Thursday, 31 January 2013

jQuery Basic Interview Objective Questions and Answers (Part 1)

jQuery Basic Interview Objective Questions and Answers (Part 1)

Here is a small list of 14 jQuery basic interview questions and answers which a web designer and developer must know who is going for technical interview of jQuery, Javascript and AJAX (UI: User Interface). Some of these jQuery interview questions are objective and some are subjective. These jQuery interview questions and answers should be on finger tips of each web designer and developer. Many basic jQuery interview questions are related to CDN (Content Delivery Network) like Google CDN, Microsoft CDN and EdgeCast CDN and some are based on jQuery selectors. Lets have a look at the following list of basic jQuery interview questions and answers.

1. Is jQuery a library for client scripting or server scripting?

jQuery is client scripting library.

2. Is jQuery a W3C standard?

jQuery is not a W3C standard.

3. What are jQuery Selectors?

Selectors are used in jQuery to find out DOM elements. Selectors can find the elements via ID, CSS, Element name and hierarchical position of the element.

4. Does the jQuery html() method work for both HTML and XML documents?

jQuery html() only works for HTML.

5. Which sign does jQuery use as a shortcut for jQuery?

$(dollar) sign.

6. What does $("div") will select?

It will select all the div element in the page.

7. What does $("div.parent") will select?

All the div element with parent class.

8. What is the name of jQuery method used for an asynchronous HTTP request?

jQuery.ajax()

9. What is CDN and what are the advantage of loading jQuery framework from CDN?

Always load your jQuery framework from Google, Microsoft or jQuery CDN(Content Delivery Network). As it provides several advantages.

1. You always use the latest jQuery framework.
2. It reduces the load from your server.
3. It saves bandwidth. jQuery framework will load faster from these CDN.
4. The most important benefit is it will be cached, if the user has visited any site which is using jQuery framework from any of these CDN.

10. Write down the code to load jQuery Framework from Google CDN.

</script>

11. Write down the code to load jQuery framework from Microsoft CDN.

</script>

12. Write down the code to load jQuery framework from jQuery website (EdgeCast CDN).

<script  type="text/javascript" src="http://code.jquery.com/jquery-1.4.2.min.js"></script>

13. How do you load jquery locally when CDN fails?

Below given jQuery code checks whether jQuery is loaded from Google CDN or not, if not then it references the jQuery.js file from your folder. 

</script>

<script type="text/javascript">
if (typeof jQuery == 'undefined')
{
  document.write(unescape("%3Cscript src='Scripts/jquery.1.5.1.min.js' type='text/javascript'%3E%3C/script%3E"));
}
</script>

It first loads the jQuery from Google CDN and then check the jQuery object. If jQuery is not loaded successfully then it will reference the jQuery.js file from hard drive location. In this example, the jQuery.js is loaded from Scripts folder.

14. What is jQuery.noConflict?

jQuery is great library written on top of Java Script and its popularity is increasing day by day.The reason of popularity of jQuery is the plenty of useful, simple and easy to use plugins. But while using jQuery plugins, sometimes we include other libraries like prototype, mootools, YUI etc. The problem comes when one or more other libraries are used with jQuery as they also use $() as their global function and to define variables. This situation is creates conflict as $() is used by jQuery and other library as their global function. To overcome from such situations, jQuery has introduced jQuery.noConflict().

<script src="prototype.js"></script>
<script src="jquery.js"></script>
<script>
     jQuery.noConflict();
     // Use jQuery via jQuery(...)
     jQuery(document).ready(function(){
       jQuery("div").hide();
     }); 
     // Use Prototype with $(...), etc.
     $('someid').hide();
</script>

When .noConflict() is called then jQuery returns $() to its previous owner and you will need to use jQuery() instead of shorthand $() function. In this case, "jQuery" will be used in rest of the code. You won't be able to take advantage of shorthand.

<script src="prototype.js"></script>
<script src="jquery.js"></script>
<script>
     var $j = jQuery.noConflict();
     // Use jQuery via jQuery(...)
     $j(document).ready(function(){
       $j("div").hide();
     }); 
     // Use Prototype with $(...), etc.
     $('someid').hide();
</script>

Why to use Google CDN for jQuery libraries instead of hosting them locally?

Why to use Google CDN for jQuery libraries instead of hosting them locally?

I have seen a lot of websites which call jQuery libraries locally by downloading them to their hard disk instead of using Google CDN (Content Delivery Network) like this:

<script type="text/javascript" src="/js/jQuery.min.js"></script>

This approach has a lot of disadvantages. I will suggest you to use Google CDN (Content Delivery Network) to call jQuery libraries instead of downloading and then calling them. Right approach of calling jQuery libraries from Google CDN is:

</script>

Usind Google CDN provides a lot of advantages like:

1. Decreased Latency

A CDN — short for Content Delivery Network — distributes your static content across servers in various, diverse physical locations. When a user’s browser resolves the URL for these files, their download will automatically target the closest available server in the network.

In the case of Google’s AJAX Libraries CDN, what this means is that any users not physically near your server will be able to download jQuery faster than if you force them to download it from your arbitrarily located server.

There are a handful of CDN services comparable to Google’s, but it’s hard to beat the price of free! This benefit alone could decide the issue, but there’s even more.
 
2. Increased Parallelism

To avoid needlessly overloading servers, browsers limit the number of connections that can be made simultaneously. Depending on which browser, this limit may be as low as two connections per hostname.

Using the Google AJAX Libraries CDN eliminates one request to your site, allowing more of your local content to downloaded in parallel. It doesn’t make a gigantic difference for users with a six concurrent connection browser, but for those still running a browser that only allows two, the difference is noticeable.

