Could Spot Uranium Rates Reach $100/pound?
Vitality Guru Bill Powers Forecasts Uranium Shortfall in Three Several years. Bill Powers focuses on expense opportunities inside the Canadian energy sector, mainly independent oil & fuel companies and now uranium firms. We talked with him and he thinks uranium could reach $100/pound this decade.
Interviewer: A whole lot of newsletters cover oil and gasoline, but you picked uranium, which hardly anyone was covering until recently?
Bill Powers: I feel the uranium industry correct now could be the world’s most unbalanced commodity marketplace. Inside a sense, the planet, by means of the nuclear power business, consumes approximately 172 million pounds of uranium per year, and also the globe only produces about 92 million pounds of uranium per year. The supply deficit is created up via above-ground inventories, which are getting worked down pretty quickly. Those numbers were supplied by Uranium Information Center. A whole lot of my information comes in the U.S. Department of Vitality (DOE) or the Nuclear Regulatory Commission. For illustration, I discovered from them how the U.S. produced, via the 1980s, about 43.7 million pounds of uranium. And by 2002, the U.S. only produced about 2.34 million pounds of uranium.
Interviewer: Where is uranium being produced inside the United States?
Bill Powers: Wyoming. There’s also a uranium facility in Nebraska. I consider there are two in-situ leach plants in Wyoming and an additional one in Nebraska. You can find a couple of phosphate farmers in Florida who create uranium. I believe there is really a facility in Texas that also produces uranium. For your most component, the uranium business in New Mexico has just about been wiped out. The very low prices that we’ve seen, for about twenty many years, have pretty very much wiped out the entire U.S. uranium industry. To go from over 43 million pounds to less than 2.5 million pounds, it has truly only allowed the most productive, highest margin and most efficient mines within the nation to continue operating in that environment.
Interviewer: So that makes the U.S. a net importer of uranium?
Bill Powers: Absolutely. According for the DOE, US imports have gone from 3.6 million pounds per year in 1980 to 52.seven million pounds per year in 2002. A whole lot of it arrives from Canada, but a significant amount is coming from the Russians, through a program known as HEU (highly enriched uranium)… the megatons to megawatts program. It is in which the United States Enrichment Corporation, as properly as its partner in Russia, took highly enriched uranium and broke it down into reduce grade uranium that might be marketed to nuclear power businesses throughout North America and close to the world. This has been one of the reasons we’ve had reduce rates. All of this uranium has cluttered the market the past few many years. And also the US Enrichment Corporation has a lot to do with why we’ve seen low uranium prices here in the States. I had a conversation with them about the truth that since 1998, when they became a public company (following being a organization that was owned by the U.S. government), their long-term inventories of uranium had declined. When they became a private corporation, the U.S. government gave them seven,000 tons of enriched uranium and 50 tons of highly enriched uranium. They have been marketing about 6 million pounds of uranium into the marketplace each year because 1998. According to my conversation with them, they have about three to four a lot more several years of promoting. It’s because the US Enrichment Corporation wants to get out from the uranium storage business, and they want to be within the processing company.
Interviewer: How extended will it be, do you think, before USEC is going to stop being a factor about the marketing price stress of uranium?
Bill Powers: I would most likely say in about three many years. For your uranium they are now promoting, the price from the uranium to them was zero. This has actually made that company appear extremely profitable. They are marketing about $100 million worth of uranium every year, and they intend to do this at no matter what cost. That is an really bullish scenario right now due to the fact uranium prices have touched twenty-year highs, despite the truth that USEC is dumping a lot more than three % from the world’s uranium consumption onto the marketplace location. When this dries up, we should see markedly increased uranium costs.
Interviewer: How large is higher when you say that?
Bill Powers: I would say up to $100 per pound. Before the finish of this decade, uranium will most likely be $100/pound. The Russians are likely to be holding back some of their output in the megatons to megawatts project. Their (the Russian) uranium is going to be required for internal consumption. Russia has a growing nuclear power business. They must have uranium supplies obtainable. They’re not likely to be marketing as a lot as they had in prior several years. It appears it is going to be very important to factor in reduced Russian supplies as well as when USEC gets out of the business.
