Yield curve there are many, such as government bonds, the benchmark yield curve, deposit yield curve, interest rate swaps and credit yield curve yield curve (credit curves) and so on. Benchmark yield curve and other securities on the market of reference, the securities must be consistent with liquidity, size, price, availability, velocity and other characteristics of the standard.

Yield curve is not static, at any time can happen fast changes. For example, the central bank officials in a few words can lead to higher inflation expectations, so that long-term bond prices have fallen faster than short-term bonds.

Under normal circumstances, the yield curve rising from left to right, because the longer term rate of return would be higher to reflect the investment risks and increase with the lengthening period of the case. Of such yield curve, if it increases in long-term yields higher than short-term rate of return, yield curve becomes steeper.

Inversion of the yield curve is a decline from left to right, reflecting the short-term rate of return higher than the long-term rate of return anomalies. This may be because investors expect the inflation rate to decline in the long run, or the supply of bonds will be substantially reduced, both the expected rate of return will be down.
    
    On interest rates, financial commentators often said that the interest rate path, or down, as if every move in interest rates are the same. In fact, if a different year bonds, the interest rate trend will be different, a long period of interest rate and short term interest rate movements can be split. The most important thing is the overall yield curve shape and curve on the economy or market trends in the future inspiration.

Would like to find out interest rates from the yield curve traces of the investors and companies are closely observe the shape of the curve. Yield curve is based, is that you buy in the near future, medium and long-term treasury bonds, the proceeds after the rate of return. Curves allows you to get back in accordance with holders of bonds until the principal amount of the year, to compare bond yields.

The shape of yield curve is based on the straight shaft connected to a different point of Treasury bond yields as well as in the horizontal axis of the bond formed-year point. Now you can see above a bit steep yield curve, in which year bonds yield more than three-month short-term treasury bonds is nearly. The difference between these two types of bonds are usually about, if the difference between the percentage of higher than this, that said the economy is expected to improve in the future.

Steep yield curve in general appeared in pace with the economic recession of the early stage of economic expansion. At this point, economic stagnation and short-term interest rates have been suppressed, but the One once to re-establish the growth of economic activity the demand for capital, and the fear of inflation, interest rates generally began to rise.

Traditionally, the inverted curve, said the economy would soon slow down. Financial institutions such as banks typically borrow short-term interest rates and will be a long-term lending money. Generally speaking, when the long-term rates higher than short-term interest rates and relatively high between the two, in this case, the bank’s loans are usually low. In general, the lower the amount of corporate lending will lead to credit crunch, business is slow, and economic decline.

This is a typical view. The latest case is different, and perhaps more complex than ever. Recent decline in U.S. Treasury long-term bonds issued, and in the past few years, when the first time in budget surpluses over the years in Washington to begin paying some of the long-term bonds have not been paid.

Reduce the long-term bond issuance prompted investors to buy longer-term bonds, and thus raised the long-term bond prices and lowered its rate of return, the question arose inverted curve. Bond prices and yields the opposite direction. However, the year the Federal Reserve interest rate cut carried out radical measures in the case of short-term rates down, return to the traditional increase in yield curve shape.

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The foreign exchange market 24 hours of continuous operation, up or Change, does not stand still. Its trend as the day and night on earth conversion, again and again. Correspondingly, we can be divided into exchange-rate movements of the stock market bottomed, up, building the head and fell four stages. These patterns we can observe the exchange rate charts, such as commonly used to determine the K-line graph.

1, bottomed stage. Exchange rate bottomed shape generally have triple bottom, head and shoulders bottom, double bottom (W end) and the semicircle at the end (bottom), etc.. The bottom of the horizontal area of the larger building, representing the cumulative kinetic energy increases more the greater the rate of rise. At this stage, should be carried out buy low and sell high range operations, such as conservative, the stage may be waived by the profitability of the opportunity and fighting the next phase.

2, up stage. When the exchange rate at the bottom of the neckline break early on the trend indicates an increase in the beginning, and the increase in height is usually at the bottom of the vertical height of the early. This stage as an energetic young man, desperate to live forward setting and ran away, Tiaode Gao, although there is no difficulty as long as the stamina, but a break will be able to set off again, just like the main stage of the rising Quotes, magnitude large and fast, although the continued upward pressure on long But when a little correction as long as the order will be able to immediately re-launch a new round of upside. The initial period of this phase should be to our brave chase the best time to buy. Rising phase is also our main source of profitability.

