What is FOREX?
FOREX (FOReign EXchange market) is an international foreign exchange market, where money is sold and bought freely. In its present condition FOREX was launched in the 1970s, when free exchange rates were introduced, and only the participants of the market determine the price of one currency against the other proceeding from supply and demand.As far as the freedom from any external control and free competition are concerned, FOREX is a perfect market. It is also the biggest liquid financial market. According to various assessments, money masses in the market constitute from 1 to 1.5 trillion US dollars a day. (It is impossible to determine an absolutely exact number because trading is not centralized on an exchange.) Transactions are conducted all over the world via telecommunications 24 hours a day from 00:00 GMT on Monday to 10:00 pm GMT on Friday. Practically in every time zone (that is, in Frankfurt-on-Main, London, New York, Tokyo, Hong Kong, etc.) there are dealers who will quote currencies.FOREX is a more objective market, because if some of its participants would like to change prices, for some manipulative purpose, they would have to operate with tens of billions dollars. That is why any influence by a single participants in the market is practically out of the question. The superior liquidity allows the traders to open and/or close positions within a few seconds. The time of keeping a position is arbitrary and has no limits: from several seconds to many years. It depends only on your trading strategies. Although the daily fluctuations of currencies are rather insignificant, you may use the credit lines, that are accessible even to currency speculators with small capitals ($ 1,000 - 5,000), where the profit may be impressive. (You can learn more about it in the section: The main principles of trading.)The idea of marginal trading stems from the fact that in FOREX speculative interests can be satisfied without a real money supply. This decreases overhead expenses for transferring money and gives an opportunity to open positions with a small account in US dollars, buying and selling a lot of other currencies. That is, on can conduct transactions very quickly, getting a big profit, when the exchange rates go up or down. Many speculative transactions in the international financial markets are made on the principles of marginal trading.Margin trading is trading with a borrowed capital. Marginal trading in an exchange market uses lots. 1 lot equals approximately $100,000, but to open it it is necessary to have only from 0.5% to 4% of the sum.For example, you have analyzed the situation in the market and come to the conclusion that the pound will go up against the dollar. You open 1 lot for buying the pound (GBP) with the margin 1% (1:1000 leverage) at the price of 1.49889 and wait for the exchange rate to go up. Some time later your expectations become true. You close the position at 1.5050 and earn 61 pips (about $ 405). For the calculation of 1 pip click here.Everyday fluctuations of currencies constitute about 100 to 150 pips, giving FX traders an opportunity to make money on these changes.In FOREX, it's not obligatory to buy some currency first in order to sell it later. It's possible to open positions for buying and selling any currency without actually having it. Usually Internet-brokers establish the minimum deposit such as $ 2000, for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit. The major currencies traded in FOREX, are Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD).In order to assess the situation in the market a trader has to be able to use fundamental and/or technical analysis, as well as to make decisions in the constantly changing current of information about political and economic character. Most small and medium players in financial markets use technical analysis. Technical analysis presupposes that all the information about the market and its further fluctuations is contained in the price chain. Any factor, that has some influence on the price, be it economic, political or psychological, has already been considered by the market and included in the price. The initial data for a technical analysis are prices: the highest and the lowest prices, the price of opening and closing within a certain period of time, and the volume of transactions.A technical analysis is founded on three suppositions:Movement of the market considers everything;Movement of prices is purposeful;History repeats itself. That is, technical analysis is a statistical and mathematical analysis of previous quotes and a prognosis of coming prices.A number of technical indicators have been installed into the PRO-CHARTS trading system. Analyzing the indicators one can come to the conclusion about further movements of the quoted currencies. For a more detailed description of the indicators, analyzing price charts and volumes of trading, click here.Fundamental analysis is an analysis of current situations in the country of the currency, such as its economy, political events, and rumors. The country's economy depends on the rate of inflation and unemployment, on the interest rate of its Central Bank, and on tax policy. Political stability also influences the exchange rate. Policy of the Central Bank has a special role, as concentrated interventions or refusal from them greatly influence the exchange rate.At the same time one should not consider fundamental analysis just as an analysis of the economic situation in the country itself. A far bigger role in the FOREX market belongs to the expectations of the market participants and their assessment of these expectations. Various prognoses and bulletins, issued by the participants, have a strong influence on the expectations. Very often an effect of the so-called self-filfilling prophecy occurs when market players raise or lower the exchange rates according to the prognosis. But a deep and thorough fundamental analysis is available only for big banks with a staff of professional analysts and constant access to a wide field of information.In spite of these different approaches, both forms of analyses complement one another. Traders who act on the basis of a fundamental analysis, have to consider some technical characteristics of the market (the main rates of support, such as resistance and resale), and supporters of the technical approach to the market must track the main news (interest rates, important political events).
The Start Line Of The FOREX
Tradeology The foreign currency exchange market is available for people from all over the world. More and more people take their first steps in FOREX trading, contributing to its volume and making it viable and easy to use for the ordinary individual, in contrast to only a few years back when only pros, hedge funds, major banks and institutional traders used the FOREX market. The key explanation for this turn of events is the Internet which dramatically increased accessibility. Almost all firms are now offering, free or in return for signing-up, easy to operate software for online FOREX trading. Traders’ essential goal in FOREX is to estimate which currency will increase in worth against a different currency, and so getting a hold of a method which helps you to foresee future movements can help you in gaining a nice fortune. Realizing the fact that you are always trading by a ratio between two currencies should clarify the cause for seeing these letters arrangements: EUR/USD, USD/JPY, and GBP/USD etc. The five most important and highly popular currencies are the US Dollar, Japanese Yen, British Pound, Euro and Swiss Franc. The FOREX market is open 24 hours a day; major firms keep brokers working shifts uninterruptedly so people from all over the world can trade always. This is attributable to the fact that nowadays most trades are carried out through company brokers. Fear not, you can rest well at nights and even enjoy a day off every once and a while without being logged-on the FOREX market 24/7. All you have to do is give your broker your “stop-loss” / “stop-orders” to buy or sell currency once they have reached a certain price, thus preventing major losses. The FOREX is considered to be a solid market. Nothing like the stock market which is highly unstable, this market is friendly and easy to comprehend. Another plus is that it has high liquidity which grants you the prospects of getting your money in or out at any given time. Be careful though, even when the FOREX seems like a playground to you, please seek your broker or another pro-trader’s counsel before getting involved in this market unless you have a lot of money to spend that you don’t really need. The big boys of FOREX would not care too much about seeing you lose all your life savings.
How does forex trading work?
