Open a live account if you feel ready to trade in the real market
OR
Open a demo account on one or both of our trading platforms and choose which suits you best
1. Define how long you can trade for.
2. Define the currency pair you feel most comfortable with.
3. Choose the tradable amount.
4. Before opening a position, you have to consider how much profit you wish to make or how much loss you are eventually prepared to take. Depending on this analysis, place stop and/or limit orders.
5. Open your position or place an entry order.
6. Follow significant news events and technical indicators which you can consult inside your trading station or from third party sources (find out more about different types of analysis on the following pages:
* Technical vs fundamental analysis.
* Forex technical indicators.
* Forex fundamental analysis.
Sunday, February 15, 2009
Rollover of positions (swap)
For the sake of transparency and unlike any other online broker we actually have a complete explanation of applied cost of carry on behalf of the market or the customer on open positions held overnight. This overnight cost of carry is presented as a simple flat fee either paid or charged on a customer's account. This process makes for extremely simple statements and greatly increased executional transparency since we do not modify the original price of the position entered into by the customer.
Forex trading margins
A margin deposit is not, as many traditional traders suggest, the payment in cash for purchasing market shares. A margin is in fact a guarantee or a trust deposit, providing protection from losses during a deal? It allows traders to open positions on amounts that greatly exceed their account limits and so increase their buying power. ACM offers a 1% margin (or 1:100 leverage), which means you can control 100 times your deposit in the real market.
If the funds in the account, in the course of trading, fall below the prescribed margin, your positions will be closed automatically without prior notice. Using this system, the client’s account cannot go overdrawn even under volatile, fast-changing market conditions.
The formula for calculating margins is as follows: (account balance + profit/loss) : open position = the margin
If the funds in the account, in the course of trading, fall below the prescribed margin, your positions will be closed automatically without prior notice. Using this system, the client’s account cannot go overdrawn even under volatile, fast-changing market conditions.
The formula for calculating margins is as follows: (account balance + profit/loss) : open position = the margin
Forex market working hours
The forex market, based on ‘spot’ transactions, is unique in comparison with all other global markets.
This is because trading takes place 24 hours a day, 5 days a week (ACM platform works from Sunday 22:00 to Friday 23:00 CET). Financial centers are open for work, and banks and other organizations exchange currencies in different parts of the world for different purposes.
Therefore, trading never stops apart from a short break during the weekend.
Early closings are possible depending on calendar arrangement such as, for example, Christmas or new year’s eve.
This is because trading takes place 24 hours a day, 5 days a week (ACM platform works from Sunday 22:00 to Friday 23:00 CET). Financial centers are open for work, and banks and other organizations exchange currencies in different parts of the world for different purposes.
Therefore, trading never stops apart from a short break during the weekend.
Early closings are possible depending on calendar arrangement such as, for example, Christmas or new year’s eve.
Forex currencies quotation system
Currencies are quoted in pairs, for example – EUR/USD or USD/JPY.
The first currency in the pair is called the base currency and the second is called the counter currency.
The base currency is the ‘basis’ for purchases and sales.
For example, if you buy EUR/USD, then you acquire Euros and sell Dollars. You do this if you expect the Euro to grow against the Dollar.
It is also possible for a currency pair to be quoted as USD/EUR, but this method is used extremely rarely.
Each transaction must have 2 sides – a buy and a sell (or a sell and a buy).
By this we mean that it is impossible to buy 100.000 EUR/USD and then exchange it for another currency pair (i.e.: EUR/JPY) without closing the first position.
Also please note that no physical currency delivery will be made. For these purposes banks and exchange companies, which specialize in low-rate currency conversions are available.
The first currency in the pair is called the base currency and the second is called the counter currency.
The base currency is the ‘basis’ for purchases and sales.
For example, if you buy EUR/USD, then you acquire Euros and sell Dollars. You do this if you expect the Euro to grow against the Dollar.
It is also possible for a currency pair to be quoted as USD/EUR, but this method is used extremely rarely.
Each transaction must have 2 sides – a buy and a sell (or a sell and a buy).
By this we mean that it is impossible to buy 100.000 EUR/USD and then exchange it for another currency pair (i.e.: EUR/JPY) without closing the first position.
Also please note that no physical currency delivery will be made. For these purposes banks and exchange companies, which specialize in low-rate currency conversions are available.
How does the foreign exchange market work?
The forex market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates.
Making a transaction on the forex market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.
Making a transaction on the forex market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.
What is Forex (Foreign Exchange, FX) ?
