WHAT IS FOREX CURRENCY TRADING?

Forex is the largest and most happening financial market of the world. It is the venue where one currency is traded for the other. The market place is distinguished from the rest because of its high trading volume and geographical dispersion. A trader with sound knowledge of currency trading can earn substantial profit in forex market. Along with the knowledge of trading, he should have access to a few tools of forex trading. These tools are made to strengthen the confidence of a trader and can prove out to be a great help for a winning currency trading in forex. Being an awakened trader of forex market, you should remain aware about every latest happening of currency trading. Therefore, it’s important for you to have access to daily forex trading summary for important currencies and currency pairs. Add to this, a weekly forex trading summary is also beneficial as it will encompass detailed analysis of your sought subject. Tools that help you to access and monitor the interest rates, financial calendar, glossary database are also worthwhile. Apart from the above, there are several other tools of currency trading available around you. Several software containing detailed analysis and information about currency trading are also available at your disposal. All these tools and software packs are important for a successful forex trading. With access to such tools, a trader can easily execute his trading. Now, how to get these tools easily and satisfactorily? Well, it’s easy. With the availability of internet, you need not to get out of your home to access these tools and software packs. Just a single click and you can access valuable information and tools regarding currency trading in forex. Several online forex firms have been established only to offer you tools and software packs for forex trading. Some of them may charge money from you to download or access the software packs and tools. If you are not at all interested to cut your pocket, go for those forex firms, who offer free download facility. Online forex firms are beneficial in many ways. They not only offer you currency trading tools and software but also keen to give you an insight into the latest incidents of forex market. They also publish economic reports and influential topics on their websites with an aim to update a trader about what matter in currency trading. You can also access live charts of the forex market and trading secrets from such online firms. These forex firms are usually run by experienced professional, who own years of experience in currency trading. So, you can trust them. Thus trading in forex market has become easy with the availability of tools and software packs. And the advent of internet has made it easier. Today any one from any corner of the world can access forex trading tools for simplifying his currency trading.

Forex Trading Software

The development of forex trading software is what makes it possible for foreign exchange traders to make trades from their own computers. The majority of these software options are included for download when you open an account with a particular trading company and this article will guide you throug
Continued advancements in forex trading software are responsible for the continued growth of the foreign exchange trade industry. Forex trading software is readily available and is more user friendly than ever before. If you have ever been discouraged from trying your hand at online investing because the software was too complicated, now is the time to try it again. The software offered on most of the large forex trading platforms comes with full 24 hour customer support. Forex traders demanded better trading systems, and the service providers have responded. Quick fact : The Forex market is by far the largest financial market in the world, and includes trading between large banks,central banks, currency speculators,multinational corporations, governments, and other financial markets and institutions. One site that offers their own version of forex trading software when you open an account with them is forex. com. This custom designed software is widely used and has a high rate of customer satisfaction. The site’s customer service center is open 24 hours a day Monday through Friday (basically when the worldwide forex markets are open) so that you can address any issues that you may have immediately. Experienced forex traders know just how costly down time can be, so it’s important to have someone to turn to immediately should any problems occur. Did you know that the average daily trade in the global forex markets currently exceeds US$ 2-2.5 trillion ! Another great website that offers free downloadable forex trading software when you open an account is gftforex. com. The software they make available to their clients is called Dealbook360. This state of the art trading software is simple enough to allow even beginning forex traders to feel comfortable but powerful and comprehensive enough to keep even the most demanding foreign exchange traders happy and satisfied . In addition, Dealbook 360 monitors some of the tightest bid/buy spreads available, thus increasing your profit margins. A third reference that you may find useful is fxstreet. com. This page lists all of the major trading companies and the financial institutions that they run out of. This site also lists what kind of software each trading company is currently utilizing. Aside from listing the forex trading software that a particular company is using, this site also provides useful current information about pip spreads and a few other details about each site. Do you want to know if a particular company offers live technical support? You can find the answer quickly on fxstreet.com. You will find that most forex trading software is similar in design and function. The features that separate good from bad are the support features that each forex trading company offers with its trading software. Before you choose a foreign exchange trading company to use, make sure that you do plenty of research on all of the companies that you are interested in. Take advantage of the investment simulators that each offers on its site and get a feel for how the forex trading software works in real time. Read consumer reviews to see other forex trader’s opinions and experiences with a given company. Check to make sure that their customer service record is reliable and prompt.

