About 70% to 90% of the foreign exchange transactions are speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency. Hedge funds have gained a reputation for aggressive currency speculation since 1996. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favor

The off-exchange retail foreign currency market ("forex") describes the purchase of a particular currency from an individual or institution and the simultaneous sale of another currency at the equivalent value or current exchange rate. Essentially, the process of exchanging one currency for another is a trade based on the current rates of the two currencies involved.

Headquartered in Salt Lake City, UT, Interbank FX, LLC (IBFX) is a leading provider of online forex trading services, offering individual traders, fund managers and institutional customers proprietary technology and tools to trade spot foreign currency online.
Unlike other retail FX brokers, IBFX has distinguished itself as an industry leader with its unique "no dealing desk" agency model, proprietary tools and services, and focus on customer care. This has led to longer term and more profitable relationships and has also manifested itself in the numerous awards and industry accolades that IBFX has compiled. The recognition includes Best Online FX Provider, Best Foreign Exchange Broker, Best Chairman, Ernst and Young Entrepreneur of the Year, and Inc 500.
Interbank FX serves clients from more than 140 countries and supports trading volume in excess of US$70 billion per month. The company is regulated as a Forex Dealer Member by the National Futures Association and is also registered with the Commodity Futures Trading Commission as a Futures Commission Merchant.
IBFX3165 Millrock DriveSTE 200Salt Lake City, UT 84121-4732 Driving Directions (printer friendly) Toll Free: US and Canada: 866.468.3739Australia 1.800.884.912Indonesia 001.803.017.9112Malaysia 1.800.813.776New Zealand 0800.445647Singapore 800.101.2097United Kingdom 0.808.120.1966 International: +1.801.930.6800Fax: 212.884.0609

Forex trading examples

Forex trading examples

Forex trading examples

Example 1
An investor has a margin deposit with Saxo Bank of USD 100,000.
The investor expects the US dollar to rise against the Swiss franc and therefore decides to buy USD 2,000,000 - 2% of his maximum possible exposure at a 1% margin Forex gearing.
The Saxo Bank dealer quotes him 1.5515-20. The investor buys USD at 1.5520.
Day 1: Buy USD 2,000,000 vs. CHF 1.5520 = Sell CHF 3,104,000.
Four days later, the dollar has actually risen to CHF 1.5745 and the investor decides to take his profit.
Upon his request, the Saxo Bank dealer quotes him 1.5745-50. The investor sells at 1.5745.
Day 5: Sell USD 2,000,000 vs. CHF 1.5745 = Buy CHF 3,149,000.
As the dollar side of the transaction involves a credit and a debit of USD 2,000,000, the investor's USD account will show no change. The CHF account will show a debit of CHF 3,104,000 and a credit of CHF 3,149,000. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the profit calculation.
This results in a profit of CHF 45,000 = approx. USD 28,600 = 28.6% profit on the deposit of USD 100,000.

Example 2:
The investor follows the cross rate between the EUR and the Japanese yen. He believes that this market is headed for a fall. As he is not quite confident of this trade, he uses less of the leverage available on his deposit. He chooses to ask the dealer for a quote in EUR 1,000,000. This requires a margin of EUR 1,000,000 x 5% = EUR 10,000 = approx. USD 52,500 (EUR /USD 1.05).
The dealer quotes 112.05-10. The investor sells EUR at 112.05.
Day 1: Sell EUR 1,000,000 vs. JPY 112.05 = Buy JPY 112,050,000.
He protects his position with a stop-loss order to buy back the EUR at 112.60. Two days later, this stop is triggered as the EUR o strengthens short term in spite of the investor's expectations.
Day 3: Buy EUR 1,000,000 vs. JPY 112.60 = Sell JPY 112,600,000.
The EUR side involves a credit and a debit of EUR 1,000,000. Therefore, the EUR account shows no change. The JPY account is credited JPY 112.05m and debited JPY 112.6m for a loss of JPY 0.55m. Due to the simplicity of the example and the short time horizon of the trade, we have disregarded the interest rate swap that would marginally alter the loss calculation.
This results in a loss of JPY 0.55m = approx. USD 5,300 (USD/JPY 105) = 5.3% loss on the original deposit of USD 100,000.

