Profit/loss Calculation With Sigma Forex

what is a Pip (or point)?

The
term used in the currency market to represent the smallest incrementalmove an exchange rate can make. Depending on context, normally onebasis point (0.0001 in the case of EUR/USD, GBP/USD, USD/CHF and 0.01 in the case of USD/JPY).

How do I Calculate Profit/Loss?

The equation for EUR/USD, GBP/USD, and AUD/USD is as follows:P/L = (Opening Rate - Closing Rate) x Lot Size x Number of Lots

The equation for USD/JPY, USD/CHF and USD/CAD is as follows:P/L = (Opening Rate - Closing Rate) / closing Rate x Lot Size x Number of Lots

For a standard account, 1 pip results in a $10 profit/loss in EUR/USD and GBP/USD, approximately $9 in USD/JPY, and $8 in USD/CHF.

For a mini account, 1 pip result in a $1 profit/loss in EUR/USD and GBP/USD, approximately $0.9 in USD/JPY, $0.8 in USD/CHF.

Example

The current bid/ask price for USD/CHF is 1.5455/1.5458, meaning you can buy $1 US for 1.5458 Swiss Francs or sell $1 US for 1.5455.

Suppose you decide that the US Dollar (USD) is undervalued against the Swiss Franc (CHF). To execute this strategy, you would buy Dollars (simultaneously selling Francs), and then wait for the exchange rate to rise.

So
you make the trade: purchasing US$100,000 and selling 154,550 Francs.(Remember, at 1% margin, your initial margin deposit would be $1,000.)

As you expected, USD/CHF
rises to 1.5568/15571. You can now sell $1 US for 1.5568 Francs or buy$1 US for 1.5571 Francs. Since you bought Dollars and sold Francs inyour previous trade, you must now sell Dollars for Francs to realizeany profit. If you sell US$100,000 at the current USD/CHF rate of 1.5568, you will receive 155,680 CHF.

Since you originally sold (paid) 154,550 CHF, your profit is 1130 CHF. To calculate Dollar-based P&L, simply divide 1130 by the current USD/CHF rate of 1.5568.

Total profit = US $725.85

If you had done the opposite to initiate the trade (sold Dollars and bought Francs) you would have lost the same amount of money.

Lexus Prices Due to Increase

Lexus' prices will increase across its entire range from January 2009.

Lexus RRP Effective January 1 2009

Global economic pressure has forced Lexus to revise pricing across its model range. Soaring raw material costs on the commodity market linked with a weakening exchange rate were the main contributing factors.
Lexus New Zealand Manager Ms Debbie Pattullo said, "Lexus New Zealand has been trying to hold prices for as long as possible but with the New Zealand dollar being down approximately 25 per cent against the Yen when compared to the average rate over the past year, we have been left with no choice but to increase our prices."

She said the adjustments would be effective from January 1 2009.

Citigroup, UBS To Buyback $30 Billion Worth Securities From Thousands Of Investors

Washington, D.C. - The Securities and Exchange Commission has finalized settlements with Citigroup Global Markets, Inc. (Citi) and UBS Securities LLC and UBS Financial Services, Inc. (UBS), who misled investors regarding the liquidity risks associated with auction-rate securities (ARS) that they underwrote, marketed and sold.The Securities and Exchange Commission (SEC) said two companies will provide nearly $30 billion to tens of thousands of customers who invested in auction rate securities before the market for those securities froze in February.The settlements, which are subject to court approval, will restore... Click Here For More Details.

Make Money From Trading Currency

Many people are now looking at foreign exchange market as a favorable way to make money by trading currency. Recently a trading contest was held for members with live accounts in foreign exchange. The results showed that the first three winners of the contest had twice increased their investments in a month’s times. Some other contestants had also had very good returns. But this is not the case for every one. In fact only 30% of people trading in Forex actually make profits. The rest 70% lose a lot of money doing trading. If you are trading in Forex, there are 50% chances of either losing or profiting. This is because for every exchange of currency, one person lose and the other profits.
A simpleton might assume that those making profits have inside knowledge of where to make the best profits or they somehow manage to manipulate the market to suit their needs. But this is far from truth. Like mentioned earlier, the foreign exchange, market is the biggest trading market in the world. Hence, unlike the futures or the equities market, it is not an easy task to manipulate it. Governments of countries like the USA, the UK and Japan have tried to get the market in their favor, but they haven’t met with any success. It is difficult to get the market to suit your needs because all the traders have access to the all the market information at the same time.
So how do the 30% of traders manage to make profit when the majority seems to be losing? The simple answer is that these traders have good money management skills. They are well aware of the ups and down of the market. Their trading strategies, though a secret, are the best in the industry. Along with that they also know that the currency market is about making and losing money. Since they have recognized the risks of the trade, they are better able to cope with their losses, in case.

