The global foreign exchange market is the biggest market in the world. The 3.2 trillion USD daily turnover dwarfs the combined turnover of all the world's stock and bond markets.
There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading.
Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.
Monday, February 11, 2008
Brief history of Forex trading
Initially, the value of goods was expressed in terms of other goods, i.e. an economy based on barter between individual market participants. The obvious limitations of such a system encouraged establishing more generally accepted means of exchange at a fairly early stage in history, to set a common benchmark of value. In different economies, everything from teeth to feathers to pretty stones has served this purpose, but soon metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value.
Originally, coins were simply minted from the preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Middle Ages. Such IOUs, often introduced more successfully through force than persuasion were the basis of modern currencies.
Before World War I, most central banks supported their currencies with convertibility to gold. Although paper money could always be exchanged for gold, in reality this did not occur often, fostering the sometimes disastrous notion that there was not necessarily a need for full cover in the central reserves of the government.
Originally, coins were simply minted from the preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Middle Ages. Such IOUs, often introduced more successfully through force than persuasion were the basis of modern currencies.
Before World War I, most central banks supported their currencies with convertibility to gold. Although paper money could always be exchanged for gold, in reality this did not occur often, fostering the sometimes disastrous notion that there was not necessarily a need for full cover in the central reserves of the government.
GFT Ranked as One of the Fastest Growing Companies in North America in Deloitte's 2007 Technology Fast 500
ADA, Mich., Oct. 23, 2007 — Global Forex Trading (GFT), a worldwide leader in online currency trading, announced today that it has been listed on Deloitte’s 2007 Technology Fast 500 for the third consecutive year.
GFT is listed as number 305 on the ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America. Rankings are based on five-year revenue growth percentages, from 2002 to 2006, during which time GFT grew 506 percent. GFT previously ranked 16th on Deloitte’s 2005 Technology Fast 500, and 238th in 2006.
By diversifying its products, adding new emerging markets and developing new software, GFT has continued to grow while many other companies in the state have stagnated. Only 8 percent of companies on the 2007 Technology Fast 500 are based in the Midwest, and GFT is one of only four Michigan-based companies. GFT had the highest 2006 revenue of all Michigan-based companies on the list, and the highest revenue of all listed companies within the forex industry.
GFT is listed as number 305 on the ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America. Rankings are based on five-year revenue growth percentages, from 2002 to 2006, during which time GFT grew 506 percent. GFT previously ranked 16th on Deloitte’s 2005 Technology Fast 500, and 238th in 2006.
By diversifying its products, adding new emerging markets and developing new software, GFT has continued to grow while many other companies in the state have stagnated. Only 8 percent of companies on the 2007 Technology Fast 500 are based in the Midwest, and GFT is one of only four Michigan-based companies. GFT had the highest 2006 revenue of all Michigan-based companies on the list, and the highest revenue of all listed companies within the forex industry.
International Trading Competition Teaches Students about the Currency Markets
Texas A&M University sophomore Vipin Sethi did so well in the Texas A&M Inter-University Forex Trading Competition that he is now considering a career in financial trading. Prior to the competition, Sethi had planned on becoming a sports agent. Now, he’s thinking he might be better suited for a career in finance.
“This has opened a new door,” said Sethi, who won the grand prize of a $10,000 GFT forex trading account by achieving the highest overall rate of return. “I had never even thought about trading before, and now I’m thinking about pursuing it as a career,” he said.
The month-long international competition, which concluded on Oct. 31, drew more than 100 students from 12 colleges and universities to compete for the $10,000 forex trading account from Global Forex Trading (GFT).
Participating students each received an account with $50,000 of simulated capital to trade forex (foreign exchange) in the $3.2 trillion daily currency market. Students used many of the same tools employed by professional traders, which were provided by GFT, a leading online forex dealing company that sponsored the event and provided its DealBook® 360 trading platform for the students to access and trade the market.
“The student’s desire to learn, combined with the superior customer support provided by GFT, makes this competition successful,” said Dr. Detlef Hallermann, competition organizer and assistant clinical professor of finance, Texas A&M University. “The students are required to learn to trade from a platform with no prior background in trading, and my hat is off to GFT for providing their platform and incredible support to help us run this annual competition.”
Sethi, with his 78.64 percent rate of return, finished the competition with almost $90,000 of simulated capital in his account. For his success, he will receive the grand prize of a $10,000 GFT forex trading account, which he will trade for six months and keep any net profits. He also received a cash prize of $900 from competition sponsors BP and a private hedge fund.
This is the third consecutive year that competition organizers from Texas A&M University’s Mays Business School have chosen to use GFT’s award-winning DealBook® 360, which allows students to place trades with simulated capital and access real-time currency prices, news and analysis tools. Over the past three years, the competition has grown from a six-school competition with less than 30 students to its present size.
“This is a great way for students to learn about the market, and we are glad to be involved again,” said Gary Tilkin, president and CEO, GFT. “By pairing real-world experience with classroom instruction, this competition may help the students to be more prepared for successful careers in the global financial markets.”
Undergraduate and graduate students competed to earn the highest rate of return on their $50,000 account. With its student participants achieving the highest average rate of return, Villanova University was awarded with the top university prize of a trophy.
The top ten students, from Texas A&M University, Fairfield University, Penn State University, Villanova University and Concordia University, each received a share of the prize money. Additional schools that participated were Oklahoma State University, University of Toronto, University of Alabama at Birmingham, University of Alberta, North Carolina A&T State University, Siena College, Rollins College and China Europe International Business School.
