LONDON, June 18, 2012 /PRNewswire/ --
On Friday, June 15, the pound fell against the US dollar following the Bank of England's announcement of an emergency liquidity package the day before. But how will you profit from this fall?
In the guide below, we show you how you can profit from the depreciating sterling through a spot forex trading account from City Index.
BoE Announces Emergency Liquidity Package
On Thursday evening last week (14 June), Governor Mervyn King suggested more quantative easing (QE) could be on its way as the Bank of England announced an emergency liquidity package to support the British banking system.
In his keynote speech, King said that the BoE would also be providing cheap long-term funding to encourage lending to businesses and consumers.
Pound Depreciates against Dollar
Whilst many investors in the marketplace said the measures planned by King would support the UK economy; further suggestions of monetary easing prompted investors to sell-off sterling in early London trade on Friday (15 June).
How to Trade Forex
With a City Index forex trading account you can take a position on the future price movement of 37 currency pairs within the foreign exchange market.
As a global currency market - trading 24-hours a day from Sunday evening to Friday night - forex offers traders multiple opportunities to potentially profit from fast-moving major, minor and exotic currency pairs.
Unlike in traditional equity markets, trading forex with City Index allows you to profit from market movements - regardless of whether they are rising or falling.
With this in mind, using the example above whereby the pound depreciates against the US dollar - traders have the potential to 'go short' and sell the pound with the aim of potentially profiting from every pip that it depreciates further.
In addition, as a leveraged product - forex trading requires only a small percentage of the underlying market's total value as an initial deposit.
This enables traders to control a relatively large exposure for only a small amount, gain greater access to the global currency markets and possibly magnify gains.
It is important to remember, however, that as a leverage product, you also run the risk of losing more than your initial deposit. A forex risk management strategy should be used in order to limit potential losses.
Start Trading Forex
To start trading forex across a range of trading platforms - including mobile - you can apply for a forex trading account with City Index through their website: http:http://www.cityindex.co.uk
Read More Forex Trading Tips
If you found this article helpful, you may want to read more just like this. You can access a range of free forex trading tips, guides and articles through the City Index website also.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.
Apple, the Apple logo, iPod, iPod touch, and iTunes are trademarks of Apple Inc., registered in the U.S. and other countries. iPhone is a trademark of Apple Inc. App Store is a service mark of Apple Inc.
Man Group finance director Kevin Hayes steps down - BBC News
Kevin Hayes has stepped down as finance director of struggling hedge fund firm Man Group on the day the company is demoted from the FTSE 100.
Jonathan Sorrell, Man's head of strategy and corporate finance, will replace him at Europe's largest listed hedge fund.
Man, whose shares have slumped, is being replaced in the FTSE 100 list of the UK's leading companies by Babcock.
Mr Hayes is leaving to pursue "other interests", Man said in a statement.
He joined Man in 2007.
Man Group shares have tumbled since the last FTSE review in March, and are down almost two-thirds since last year.
The firm's funds have struggled as cautious clients withdraw money because of the market turmoil caused by the eurozone debt crisis.
Mr Sorrell, son of WPP advertising chief Sir Martin Sorrell, spent more than a decade at Goldman Sachs before joining Man last August.
In a statement, Man chief executive Peter Clarke said Mr Sorrell's experience "will be extremely valuable as we continue to develop and evolve in challenging world markets".
Forex: EUR/USD still falling, Greek government - FXStreet.com
FOREX-Euro retreats from 1-month high vs dollar - Reuters
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Forex Flash: Surprising RBI unchanged rate, INR sell off – TD Securities - NASDAQ
FXstreet.com (Barcelona) - Against expectations of a 25bp or even 50bp rate cut, the RBI decided to keep its rates unchanged at 8% (repo rate), 7% (reverse repo) and Cash Reserve Ratio at 4.75%.
A counterintuitive move took place: the INR sold off against the USD in a kneejerk reaction. "The INR reaction is even more surprising in the aftermath of the Greek vote that has triggered a rally in the EMFX space. Even though this may be only a temporary reaction, the rupee remains excluded from the uplift that news from Athens have induced on most risk assets", wrote Cristian Maggio, analyst at TD Securities, pointing to concerns about growth in India after IP and GDP figures, and chances of rating downgrade. "There's a material risk that rating agencies downgrade India to junk on the inability of the government to rein in public spending and delivering reforms that would set the ground for sustainable long-term growth", added Maggio.
No comments:
Post a Comment