Dubai Forex Market

In finance, a futures contract is a standardized contract, traded on afutures exchange, to buy or sell a standardized quantity of a specified commodity of standardized quality (which, in many cases, may be such non-traditional "commodities" as foreign currencies, commercial or government paper [e.g., bonds], or "baskets" of corporate equity ["stock indices"] or other financial instruments) at a certain date in the future, at a price (the futures price) determined by the instantaneous equilibrium between the forces of supply and demand among competing buy and sell orders on the exchange at the time of the purchase or sale of the contract.

ForeX Trading for Maximum Profit

ForeX Trading for Maximum Profit

Forex Trading for Maximum Profit - The Best Kept Secret Off Wall Street

Forex is different from trading stocks, but the benefits and risks are similar.

The Forex markets are quite different from the stock markets largely because the price behavior of the Forex pairs is different and entails abrupt price swings. This means traders should utilize trading methods different from those that are used to trade or select stocks so that traders may fully realize the profit potential Forex offers while still minimizing risk.

Both Forex and stocks, however, are similar in that they develop repeatable price trends that give traders enormous profit opportunities for those traders with strong trading methods, disciplined trading mindsets and sound money management tactics.

One of the reasons Forex has gained in popularity is the concept of Leverage, which allows traders to take Forex positions with a much smaller account size than would be required for trading stocks, and because the margin requirements for Forex are smaller than they are for stocks. This increases the reward ratio for profitable trades, but it also increases the risk.

For example, most brokers offer at least 100:1 leverage, which is more than enough to generate significant profits while maintaining sound risk management. Other brokers will offer up to 400:1 leverage — but the risk reward ratio is not in the trader’s favor with this type of leverage.

Leverage, combined with reduced margin requirements and high profit potential are the real driving forces of the expanding Forex trading market.

In addition, Forex is more predictable than thousands of stocks. It follows well established trends.

And: Foreign Currency Traders don’t suffer from a Global Recession.

In fact, there has been a multitude of opportunities in Foreign Currency during the Crash of 2008.

And there will always be a constant flow of opportunity in Forex.

Because as one economy slows, another surges.

Sometimes we see these mini surges daily, others are longer term trends that we can ride for bigger profts.

You’ll always be able to find financial imbalances in the Forex market, where you can proft.

Trading Forex has become a recession-proof business for those willing to learn the process of how markets
react in today’s volatile world events.

Trading Forex enables you to (re-)gain contol of your financial well-being.

Foreign Currency Symbols

Currencies, like equities, have their own symbols that distinguish one from another. Since currencies are quoted in terms of the value of one against the value of another, a currency pair includes the "name" for both currencies, separated by a "/". The "name" is a three letter acronym. The first two letters are in most cases reserved for identification of the country. The last letter is the first letter of the unit of currency for that country. For example,
USD = United States DollarGBP = Great Britain PoundJPY = Japanese YenCAD = Canadian DollarCHF = Confederatio Helvetica (Latin for Swiss Confederation) FrancNZD = New Zealand DollarAUD = Australian DollarNOK = Norwegian KronaSEK = Swedish Krona
Since the European Euro has no specific country attached to it, it goes simply by the acronym EUR.
By combining one currency, EUR, with another USD, you create a currency pair EUR/USD.

Hollywood Stock Exchange - The First And Biggest Stock Simulator Is Looking Pretty Shabby

Back in 1993 on a movie tracking newsgroup, a group of guys started a predicting game. They set up a system where they could bid on upcoming films, and then figured out math formulas based on the buzz and the activity of those films in regards to the newsgroup to see if the price would rise or fall. It soon began to expand enough to become a website with an actual program running on it and thus the HSX or Hollywood Stock Exchange was born.The HSX has gone through a lot of changes since those early beginnings, back in the dot.com boom of 2001, HSX went public and raised a good chunk of capital that it used to finance a TV channel, radio spots, and a whole slew of other market ideas, almost all of which have fallen through now.Hollywood Stock Exchange is protected by US patents due to the specific formulas and processes they use and they have successfully protected themselves against software pirates who have attempted to nab the code for their own use. The HSX runs on a java platform with active server pages helping to keep the actual process hidden behind a shielded server wall.When somebody decides to play the Movie market, they open a free account with HSX and are given 2 million Hollywood Dollars or H$. This is the online currency of the market, and is the only way to play the game. Players then buy and sell shares in the market and if they pick the right shares at the right time, their funds increase. I have been playing the HSX for about 18 months and have achieved more than H$43 million so far, which is not too bad.Some of the biggest gains can come from predicting how much cash a movie will take on it's opening weekend. Because that is applied with a multiplier to the actual stock price, and if it is higher, then the stock price can jump up or down significantly. A big gain I managed to do was put some H$ onto Spiderman 3 before it released to theatres. That stock jumped more than H$43 on the strength of the box office, meaning every share held increased by that amount.The HSX is a very good example of a prediction market, and the software that runs it is always being adjusted and tweaked by the operators to keep the system running at it's best performance. Thus we come to the big problem with HSX, downtime.