“This has opened a new door,” said Sethi, who won the grand prize of a $10,000 GFT forex trading account by achieving the highest overall rate of return. “I had never even thought about trading before, and now I’m thinking about pursuing it as a career,” he said.
The month-long international competition, which concluded on Oct. 31, drew more than 100 students from 12 colleges and universities to compete for the $10,000 forex trading account from Global Forex Trading (GFT).
Participating students each received an account with $50,000 of simulated capital to trade forex (foreign exchange) in the $3.2 trillion daily currency market. Students used many of the same tools employed by professional traders, which were provided by GFT, a leading online forex dealing company that sponsored the event and provided its DealBook® 360 trading platform for the students to access and trade the market.
“The student’s desire to learn, combined with the superior customer support provided by GFT, makes this competition successful,” said Dr. Detlef Hallermann, competition organizer and assistant clinical professor of finance, Texas A&M University. “The students are required to learn to trade from a platform with no prior background in trading, and my hat is off to GFT for providing their platform and incredible support to help us run this annual competition.”
Sethi, with his 78.64 percent rate of return, finished the competition with almost $90,000 of simulated capital in his account. For his success, he will receive the grand prize of a $10,000 GFT forex trading account, which he will trade for six months and keep any net profits. He also received a cash prize of $900 from competition sponsors BP and a private hedge fund.
This is the third consecutive year that competition organizers from Texas A&M University’s Mays Business School have chosen to use GFT’s award-winning DealBook® 360, which allows students to place trades with simulated capital and access real-time currency prices, news and analysis tools. Over the past three years, the competition has grown from a six-school competition with less than 30 students to its present size.
“This is a great way for students to learn about the market, and we are glad to be involved again,” said Gary Tilkin, president and CEO, GFT. “By pairing real-world experience with classroom instruction, this competition may help the students to be more prepared for successful careers in the global financial markets.”
Undergraduate and graduate students competed to earn the highest rate of return on their $50,000 account. With its student participants achieving the highest average rate of return, Villanova University was awarded with the top university prize of a trophy.
The top ten students, from Texas A&M University, Fairfield University, Penn State University, Villanova University and Concordia University, each received a share of the prize money. Additional schools that participated were Oklahoma State University, University of Toronto, University of Alabama at Birmingham, University of Alberta, North Carolina A&T State University, Siena College, Rollins College and China Europe International Business School.
DealBook® 360 Named Best Product of the Year by Shares Magazine
LONDON, November 30, 2007 — Shares Magazine has announced that DealBook® 360, GFT’s online trading platform, was voted Best Product of the Year in the magazine’s 2007 Shares Awards. Top honors were announced in London on November 29, 2007.
Shares Magazine readers nominated their favorite financial providers, services and products, and winners were chosen in 26 categories.
DealBook® 360 is a multi-derivative trading platform used by all divisions of GFT’s parent company, Global Futures & Forex., Ltd., including GFT Global Markets. GFT Global Markets, which operates its derivatives dealing headquarters out of the United Kingdom, was also recognized as a finalist in six other categories:
Best CFD Provider
Best Spread Betting Service
Best Foreign Exchange Broker
Best Active Trading Tools
Best Online Trading Platform
Best Futures & Options Broker
DealBook® 360 earned top honors in its category, which included products from Abbey Stockbrokers, Barclays, Bets for Traders, CMC Markets, IG Index, Sucden and TD Waterhouse. In 2006, GFT Global Markets was named a Best Spread Betting Service finalist in the Shares Awards, and took home the award for the Best Foreign Exchange Broker.
“We are committed to serving our customers by providing one of the best and most adaptable trading platforms,” said Muhammad Rasoul, COO, GFT. “And we are honored that the readers of Shares have selected DealBook® 360 as the best product of the year.”
GFT’s free DealBook® 360 trading platform includes many standout features for multi-market trading, ranging from foreign exchange and futures in the United States, as well as spread betting and CFD trading in Europe, the Middle East, Asia and Australia. In addition to delivering real-time pricing and order execution, DealBook® 360 offers traders customizable charting features; audible, text and e-mail price alerts; and order types such as trailing stops to help traders seek to limit losses and protect profits.
Shares Magazine readers nominated their favorite financial providers, services and products, and winners were chosen in 26 categories.
DealBook® 360 is a multi-derivative trading platform used by all divisions of GFT’s parent company, Global Futures & Forex., Ltd., including GFT Global Markets. GFT Global Markets, which operates its derivatives dealing headquarters out of the United Kingdom, was also recognized as a finalist in six other categories:
Best CFD Provider
Best Spread Betting Service
Best Foreign Exchange Broker
Best Active Trading Tools
Best Online Trading Platform
Best Futures & Options Broker
DealBook® 360 earned top honors in its category, which included products from Abbey Stockbrokers, Barclays, Bets for Traders, CMC Markets, IG Index, Sucden and TD Waterhouse. In 2006, GFT Global Markets was named a Best Spread Betting Service finalist in the Shares Awards, and took home the award for the Best Foreign Exchange Broker.
“We are committed to serving our customers by providing one of the best and most adaptable trading platforms,” said Muhammad Rasoul, COO, GFT. “And we are honored that the readers of Shares have selected DealBook® 360 as the best product of the year.”
GFT’s free DealBook® 360 trading platform includes many standout features for multi-market trading, ranging from foreign exchange and futures in the United States, as well as spread betting and CFD trading in Europe, the Middle East, Asia and Australia. In addition to delivering real-time pricing and order execution, DealBook® 360 offers traders customizable charting features; audible, text and e-mail price alerts; and order types such as trailing stops to help traders seek to limit losses and protect profits.
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