Monday, 22 September 2014

Frequently Used Trade-Terms Starting From Alphabet ‘C’ – Explained By Barry Sendach

The word Currency starts from the alphabet ‘C’ and here we are going to discuss few terms used in Forex market that starts from the same letter ‘C’. As Forex Market is all about exchange of currency, Forex Market Experts like Barry Sendach consider these terms as important. Check out the list of terms given below –

  • Cable – It is the term used to describe the exchange of British pound with US dollar.
  • Candlestick chart – It’s the chart showing details like daily high, low, closing and opening price. If the close is lower than open, then candlestick is filled in and if the open is lower than close, then the body is left empty.
  • Capital Markets – The capital (bonds, stocks etc.) traded in the market, usually for long or medium term investing.
  • Carry Trade – It is the investment stage when the trader purchases a higher yielding currency with capital of less profitable one to gain good interest rate differential.
  • Central Bank – It is a national level financial organization working independent of government to implement policies for printing money.
  • Chartist – A technical analyst who checks for data to reveal potential trends in the market.
  • Clearing – Confirmations or settlements done for trade.
  • Close a position – Also known as Position squaring. It implies to getting rid of position – Buying back a position or selling it.
  • Commission – The fee charged to broker for transactions.
  • Confirmation – Verification of documents for completion of trade to know the fee, date, commissions, settlement and price.
  • Contagion – Term used to describe range of economic crisis from one market to other.
  • Contract – Standard trading agreement for currency exchange in Forex Market.
  • Convertible currency – Set of currencies that can be exchanged for other currencies or gold.
  • Cost of carry – The cost to sustain some position in the market from interest parity condition to determine forward price.
  • Counterparty – The risk involved in financial transaction that may act as obstacle in meeting the contractual terms. Experts like Barry Sendach suggest people with tips to reduce the risk level.
  • Cover on a bounce – Recommendation to exit from trade on rise of support level.
  • Cover on approach – Recommendation to exit trades for profit on tactic to a support level.
  • Credit on checking – Check for credit availability on counterparty to carry out transaction.
  • Credit netting – An agreement to avoid continuous credit check
  • Cross rate – Currency pairs quoted excluding the domestic currency for exchange.
  • Currency Pair – Currency quoted in pairs like EUR/USD – The first is the base currency other is the quote currency.
All the above-mentioned terms are commonly used by traders while exchanging currency. After reading all these forex-terms explained by Barry Sendach, you would easily understand the reports and discussions.

Wednesday, 10 September 2014

3 Things Every Trader Should Plan In Advance According To Barry Sendach

In the world of trade, resistance and support are two of the most powerful pillars. To build a successful strategy, it is vital to include one out of support and resistance to them. Support and resistance offer clues to the investors planning to invest in the market and ideas to trade for profits. Today the support and the resistance. One can know the support and the resistance by reading the technical analysis reports to conclude three point the trader should focus on –
  • Trade direction
  • Entry time
  • Exit point
Support is the currency pair below the difficulty price level and resistance is above the difficulty price level. Think of the area between resistance and maximum profits. The pair of these two terms will keep on changing between two levels until you encounter the breakdown situation.

Theoretically, support is the level for price in demand with strong purchasing power to prevent the price from declining drastically. Rationally, the price started to get closer to support and became cheaper in process. After buyers consider it as profitable deal and invest into it. On the other hand, sellers found it as the deal of loss as they are getting least profit on selling something they expected more from. In that case, the demand is compensated by supply (seller), demand (buyers) on agreement. They restrict the price from fluctuating or falling below. According to Forex Market experts like Barry Sendach, it is to stabilize the market. One day everyone has to face the loss situation. To make it bearable and neutral for all, marketing organizations restrict the pricing values to reduce the seller’s loss and limit the buyer’s profit. This equalizes the investors’ money. Otherwise, no one will sell his assets and there will be no trade.

Most of the market experts like Barry Sendach suggest people of one rule, more experience they have in the market, stronger support and resistance level they will gain. This rule is clearly mentioned in the daily charts. So, if you are a newbie planning to invest in in Forex Market, plan for three things – direction, entry and the exit. Surely, you will have a profitable trade.