Introduction to Trading Forex

forex trading robot secrets revealed by ozz

forex trading robot secrets revealed by ozz Forex trading is a system set up to allow people to trade currencies in the various markets. It is extremely volatile, which in part lends itself to providing opportunities for traders. With so much volatility every day by adopting a short term trading strategy you can make consistently large profits.
Among the multiple variables affecting the Forex trading system, news is one of them. When news arises, changes are created in the market which often results in large spikes. Hence huge profits or huge losses can be made. The most important thing is to find a good trading strategy.Successful traders find a strategy and stick to it. Making money depends entirely on the predictions you make. Don't keep on changing your strategy because other traders have failed. Traders who follow their emotions usually wind up failing."Learn about one thing a lot rather than knowing a little about a lot of things."In Forex trading one can consistently profit through good and bad economic times. Position sizing is the most important component in the Forex market. It is simply deciding on how much you are going to put into any one Forex market trade.The trader should understand the trends in the market. When one rides in the trends there is always a possibility of attaining huge profits. If one goes against the trend you are fighting against the momentum in which the market is heading.The trader should analyze the multiple time trends otherwise you will be facing huge losses when the market moves against you

THE BEST HOURS OF FOREX TRADE

Forex Trading: The Best Hours to TradeIf you want to earn extra cash aside from the cash you earn from your regular job or your business, maybe it’s time to you to enter the financial market. One kind of financial market that made a lot of people earn a lot of money is the Forex market.Aside from the fact that the Forex market can give you an opportunity to earn a lot of money, you should also know that Forex is the largest and the most liquid financial market in the world with trade exchanges that amounts up to trillions of dollars each day.Forex also operates 24 hours a day and therefore making it the most liquid market in the world. However, Forex is also a very risky market. Besides that fact that it generated a lot of people to become rich, it also made a lot of people lose large amounts of money. Therefore, you should consider that you should think twice before entering this financial market. You should have enough knowledge and skills before you enter this market. Part of the knowledge that you should know the best time you should enter this very liquid and very large market.Sure you know how to trade, you know what currency pairs to trade, and you even know how to read charts

HISTORY OF FOREX

BarterCurrencies based on GoldPaper money exchanged for gold (reserves)“Run on the Bank”Bretton WoodsCreated IMF, World Bank, GATTEuropean Monetary SystemMaastricht TreatySE Asia 1998 Crisis
It used to be that the value of goods and services were expressed in terms of other goods. This was called the barter system. Carrying around goods as a medium of exchange can be a little cumbersome, so some economies began to use specific goods, such as feathers, polished stones, special metals (gold & silver) as a medium of exchange. The first coins were made from gold and silver. During the Middle Ages, economies began to use paper money to exchange value

Pakistani Dollar Reserve Rise.