Example 3
The investor believes the Canadian dollar will strengthen against the US dollar. It is a long term view, so he takes a small position to allow for wider swings in the rate:
He asks Saxo Bank for a quote in USD 1,000,000 against the Canadian dollar. The dealer quotes 1.5390-95 and the investor sells USD at 1.5390. Selling USD is the equivalent of buying the Canadian dollar.
Day 1: Sell USD 1,000,000 vs. CAD 1.5390. He swaps the position out for two months receiving a forward rate of CAD 1.5357 = Buy CAD 1,535,700 for Day 61 due to the interest rate differential.
After a month, the desired move has occurred. The investor buys back the US dollars at 1.4880. He has to swap the position forward for a month to match the original sale. The forward rate is agreed at 1.4865.
Day 31: Buy USD 1,000,000 vs. CAD 1.4865 = Sell CAD 1,486,500 for Day 61.
Day 61: The two trades are settled and the trades go off the books. The profit secured on Day 31 can be used for margin purposes before Day 61.
The USD account receives a credit and debit of USD 1,000,000 and shows no change on the account. The CAD account is credited CAD 1,535,700 and debited CAD 1,486,500 for a profit of CAD 49,200 = approx. USD 33,100 = profit of 33.1% on the original deposit of USD 100,000.

How To Trade The Forex Market With A Secret Trading Formula Only a Handful Of Traders Know..

How To Trade The Forex Market With A Secret Trading Formula Only a Handful Of Traders Know..

How To Trade The Forex Market With A Secret Trading Formula Only a Handful Of Traders Know..
What you are about to read will change how you trade forever. Not only will it change how you trade - it will change how you look at the market.
Here's why: There is a certain combination of simple indicators and technical analysis that can consistently and accurately tell you where to get into and out of the market with a massive profit and laser sharp accuracy.
You will not find this in any other book or web site.
This is a unique discovery.
This simple technique has never been used in this combination before.
I am not talking about some hypothetical mumbo jumbo here. I am going to show you exactly how to pinpoint your entry price, your exit price and where to put your stop loss.
Don't take my word for it. Listen to a full time, professional trader who has been using the method for over a year?
Listen To WhatMark RadloffHas To SayClick Here Now!
Hi - this is Mark Radloff from South Africa and I would just like to congratulate you Mark on a superb forex course. I was a student of yours almost a year ago and have used these exact same methods to produce spectacular results.
Because I use these methods every day I have no hesitation in recommending them to anyone who is even remotely interested in forex.
The course is easy to understand and will get you trading with a simple profitable system in no time. This will save new traders thousands of dollars on seminars that don't produce any results.
Of everything I have ever read on forex this is by far the best.Well DoneMark RadloffSouth Africa
Spectators can never understand what it is like to be a player. This is your chance to become a real player.
The problem with most new traders is that they lose their account before they even get a chance to understand how the market works. I know - I have been there:I know what it's like to watch every pip on the screen until your eyeballs go red.
I know what it's like to have a losing position turn bad just as your ready to take your profit.
I know what it's like to have your own money on the line. You see - everyone is an expert until it comes to putting their hard earn cash on the table. When you lose buddy, you feel the pain! If you have five or six losing trades in a row, you are ready to give up.
That's exactly how I felt when I started trading. I knew there had to be a better way. I was certain there had to be a way to trade that didn't put me on an emotional roller coaster. I also knew I could crack the code.
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Is it the Holy Grail?
Not a chance. This is a no BS method of getting in and out of the FX market with the minimum risk and the maximum gain.
What this will do is save you years of research and give you a sound method of trading the forex market.
Hello my name is David and I live in Lanarkshire, England. I just finished reading Mark McRae's new book on trading foreign exchange. This book is brilliant.
You learn everything you need to know about trading forex. It could be used in any market. It is the complete package. You don't just get ideas - you get a full trading strategy. This is shown in easy to understand charts, you get the entry points for the trade - you get the exact stops, also you get the targets.
The book is like I say the complete package and after reading the book and with a bit of practice you should become a very competent trader.
David Curran England
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Invest just 3 hours reading this instantly downloadable manual and I will guarantee it will improve your trading. That is not an idle guarantee. I will literally let you have the whole course plus access to the "Traders Secret Library", plus all the bonuses for 60 days to look over at your leisure. If after 60 days you don't think this is the most revolutionary trading technique you have ever seen, just drop me a line and I will give you your money back. No questions asked. That's how confident I am.
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Scared Money Can't Win
You have to be able to trade with absolute confidence that your trading method works. You need to be able to place trades in the knowledge that you not only have the winning edge but that you have an unfair risk reward advantage.
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Mark, this is the 2nd book that I have read by you, and you continue in your tradition of no hype, no BS and to the point investment literature. This FX course is elaborate, educational and of great value to any person who wants to start trading one of the most liquid markets in the world. I hope this is not your last book! Yours Truly, Matthew ZimbergCommodities and Futures Broker
The "Risk Probability Calculator" is an excel program which will not only tell you the best place to enter the market, it will tell you the best place to put your stop loss and give you an uncannily accurate forecast of where to take your profit.
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N.B. Past results are not necessarily indicative of future results.
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The method is simple to learn and even a new trader should be able to master it in a day.
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Large moves are automatically captured with very little proportional risk.
Even on 5 - minute charts there is no need to stay glued to the screen. Once your information has been gathered and the criteria met - you can set it and go.