It's actually simple. Currencies are traded in pairs. A spot trade is "opened" when you simultaneously buy a block of one currency and sell another. A trade is "closed" when the reverse is done. To earn a profit, you buy low then sell high, or sell high and then buy low. Risk can be set as low as 1% to 5% per trade. Trades take place online or by phone without taking physical delivery of the currencies
one more secret for you
to make money Two types of persons can't make money with Google Adsence advertisement programme.a) Ordinary persons who are unable to create good content for their website or blog. Result: They get less clicks or the clicks that don't earn much money.b) Very clever persons who try to fool Google with copied content or who try to manage clicks on the ads from various sources.Google is helping millions of people to earn money who are really serious in making some money and really ready to work hard for it. There is no such thing like 'easy money' with Google Adsence. For easy money find other sources.Content rich: People often forget that it is content rich site or blog that has the capacity to earn money from Google Adsence. Unfortunately people indulge in trying all sorts of tacts and tricks to lure Google. But remember, these Google people are shrewd businessmen and they can enter your brain and heart to understand your clever tactics.But people can't have a control over their tendency and they buy books and formulas or software to hit for quick-rich methods. But everything fail. Google is like that rich and beautiful female who is hell-bent to fail your every trick and tact. She loves sincere and dedicated persons and wants to be wooed in a straightforward and intelligent way.What is the effect of content rich blog or site on the Google. You regularly get ads which pay more money per click. And you get visitors from everywhere who do more clicking. Simple writing or blogs created just for expression get those ads from Google which have very low per click rates. And people get surprised why they are earning so less.So you know one more great secret now. Cheers and Goog Luck!
7 powerful ways to make money
There is really no doubting that there are amazing incomes currently being made on Google Adsense and the really interesting thing is that even relatively small sites and blogs are finding new ways to make money from their Adsense sites every day.Actually there are a lot of increasingly creative ways to make money and maximize on Adsense earnings that are being discovered and also being put to use every day. And what’s even more fascinating is the fact that most of these tools being used don’t cost anything. They are actually free. Here are 7 of the most effective currently being used.a) Ways to make money from Adsense by Distributing articles through ezine and article announcement listsSome of the most effective methods ways to make money from Adsense clicks involve the simple step of just increasing the volume of targeted traffic to a site. One of the ways of doing this is by distributing interesting content to ezine lists and article announcement lists. It is not too difficult to quickly build a list that reaches a million or so email boxes and can thus give a lot of visibility and drive tons of highly targetd traffic to your Adsense site or sites. Probably the most popular place for doing this is at Yahoo groups, but there are a few others that you can find easily by using your favorite search engine.Success here depends on three main factors. Firstly you should be careful to join article announcement lists and ezine lists that are as relevant as possible to your subject matter and offering. Secondly your headline has to be a killer headline that will grab readers by the scruffs of their necks and force them to open your email message amongst the dozens or even hundreds of others they receive daily. It goes without saying that the content must meet the promise of your sensational headline. Anything less will cause annoyance and leave all those potential visitors to your Adsense site feeling cheated. And believe me, you don’t want to cause this sort of reaction because it is definitely not one of the ways o make money from Adsense or any other program for that matter. Thirdly, you will need the sort of resource box in all your articles that will leave most of your readers with no option but to visit your Adsense site.Within a very short of consistently applying this technique, my daily Adsense earnings increased seven-fold.b) Ways to make money from Adsense by Distributing free articles to high traffic article sites Some people find the recent trends that have seen an increase in article sites surprising. I don’t. The net is primarily an information-seeking tool. Anything that will help improve the search and quality of information will greatly benefit the people making that effort.Some of the older article directories receive very high traffic, mainly from web masters and site owners seeking quality free content for their sites. So apart from the immediate exposure these sites also guarantee plenty of future targeted traffic to your site, when folks find your articles useful enough to re-post at their sites.The more new articles you release to these sites every week, the more targeted traffic your Adsense sites will receive. This is in fact one of the most effective ways of making money consistently from Adsense clicks. One of the reasons for this is that targeted traffic will tend to spend more time at your site or sites, and the more time they spend, the higher the chances that they will click one one of the Adsense ads posted there.c) Ways to make money from Adsense by Using Articles And A Viral Marketing WebsiteAny online marketing technique that involves the use of referral marketing or viral marketing automatically has a huge chance of being a success. The net is ideal for viral marketing and in fact gives any viral marketer huge leverage. Viral marketing or referral marketing is one of the most effective ways to make money online. Just ask Bill Gates.When Gates was trying to play catch up on the Internet after an earlier mistake of underestimating the future importance of the net, he launched his Hotmail free email service when rivals like Yahoo already had millions of users. He decided to use a simple referral marketing technique. Every Hotmail message that went out had a brief signature at the end requesting the recipient to sign up for their free Hotmail account. Within a few short months, Hotmail had millions of users. And there are many other amazing stories which viral marketing boasts of on the net.There is one of the very simple ways to make money from Adsense by going viral. Sign up at a leading viral marketing site. You will automatically get your own viral site. You can then use some of your articles to point people to your viral site. The way these sites work is that anybody who signs up at your site will have to visit your Adsense site if you register it at the site. So within a very short time you will be driving thousands of visitors to your Adsense site.Find more details on this at my blog whose address you'll find in the resource box below.Admittedly this traffic is less targeted. Still the huge potential and possible numbers you are able to receive using this free tool more than makes up for this.d) Ways to make money from Adsense With Your Email signaturePeople greatly underestimate the power and potential effectiveness of a simple email signature as one of the ways to make money online. Actually this is a viral marketing method because emails get forwarded all the time and are even copied to several other people sometimes.Do not waste another minute. Go to all your email accounts right now and create a signature that points to your Adsense site or sites.Writing effective email signatures is a skill that you will have to develop, but I have found that using famous quotes is more effective than a straight advertising message. Always remember that people hate to be advertised to online.e) Ways to make money from Adsense By Asking Questions At Discussion groupsI recently had an interesting conversation with a young Internet and computer techie. He asked me whether there were quick ways to make money online by answering technical questions and helping people to solve their computer and web-related problems. My answer was that there were many discussion groups where participants would get these answers for free. I advised him that he had a better chance of making money by making use of this free advice available online rather than by trying to sell his own advice.There are tons of online discussion groups where leading world experts will answer your questions and give you valuable insight for free. It is amazing why most people do not think of using these online forums to learn as much as they can about the most effective ways of making money from Adsense.These forums can easily be found through you favorite search engine.f) Ways to make money from Adsense By Bartering your online skills for valuable Adsense keywordsIn the old days, before the invention of money, if somebody needed something, the first question they asked themselves was; “What is it that I already have that I can exchange for what I need? Barter trade seems to have been forgotten but it is a very powerful method of trading. More so online where people have plenty of skills but are slow to trust others enough to send them money for an item they need.You can barter whatever it is you have, your skills, products or services, and exchange them for genuine valuable Adsense keywords. Valuable Adsense keywords are the most effective way for a small site with low traffic to earn big cash from Adsense. And you can do this barter trade on an ongoing basis so that you always have a constant supply of valuable Adsense keywords which you can use at your site or blog as one of the ways to make more money from Adsense.g) Ways to make money from Adsense By Sending Teaser EmailsTo Everybody In Your Inbox And Also To Your Opt-in Email List Most of us receive tons of email in our inbox every day. You’ll be surprised at the huge number of people you know by simply going through your email inbox. No matter how good your spam filters are, you are also bound to be receiving more than your fare share of SPAM or unsolicited email. All this is “gold” lying in your email inbox and there are ways to make money using these emails. All you need to do to process the emails into pure gold is to send out “teaser emails about the most interesting aspects of content at your site. The whole objective of teaser emails is to get people to visit your site. For instance if I were to send out teaser email on this content here is how I would construct it;Subject: Free Tools Currently Being Used To Increase Adsense EarningsHello,Just thought you might be interested in this subject, since so many folks online use Adsense these days. If not please accept my sincere apologies. Details are at my site.www. your site's address .comRegards, Chris.I am sure you can write an even more effective teaser email. It would be a better idea to have a different message for your close friends, a different one for your business contacts and yet another one for those nasty guys SPAMMING you.These are just some of the many creative ways to make money from Adsense
Thursday, March 1, 2007
google Adsense Websites
Adsense Websites
Are you ready to start making some serious cash? Sick and tired of trying online businesses that seem destined to fail from the start? Then it's time to look at setting up your own Adsense websites for profit. Many people fail to realize that making money online is very simple if they know where to look. It is very true that the money seems to trickle down on the internet in terms of commerce, and this is especially true when discussing Adsense websites. Think about how many investors have poured money into Google, and then picture how many millions of people advertise with Google each day. The numbers are mind boggling, and that is why Adsense websites can afford to pay you a ton of cash if you know how to set up your sites for profit. There is literally an endless amount of money to be made with Adsense websites for the person that takes the time to learn about the trade, and utilizes the tools and tips needed to bring home big profits from Adsense websites. Without a doubt the most consistent way to make money online today is through affiliate marketing. Adsense websites provide you with an easy way to get involved with the Internet's top affiliate, Google's Adsense.