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WORLD OF STOCK

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WELCOME TO COMMTEX INDUSTRY EXCHANGE

Welcome! Commtex Industry Exchange is one of the world's finest, distributor-to-distributor, distributor-to-dealer, dealer-to-consumer and consumer-to-consumer online global market community.
Commtex Industry Exchange is the place to publish a product, service, project or business opportunity required and advertize your buying and selling rate. Commtex Industry Exchange shall then account the interest of visitors and let you communicate with the right customers. In Commtex IndustryExchange, you can buy or sell any product, service or project of any industry to anybody, globally.
Commtex Industry Exchange is owned and operated by Commtex Solutions Pvt.Ltd., India. Commtex Solutions have already released Commtex Finance Exchange a DOT COM Suite built for servicing business firms to acquire Venture Capital, Private Equity and Cash needs for solving cash crunch problems.

Treasury and Capital Markets

Mashreq is a premier provider of value added Treasury services. Operating 24 hours a day, 365 days of the year, our experienced dealers working from our Central Dealing room in Dubai,provide continuous coverage of global markets to our clients. The traditional areas of foreign exchange, interest rate products, global futures and domestic and international equities are supplemented by more customized multi-currency hedging, yield enhancing strategies and specialized investment management services. Using state-of-the-art communications links we give our clients fast, efficient service.

Background of China’s Financial System Chinese currency: Renminbi (RMB), Yuan

Exchange rate as of Oct. 5, 2008 1 US dollar = 6.8575 yuan (down from 1 US　dollar = 8.7 yuan in 1994)
The central bank: The People’s Bank of China
The regulatory authorities:
China Banking Regulatory Commission (CBRC), China Securities Regulatory Commission (CSRC), China Insurance Regulatory Commission (CIRC)
Stock market:
Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong Exchange
Foreign Investment:
China’s banking system is highly regulated and relatively underdeveloped. Four big state-owned banks include Bank of China, China Construction Bank, Agricultural Bank of China and Industrial and Commercial Bank of China. China has been opening up its financial market from the end of 2006 to fullfill its commitment to the WTO. Foreign financial institutions have been permitted to provide foreign currency services to Chinese enterprises and individuals, and have been permitted to provide local currency business to all Chinese clients since then. However, according to the Catalogue for the Guidance of Foreign Investment Industries, banking and insurance industries are still in the restricted category, meaning high qualification, capital requirement and conditioned company structures to participate in the market.
Due to tight foreign exchange controls, Chinese domestic investors are not allowed to invest in the overseas capital market directly. Instead, Qualified Domestic Institutional Investor (QDII) has been introduced to allow investors to invest in foreign securities markets via certain fund management institutions, insurance companies, securities companies and other assets management institutions which have been approved by CSRC. Qualified Foreign Institutional Investor (QFII) is the opposite investment scheme to allow foreign investors to invest in China’s captial market.
Fundamentals that are posing challenges to the economy and the financial system year to date:
Exports under pressure due to the global slowdown, appreciation of RMB, and increasing commodity and labor costs
Domestic investment by corporate slowing down
Real estate developers facing weak property sales, falling housing prices and tightened financing conditions
If you have any questions regarding the above, please feel free to contact me at fangf@u.washington.edu!