ACM offers online forex trading services for traders wanting to make speculative transactions on the exchange rate between two currencies.
These rates may be influenced by world economic and political events, currency rate differentials, as well as many other factors including extreme weather conditions (hurricanes), acts of terror etc.
Forex is the largest marketplace in the world with more than 3.2 trillion dollars changing hands daily and so making it one of the most attractive and lucrative markets.
These rates may be influenced by world economic and political events, currency rate differentials, as well as many other factors including extreme weather conditions (hurricanes), acts of terror etc.
Forex is the largest marketplace in the world with more than 3.2 trillion dollars changing hands daily and so making it one of the most attractive and lucrative markets.
Forex News and Events:
The dollar weakened throughout the night as continued speculation the U.S Stimulus package wouldn’t be sustainable marred sentiment. The EURUSD traded a 1.2879 – 1.2949 range with a slight bias to the upside. However, we continue to believe any move on the part of the pair is dollar driven. Euro zone GDP figures are expected at 10:00 GMT today (-1.2% vs. -0.2%).
A key event today and tomorrow is the G7 summit in Rome. 7 of the largest economies will discuss monetary policy and interest rates – with a focus on the dollar and the Yen. Some may remember the concerted intervention in 1985 and 1987 on the dollar – however we don’t see this meeting being a major currency mover, except if some sort of landmark agreement spawns from this meeting.
Markets will continue to trade with risk aversion as the main impetus. It is interesting to note that with global interest rates so low the YEN isn’t necessarily that strong against other currencies – however with a local economy so dependant on exports, the relatively strong Yen continues to hurt the economy. The inverse can be said of the Sterling, which has been greatly oversold – on worsening economic data.
News in brief: Australia votes and accepts the previously rejected $27.3m stimulus plan. Europe set to confirm deep recession with GDP numbers today. US initial jobless claims falls short of consensus at -623K (vs. prev. -626K). Improvement in Retail sales shouldn’t be taken as a real sign of recovery – heavy discounts and a strong Christmas season are to blame. News is light today.
A key event today and tomorrow is the G7 summit in Rome. 7 of the largest economies will discuss monetary policy and interest rates – with a focus on the dollar and the Yen. Some may remember the concerted intervention in 1985 and 1987 on the dollar – however we don’t see this meeting being a major currency mover, except if some sort of landmark agreement spawns from this meeting.
Markets will continue to trade with risk aversion as the main impetus. It is interesting to note that with global interest rates so low the YEN isn’t necessarily that strong against other currencies – however with a local economy so dependant on exports, the relatively strong Yen continues to hurt the economy. The inverse can be said of the Sterling, which has been greatly oversold – on worsening economic data.
News in brief: Australia votes and accepts the previously rejected $27.3m stimulus plan. Europe set to confirm deep recession with GDP numbers today. US initial jobless claims falls short of consensus at -623K (vs. prev. -626K). Improvement in Retail sales shouldn’t be taken as a real sign of recovery – heavy discounts and a strong Christmas season are to blame. News is light today.
ACM Geneva
Switzerland has a long tradition of offering the finest banking and financial services in the world. It is among the top 10 financial centers that generate the most foreign exchange trading turnover.
Geneva is the private banking capital of the world and boasts some of the largest banking institutions and a multitude of financial companies and asset managers.
Our offices are located at no. 50 rue du Rhône in the very heart of Geneva's financial center.
Geneva is the private banking capital of the world and boasts some of the largest banking institutions and a multitude of financial companies and asset managers.
Our offices are located at no. 50 rue du Rhône in the very heart of Geneva's financial center.
Friday, February 6, 2009
GCI In the Press
GCI is recognized globally as one of the premier foreign exchange market makers and providers of industry research and analysis. GCI's analysis appears regularly on Multex.com and Reuters, and is subscribed to by major institutions including J.P. Morgan, G.E. Capital, UBS AG, Lazard Asset Management, and Goldman Sachs.
Regulation
GCI Financial Ltd is regulated by the International Financial Services Commission (IFSC) for trading in financial and commodity-based derivatives and other securities, including foreign exchange. The IFSC's strict requirements include capital adequacy, reporting and record keeping, and proper disclosure and conduct with clients.
Recommend by Top Industry Participants
GCI is recommended by top industry participants and has had its market analysis featured in leading publications, including the Financial Times. Click here for a partial list of company websites that recommend GCI Financial Ltd.
GCI's analysis also appears regularly on Multex.com and Reuters, and is subscribed to by major institutions including J.P. Morgan, HSBC Asset Management, and Goldman Sachs.
