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1.
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What factors influence exchange rate behavior? Can these factors be monitored?
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Financial theory encompasses a variety of concepts that explain the basis and underlying reasons for changes to foreign exchange rates. From the standpoint of global currency trade, however, it is important that the investor understands “exchange rate” notions within the context of the market. Each currency is a product that certain market players want to buy or sell. In this sense, interest in a particular currency (and the price) will rise when the factors that influence this currency look favorable and will fall when investment prospects look unfavorable. Consequently the factors influencing foreign exchange levels are events which create the impression that a certain currency is more attractive than others. These events can be of a macroeconomic, political, geopolitical or even psychological nature. “Deltastock” Inc. has a team of well-trained experts who are responsible for rapidly delivering this kind of information. If you sign a contract with us, “Deltastock” Inc. will offer real-time streaming news via its platforms. News comes in immediately after it is announced. Part of the information is delivered regularly (macroeconomic indicators, central bank decisions on interest rate levels, planned official statements, etc.) and we inform clients about these in advance. Information is also summarized in tables and training windows.
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2.
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Is it possible to make a realistic "forecast" of the foreign exchange market? Where can I get information if I'm not an economist and am not familiar with financial theories?
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The investment community uses various market analysis and forecast methods, generally acknowledged as technical and fundamental analysis. Fundamental analysis uses economic and financial-accounting theories to explain and forecast foreign exchange rate fluctuations. Technical analysis is based on the notion that each available piece of information has already affected the current market levels. It therefore visualizes its principles in a graphic presentation of already realized changes. IB “Deltastock” Inc. offers a trading platform that provides the tools for both technical and fundamental analysis. The exhaustive information service facilitates the application of fundamental methods, while the graphic format delivers a rich set of technical tools. Even if you are not an economist and are not prepared to come to grips with analytical concepts in depth, you can refer to the forecasts that “Deltastock” Inc. specialists post daily on its website. Of course, currency trading is a risky enterprise. That's why IB “Deltastock” Inc. advises you to note the following: The opinions published herein are for information purposes only and do not constitute an offer for purchase or sale of currency. IB “Deltastock” Inc. is NOT RESPONSIBLE for any losses incurred as a result of the application or adherence to opinions posted herein.
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3.
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Can I refer to you as a consultant?
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IB “Deltastock” Inc. does not provide advice on opening or closing of positions. It does not offer individual consultations on forthcoming foreign exchange fluctuations. Nevertheless, the IB “Deltastock” Inc. team will respond to requests for information or general queries with attention and care. Please do not hesitate to contact us.
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4.
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What do "resistance" and "support" mean? Where can I learn more about this?
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Resistance and support are technical levels that when reached give substantial certainty that your instrument (currency) will reverse its movement.
Information on resistance and support of the primary currency pairs is posted and updated daily on the IB “Deltastock” Inc. website (in the “News & Analysis” section – Analysis – Daily Technical Analysis).
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5.
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What are "commodity currencies"?
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These are currencies of countries whose economies are largely dependent on domestic raw materials and precious metals. Examples are the Australian dollar, the South African Rand and the Canadian dollar.
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6.
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What are "shelter currencies"?
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Investors prefer these currencies during periods of political turmoil, war and acts of terrorism. An example of this kind of currency is the Swiss franc due to Switzerland’s traditional neutrality during conflicts.
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7.
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Who are the "bulls" and the "bears"?
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“Bulls” are those market players who anticipate an upward adjustment to the rate of a particular currency or the price of a particular financial instrument. Players who anticipate downward adjustment are called “bears.”
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8.
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What is hedging?
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Hedging is a strategy oriented towards offsetting or completely eliminating risk resulting from market volatility.
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9.
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What is the difference between figures and pips?
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Traders use these expressions to talk about the price level of an asset. If a currency pair is quoted at 1.3400 – 1.3420, this means you buy it at the first price and sell it at the latter. In light of the fact that all market players are familiar with the current price and that it changes too fast, only the last two figures are quoted. For example: 00-20. These are called pips. Pips are the last figure after the decimal point in a quote, e.g. 0.0001 for the main currency pairs such as EUR/USD, GBP/USD, USD/CHF, etc. and 0.01 in currency pairs where one of the currencies is the Japanese yen. Should the price go up to 1.3500 – 1.3600 it is said it have gone up by one figure. This is the second figure after the decimal point. One figure equals 100 pips.
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10.
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What are foreign exchange rates?
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Some markets hold daily meetings where tradable currency pairs are assigned official ask/bid prices. These prices are in line with current market conditions and the central bank often is the main influence on currency fixings.
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