3. Better Caching

Potentially the greatest benefit of using the Google AJAX Libraries CDN is that your users may not need to download jQuery at all.

No matter how well optimized your site is, if you’re hosting jQuery locally then your users must download it at least once. Each of your users probably already has dozens of identical copies of jQuery in their browser’s cache, but those copies of jQuery are ignored when they visit your site.
 
However, when a browser sees references to CDN-hosted copies of jQuery, it understands that all of those references do refer to the exact same file. With all of these CDN references point to exactly the same URLs, the browser can trust that those files truly are identical and won’t waste time re-requesting the file if it’s already cached. Thus, the browser is able to use a single copy that’s cached on-disk, regardless of which site the CDN references appear on.

This creates a potent “cross-site caching” effect which all sites using the CDN benefit from. Since Google’s CDN serves the file with headers that attempt to cache the file for up to one year, this effect truly has amazing potential. With many thousands of the most trafficked sites on the Internet already using the Google CDN to serve jQuery, it’s quite possible that many of your users will never make a single HTTP request for jQuery when they visit sites using the CDN.

Even if someone visits hundreds of sites using the same Google hosted version of jQuery, they will only need download it once!

Wednesday, 30 January 2013

Online Forex Currency Trading Risks, Frauds and Scams

Online Forex Currency Trading Risks, Frauds and Scams

Every investment is risky but the risks of loss in trading off-exchange forex contracts are even bigger. That is why once you decide to be the player in this market; you had better realize the risks connected with this product to make suspended decisions before investing.

As with any form gambling, you should never bet more than you can afford to lose. However, the Forex market is is particularly volatile and very difficult to forecast.  This means that there are high risks associated with trading foreign currency.

In forex, you are operating big sums of money, and it is always possible that a trade will turn against you. The Forex trader should know the tools of advantageous and careful trading and minimizing losses. It is possible to minimize the risk but no one can guarantee eliminating it.

Off-exchange foreign currency trading is a very risky business and may not be appropriate for all market players. The only funds that can be used for speculating in foreign currency trading or any kind of highly speculative investments are funds that represent risk capital (e.g. funds you can afford to risk without worsening your financial situation). There are other reasons why forex trading may or may not be a suitable investment.

Although longer term changes in foreign currencies tend to be gradual, currencies are sometimes subject to dramatic shifts over short periods of time.

It is this short-term volatility, combined with the fact that you trade on a margin, that exposes you to the very real risk that you could lose a lot more than you ever wanted to invest.

Although you can reduce your level of risk by using instruments like stop losses, diversifying your trades across a number of currencies and keeping your margins small, you need to be aware that Forex trading is a highly complex business and should not be undertaken lightly.

Online Forex Currency Trading Risks Types

There are risks with forex trading even if you work with a reliable broker. Transactions are unexpected and are up to unsteady markets and political events.

Interest Rate Risk is based on differences between the interest rates in the two countries represented by the currency pair in a forex quote.

Credit Risk is a possibility that one party in a forex transaction may not honor their indebtedness when the deal is closed. This can occur if a bank or financial institution goes bankrupt.

Country Risk is connected with governments that take part in foreign exchange markets by limiting the currency flow. The country risks more risk making transactions with "rare" foreign currencies than with currencies of big countries that let the free trading of their currency.

Exchange Rate Risk depends on the changes in prices of the currency during a trading period. Prices can go down quickly if stop loss orders are not used. There are several ways of minimizing risks. Each dealer should have a trading scheme. For example, one should know when to enter and exit the market, what kind of fluctuations to expect. The main rule every trader should stick to is:

"Don't use money that you can't afford to lose." The key to limiting risk is education, which is necessary for developing successful strategies.

Every forex trader should know at least the main things about technical analysis and reading financial charts. He should also know chart movements and indicators and understand the schemes of chart interpretation.

Stop-Loss Orders

Even the most experienced traders cannot foresee with absolute certainty how the market is going to change. Therefore, one should use these tools to limit losses during each forex transaction.

High Risk Investment

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

History of Online Forex Currency Trading Frauds and Scams

A few years ago, Forex scams were very usual but since then this business has cleaned up. However, it's wise to be cautious and to check broker's background before signing up any documents with him or her. Reliable forex brokers work with big financial institutions such as banks or insurance enterprises and are always registered with official government agencies. In the US, brokers should be registered with the Commodities Futures Trading Commission or should be a member of the National Futures Association. You can also check their background in your local Consumer Protection Bureau and the Better Business Bureau.

There is risk of losing your whole investment!

You will be asked to deposit an amount of money, called the "security deposit" or "margin, with your forex dealer in order to buy or sell an off-exchange forex contract. A small amount of money can let you hold a forex position many times bigger than the value of your account. This is called "gearing" or "leverage. The smaller the deposits related to the underlying value of the contract, the greater the leverage turns out to be. If the price moves in a non-preferable direction, high leverage can bring you large losses compared to your first deposit. That is how a small move against your position may become the reason for a large loss, and even the loss of your entire deposit. If it is noted in the contract with your dealer, you may also be required to pay extra-losses.

The market sometimes moves against you!

It is impossible to foresee, with a 100% guarantee, how exchange rates will move because the forex market is quite unsteady. Changes in the foreign exchange rate between the time you place the trade and the time you close it out influences the price of your forex contract and the future profit and losses related to it.

There is no main marketplace!

The forex dealer determines the execution price, so you are relying on the dealer's honesty for a fair price. As unlike adjusted futures exchanges, in the retail off-exchange forex market there is no main marketplace with lots of buyers and sellers.

You are relying on the dealer's reputation credit reliability
 
There is no guarantee for retail off-exchange forex trades because of a clearing organization. Besides funds deposited for trading forex contracts are not insured and never get a priority in case of bankruptcy. Even customer funds deposited by a dealer in an FDIC-insured bank account are not protected if the dealer faces bankrupt.