GCI's analysis also appears regularly on Multex.com and Reuters, and is subscribed to by major institutions including J.P. Morgan, HSBC Asset Management, and Goldman Sachs.
Overview of GCI Financial
GCI Financial Ltd ("GCI") is a regulated securities and commodities trading firm, specializing in online Foreign Exchange ("Forex") brokerage. In addition to Forex, GCI is a primary market maker in Contracts for Difference ("CFDs") on shares, indices and futures, and offers one of the fastest growing online CFD trading services. GCI has over 10,000 clients worldwide, including individual traders, institutions, and money managers. GCI provides an advanced, secure, and comprehensive online trading system. Client funds are insured and held in a separate customer account. In addition, GCI Financial Ltd maintains Net Capital in excess of minimum regulatory requirements.
Saturday, January 31, 2009
Housing Starts
Housing Starts are a measure of the number of residential units on which construction is begun each month and the level of housing starts is widely followed as an indicator of residential construction activity.
The indicator is followed to assess the commitment of builders to new construction activity. High construction activity is usually associated with increased economic activity and confidence, and is therefore considered a harbinger of higher short-term interest rates that can be supportive of the involved currency at least in the short term.
The indicator is followed to assess the commitment of builders to new construction activity. High construction activity is usually associated with increased economic activity and confidence, and is therefore considered a harbinger of higher short-term interest rates that can be supportive of the involved currency at least in the short term.
Retail Sales
Retail Sales are a measure of the total receipts of retail stores. Monthly percentage changes reflect the rate of change of such sales and are widely followed as an indicator of consumer spending.
Retails Sales are a major indicator of consumer spending because they account for nearly one-half of total consumer spending and approximately one-third of aggregate economic activity.
Often, Retail Sales are followed less auto sales because these are generally much more volatile than the rest of the Retail Sales and can therefore obscure the more important underlying trend.
Retail Sales are measured in nominal terms and therefore include the effects of inflation. Rising Retail Sales are often associated with a strong economy and therefore an expectation of higher short-term interest rates that are often supportive to a currency at least in the short term.
Retails Sales are a major indicator of consumer spending because they account for nearly one-half of total consumer spending and approximately one-third of aggregate economic activity.
Often, Retail Sales are followed less auto sales because these are generally much more volatile than the rest of the Retail Sales and can therefore obscure the more important underlying trend.
Retail Sales are measured in nominal terms and therefore include the effects of inflation. Rising Retail Sales are often associated with a strong economy and therefore an expectation of higher short-term interest rates that are often supportive to a currency at least in the short term.
Durable Goods Orders
Durable Goods Orders are a measure of the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods. Monthly percent changes reflect the rate of change of such orders.
Levels of, and changes in, durable goods order are widely followed as an indicator of factory sector momentum.
Durable Goods Orders are a major indicator of manufacturing sector trends because most industrial production is done to order. Often, the indicator is followed but excludes Defence and Transportation orders because these are generally much more volatile than the rest of the orders and can obscure the more important underlying trend.
Durable Goods Orders are measured in nominal terms and therefore include the effects of inflation. Therefore the Durable Goods Orders should be compared to the trend growth rate in PPI to arrive at the real, inflation-adjusted Durable Goods Orders.
Rising Durable Goods Orders are normally associated with stronger economic activity and can therefore lead to higher short-term interest rates that are often supportive to a currency at least in the short term.
Levels of, and changes in, durable goods order are widely followed as an indicator of factory sector momentum.
Durable Goods Orders are a major indicator of manufacturing sector trends because most industrial production is done to order. Often, the indicator is followed but excludes Defence and Transportation orders because these are generally much more volatile than the rest of the orders and can obscure the more important underlying trend.
Durable Goods Orders are measured in nominal terms and therefore include the effects of inflation. Therefore the Durable Goods Orders should be compared to the trend growth rate in PPI to arrive at the real, inflation-adjusted Durable Goods Orders.
Rising Durable Goods Orders are normally associated with stronger economic activity and can therefore lead to higher short-term interest rates that are often supportive to a currency at least in the short term.
Payroll Employment
Payroll employment is a measure of the number of people being paid as employees by non-farm business establishments and units of government. Monthly changes in payroll employment reflect the net number of new jobs created or lost during the month and changes are widely followed as an important indicator of economic activity.
Payroll employment is one of the primary monthly indicators of aggregate economic activity because it encompasses every major sector of the economy. It is also useful to examine trends in job creation in several industry categories because the aggregate data can mask significant deviations in underlying industry trends.
