Trading Library

Four factors are identified as fundamental determinants of the real euro to dollar exchange rate: The international real interest rate differential; Relative prices in the traded and non-traded goods sectors; The real oil price; The relative fiscal position.

The basic theories underlying the dollar to euro exchange rate:

Law of One Price

In competitive markets free of transportation cost barriers to trade, identical products sold in different countries must sell at the same price when the prices are stated in terms of the same currency.

Using CFDs are a great way for international share trading. You will be able to easily access and trade a wide range of international shares, stocks and other securities with one trading account with the CFD provider. You can choose to trade any markets around the world as they open and close. From the beginning of the day you can follow the active trading hours of New Zealand and Australia, Asia (China, Singapore, Hong Kong, Japan, etc...), European (Frankfurt, etc...), UK and finally the US and Canadian stockmarkets.

Secret to Successful the Trading

Everyone wants to know the secret on how to do anything. What is the secret to success? In most pursuits it would be persistence and perseverance. And that is certainly true with trading the markets. Being persistent in your trading and persevering through the tough times will eventually lead you to trading success. But you're here to learn the real secret to successful trading. What's the secret? Is it the trading system? Is it the type of market? Forex, stocks, bonds, options, commodities, futures or mutual funds? Do you have the next hot tip?

First of all, what is slippage? Slippage means that your order has been filled at a different price compared to the price on your order ticket. The amount of slippage is the difference between the initial order price and the price at which the order was filled.

How do you know that slippage is happening in your account? Take note of your original order price and match it with your actual executed order price. Also, research stock forums for other users who have had problems with slippage with CFDs. If you had any problems with slippage, leave a comment below.

A requote in terms of CFD trading means that these is a deficiency of liquidity in the underlying equity so the CFD trader had to be requoted the remainder of the position that was executed in the buy or sell ticket.

Trading Oil Using CFDs

Oil has risen dramatically over the recent years. Crude oil has risen from the average of about $12 per barrel of crude oil in 1998 to hitting recent highs of over $100 a barrel. Take advantage of rising oil prices by trading oil using CFDs.

Dividends and CFDs


CFDs over stocks have many of the benefits of holding the physical underlying company stocks. CFDs don't give the holder of the contract voting rights or franking credits. Most CFD providers will credit you a portion or all of the dividend, given that you are holding a long position with your CFDs when the company goes the ex-dividend. Check with your CFD provider's help desk or Product Disclosure Statement on the policies of how the dividend process works for your particular CFD provider.

CFD Trading has been the "New Kid on the Block" compared to standard stocks, and derivatives such as options and futures. CFD is an abbreviation for "Contracts for Difference" - and CFDs are simply that: a contract where you are awarded or liable for the difference of the price for the underlying stock between the time you opened the position and when you closed it.

How can i trade in share market? I can invest up to $1,500 for six months?

Trading and Investing are two different things. Trading should be a long term thing. Although your trades are in the short term, there is always a possibility of loss - you can't always win. And that's the inherent risk in trading.

So if you need the money back in 6 months, just put it your bank account.

But, if you treat trading seriously and professionally, it can pay off... Of course profits are never guaranteed.

Risk management is a critical part of a successful trading career. Your primary goal when daytrading or actively trading is to always protect your capital.

Something a little different from Share Trading... Here is an article from ForexTradingLog.com containing some information about the Australian dollar, its short history as well as how the Aussie behaves in the forex markets...

A blog entry discussing the Australian Share Market Game

The Australian Stock Exchange (ASX) often runs a virtual share market game for schools as well as for charity. Traders / Investors are often given $50,000 of virtual cash to invest on the ASX. The number of shares are often limited to the ASX100 or ASX200 companies. The time horizon is usually a few months, from two to six months.

Read the Full Article Here.

Recommended Websites