The Difference Forex and Futures

1. A Forex trader could trade more transaction compared to the futures market (the trading volume could be a times larger), and the risk will be strictly under control. The trading volume of the Forex market is 46 times larger compared to the futures market, moreover Forex traders could make more profit from the Forex market due to the larger trading volume (the transaction volume is a few times larger), the REFCO Switzerland rich transaction platform allowed transaction between 1-100 times to be carry on, moreover a Forex trader could decide his or her own transaction amount, for example: Your account has $30,000, the basic transaction unit is each $1,000 (which transaction amount in $1.00, million), namely, so the proportion of the margin of each transaction unit is 100:1.

2. The risk of the Forex trader is under control, such margin call will not happen compared to futures, through the Forex trading system, your risk will receive the strict limit, even if your margin if lower then the deposit required, the Forex trading system will automatically settle your position, this means even if a Forex trader suffered losses, moreover if the market is suffering from a disaster fluctuation, your loss could not surpass your account amount. In order to understand the advantages, please apply for the demo account to carry on the complete zero risk.

3. A Forex trader will receive a large limitation of liquidation and a relatively fair market because the trading volume of the Forex market is large and it is also the largest liquidation market in the world. At present the trading volume in the Forex market is 140 billion Dollars, such big market will completely digest your transaction cash.

4. A Forex trader may do 24 hours transactions and other markets are different, the Forex market is a 24 hour linkages market, it starts from every Sunday before dawn Australian Sydney market, substandard collect the transaction center Singapore, Tokyo, London, Frankfurt to New York continuously to open, such linkage market enable you to do 24 hours transactions, also provide flexibility for Forex trader to do transaction.

Difference Between Forex and Stock

1. The Forex market has a lot of advantages compare to stock market: A Forex trader could make profit through the market no matter if it is bearish and bullish which is different from the capital market, Forex has no strict regulation in speculation, no matter whether it is a long-term or a short-term transaction there is still a hidden profit, moreover, Forex market is a double-transaction market which means Forex traders could make profit through both upward and downward trend.

2. Forex traders could obtain a much larger transaction compared to the stock market, through the Forex trading, Forex traders could obtain 100 times larger transaction compared to the stock market. According to the present US situation, if a Forex trader invests $1,000 in the stock market, the trader may obtain $2,000 of stock domination property with a proportion of 2:1, but through Forex trading, a Forex trader can do transaction with a proportion up to 100:1.
Forex trader may make profit from the ordinary news, like the interest rate change, Forex market is closely related to various countries' politic, economy and culture, Forex traders could also obtain profit from other kinds of news, for example interest rate level change, will influence the interest of the Forex deposit.

3. Forex traders could do 24 hours trading. The stock market can only be traded during daytime at a specific time, generally from 9:30a.m. to 4:00p.m.. If you too have your own full time job, then you will face the dilemma - either to give up your full time job or forgo the trading opportunity. But Forex market can be traded 5 days a week and 24 hours a day, Forex traders can trade during their free time which is normally at night after working hour.

4. If a trader analyze based on technical analysis, Forex trading would be much more suitable for such traders because the Forex market has a very large trading volume. Currently the Forex market has daily trading volume of 190 billion Dollar, such giant market will completely digest a fore trader's transaction cash, under such situation the accuracy of the technical analysis would be much higher then any financial market, the chances of using technical analysis to make profit would be much more higher.

5. In the stock market there are hundred and thousand kinds of stocks, then choosing stock will be a very difficult matter. But in the Forex market, the currency combination is extremely limited, this may enable Forex traders to concentrate on these currencies combination, and could follow the trend quickly.

Pakistan agrees changes to confront economy slide

WASHINGTON - Pakistan’s government has agreed that a shift in fiscal and monetary policy will be necessary to confront a deteriorating economic situation, the International Monetary Fund said Wednesday.

In a statement following a 12-day visit to Islamabad and Dubai to meet with Pakistani officials, the IMF mission said the country is on track to comply with the economic programme agreed to under a $7.6 billion credit facility granted in November. But it said Pakistan’s economy has been hurt by worsening global economic conditions.

