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Monday, November 23, 2015

Importance of Gold In the Modern Economy

Investors now have several different options when it comes to investing in the royal metal. In order to fully understand the purpose of gold, one must look back at the start of the gold market. While gold's history began in 3000 B.C, when the ancient Egyptians started forming jewelry, it wasn't until 560 B.C. that gold started to act as a currency.

At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. Because gold jewelry was already widely accepted and recognized throughout various corners of the earth. From gold exchange-traded funds  to gold stocks to buying physical gold, investors now have several different options when it comes to investing in the royal metal.

Investors typically buy large quantities of gold when their country is experiencing high levels of inflation. The demand for gold increases during inflationary times due to its inherent value and limited supply. As it cannot be diluted, gold is able to retain value much better than other forms of currency. From gold exchange-traded funds  to gold stocks to buying physical gold, investors now have several different options when it comes to investing in the royal metal.

Orient Financial Brokers (OFB) was established in January, 1994 in Dubai, the financial and commercial hub of the Middle East. OFB is licensed and regulated by Central Bank of the UAE, to conduct brokerage in Foreign Exchange, Commodities and Money Markets.

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Thursday, October 8, 2015

The Currency - Commodity Price Relationship Forex Traders Should Know

Benefiting from forex currency trading involving predicting the market movements and positioning oneself to profit from that movement. A trader should be aware of the basic currency market indicators and factors that contribute to both short-term and long-term market movements. One such thing trader should know is the relationship between some currencies to changing commodity prices.

The Oil and Canadian Dollar Relationship: Over the past decade CAD and crude oil price have shown a positive correlation exceeding 80%. Canada is the 7th largest producer of crude oil, has the second biggest oil serve in the world and is the most significant oil supplier to the United States. These factors contribute to greater co-relation between oil price and CAD. USD also shows high positive correlation to crude oil prices as USD is the currency used to determine crude oil price.

Oil and Japanese Yen Relationship: Crude oil price changes and JPY shows a negative correlation because Japan imports almost all crude oil it needs. Thus theoretically CAD/JPY is one of the most sensitive currency pair with respect to crude oil prices.

The Gold and Australian Dollar Relationship: Like oil CAD relationship, gold price and AUD shows a high positive correlation because Australia is the 3rd largest producer of gold. A similar correlation can be seen with gold and NZD, this is because the close relationship between NZD and AUD because of the geographical proximity which makes Australia the prominent destination for New Zealand exporters. Know more about Gold and Currency Relationships.

This blog is written for Oriental Financial Brokers, Dubai, UAE. OFB is the leading forex currency trading broker offering advanced web-based trading platform and a range of account features.

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Friday, September 18, 2015

Forex Trading Strategies

Successful professional traders do many things that amateurs often forget. They plan a trading strategy, they follow the markets, and they diarize, track, and analyze each of their trades. Reasoning of the trade: Why buy or sell? Which pair? Documentation and analysis of the results. Timing of the trade: Why now? Before economic news releases or after? Day or night? Money management. Trading objective: What is the take profit target? What is the stop loss?

The forex market is the largest and most liquid of the financial markets. Daily activity often exceeds $4 trillion USD a day, with over $1.5 trillion of that conducted in the form of spot trading. It is the existence of volatility within the forex market that enables trader's to take advantage of exchange rate fluctuations for speculative purposes.

 Forex spot trades consist of a contract to trade a given amount of a currency pair with a market-maker, at the advertised buy / sell price . Traders must be aware that greater volatility also means greater risk potential. It is important to understand the correlation between liquidity and market activity. the most successful Forex traders are people recognized for their humility and discipline. These qualities are acquired trough experience and accepting some simple realities of the Forex market.

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Friday, August 21, 2015

Forex Trading Market

If you are a beginner in the Forex market, there are a lot of things for you to understand first. One important part is learning the lingo. Among a number of terms used in currency trading, a few are self-explanatory, while others are quite difficult to understand. Here, you can find brief definitions of some of the most common terms used in the Forex trading market.Most of these privileges are only available in the world forex market. Some of the most important advantages are given below.

Customizable leverage options allow traders to trade both aggressive and conservative based on their trading strategy, market performance and trading goal.

There is no difference in going short or long. Every trade is shorting a currency and going long on another. Hence no uptick or similar rules are applicable.

The market stays very liquid round the clock. And there is a great information flow; traders can enjoy real-time news, charts, research and analysis usually for free.

There are no trading commissions hence the loss or gain of every trade can be accounted as traders profit or loss. Also when trading high interest rate difference currencies, traders can receive interest on daily basis.

Automated margin calls lock the loss to the money you put in.

Traders can adopt any style they prefer; can practice any strategy on minute, hourly or weekly charts.

This blog post is written for Orient Finance Broker, offering online forex trading services to middle-east traders. OFB offer a range of advantages for online traders.

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Thursday, July 23, 2015

Gold Price and Gold Trading in UAE

Gold is one of the most widely discussed metals due to its prominent role in both the investment and consumer world. Gold was also used as the world reserve currency up through most of the 20th century. Even though gold is no longer used as a primary form of currency in developed nations, it continues to have a strong impact on the value of those currencies. Moreover, there is a strong correlation between its value and the strength of currencies trading on foreign exchanges.

The gold market is subject to speculation and volatility as are other markets. Internationally gold price is noted in USD and gold tend to show a inverse relationship to USD. So when the dollar gets strong, the gold price decreases and when the dollar gets weaker, then the gold price increases.

 Although many new large scale gold mines became operational in recent years, the gold production is getting stagnant or low because of fast exploring of easy reserves. Now most of the gold are mined from very deep mines and the production cost is very high. Gold Production is relationship  upon the rate of gold.

Countries like India, China and US are main consumers of gold, mostly as jewelry. The festival seasons, economic growth and investment preferences of these countries greatly affect gold price. Gold is the most popular as an investment.  Investors generally buy gold as a way of diversifying risk, especially through the use of futures contracts and derivatives.

This blog is written for Orient Financial Brokers, an online gold trading broker offering online precious metals trading for traders across middle-east.
Labels: gold, gold broker, gold investing, gold investment, gold price, gold rate, gold trader, gold trading dubai, gold trading uae
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