EXCHANGE RATE PAIRS

It seems pretty clear that most of the euro activity is still taking place on the European stage. That could change -- there is an interesting discussion about the expanding importance of the export sector being conducted at Eurointelligence and at Eurozone Watch -- but my guess is that the "tipping point" for the euro depends critically on whether the eurozone ultimately expands.
As I have noted in the past, the research of Menzie Chinn and Jeffrey Frankel suggests that the wildcard involves the UK's designs on the euro. But the incorporation of the so-called "accession countries" is at issue as well. For that reason, this, from the Financial Times, got my attention:
On Monday Standard & Poor’s lowered the outlook for Latvia’s long-term sovereign debt from stable to negative. The country has a huge current account deficit, accelerating inflation and loose monetary policy, just like Thailand in 1997. And, as in Asia a decade ago, the symptoms are not limited to one country. As growth has accelerated in the European Union’s 10 newest central and eastern members, it has become unbalanced, propelled by consumers rather than exports. The results are predictable – worsening trade imbalances, mounting inflation and wage pressures. Only Poland and the Czech Republic currently meet the inflation requirement for euro membership, while current account deficits in six of the EU-10 hover near or beyond 10 per cent of gross domestic product. Meanwhile, credit is expanding dramatically – at more than 50 per cent year-on-year in Latvia, Lithuania and Romania, according to Danske Bank.
The difficulties of integrating new-Europe and old-Europe are also on the radar at The Economist (via Edward Lucas and Claus Vistesen):
If the EU were to fracture, the natural fault-line would be the edge of the euro zone, as Toomas Hendrik Ilves, Estonia ’s thoughtful president, has observed...
The common currency includes most of old Europe, but excludes most of the new democracies (including his). What would happen to the outsiders? It would be nice to think, as a worst-case scenario, that the single market would hang together, and that the baker's dozen of countries outside the euro zone would at least remain part of this thriving free-trade area...
Probably, however, the unraveling would go further. The EU already finds it a huge effort to make the Poles, for example, abide by European competition law. Without a seat at the top table in Brussels, no Polish government would allow foreigners to claim full national treatment, especially when it came to buying the country’s big companies. With that, the single market would unravel too.
That all may be a bit alarmist -- the worst-case scenario is important to think about, but it rarely happens. The point is that, despite the challenges that undeniably confront policy makers in the United States, there are equal, if not more daunting, challenges elsewhere. I have my doubts that the "exorbitant privilege" of being the world's dominant currency is likely to pass from the dollar any time soon.
UPDATE: Export activity in Germany (and Japan) is also on the mind of Edward Hugh, at Bonobo Land.
UPDATE II: Claus Vistesen uncovers an article from the Financial Times suggesting that central bankers are chasing yield by by taking on more risk, as well as by diversifying the currencies in their reserve portfolios. My sense is that this sort of motivation drives "investment" decisions at the margin, but that core portfolio choices are still driven by "fundamentals" related to trade flows, financial market activity, and internal exchange rate policies. But as the FT article notes, central bankers are "a secretive bunch," so there is a lot we -- or at least I -- don't know.

US$ exceeds VND 18,000/US $1.00 threshold

VietNamNet Bridge – As forecasted before, the VND/US$ exchange rate on the black market exceeded the VND 18,000/US $1.00 threshold on the weekend of April 12.
By late afternoon of April 12, the $ transactions had been staying firm at VND 18,000/US $1.00 (purchase) and VND 18,030/US $1.00 (sale). As such, after two days the dollar price increased sharply by VND 70/US $1.00 (both sale and purchase prices).


In general, the VND/US $1.00 exchange rate increased by VND 170/US $1.00, or 17 times higher than the increase of the previous week. Despite the sharp dollar price increases, the transactions on the black market remained modest in terms of quantity.


This has been attributed to the fact that people expect the dollar price to increase further in the time to come, which prompts them not to make transactions at this moment. Meanwhile, no one wants to sell dollars now as they want to keep dollars in anticipation of the exchange rate fluctuations.


Meanwhile, the VND/US$ exchange rate on the interbank market has been lowered continuously. The exchange rates announced by the State Bank of for April 11 were VND 16,938/US $1.00, down by VND 2/US $1.00 over the transaction day in early previous week. The State Bank of reported that the VND/US$ sale exchange rates quoted by commercial banks last week hovered around VND 17,785-17,790/US$1, while the purchase rate was between VND 17,720-17,770/US $1.00.


As such, the exchange rate performance in the official market proves to be quite contradictory to the one in the black market: while it keeps going down in the former, it has been going up in the latter.


In the world’s market, the greenback has been devaluating against other hard foreign currencies, especially the euro. According to the State Bank of in March alone, the greenback lost 7.8% of its value against the euro.


However, the greenback price increase in the black market proves to come contrary to the interest rate tendency.


Quick reports by commercial banks showed that the VND interest rates on the interbank market tend to increase in all terms, except the unchanged three-month term loans. The highest interest rate increase was 2.5% per annum for 12 month term loans.


Meanwhile, the $ interest rates tend to decrease in all terms of loans. The highest interest rate now is 2.13% per annum for 3 month term loans, while the rates of other terms are hovering around 0.4%-1.2%.