FOREX TIPS

FOREX TIPS

Free Forex tips, valuable Forex advice to help improve your trading.www.freeforextips.net/

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FOREX TRADING

FOREX TRADING

Forex Education. Introduction to Trading Forex · History · Forex Trading Basics · Forex Trading Examples · Working with statistics · How to Trade Forex ...www.forextrading.com/

FOREX-US dollar rises as jobs data dulls market optimism - Reuters

FOREX-US dollar rises as jobs data dulls market optimism - Reuters

FOREX -US dollar rises as jobs data dulls market optimism Reuters By Steven C. Johnson NEW YORK, April 3 (Reuters) - The US dollar rose against most currencies on Friday as data showed the United States continued to hemorrhage jobs in March, dulling recent hopes of a nascent recovery and enhancing the greenback's …

Forex Vs Stock

Forex Vs Stock

Forex (Foreign exchange market) is an inter-bank market that took shape in 1971 when global trade shifted from fixed exchange rates to floating ones. This is a set of transactions among forex market agents involving exchange of specified sums of money in a currency unit of any given nation for currency of another nation at an agreed rate as of any specified date. During exchange, the exchange rate of one currency to another currency is determined simply: by supply and demand – exchange to which both parties agree.A stock market, or (equity market), is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.Stocks are usually arbitrary pieces of a company that the board of directors issues to the public so that ownership of the company is distributed among everyone with a piece of stock.The performance of a company’s stock is directly related to the performance of that company greater profits generated by the company translate into higher stock prices. Stocks can be sold off to make a profit or held for future gains.

World Currencies

World Currencies

Concept of currency:

1. country's monetary unit and its type (golden, silver, paper);
2. foreign countries banknotes as well as credit and payment instruments expressed in foreign monetary units (bills of exchange, cheques etc.) and used in international payments.

Currency types:

1. fully convertible currency has no restrictions on any financial transactions for both residents as well as non-residents and may be exchanged for any foreign currency (the US dollar, Canadian dollar, Swiss franc, etc.);

2. partially convertible currency has restrictions on certain foreign exchange transactionsas well as restrictions for non-residents. Partially convertible currencies are those of the majority of Western European countries (Great Britain, France, Italy, Belgium, the Netherlands, Sweden, Denmark, Norway, Finland and Austria). After abolishing in December 1958 foreign exchange restrictions for non-residents, it became possible for them to convert any amount of money in bank accounts into US dollars or other currencies;

3. inconvertible (weak) currency has restrictions on currency transactions for residents as well as for non-residents. This group consists of currencies of dependent and developing countries, which are pegged to the parent states? currencies. Weak currencies rates are set at levels profitable for foreign monopolies.

London Stock Exchange and Tokyo Stock Exchange sign Co-operation Agreement.

London Stock Exchange and Tokyo Stock Exchange sign Co-operation Agreement.