There's a risk of the trading system break down!

Sometimes a part of the system fails, if you are using an Internet-based or any electronic system for executing trades. If the system does fail, it can happen when one may not be able to enter new orders, execute running orders, or alter or cancel orders that were entered before. The result of a system failure may be a loss of orders or order priority.

You can become a fraud victim!

Keep away from investment schemes that promise big profit with little risk. To defend your capital from fraud you should carefully examine the investment offer and go on monitoring any investment you make.

Trading Is Very Speculative and Risky

Trading CFDs and Spot FX Contracts is highly speculative, involves a significant risk of loss and is not suitable for all investors but only for those customers who:

a) understand and are willing to assume the economic, legal and other risks involved;
b) are experienced and knowledgeable about trading in derivatives and in underlying asset types; and
c) are financially able to assume losses significantly in excess of margin or deposits because investors may lose the total value of the contract not just the margin or the deposit.

Neither CFDs nor Spot FX Contracts are appropriate investments for retirement funds. CFD and FX transactions are among the riskiest types of investments and can result in large losses.

Customer represents, warrants and agrees that Customer understands these risks, is willing and able, financially and otherwise, to assume the risks of trading CFDs and Spot FX Contracts and that the loss of Customer’s entire Account balance will not change Customer’s lifestyle.

Risks Related to Long CFD positions, i.e. for Purchasers of CFDs

Being long in CFD means you are buying the CFDs on the market by speculating that the market price of the underlying will rise between the time of the purchase and sale. As owner of a long position, you will generally make a profit if the market price of the underlying rises whilst your CFD long position is open. On the contrary, you will generally suffer a loss, if the market price of the underlying falls whilst your CFD long position is open. Your potential loss may therefore be bigger than the initial margin deposited. In addition, you might suffer a loss due to the closing of your position, in case you do not have enough liquidity for the margin on your account in order to maintain your position open.

Risks Related to Short CFD positions, i.e. for Sellers of CFDs

Being short in CFD means you are selling the CFDs on the market by speculating that the market price of the underlying will fall between the time of the purchase and sale. As owner of a short position, you will generally make a profit if the market price of the underlying falls whilst your CFD short position is open. On the contrary, you will generally suffer a loss, if the market price of the underlying rises whilst your CFD short position is open. Your potential loss may therefore be bigger than the initial margin deposited. In addition, you might suffer a loss due to the close of your position, in case you do not have enough liquidity for the margin on your account in order to maintain your position open.

High Leverage And Low Margin Can Lead To Quick Losses

The high degree of “gearing” or “leverage” is a particular feature of both CFDs and Spot FX Contracts. The effect of leverage makes investing in CFDs riskier than investing in the underlying asset. This stems from the margining system applicable to CFDs which generally involves a small deposit relative to the size of the transaction, so that a relatively small price movement in the underlying asset can have a disproportionately dramatic effect on your trade. This can be both advantageous and disadvantageous. A small price movement in your favour can provide a high return on the deposit, however, a small price movement against you may result in significant losses which could exceed the money placed on deposit. Such losses can occur quickly. The greater the leverage, the greater the risk. The size of leverage therefore partly determines the result of the investment.

Margin Requirements

Customer must maintain the minimum margin requirement on their open positions at all times. It is Customer's responsibility to monitor his/her Account balance. Customer may receive a margin call to deposit additional cash if the margin in the account concerned is too low. Safecap has the right to liquidate any or all open positions whenever the minimum margin requirement is not maintained and this may result in Customer’s CFDs or Spot FX Contracts being closed at a loss for which you will be liable.

Spread

The difference between Our bid price and our ask price is “Our Spread”. Our Spreads are set in our absolute discretion, since we are acting as market maker, and any changes are effective immediately. Information in relation to Our Spread, leverage, rollover fees and trading hours for each Market is stated in CFD Trading Conditions and FX Trading Conditions pages of our website.

Cash Settlement

Customer understands that CFD and Spot FX Contracts can only be settled in cash and the difference between the buying and selling price partly determines the result of the investment.
Conflicts of Interest

Safecap is the counterparty to all Transactions entered into under the Customer Agreement and, as such, Safecap’s interests may be in conflict with yours. Our conflicts of interest policy is available at our website.

OTC Transactions

When trading CFDs or Spot FX Contracts with us, such transactions will not be executed on a recognized or designated investment exchange and are known as OTC transactions. All positions entered into with us must be closed with us and cannot be closed with any other entity. OTC transactions may involve greater risk than investing in on-exchange contracts because there is no exchange market on which to close out an open position. It may be impossible to liquidate an existing position, to assess the value of the position arising from an OTC transaction or to assess the exposure to risk. Bid prices and ask prices may not be quoted by us, based on best execution policies applicable in the market. There is no central clearing and no guarantee by any other party of Safecap’s payment obligations to the Customer, thus Customer is exposed to credit risk with Safecap. Customer must look only to Safecap for performance of all contracts in Customer’s account and for return of any margin or collateral.

Prices, Margin And Valuations Are Set By Safecap And May Be Different From Prices Reported Elsewhere.

Safecap will provide prices to be used in trading, valuation of Customer positions and determination of Margin requirements in accordance with its Trading Policies and Procedures and Market Information Sheets . The performance of your CFD or Spot FX Contract will depend on the prices set by Safecap and market fluctuations in the underlying asset to which your contract relates. Each underlying asset therefore carries specific risks that affect the result of the CFD concerned.