“The deterioration in the global economic environment and weaker economic activity call for an update of the economic framework and a recalibration of economic policies,” the statement said. “In particular, discussions focused on the fiscal program and the monetary policy stance.”

To achieve fiscal targets for fiscal years 2009 and 2010, which end in June, there was agreement that additional revenue-boosting measures and spending cuts will be necessary, the IMF said.
Meanwhile, the fund said that the current monetary policy stance is appropriate but that rates could be lowered in the future if both headline and core inflation decline, international reserves remain solid, and the government avoids resorting to central bank financing.

In Dubai, Pakistan Finance Minister Shaukat Tarin told that the IMF had agreed to release the second payment of the programme, worth a little over $800 million.

SBP plans bill to protect banks consumers rights

KARACHI - The State Bank of Pakistan is planning to introduce ‘Consumer Protection Bill’ soon with an objective to improve banks’ services towards consumers as well as to guarantee their protection in an increasingly market-oriented financial system.

The laws, regulations and codes of the said bill will be framed in line with international best practices, which would among others provide guidance on issues of transparency, confidentiality, availability of statements, account servicing, protection against fraud, unfair contracts and lending practices, methods of debt collection, arbitrary penalties, etc.

For this purpose, an appropriate dispute settlement mechanism will be established by SBP under its Consumer Protection Department which had already established last year.

The CPD is expected to monitor compliance with such new laws and regulations. According to the sources in the Ministry of Finance, SBP will be making consumer protection infrastructure to supplement and reinforce these laws.

The SBP on its part is focusing on effective compliance with customer service regulations and following it up with proper enforcement to motivate banks to render good service and deal fairly with customers, sources said.

In the coming years, the financial sector will increasingly be deregulated so as to increase competition. The challenge is to ensure that this deregulation does not disrupt the level or reliability of service to consumers. The government’s strategy in this area includes policy recommendations to secure consumer rights in an ever-growing highly liberal financial system.

Meanwhile, according to a document titled Poverty Reduction Strategy Papers II prepared by Ministry of Finance, the government is very much inclined to strengthen the supervisory regime of the SBP. The main focus of the strategy is the further refinement of regulations and the supervision framework. The govt wants to encourage Pakistan Banks’ Association (PBA) to adopt a Banking Code to commit banks to fairness, disclosure and ethical standards.

Courtsey: The Nation

Unveils £24bn loss

LONDON: Royal Bank of Scotland on Thursday reported a loss of 24.1 billion pounds ($34.3 billion) for 2008, the biggest in UK corporate history, and said it planned to place 325 billion pounds of assets in a state insurance scheme.

The bank said the record deficit reflected a 16.2 billion pound writedown against acquisitions, including its takeover of parts of Dutch rival ABN Amro in 2007, plus a further 7.9 billion pounds in operating losses.

RBS also announced plans to raise a further 13 billion pounds from the government through the issuance of B shares, and unveiled a cost-cutting programme aimed at reducing expenses by 2.5 billion pounds.

“We have moved purposefully to take major decisions that are necessary to restructure the group,” RBS chief executive Stephen Hester said in a statement.

“We are charting a path to standalone strength and with it the goal of justifying the support of the UK government and all our shareholders.”

The plan came as Britain launched a scheme that could end up insuring more than 500 billion pounds worth of toxic assets in a bid to get lending in the recession-hit economy. Under the government-backed insurance scheme designed to support ailing banks, RBS will be responsible for the first 19.5bn pounds of losses — or 6pc of the asset value.

Courtsey: The News

Sharifs disqualification panics businessmen, investors

KARAHI: The business community and economic experts have termed the disqualification of Sharif brothers a big domestic political upheaval which would derail the process of economic growth, hurting the pace of industrial development and production activities.

The capital market of Pakistan would face another fresh wave of political uncertainty, carrying potential risks for the positive and improved macroeconomic outlook. Therefore, the next few months are going to be crucial for the overall prospects of the economy, economic experts told TheNation on Wednesday.