The London Stock Exchange and Tokyo Stock Exchange Inc, today signed an agreement, aimed at enhancing their international presence through co-operation on access arrangements and the developments of the new products.

This is the first time that the two exchanges have agreed to work together, and it is expected that the co-operation will bring benefits for investors, issuers and member firms.

How To Find Potential Profitable Stocks

How To Find Potential Profitable Stocks

There first thing is knowing where to look. It is quite amazing sometimes where a tip or information will come from.

Below is a list which will be a basic starting point. You will develop your own sources as your own experience grows.

1. Newspapers.

Usually can be found in the business section, but can be found elsewhere particularly if they have done something out of the ordinary and the Media have got wind of it.

2. Specialist Magazines.

The main ones in Australia can be found in any newsagency .The most popular being, “The Australian Financial Review” this comes out on a monthly basis.
Another is “The Bulletin” which comes out on a weekly basis. Though not as informative as AFR it has an interesting page called “The Speculator.” The author has a reputation of having his finger “on the pulse” so to speak. Especially in the resources area.

3. The Internet.

This is particularly an area where you will find a wealth of information, sometimes too much.

I receive the vast majority of my information in the form of newsletters. This arrives by E- Mail on a daily basis. I then sift through it and keep the information I want and discard the rest.
(A list of these newsletters can be found at the website on the bottom of this page.)

4. Other Media.

Radio and television can be useful sources of information. Usually on the nightly 6 pm news and the various finance/ business programmes that abound on Foxtel and other finance channels.

5. Friends, relatives and casual acquaintances.

Stock Trading Business - Things to know

Stock Trading Business - Things to know

Stock market can be a great source of income if you can trade wisely. Wise trading means that the investors are guided by wit and knowledge. The trade can be a real hell for the ones who take it as a gambling and go on staking their money randomly on the stocks. If you are making investments randomly, there is a very small chance that you will gain. Frequently, the little that you gain would be consumed in paying fee to the stock broker. Now the question arises, what do you need to know before you trade stocks?

There are lots of books available in the market that tells you about the shares, the share market and about other related topics. Before stepping into the share market you should read at least a few of them. The Internet also provides you a vast amount of information on every aspect of the stock trade. Such huge amount of the information available can sometimes be confusing to you. But use your brain to judge what, from the information provided, is required for you and rule out the confusing part as undesired. If you want to escape from the pain of acquiring knowledge, investing in the stock market would be just as good as throwing your money into the dustbin.

You should also know about yourself, i.e. what kind of an investor you are. Some people study the market more subtly whereas some others merely take an overall knowledge of the various aspects. Also see how much money you have to trade with and what is your source that gives you money for investing. If you are taking the stock trade as a full-time income and it is your only source of income, you will have to modulate your investment and trading strategy, so you can support yourself. If the stock trade is your part-time income, you must know exactly how much your source of income allows you to invest. It is often better to invest amounts you can manage to lose, comfortably, so that you do not come under pressure. For, the higher pressure you are under, the greater is your chance to lose.

The common term related to the stock exchange is yet another thing you need to know before investing. The terms such as bull, bear, pig etc. are the commonly used ones in the stock market. For example, the bull represents the investors that always expect the stocks to rise in their value and the bear represents the group that expects the opposite. This means that the bulls in the market have a positive attitude whereas the bears are always negative. Knowing these terms would be a great help for you when you go out to trade. After this, you want to know about the stock brokers. Do you want a full-service broker or a discount broker? Do you want an online stock broker or a traditional one? Analyze your trading strategy and decide finally, take some trading tips from the successful traders known to you.

Mexican Stock Exchange,

Mexican Stock Exchange,

located in a beautiful area of Mexico City, looks like a giant glass covered Nintendo Wii. And as if that weren't enough evidence to claim the #3 spot, they went and planted one huge palm tree between the two buildings. Perfect spot for a 3 o'clock siest

forex trade?

forex trade?