Simply setting up a website, and putting the Adsense websites to work for you won't cut it, and certainly will not make you rich. The key to Adsense websites is the keyword placement, and the building of content and quality. In order to fully realize what is in this secret recipe one must first understand how Adsense websites really work. Advertisers typically pay Google to put their ads in areas where customers might be searching for them. Then, the advertisers pay more money to have the customers click them. When the Adsense websites are set up for ease of use for a customer, chances are they will get a click. Each time an Adsense website ad gets a click, you will receive a payment for that click, typically a few cents to a dollar per click. This is how Adsense websites work, and how thousands of people have been making a small fortune for years off of Google.
One product that works well is adsensegold, a unique e-book that explains how Adsense websites can make you a lot of money. The one time fee of less than $100 accounts for all that one needs to start making money with Adsense websites, and is a great way to get a solid body of knowledge on what works with Adsense websites, and what doesn't. Further adsensegold is owned and operated by an Adsense guru that has made a fortune using the same techniques.
Also there is a site adsensepowerpack that provides a large amount of Adsense websites for you to use for your profit. Since the websites are unique and custom made, one can utilize them to make major cash from Adsense websites each and every day.
Whatever the product, it is important to look at unbiased customer reviews of the products before purchasing them. With Adsense websites, it is necessary to check out a site like Review Place where customers chime in about the quality of a product, and its overall ease of use. When visiting Review Place users can get information about the price, and quality of many Adsense websites, and related products.
Making money with Adsense websites can be an easy task if you follow the road carefully and look for the best deals possible. It is not always necessary to purchase a product to make money with Adsense websites, but it can greatly help increase your chances for success.
Adsense Income Secrets to Success
Adsense sites need planning and work to be successful. If you are thinking of producing sites for adsense income, or perhaps you already have sites that are not producing a good income if any.
To be successful, takes a lot of work no matter what you may read because there are so many people promoting products that promise to make adsense income easy.
Well some of these products may help, but there is no simple solution to receiving great income quickly.
Extensive planning is required before you start. It is important to carefully consider the topics or niches that will be targeted. It is very important to see what type of competition there is for certain niches.
If you are beginning with your adsense sites, it is better to start with niches that are not too competitive. The reasons for this are that in any niche it will take time to get traffic to the sites and make money.
Extensive keyword research must be carried out before building new sites. It is far better to target say 20 keywords that are not at the top of the keyword results.
Many newcomers make the mistake of seeing the high prices that certain words achieve, but do not realise what is involved to compete with these words.
So choose 20 related words to the main keyword, and then build a page for each of these sub keywords. It is very important to have closely themed sites as well, meaning that you are not trying to offer information on a variety of subjects.
Search engines are now looking for sites that offer their visitors good quality information following the keyword searches entered.
It is also important to have sites that are easy to navigate, so that visitors are able to find what they are looking for easily. Clear navigation linking is essential.
Another point to remember is that search engines will reward sites that are constantly updated with new content. It is best to work to a plan with new sites that allow new content to be added on a weekly basis.
Incoming links to sites are very important to achieve good rankings in the search engines. There is only so much on site optimisation that can be done. This includes different keywords and descriptions for each page, use of H1, H2, H3 tags etc.
It is essential that good quality original content is offered to visitors. Due to the abuse that occurred in the past where many people were using various software to produce hundreds of pages of worthless content in literally a matter of minutes to try to make money with adsense.
It is a good idea to work on getting links back to sites on a weekly basis also. Another good idea is to register with directories also on a regular basis.
Adsense can be a good source of income, but it involves a lot of work before the results appear. Extensive research must be carried out to check competition. It is vital to do thorough keyword testing. Then produce sites that are closely themed with a separate page for each targeted keyword. Then new content and links must be on the agenda for good adsense results.
How To Immediately Increase Your Adsense Clicks
Would you like to make one tiny addition to your pages and dramatically increase your AdSense clicks -- perhaps as much as threefold?
It's laughingly simple, yet the effect can be immediate.
All you need is to get some colorful digital photographs, either from your own stock or from a royalty-free web site. Then using a graphics program, such, as Real Draw PRO or Photoshop, create a strip of four rectangular photographs with a space in between each. The overall size of the strip should be 728 pixels wide by about 108 pixels deep.
The content of the pictures should be relevant to the content of your web site. In order not to violate Google's Terms Of Service, you should avoid pictures that are animated, advertisements or induce the visitor to click on the AdSense ads. If you are in any doubt, take a look at the ads on my web site or check with Google's Terms Of Service.
The background color should exactly match the color of your AdSense pages. It helps if you can place a narrow blue border around the individual photo (but not around the entire strip). This arrangement is ideal for a page containing an article and the best position within the page for the picture strip is at the top of the page, immediately below the page headline, but above the start of the body text.
Once you have done this, go to your Google AdSense advert codes and select the one for leaderboard, which is 728 pixels wide by 90 pixels deep. If the 728 pixel width sounds vaguely familiar, it's the exact size of the width of your picture strip. Make sure you delete Google's border code before pasting your leaderboard code under the picture strip, save the page and load it to your server and start enjoying up to three times the clicks on that style of ad.
If you already have the maximum number of three AdSense blocks on the pages, where you insert this picture strip/leaderboard combo, do be sure to delete one of the existing ad groups, so you don't violate Google's Terms Of Service, which only allow three ad blocks per page.
Adsense - Improve Your Earnings by 5 Folds
You may find many Adsense Gurus on the net, offering you thousand ways to improve your Google adsense earnings! Mind you guys, just buying some genius adsense template and expect it to produce thousand dollars a day is a sure impossibility!