There is light at the end of the tunnel, and it is not an oncoming train.Pakistan's dollar reserves are climbing again and its currency stabilizing, after more than a year of monthly declines. The nation's foreign exchange reserves rose by $260 million to $10.21 billion in the week that ended on Jan. 24, according to the State Bank of Pakistan.This included $500 million Pakistan received from China to help build foreign reserves, said Syed Wasimuddin, chief spokesman for the Pakistan's central bankThis included $500 million Pakistan received from China to help build foreign reserves, said Syed Wasimuddin, chief spokesman for the Pakistan's central bank.Pakistan's foreign reserves hit a record high of $16.5 billion in October 2007 but fell to $6.6 billion in November, largely because of a soaring import bill. There has been a dramatic decline in the cost of imports such as oil during the last few months, spelling relief for Pakistan and other non-OPEC developing nations. The price of oil has dropped to about a quarter of what it was last summer.Pakistan signed a $7.6 billion loan agreement with the International Monetary Fund in November to stave off a balance of payments crisis. It received its first tranche of $3.1 billion that month. In its first assessment since November, IMF has expressed satisfaction with Pakistan's progress. “Initial developments under the program have been positive,” IMF spokesman David Hawley told a regular news briefing, according to Pakistan's Dawn newspaper. “The foreign exchange rate has appreciated somewhat and preliminary information suggests that end-December targets for net international reserves and net domestic assets at the State Bank of Pakistan were met,” he added.Pakistan's economy deteriorated sharply over the course of 2008, as inflation surged, and the current account deficits jumped on the back of rising oil and food prices, according to a World Bank report.The report titled ‘Global Economic Prospects 2009’ says political turmoil and ongoing security concerns have also taken a toll on Pakistan’s economy, while the global financial crisis added substantial downward pressures on its financial markets. The general deterioration in regional trade balances has been offset by large remittance inflows, which represent a sizable, and generally increasing share of GDP: during 2007, 14 per cent in Nepal, 8 per cent in Bangladesh and Sri Lanka, 4 per cent in Pakistan, and 3 per cent in India.Given strong underlying growth dynamics in South Asia, the negative feedback effects of the global financial crisis are expected to be temporary. A relatively rapid rebound is expected in 2010, with a projected revival of GDP growth to 7.2 per cent.“Investing in Pakistan is investing in future,” Prime Minister Gilani recently told leading businessmen in Dav, Switzerland, on the sidelines of the World Economic Forum. Gilani said Pakistan’s sound fundamentals offered the investors an opportunity to explore the country’s economic potential in diverse fields. He emphasized the need for more foreign investment coming into Pakistan and benefit from its investor-friendly economic policies. He said Pakistan’s liberal economic regime with zero import duty on raw material provided equal opportunities for the local and foreign businessmen. He said Pakistan was confronting a number of challenges including economic crisis, however the democratic government was determined to improve the situation.“Despite all the challenges, economy continues to be buoyant and vibrant in Pakistan,” the Prime Minister said, adding the country’s mineral and work-force resources had the great potential to be fully tapped.

ZacroExchange Company

The ZARCO Exchange Company is a respected financial institution that provides dependable Exchange and Transfer services to satisfied customers throughout Pakistan. Our company has the country?s largest network of Online Branches, Franchises and Payout locations and is reputed for its ability to provide unparallel financial services including: Money Transfers Currency Exchange Bank Drafts Traveler Cheques Cash Passport Cash Cards Postal Notes and Coins The ZARCO Exchange Company (Pvt) Ltd. has its corporate head office at 32-A Lawrence road, Lahore Pakistan. All transactions and payments processed by ZARCO comply with the applicable regulations, in accordance with the international rules and codes of the applicable legal bodies. The Exchange is regulated under the Legal framework set out by the Central Bank of Pakistan and has been designated by SBP as the country?s premier ?Role Model Company.? We are the first company to have a live OFAC Scanning mechanism. Our main objective is to provide customers with seamless, cost-effective service and the best financial services in Pakistan and beyond. Our efforts are strongly supported by the Government of Pakistan. ENCASHMENT CERTIFICATE AGAINST INWARD REMITTANCES ZARCO is authorized by the Central Bank of Pakistan wiz: State Bank of Pakistan, Karachi to issue Encashment Certificates as under: "Certificate of Encashment of Foreign Currency? is issued to the beneficiaries for the Remittances received from abroad and to be paid in Pak Rupees. Moreover, it is advised that there is no restriction from State Bank for issuance of ?Certificate of Encashment of Foreign Currency? against these remittances.

H & H - Pakistan's first Exchange Company. Granted license by the State Bank of Pakistan to carry out foreign exchange business. We also deal Dollar East Exchange Company (Pvt.) Limited is a leading exchange company in Pakistan. The company is one of the pioneers to start currency exchange business in the country. It was amongst the first companies to receive the license of money changer from State Bank when this business was regularized in 1992. When State Bank established exchange companies in Pakistan in 2002, Dollar East was the second exchange company to be awarded permission. It received exchange company License on 2nd May 2003 and commenced its operation on 7th July 2003. Under the exchange company license, Dollar East is authorized to deal in the business of currency exchange, travellers' cheques, notes, postal notes, money order, bank drafts and inward/outward remittances in a regulated environment. The company is authorised to set up its own branches or grant franchise arrangements for full range of services. The Company is also allowed to establish its own or franchised payment booths for inward remittances all over Pakistan. The company currently operates a network of 18 branches which are strategically located in all high potential areas. The company has aggressive plans to expand its branch network to other areas of Pakistan. The company also operates 3 payment booths in Rawalpindi, Mandi Bahauddin and Sahiwal and is also in the process of setting up franchised network of currency exchange booths and payment booths network in both rural and urban areas of Pakistan. in cash currencies, foreign remittanc

Forex Market Hours

Our Dealing room and Customer Service Team is available 24 hours from 22:00 GMT Sunday to 21:55 GMT Friday.