1. forex is profitable and it is very exciting business. You may trade 5,5 days per wheek; 24 hours a day from Sunday night to Friday night. Main rules to win: Always have trading plan, Be patient - market always be there Don't be greedy, Don't set too big goals, Never risk more than 1%-2% of your trading capital, Always use reasonable stop loss orders. And note markets are not places - markets are people. If you are interesting I could introduce you to one of forex broker leaders that is located in SWITZERLAND and Regulated by the Swiss Federal Department of Finance; audited by KPMG. They have very tight spreads. Total 25 currency pairs Gold and Silver. SPREADS: 2 pips for EURUSD, USDJPY, AUDUSD, EURGBP, EURCHF; 3 pips for GBPUSD, USDCHF, USDCAD, EURJPY; 4 pips for CADJPY, CHFJPY; 5 pips for NZDUSD, AUDJPY; 6 pips for EURAUD, GBPCHF, NZDJPY; 7 pips for EURCAD, GBPJPY; 8 pips for GBPCAD, GBPAUD, AUDCHF, CADCHF, NZDCHF; 10 pips for AUDCAD, AUDNZD. LEVERAGE 1:200 default but client could chose the leverage from 1:1 to 1:200 at the account opening procedure. MARGINS. The margin or leverage a client can have depends on the client's account equity. The table below shows margin requirements for the different equity levels: Less than 25,000 - 0.5% 25,000 to 1,000,000 - 1% 1,000,000 to 5,000,000 - 2% 5,000,000 to 10,000,000 - 3% Above 10,000,000 - 5% Please note that on weekends and holidays margin requirements remains the same. SWAPS are counted as negative as positive. Also is available swap-free accounts. STOP and LIMIT orders may be placed as close as 5 pips from market price TRADING TERMINAL Meta Trader 4. Clients can choose to have their accounts denominated in either USD, EUR, GBP, JPY, CHF, AUD or CAD. Initial account opening deposit from US$2000. From first view it probably looks high comparing with other brokers who allow mini accounts and minimum initial deposit from USD250 but it is more useful and safer because clients are more protected from quick stop out and total loss of the initial deposit in the case if unfortunately it would be several unlucky trades in rage. This is regular forex trading account however it is allowed trading in mini lots (from 0.1 lot). If you are interesting I could introduce you to them please e-mail or PM me (press on my name) and I provide you with further information. Furthermore I could provide you for FREE with more than 50 trading e-books and trading systems that worth more than several thousand dollars and are very useful as for beginners as for experienced traders. If you have any questions, please don't hesitate and contact me (press on my name). Good luck!
2. Forex Trade can be very profitable. I suggest that you join an investment club to earn and learn . I am in one and I average a return of 5.3% per month ,What is cool is there is no fees to join no fees to trade the club makes trades for free and also in weekly emails they inform the members as to what was traded and why.I will be more than happy to inform you how to get in touch with the club CFO Oh and just so you know, I do not make any money by you joining.
3. forex trade is profitable. u may get started by following the link below & the best broker is marketiva. Using the Mtpredictor's technical analysis Elliot Wave Principle software, Bsmtprediction provides Forex Traders with FREE access to AUD/USD, EUR/GBP, GBP/USD, EUR/USD, NZD/USD, USD/CAD, USD/CHF, EUR/JPY, GBP/JPY & USD/JPY daily currency forecasts through this website. At Any Time / Any Day (we'll straight away post the signals here in real-time if there's any triggered) 1 hour, 4 hours & daily time frame forecasts are published on this site. The predictions are good from the moment they are published until either it reached the take profit target, hitted the stop loss or another new prediction of the same currency & timeframe unveils on the same / following day. Essentially, the prices shown are for an unknown period.. That's why we encourage you to subscribe our FREE Google Groups newsletter to get the latest signal updates sent to your e-mail from the very 1st minute it surfaces the net..

Hong Kong Stock Exchange

Hong Kong Stock Exchange

The Listed Equity Linked Instruments are structured products that are issued by banks and other financial institutions. These products are tailored for retail and institutional investors who want to earn an interest rate higher than the rate of the ordinary time deposits. There are three types of ELIs that are traded in the Hong Kong Stock Exchange and they are Bull , Bear and Range

Best Times To Trade Currencies

Best Times To Trade Currencies

Best Times To Trade Currencies

Forex is a 24 hour market and there will be good setups for profitable trades in the Asian, European and US sessions. It pays to look at historical price data on forex charts to see what time of the day you could be watching the market and what time you could be doing something else. The aim is to trade when the average trading range is worthwhile and stay out of the market when price is in a narrow sideways range.