The first victim of the disqualification decision was the Karachi Stock Exchange. Before the announcement of the decision, the KSE was moving in the positive zone, but as the news of disqualification hit the market, the equities hit the lower locks, landing the investors into a serious problem.

The KSE-100 index quickly lost 294 points and it closed at 5580 points. In other words, the KSE 100-index lost 5 per cent of its worth immediately after the announcement of the SC verdict. The stock market analysts are of the opinion that the market could face selling pressure for another couple of days because of political uncertainty triggered by the disqualification of Sharif brothers.

The stock market witnessed a positive trend in the morning session on Wednesday by gaining above 50 points and a massive change in political activities altered the whole scenario that threw the shares to the bottomline, said Shahid Ali, CEO Habib Metropolitan Financial Services (HMFS). The investors offered for sale their stakes but the buyers sidelined from the market while anticipating more erosion in the value of equities. The volume of KSE-100 index stood at 145.42 million shares, slightly higher than 135.55 million shares traded a day before. However, the market capitalization fell to 36.89 billion dollars (0.94 per cent) on Wednesday when compared with 37.24 billion dollars on Tuesday.

Courtesy: The News

IMF, Pakistan revise downwards macroeconomic targets

ISLAMABAD: The International Monetary Fund (IMF) and Pakistan on Wednesday revised downward all macroeconomic targets including GDP growth rate to 2.5 per cent from earlier envisaged target of 3.5 per cent for the ongoing fiscal year to approve the second tranche of $800 million for Islamabad under Standby Arrangement (SBA) programme.

Both sides also agreed to revise downward inflation target to 20 per cent from earlier set target of 23 per cent, FBR tax collection to Rs1,300 billion from earlier envisaged target of Rs1,360 billion for 2008-09.

Secretary Finance Dr Waqar Masood, while talking to The News from Dubai on Wednesday night, confirmed that the IMF executive Board would approve its second tranche for Pakistan by end March 2009 after both sides agreed on all major issues.

The successful completion of first review of the IMF for gauging the economy of Pakistan till Dec 31, 2008 and envisaging targets for the next two quarters will pave the way for convincing the Bretton Wood Institution to provide an additional $4.5 billion to Pakistan in its bid to further build up its foreign currency reserves that have already gone up to $10.2 billion.

However, the sources told this scribe that the Fund authorities linked decrease in discount rates with reduction in core inflation, which means that the central bank is unlikely to scale down discount rates in near future.

During the policy level talks held at Dubai on Wednesday, Pakistani side was led by Advisor to Prime Minister on Finance Shaukat Tarin while the IMF delegation was led by Masood Ahmed, head of its Middle Eastern Department of the IMF.

The GDP growth target was scaled down from 3.5 per cent to 2.5 per cent for the ongoing fiscal year 2008-09. The GDP growth target was envisaged at 4 per cent for the next budget 2009-2010.

The IMF prescriptions described as, one shoe fit for all, approach will result into lower GDP growth for the ailing economy of Pakistan in the context of tight fiscal and monetary policies for the next fiscal year as well, said an independent economist while talking to this scribe here on Wednesday.

The inflation, the official said, would be aimed at bringing down from 23 per cent to 20 per cent by June 2009. For the next fiscal year 2009-2010, the inflation target was envisaged at 6 per cent.

Both the IMF and Pakistan also evolved consensus for revising downward the FBR tax collection target from Rs1,360 billion to Rs1,300 billion for the ongoing fiscal year. Pakistani side explained to the IMF that the FBR was facing revenue shortfall by Rs20 billion alone in January 2009 and the same trend persisted in Feb 2009, leaving no other option to scale down the annual tax collection target.

The IMF agreed to reduce the tax collection target by Rs60 billion keeping in view shortfall being faced by the FBR, said the official sources.

The adjustment in nominal GDP growth by scaling down the real GDP as well as inflation paved the way for reduction in overall FBR tax target from Rs1,360 billion to Rs1,300 billion, which will be equivalent to 10 per cent of the GDP.