Third, build the first phase. Is the rise in the late stage. Quotes trend upward again this time attempting to push up but the effort has been exhausted long before the wave can not break through the high points, the final break through the neckline down to the completion of the head and into the fall phase. At this stage, early and long-term pay should be shot, short-term to try to do Kuaijinkuaichu range operations.

4, down stage. And a rising phase as simple as that, but in the opposite direction. At this stage to lose morale and inability to support the exchange rate fell rapidly until the rate of kinetic energy disappears into the bottomed stage. Decline phase should be strong sell into the rapid stop of the stop-loss, or costly.

   Attention to the root zone “new” K-Line

   Like many people who do not accept the chart, I also had a lot of technology after the failure of useless things, because technology, recognized the need for a foundation, out of two-way to judge will result in the loss part of the time, tend to become a major Quotes little opportunity, if the miscarriage of justice from taking even one several times, losses are inevitable. To this end, I would push back, to revert to the most simple graph K-line and constitute the K-line on each of the transaction amount.

   Most of the transaction and K lines are neutral, there is no interpretation of the meaning, and only decided to change direction and brewing some of it deserved attention. Therefore, we need a concept to filter, it is the word “new”: new directions, new prices, new range, the new rates, new rhythms, new volume, and so everything’s new.

   When the word “new” happens, I will be highly sensitive and concerned about the root zone is very concerned about this “new” K-lines generated by high and low points, which represent the key unit of time within the two poles: one strong and weak forces brewing process of the limit of where the long-short, if immediate deduction in accordance with relevant logic, and the pole to break, then the breakthrough point, or appearance shall Admission signals; while the other pole will automatically become the correct position, as the wrong remedy.

   Identify the interest-bearing line

   The composition of all the technical graphics are the deduction comes from the K-line, and we removed the key to noise and find the attitude of conversion and the strength of money in the process of brewing Flanagan K-line core. This approach lies at the core to simplify, recognizing that it will be a holographic line, implies decide the future of some important information graphics and logical values, through its understanding and explained the logic, we can find the earliest opportunity, and will error limited to a range.

   While we stress the simplification of requirements in order to chart the basic unit of center, but not to weaken the major graphic to explain, just want to zoom in and attention to the basic unit of information contained in the.

   The above is my basic understanding that the analysis of the chart. Be pointed out that the “new” is not equivalent to “change” or “different”, which from an operational point of view of technical analysis required the use of persons, not to Italy, not to will, to see around corners, but it should not be attempted by the differences involved, to avoid falling into the trap of change.

Volatility and unpredictability of the most fundamental characteristics of the market, which is the basis of market exists, but also the causes of the risk of the transaction, which is an immutable characteristic. Transaction never certainty, all the analysis and forecast is only a possibility, according to the transactions carried out such a possibility is naturally uncertain, uncertain act must have to have measures to control the expansion of its risk, stop-loss Thus came into being.

Stop-loss of human naturally occurring in the transaction process, not intentionally produced for investors to protect their own kind of instinct, the market uncertainty created the need for the existence and importance of stop-loss. Successful investors may have their own different ways of trading, but stop it is to protect the Yi are the common features of success. World Investment Master George Soros said the investment itself has no risk of loss of control have the risk of the investment. Society Stop, Do not fall in love and loss. Stop-loss than a profit important, because any time the capital preservation is the first one, the profit of the second place, a reasonable stop-loss principle quite effective and prudent principle lies stop to prevent a loss continued to widen.

Why is so difficult to stop currency speculation

To understand the meaning of stop-loss is important, however, this is not the final result. In fact, investors did not set the stop loss abounds with examples of the implementation of the market, were forced out of the tragedy played almost every day. Stop Why is it so difficult? There are three reasons: First, the chance of psychological mischief. Some investors also know that despite the trend has been Po Wei, but was too hesitant, always like to look at, wait a minute, resulting in missed their stop-loss of good time; Second, frequent fluctuations in prices will make investors hesitant to undecided, frequent stops will give investors the wrong left lingering memories, and thus shake the determination of investors to the next stop; Third, the implementation of stop-loss is a painful thing, is a bloody process is the weakness of human nature challenges and tests.

