Fundamental Analysis

Fundamental Analysis
The most important and most complicated component of currency dealing is the ability to analyse tendencies of market changes and, respectively, forecast what factors and how will influence currency rates. Price behaviour includes both opportunities of quick gain of profit and possibilities of quick and considerable loss. That’s why correct forecasting of market movements, assessment of events, as well as the understanding of rumours and expectations, is a required component of broker’s or dealer’s work and is a guarantee of his successful activity. There are many factors that influence both, the whole currency market in general and some currencies, in particular.There are two main analysis methods of the market situation: fundamental analysis and technical analysis. The first one assesses the situation from the point of view of political, economic, financial and credit policy. The second one is based on methods of graphic research and analysis based on mathematical principles.Fundamental analysis implies the study of various messages about financial events in the world, about the activity in the political and economic life in both specific countries and in the world community, in general, that can influence the development of the foreign exchange market. Some analysis is done to understand what changes in the currency rates they can cause. Information about the functioning of stock exchanges and of big companies of the type of market-makers, the discount rates of the central banks, the economic and administration policies, the possible changes in the political life of the country, as well as various signs and expectations are found to be important here.Fundamental factors are assessed from two positions, as a rule:
from the point of view of their influence on the official discount rate;
from the point of view of the condition of the national economy of the country.Fundamental factors that influence the FOREX market.Fundamental analysis distinguishes four groups of factors that influence the market directly:
economic;
political;
signs and expectations;
force majeure.Classification of news according to the degree of their expectancy:
accidental and unexpected – usually some news of political and natural origin, more rare economic news (political instability in the country, wars, natural disasters, etc.);
planned and expected – usually news of economic character, more rare – political news.The economic group of factors and their influence on the market are based on the axiom that any currency is a derivative of the economic development of the country and its cost may be regulated with the help of certain economic measures. The economic group of the factors influencing the market can be divided into the following components:
information about the economic development of the country;
trade negotiations;
meetings of the central banks;
any changes in the monetary and credit policy;
meetings of G-7, economic unions or commercial alliances;
speeches of the heads of central banks, heads of governments, distinguished economists concerning the situation of the foreign exchange market, changes in the economic policy, economic situation in the country or their forecasts;
interventions;
neighbouring markets;
speculation.
Fundamental analysis is one of the most complicated parts, and, at the same time, one of the key types of work on the foreign exchange market. It is much more difficult to make fundamental analysis than any other analysis, as the same factors influence the market differently in various conditions or, being decisive, may become utterly insignificant. It is necessary to know the interrelation and mutual influence of two different currencies that reflect the ties between various states, the history of development of currencies, to determine the cumulative result of some economic measures and to establish connection between events that may originally seem to have no connection at all. In addition to some basic and very formal rules, it is required to have considerable work experience at the foreign exchange market.

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FOREXTrader Charts' impressive array of over 18 technical indicators includes simple and exponential Moving Averages, Bollinger Bands, Relative Strength Index (RSI), Parabolic SAR, Stochastics, MACD, GANN Lines, Keltner Channels and Fibonacci studies. Choose from 11 intervals, including 8 intra-day charts. Intra-day chart types include candlestick, line and bar. Daily, weekly and monthly charts also include additional chart types, such as FOREXTrader Charts' unique modal candlestick and modal bar, which show the price most heavily transacted for the current bar's time interval.

eBay: Setting the Business World on Fire

Taqrir Washington Kara Bentley

EBay is one of the world’s largest online auctioneers, offering localized sites in Asia Pacific, Europe and North America. EBay is referred to as the “The World’s Online Marketplace” and has over 200 million users worldwide. There are approximately 105 million listings worldwide, and approximately 6 million listings are added per day. EBay users trade in more than 50,000 categories of goods and services including: collectibles, computers, appliances, furniture, vehicles, equipment and other miscellaneous items. EBay Inc., founded in 1995, owns an array of websites that work along side of eBay.com to strengthen customer satisfaction and convenience. By bringing millions of buyers and sellers together each day, eBay is able to facilitate ecommerce in both the domestic and international community.

Proof of its success, eBay’s financial results for its third quarter 2006 showed record consolidated Q3-06 net revenues of $1.449 billion, representing a growth rate of 31% year over year. Also, in Q3-06, the total value of all successfully closed items on eBay (GMV) was US$12.6bil and eBay users worldwide trade more than $1,590 worth of goods on the site every second. EBay generates revenue from a number of fees such as: fees to list a product, fees when a product sells, and other optional fees. The U.S. based eBay.com for example, charges $020 to $80 per listing as well as 2-8% of the final price. Already having expanded to dozens of countries, the company continues to maximize revenue by increasing international trade within the eBay system.