The IMF and Pakistan also agreed to set 10.6 per cent of the GDP for tax collection target of the FBR for the next budget 2009-2010, said the official.

The IMF had approved $7.6 billion loan under 23 month SBA program on November 2008 and provided front loaded $3.1 billion to Islamabad. The second tranche of $800 million by end March will help Islamabad to build up reserves position in months ahead.

Courtesy: The News

Gwadar may lose business to Iranian port of Chabahar

KARACHI: The Gwadar Port that was envisioned to become a trans-shipment port and shipping hub for the landlocked Central Asian States (CAS), Afghanistan and Western China may lose this opportunity to the fast developing Iranian port of Chabahar, a Gwadar Port official said.

The Gwadar Port is yet to become fully operational. The running of the port affairs was given to Port of Singapore Authority (PSA), one of the biggest port operators, so that it will fetch considerable business for making Gwadar Port a success.

The PSA has not fulfilled its business plan of making the port fully operational by 2008. The PSA says the government has failed to provide basic infrastructure including road and rail links that are the main impediments in Gwadar Port development.

To ensure that the port stays a viable destination the Gwadar Port official suggested resuming container business immediately even if in small amount through PSA or if they fail through own resources.

The government should bear the cost of road transportation to resume export activity from Gwadar Port, he said.

The official suggested restricting PSA to the present terminal and the areas adjacent to the terminal handed over to them may be retrieved and handed over to Gwadar Port Authority.
The official further said that master plan of Gwadar Port need to be approved, presently it is approved in principle but nothing so far has been done. Master Plan will protect the entire east bay and coastline east of Surbandar. By securing Master Plan, the basic theme of converting Gwadar Port into a hub port will be secured.

In order to attract sustainable business like Afghan Transit Trade or container cargo at Gwadar Port, one of the viable options is to complete road connectivity of the Port with Chaman and Afghanistan followed by shifting total or part of Afghan transit trade to Gwadar Port.
The land required for Free Zone has been dropped due to its high cost (Rs6.7 billion). It is suggested that the concerned agency at the Federal Government level may be requested to remand the case to the District Government authorities for review and submission of a workable plan, the official said.

The construction of East Bay Expressway may be undertaken on a fast track as the present arrangement for passage of the cargo truck within town has lot of repercussions. The concerned agency may be directed to execute the development work on priority.

According to government official it is justified to extend Rs.585million subsidy to the Gwadar Port to make it viable. Government supported Port Qasim for ten years to make port fully functional, he reminded. Similarly this will help the Gwadar Port to operate and serve the basic purpose of the port and generate revenues and job opportunities for the people.

He further stated that Stevedoring/Clearing/Ship Agency License to be given to locals and training should be given to the locals in cargo handling to reduce their grievances.

It is learnt that Port of Singapore Authority is trying to attract Afghan Transit Trade and get mining sector to export copper and chrome from Gwadar Port. In this regard PSA is briefing the government of Balochistan to work on connectivity.

It is also said that PSA is pursuing the government to add Gwadar Port in Afghan Trade Notification so that some trade should be started from Gwadar as well.

However ports and shipping industry shows reservation on PSA role and said that PSA submitted plan for 40 years specifying business in Gwadar.

According to the PSA business plan the port was to be operational by 50 percent in 2007 and 100 percent in 2008 and had indicated business comprising of coal and container cargo.
The plan also indicated approximate revenue generation for Gwadar Port Authority during the period 2007 and 2008. But PSA, so far relied totally on TCP to have business and lucrative subsidies. It has totally failed in bringing in business to Gwadar Port specially containers.
However PSA says that ports are not run in isolation, port are catalyst for trade and in the absence of basic infrastructures, free zone industrial areas and most importantly the connectivity links to the ports which are major hurdles in running the ports. PSA has fulfilled all agreed requirement but government so far has failed to fulfil the agreed requirements of the ports.

Courtesy: The News

Is It Easy To Learn Forex Trading?