Our prices for a given market are calculated by reference to the price of the relevant underlying asset which we obtain from third party external reference sources or exchanges. For our CFD and Spot FX Contracts, we obtain price data from wholesale market participants. Although Safecap expects that these prices will be reasonably related to prices available in the market, Safecap’s prices may vary from prices available to banks and other market participants. Safecap has considerable discretion in setting and collecting margin. Safecap is authorized to convert funds in Customer’s account for margin into and from such foreign currency at a rate of exchange determined by Safecap in its sole discretion on the basis of then-prevailing money market rates.

Rights to Underlying Assets

You have no rights or obligations in respect of the underlying instruments or assets relating to your CFDs or Spot FX Contracts. The Customer understands that CFDs can have different underlying assets, such as stocks, indices, currencies and commodities, as specified in CFD Trading Conditions and FX Trading Conditions pages of our website.

Currency Risk

Investing in Spot FX Contracts and CFDs with an underlying asset listed in a currency other than your base currency entails a currency risk, due to the fact that when the CFD or Spot FX Contract is settled in a currency other than your base currency, the value of your return may be affected by its conversion into the base currency.

One Click Trading And Immediate Execution

Safecap’s Online Trading System provides immediate transmission of Customer’s Order once Customer enters the notional amount and clicks “Buy/Sell.” This means that there is no opportunity to review the Order after clicking “Buy/Sell” and Market Orders cannot be cancelled or modified. This feature may be different from other trading systems you have used. Customer should utilize the Demo Trading System to become familiar with the Online Trading System before actually trading online with Safecap. Customer acknowledges and agrees that by using Safecap’s Online Trading System, Customer agrees to the one-click system and accepts the risk of this immediate transmission/execution feature.

Telephone Orders And Immediate Execution

Market Orders executed over the telephone through the Safecap Trading Desk are completed when the Safecap telephone operator says “deal” or “done” following Customer’s placing of an Order. Upon such confirmation of the telephone operator, Customer has bought or sold and cannot cancel the Market Order. By placing Market Orders through the Safecap Trading Desk, Customer acknowledges and agrees to such immediate execution and accepts the risk of this immediate execution feature.

Safecap Is Not An Adviser Or A Fiduciary To Customer

Where Safecap provides generic market recommendations, such generic recommendations do not constitute a personal recommendation or investment advice and have not considered any of your personal circumstances or your investment objectives, nor is it an offer to buy or sell, or the solicitation of an offer to buy or sell, any Foreign Exchange Contracts or Cross Currency Contracts. Each decision by Customer to enter into a CFD or Spot FX Contract with Safecap and each decision as to whether a transaction is appropriate or proper for Customer, is an independent decision made by the Customer. Safecap is not acting as an advisor or serving as a fiduciary to Customer. Customer agrees that Safecap has no fiduciary duty to Customer and no liability in connection with and is not responsible for any liabilities, claims, damages, costs and expenses, including attorneys’ fees, incurred in connection with Customer following Safecap’s generic trading recommendations or taking or not taking any action based upon any generic recommendation or information provided by Safecap.

Recommendations Are Not Guaranteed

The generic market recommendations provided by Safecap are based solely on the judgment of Safecap’s personnel and should be considered as such. Customer acknowledges that Customer enters into any Transactions relying on Customer’s own judgment. Any market recommendations provided are generic only and may or may not be consistent with the market positions or intentions of Safecap and/or its affiliates. The generic market recommendations of Safecap are based upon information believed to be reliable, but Safecap cannot and does not guarantee the accuracy or completeness thereof or represent that following such generic recommendations will reduce or eliminate the risk inherent in trading CFDs and/or Spot FX Contracts.

No Guarantees Of Profit

There are no guarantees of profit nor of avoiding losses when trading CFDs and Spot FX Contracts. Customer has received no such guarantees from Safecap or from any of its representatives. Customer is aware of the risks inherent in trading CFDs and Spot FX Contracts and is financially able to bear such risks and withstand any losses incurred.

Customer May Not Be Able To Close Open Positions

Due to market conditions which may cause any unusual and rapid market price fluctuations, or other circumstances, Safecap may be unable to close out Customer’s position at the price specified by Customer and the risk controls imposed by Safecap might not work and Customer agrees that Safecap will bear no liability for a failure to do so.

Internet Trading

When Customer trades online (via the internet), Safecap shall not be liable for any claims, losses, damages, costs or expenses, caused, directly or indirectly, by any malfunction, disruption or failure of any transmission, communication system, computer facility or trading software, whether belonging to Safecap, Customer, any exchange or any settlement or clearing system.

Telephone Orders

Safecap is not responsible for disruption, failure or malfunction of telephone facilities and does not guarantee its telephone availability. For the avoidance of doubt, Customer is aware that Safecap may not be reachable by telephone at all times. In such cases Customer shall place his/her order through other means offered by the Company.

Quoting Errors

Should a quoting error occur (including responses to Customer requests), Safecap is not liable for any resulting errors in account balances and reserves the right to make necessary corrections or adjustments to the relevant Account. Any dispute arising from such quoting errors will be resolved on the basis of the fair market value, as determined by Safecap in its sole discretion and acting in good faith, of the relevant market at the time such an error occurred. In cases where the prevailing market represents prices different from the prices Safecap has posted on our screen, Safecap will attempt, on a best efforts basis, to execute Transactions on or close to the prevailing market prices. These prevailing market prices will be the prices, which are ultimately reflected on the Customer statements. This may or may not adversely affect the Customer’s realized and unrealized gains and losses.

Compensation

Safecap participates in the Investor Compensation Fund for clients of investment firms regulated in the Republic of Cyprus. Customers will be entitled to compensation under the Investor Compensation Fund where we are unable to meet our duties and obligations arising from your claim. Any compensation provided to you by the Investor Compensation Fund shall not exceed twenty thousand Euro (20.000). This applies to your aggregate claims against us.

