Exchange or currency rate is the unit of one national currency expressed in the units of another national currency.
Oil prices have been falling since June 2014 as increasing supply of crude oil by major producers exceeded global demand for the commodity. Brent crude oil prices are down by more than 64% since June 20, 2014 causing great strain for oil producers who have to repay debts taken when no such downturn was expected. US oil rig count fell by 703 since March 2015 as lower prices led to falling earnings. Since the start of 2015 more than 40 US energy companies have declared bankruptcy.
Developed countries’ central banks carefully conceal from public their short-term plans. However, investors, organizations and currency traders may and must consider them, making the topic interesting. The current article shows how to create fundamental currency indices, based on Synthetic Instruments created through PQM. Examining the relation between fundamental indices reduces risks, when opening long-term positions with the use of the most liquid currency pairs. The research confirms a theory, implying that during certain global crisis phases, central banks may inevitably switch from cooperation to confrontation.
Those who already faced the Trend Following concept know that effective strategies of following the trend suggest dynamic stop loss level movement without profit limitation. The position is kept until the trend is changed and the order is done. With a proper choice of the market entry point the trader switches a position into the breakeven mode and thus relieves the psychological pressure. With this approach, a profit limitation is deliberately not applicable, allowing holding the position for a long time. This approach is also useful as it minimizes the commission fee calculated on the intraday basis that the trader pays to the broker. The Trend-Following strategy uses the market momentum and allows taking profit in the long-term and large-scale trends.
For many traders, engaged in active trading in financial markets, the availability of a large number of trading instruments is very important. If a trader has worked out a trading system (mechanical or visual, based on the recognition of some iterative graphical images) the more instruments are available, the more frequently there may arise opportunities to enter the market.
The trading-analytical platform NetTradeX, developed by a group of highly qualified programmers of a company with the analogous name NetTradeX Corp. (www.nettradex.com), has been recently gaining more and more popularity among traders and investors, trading in financial markets. An active appliance of NetTradeX is observed in such countries as Japan, Iran, India, Indonesia, Arabic countries, Russia and others.
Growing requirements for modern trading technologies and complex interrelations between financial assets drive the development of new approaches to analysis and trading. Such a new approach has been offered by trading technologies development company NetTradeX with the support of financial company IFC Markets. The joint product has been called “Portfolio Quoting Method (PQM)”.