If I said NO would you keep reading? Many would move on searching for a site that claims to offer some “Easy Forex Trading System.” Well, the truth is, the continual barrage of sites with guru’s who sell the idea that trading is easy are actually making it harder than it needs to be. Learning to trade Forex profibably requires a bit of work and the right Forex education. Can you accept that? If so you have taken the first step; you are closer to trading profitably than anyone who is searching for some "easy Forex system."

The time and work you put in with our Forex training will quickly provide you with the foundation you need to make trading the Forex market a lucrative career. I teach methods that simplify trading, rather than adding complexity to an already complex situation. You will gain knowledge of stress-tested Forex strategies supplemented with Forex training which focusing on what really matters in currency trading market.

I’ve seen struggling Forex traders spend five or more years attempting to become profitable. Ironically, these are often the traders who started off searching for (and believing they would find) an easy Forex system which requires no work on their part. But what happens is they become consumed the massive tsunami of counterproductive and often over-complex Forex strategies that flood the Internet. Eventually they become discouraged and give up on Forex trading altogether. It does not have to be this way! The market follows predictable paths, but you have to learn its language and understand the underlying logic of methods you are using to trade.

The Bottom line is that I will sincerely do everything in my power to help you learn Forex and realize your financial goals. This site was created for this purpose and together we will empower you to achieve.

Forex Home Business

The more you understand about any subject, the more interesting it becomes. As you read this article you’ll find that the subject of forex home business is certainly no exception.

When running a forex home business, a person quickly gains knowledge of how the business world works. Whether it be selling crafts, doing a home delivery business, or selling real-estate, after investing a lot of time and effort into a home or small business, a person quickly becomes aware of the few basic business truths that govern business.

One of those truths is that you have to have time and money to start a small business or any business for that matter. More often than not, the people that have the time dont have the money to invest in a home-based business and the people that have the money dont have the time. With Forex home business, it is quite possible to generate an income with a small time investment per day, after studying FOREX for a few months, and a very small investment as little as $50 in some cases.

The second truth, and these are probably quite obvious to most people, is that in order to make money a business has to have some sort of product to sell or perform some type of service. In the FOREX world, nothing is being sold and no service is being performed, but rather money is being exchanged. You are making a profit based on the actual exchange value of one currency against another currency. This eliminates the need for employees, such as customer service personnel and human resource people if your company were to become that big.

Is everything making sense so far? If not, I’m sure that with just a little more reading, all the facts will fall into place.

Also, because of the huge size of the FOREX market, trading nearly $1.5 trillion dollars a day, such things as social events, bad publicity, and changes in political climate will have no effect on your business. In fact, after studying FOREX, you will be able to see how these things will actually benefit your FOREX home business.

The third and last classical business truth is that most people are prevented from starting a home-based business because they dont feel good enough about themselves. They dont feel like theyre educated enough. I read stories all of the time about people that feel passionate about something or they just pick something that they are relatively good at or have done before and start a business. They just take a chance. If you want to do it, step out. Take that first step. Dont drop any huge sums of money, of course, but do a little research, make a small investment and start your adventure down to the road to FOREX trading.

You dont need a doctorite degree to get involved with FOREX trading, but after a couple of months of good study, its quite possible to generate a significant source of cash from FOREX trading. Forex traders study the political and economic trends in the economically important countries, including USA, Japan, England or the European Union, and make an assessment of the present or future purchase values of these currencies in comparison with each other. Again, the process of sale and purchase is like any other market activity, except that the time period varies. Blindly trade. Forex home business is not about gambling. Consider a situation where you think that the price of a given commodity, say, silver, gold, or wheat, will increase in the near future.

You can’t predict when knowing something extra about forex home business will come in handy. If you learned anything new about forex home business in this article, you should file the article where you can find it again.

Forex Home Business

The more you understand about any subject, the more interesting it becomes. As you read this article you’ll find that the subject of forex home business is certainly no exception.