How does Online Forex Currency Trading Work?

How does Online Forex Currency Trading Work?

We explain the basics so you have all the information you need to start trading currency on the Forex market.

On the Forex market the value of one particular currency is always quoted as relative to another (like pounds and dollars), as one currency weakens the other will grow in strength. It is this logic that lies at the heart of forex trading and part of what makes it so popular as theoretically there is always money to be made somewhere.

Currency is always traded in pairs such as EUR/GBP (Euro/Great British Pound). The first currency in the pair is known as the ‘counter’ currency and the second, the ‘base’ currency.

The idea is to buy one currency and sell the other, hopefully making a profit when its value either increases or decreases.

Forex trades are made in incremental lots starting at 10,000 and rising to a maximum of 100,000 in your chosen currency. These lots represent the size of your bet or ‘position’, although they don’t represent the full value of your trade. Instead you deposit a percentage of your ‘position’ in an account which is known as the ‘initial margin ’.

The initial margin you will be required to deposit varies from broker to broker, but typical figures are between 1 and 2.5% of the position . This means that if your position totalled £20,000 and your initial margin was 1% then you would be required to keep £200 in your account. However, you should be aware that in reality your initial margin may have to be as high as 5% or 10% if you incurred a particularly heavy loss.

It's important to realise that by trading on margin, you are at risk of losing more than your initial investment. Bear in mind, that the smaller the margin you trade on, the more you will lose if the market turns against you.

Forex Spread Betting

As the name implies, Forex spread betting is basically a bet on whether a currency will rise or fall over a certain period of time. Typically the bet is placed on the number of ‘points’ that the currency moves by.

For example: if you place a £2 bet on a currency that moves by 14 points in your favour over a set period of time then your return will be £28.

Unlike dealing in stocks and shares, spread betting on Forex is classified as gambling and thus is exempt from both tax duty and UK capital gains tax.

Forex CFDs

Another way to trade on currency movements is through the use of Contracts for Difference or CFDs.

CFDs work in a similar way to spread betting, in that they are agreements to pay out the difference between a start and an end price.

CFDs allow you to trade in currency without having to actually buy it, although you will be required to pay between 10 and 25% of the actual value of the currency you trade. However, unlike spread betting you will have to pay capital gains tax on any money that you make.

How to find the Best Online Forex Currency Trading Platform and Account?

How to find the Best Online Forex Currency Trading Platform and Account?

Whether you want to dabble in the foreign exchange markets or are a hardened forex trader, getting the best forex trading platform is essential for maximising your profits. Here’s how to compare forex currency trading accounts to get the best package.

If you want to start trading currencies your first step will be to look for the best forex trading online account possible – here's what you need to consider before applying for a forex account.

What type of account is for you?

Choosing a forex trading online account is partly based on picking an account that will allow you to invest in the way you want, and partly based on finding the account that will let you trade for less.

There are a number of different types of forex account, including spread betting, trading accounts and CFDs; knowing which is the right account for you is vital before you start comparing forex accounts.

If you want to trade in a particular currency market then it also makes sense to exclude forex currency trading platforms that don’t include your chosen currency.

The vast majority of accounts will include all the major international currencies, but if you want to trade in a smaller regional currency this may be more of an issue.

How you can trade?

More and more people want to trade on the go, be it online or from their mobile phone.

So making sure your find a forex trading account that allows you to manage your trades the way you want to, be it online, from your mobile or by phone is essential.

If you are looking to practise successful forex trading without risking our own money then a forex account offering virtual trading platform should also be top of your list.

Once you’ve decided how you want to manage your forex trading account you can eliminate the forex platforms that don’t meet your needs.

Check the fees

Aside from any losses, the cost of trading forex online will largely depend on the fees charged by your forex trading account.

Even if you find an account that offers you all the latest trading features or recommendations on how to trade forex, if all your profits are eaten up by fees it’s unlikely to be the best choice.

Check exactly what you’d have to pay per trade, any monthly account fees or commission rates and opt for the account that gives you the best value for money overall.

However, before you deposit your savings in any forex trading account remember that more than you initial deposit could be at risk if you incur heavy losses.

How to find Best Online Forex Trading Platforms?

How to find Best Online Forex Trading Platforms?

It’s never been easier to profit from the foreign exchange (forex) markets. With trillions of dollars of currency traded on a daily basis you can now access forex trading online through hundreds of brokers.

But how does online currency trading work? And what should you look for when you compare online forex trading accounts?

How do you trade forex online?

Online currency trading involves you using your internet based forex account to predict whether a value of a currency will strengthen or weaken in relation to another currency. If you predict correctly then you'll profit, get it wrong and you'll incur a loss.

When you trade forex online, you effectively buy one currency and sell another so, when trading currency online, traders have to select a ‘currency pair’.

For example, you might buy the US dollar against the Japanese yen anticipating that the dollar will increase in value relative to the yen. If the dollar does rise relative to the yen during the period of your trade, you will make a profit. If it falls in value relative to the yen, you'll incur a loss.

The most commonly traded currencies in the world are the euro (EUR), British pound (GBP), US dollar (USD) and Japanese yen (YEN).

One of the main advantages of online forex trading is that you can trade ‘on margin’. This means that you can open a position far in excess of the capital in your forex account.

For example, if you wanted to trade £50,000 on the GBP/USD currency pair, you would be required to have just £1,000 of capital at 2% margin.

However, if the forex market moved against you you would need to have the full amount, plus any additional losses, availble to settle your trade.

What to compare when you’re looking for the best online forex trading platform.

If you want to trade forex online then you’ll need a dedicated forex account with a broker.