In theory, as the gold and stock markets are warming up, people will sell dollars to make investments in stocks, thus leading to less attractiveness of the dollar and the devaluation of the currency.


However, the dollar price keeps increasing in the black market, which has been explained by the fact that businessmen are collecting dollars to import gold, once the domestic price is still higher by VND 60,000/tael than the world’s price.


Meanwhile, Bui Kien Thanh, Senior Advisor to KHM Inc, General Director of IAMC, said that the dollar price increase in the last time was the result of the pressure on devaluating the VND which appeared last year.


The expert said that the action by the State Bank of to lower the interbank exchange rate cannot reassure the market. Businesses nowadays also do not want US dollar loans for fear of the exchange rate fluctuations.

CURRENCY EXCHANGE

We at Express Gold Ltd. Global Foreign Exchange outlet provide the latest currency exchange rates between your choice of currencies.Convert major foreign currencies to and from Canadian and USA dollars. Rates updated each business day.Sometimes it's difficult, as well as costly to convert your currency abroad. Express Gold Ltd. Foreign Exchange makes it easy and convenient to convert dollars into whatever you need, or even exchange what you have when you get back. You can arrange a currency exchange at the best competitive rates and make overseas transfers in a matter of minutes with our outlet. You will be able to take advantage of excellent exchange rates, made possible because we work on very narrow margins!Unlike dealing with your bank, you will be able to speak directly with our dealers, giving you access to the latest rates. We shall advise our clients with our best knowledge and experience.

Polar Ice

One of the results of global warming is melting of the polar ice cap. The north pole is expected to be ice-free during summer as early as 2030 — even earlier by some accounts. In part this is due to the phenomenon of “polar amplification.” Global warming has hit the arctic harder than the rest of the globe; the rate of warming there is more than double the global rate. As a result, the polar ice cap is melting — rapidly. In fact, arctic sea ice extent is at an all-time low. Here’s the latest graph (you can view this, and others, at cryosphere today).

The graph shows this pattern of accelerating growth:

Graph shows global population growth - very slow from 500 BCE to 1500 CE, and thereafter increasing more and more rapidly. The predicted global population for 2025 is 8525 million

Future Cantracts

A standardized, transferable, exchange-traded contract that requires delivery of a commodity, bond, currency, or stock index, at a specified price, on a specified future date. Unlike options, futures convey an obligation to buy. The risk to the holder is unlimited, and because the payoff pattern is symmetrical, the risk to the seller is unlimited as well. Dollars lost and gained by each party on a futures contract are equal and opposite. In other words, futures trading is a zero-sum game. Futures contracts are forward contracts, meaning they represent pledge to make a certain transaction at a future date. The exchange of assets occurs on the date specified in the contract. Futures are distinguished from generic forward contracts in that they contain standardized terms, trade on a formal exchange, are regulated by overseeing agencies, and are guaranteed by clearinghouses. Also, in order to insure that payment will occur, futures have a margin requirement that must be settled daily. Finally, by making an offsetting trade, taking delivery of goods, or arranging for an exchange of goods, futures contracts can be closed. Hedgers often trade futures for the purpose of keeping price risk in check. also called futures.

Citigroup and the Government to Put Limit in Losses in the Forex Market

The rumors have been going on: Citigroup, one of the largest financial services companies in the world, is currently thinking of cutting back jobs, which means that there will be thousands of employees all over the world who will be losing their jobs before Christmas.It is definitely such a huge threat, and for that, the government is thinking of helping the company to make sure that they can limit their losses in the forex market. Because the currency rates are falling, they have already garnered toxic assets. So far, the company has already garnered over $100 billion of it, after their shares have already lowered down and they eventually lost. This, in turn, definitely hurt the company, thereby forcing them to think of reducing the costs extensively.As of the moment, the Treasury Department and the Federal Reserve are already in the talks with the Citigroup. There are also several U.S. regulators that have joined in the discussion. They have been in meeting during the entire weekend, and the results may be released this week, probably on Monday. Nevertheless, other pertinent details such as those who are really involved in the talks and issues that may have been reached are not known since they are left confidential. But to get an overview, the plan is to actually make sure that the assets of Citigroup will remain in the company and that the government will assume the losses, but only a portion of it.