There are good online and downloadable tools at forex market hours

The market opens on Monday morning in Wellington New Zealand .8 am Wellington time is 8pm GMT,9pm BST,4pm EDT (Sunday evening New York time)

MARKET OPEN TIMES

(Summer Northern Hemisphere)

GMT	Sydney	Tokyo	Frankfurt	London	New York
2200					1800
2300					1900
0000					2000
0100					2100
0200					2200
0300					2300
0400					0000
0500					0100
0600					0200
0700					0300
0800					0400
0900					0500
1000					0600
1100					0700
1200					0800
1300					0900
1400					1000
1500					1100
1600					1200
1700					1300
1800					1400
1900					1500
2000					1600
2100					1700

The market closes for the week at 4pm EDT on Friday.

where BST is British Summer time ,EDT is Eastern Daylight Time USA.Check your local time at http://forex.timezoneconverter.com

The most active pairs during the London session are EURUSD with 39% of the trading volume, GBPUSD with 23%, USDJPY with 17%, USDCHF with 6% and USDCAD with 5%.

New York is the second largest forex market place. The busiest time is 8am to noon EST. News releases can result in a volatile market.

Sometimes volatility is low in the Tokyo session and sometimes good moves occur. The USDJPY is the most active pair with 78% of the volume followed by EURUSD with 15% and EURJPY with 5%.

Forex History

Forex History

Forex History - The Evolution OF FX Markets



The Gold Exchange and the Bretton Woods Agreement

In 1967, a Chicago bank refused a college professor by the name of Milton Friedman a loan in pound sterling because he had intended to use the funds to short the British currency. Friedman, who had perceived sterling to be priced too high against the dollar, wanted to sell the currency, then later buy it back to repay the bank after the currency declined, thus pocketing a quick profit. The bank’s refusal to grant the loan was due to the Bretton Woods Agreement, established twenty years earlier, which fixed national currencies against the dollar, and set the dollar at a rate of $35 per ounce of gold.

The Bretton Woods Agreement, set up in 1944, aimed at installing international monetary stability by preventing money from fleeing across nations, and restricting speculation in the world currencies. Prior to the Agreement, the gold exchange standard--prevailing between 1876 and World War I--dominated the international economic system. Under the gold exchange, currencies gained a new phase of stability as they were backed by the price of gold. It abolished the age-old practice used by kings and rulers of arbitrarily debasing money and triggering inflation.

But the gold exchange standard didn’t lack faults. As an economy strengthened, it would import heavily from abroad until it ran down its gold reserves required to back its money; consequently, the money supply would shrink, interest rates rose and economic activity slowed to the extent of recession. Ultimately, prices of goods had hit bottom, appearing attractive to other nations, who would rush into buying sprees that injected the economy with gold until it increased its money supply, and drive down interest rates and recreate wealth into the economy. Such boom-bust patterns prevailed throughout the gold standard until the outbreak of World War I interrupted trade flows and the free movement of gold.

After the Wars, the Bretton Woods Agreement was founded, where participating countries agreed to try and maintain the value of their currency with a narrow margin against the dollar and a corresponding rate of gold as needed. Countries were prohibited from devaluing their currencies to their trade advantage and were only allowed to do so for devaluations of less than 10%. Into the 1950s, the ever-expanding volume of international trade led to massive movements of capital generated by post-war construction. That destabilized foreign exchange rates as setup in Bretton Woods.

The Agreement was finally abandoned in 1971, and the US dollar would no longer be convertible into gold. By 1973, currencies of major industrialized nations floated more freely, as they were controlled mainly by the forces of supply and demand. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s, giving rise to new financial instruments, market deregulation and trade liberalization.

In the 1980s, cross-border capital movements accelerated with the advent of computers and technology, extending market continuum through Asian, European and American time zones. Transactions in foreign exchange rocketed from about $70 billion a day in the 1980s, to more than $1.5 trillion a day two decades later.