There are four main factors you should consider when you’re looking for the best online forex trading platform:

1. What type of online currency trading account it is
2. The ‘spreads’ charged by the broker
3. The range of currencies on offer
4. How the broker lets you manage your account

Firstly, you should establish exactly what sort of account you want. There are different ways to trade currencies online including ‘contracts for difference forex trading’ (CFDs), spread betting forex and traditional trading. Think about how you want to trade forex and make sure you get an account that allows you to do this.

Secondly, it pays to compare the ‘spreads’ quoted by each broker for the currency you want to trade on. The ‘spread’ is the difference between the buy and sell price of the currency. Generally speaking, the best online currency trading accounts have a narrow spread as this is where the forex brokers take their profit.

Thirdly, there's no point opening an forex account that doesn't provide access to the currencies you want to trade on. So it's important to check what's on offer before you apply.

While most forex brokers will offer access to the most popular currencies, if you want to go for something a little more exotic then your options are likely to be more limited.

Finally, you should establish how you can manage your account. The best online forex trading platform will offer a range of ways to make trades and monitor your account.

Real time trading online should be an essential requirement while it’s also useful if a broker offers a mobile service that lets you manage your currency trades on the move.

Tuesday, 29 January 2013

Best Free Online Forex and Currency Trading Websites and Companies

Best Free Online Forex and Currency Trading Websites and Companies

In this detailed article on online forex and currency trading, we will cover a lot of basic points which you should know. There are a lot of online websites and companies which will help you in forex and currency trading. But before forex trading, you must know some basic things about online forex and currency trading. We will discuss some basic terminologies used in online forex and currency market later in this article.

What is Online Forex Currency Trading Market?

The foreign exchange online market or forex market as it is often called is the online market in which currencies are traded. Currency Trading is the world’s largest market consisting of almost $2 trillion in daily volume and as investors learn more and become more interested, the market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.

Currency trading is the act of buying and selling international currencies. Very often, banks and financial trading institutions engage in the act of currency trading. Individual investors can also engage in currency trading, attempting to benefit from variations in the exchange rate of the currencies. The currency market, (FOREX) market is the biggest and the fastest growing market in the world economy. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover. Every day more than U.S. $3 trillion in currencies change hands in a highly professional interbank market, in which electronic trading platforms link currency traders from banks across the world directly. FX markets are effectively open 24 hours a day thanks to global cooperation among currency traders. At the end of each business day in Asia, traders pass their open currency positions on to their colleagues in Europe, who – at the end of their business day – pass their open positions on to American traders, who just begin their working day and pass positions on to Asia at the end of their business day. And there, the circle begins anew. This makes FX truly global and very liquid.

Economic variables which affect foreign exchange market

Interest rates, inflation, and GDP numbers are the main variables; however other economic indicators such as unemployment rate, bop, trade deficit, fiscal deficit, manufacturing indices, consumer prices and retail sales amongst others. News and information regarding a country's economy can have a direct impact on the direction that the country's currency is heading in much the same way that current events and financial news affect stock prices, hence the importance of economic factors. The following eight economic factors will directly affect a currency's movements in the Forex market. Interest rates, inflation, and GDP numbers are the main variables; however other economic indicators such as unemployment rate, bop, trade deficit, fiscal deficit, manufacturing indices, consumer prices and retail sales amongst others.
News and information regarding a country's economy can have a direct impact on the direction that the country's currency is heading in much the same way that current events and financial news affect stock prices, hence the importance of economic factors.

Online Forex Currency Trading Basics

The foreign exchange market is the term given to the worldwide financial market which is both decentralized and over-the-counter, which specializes in trading back and forth between different types of currencies. This market is also known as the Forex market. In recent times, both investors and traders located all around the world have begun to notice and recognize the foreign exchange market as an area of interest, which is speculated to contain opportunity.
However, before considering treading these waters, it is important to first understand how transactions are conducted within the foreign exchange market. It is also necessary to first explain what the basics are of trading foreign currency. Failure to fully and completely understand this art prior to journeying off into this market would render a person lost in a matter of minutes, just where they would never expect it. Thus, this article has been presented, intending to explain currency trading basics thoroughly.

What is traded within the foreign exchange market?

The one instrument that foreign exchange market investors and traders constantly utilize are currency pairs. This is a term used to describe what the rate of exchange for one currency is over another currency. In the whole of the market, the following are the currency pairs that of which are traded most often:

EUR / USD – Euro
GBP / USD – Pound
USD / CAD – Canadian Dollar
USD / JPY – Yen
USD / CHF – Swiss Franc and
AUD / USD – Aussie

In the whole of the foreign exchange market, the previously listed currency pairs generate up to 85% of the volume.

If a trader ends up going long or goes ahead and buys the Euro, he or she is also, at the same time, buying Euro and selling the United States Dollar. In the event that this same trader ends up going short or goes ahead and buys the Aussie, he or she will also, at the same time, be selling the Aussie and purchasing the United States Dollar.

In each currency pair, the former currency is the base currency, where the latter currency is typically in reference to the quote or the counter currency. Each pair is generally expressed in units of the quote or the counter currency that of which are needed in order to receive a single unit of the base currency.

To illustrate, if the quote or the price of a EUR / USD currency pair is 1.2545, this would mean that one would require 1.2545 United States Dollars in order to receive a single Euro.

Bid / Ask Spread

It is common for any currency pair to be quoted with both a bid and an ask price. The former, which is always a lower price than the ask, is the price at which a broker is ready and willing to buy, which is the price at which the trader should sell. The ask price, on the other hand, is the price at which the broker is ready and willing to sell, meaning the trader should jump at that price and buy.

To illustrate, if the following pair were provided as such:
EUR / USD 1.2545/48 OR 1.2545/8

Then the bidding price is set for 1.2545 with the ask price set to 1.2548.

