Forex traders are classified in line with their decision making tools. Broadly they fall into two categories –
Fundamental traders are those who base their trading on fundamental indicators like macro and micro economic information, interest rates, money supply and political stability. They are mainly long term traders and like to hold on to their positions.
Technical traders are those who use tools like charts, levels of support and resistance, trend lines, algorithms models and other such tools. They are mainly short term traders who trade frequently and take various positions in the market.
Chart is one of the many tools frequently used technical tools for interpreting the market movements with respect to volumes and pricing:
- Candlestick chart
- Bar charts
- Line charts
- Point and Figure Chart
- Kagi Chart
- Three Line Break Chart
- Tick Charts
Further all of such charts are classified into different timeframes
- 60 second charts or The One Minute charts
- The Five, Ten and Fifteen Minute charts
- Thirty and Sixty Minute charts
- 6 hours, Daily, Weekly and Monthly charts
The interpretation of the charts is easy but the catch lies in the choice of the charts. Which chart should be used under what circumstances would decide whether you interpretations are moderately appropriate or are bang on the target?
Some bankers also provide expertise of charts to their credit card users. On another line of thought credit cards and debts have provided a lot of help and assistance to its users. Undoubtedly credit cards and debts are very good and useful facilities. You can get a loan with the help of your credit card by just using and accessing the facility of credit card debt. Banks also provide you the facility of home loan and perform mortgage refinancing as well. The chase card is one such credit card service provider company. It is always recommended to have your credit card insured against theft and misuse. One must avail different insurance plans one for this purpose apart from the regular personal insurance plans. Now a days it is very easy to secure information about free insurance quotes through Internet.
What is forex? The exchange of foreign currency is termed as foreign exchange business or forex.
The primary requirement for conducting exim business is having proficiency in forex activities. It consists of two currencies where currency A is traded for currency B. The rate at which a currency would be traded against the other is determined by a combination of various complex factors:
- Convertibility of currency
- Demand and supply of a particular currency
- Government policies with regard to appreciation/depreciation of currency
- The balance of payments – deficit or surplus
- The foreign exchange reserves with the National Treasurer
- The Gold holding of a state
- The volume of international trade conducted
- The degree of alignment of the state’s economy with the rest of the world
- The degree of dependence on other economies for essential services and commodities
- The stability of the national government(s)
There is no single determinant of the forex rates. They are vibrant of the happenings around the economy and the world. The popularity and acceptance of a currency is also an indicator of the faith of the people in that currency value.