Interviewer: How can a sophisticated investor benefit from uranium’s rising cost?
Bill Powers: The most leveraged investments are the Canadian juniors. I believe Cameco (NYSE: CCJ) has other businesses away from uranium exploration and manufacturing, and it can be a extremely safe way to play uranium. But I believe you can find far much better opportunities out there. Among my favorite firms is Strathmore Minerals (TSX-V: STM).
I really like their enterprise model of acquiring a great deal of really prospective uranium properties at bargain basement rates. They’re in a position to do this because, right now, uranium has gone via a twenty-year depression. The prices for some of these pretty far advanced projects are very cheap. I believe they are nicely leveraged for that. One more safe way to perform uranium is Denison Mines (TSX: DEN). They produce about 1.3 million pounds per year. They have properties are in McLean Lake, Saskatchewan, which is component of the Athabasca Basin. What I like about them is they are in a position to use their cash flow from their existing production to further expand some of their properties. With UEX Corporation (TSX: UEX), Cameco was the shareholder. UEX was founded numerous many years ago with Pioneer Minerals. Equally of the businesses set in properties. It is appear like they are rapidly advancing some of their properties in Athabasca. I believe they have about eleven properties they have an interest in.
Interviewer: What about other vitality factors, such as crude oil, and what do you see happening there?
Bill Powers: I would say crude oil is heading very much higher. We have reached the worldwide manufacturing peak of crude oil, or we are really close to it. This is not really properly recognized. As demand continues to rise, and world manufacturing starts a downward slope, we’re heading for a lot higher crude oil rates. I see very much higher costs later this decade, if nothing goes wrong. What I mean by that may be the natural marketplace equilibrium price of crude oil must be $50 inside the following eighteen months. And probably over $100 from the end of this decade if nothing goes dramatically wrong. That would appear through the normal decline of existing reservoirs, limited new discoveries, and increasing demand. Nevertheless, if a country, such as Saudi Arabia, have been to possess a regime change…
Interviewer: Are you trying to find a regime change in Saudi Arabia?
Bill Powers: Yes, there can be a body of evidence that supports this. Terrorist incidents are becoming much more violent and closer together in Saudi Arabia. Right now, we’re seeing those attacks targeted for the oil workers. I believe it won’t be too long just before people attacks are focused a lot more on the royal family. I believe that may be the next stage in Saudi Arabia. There’s a really good opportunity, which history supports, is when you can find sudden regime changes in oil-exporting countries, oil exports from individuals countries drop considerably. Regardless of what had been to happen, as far as the political situation, a whole lot of their fields, particularly Ghawar, which may be the biggest oilfield within the globe – it produces in between four and 4.5 million barrels per day – there’s evidence that this field could decline relatively soon. Saudi-Aramco has been injecting substantial amounts of water into injection wells to push the maintain manufacturing flat What this has accomplished is it keeps manufacturing flat, but it is sort of an illusionary fountain of youth. Should you keep injecting water, the amount of drinking water you produce, along while using oil, continues to rise. Since the drinking water cut continues to increase, the amount of oil made can fall dramatically. If that had been to happen, if Ghawar had been to go right into a permanent and irreversible decline – nicely, it could happen relatively quickly. You will find other fields within the Middle East, such as Yibal in Oman, where they had a whole lot of h2o flooding and horizontal nicely drilling. Yibal has gone from 250,000 barrels per day within the late 1990s to about 80,000 barrels per day now. If we have been to obtain that type of decline in Ghawar, the planet is likely to be seeing greater rates just on that. Correct now, there’s not any excess oil production supply anywhere in the planet. A relatively little reduction in availability of supply will lead to an exponentially higher oil price tag.
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Tags: exchange, foreign, foreign exchange, ForeignExchange
Continual Accessibility With Inventory Dealing Online
In the planet built on capital, we humans are forever vying for that following huge money-maker. It appears that everybody forever desires much more cash. Some strive for a senior education; other people compete for that large promotion. No be concerned what the technique, we all locate a way of increasing our earnings. Investing can be a customary form of producing an additional buck. Using the obsession with the currency markets in gorged affect, numerous of us opportunity on that up-and-coming company, or upright item that has the latent to fuel in worth. We know that shares can sky-rocket in appraise if obtained at the right time. A blessing to many investment junkies is store trading on the internet. The currency markets is now at your fingertips.