Pip

The minimum incremental move that of which is made possible by a currency pair is otherwise known as a pip, which simply stands for price interest point. For example, a move in the EUR / USD currency pair from 1.2545 to 1.2560 would be equivalent to 15 pips, whereas a move in the USD / JPY currency pair from 112.05 to 113.05 would be equivalent to 105 pips.

What is Margin?

Margin is a performance bond that insures against trading losses. Margin requirements in the FX marketplace allow you to hold positions much larger than the asset value of your account. Trading with Forex Capital Management includes a pre-trade check for margin availability, the trade is executed only if there are sufficient margin funds in your account. The Forex Capital Management trading system calculates cash on hand necessary to cover current positions, and provides this information to you in real time. If funds in your account fall below margin requirements, the system will close all open positions. This prevents your account from falling below your available equity, which is a key protection in this volatile, fast moving marketplace.

Initial margin

The amount that must be deposited in the margin account at the time a futures contract is first entered into is known as initial margin.

Marking-to-market: In the futures market, at the end of each trading day, the margin account is adjusted to reflect the investor's gain or loss depending upon the futures closing price which is known as marking-to-market.


Margin Trading (Leverage)

In other financial markets, it would generally be required to have the full deposit of the amount that of which is traded. However, in the foreign exchange market, all that of which is required would be a margin deposit, with the remainder being granted by the broker.

Some brokers will provide leverage that will rise up to 400:1. In essence, this means only 1/400 in balance is required to open a position, or .25%. The majority of brokers, however, will only offer 100:1, meaning 1% is required in balance in order to open a position.

A typical lot size within the foreign exchange market is roughly $100,000 United States Dollars.
When a trader would desire obtaining a long lot within the EUR / USD currency pair, where the leverage amounts to about 100:1, in order to open such a position would require $1,000 United States Dollars in balance, or 1%.

It is not recommended, of course, to open such a position when the trading balance retains such limited funds. In the event that the trade should go against the trader, the broker will close the position. This will bring the focus onto the next term.

Margin Call

In the event that the balance of a trading account should end up falling below the maintenance margin, which is the capital required to open a position (1% in a 100:1 leverage, 2% in a 50:1 leverage, so on and so forth), a margin call will occur. At the moment that this margin call occurs, the broker will either sell off all of the trades or buy back in the event of short positions. This will theoretically leave the trader with the maintenance margin.

Margin calls generally occur in the event that money management is not applied in a proper manner.

Spot price

The price at which a currency trades in the spot market. In the case of USD/INR, spot value is T + 2.

Futures price

The price at which the futures contract trades in the futures market.

Contract cycle

The currency futures contracts on the SEBI recognized exchanges have one-month, two-month, and three-month up to twelve-month expiry cycles. Hence, these exchanges will have 12 contracts outstanding at any given point in time.

Final settlement date

The last business day of the month will be termed the Value date/ Final Settlement date of each contract.

Expiry date

It is the date specified in the futures contract. All contracts expire on the last working day (excluding Saturdays) of the contract months. The last day for the trading of the contract shall be two working days prior to the final settlement date or value date.

Contract size

In the case of USD/INR it is USD 1000; EUR/INR it is EUR 1000; GBP/INR it is GBP 1000 and in case of JPY/INR it is JPY 100,000. ( Ref. RBI Circular: RBI/2009-10/290, dated 19th January, by which RBI has allowed trade in EUR/INR, JPY/INR and GBP/INR pairs.)

Basis

Basis can be defined as the futures price minus the spot price. In a normal market, basis will be positive. Futures prices normally exceed spot prices.

Cost of carry

The relationship between futures prices and spot prices can be summarized in terms of what is known as the cost of carry. This measures (in commodity markets) the storage cost plus the interest that is paid to finance or ‘carry’ the asset till delivery less the income earned on the asset. For currency derivatives carry cost is the rate of interest.
  
A foreign exchange deal

Its always been done in currency pairs, for example, US Dollar – Indian Rupee contract (USD–INR); British Pound – INR (GBP-INR), Japanese Yen – U.S. Dollar (JPYUSD), U.S. Dollar – Swiss Franc (USD-CHF) etc. Some of the liquid currencies in the world are USD, JPY, EURO, GBP, and CHF and some of the liquid currency contracts are on USD-JPY, USD-EURO, EURO-JPY, USD-GBP, and USD-CHF.

What are “short” and “long” positions?

Short positions are taken when a trader sells currency in anticipation of a downturn in price. Making this move allows the investor to benefit from a decline. Long positions are taken when a trader buys a currency at a low price in anticipation of selling it later for more. Making these moves allows the investor to benefit from changing market prices. Remember! Since currencies are traded in pairs, every forex position inevitably requires the investor to go short in one currency and long in the other.

What are the mechanics of a foreign exchange market trade?

To illustrate an example, after extensive analysis, a trader concludes it is likely for the British pound to rise in price. This trader decides it is worth going long and risking 30 pips, intending to wind up being rewarded with 60 pips. In the event that the market goes against this trader�s decision, they will end up losing 30 pips. However, should the market go as intended, they will gain 60 pips.

The British pound has a quote that is precisely 1.8524/27, 4 pips spread. The trader in question will go long at 1.8530, or ask. Once the market either reaches the target or the risk point, the trader will need to sell it at the bid price. To make 40 pips, the profit level would need to be 1.8590. Should the target be hit by the market, then the market has run 64 pips. Otherwise, the market will have run 30 against.

As one may have gathered at this point, it is generally a very good idea in order to fully understand the basics of currency trading, from the very basic concepts to the more complex issues, before deciding to tread the waters of the foreign exchange market. Make sure every single aspect of the subject is mastered, including trading psychology, trade and risk management, as well as everything else, prior to making the decision to opening a live trading account.