Citigroup and the Government to Put Limit in Losses in the Forex Market

The rumors have been going on: Citigroup, one of the largest financial services companies in the world, is currently thinking of cutting back jobs, which means that there will be thousands of employees all over the world who will be losing their jobs before Christmas.It is definitely such a huge threat, and for that, the government is thinking of helping the company to make sure that they can limit their losses in the forex market. Because the currency rates are falling, they have already garnered toxic assets. So far, the company has already garnered over $100 billion of it, after their shares have already lowered down and they eventually lost. This, in turn, definitely hurt the company, thereby forcing them to think of reducing the costs extensively.As of the moment, the Treasury Department and the Federal Reserve are already in the talks with the Citigroup. There are also several U.S. regulators that have joined in the discussion. They have been in meeting during the entire weekend, and the results may be released this week, probably on Monday. Nevertheless, other pertinent details such as those who are really involved in the talks and issues that may have been reached are not known since they are left confidential. But to get an overview, the plan is to actually make sure that the assets of Citigroup will remain in the company and that the government will assume the losses, but only a portion of it.

Forex Market News: U.S. Dollar Showing A Little Strength

United States currency boosted a little bit next to other big currencies in Syndey during morning trade today after its overnight drop. Not to mention, this rise occurred despite the Dow dropping almost two percent due to some uneasy issues regarding financial markets & credit.However, the dollar is still weak next to the euro, yen and sterling while the Industrial Average for the Dow Jones decreased by 237.44 points. Unfortunately, this is a result of some not-so-good news coming from Citigroup and HSBC Holdings. Citigroup Inc. is apparently looking at some major losses in regards to credit in the fourth quarter of this fiscal year and as a result there might be a handful of lay-off's that could follow.If you wish to look at things in a more positive light, then keep in mind that early this morning one greenback was buying 107.43 yen, in contrast to last night's New York trade value of 107.32 yen."A drop in U.S. equity markets late in the afternoon prompted a mass liquidation of yen carry trades, knocking all primary crosses lower, and taking US dollar/yen down to fresh session lows into the close," mentioned Peter Whitley. Whitley is an analyst at Thomson International Financial Review.Plenty of tourists are coming across the Atlantic and spending their much-valued Euros around New York City and other surrounding metropolitan areas. This can be great for business-owners and retailers in the United States, but what kind of effect do you think this will have on the forex market in the long run?

Forex Market News: U.S. Dollar Showing A Little Strength

United States currency boosted a little bit next to other big currencies in Syndey during morning trade today after its overnight drop. Not to mention, this rise occurred despite the Dow dropping almost two percent due to some uneasy issues regarding financial markets & credit.However, the dollar is still weak next to the euro, yen and sterling while the Industrial Average for the Dow Jones decreased by 237.44 points. Unfortunately, this is a result of some not-so-good news coming from Citigroup and HSBC Holdings. Citigroup Inc. is apparently looking at some major losses in regards to credit in the fourth quarter of this fiscal year and as a result there might be a handful of lay-off's that could follow.If you wish to look at things in a more positive light, then keep in mind that early this morning one greenback was buying 107.43 yen, in contrast to last night's New York trade value of 107.32 yen."A drop in U.S. equity markets late in the afternoon prompted a mass liquidation of yen carry trades, knocking all primary crosses lower, and taking US dollar/yen down to fresh session lows into the close," mentioned Peter Whitley. Whitley is an analyst at Thomson International Financial Review.Plenty of tourists are coming across the Atlantic and spending their much-valued Euros around New York City and other surrounding metropolitan areas. This can be great for business-owners and retailers in the United States, but what kind of effect do you think this will have on the forex market in the long run?

What Is The Forex Investment Association?

There is an important regulatory group that you may want to know about if you are going to start playing the forex market.The Forex Investment Association is an organization specifically for those who invest in and play the forex market. It is a not-for-profit group and it is self-regulating. It is also recognized as a representative body with carefully considered privileges from the FSB, or the Financial Services Board. The Forex Investment Association works with the Financial Services Board in order to properly register and provide licenses to service providers who have a position in the forex industry.Their basic goal is to provide an environment where traders can enter the market safely and invest their money without risk. They also strive to have advisors who are knowledgeable in their field as well as experienced traders who can help maintain a stable market.The FIA welcomes new members and invites people to register with them but unfortunately their website is not capable of doing so yet. Visit www.forex.org.za to read more about the FIA, and check the site periodically until they have updated their registration pages.