If you’ve by no means played the currency markets, it may be time to inhibit it out. Numerous people make millions in promoting and selling. Haven’t you heard about the UPS shares? People folks got rich. It is awesome where just a little chance can take you. With store buying and selling on the internet somebody can have continual accessibility for the market. Hop on your pc and inhibit out the sites that can help you with this process. It doesn’t be concerned if you’re searching to squander a little or invest a whole lot, there’s something just waiting for you. The fantastic factor about the Internet may be the details. It is possible to locate an abundance of buying and selling suggestions and truth concerning the stock exchange for free. This way when you commence stock trading on the internet, you won’t be inside the dark.
We hope that the first part of this article as brought you a great deal of very much needed information on the subject at hand.
A couple of living back, my best friend hopped about the stock market bandwagon, and bought some shares. When he began this tiny venture, he bought about the recommendation of your partner who had been dealing for many years. After marketing a amount of shares at 10 bucks a pop, he was keen to go. It wasn’t extended before the shares had amplified to 60 bucks a pop. He took the innocent road and sold right away. I believe that this was a astute choice. He produced the currency and puzzled nothing. With stock trading online, shrewd when to fold is key. Just like with gambling, you need to know when to currency out. Make some funds, but do not get greedy. Before you know it, the shares have dropped beneath your purchase cost. Store dealing on the web is really a amazing way to veer a profit and make that added cash. Just before you skip on the internet and flinch investing, inhibit out some websites for figures and pointers on the contest of inventory dealing. A far better understanding of the affair will pay out off in the finish.
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Tags: exchange, foreign, foreign exchange, ForeignExchange
Forex Buying and Also Promoting Produced Uncomplicated Utilizing Computerized Bots
Very some individuals would like to attempt their hands at obtaining and marketing to produce a revenue off within the put in money. You’ll uncover out numerous goods that are superb to grasp when contemplating about this opportunity. The very initial will probably be to create particular you completely comprehension what you’re carrying out. Acquiring familiar utilizing the fundamentals belonging for the income sector and just how it capabilities will assist you substantially inside in the finding and marketing video game. Following, you need to acknowledge the Throughout the world deal forex trading obtaining and advertising and marketing robot can be 1 around the simplest processes to possess to the cash business.
Many probably most probably essentially one of the most trustworthy and the majority cost-effective plan to reach the sector could correctly be the Foreign run robotic. The men and women behind the development are acknowledged to increase to grow to be the greatest at them and towards the dedicated their lifestyles to instructing other persons. They create particular the software has constant updates along with runs smoothly, even spite in the reality the trader isn’t concerning the pc with regard to several hours each day. Many males and girls are distrustful about affixing your signature to on for almost any range of foreign exchange acquiring and advertising Forex Black Panther products which have been advertised about the web, with fantastic cause. Using the bot, you will not run in a mere 1 foreign currency, you buy and promote in two. The player ought to acknowledge this previous in the direction of the transaction is made.
Large numbers have experimented with the Global sector robotic with considerably achievements. It could possibly be tested to increase to grow to be an simple and good method of getting and marketing in stock markets all additional when compared with the planet. It utilizes the widespread conversation belonging to the internet to provide a cheap voyage with the trader.
That robot has pretty some capabilities. Most most likely essentially basically essentially the most well-liked may perhaps be the facts the robot will allow you use an great provide extra as compared to the leveraging you’ve to create unbelievable profits. To come across out there out a wonderful provide significantly much extra, do a smallish study in the direction of Earth Wide Web and do not be afraid to question doubts regarding the plan. The additional feature Throughout the world use is proud of is their program technicians. The Worldwide purchase and offer robot is in contrast to any routine within the world. Pretty a handful of have tried to compete producing make use of within the regimen, simply to are unsuccessful we in A single approach or a great additional. Will not also fool utilizing another males, go direct inside of the program belonging to the source and don’t use anything but Overseas use.