The Explosion of the Euromarket

A major catalyst to the acceleration of Forex trading was the rapid development of the eurodollar market; where US dollars are deposited in banks outside the US. Similarly, Euromarkets are those where assets are deposited outside the currency of origin. The Eurodollar market first came into being in the 1950s when Russia’s oil revenue-- all in dollars -- was deposited outside the US in fear of being frozen by US regulators. That gave rise to a vast offshore pool of dollars outside the control of US authorities. The US government imposed laws to restrict dollar lending to foreigners. Euromarkets were particularly attractive because they had far less regulations and offered higher yields. From the late 1980s onwards, US companies began to borrow offshore, finding Euromarkets a beneficial center for holding excess liquidity, providing short-term loans and financing imports and exports.

London was, and remains the principal offshore market. In the 1980s, it became the key center in the Eurodollar market when British banks began lending dollars as an alternative to pounds in order to maintain their leading position in global finance. London’s convenient geographical location (operating during Asian and American markets) is also instrumental in preserving its dominance in the Euromarket.

Bombay Stock Exchange

Bombay Stock Exchange

is the oldest stock exchange in Asia. It also has more listed companies than any other stock exchange in the world with 4,800. The building is three tiers of madness ranging from small parking garage-style structure, to rotund dome shaped building, and then ending with a menacing and towering concave skyscraper.

Saudi Stock Exchange

Saudi Stock Exchange

Saudi Arabia's Consultative Council has voted on the Capital Market Law, which provides a legal and regulatory framework for the Saudi stock exchange, the largest stock exchange in the Arab world. Approval of this legislation will serve to accelerate a number of desired economic reforms such as the promotion of foreign and private sector investment, as well as creating an environment of total accountability and transparency for capital-related activities.