I am telling you with my practical experience that nothing would work unless you are prepared to go that extra mile. You should get hold of the adsense secrets that are unique to your site. You must be prepared to make continuous changes and measure effectiveness on a continuous basis.
Following are simple but effective steps successfully followed by the author, which may help you to improve your adsense earnings by five folds or even more! However, keep in mind that nothing would work unless you customize these options to suit your requirements.
The Best Position - This is always the demarcation point which decides you should be earning in hundreds or thousands! You must identify the most likely position where the reader would be most tempted to click. At first you might have to follow what Adsense Gurus have suggested. However, you must keep in mind that what they have said is not unique to your site.
You should be bold enough to do your own research and identify the best positions unique to your site, 'cos there could be exceptions to what Adsense Experts have proposed. Best example I can quote is 'Plentyoffish.com' a dating site which earns half a million Dollars a month just by displaying a single Google ad in each page with completely different link color format than the rest of the site using!
White Is In Demand - Having more white space around the article and the Ad will definitely increase your click through rate. In my case, this is one of the real secrets behind the high click through rate in my Adsense ads. Your objective should be to get the reader's attention to the Adsense ad and the article. Therefore, it is important to have other areas blank as much as possible to centre reader's attention to the Ad and the article. Remove all unnecessary items which are cluttered around the article and the Ad and have more white space on either side of the page
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What is Your Ad Size? -
Highly effective Ad formats are 336x250 and 768x120. However, it is up to you to find out the best size for your site. These are the widely tested and accepted sizes. Tyr them out and see the outcome.
Be Discreet - I personally don't prefer to server image ads in my Adsense campaigns because they dilute the effectiveness of the Ads. It is starkly obvious to the reader that they are clicking on Ads and the sole purpose of putting them is to make money! Just don't make it so obvious! Instead, include text ads which are relevant to the theme. Place the ads where the reader is likely to seek a break while reading the article or your copy.
Artistic Way To Be Discreet - The font, color and texture should match with the rest of the page. This will make the ad looks like part of the article. You have the options to use either an ideally matching color or a contrasting color. Either way is effective.
Use The Maximum but Have a Balance - Always try to use maximum number of adsense ads in each page. Don't lose balance however! Ads should not dominate the page.
Measure the effectiveness of Ad units - Always make use of Google Adsense channels to identify which position or format has produced high click through rates. Be prepared to change the Ad format, color and position according to your findings. These simple but effective methods surely drive you more income you never ever expect if you are prepared to follow those in your own way. Find out your way out today.
Top Paying Adsense Keywords
I have just released a brand new website that will inform visitors of the current top paying adsense keywords. These keywords are listed in a table on the front page of my website, and are updated on a weekly basis.
If you are wondering where I obtained this information from in order to produce this table of top paying adsense keywords, then please go to this page: http://www.premiumadsensekeywords.com
- Advice On How To Use This Table Of Adsense Keywords -
Choose an adsense keyword above that interests you; something that you could write about in detail. If you add a personal touch to your writing that makes it even better because people are interested by personal experiences as they are able to relate it to themselves, and build confidence with other people’s experiences.
They are all high paying so don't feel you have to choose the top paying adsense keyword. If you feel that there is not enough choice, or you would prefer a keyword surrounding a certain topic, then please visit my website where you will be able to buy software that shows you top paying adsense keywords on ANY topic you like.
2. Create a website with plenty of content surrounding your chosen keyword. This content should regularly contain your keyword or keyphrase that you are writing about. If you are not sure where to find content to put into your site, then try websites that give away free articles.
3. Add Adsense ads to your content. You must think very carefully before adding Adsense to your content though. Think about where people are most likely to click on the ads. If you are not sure where to put them, or you are not sure which colour or size of Ad makes the most money, please look at the software on this page: http://www.premiumadsensekeywords.com/TripleYourAdsenseCTR&EPC.html
4. Obtain traffic to your website & get ready to earn money. If you are not sure how to obtain masses & masses of targeted traffic, again please visit my website and click on the appropriate link.
If you promote your website on search engines, then not only can you obtain thousands of free hits per month, but also your traffic is targeted to your website; this will vastly increase your potential of making a sale or receiving money through Google Adsense.
That is my advice to those of you looking to make money with Adsense. I hope that this information has been beneficial to you.
My website: http://www.premiumadsensekeywords.com
Content Site Good for Adsense
The most popular ad network for independent publishers is Google's AdSense program. AdSense is a "pay per click" (PPC) program, where you earn money each time one of your readers clicks on a Google-served ad. Since you earn money on clicks, rather than completed sales, PPC ad networks can provide a more reliable source of income for sites whose readers are not looking to make a purchase right away. Other notable PPC ad networks include the Yahoo! Publisher Network and Ad Voyager.
To know why Adsense is essential for your content sites is to know first how this works.
The publisher or the webmaster inserts a java script into a certain website. Each time the page is accessed, the java script will pull advertisements from the Adsense program. The ads that are targeted should therefore be related to the content that is contained on the web page serving the ad.
The first reason why Adsense is essential for content sites is because it already has come a long way in understanding the needs of publishers and webmasters. Together with its continuous progression is the appearance of more advanced system that allows full ad customization. Webmasters are given the chance to choose from many different types of text ad formats to better complement their website and fit their webpage layout.
Once registered with a merchant's program, you can create an ad or product link on your site using a snippet of Web code downloaded from the retailer. Some merchants go further and allow you to create virtual storefronts that match the design of your site, but where the retailer still handles all the inventory and commerce. Be careful setting up such arrangements -- unless you want customers coming to you for return and refund questions instead of to the retailer.
The different formatting enables the site owners the possibility of more click through from visitors who may or may not be aware of what they are clicking on. It can also appeal to the people visiting thus make them take that next step of looking up what it is all about. This way the people behind the Adsense will get their content read and making profit in the process.
The second reason is the ability of the Adsense publishers to track not only how their sites are progressing but also the earnings based on the webmaster-defined channels. The recent improvements in the search engines gives webmasters the capability to monitor how their ads are performing using customizable reports that has the capacity to detail page impressions, clicks and click-through rates.
If you are certain that your content is unique and valuable enough that readers would be willing to pay for it, you'll need to select a way to handle payments from your readers. The system could be as easy as asking readers mail you a check in exchange for your putting them on e-mail content distribution list -- a method which offers the advantage of not requiring any advanced Web server security set-up.
The last and final reason is that the advertisers have realized the benefits associated having their ads served on targeted websites. As opposed to those who are no using Adsense in their sites, they are given the option of having other people do their content for them, giving them the benefit of having successful and money-generating web sites.
Most PPC ads are text, but some PPC networks also sell image and Flash ads. Ads are sold and displayed based on an auction system, where advertisers bid on selected keywords and phrases that appear on network websites. The ad network looks for webpages displaying its ad code, then matches what it determines the content of a webpage to be with the most appropriate keywords and phrases that advertisers have bid upon.
Adsense is all about targeted content, the more targeted your content is, the more target the search engines’ ads will be. There are some web masters and publishers who are focused more on their site contents and how best to maintain them rather than the cash that the ads will generate for them. This is the part where the effectiveness is working its best.