In fact, each transaction is correct we can not determine the status or error status, even if profitable, we are also difficult to determine the immediate appearance or the holders of wait and see, let alone in a fitted state. ]]> http://www.liteforexbroker.com/stop-speculation-how-the-exchange-rate/feed/ 0 http://www.liteforexbroker.com/bonus-up-to-1000-liteforex-starts-the-year-of-bonus-programs/ http://www.liteforexbroker.com/bonus-up-to-1000-liteforex-starts-the-year-of-bonus-programs/#comments Mon, 25 Jan 2010 13:20:14 +0000 admin http://www.liteforexbroker.com/?p=349 On 21 January, 2010 the bonus program has been launched. This bonus promotion has became especially popular among the clients of the LiteForex group of companies. According to the conditions of the promotion every trading account that is deposited from the 21th January to the 28th February (inclusive), 2010 will receive a bonus up to $1000.

The participation in the promotion allows any trader to decrease personal expenses and increase one’s trading opportunities. A similar bonus promotion has been held for the first time in autumn of 2009 and by the time it was over it was so popular among the clients of the LiteForex group of companies that we decided to relaunch it on January 21, 2010.

“We haven’t changed the promotion conditions as it was exactly this way that it became so popular within the community of the LiteForex group of company clients,” – the president of the LiteForex group of companies Aleksey Smirnov explains. – “The bonus period begins on January 21 and will last until the end of the winter that is February 28 inclusive. We will credit a bonus up to $1000 on every trading account that is deposited during the promotion period.”

According to the bonus program conditions the amount of bonus credited to the account is in direct relation with the sum deposited. The bonus sums of $100, 200, 500, 700 and $1000 will be deposited to the accounts credited with $300 up to $1000, $1000 up to $3000, $3000 up to $5000, $5000 up to $10,000 or more than $10,000 respectively.

Any profit achieved as a result of trading using the bonus amount can be withdrawn at any time preferred by the account holder without any restrictions. The bonus can be also withdrawn from the trading account but the following condition has to be fulfilled: no less than 50 transactions must be completed with the total amount no less than 1/10 of the deposited bonus amount.

“To withdraw the bonus funds from your account you have to do the following,” – Aleksey Smirnov continues. – “You need to write an e-mail to your account manager and indicate in the e-mail that you want to withdraw your bonus sum. As soon as the manager checks the compliance with the conditions shehe will activate the possibility of the funds to be withdrawn. The procedure is quite simple and requires no more than one business day to be executed.”

For more detailed information upon conditions and restrictions you need to know about to participate in this promotion please visit the LiteForex group of companies official web site: http://liteforex.org/promotions_depo.php

Foreign agent, the preferred MG. Welcome foreign fans to discuss ~
Personal communication QQ: 1400920812
QQ Exchange Group: 45.40918 million
Free Hotline :400-699-0212

Inevitable errors and loss of produce, do not blame yourself, it is important from learning the lessons and avoid repeating the same mistakes, the sooner you learn to accept loss, learning the lessons, the faster the days of the advent of profits. In addition, we must learn to control their emotions and not to make money and pride, they do not due to loss of an optimist. Transactions, the less personal feelings, the easier you can see the market situation and make the right decisions. A calm state of mind to face the gain or loss, to understand the transaction were not learning from the profits, but from the loss of growth, when a loss to understand the reasons for each, that means you Youxiang profit path step further, because you have to find the right direction.

● own worst enemy

Trader’s biggest enemy is themselves – greed, haste, uncontrolled emotions, there is no preparedness heart, excessive self, and so it is easy to make you ignore the market trends which led to the wrong trading decisions. Not just for a long time did not approach trading transactions are carried out, or boredom, there are no certain standard provisions of the necessary number of a particular volume of transactions during the period.

● Record the factors that determine transaction

Detailed record of daily transactions, factors that determine whether this was what the event message, or other reasons for trading decisions you do, do the transaction and then to analyze and record the bottom-line results. If it is a profitable trading results, that your analysis is correct, when the similar or the same factors again, your records of transactions made will help you make the right trading decisions quickly; of course, a loss of transaction records allows you to avoid repeating the same mistakes. You can not experience all of all transactions recorded in the mind, so this record will help improve your trading skills and find out what is wrong.

● Homeopathy operation, not to contrarian OK

To remember the old General Market: loss of part of the termination as soon as possible, profits will hold long positions on the long put. Another important code is not to let the losses occurred in the original site has been profitable, the sudden reversal of the face of market trends, instead of liquidation is not the case at no profit to make a profit position that had been turned into a loss situation.