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Story About Automatic Foreign Currency Trading Software
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Automatic forex trading buying and selling types of procedures proficiently predict any global trade costs movement for any purchaser to commit 1 on one of the most cost-effective techniques suitable aside. The best possible automatic international forex exchange purchasing plus marketing computer software software routine is accommodating, good and also ?s known for a tested observe track record. In spite with the truth that many changing software program program routine are very low-cost, a few is readily extremely dear such as some sort of throughout the world alternative guru should select as a course of action exceptionally cautiously to reduce buying and selling substantially extra than vital even in advance of they start trading.
A excellent offer of successful currency exchange buying and selling merchants have created it within on the overseas alternative company chiefly simply simply because they created your sensible collection when figuring out concerning the automated routine to handle on. The progression materials the purchaser making use of the actual essential specialized area analyse, automatic important results, international foreign cash impulses, notifies along with charts. One from the most successful aspect of it could be make fish an automatic fx currency procedure is simple and easy to join up to for, easy to discover, fast to create by using and instant.
However , why must a buyer make use of a powerful automated swapping regimen once they can do each point the actual process can accomplish? This particular saying isn’t appropriate; your individual guru is unable to do everything a powerful automated international different doing business prepare does. Typically the worldwide business industry is typically a whole day business area, retailers are completely no cost of fee to deal across the time the actual complete 7 days. To maximize earnings, your purchaser have to run his acquire as long as possible, across the clock if they could. Inside another fretting hand, no human tend to make strategy of investment even fifty percent of a day time in the front concerning the pc waiting plus building some sort of system, there’re bound to miss essential possibilities as quickly as these are taken, weary. An automatic progression can maintain see in the market on benefit applying typically the buyer 100 % time frame with out obtaining applying for absent vital probabilities. Anyone is typically flourishing inside of global money marketplaces sooner than you understand, in circumstance everyone trust in automatic trading strategies. The following technique genuinely features as well as offers assisted many hundreds of successful merchants.
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Top Five Reasons For Choosing Forex
Foreign exchange and stock comparisons all over the net are going to show the advantages of choosing to trade in forex. Of course if you’re searching for long term investment then that’s another thing, but for speculative traders the foreign exchange has many special features that make it particularly tasty. Here are the top five reasons for selecting forex trading over stock trading.
1. 24 Hour Market
One practical advantage of the foreign exchange market is that it is open for trading 24 hours per day Monday thru friday. This is because of the worldwide nature of the market and the proven fact that it is always business hours somewhere in the world, excluding weekends and holidays. So a forex trader can work a day job and trade in the evenings or early mornings.
2. Liquidity
Currency is liquid unarguably, if liquidity measures the ease of converting an asset into cash. More frequently it is taken as the quantity of money in a market. On this, too, currency scores really high.
Turnover in the currency market was almost $4 trillion each day about according to a survey by the Bank For world Settlements in December of 2007. It has potentially exceeded that now.
This is considerably more than is traded on all the stock markets in the world added together. In foreign exchange you are not restricted to trading in your own country or on your own nation’s currency, so the benefit to this trader of being part of this great market is clear. You have a much better chance of getting the price that you see or the price that you would like.
3. Openness
Another advantage deriving from the sheer amount of money in this market and its high trading volume, is the openness of the market. There is very tiny opportunity for insider dealing in a market which deals with the economic performance of entire states and involves every major finance establishment in the world. This implies that the retail trader is not off balance to the extent that may be true in the market and lends more weight to our forex stock debate.
4. Leverage
Leverage is the trader’s most necessary tool in that it allows a tiny fund to manipulate a giant position size, resulting in a massive proportional investment return, assuming that you are lucrative. The leverage offered by forex brokers tends to be higher than in stock trading.
In forex, a hundred times leverage is seen as standard or low, two hundred times is common and 400 is possible in some circumstances. Of course this makes foreign exchange trading intensely risky except for a successful trader it is a significant advantage as it implies more money can be made from less.
5. Trade Both Directions
When you trade forex, you are always dealing with a currency pair, exchanging one currency for another. This suggests that you can trade in both directions. As an example if you are trading EUR/USD, you can start by investing in either EU Bucks or US dollars depending on which one you suspect will rise. So you can buy or sell the pair ( go long or go short ).