There was a time when people were not yet aware of the money to be achieved from advertisements. The cash generated only came into existence when the webmasters and publishers realized how they can make Adsense be that generator. In those days, the content were the most important factors that is taken quite seriously.
Finding Profitable Keywords For Your Google Adsense Campaign
No doubt that Google Adsense has become the number one player in making money on the internet. The latest claim that I saw advertised was an internet marketer that made over $19,000 in one month. What is their secret? It is simply writing articles and building adsense webpages that use high traffic, or even some traffic, that use profitable keywords. Not just any keywords, profitable keywords. You have to find keywords that your customers use and that your competitors do not use. Their are many tools available and this article will cover just a few of them.
WordTracker is the leading keyword research tool. SEO professionals worldwide use this tool to find profitable keywords. Wordtracker's suggestions are based on over 300 million keywords and phrases that people have used over the previous 90 days. (In other words, there is no "guessing" when you use Wordtracker. Everything is based on the keywords millions of people have actually typed into search engines.)
KeywordDiscovery is also a very popular keyword research tool and is a major competitor to Wordtracker. KeywordDiscovery compiles keyword search statistics from over 180 search engines world wide, to create what they call "the most powerful keyword research tool". It has been noted in a number of reviews that Keyword Discovery returns more words that are relevant than Wordtracker, Yahoo's or Google's suggestion tools.
There are many other tools on the internet that are worth mentioning. They can be used to supplement and verify the profitable keywords that you find using the major keyword tools. They include, the Google search tool, Yahoo Overture, SEO20/20, webconfs website keyword suggestions (you put your competitor's website URL in this one to determine the profitable keywords they are using), and many more.
The SEO20/20 search tool is the most valuable for determining monthly traffic for profitable keywords by search engine. It includes information on the Overture bid prices, total monthly search volume, estimated search volume for Google, Yahoo, MSN, Digital Point (WordTracker), and Nichebot, Google trends, Google Traffic Estimator, Google Suggest, Google Sysnonyms, and Adwords Keyword Tool. It also provides you with links to news searches, directories, blog searches, tag searches, thesaurus, dictionary & encyclopedia, classifieds, products & revies, and local results for your search term. All in all, not a bad tool.
Finding profitable keywords that are often searched for will help you meet your goals of bringing more targeted traffic to your web site and reaching that top ranking that sometimes seems next to impossible. Reach these goals and your profitable keywords will equal Google Adsense Campaign income.
The Basics On How TO Start Making Money With Adsense
There is nothing more rewarding than receiving the check of hard earned money. You must have seen thousands upon thousands of online testimonies of how they 'got rich' from Google Adsense and how they make thousands per week. Some of these stories are not entirely false.
The main secret behind making money from Google Adwords/Adsense program is content. There is no shortcut. Content is the first step behind any successful money making website. Of course, there is SEO-ing, but content is what drives the potential customers to your site. How much you are willing to invest will determine how much you will make per month, but it is possible to make money without spending a dime.
First of all, you will need a website. Assuming your content will be purely textual (since Google spiders crawl on text/keywords), you may either get a domain and hosting or choose to post to a blog, or you could sign up for free ad-supported website. It is recommended that if you plan on making money from your website, you ought to get a website with your own domain name, after all, ad supported hosting defeats the purpose of your money making; plus, you want your website to appear as professional and less congested as possible.
Now that you have a website, the next step is getting content for your site, but we'll get to that at the end of this article.
Now that you have a domain name and a niche, you will have to sign up for the Google Adwords Program. Note that Google Adwords enables you to get paid for advertising and Google Adsense is when you will have to pay for advertising.
Now that you have your domain with efficient hosting, and your Adwords account, you will need to build your site. If you are already a site-creating guru, then you are a step ahead. If not, creating your content site is not purely throwing out HTML pages. Sooner or later, content is going to keep growing and you may either get an efficient content manager or get hired help.
Traffic makes the difference between you making money or you not getting a dime. In order to get traffic, you can either optimize your website or get traffic by spamming. Now, remember that spamming will not get you repeat visitors, and will give your business a very bad reputation, plus, spamming may cost your website not to be listed on search engines, and Google has the right, under the 'Terms and Conditions' to revoke your Adwords account. You definitely do not want to start from scratch.
Traffic can come by word of mouth and efficient SEO-ing. SEO is an enormously broad topic that ranges from content, link popularity, link exchanges, keywords, web description, etc., to website rankings and so on. In order to remain on the top of your niche, you will need to always want your customers coming back. In order to keep that traffic flowing, you will need to keep content coming fresh and keeping your site constantly optimized and up to date. You will need to be aware of most common spider crawling techniques and use it to your advantage.
Another most common made mistake in getting website content free and cheap is to copy other websites or repeat the same information (if you have more than one money-making site). This is a bad move! Search engines will see this duplicate content as spam and remove it from searched results. Also, if you copy and paste content that is not yours and/or of public domain you will be infringing copyright. Copyright infringement is a crime.
As far as content goes, you can hire help to write articles or you can conveniently buy articles in bulk. Bulk articles are normally distributed by renowned companies and usually are more cost-efficient. Bulk content is also good if you are thinking of expanding your site. A renowned company that can help you with content and marketing strategies is the Myrdhinn's Marketing Madness. There are thousands of articles in different niches and since it's from a trustworthy company, you can always return for new quality content.
http://www.myrdhinn.com/members/davidj/products.html
Remember that signing up for Google Adwords is free. If your website gets rejected at first, don't worry. Just build your site and re-apply. As long as your website is legitimate and is not an 'about-me' site, you are more than likely to get approved. Plus, having an Adwords account opens you to the Google community and you can increase your PageRank dramatically.
Good luck on your first check!
Earn Money on Google AdSense using these Three Proven Strategiesy
Google AdSense is a great program that Internet businesses can utilize to make money. If you want to earn a significant amount of money through Google AdSense then read on. You will learn three proven strategies that will optimize your Google AdSense earnings.
Following are three ways to make money using Google AdSense:
1. Add more messages in your email sequence that is driving customers to your website pages that have Google AdSense advertisements. Increasing the frequency of your email messages will provide more chances for Internet visitors to click on your Google AdSense advertisements.
2. Send out a mass email, solo broadcast. Send out an email to drive traffic to your website page that contains the Google AdSense advertisements. Increase the amount of subscribers you have on your list.
3. Increase the amount of money you earn from the advertisements. For example, certain keywords cost more money in Google Adwords. Therefore, you can write articles that contain these high value keywords. You will earn more money through Google AdSense with these higher quality keywords.
Another strategy you can use is to place the keywords in your Title tag. The first 250 words on your website is the second most important piece of information. Write a line then insert a double space. Place keywords in this space. Highlight the keywords so that it is white. This will cause the keywords to blend into the background. Do not use this for search engine marketing! It will hurt you in search engine optimization. It is only used to increase the price you earn from Google Advertisements. The Google spiders see these keywords. However, the human eye will not detect the keywords.
How do you find the high paying keywords? Use www.highpayingkeywords.com. This service provides you a quarterly listing of the high paying keywords. The service costs you money. However, it is a good investment because Google will not give information about the high paying keywords.
