Forex Newbie Questions

[cv6vb10]

Hello,

I currently day trade the US stock market(Naz100 mostly) but I’m looking to start trading the forex markets(USD/JPY and/or EUR/USD).

When trading stocks, I make it a rule to be back to cash before the most important economic numbers are released at 8:30am or 10am EST (or 2:15pm EST for rate announcements).

What economic reports/news have the biggest knee-jerk effect on the USD/JPY prior to the asian market open or during its most active times?

What economic reports/news have the biggest knee-jerk effect on the EUR/USD prior to the Eurpean market open or during its most active times?

Where is the a good place to find a daily schedule of the important economic numbers as they relate to each market opening?

My goal is to avoid being in a trade when these economic numbers are released.

Also, is GFT a good broker? I have been demo-ing their software platform (FX2) and I like it so far.

Any comments would be appreciated.

Thanks in advance!

Matt

[FXSoros]

Nonfarm Payrolls -look out for that data

and it is DB2 not FX2

Best

[cv6vb10]

thanks for the reply. i'll be sure to keep an eye out for the non-farm payrolls.

hmm. the software im demo-ing from GFT says Dealbook FX2.

overall, i like it but im still trying to figure out why it changed the price at which at entered my last trade.
i entered EUR/USD at 1.3025 and wrote it down, set my stops above and below, logged out, came back an hour later and it now says i entered at 1.3011.

regards

[jtv1019]

What time did you check back on your position?

The change in price could be reflected as your "new" position due to rollover. The Dealbook software will roll over positions into the next trading day at around 3P.M. central time. You will be able to tell that it is a roll if your UPL (unrealized p/l) show a value.

example:
(just using short as example, you didn't say which way you entered the market)

You short market at 1.3025. You then said when you came back to the platform you displayed 1.3011. Your UPL would display a profit of $140.00 (if you only had on 1 contract) and you would still have a short position, only it would be from your roll price of 1.3011. The complete opposite if you were long the market (you would show a loss of $140.00 in UPL).

Hope that helps.

[cv6vb10]

your right jtv, i entered the short position before 3pm cst and checked it again after 3pm cst.

does that mean it automatically took the profit at 3pm cst even though my target was not reached?

thanks alot for the clarification

[ERA]

''What economic reports/news have the biggest knee-jerk effect on the USD/JPY prior to the asian market open or during its most active times?''

Hi cv6vb10,

This is a tough one, I think important things to watch regarding JPY, is the price of Crude, this is very important to Japan as they are 100% oil importers. The price of oil has a big impact on how the Nikkei performs, high oil prices are negative on their stocks and visa verse. How the Nikkei does is reflected in the exchange rate often , especially when the Nikkei starts having a good run.

Then of course there is the BOJ (Bank of Japan), they hate seeing the yen getting stronger as it adversely affects exports. So every now and again they either threaten fx intervention or do intervene in the fx market often causing 100 pip plus moves in seconds. These are usually unanounced interventions which can be hazardous to small traders account balances and something that is always in the back of your mind which makes trading yen a little more edgy.


''What economic reports/news have the biggest knee-jerk effect on the EUR/USD prior to the Eurpean market open or during its most active times?

Where is the a good place to find a daily schedule of the important economic numbers as they relate to each market opening?''

Try www.forexnews.com, they have a good fx calendar on their home page, www.fxstreet.com, also has, and GFT should also have a calendar available on their site or in DB2. In my experience European data usually has a milder effect on rates that US data, I am not sure if that is because there are less surprises in the euroland data.


Hope this helps some

Cheers

[jtv1019]

Yes and no,

The foreign exchange market has a 2 day settlement. Meaning that everytime you carry a position past a firms "cut off" hour where the next trading day begins, they must roll the position into the next settlement date. If this was not done, you would recieve an actual cash position with the bank (in theory).

What they do is ...........

you short market at 1.3025 before 3 pm cst. At 3 pm, the buy at the current market prices (liquidate) and sell at the same price (establish a new position)

- buy @ 1.0311 and sell @ 1.3011 at the same time-

The money that was made or lost with the roll (in your instance profit was realized) and place that money into the UPL section of your platform. You are then left with a short position from the roll price of 1.3011.

UPL will display a profit or loss for two business days (2 day settlement) and then will transfer into your available cash section. UPL is the cash that you have lost or made on all your postions that have been liquidated but not yet been settled. FPL (floating p&l) is your profit or loss on all your positions that you still have open.


One last example

short market @1.3025, you get rolled into the next settlement date at 1.3011. $140.00 USD positive appears in your UPL, you are now short from the price of 1.3011. 1 hour later the market is at 1.3001, you show a profit of $100.00 USD in your FPL. From your original position you are profiting a total of $240.00 USD, but you have locked in $140.00 USD of that from the roll.

Some people look at it as taking profit and placing a new target for profit from the roll price, others combine the two and never change their stops or profit targets.

Sorry for the long post,

Jason

[cv6vb10]

Originally posted by ERA

Then of course there is the BOJ (Bank of Japan), they hate seeing the yen getting stronger as it adversely affects exports. So every now and again they either threaten fx intervention or do intervene in the fx market often causing 100 pip plus moves in seconds. These are usually unanounced interventions which can be hazardous to small traders account balances and something that is always in the back of your mind which makes trading yen a little more edgy.

wow! im glad you mentioned the BOJ and its influence on the yen.
i will definitely keep that in mind!

thanks for the very helpful information.

Matt