Beirut Stock Exchange

BEIRUT: The Beirut Stock Exchange underwent a relative dormant week of trading as regular activity was interrupted by the festive period. Nevertheless, the decline in global capital markets and in particular Gulf stock exchanges weighed down on investor sentiment as they preferred to realize their remaining positions in anticipation of worse times ahead. Thus, the Blom Stock Index dropped by 1.55 percent on a weekly basis to close at 1182 with a year to date decline of 21.28 percent. Weekly traded volume and value also went down significantly by 71 percent and 81 percent to 372,788 and $4.5 million. Out of the 26 listed stocks on the Beirut Stock Exchange, 12 exchanged hands during this slow week, which saw only two gain in price, while seven decreased and two stabilized. Solidere stocks alone represented 70 percent of the total value traded while the banking sector accounted for the remaining 30 percent.

Tfi Fx Platform

The platform boasts a simple and user friendly interface that allows clients to easily monitor their transactions, manage their account and perform a variety of technical analysis. Some of the features include:Coverage of the financial markets.Constantly updated real time prices.Instant execution, order placement, stop-loss and take-profit orders.Users can define and view unlimited charts.Daily account statement.Multi-lingual platform with up to 20 different languages to choose from.You can program your own trading strategies with the Expert Advisor.High security through the strong encryption of information transmitted.Customized technical indicators and the ability to script more.

The Advantages of Online Forex Trading

Every year the attraction on online trading is fast increasing specifically on trading shares and forex trading. The coming out of a new profession, that is, dealer of currency, was caused by the remarkable development of the Internet. Forex trading can be done now not only in the office but also at home. Hence, the online forex trading was well accepted.The level of qualification for forex brokers was raised due the incredible advancement of online forex trading, the security program and telecommunications. Somehow, the online forex trading made the forex brokers to develop more their abilities for their own sake. Surely, the danger will be lower while on the operation. Thus, if the level of trading qualification is higher, then the trade amount will also be higher.The typical methods of the forex trading were completely changed because of the presence of dealing systems, which is automated in the eighties, together with the co-coordinating systems in the nineties. The systems of dealing are online computer systems wherein the banks are integrated in a united net, whereas, the co-coordinating systems are electronic brokers.The forex traders will have an increased number of present transactions because the dealing systems are very dependable and very efficient. Furthermore, they are safer as you will see the executors of the dealings. The online forex trading is continually expanding precisely of the dependability, safety, and swiftness of the dealing systemsThe online forex trading has been widely accepted considering the basic role of the computers. The dealing systems and the co-coordinating system are interconnected to all the traders of the world, thus, forming an electronic brokers market. The account report, filling vouchers, the work of the secretary, and the methods of lowering the risk are well in place.In order to use your investment capital to the maximum, you should be wise enough to avail the online forex trading. What are the advantages of the forex markets online? They are different compared to the other traders. We have the following advantages.1. The biggest market is the forex market. Forex traders are given approximately limitless liquidity and flexibility.2. The forex trading does not sleep. There is no need to wait for the opening of the market. They are open all night. This is the motive why the online forex trading is very much popular that suits practically to your day or night.3. You will have the same opportunity in having a profit whatever way the currency goes to. Aside from that, there are only fourteen pairs of currencies to trade, as compared to the several thousands of stocks and options.4. The online forex trading gives a great leverage. Your resources for investment will be treated to the fullest on online forex trading. In view of this, traders avail the online forex trading.5. The prices of the online forex trading are unsurprising. Prices of currency, though unstable have the tendency to produce and go along with the trends.6. There are no commissions for online forex trading. No exchange fees or any unknown fees whatsoever. The forex market is so transparent. No computation of commissions or any fees in executing a deal.7. The online forex trading is amazingly fast. The orders can be done within 1-2 seconds. You can choose whichever you think is faster and something that will be profitable for you.