Tip: When you communicate with your list, you need to provide relevant content. Don’t just send poor content as filler. Don’t just send an article or email message to provide Google AdSense exposure. You need to provide content that is a benefit for your subscriber list.
How many emails should you send? You can send as many emails as you want. Sending out various emails is at your discretion. If you send out several emails per week it may annoy some of your subscribers. However, these subscribers can be deleted. You want to send out as many emails as you need because they are bound to bring in more orders for your product or service. Plus, it increases the amount of money you earn through Google AdSense if your subscribers click on the Google AdSense advertisements.
Are you ready to start making some serious cash? Sick and tired of trying online businesses that seem destined to fail from the start? Then it's time to look at setting up your own Adsense websites for profit. Many people fail to realize that making money online is very simple if they know where to look. It is very true that the money seems to trickle down on the internet in terms of commerce, and this is especially true when discussing Adsense websites. Think about how many investors have poured money into Google, and then picture how many millions of people advertise with Google each day. The numbers are mind boggling, and that is why Adsense websites can afford to pay you a ton of cash if you know how to set up your sites for profit. There is literally an endless amount of money to be made with Adsense websites for the person that takes the time to learn about the trade, and utilizes the tools and tips needed to bring home big profits from Adsense websites. Without a doubt the most consistent way to make money online today is through affiliate marketing. Adsense websites provide you with an easy way to get involved with the Internet's top affiliate, Google's Adsense.
Simply setting up a website, and putting the Adsense websites to work for you won't cut it, and certainly will not make you rich. The key to Adsense websites is the keyword placement, and the building of content and quality. In order to fully realize what is in this secret recipe one must first understand how Adsense websites really work. Advertisers typically pay Google to put their ads in areas where customers might be searching for them. Then, the advertisers pay more money to have the customers click them. When the Adsense websites are set up for ease of use for a customer, chances are they will get a click. Each time an Adsense website ad gets a click, you will receive a payment for that click, typically a few cents to a dollar per click. This is how Adsense websites work, and how thousands of people have been making a small fortune for years off of Google.
One product that works well is adsensegold, a unique e-book that explains how Adsense websites can make you a lot of money. The one time fee of less than $100 accounts for all that one needs to start making money with Adsense websites, and is a great way to get a solid body of knowledge on what works with Adsense websites, and what doesn't. Further adsensegold is owned and operated by an Adsense guru that has made a fortune using the same techniques.
Also there is a site adsensepowerpack that provides a large amount of Adsense websites for you to use for your profit. Since the websites are unique and custom made, one can utilize them to make major cash from Adsense websites each and every day.
Whatever the product, it is important to look at unbiased customer reviews of the products before purchasing them. With Adsense websites, it is necessary to check out a site like Review Place where customers chime in about the quality of a product, and its overall ease of use. When visiting Review Place users can get information about the price, and quality of many Adsense websites, and related products.
Making money with Adsense websites can be an easy task if you follow the road carefully and look for the best deals possible. It is not always necessary to purchase a product to make money with Adsense websites, but it can greatly help increase your chances for success.
Adsense Income Secrets to Success
Adsense sites need planning and work to be successful. If you are thinking of producing sites for adsense income, or perhaps you already have sites that are not producing a good income if any.
To be successful, takes a lot of work no matter what you may read because there are so many people promoting products that promise to make adsense income easy.
Well some of these products may help, but there is no simple solution to receiving great income quickly.
Extensive planning is required before you start. It is important to carefully consider the topics or niches that will be targeted. It is very important to see what type of competition there is for certain niches.
If you are beginning with your adsense sites, it is better to start with niches that are not too competitive. The reasons for this are that in any niche it will take time to get traffic to the sites and make money.
Extensive keyword research must be carried out before building new sites. It is far better to target say 20 keywords that are not at the top of the keyword results.
Many newcomers make the mistake of seeing the high prices that certain words achieve, but do not realise what is involved to compete with these words.
So choose 20 related words to the main keyword, and then build a page for each of these sub keywords. It is very important to have closely themed sites as well, meaning that you are not trying to offer information on a variety of subjects.
Search engines are now looking for sites that offer their visitors good quality information following the keyword searches entered.
It is also important to have sites that are easy to navigate, so that visitors are able to find what they are looking for easily. Clear navigation linking is essential.
Another point to remember is that search engines will reward sites that are constantly updated with new content. It is best to work to a plan with new sites that allow new content to be added on a weekly basis.
Incoming links to sites are very important to achieve good rankings in the search engines. There is only so much on site optimisation that can be done. This includes different keywords and descriptions for each page, use of H1, H2, H3 tags etc.
It is essential that good quality original content is offered to visitors. Due to the abuse that occurred in the past where many people were using various software to produce hundreds of pages of worthless content in literally a matter of minutes to try to make money with adsense.
It is a good idea to work on getting links back to sites on a weekly basis also. Another good idea is to register with directories also on a regular basis.
Adsense can be a good source of income, but it involves a lot of work before the results appear. Extensive research must be carried out to check competition. It is vital to do thorough keyword testing. Then produce sites that are closely themed with a separate page for each targeted keyword. Then new content and links must be on the agenda for good adsense results.
How To Immediately Increase Your Adsense Clicks
Would you like to make one tiny addition to your pages and dramatically increase your AdSense clicks -- perhaps as much as threefold?
It's laughingly simple, yet the effect can be immediate.
All you need is to get some colorful digital photographs, either from your own stock or from a royalty-free web site. Then using a graphics program, such, as Real Draw PRO or Photoshop, create a strip of four rectangular photographs with a space in between each. The overall size of the strip should be 728 pixels wide by about 108 pixels deep.
The content of the pictures should be relevant to the content of your web site. In order not to violate Google's Terms Of Service, you should avoid pictures that are animated, advertisements or induce the visitor to click on the AdSense ads. If you are in any doubt, take a look at the ads on my web site or check with Google's Terms Of Service.
The background color should exactly match the color of your AdSense pages. It helps if you can place a narrow blue border around the individual photo (but not around the entire strip). This arrangement is ideal for a page containing an article and the best position within the page for the picture strip is at the top of the page, immediately below the page headline, but above the start of the body text.
Once you have done this, go to your Google AdSense advert codes and select the one for leaderboard, which is 728 pixels wide by 90 pixels deep. If the 728 pixel width sounds vaguely familiar, it's the exact size of the width of your picture strip. Make sure you delete Google's border code before pasting your leaderboard code under the picture strip, save the page and load it to your server and start enjoying up to three times the clicks on that style of ad.
If you already have the maximum number of three AdSense blocks on the pages, where you insert this picture strip/leaderboard combo, do be sure to delete one of the existing ad groups, so you don't violate Google's Terms Of Service, which only allow three ad blocks per page.
Adsense - Improve Your Earnings by 5 Folds
You may find many Adsense Gurus on the net, offering you thousand ways to improve your Google adsense earnings! Mind you guys, just buying some genius adsense template and expect it to produce thousand dollars a day is a sure impossibility!
I am telling you with my practical experience that nothing would work unless you are prepared to go that extra mile. You should get hold of the adsense secrets that are unique to your site. You must be prepared to make continuous changes and measure effectiveness on a continuous basis.
