Forex encyclopedia

In the United States of America services on operations with finance derivatives with such base asset as the currency quote obtained in the results of trades on FOREX interbank exchange market are mainly rendered by futures brokers with the futures commission merchant (FCM) license and retail FOREX dealers with retail foreign exchange dealer license (RFED). In the USA historically developed distribution of regulation spheres takes place. Under this model, futures market mainly falls under the competence of Commodity Futures Trading Commission (CFTC) and Self-regulatory organization - National Futures Association (NFA). Futures commission merchants and etail foreign exchange dealers acquire CFTC license and also enroll NFA self-regulatory organization. Regulating agencies set minimum amount threshold of company's proprietary funds, which by today amounts to at least 22 mln US dollars.
By technical analysis we should basically understand employment of price chart (and results of its math interpretation) for further market and price forecast. Technical analysis rests upon repeated nature of market and implies that ups and downs of currency quotations on charts are rotated according to certain time periods. An advantage of technical analysis is its universal application: with its help one can research any financial contract for any period of time. The market accounts for everything. That means that any event, which could affect price behavior is already accounted by market and is reflected on the price chart. This proposition means that all factors impacting the price will be definitely reflected in its behavior, therefore, it is required to monitor quote graph.
New in Encyclopedia
Picture of the day
CGPI Japan Corporate Goods Price Index
Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .