Something Interesting in Financial Video July 2016

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Trading and training video (from youtube for example) about forex and financial market in general.

Please upload forex video you consider as interesting one. No direct advertising and no offtopic please.

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Forum on trading, automated trading systems and testing trading strategies

Something Interesting in Financial Video August 2013

Sergey Golubev, 2013.08.26 15:50

83. How Banks, Hedge Funds, and Corporations Move Currencies

Behind central banks in terms of size and ability to move the foreign exchange market are the banks which we learned about in our previous lessons which make up the Interbank market. It is important to understand here that in addition to executing trades on behalf of their clients, the bank's traders often times try to earn additional profits by taking speculative positions in the market as well.

While most of the other players we are going to discuss in this lesson do not have the size and clout to move the market in their favor, many of these bank traders are an exception to this rule and can leverage their huge buying power and inside knowledge of client order flow to move the market in their favor. This is why you hear about quick market jumps in the foreign exchange market being attributed to the clearing out the stops in the market or protecting an option level, things which we will learn more about in later lessons.

The next level of participants is the large hedge funds who trade in the foreign exchange market for speculative purposes to try and generate alpha, or a return for their investors that is over and above the average market return. Most forex hedge funds are trend following, meaning they tend to build into longer term positions over time to try and profit from a longer term uptrend or downtrend in the market. These funds are one of the reasons that currencies often times develop nice longer term trends, something that can be of benefit to the individual position trader.

Although not the typical way that Hedge funds profit from the market, probably the most famous example of a hedge fund trading foreign exchange is the example of George Soros' Quantum fund who made a very large amount of money betting against the Bank of England.

In short, the Bank of England had tried to fix the exchange rate of the British Pound at a particular level buy buying British Pounds, even though market forces were trying to push the value of the Pound Down. Soros felt that this was a losing battle and essentially bet the entire value of his $1 Billion hedge fund that the value of the pound would decrease. The market forces which were already at play, combined with Soro's huge position against the Bank of England, caused so much selling pressure on the pound that the Bank of England had to give up trying to prop up the currency and it preceded to fall over 5% in one day. This is a gigantic move for a major currency, and a move which netted Soros' Quantum Fund over $1 Billion in profits in one day.

Next in line are multinational corporations who are forced to be participants in the forex market because of their overseas earnings which are often converted back into US Dollars or other currencies depending on where the company is headquartered. As the value of the currency in which the overseas revenue was earned can rise or fall before that conversion, the company is exposed to potential losses and/or gains in revenue which have nothing to do with their business. To remove this exchange rate uncertainty many multinational corporations will hedge this risk by taking positions in the forex market which negate any exchange rate fluctuation on their overseas revenues.

Secondly these corporations also buy other corporations overseas, something which is known as cross boarder mergers and acquisitions. As the transaction for the company being bought or sold is done in that company's home country and currency, this can drive the value of a currency up as demand is created for the currency to buy the company or down as supply is created when the company is sold.

Lastly are individuals such as you and I who participate in the forex market in three main areas.

1. As Investors Seeking Yield: Although not very popular in the United States, overseas and particularly in Japan where interest rates have been close to zero for many years, individuals will buy the currencies or other assets of a country with a higher interest rate in order to earn a higher rate of return on their money. This is also referred to as a carry trade, something that we will learn more about in later lessons.

2. As Travelers: Obviously when traveling to a country which has a different currency individual travelers must exchange their home currency for the currency of the country where they are traveling.

3. Individual speculators who actively trade currencies trying to profit from the fluctuation of one currency against another. This is as we discussed in our last lesson a relatively new phenomenon but most likely the reason why you are watching this video and therefore a growing one.




 

Identify The Highest Probability Trades With Support and Resistance by Alex Ong

Many people believe that identifying the levels is all you need to do… however many people lose money in the markets and for very good reason. In this webinar Alex is going to go through the key aspects that make for a strong support and resistance level as well as the price action required at those levels to make them successful.


 

Ichimoku Cloud -- Don't be caught out by false signals!

Ian is going to discuss the all the aspects of trading the Ichimoku Cloud, a subject that is not well known in the Western World. The cloud is not purely used as support and resistance but has complex trigger lines (Kijun-Sen and Tenkan Sen), with specific rules that need to applied to ensure false breakouts.


 

Beginners Corner - ABC Video #1 What is Forex?

In this short educational video, Valeria Bednarik explains the bases of forex trading: exchange rates and speculation, and also outline the main characteristics of the Forex Market: Bidirectional market, High liquidity, Brokers and traders, 24/7 market and Leverage.


 

Beginners Corner - ABC Video #2 How to access the FX Market?

In this short educational video, Valeria Bednarik explains the bases of forex trading: spread, leverage and margin, and also take a look at the control of risk and the different types of order any trading platform offers.


 

Beginners Corner - ABC Video #3 How to read a chart? Technical and Fundamental analysis

In this short educational video, Valeria Bednarik explains the bases of forex trading: technical analysis, charts, candelsticks and technical indicators, and also about fundamental analysis and macroeconomic data.


 

Beginners Corner - ABC Video #4 What weights on the currency movements?

In this short educational video, Valeria Bednarik  briefly introduces concepts of intermarket correlations (stocks and commodities) as well as risk aversion, risk appetite, safe havens and high yields.


 

Forum on trading, automated trading systems and testing trading strategies

Something Interesting in Financial Video July 2013

Sergey Golubev, 2013.07.01 12:56

How to use Camarilla Pivots

Warren Buffet once said, Price is what you pay, but Value is what you get. Professional traders understand that we can find great value on our trades by understanding support and resistance. There are multiple ways to identify support and resistance price levels. Many traders turn to pivot points to identify safe price levels to enter and exit our traders. You will be able to find multiple forms of pivot points; however, we believe that camarilla pivots are the best.

Just to remind - we are having few related indicators in Metatrader 5 CodeBase:




 

Forex Pivot Points. How to use them effectively

A pivot point is a measurement of the previous price action, the most common pivot point is the daily pivot point. These points will measure price action one set level to another set level, the pivot points will give you a series of measurements in between those two levels.

Traders refer to pivot points as reference points, the pivot point indicator will give you a central pivot level and 3 resistance levels above the central mark, the indicator will also provide 3 support levels below the central mark.

If the price action falls below the central point, this is referred to as the buying zone – from this we know that traders will be looking at these levels based on past performance whether that being daily pivots, weekly pivots or monthly to gauge how fair any specific pair had moved.
Vice versa for the pair going above the marked central pivot level, this is referred to as the selling zone and traders will looking at the marked out pivot points to sell into.


 

Pivot Point Basics First Entry - How i time my first daytrade of the day using pivot points and other indicators part 1 of 2 parts


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