Following are simple but effective steps successfully followed by the author, which may help you to improve your adsense earnings by five folds or even more! However, keep in mind that nothing would work unless you customize these options to suit your requirements.
The Best Position - This is always the demarcation point which decides you should be earning in hundreds or thousands! You must identify the most likely position where the reader would be most tempted to click. At first you might have to follow what Adsense Gurus have suggested. However, you must keep in mind that what they have said is not unique to your site.
You should be bold enough to do your own research and identify the best positions unique to your site, 'cos there could be exceptions to what Adsense Experts have proposed. Best example I can quote is 'Plentyoffish.com' a dating site which earns half a million Dollars a month just by displaying a single Google ad in each page with completely different link color format than the rest of the site using!
White Is In Demand - Having more white space around the article and the Ad will definitely increase your click through rate. In my case, this is one of the real secrets behind the high click through rate in my Adsense ads. Your objective should be to get the reader's attention to the Adsense ad and the article. Therefore, it is important to have other areas blank as much as possible to centre reader's attention to the Ad and the article. Remove all unnecessary items which are cluttered around the article and the Ad and have more white space on either side of the page
.
What is Your Ad Size? -
Highly effective Ad formats are 336x250 and 768x120. However, it is up to you to find out the best size for your site. These are the widely tested and accepted sizes. Tyr them out and see the outcome.
Be Discreet - I personally don't prefer to server image ads in my Adsense campaigns because they dilute the effectiveness of the Ads. It is starkly obvious to the reader that they are clicking on Ads and the sole purpose of putting them is to make money! Just don't make it so obvious! Instead, include text ads which are relevant to the theme. Place the ads where the reader is likely to seek a break while reading the article or your copy.
Artistic Way To Be Discreet - The font, color and texture should match with the rest of the page. This will make the ad looks like part of the article. You have the options to use either an ideally matching color or a contrasting color. Either way is effective.
Use The Maximum but Have a Balance - Always try to use maximum number of adsense ads in each page. Don't lose balance however! Ads should not dominate the page.
Measure the effectiveness of Ad units - Always make use of Google Adsense channels to identify which position or format has produced high click through rates. Be prepared to change the Ad format, color and position according to your findings. These simple but effective methods surely drive you more income you never ever expect if you are prepared to follow those in your own way. Find out your way out today.
Top Paying Adsense Keywords
I have just released a brand new website that will inform visitors of the current top paying adsense keywords. These keywords are listed in a table on the front page of my website, and are updated on a weekly basis.
If you are wondering where I obtained this information from in order to produce this table of top paying adsense keywords, then please go to this page: http://www.premiumadsensekeywords.com
- Advice On How To Use This Table Of Adsense Keywords -
Choose an adsense keyword above that interests you; something that you could write about in detail. If you add a personal touch to your writing that makes it even better because people are interested by personal experiences as they are able to relate it to themselves, and build confidence with other people’s experiences.
They are all high paying so don't feel you have to choose the top paying adsense keyword. If you feel that there is not enough choice, or you would prefer a keyword surrounding a certain topic, then please visit my website where you will be able to buy software that shows you top paying adsense keywords on ANY topic you like.
2. Create a website with plenty of content surrounding your chosen keyword. This content should regularly contain your keyword or keyphrase that you are writing about. If you are not sure where to find content to put into your site, then try websites that give away free articles.
3. Add Adsense ads to your content. You must think very carefully before adding Adsense to your content though. Think about where people are most likely to click on the ads. If you are not sure where to put them, or you are not sure which colour or size of Ad makes the most money, please look at the software on this page: http://www.premiumadsensekeywords.com/TripleYourAdsenseCTR&EPC.html
4. Obtain traffic to your website & get ready to earn money. If you are not sure how to obtain masses & masses of targeted traffic, again please visit my website and click on the appropriate link.
If you promote your website on search engines, then not only can you obtain thousands of free hits per month, but also your traffic is targeted to your website; this will vastly increase your potential of making a sale or receiving money through Google Adsense.
That is my advice to those of you looking to make money with Adsense. I hope that this information has been beneficial to you.
My website: http://www.premiumadsensekeywords.com
Content Site Good for Adsense
The most popular ad network for independent publishers is Google's AdSense program. AdSense is a "pay per click" (PPC) program, where you earn money each time one of your readers clicks on a Google-served ad. Since you earn money on clicks, rather than completed sales, PPC ad networks can provide a more reliable source of income for sites whose readers are not looking to make a purchase right away. Other notable PPC ad networks include the Yahoo! Publisher Network and Ad Voyager.
To know why Adsense is essential for your content sites is to know first how this works.
The publisher or the webmaster inserts a java script into a certain website. Each time the page is accessed, the java script will pull advertisements from the Adsense program. The ads that are targeted should therefore be related to the content that is contained on the web page serving the ad.
The first reason why Adsense is essential for content sites is because it already has come a long way in understanding the needs of publishers and webmasters. Together with its continuous progression is the appearance of more advanced system that allows full ad customization. Webmasters are given the chance to choose from many different types of text ad formats to better complement their website and fit their webpage layout.
Once registered with a merchant's program, you can create an ad or product link on your site using a snippet of Web code downloaded from the retailer. Some merchants go further and allow you to create virtual storefronts that match the design of your site, but where the retailer still handles all the inventory and commerce. Be careful setting up such arrangements -- unless you want customers coming to you for return and refund questions instead of to the retailer.
The different formatting enables the site owners the possibility of more click through from visitors who may or may not be aware of what they are clicking on. It can also appeal to the people visiting thus make them take that next step of looking up what it is all about. This way the people behind the Adsense will get their content read and making profit in the process.
The second reason is the ability of the Adsense publishers to track not only how their sites are progressing but also the earnings based on the webmaster-defined channels. The recent improvements in the search engines gives webmasters the capability to monitor how their ads are performing using customizable reports that has the capacity to detail page impressions, clicks and click-through rates.
If you are certain that your content is unique and valuable enough that readers would be willing to pay for it, you'll need to select a way to handle payments from your readers. The system could be as easy as asking readers mail you a check in exchange for your putting them on e-mail content distribution list -- a method which offers the advantage of not requiring any advanced Web server security set-up.
The last and final reason is that the advertisers have realized the benefits associated having their ads served on targeted websites. As opposed to those who are no using Adsense in their sites, they are given the option of having other people do their content for them, giving them the benefit of having successful and money-generating web sites.
Most PPC ads are text, but some PPC networks also sell image and Flash ads. Ads are sold and displayed based on an auction system, where advertisers bid on selected keywords and phrases that appear on network websites. The ad network looks for webpages displaying its ad code, then matches what it determines the content of a webpage to be with the most appropriate keywords and phrases that advertisers have bid upon.
Adsense is all about targeted content, the more targeted your content is, the more target the search engines’ ads will be. There are some web masters and publishers who are focused more on their site contents and how best to maintain them rather than the cash that the ads will generate for them. This is the part where the effectiveness is working its best.
