currency market trading

1. Q: Which licenses and certificates are the most reliable?

   Category: technical , Asked by: M. U. From United States

   A: The simplest way is to look for a forex site that's certificated and regulated by famous institutes, as NFA. Many top rated forex sites are associated with them. If you verify a forex site is regulated and certificated by NFA, you can be sure that this is certainly counted amongst the most safe sites around. A peachy example for such a forex site is "FOREX.com".

2. Q: any online forex platform that's famous for its soothing technology that you can recommend for me?

   Category: platform , Asked by: J. Whitehead from Bakersfield, United States

   A: We think the best place for your purpose is "AVA FX". Their graphics are great and the program's user interface is truly an attractive one - this "AVA FX" is one of the leading examples of how a forex site should look. Plus, downloading the real trading program is simple. The communication is flowing, it doesn't break off ever in the middle of downloading, and it's easy to get into and get started.

3. Q: what is "camouflage compensation"?

   Category: glossary , Asked by: M. D. From United States

   A: a "camouflage compensation " is Compensation that is granted to upper echelon employees, directors, consultants and related parties that is not fully disclosed in mandatory company filings. In other cases, compensation is fully disclosed, but in such a way that it is very difficult for the average investor to decipher the true value of gross pay compensation. Non-qualified deferred compensation plans, SERPs, stock options, stock appreciation rights and share grants are all potential places where compensation can be hidden from analysts and shareholders. The SEC has proposed new regulations to more completely disclose the full cost of compensation to related parties, consultants, directors and employees.

4. Q: please define a "dow jones STOXX sustainability index"

   Category: glossary , Asked by: H. B. From Austria

   A: A stock index that measures the financial performance of leading European companies as measured by their sustainability practices. The stock universe is the Dow Jones STOXX 600 Index, which captures more than 90% of the aggregate market cap of European-based companies. The STOXX Sustainability Index contains the top 20% of these companies in terms of their aggregate sustainability score as obtained by SAM Group, a Zurich-based research firm. The free float market capitalization-weighted index is reviewed both annually and quarterly; the quarterly reviews focus on share counts and weightings while the annual review incorporates the most recent sustainability scores and industry evaluations. The sustainability indexes aim to capture companies on the leading edge of sustainability practice/reform; the sustainability score that each company receives is based on an intricate weighting system that examines company actions regarding things such as corporate governance, environmental performance, energy efficiency and climate change strategies. The focus of the research (and related company score) is more on long-term sustainability than on short-term company benefits, so the financial performance of the index may underperform other benchmarks such as the Dow Jones STOXX 600 and MSCI Europe Indexes. The index was first published in 2001, and in addition to the base index there are specialized sub-indexes that exclude industries such as alcohol, tobacco, firearms and gambling.

5. Q: please define the "butterfly spread"

   Category: glossary , Asked by: Maeve D. From Netherlands

   A: a "butterfly spread " is An option strategy combining a bull and bear spread. It uses three strike prices. The lower two strike prices are used in the bull spread, and the higher strike price in the bear spread. Both puts and calls can be used. This strategy has limited risk and limited profit.

6. Q: do you know what "miscellaneous tax credits" is?

   Category: glossary , Asked by: Mara D. From Mesquite, United States

   A: A group of less common tax credits that apply to taxpayers in various situations. As with all other tax credits, miscellaneous tax credits are designed to reward and promote certain types of economic activities, such as the purchase of hybrid automobiles or to reward those who have taken appropriate measures to make their homes more energy-efficient. There are several miscellaneous tax credits available, such as the mortgage interest credit, the prior-year alternative minimum tax credit, the foreign tax credit, and the hybrid and electric vehicle credit. Most miscellaneous credits are non-refundable, except for the credit for excess Social Security or railroad retirement withholdings.

7. Q: do you know what "trading book" is?

   Category: glossary , Asked by: Gina F. From Canada

   A: a "trading book " is The portfolio of financial instruments held by a brokerage or bank. The financial instruments in the trading book are purchased or sold to facilitate trading for their customers, to profit from spreads between the bid/ask spread, or to hedge against various types of risk. The trading books for large financial institutions can be worth billions of dollars.

8. Q: Is there any foreign exchange platform that's popular for its fast connection you can refer me to?

   Category: technical , Asked by: H. F. From Netherlands

   A: We believe "GCI" is the place if you want a foreign exchange platform with the best connection. Players are frequently amazed when trying to connect to the playing platform. It's pretty easy to use the trading environment, the communication with the server is usually easy. You will find non of the normal login problems you always see connecting to big servers.

9. Q: please tell me what a "buying hedge" is

   Category: glossary , Asked by: M. Rich from Ireland

   A: A transaction that commodities investors undertake to hedge against possible increases in the prices of the actuals underlying the futures contracts. Also called a long hedge, this particular strategy protects investors from increasing prices by means of purchasing futures contracts. Many companies will attempt to use a long hedge strategy in order to reduce the uncertainty associated with future prices.

10. Q: what is a "law of diminishing marginal returns"?

    Category: glossary , Asked by: H. W. From Saint John??s, Canada

    A: "law of diminishing marginal returns " is A law of economics stating that, as the number of new employees increases, the marginal product of an additional employee will at some point be less than the marginal product of the previous employee. Consider a factory that employs laborers to produce its product. If all other factors of production remain constant, at some point each additional laborer will provide less output than the previous laborer. At this point, each additional employee provides less and less return. If new employees are constantly added, the plant will eventually become so crowded that additional workers actually decrease the efficiency of the other workers, decreasing the production of the factory.