Forex Marketing

The Stock Intel CPUs Were Running Really Hot

The stock Intel cooler isn't as big as it has been in previous generations, when their CPUs were running really hot.

Weekly Strategy

Posted 5/26/05 EUR/USD: The EUR has been under pressure for the past several weeks as signs of further anemic growth and a likely rejection of the new EU constitution by French or Dutch voters weighs on the common currency. The most recent waves of EUR selling have been closely tied to poll results that show rejection of the constitution is all but certain. This sets the stage for a classic sell the rumor, buy the fact scenario. The fundamental rationale for a rebound in the Euro is that the rejection of the constitution is a localized phenomonon of disaffected French and Dutch voters, and is unlikely to sway international investors away from the Eurozone for any length of time. In fact, the rejection of the constitution could have the effect of rejuvenating consumer sentiment and domestic demand since the pace of integration of mainly eastern European new members will slow, likley alleviating western European fears of imminent job losses. On the technical side, EUR/USD has reached a significant pullback level, namely the area between 1.2430/1.2530, which represents the breakout point from mid-Oct. 2004 when the dollar began its most recent slide. Given the likely predominance of short EUR/long USD positions in the market, the risk is for a sharp reversal in EUR/USD recent declines. In terms of technical studies, the DMI indicates no trend is in place, MACD is basing, and Williams %R is at -100. Strategy: Buy 50% of EUR/USD long position at 1.2510/30 (current levels as of this posting). Look to add the other 50% on further weakness to 1.2430/50 or on a reversal over the 1.2700 level. This strategy will fail on a daily close below 1.2430, and the risk is the level is exceeded briefly in the pandemonium following the constitution referenda. For this reason, conservative traders might wish to wait until the votes are cast and enter longs after a spike low has been made and EUR/USD is on its way back up.

Letter From The Chairman

There has never been a more challenging and exciting time to be trading in the foreign exchange market. Since we launched operations in 1999, we've watched the industry grow in leaps and bounds. What started out as a market for professionals is now attracting traders from all over the world and of all experience levels.

Our goal at FOREX.com is to provide a comprehensive resource for individuals new to the market or with limited experience trading foreign currencies. On this site you will find educational content, training tools, and market information, along with full service trading capabilities. Our forex mini accounts allow you to get started with less capital, and beneficial trading policies are in place to help you manage risk while you learn.

As part of GAIN Capital Group, one of the world's largest and most respected online forex trading firms, you can feel secure knowing you're trading with an industry leader. From being the first firm to introduce innovative dealing practices such as instantaneous execution from streaming quotes, to our commitment to fair and honest dealing practices and our cutting-edge proprietary trading technology, GAIN Capital Group is at the forefront of the industry. In addition, with over 100 years' combined experience in capital markets and proven track records as senior managers of large, global trading operations, our executive team is comprised of some of the most respected leaders in the industry.

If you're a professional money manager or experienced forex day trader, you will likely find our flagship service, GAIN Capital, better suited to your needs. Otherwise, I encourage you to explore our website and see for yourself why so many people choose FOREX.com as their online forex trading provider.

Should you have any questions, our dedicated and knowledgeable staff is available 7 days a week to assist you in any way you choose, whether by phone, email or chat.

Sincerely,

Mark Galant
Chairman & Founder
GAIN Capital Group

Forex Market Summary

Currency Trading Strategies Offer Opportunities Through Challenging Market Conditions

Our DailyFX+ Forex Trading Signals have had a decidedly mixed week of trade, as rather unpredictable market conditions have made it difficult to properly time trade entries. Our momentum-based trading strategies were initially well-positioned to take advantage of the US Dollar and Japanese Yen breakouts, but rapid retracements clearly hurt the viability of those trades.

We are now stuck in the difficult position of deciding between historically attractive Momentum and Breakout trades and the arguably more timely Range trades. Needless to say, we will have to keep a close eye on market conditions as the week wears on; we will update our strategy outlook report as conditions warrant.

Oil Drops Below $51

Profit-taking and uncertainty around the G20 Summit Meeting are being blamed for a reversal in the price of crude as the benchmark prices fell nearly $2 a barrel in Monday morning trading in Europe and Asia.

