina, the Argentine Peso Nuevo. Every Nuevo weight consists of 100 Centavos and sometimes referred to by the symbol of the dollar ($); to avoid confusion, Argentines indicate the dollar uses the symbols U $ A, or US $.
brief history

The Nuevo Peso Argentino was used for the first time in 1992, when he replaced the Austral at a rate of 1 peso per 10,000 australes. Other names given to the weight include: nuevo convertible peso and the convertible peso.

The Nuevo Argentine Peso (ARS) has been pegged to the 1 to 1 parity with the US dollar between 1992 and 2001. In 2002, the weight came to depreciate by 75% to raise the level of competitiveness and promote exports.

Friday 24 July 2015

ARIF

ARIF (Romande Association of Financial Intermediaries) is a regulatory body Forex nonprofit based in Geneva (Switzerland) in 1999 (namely 15 March) in order to combat money laundering and promoting prevention in this phenomenon. As of 2009, FINMA has recognized ARIF standards for self-regulating the independent management of assets.
ARIF purposes are:

- Guarantee the respect of legal obligations towards the federal authorities
- Arrange a control system that allows the fulfillment of legal obligations on the part of financial intermediaries that, in case of violation, be sanctioned.
- Arrange a communications system with affiliates ARIF
- Ensure a sufficient number of members and adequate training enabling ARIF same can fulfill its tasks by avoiding conflicts of interest.

- For more information:

     Please visit ARIF.ch

API - Application Programming Interface

An API (Application Programming Interface) is an interface or "intermediary" that allows a software program to interact with other software.
The sharing of information

In the context of forex trading, an API is the interface or platform that allows the platform to connect with the market. APIs have multiple features that facilitate the sharing of information, including real-time forex quotes, trading and commands "buy" and "sell".
Why is it important for brokers

The service API is offered by almost all the major forex brokers. Since the nature of forex trading makes fast preferable automated trading compared to manual trading for most traders, a reliable API is an important differentiator for a brokerage firm forex, ensuring stable operation of the platform and the execution of operations.

Technical Analysis

      Technical Analysis: The art of predicting price movements on the currency market, through the study and analysis of charts, signals and the market sentiment.

The idea behind technical analysis is that by analyzing the historical movements in prices can determine the current trends and possible future price movements themselves.

A fundamental principle of holding technical analysis is the idea that in the pattern of prices is possible to identify a number of sequences (patterns) that are repeated in history.

It 'important to note that technical analysis is not a science, but it is indeed very subjective and tends to be particularly suitable for the market Forex that being active H 24, provides a continuous stream of data that can be used for the statistical interpretation .

Fundamental Analysis

Fundamental analysis is placed to assess the intrinsic value of a country because the judgment of future performance, you can consider the possibility of opening positions in the forex market to take advantage, anticipating trends on the currency market.

Therefore, fundamental analysis is a process that takes into account social, economic and political influence on supply and demand of currencies.

In a small change it can be said that if the current analysis of the economy of a certain country looks good, it is possible that the currency tends to strengthen.

Fundamental analysis is the consideration of certain factors, commonly called Market Mover. These factors are analyzed and forecasted by analysts, when the expected results are different from those observed, the market may be delayed (whether negative or positive), that is why we are called market movers.

Budget analysis

The analysis of the budget is intended to represent the company's activity in terms of economic, financial and equity. The analysis of the budget is called static when taking into account the study of the indexes; and dynamic when it analyzes the flows.
The first aim of the analysis of the budget is verified, made through a general overview on the progress the company, the economic balance of the undertaking should be obtained by complying with two conditions:

    
the revenues from the business activity should cover costs and ensure a return on capital invested by the shareholders of the company.
    
the company as a whole should have a financial capacity.
When it comes to corporate budget often he means the financial statements to be drawn up by the company once a year and made public. The financial statements consists of the following documents:

    
Balance Sheet
    
Income Statement
    
Notes

AMF

The Financial Markets Authority (AMF) is a forex regulator: it is a body that sets the rules of conduct and obligations for those who provide investment services. The purpose of the AMF is to protect investors and the proper functioning of financial instruments.

AMF: Financial Markets Authority, is an independent public organization with legal personality and financial autonomy founded in 2003 with the Financial Security Act and with the aim to improve and raise the profile of the financial regulatory system of France.

- For more information:

     website AMF-France.org.

Alpari FX

Alpari is a broker specializing in forex and CFD headquartered in UK and various locations around the world.

Alpari offers trading for customers around the world on his platform MetaTrader 4 and MetaTrader 5.

     Website: www.alpari.com

to the best

An order "at best" has the conditional statement to be compiled only and only at a specified price or better.

Unlike a normal order, a market order will expire if the specific price target is reached and / or exceeded. The percentage of trade "at best" on the market, compared to the general number of transactions, depending on the liquidity and the state's robust economy.
Order to understand better

If the price of an asset is falling, the investor will hardly be able to execute an order "at best" because buyers wait for further falls.

