New Currency Pairs Added To Trading Room Watch List

[Reg]

Live trading room proforexroom today announced additional currency
pairs to its trading room. PFR offers a live trading room for Forex
traders and Forex signals service for members. The majority of trades
are made in the traditional main currency pairs such as the four
majors but we have added additional FX pairs due to popular demand PFR
said today.Live trading room proforexroom today announced additional
currency pairs to its trading room. PFR offers a live trading room for
Forex traders and Forex signals service for members. The majority of
trades are made in the traditional main currency pairs such as the
four majors but we have added additional FX pairs due to popular
demand PFR said today.

"We have tended to shy away from the exotic currency pairs
http://www.easy-forex.com/ExoticCurrencies.aspx such as Thai baht or
the Czech koruna http://en.wikipedia.org/wiki/Czech_koruna and have
focused on the seven most liquid currency pairs in the world, which
are the four majors:

EUR/USD (euro/dollar)
USD/JPY (dollar/Japanese yen)
GBP/USD (British pound/dollar)
USD/CHF (dollar/Swiss franc) and the three commodity pairs:
AUD/USD (Australian dollar/dollar)
USD/CAD (dollar/Canadian dollar)
NZD/USD (New Zealand dollar/dollar)

These currency pairs, along with their various combinations (such as
EUR/JPY, GBP/JPY and EUR/GBP) account for more than 95% of all
speculative trading in FX. " PFR said today.
What is carry?

When asked about carry trading PFR responded "We don't do carry
trading in our proforex live trading room or offer carry trading
strategies in our signals service". Carry is the most popular trade in
the currency market, practiced by both the largest hedge funds and the
smallest retail speculators. The carry trade rests on the fact that
every currency in the world has an interest rate attached to it. These
short-term interest rates are set by the central banks of these
countries: the Federal Reserve in the U.S., the Bank of Japan in Japan
and the Bank of England in the U.K. http://en.wikipedia.org/wiki/Central_banks
... members tend to like swing trading intraday and daytrading using
scalping and hedging strategies."

But, What's the idea behind carry? Wouldnt it be worth offering to
members?

PFR responded: "The idea behind the carry is quite straightforward.
The trader goes long the currency with a high interest rate and
finances that purchase with a currency with a low interest rate.
During 2005, one of the best pairings was the NZD/JPY cross. The New
Zealand economy, was buoyed by huge commodity demand from China ,
rising housing market, has seen its rates rise to over 7% and stay
there, on the other hand Japanese rates have remained at 0%. A trader
going long the NZD/JPY could have harvested 725 basis points in yield
alone. On a 10:1 leverage basis, the carry trade in NZD/JPY could have
produced a 72.5% annual return from interest rate differentials alone
without any contribution from capital appreciation. Now you can
understand why the carry trade is so popular! But before you rush out
and buy the next high-yield pair, be aware that when the carry trade
is unwound, the declines can be rapid and severe. This process is
known as carry trade liquidation and occurs when the majority of
speculators decide that the carry trade may not have future potential.
With every trader seeking to exit his or her position at once, bids
disappear and the profits from interest rate differentials are not
nearly enough to offset the capital losses. Anticipation is the key to
success: the best time to position in the carry is at the beginning of
the rate-tightening cycle, allowing the trader to ride the move as
interest rate differentials increase... Essentially though our Forex
services and education information are based on short term, quick in
and out trading strategies"

FX Jargon ... How easy is it for members new to Forex to understand
your products say, your live trading room?

"FX Jargon is not that complicated, in fact currency trading is easy
to pick up the terminology" PFR said. Cable, sterling, pound -
alternative names for the GBPGreenback, buck - nicknames for the U.S.
dollarSwissie - nickname for the Swiss francAussie - nickname for the
Australian dollarKiwi - nickname for the New Zealand dollarLoonie, the
little dollar - nicknames for the Canadian dollarFigure - FX term
connoting a round number like 1.2000Yard - a billion units, as in "I
sold a couple of yards of sterling. Our trading room will have support
if there are any questions from traders about the Forex trading
strategies and systems being employed."

PFR went on to further add that the new currency pairs in the trading
room pool are being traded from Monday 19th April, 2010.

--
Tell your friends about the free 2 week trial to proforex room; go there now http://www.proforexroom.com

You received this message because you are subscribed to the Google
Groups "Proforexroom Fans" group.
To post to this group, send email to proforex...@googlegroups.com
To unsubscribe from this group, send email to
proforexroom-f...@googlegroups.com
For more options, visit this group at
http://groups.google.com/group/proforexroom-fans?hl=en