In a way this is like trading stock options or futures, but with more pliability. The flexibility comes from the fact that currency values are relative to each other. They can never all fall at the same time, as stocks can. So this is another point for forex in the foreign exchange stock comparison.
Tags: currency trading, finance, foreign exchange, forex, forex trading, investing, money, stock trading, stocks, traders, trading
An Introduction To Forex Trading
Most people have heard of trading, like the New York Stock Exchange, and Forex trading isn’t far off from that. The difference is, is that Forex trading is the trading of currencies, not stocks. It also has a larger volume than stock and bond markets combined! As with stocks, it is a high-risk investment, but it can also have an extremely high return, easily doubling investments in minutes.
The best part about Forex trading, is that it is done using a margin. That is, you don’t need the full amount to buy a currency. A Forex trader can buy $100,000.00 with just $1,000.00. This allows traders to make huge profits with minimal investment. And the Forex market is open to all types of investors, not just big organizations, and banks.
The best place for an investor to start when considering the Forex market, is the Forex community. Research is key to understanding Forex trading. Consulting Forex forums and community boards can be extremely beneficial.
The next thing to do would be to choose a system. A system, is a specially designed method, software, or course developed by professional in Forex trading. There are many systems out there, so research must be dome to make sure the system fits your needs. Before purchasing a system, you should ask them a few questions like, how long have they been in this business, and and if there is a trial version available. Make sure that they have customer testimonials too.
By going to Forex forums, and chat rooms, one might be able to find out what system others are using, or what systems are recommended most. Most professional traders believe that having a trading system is an important factor in establishing a stable revenue in the forex market. Systems tell investors when, and what, should be done in each trading situation.
Another thing that an investor will need is a broker, to assist with transactions. There’s a wide variety of brokers, so be prepared with questions about their credentials. Ask them about their leverage, and their spread. As these are both determining factors in how much money the investor can make with each investment. The investor may also choose to handle transactions themselves.
An investor also needs to master analysis, and form a strategy, to get a competitive edge, and improve their odds. They need to learn to recognize the different factors that affect the Forex market. A person has a much better chance of success at trading forex, if they do their research, and know what to look for. And, in conclusion, it doesn’t matter if a person is experienced or a beginner in the world of Forex!
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Tags: currency trading, foreign currencies trading, foreign exchange, forex, forex market trading, investment, trading
Forex Trading?
Lots of individuals are getting curious about trading Forex. There are a number of reasons for this, but the most popular ones are the ease of entry into the markets, the opportunity to cash in on markets irrespective of what direction they’re moving in and the leverage that’s available for traders.
These are all strong reasons to trade Forex, however a trader must be careful. Leverage for example can be a disadvantage as well as a bonus, if a trader doesn’t fully understand a way to manage their risk.
That’s why it is very important for a trader to have a strong trading strategy, before they begin trading in the market.
The other issue they will need to think about, is how {to find} a very good Forex broker. Unfortunately, the Forex market is unregulated. This means that many brokers can in reality do as they like, and a few opt to to act in an unscupulous manner.
Signing up with a high quality Forex broker means that people will be ready to avoid things like slippage. Slippage is when a brokerage will re-quote a price {that a} trader needs to buy or sell at. This will always go on to some level, especially during fast moving markets, however top quality brokers will keep this to the bare minimum.
A top quality broker will additionally offer traders low spreads. Essentially the spread is the difference between the bid and ask price, or alternatively, what a particular currency can be bought or sold for at a certain time.
The greater the spread the more pricey it will be to trade. Good brokers give lower spreads. They will also give the opportunity for training and education, so that traders can develop market experience as well as their trading strategies.
It also means they will offer traders with the chance to receive up to the minute monetary data, so that they’re conscious of world events and the release of economic numbers, in addition to having the ability to use skilled charting programs, as any other skilled bank trader would.
Brokers both good and bad will also provide a trader the possibility to use leverage during a trade. For those not sure what this is, if as an example a trader trades at 10:1 leverage, they will only need to put down one dollar for every 10$ that they get within the market. twenty:1 would be one dollar for each $twenty that’s traded within the market.