As many shopaholics will tell you, eBay can be a dangerous place for compulsive buyers. Conversely, eBay has proved to be the key to success for most, especially private business owners who have started using eBay for product sales. Ebay has a global presence in 33 markets, therefore making it easier for individuals and businesses to find the perfect buyer for their product. Customers are equally as enthusiastic and many have decided to bypass live surplus auctions altogether. They instead turn to eBay and other online auction sites for the majority of their purchases.

Other Services

EBay has an assortment of services designed to assist it’s users in any online transactions.
For instance, PayPal was bought by eBay in October 2002 and is now a global leader in online payment solutions for eBay customers and others. PayPal is a quick and easy way for both the buyer and seller to send and receive payments online by allowing payments and money transfers to be made through the internet. Ebay also wants it’s customers to make informed choices on any item they purchase. Shopping.com allows users to do just that. With this price comparison service, purchased by eBay in June 2005, changes in the price of a product that the user seeks to buy is monitored. When the price reaches the predetermined level, the buyer is informed. On the site, eBay.com also provides: Half.com, offering great deals in-stock everyday at low prices; Kijiji, helping users connect to a specific community; and ProStores, allowing users to create their own WEB STORE.

Expanding its reach into the classifieds market, in February 2005, eBay purchased Rent.com, the largest apartment listing service on the internet today. At around the same time, eBay also purchased 25% stake in Craigslist, a leading online classified service. Skype, the world’s fastest growing peer-to-peer voice over IP network, was acquired by eBay in October 2005. It provides users everywhere with a free, unlimited video and voice communication network that is available in 27 different languages. And most recently, Ebay opened its new eBay Express site in the spring of 2006, making shopping faster and easier for United States users. The UK version was later launched in mid October.

EBay Businesses, Skype and Paypal, both grew at an impressive pace in 2006. PayPal had an excellent 3rd quarter in 2006, with net revenues totaling $350 million, up from $247 million in Q3-05. The total number of PayPal accounts also had a high growth rate in Q3-06 with a 41% increase from the previous year. Those accounts helped drive the record Total Payment Volume of $6.7 billion of Q3-05 to $9.1 billion in Q3-06, a 36% increase. Also, the global TVP for PayPal Merchant Services was at a 59% percent increase in Q3-06. In the same quarter, Skype net revenues totaled $50 million, representing a 13% increase from the previous Q2-06. By the end of Q3-06, the number of Skype users had gone up 20% from the previous quarter. "As our results demonstrate, we are executing on our strategy to grow our Marketplaces, PayPal and Skype businesses individually and collectively to deliver greater value to our community of users and to our shareholders" said Meg Whitman, President and CEO of eBay Inc.

The eBay Foundation

Whitman says, “giving back to the community is simply a part of eBay.” In accordance with this mission, eBay founded what is known as the eBay Foundation in 1998. The eBay Foundation is a charitable fund dedicated to making communities grow and prosper through contributions to community organizations. Grants provided by the Foundation are awarded to non-profit groups working on building a stronger community. Having contributed over $8 million to various non-profit organizations, the eBay Foundation is constantly recognized for its efforts. The San Francisco Times named the eBay Foundation as one of the Bay Area’s top corporate philanthropists. And, the Association of Fundraising Professionals Silicon Valley Chapter recently awarded eBay with the Outstanding Corporate Grantmaker Award.

Dealing with Fraud

Online criminals who target sites like eBay are rapidly growing in numbers. After an internal survey showed that online scammers may be negatively affecting the company’s reputation, executives at eBay inc. name security as their top priority for 2007. Last year the company began addressing this issue with more intensity. EBay has now established a program to safeguard members’ identities and the company continues working hard to protect buyers from scammers. EBay also works with law enforcement and government agencies to both, prevent fraud and appropriately resolve any problems that may occur. EBay now offers a number of tools, programs and resources to ensure safe community trade.
For instance, with the feedback system provided by eBay, the buyer and seller of a product have the option of rating each other with a “positive”, “negative”, or “neutral” after every transaction. This method of fraud protection has proven to be somewhat faulty and many complaints have been made due to manipulation of this Feedback system. According to a recent study at the University of California Berkeley, hundreds of eBay users have been artificially magnifying their ratings by buying and selling good feedback.

