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Featured Articles 2013

Featured Articles

December 19, 2013

Ask Your Advocate: Should I Trade Bitcoins?

Question for the Advocate:

I have seen a lot of talk about Bitcoins and some forex brokers advertise trading it. Do you think it is worth pursuing for trading?

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December 16, 2013

Ask Your Advocate - What Drives Forex Rates? (Update)

This is a follow up to Ask Your Advocate: What Drives Forex Rates? In the article, I discussed the currency bvasis swaps and the importance of short-term interest rates in driving the forex market. I came across this article and it is a real-time example of what appears to be supporting the EURUSD and EUR crosses, which is confounding many in the market.

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December 14, 2013

Ask Your Advocate - What Drives Forex Rates?

Question for the Advocate:

I was reading this article, Cross-Currency Basis Swaps as a Measure of Stress in Ask Your Advocate - What Are Cross Currency Basis Swaps?

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December 11, 2013

Ask Your Advocate: What Does Tapering Mean?

Question for the advocate

I noticed there's talk of tapering the USD? I was trying to get a better understanding of the subject but hoped you had better information sources on it. I basically want to understand the subject on it own and the effect it'll have on the currency.

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December 03, 2013

Ask Your Advocate - What Are Cross Currency Basis Swaps?

Question for the Advocate

What are cross currency basis swaps? I read that it is one reason why the euro has been bid. I would appreciate an explanation.

 

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December 09, 2013

Ask Your Advocate: Forex Signal Providers – Caveat Emptor

Caveat Emptor = Let the Buyer Beware

Question for the Advocate:

I am having trouble making money trading and thinking about signing up with a forex signals provider. Do you think this is a good idea?

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December 03, 2013

Ask Your Advocate - Is This Illegal?

Question for the Advocate:

We think what BROKER does is illegal. What do you think?

This is what my BROKER sent me:

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November 26, 2013

Forex Hedging: Stop Paying Away the Spread

By Jay Meisler

 

My feelings on forex hedging were presented in this article Why I Hate Hedgingo. With that said it is a popular feature among retail forex traders using the MT4 platform. What many traders seem not to be aware of is that you can close a hedged position without paying an extra spread. I can’t imagine how much money has been lost trying to trade out of a hedge to recapture the spread rather than just closing it out.

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November 25, 2013

Ask Your Advocate: What is Optimum Leverage for the Online Trader?

Question for the Advocate:

What is the optimum leverage for an online trader and what is considered overleverage?


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November 21, 2013

Ask Your Advocate: Why Does Slippage Always Work Against Me?

 Question for the Advocate:

How come slippage will always work against you? Let’s say you enter the weekend with a EURUSD long position @ 1.3500 and a stop @ 1.3550. Israel attacks Iran over the weekend and Sunday night the first quote is 1.3620. You will have endless discussions about the price with your bank/broker as to how big the slippage is/was and at what price you will be executed (probably around 1.36 if you make a big fuss). But let’s assume you were long @ 1.3500 with a limit TP @ 1.3550, they will not grant you an

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November 18, 2013

Federal Court in New York Orders MF Global Inc. to Pay over $1 Billion in Restitution

Release PR6776-13

November 18, 2013

Federal Court in New York Orders MF Global Inc. to Pay over $1 Billion in Restitution to Customers of MF Global Inc.

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November 16, 2013

Forex Trading Themes for the Week of November 16, 2013

The Yellen Fed

Janet Yellen's confirmation testimony before the Senate Banking Committee last Thursday went very well for her. Her detailed knowledge of the recently-expanded supervisory role of the central bank and monetary policy matters makes her a unique candidate for the job. We assume her nomination will go through the Senate smoothly unless it gets temporarily held up for unrelated political reasons. The markets came away from the hearing with the impression that the earliest possibility for a Fed "tapering" has now been pushed off until March. The other interesting development Thursday was that Yellen has already been confirmed in the market's mind and Chairman Bernanke has alr

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November 15, 2013

Five Simple Trading Rules

By John Bland

Five Simple Trading Rules for All Traders

1) In the words of Jay Meisler, treat forex trading like a business. Don’t treat it like gambling. If you take the perspective of a gambler then you will be destined to lose. The key to successful retail forex trading is capital preservation.

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November 15, 2013

Why Does Regulation Matter to Me?

I was speaking to someone from a regulatory agency and I asked the question, “How do you enforce regulations if someone opens a forex trading account with a non-regulated firm?” His answer was why would someone open an account with a unregulated firm in the first place and if so, that person would essentially get what he/she deserved.

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November 10, 2013

Forex Trading Themes for the Week of November 10, 2013

The European Central Bank (ECB) blindsided the markets on Thursday with an unexpected 25bp cut in its refi rate to 0.25%. We had been expecting some sort of ease by the ECB after a run of weak Eurozone and German economic data. The previous week had seen soft German September retail sales data. They came on the heels of weaker than expected employment data, and a softer than expected IFO survey. The broader Eurozone saw rising unemployment and falling (0,70% y/y) flash October HICP inflation. It was the developing deflation in the Eurozone that forced the hand of the ECB to make the token cut in the Refi rate. Its greatest significance was symbolic as it sent a clear message to the markets that the Eurozone economy is in trouble. This is a bear

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November 08, 2013

Why I Hate Hedging

You may ask why I entitled this article Why I Hate Hedging. It refers to retail forex hedging, a term manufactured by forex brokers to create more volume. Some retail forex traders may argue otherwise but I see it benefiting the broker and not the trader. All it does is create two offsetting positions in the same currency (i.e. one long, one short in like amounts), which is the same as being flat but giving the appearance of having two independent positions on.

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October 25, 2013

UPDATED Commitment of Traders Report Schedule

The CFTC will begin issuing its weekly Commitments of Traders (COT) reports on a rolling basis as soon as they are ready – with the first report being published on October 25, 2013. If not for the shutdown, this report would have been published on October 4, 2013.


The CFTC expects to release two more of the delayed COT reports during the week of October 28, 2013 and at least two more of the delayed COT reports during the week of November 4, 2013. The CFTC expects that it will resume its previously announced COT report schedule by the November 8, 2013 release date.

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September 19, 2013

How to Choose a Forex Broker

When you look at a website all brokers seem to look alike. It is easy to create a professional looking website and make an enticing case for opening an account. However, when you look further, there may be major differences and how a broker actually performs may not become evident until you trade a live account. For what a trader may be entitled to, see Traders Bill of Rights.

So the question is how should you go about selecting a broker that meets your needs?

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