When leverage is employed as part of a trading plan, where the risk is manged, then it can provide extremely good chances for increasing earnings. But, each trader needs to understand that it can magnify looses extremely quickly and as a result of of that it has to be treated with respect, particularly by beginners.
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How To Start Trading The Forex Market?
What Is FOREX or FOREX MARKET? PART I
The Foreign Exchange market (also referred to as the Forex or FX market) is the largest financial market in the world, with over $1.5 trillion changing hands every day.
That is larger than all US equity and Treasury markets combined!
Unlike other financial markets that operate at a centralized location (i.e. stock exchange), the worldwide Forex market has no central location. It is a global electronic network of banks, financial institutions and individual traders, all involved in the buying and selling of national currencies. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.
Traditionally, access to the Forex market has been made available only to banks and other large financial institutions. With advances in technology over the years, however, the Forex market is now available to everybody, from banks to money managers to individual traders trading retail accounts. The time to get involved in this exciting, global market has never been better than now. Open an account and become an active player in the largest market on the planet.
The Forex Market is very different than trading currencies on the futures market, and a lot easier, than trading stocks or commodities.
Whether you are aware of it or not, you already play a role in the Forex market. The simple fact that you have money in your pocket makes you an investor in currency, particularly in the US Dollar. By holding US Dollars, you have elected not to hold the currencies of other nations. Your purchases of stocks, bonds or other investments, along with money deposited in your bank account, represent investments that rely heavily on the integrity of the value of their denominated currency ¨the US Dollar. Due to the changing value of the US Dollar and the resulting fluctuations in exchange rates, your investments may change in value, affecting your overall financial status. With this in mind, it should be no surprise that many investors have taken advantage of the fluctuation in Exchange Rates, using the volatility of the Foreign Exchange market as a way to increase their capital.
Example: suppose you had $1000 and bought Euros when the exchange rate was 1.50 Euros to the dollar. You would then have 1500 Euros. If the value of Euros against the US dollar increased then you would sell (exchange) your Euros for dollars and have more dollars than you started with.
Example:
You might see the following:
EUR/USD last trade 1.5000 means
One Euro is worth $1.50 US dollars.
The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
The FOREX plays a vital role in the world economy and there will always be a tremendous need for the exchange of currencies. International trade increases as technology and communication increases. As long as there is international trade, there will be a FOREX market. The FX market has to exist so a country like Germany can sell products in the United States and be able to receive Euros in exchange for US Dollar.
RISK WARNING:
Risks of currency trading
Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with an broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity).The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value. Given the possibility of losing one’s entire investment, speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investors financial well-being.
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Tags: currency trading, foreign currencies trading, foreign exchange, forex, forex market trading, investment, trading
How To Start Trading The Forex Market? (part 3)
10 REASONS TO START TRADING FOREX!
More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons:
1) FOREX is the largest financial market in the world.
With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.
2) FOREX is a True 24-hour market.
The FOREX Market never sleeps. Trading positions can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.
3) There is never a Bear Market in FOREX.
You can have access to a seamless exchange of currencies. Currencies trade in “pairs” (for example, US dollar vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of every currency pair (for example, USD/CHF) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long ( you bought) or short( you sold).
4) High Leverage – up to 400:1 Leverage.
You are permitted to trade foreign currencies on a highly leveraged basis – up to 400 times your investment with Fenix Capital Management, LLC and with some other brokers.
Standard 100,000- US$ currency lots can be traded with as little as 0.25% margin, or $250.
Mini FX accounts are permitted to trade with just 0.25% margin, meaning, just $25 allows you to control a 10,000-unit currency position.
Futures traders, who are accustomed to margin requirements generally equal to 5-7%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there’s no comparison. If you’re looking for an efficient use of trading , trade the Forex Market.
5) Price Movements might be Highly Predictable.
Currency prices in the FX market generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the “technical” methods and strategies.
Unlike stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, to enter and exit positions.
6) YOU don’t pay commissions or fees to trade FOREX
When you trade FOREX, through Fenix Capital Management LLC (FCM) you can do it totally FREE of commissions and fees , regardless of your account size.
Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, only US$ 200 and they do not charge commissions or fees to trade or to maintain an account, regardless of your account balance or trading volume.