What is Online Stock / Share Trading?

What is Online Stock / Share Trading?

In this article on online stock or share trading, we will discuss very basic things about online stock or share trading like:

1. What is Online Stock / Share Trading?
2. Who is Stock/Share Broker? What are various responsibilities of a good share broker?
3. What is Demat Account. What is the requirement of Demat Account for Online Share Trading?
4. What are the various benefits of Online Share Trading?
5. How to buy and sell shares online?
6. What are the various precautions to take while Online Share Trading?
7. What are the various sources from where you can collect information about Online Share Trading?

1. What is Online Stock / Share Trading?

Online Share Trading is buying and selling shares via Internet. With online share trading, in most cases customers access a brokerage firm's website through their regular Internet Service Provider. Once there, customers may consult information provided on the website and log into their accounts to place orders and monitor account activity.

2. Who is a Stock/Share Broker? What are various responsibilities of a good share broker?

A stock broker or a share broker is a person who is an expert in share markets. He keeps himself updated with the latest fluctuations of the market. He takes a certain amount of fee from a person who is interested to invest in the share market. He has a very big responsibility as he is the one guiding the client to invest his / her money. The stock broker or a share broker would be responsible for the following

A) Guide the person accordingly.
B) Keep himself updated with the market
C) Guide his clients as to where they can invest their money and get good returns.
D) He should also guide when the client should withdraw his money and how to reinvest the same money.
E) He needs to be honest, trustworthy and also be understanding towards the client.
F) He also needs to help his client to open the necessary accounts needed for stock and share trading.
G) A broker should also be in a position to get new clients  and build a good relationship with them.
H) He is also responsible to execute the orders given to him by the client in regards to the investment.
I) A stock broker is a person who is highly trained and knows the tricks of the trade in stocks. He is like a bridge between the client and the stock market. In a way you can say he is like an employee for his clients and he needs to execute the orders given by the customer.

3. What is Demat Account. What is the requirement of Demat Account for Online Share Trading?

It is necessary to have a demat account for trading in share market. We provide you complete process and guidance for share market. You can trade online following a simple procedure. It is must to have a trading account or demat account with authorized stock broking firm or with a bank. You will get a unique username and password for your trading account. Shares bought by you online will be kept in your demat account. You can operate this demat account online from anywhere in the world.  Just like other trading terminologies, it is important to choose the best broker. You could see a numbers of brokers in the market. Choose wisely and make sure that they have reliable trading history.

4. What are the various benefits of Online Share Trading?

Online share trading is taking place in the changing business world rapidly. Today online share trading has become very easy for investors. You can trade share online on just one click. You can buy or sell the shares online comfortably sitting at your homes, offices or else anywhere in the world. It saves your time from visiting stock exchange or brokers to trade or for the technical analysis. In short online share trading has following advantages:

A) Buying shares online is safe and convenient.
B) Reduces paper work
C) Easy and comfortable to access from anywhere in the world
D) Trade with live price in stock market

5. How to buy and sell shares online?

Online buying of shares is very easy. There are some simple steps to follow for people who want to buy shares first time.

A) Choose best stock broker: A stock broker is like a consultant who is expert into stock market and is authorized. Stock brokers have deep knowledge of the market as they keep on doing the research work and can guide to buy shares for the best benefits.

B) Open demat and trading account: To buy shares you need to have your own demat and trading account. Demat account hold securities which you buy. It can be open through financial brokers. Trading account is required to buy or sell shares. A bank account is also required to carry out financial transactions with the trading account in which the money is credited and debited on purchase and sell of shares.

C) Buying and selling shares: When an investor wants to buy or sell a share, he has to login the trading account software with account details and password and selects which share is to buy or sell, define the no. of shares, company name and the price at which he wants to buy or sell. At the desired price is reached, this trade gets executed. The amount will be debited or credited from the Bank account and the shares are debited or credited into the demat account.

6. What are the various precautions to take while Online Share Trading?

Online share trading tips are useful for one and all, starting from an online stock trading beginner to an active online stock trader. All the good brokerage firms give out intraday calls, long term calls, short term calls, derivative trading strategies as well as other online stock trading tips free to their clients as part of their quality advisory services.

A) Use the right stock broker - To get the right broker, compare various stock brokers in terms of online stock trading fees because high brokerage can eat into your valuable profits.

B) Learn from stock market history - Not knowing stock market history is a major handicap. Remember to look at historical data in line with stock market advice provided by your service provider.

C) Do not panic when the stock market is down - Going against the herd takes courage, but that courage pays off. Stocks are generally more attractive when no one else wants to buy them. You will do better as a stock market investor if you seek out bargains in parts of the stock market that everyone else has forsaken.

D) Rely on company valuations - The only reason you should ever buy a stock is that you think the business is worth more than it's selling for - not because you think a greater fool will pay more for the stocks a few months later.

7. What are the various sources from where you can collect information about Online Share Trading?

Online stock trading is now a popular way of creating wealth. But one needs to possess great deal of online stock trading information in order to become a successful online stock trader. With the emergence of internet in a big way, there are many online sources of getting quality information on online stock trading. Few of them are:

A) E-books on online stock trading- You can download the e-books and learn about stock market basics, which can prove very useful for online stock trading for beginners.

B) Free newsletters - You can register on online stock trading sites and subscribe to newsletters for regular updates on stock markets. Newsletters come generally on daily, weekly or monthly basis.

C) Various financial websites - Many financial websites provide knowledge on stock markets and online stock trading information.

D) Various stock trading forums- You tend to learn a lot from trading forums as the online stock traders share their first hand experiences. You should also participate in the discussions in order to build up on your confidence.

E) Online stock trading tutorials - Many broker sites provide online tutorials to help you understand stock markets and online share trading.