For example, if a share is trading at $ 10, a trader can place a market order to sell for $ 10.10, in other words, any price greater than or equal to $ 10.10 will trigger the sale.

ADX (Avarage Directional Index)

The indicator ADX (Average Directional Index) is a statistical tool used to measure the strength or momentum of a trend.

The ADX indicator is used in the FX not to determine the direction of a trend, but to determine the intensity; in other words, the ADX indicator is used to determine if the market is in a trend phase or during sideways market.
ADX: basic lines

The Average Directional Index is an oscillator which can take values between 0 and 100:

- Above the line 50: the oscillator ADX indicates a phase of strong trend

- Below the line 20: the oscillator ADX indicates a weak intensity of trend and, therefore, congestion in the market (stage side).

ADL - Advance Decline Line

ADL, Advance Decline Line, is an indicator of trends in the Forex used to identify and confirm the strength of a trend or for possible reversals.

The application of the indicator in the Forex ADL provides a comparison between the number of times when the market advances and the number of times when backs, in a specified time frame.
The indicator ADL

ADL = (number of bars on the rise - the number of bars down) + ADL value of the previous period

ADL - Advance Decline Line
Signal ADL

    
Increase the ADL and price - good condition dell'uptrend
    
ADL decline and prices - good condition of the downtrend
    
Divergence between ADL and prices - can pause / reversal of the trend
Trading with the indicator ADL
In general, when the market is under uptrend and the indicator ADL is falling (thus forming a divergence) is possible that the current trend is losing strength and is next to the reversal. If the market is trending upward and the same happens to the ADL line, the situation is stable and the current trend is solid.
A divergence between the indicator and price is an alarm; a factor of divergence indicator for the ADL can not last long, so the ADL can not be used as an indicator of time.
On daily basis, the ADL can be used to determine the strength and length of the trend of short-term intra-day forex. On weekly basis, the indicator ADL may be more useful for comparisons of trends over long (perhaps annual).

Wednesday 8 July 2015

Austerity

Speaking of Austerity refers to a state of reduced costs and increased parsimony in the financial sector. The austerity measures, are generally adopted by governments in an attempt to reduce costs, with the aim of tightening literally deficit (deficit) budget.
Austerity: unpopular and controversial
Generally, the austerity measures are unpopular because they tend to lower the amount and the quality of services and benefits normally provided by the government.
Furthermore, austerity is a highly debated topic which opposes a school of thought that believes that in times of economic weakness, fiscal austerity will help to curb the growth.
Since 2009, many countries have been forced to take austerity measures unprecedented, so much so that in 2010 the austerity has been recognized by the G20 as a tool against the crisis.
The measures of "austerity" were considered necessary to reduce the debt that has reached levels Recordo because of actions taken by countries to stimulate their economies as a result of the financial shock and the global crisis of 2008.

Capital increase

Carry out the capital increase means determining a change in share capital established at the time of birth of the company.
  1. The ways in whichwecan realizethe capital increaseare twofold:
  2. thecompany issuesnew shares;
  3. nowincreases thevalue of the securitiesalreadyincirculation.
The company intends to proceed with the capital increase has to decide according to which mode to do so, choosing from the following options:
  • capital increaseinpayment: the subscription ofnew sharesis made bypaymentof a fee.
  • scrip: assigningnew sharesfree of chargeto existing shareholders.
  • capital increaseinmixed form.
Generally a company decides to carry out a capital increase to pay because it needs cash to invest or, as a result of financial problems, to replenish the capital.

ADF (Franco Andorra)

ADF is the abbreviation symbolic that means the currency of the Franco Andorra. The Franco Andorra was replaced in 1999 the Euro (EUR).
Before being replaced by the single currency, the Franc of Andorra was "anchored" to parity with the French Franc, but unlike the Principality of Monaco, there was no formal difference with France and, for this, the coins / banknotes de Andorra have never been printed.

ACU - Asian Currency Unit

The ACU (Asian Currency Unit) is the union of Asian currencies, like the euro currency union, which was the precursor of the Euro. The Asian Development Bank is an advocate of the feasibility studies and the formation of the union.
The biggest barriers to the creation of the ACU have been the choice of currencies to be included, the large mismatch between the various regional currencies and the economic crisis between 2007 and 2008.
There had already been a number of financial maneuvers that included monetary groupings in Asia, but the ACU is built on an individual structure, is not sponsored or used as a means of exchange between the participating countries.

ACI - Association Cambiste Internationale

Association Cambiste Internationale (ACI) is the international body of the Foreign Exchange market professionals working in collaboration with other regulators of the market.
The association is based in Paris and is part of a larger number of national associations of forex brokers ('Cambiste'). The ACI members are part of the field of financial trading currencies, precious metals, stocks etc; for a total of about 13,000 international members from more than 60 countries worldwide.
The purpose of the association is to disseminate a code of ethics in the financial markets through education courses and training to the "best practices" universally recognized (The Model Code).
The Association Cambiste Internationale was founded in 1955 in Paris and its history merged with that of the financial markets.
For more information and details, please consult the corporate website AciForex.org