Large increases in payroll employment are seen as signs of strong economic activity that could eventually lead to higher interest rates that are supportive of the currency at least in the short term. If, however, inflationary pressures are seen as building, this may undermine the longer term confidence in the currency.
Payroll employment is one of the primary monthly indicators of aggregate economic activity because it encompasses every major sector of the economy. It is also useful to examine trends in job creation in several industry categories because the aggregate data can mask significant deviations in underlying industry trends.
Large increases in payroll employment are seen as signs of strong economic activity that could eventually lead to higher interest rates that are supportive of the currency at least in the short term. If, however, inflationary pressures are seen as building, this may undermine the longer term confidence in the currency.
Producer Price Index
The Producer Price Index (PPI) is a measure of the average level of prices of a fixed basket of goods received in primary markets by producers. The monthly PPI reports are widely followed as an indication of commodity inflation.
The PPI is considered important because it accounts for price changes throughout the manufacturing sector.
The PPI is often followed but excludes the food and energy components as these items are normally much more volatile than the rest of the PPI and can therefore obscure the more important underlying trend.
Studying the PPI allows consideration of inflationary pressures that may be accumulating or receding, but have not yet filtered through to the finished goods prices.
A rising PPI is normally expected to lead to higher consumer price inflation and thereby to potentially higher short-term interest rates. Higher rates will often have a short term positive impact on a currency, although significant inflationary pressure will often lead to an undermining of the confidence in the currency involved.
The PPI is considered important because it accounts for price changes throughout the manufacturing sector.
The PPI is often followed but excludes the food and energy components as these items are normally much more volatile than the rest of the PPI and can therefore obscure the more important underlying trend.
Studying the PPI allows consideration of inflationary pressures that may be accumulating or receding, but have not yet filtered through to the finished goods prices.
A rising PPI is normally expected to lead to higher consumer price inflation and thereby to potentially higher short-term interest rates. Higher rates will often have a short term positive impact on a currency, although significant inflationary pressure will often lead to an undermining of the confidence in the currency involved.
Consumer Price Index
The Consumer Price Index (CPI) is a measure of the average level of prices of a fixed basket of goods and services purchased by consumers. The monthly reported changes in CPI are widely followed as an inflation indicator.
The CPI is a primary inflation indicator because consumer spending accounts for nearly two-thirds of economic activity. Often, the CPI is followed but excludes the price of food and energy as these items are generally much more volatile than the rest of the CPI and can obscure the more important underlying trend.
Rising consumer price inflation is normally associated with the expectation of higher short term interest rates and may therefore be supportive for a currency in the short term. Nevertheless, a longer term inflation problem will eventually undermine confidence in the currency and weakness will follow.
The CPI is a primary inflation indicator because consumer spending accounts for nearly two-thirds of economic activity. Often, the CPI is followed but excludes the price of food and energy as these items are generally much more volatile than the rest of the CPI and can obscure the more important underlying trend.
Rising consumer price inflation is normally associated with the expectation of higher short term interest rates and may therefore be supportive for a currency in the short term. Nevertheless, a longer term inflation problem will eventually undermine confidence in the currency and weakness will follow.
Gross Domestic Product
The Gross Domestic Product (GDP) is the broadest measure of aggregate economic activity available. Reported quarterly, GDP growth is widely followed as the primary indicator of the strength of economic activity.
GDP represents the total value of a country's production during the period and consists of the purchases of domestically produced goods and services by individuals, businesses, foreigners and the government.
As GDP reports are often subject to substantial quarter-to-quarter volatility and revisions, it is preferable to follow the indicator on a year-to-year basis. It can be valuable to follow the trend rate of growth in each of the major categories of GDP to determine the strengths and weaknesses in the economy.
A high GDP figure is often associated with the expectations of higher interest rates, which is frequently positive, at least in the short term, for the currency involved, unless expectations of increased inflation pressure is concurrently undermining confidence in the currency.
GDP represents the total value of a country's production during the period and consists of the purchases of domestically produced goods and services by individuals, businesses, foreigners and the government.
As GDP reports are often subject to substantial quarter-to-quarter volatility and revisions, it is preferable to follow the indicator on a year-to-year basis. It can be valuable to follow the trend rate of growth in each of the major categories of GDP to determine the strengths and weaknesses in the economy.
A high GDP figure is often associated with the expectations of higher interest rates, which is frequently positive, at least in the short term, for the currency involved, unless expectations of increased inflation pressure is concurrently undermining confidence in the currency.
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