7) YOU don’t have to pay trading fees or exchange fees.
There are none of the usual fees, which futures and equity traders are accustomed to pay:
NO exchange or clearing fees,
NO NFA or SEC fees.
Because currencies trade over-the-counter (OTC), via a global electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.
In the equity and commodity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.
HOW to Forex brokers make money if they don’t charge commissions?
Like all traded financial products, over-the-counter currency trading involves a bid/ask spread, which represents the prices at which your counterpart is willing to trade. Your broker will receive a part of this bid/ask spread.
Because the currency market offers round-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders can be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.
9) Market Transparency.
Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the many recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing companies).
Because of this transparency, as an FX trader, you will be able to apply risk management strategies in accordance to your fundamental and technical indicators.
10) Instantaneous Order Execution
The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.
In Forex, order execution is all-electronic and because you’ll be trading via an Internet-based platform, instantaneous execution is routine.
There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.( will be continued )
To learn how to find the best online stock brokers, visit this site: online stock broker. Also you will find some tips on what to consider when comparing online stock broker. Get your online stock broker guide today!
Tags: currency trading, foreign currencies trading, foreign exchange, forex, forex market trading, investment, trading
How To Start Trading The Forex Market? ( Part 2)
Why is FOREX trading so popular?
Because you can trade from anywhere. From your kitchen table, bedroom, garage or from the nearest Starbucks coffeehouse ( most of them have wireless Internet connection).
If you have or like to travel, take your laptop with you and you can trade the FOREX anywhere in the world where you have an Internet connection.
When you want to start trading the Forex Market nobody is asking you for a diploma, a formal license or a proof of how many hours you have spent studying the Foreign Exchange Market and/or Banking Industry.
FOREX Trading is Economical and Start-up Costs are Low!
You can open an account to trade Forex with as little as US$ 200 at he most brokerage firms.
I personally do recommend Fenix Capital Management, LLC, which offers a state of art Trading platform, that allows you to place orders directly by clicking on the chart.
The Main Benefits of Trading the FX Spot Market are:
YOU don’t pay commissions or fees!
YOU can trade 24-hours a day !
YOU can trade up to 400:1 Leverage !
YOU can have FREE Streaming executable Price quotes and live charts!
It is important to know the differences between cash FOREX (SPOT FX) and currency futures.
In currency futures, the contract size is predetermined.
With FOREX (SPOT FX), you may trade electronically any desired amount, up to $10 Million USD.
The futures market closes at the end of the business day (similar to the stock market).If important data is released overseas while the U.S. futures markets is closed, the next day’s opening might sustain large gaps with potential for large losses if thedirection of the move is against your position.
The Spot FOREX market runs continuously on a 24-hour basis from 7:00 am New Zealand time Monday morning to 5:00 pm New York Time Friday evening.
Dealers in every major FX trading center (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva and New York/Toronto) ensure a smooth transaction as liquidity migrates from one time zone to the next.
Furthermore, currency futures trade in non-USD denominated currency amounts only, whereas in spot FOREX, an investor can trade in almost any currency denomination, or in the more conventionally quoted USD amounts.
The currency futures pit, even during Regular IMM (International Money Market) hours suffers from sporadic lulls in liquidity and constant price gaps.
The spot FOREX market offers constant liquidity and market depth much more consistently than Futures.
With IMM futures one is limited in the currency pairs he can trade. Most currency futures are traded only versus the USD.
With spot FOREX, you may trade foreign currencies vs. USD or vs. each other on a ‘cross’ basis, for example: EUR/JPY, GBP/JPY, CHF/JPY, EUR/GBP and AUD/NZD
More and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons: (will be continued)
RISK WARNING:
Risks of currency trading: Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with an broker allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity). The funds in an account that is trading at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value, given the possibility of losing one’s entire investment. Speculation in the foreign exchange market should only be conducted with risk capital funds that, if lost, will not significantly affect the investors financial well-being.
To learn how to find the best online stock brokers, visit this site: online stock broker. Also you will find some tips on what to consider when comparing online stock broker. Get your online stock broker guide today!
Tags: currency trading, foreign currencies trading, foreign exchange, forex, forex market trading, investment, trading