Karachi Stock Exchange

Karachi Stock Exchange

By Onlooker
Try hard as they may, Islamabad’s bigwigs are finding it difficult to put a lid on last year’s stock exchange scandal.
The latest news is the discovery that all the relevant financial data relating to the stock market scam that caused US 13 billion loss to small investors has been deleted not only from the records of the stock market and the brokers but also that of the Securities and Exchange Commission of Pakistan (SECP).
Apparently the data was surreptitiously deleted at the SECP shortly after Dr Tariq Hassan, its former chairman, was sacked by Shaukat Aziz in January 2006.
It’s time for a recap.
In March 2005 the share market collapsed. Quite suspiciously the KSE-100 share market index had surged from a figure of 6,218 on 31 December 2004 to a startling high of 10,303 on 15 March 2005. In a short space of two and half months the market had ballooned by 65%.
And then it crashed hitting a low of 6,939 on April 12, 2005.
The financial implosion caused a loss of some Rs. 780 billion - the losers were small middle class investors.
And yes, of course, there were mighty big winners as well. Anyone who had shorted the stock at the time of the crash reaped the windfall. And those who had used the multiplier effect of margin trading would have easily reaped well over 100% on their proffered investments. And so hundreds of billions of rupees were made.
On 18 April 2005 the SECP chairman Dr Tariq Hassan appointed an independent Task Force, headed by the ombudsman Justice Salim Akhtar, a retired judge of the Supreme Court, to investigate the allegations of market manipulation, insider trading and other market abuses which were said to have caused the stock market collapse.
Two months later on 30 June 2005 the Task Force handed over its report to Dr Tariq Hassan, the SECP chairman.
It appears that as soon as Hassan decided to proceed on the recommendations of the Task Force report he struck trouble.
According to Dr. Hassan two senior officials, namely the Prime Minister’s Adviser on Finance, Salman Shah and Minister of State Omar Ayub Khan, began obstructing his efforts to deal with the shady network of brokers. Dr Hassan even divulged that he was pressured by Shaukat Aziz to maintain friendly 'close contacts’ with the leading scamsters of the stock exchange crash.
Fed up with these shenanigans, on 4 August 2005, Dr Hassan submitted his resignation. But it was not accepted by his boss Shaukat Aziz.
Five months later when Dr Hassan had reportedly issued orders appointing forensic investigators to probe the few big brokers responsible for the crash, he was sacked. Importantly, Dr Hassan has stated on record that all the relevant data relating to the crash was in possession of the SECP at the time of his dismissal.
One might have thought that things would have ended there, but it was not to be.
In mid 2006 the National Assembly’s Standing Committee on Finance and Revenue decided to discuss the task force’s report on stock market crash.
On 7 July 2006 protesting opposition members overcame government efforts to prevent Dr Tariq Hassan from appearing before the committee. Once the sacked SECP chairman was given a chance to speak the proverbial shit finally hit the fan (see Blog: Shortcut & Co. Facing Serious Sleaze Allegations).
To protect themselves the Islamabad bigwigs opted for a two-pronged approach to stem this sudden onslaught.
First was an attempt to frighten Tariq Hassan into silence by setting the security agencies upon him – he was followed everywhere, all his phones were bugged. Even the Commando General was brought into the act; Musharraf angrily announced that he held Tariq Hassan “personally responsible for the March 2005 crash”.
And then to placate the opposition (and also to further confuse the issue) it was announced that a US forensic team from Diligence Inc. would be flown in to independently investigate the cause behind the March 2005 crash.
Sources close to this new forensic investigation soon began warning that “The US team now knows more about Dr Hassan than (about) the powerful brokers nominated in the task force’s report on the market crash”.
And at that time even your Blogger made the following comment:The idea, it appears, is to heap all the blame on Tariq Hassan, who now seems destined to play the role of the scapegoat for the whole debacle. Meanwhile, it will be business as usual at the Karachi Stock Exchange and the shady billionaire brokers and the badla providers will undoubtedly continue with their destructive practices.
And so it was to be.
When the US forensic investigator’s report finally came out at the end of November 2006 it was as many had anticipated: a splendid whitewash.
As Dawn reported:The report says that the US team had not found sufficient evidence to support the withdrawal of COT that was ‘ostensibly’ responsible for the fall of market prices. It found no patterns of activity or credible evidence to support the ‘theory’ that certain influential brokers ‘systematically and manipulatively’ inflated and then deflated market prices, reaping substantial profits in the process.
The truth be told is that Diligence Inc were quite unable to get any ‘evidence’ to implicate anyone. There was little or no data left for them to examine. Probably not wishing to offend their generous paymasters the investigators took the hint and did not make any fuss about it.
As we now know that soon after Tariq Hassan was sacked in January 2006 all the data relating to the period under investigation conveniently evaporated into thin air
This was publicly confirmed last week when newspapers such as Dawn splashed the following news on the front page :
Disappearance of data gives twist to KSE saga
National Assembly’s standing committee on finance was informed that data pertaining to the booking of shares were deleted not only from the records of the stock market and the brokers but also that of the Securities and Exchange Commission of Pakistan, leaving no proof for the forensic experts to ascertain anything substantial.
One of the members of last year’s investigative Task Force told Dawn: “There is one big black hole. This (forensic report) is the cover up. You will never get the truth now. But, you can (still) find who covered up the truth”

STOCK EXCHANGES IN THE REGION

STOCK EXCHANGES IN THE REGION

Stock Exchange since 1900

Stock Exchange since 1900

The Australian Stock Exchange (ASX) has grown remarkably over the past 15 years or so. Now that it has fallen well below its peak, the question naturally arises whether this is a major change or simply a reversion to a long term trend. The chart gives some clues.

Pictured above: a stock trader watches his portfolio, and streams live stock quotes to his labtop. I hope he made some money!

Update: You’ll notice 3 portraits in the top left section of the pictures. These men are: Prince Sheikh Saad, the late Sheikh Jaber, and Amir of Kuwait.

When was the Kuwait Stock Exchange Founded?

The State of Kuwait founded the Kuwait stock market exchange (or KSE for short) in 1962.

The KSE is divided into 10 sectors:

• banking
• investment
• insurance
• real estate
• industrial
• services
• food
• non-kuwaities
• mutual funds
• parallel market

If you’re interested in investing in the Kuwait stock market exchange, visit the KSE trading info page. In order to conduct accurate valuations, you need to convert Kuwaiti dinar (KWD), the Kuwait national currency, into US dollars.