● Do not be anxious state of mind to turn around and deal

The face of loss-making situation, remember not to rush to the opening of a new position an attempt to reverse emancipation, which often only make the situation become worse. Only when you think the original forecast and decide on a totally wrong circumstances, to settle a loss position as soon as possible to open a reverse of the new positions. Do not guess with the changes in the market to play the game, missed trading opportunities, better than a loss to produce a good.

● Each is a separate transaction

Never put two or more transactions linked! Remember that each transaction is a separate transaction.

For example, put in the 121.00 yen after 120.50 stop. 3 days later, after analysis, that the dollar will rise to buy U.S. dollars at current prices you can put the yen, but the price is 120.80, then, do not think that the last transaction in the 120.50 stop-loss, and now want to put it is not worth the 120.80 that must and so on down to the last stop-loss below 120.50 before the stock market. Such a link has not helped, and easy to miss the boat! As long as analysis, determine the transaction the market, stop loss, profit price, the market can be decisive.

The Bretton Woods Agreement signed in 1944, have sought to prevent the currency in inter-State to escape, limiting the international currency speculation, in order to achieve the international monetary stability. In this agreement, the gold exchange standard between the First World War in 1876 to dominate the international economic system. Gold exchange standard, the currency in support of the price of gold reached a new stable stage. Gold exchange standard system, the abolition of the old days, kings and rulers of arbitrarily belittle currency, inflationary behavior.

However, the gold exchange standard system is not perfect. As a country’s economic strength, it will be a large number of imported goods from abroad until it runs out of gold required to support the national currency reserves. As a result, money supply tightening, raising interest rates, slower economic activity until the recession. In the end, commodity prices hit bottom, and gradually attracted to other countries, Fun to ride a large number of buying goods in the country. This will be the country back into gold, until the increase in the country’s money supply and decreasing interest rates and re-creation of wealth. Such “boom – bust” pattern throughout the Gold Standard era, until the outbreak of World War I interrupted trade flows and free movement of gold.

Wind and rain havoc in several of the war, the Bretton Woods Agreement introduced. Signatory countries agreed to try to maintain their currencies against the U.S. dollar exchange rate, and, when necessary, the corresponding ratio for gold, only allow a smaller fluctuations. States to prohibit trade in order to obtain the benefit of depreciation of their currencies, only allowed within the range of less than 10% devaluation of the currency. Into the 50’s, the growth in international trade led to a result of post-war reconstruction and the transfer of funds generated by large-scale, which makes the Bretton Woods system established by the loss of a stable exchange rate.
This agreement was finally abolished in 1971, the dollar will no longer be exchangeable into gold. By 1973, the major industrial countries more freely floating currency exchange rates, mainly from the foreign exchange market on the regulation of money supply and demand. As the trading volume, transaction speed and price volatility in the 20th century, 70 years in the overall growth of the floating daily price ratio, new financial instruments gradually come out, market liberalization and trade liberalization can be achieved.

80 years in the 20th century, with the advent of computers and related technologies, to accelerate cross-border capital flows will be in Asia, Europe, America and other continents together into one time zone for the market. Foreign exchange transactions increased from the mid-80s at about 70 billion U.S. dollars a day shot up to 20 years later, today’s 1.5 trillion U.S. dollars a day.

The expansion of the European market

Vigorous development of foreign exchange trading is one of the major contributing factor to the rapid development of the Eurodollar market; in the Eurodollar market, the dollar is deposited in banks outside the United States. Similarly, the European market means the assets are held in the currency markets outside the country of origin. The Eurodollar market was originally formed in the 50’s, when Russia will be its oil earnings (dollars) deposited outside the United States in order to avoid U.S. dollar deposits by the U.S. government to freeze risk. This form from the U.S. government control of the huge off-shore U.S. dollar treasury. The U.S. government imposed laws to restrict dollar lending to foreigners. As the European market more flexible and higher returns, it is particularly attractive. From the late ’80s, U.S. companies began to borrow from offshore funds raised, after the market and found that the European market for holding excess liquidity, providing short-term loans and financing imports and exports is very convenient.

London was (and still is) a major offshore markets. In the 80’s, the Bank of England to maintain its global dominance in the financial industry began to pound the U.S. dollar as an alternative currency for lending, thus becoming the center of the Eurodollar market. London’s convenient geographical location (between the market between Asia and the Americas) also contribute to the local remained at the leading position in the European market.