Some Banks Will Need More Funding:

U.S. Treasury Secretary Timothy Geithner told a news program aired Sunday that some financial institutions will require substantial government aid in order to remain solvent. He also warned against taxing investors who participate in the Private Public Investment Program intended to buy the toxic assets held by many of the large banks. More
Spain Forced to Provide Bail Out Help for Regional Bank

Share prices for Spain’s financial institutions fell today after the government announced that the Bank of Spain would assume control over Caja Castilla la Mancha.

FOREX-Dollar, yen up as stocks stumble, auto woes weigh

* US auto woes, Spanish bank rescue dull risk appetite

* Dollar, yen up broadly, technically shaky euro slides

* Heavy event risk this week as ECB, G20 meetings loom

* Stocks fall sharply, adding to risk-aversion trades (Updates prices, adds comment)

By Steven C. Johnson

NEW YORK, March 30 (Reuters) - The dollar and yen rallied on Monday as fears of bankruptcy for U.S. automakers General Motors and Chrysler prompted anxious investors to cut exposure to risk and seek safety in the U.S. and Japanese currencies.

The euro continued to retreat from last week's two-month high above $1.37, falling below $1.32 after Spain was forced to take over a regional savings bank, its first rescue since the financial crisis began, and Hungary's credit rating was cut.

That added to selling by those anticipating a cut in euro zone interest rates this week and increased the appeal of the dollar and yen, which tend to rise in times of trouble as investors repatriate funds from higher-yielding currencies and relatively riskier assets such as stocks.

"The poor start to the week in global equity markets has acted as a speed bump for the broad rally in risk appetite we'd been seeing, and its roots are in renewed concern about the financial sector and U.S. auto sector," said Todd Elmer, senior currency strategist at CitiFX in New York.

U.S. stocks swooned after the White House rejected funding pleas from GM (GM.N) and Chrysler and forced out GM's CEO, pushing the ailing carmakers closer to possible bankruptcy.

That added to worries stoked over the weekend when U.S. Treasury Secretary Timothy Geithner said some banks will need large amounts of assistance -- remarks that BMO Capital Markets currency analyst Andrew Bush said "put the bulls-eye back on the financial sector."

The euro was last down 1.3 percent at $1.3133 , its lowest since March 18 and near a $1.3118 session low. It lost 2.2 percent to 127.18 yen, a two-week low .

Standard & Poor's move to cut Hungary's long-term foreign currency rating added to pressure on the euro by refocusing attention on troubles in central and eastern Europe, a region to which euro zone banks are heavily exposed.

"It's rubbing salt in the wound and adds pressure to the euro, and as long as stocks continue to fall, we'll shoot for $1.31, where there's strong buying interest," said GFT Forex's Boris Schlossberg.

Analysts say $1.31 is the euro's next technical target on the downside because it marks the 50 percent retracement level of its March rally from $1.2455 to $1.3737.

Sterling fell 1.2 percent to $1.4150 while the dollar shed 1 percent to 96.81 yen .

Dennis Gartman, an independent investor and author of The Gartman Letter, said yen gains may also be tied partly to the view that Japan's carmakers stand to benefit from GM's and Chrysler's continuing woes.

The White House said it would only fund GM for the next 60 days while it develops a more convincing restructuring plan.

Widespread market anxiety on Monday was in stark contrast to a growing sense of optimism that lifted stock markets over the last few weeks and dimmed the dollar's safe-haven appeal.

Despite the improvement in risk appetite over the last few weeks, "there were still a few banana skins out there," said Daragh Maher, deputy head of global FX strategy at Calyon.

One such could be the European Central Bank's meeting on Thursday. Rates are seen falling to 1 percent from 1.5 percent, and markets will be on alert for signs the ECB plans to follow the U.S., British and Japanese central banks by purchasing government or corporate debt to free up credit and lending

Forex Professional System Trading

• Forex market has a turnover of more than three trillions dollars a day, which is undoubtedly the greatest of all the financial markets. Forex professional system trading allows you to trade through a global network of banks, corporations and individuals.

Participants of FOREX market: Participant

1.Banks

The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account.

Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services.

National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high—that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.
About 70% to 90% of the foreign exchange transactions are speculative.
Investment management firms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities.
Non-bank foreign exchange companies offer currency exchange and international payments to private individuals and companies. These are also known as foreign exchange brokers but are distinct in that they do not offer speculative trading but currency exchange with payments. I.e., there is usually a physical delivery of currency to a bank account.

What is Forex (Foreign Exchange)?

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.