When running a forex home business, a person quickly gains knowledge of how the business world works. Whether it be selling crafts, doing a home delivery business, or selling real-estate, after investing a lot of time and effort into a home or small business, a person quickly becomes aware of the few basic business truths that govern business.

One of those truths is that you have to have time and money to start a small business or any business for that matter. More often than not, the people that have the time dont have the money to invest in a home-based business and the people that have the money dont have the time. With Forex home business, it is quite possible to generate an income with a small time investment per day, after studying FOREX for a few months, and a very small investment as little as $50 in some cases.

The second truth, and these are probably quite obvious to most people, is that in order to make money a business has to have some sort of product to sell or perform some type of service. In the FOREX world, nothing is being sold and no service is being performed, but rather money is being exchanged. You are making a profit based on the actual exchange value of one currency against another currency. This eliminates the need for employees, such as customer service personnel and human resource people if your company were to become that big.

Is everything making sense so far? If not, I’m sure that with just a little more reading, all the facts will fall into place.

Also, because of the huge size of the FOREX market, trading nearly $1.5 trillion dollars a day, such things as social events, bad publicity, and changes in political climate will have no effect on your business. In fact, after studying FOREX, you will be able to see how these things will actually benefit your FOREX home business.

The third and last classical business truth is that most people are prevented from starting a home-based business because they dont feel good enough about themselves. They dont feel like theyre educated enough. I read stories all of the time about people that feel passionate about something or they just pick something that they are relatively good at or have done before and start a business. They just take a chance. If you want to do it, step out. Take that first step. Dont drop any huge sums of money, of course, but do a little research, make a small investment and start your adventure down to the road to FOREX trading.

You dont need a doctorite degree to get involved with FOREX trading, but after a couple of months of good study, its quite possible to generate a significant source of cash from FOREX trading. Forex traders study the political and economic trends in the economically important countries, including USA, Japan, England or the European Union, and make an assessment of the present or future purchase values of these currencies in comparison with each other. Again, the process of sale and purchase is like any other market activity, except that the time period varies. Blindly trade. Forex home business is not about gambling. Consider a situation where you think that the price of a given commodity, say, silver, gold, or wheat, will increase in the near future.

You can’t predict when knowing something extra about forex home business will come in handy. If you learned anything new about forex home business in this article, you should file the article where you can find it again.

How to Trade Forex

Trading foreign exchange is exciting and potentially very profitable, but there are also significant risk factors. It is crucially important that you fully understand the implications of margin trading and the particular pitfalls and opportunities that foreign exchange trading offers. On these pages, we offer you a brief introduction to the Forex markets as well as their participants and some strategies that you can apply. However, if you are ever in doubt about any aspect of a trade, you can always discuss the matter in-depth with one of our dealers. They are available 24 hours a day on the Saxo Bank online trading system, SaxoTrader.

The benchmark of its service is efficient execution, concise analysis and expertise – all achieved whilst maintaining an attractive and competitive cost structure. Today, Saxo Bank offers one of Europe's premier all-round services for trading in derivative products and foreign exchange. We count amongst our employees numerous dealers and analysts, each of whom has many years experience and a wide and varied knowledge of the markets – gained both in our home countries and in international financial centres. When trading foreign exchange, futures and other derivative products, we offer 24-hour service, extensive daily analysis, individual access to our Research & Analysis department for specific queries, and immediate execution of trades through our international network of banks and brokers. All at a price considerably lower than that which most companies and private investors normally have access to.

The combination of our strong emphasis on customer service, our strategy and trading recommendations, our strategic and individual hedging programmes, along with the availability to our clients of the latest news and information builds a strong case for trading an individual account through Saxo Bank.

Terms of trading are agreed individually depending on the volume of your transactions, but are generally much lower in cost when compared to banks and brokers. Your margin deposit can be cash or government securities, bank guarantees etc. Large corporate or institutional clients may be offered trading facilities on the strength of their balance sheet. The minimum deposit accepted for an individual trading account depends on the account type. Trade confirmations and real-time account overview are built into SaxoTrader, while further account information can be produced in accordance with your specific requirements