EBay also provides users with Buyer Protection through either the PayPal Buyer Protection or the eBay Standard Purchase Protection Program. These programs provide a set amount of coverage for items that are not received or items that are not as described in the listing. To help protect against fraudulent purchases, eBay Inc. has established an eBay Security Center which provides guidance on how to safely, buy, sell and pay for items. It also provides information on other government and law enforcement resources. Users can protect their personal accounts using the eBay Toolbar with Account Guard. This program is called the Spoof (Fraudulent) Web Site Protection. With this program the user will receive timely desktop alerts warning them of a site that is a potentially fraudulent, or spoof, Web site. Users are also allowed to conduct online tutorials on spoof email and are then able to report issues to spoof@ebay.com.

EBay claims that less than one-hundredth of one percent of the listings on its Web sit are fraudulent. Even still, users are skeptical and, ironically, some have even gone so far as to use the problem as a way to deceive users. Recently an email claiming that the site is closing because of the incidence of scams and rogue traders. The email, posing as an eBay inquiry, asks the recipient to vote on whether or not they agree with the decision to shut down the site. The recipient is then directed to a Yes or No link were username and password is required. IT specialist from Sophos warns that the email is a hoax designed to steal information from users. Security experts say clicking on the link will allow cybercriminals to hack into user accounts allowing them to make fraudulent purchases or sales. Users beware!

eBay: Leader of the Online Auction

With millions buying and selling online, eBay.com has become the world leader in the online auction field, providing more items and categories than any competitor. Buyers and sellers from across the globe have begun to rely heavily on such internet auction sites for generating business revenue, convenient/inexpensive trading of goods, or simply for a fast and easy way to shop. Even with a single listing on eBay any individuals or small business is able to greatly increase profits.

A wide variety of new auction web site companies have sprouted up in the past year, and each offer similar services. So, how does eBay maintain its role as the head online auction provider? For one, eBay has been around the longest and has expanded to countries across the globe. But, where eBay really got it right was by keeping the focus on bringing the best auction experience to the user in their everyday transactions.

what is forex

The Foreign Exchange Market commonly known as the "FOREX" or "FX" market is the larger financial market in the world. It trades an average volume of 1.9 trillion dollars per day; this is more than three times the combined daily average volume of the stocks and futures markets. About 5% of the daily turnover is from governments, corporations and fund managers doing business with foreign countries that need to exchange one currency for another, and the other 95% is from speculators who are attracted to the profit opportunities that volatile and changing market conditions create. As oppose to the stock and futures market were large traders can affect market behavior, the large volume of the Forex market make it hard to manipulate creating an easier and more stable market for small speculators to trade successfully. A multitude of economic forces impact the world's currencies. Some of the forces at work include interest rate differentials, domestic money supply growth, comparative rates of inflation, central bank intervention and political stability. In times of global uncertainty, some currencies may benefit from perceived "flight-to-safety" status. Or, if one country's economic outlook is perceived as strong by market forces, its currency may be firmer than another country's currency, where economic or political conditions are viewed with caution. In contrast to the world’s stock markets, The FX interbank market is a global network of the world's banks with no centralized location for trading, so it’s traded without the constraints of a central physical exchange. Transactions are instead conducted via telephone or online.

RISK DISCLOSURE

Forex trading has large potential rewards, but also large potential risk. Trading in foreign exchange is speculative and because of the unpredictable nature of the prices of currencies, the purchase or sale of currencies involves high degree of risk that is not suitable for all members of the public. You must be aware of these risks and be willing to understand and accept them in order to invest in the Forex market. Do not trade with money you can't afford to lose. Therefore, funds placed under management should be risk capital funds that if lost will not significantly affect one's personal financial well being.CTFC Rule 4.41 - Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under- or over- compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are design with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.Agreement - The information contained in this site has been compiled in good faith, and in using it, the user agrees that the author and any other entities associated with this site shall not be liable for any direct, indirect, consequential loss arising from this usage, or the use of information and material on the Internet via web links from this site including, but not limited to errors, omissions, defects, interruptions, delays in operation, or transmission, computer viruses, or line failure, to the maximum extent permitted by law.

ADVANTAGES OF THE FOREX MARKET

– Forex is open 24 hours a day.– Forex is the largest financial market in the world.– You can trade with leverage, ranging from 100-to-1 up to 400-to-1. Without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains. – Trade more than 60 currencies with GFT. – No restrictions on shorting, which allows you to enjoy trading opportunities during any market condition.

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