There was a time when people were not yet aware of the money to be achieved from advertisements. The cash generated only came into existence when the webmasters and publishers realized how they can make Adsense be that generator. In those days, the content were the most important factors that is taken quite seriously.
Finding Profitable Keywords For Your Google Adsense Campaign
No doubt that Google Adsense has become the number one player in making money on the internet. The latest claim that I saw advertised was an internet marketer that made over $19,000 in one month. What is their secret? It is simply writing articles and building adsense webpages that use high traffic, or even some traffic, that use profitable keywords. Not just any keywords, profitable keywords. You have to find keywords that your customers use and that your competitors do not use. Their are many tools available and this article will cover just a few of them.
WordTracker is the leading keyword research tool. SEO professionals worldwide use this tool to find profitable keywords. Wordtracker's suggestions are based on over 300 million keywords and phrases that people have used over the previous 90 days. (In other words, there is no "guessing" when you use Wordtracker. Everything is based on the keywords millions of people have actually typed into search engines.)
KeywordDiscovery is also a very popular keyword research tool and is a major competitor to Wordtracker. KeywordDiscovery compiles keyword search statistics from over 180 search engines world wide, to create what they call "the most powerful keyword research tool". It has been noted in a number of reviews that Keyword Discovery returns more words that are relevant than Wordtracker, Yahoo's or Google's suggestion tools.
There are many other tools on the internet that are worth mentioning. They can be used to supplement and verify the profitable keywords that you find using the major keyword tools. They include, the Google search tool, Yahoo Overture, SEO20/20, webconfs website keyword suggestions (you put your competitor's website URL in this one to determine the profitable keywords they are using), and many more.
The SEO20/20 search tool is the most valuable for determining monthly traffic for profitable keywords by search engine. It includes information on the Overture bid prices, total monthly search volume, estimated search volume for Google, Yahoo, MSN, Digital Point (WordTracker), and Nichebot, Google trends, Google Traffic Estimator, Google Suggest, Google Sysnonyms, and Adwords Keyword Tool. It also provides you with links to news searches, directories, blog searches, tag searches, thesaurus, dictionary & encyclopedia, classifieds, products & revies, and local results for your search term. All in all, not a bad tool.
Finding profitable keywords that are often searched for will help you meet your goals of bringing more targeted traffic to your web site and reaching that top ranking that sometimes seems next to impossible. Reach these goals and your profitable keywords will equal Google Adsense Campaign income.
The Basics On How TO Start Making Money With Adsense
There is nothing more rewarding than receiving the check of hard earned money. You must have seen thousands upon thousands of online testimonies of how they 'got rich' from Google Adsense and how they make thousands per week. Some of these stories are not entirely false.
The main secret behind making money from Google Adwords/Adsense program is content. There is no shortcut. Content is the first step behind any successful money making website. Of course, there is SEO-ing, but content is what drives the potential customers to your site. How much you are willing to invest will determine how much you will make per month, but it is possible to make money without spending a dime.
First of all, you will need a website. Assuming your content will be purely textual (since Google spiders crawl on text/keywords), you may either get a domain and hosting or choose to post to a blog, or you could sign up for free ad-supported website. It is recommended that if you plan on making money from your website, you ought to get a website with your own domain name, after all, ad supported hosting defeats the purpose of your money making; plus, you want your website to appear as professional and less congested as possible.
Now that you have a website, the next step is getting content for your site, but we'll get to that at the end of this article.
Now that you have a domain name and a niche, you will have to sign up for the Google Adwords Program. Note that Google Adwords enables you to get paid for advertising and Google Adsense is when you will have to pay for advertising.
Now that you have your domain with efficient hosting, and your Adwords account, you will need to build your site. If you are already a site-creating guru, then you are a step ahead. If not, creating your content site is not purely throwing out HTML pages. Sooner or later, content is going to keep growing and you may either get an efficient content manager or get hired help.
Traffic makes the difference between you making money or you not getting a dime. In order to get traffic, you can either optimize your website or get traffic by spamming. Now, remember that spamming will not get you repeat visitors, and will give your business a very bad reputation, plus, spamming may cost your website not to be listed on search engines, and Google has the right, under the 'Terms and Conditions' to revoke your Adwords account. You definitely do not want to start from scratch.
Traffic can come by word of mouth and efficient SEO-ing. SEO is an enormously broad topic that ranges from content, link popularity, link exchanges, keywords, web description, etc., to website rankings and so on. In order to remain on the top of your niche, you will need to always want your customers coming back. In order to keep that traffic flowing, you will need to keep content coming fresh and keeping your site constantly optimized and up to date. You will need to be aware of most common spider crawling techniques and use it to your advantage.
Another most common made mistake in getting website content free and cheap is to copy other websites or repeat the same information (if you have more than one money-making site). This is a bad move! Search engines will see this duplicate content as spam and remove it from searched results. Also, if you copy and paste content that is not yours and/or of public domain you will be infringing copyright. Copyright infringement is a crime.
As far as content goes, you can hire help to write articles or you can conveniently buy articles in bulk. Bulk articles are normally distributed by renowned companies and usually are more cost-efficient. Bulk content is also good if you are thinking of expanding your site. A renowned company that can help you with content and marketing strategies is the Myrdhinn's Marketing Madness. There are thousands of articles in different niches and since it's from a trustworthy company, you can always return for new quality content.
http://www.myrdhinn.com/members/davidj/products.html
Remember that signing up for Google Adwords is free. If your website gets rejected at first, don't worry. Just build your site and re-apply. As long as your website is legitimate and is not an 'about-me' site, you are more than likely to get approved. Plus, having an Adwords account opens you to the Google community and you can increase your PageRank dramatically.
Good luck on your first check!
Earn Money on Google AdSense using these Three Proven Strategiesy
Google AdSense is a great program that Internet businesses can utilize to make money. If you want to earn a significant amount of money through Google AdSense then read on. You will learn three proven strategies that will optimize your Google AdSense earnings.
Following are three ways to make money using Google AdSense:
1. Add more messages in your email sequence that is driving customers to your website pages that have Google AdSense advertisements. Increasing the frequency of your email messages will provide more chances for Internet visitors to click on your Google AdSense advertisements.
2. Send out a mass email, solo broadcast. Send out an email to drive traffic to your website page that contains the Google AdSense advertisements. Increase the amount of subscribers you have on your list.
3. Increase the amount of money you earn from the advertisements. For example, certain keywords cost more money in Google Adwords. Therefore, you can write articles that contain these high value keywords. You will earn more money through Google AdSense with these higher quality keywords.
Another strategy you can use is to place the keywords in your Title tag. The first 250 words on your website is the second most important piece of information. Write a line then insert a double space. Place keywords in this space. Highlight the keywords so that it is white. This will cause the keywords to blend into the background. Do not use this for search engine marketing! It will hurt you in search engine optimization. It is only used to increase the price you earn from Google Advertisements. The Google spiders see these keywords. However, the human eye will not detect the keywords.
How do you find the high paying keywords? Use www.highpayingkeywords.com. This service provides you a quarterly listing of the high paying keywords. The service costs you money. However, it is a good investment because Google will not give information about the high paying keywords.
Tip: When you communicate with your list, you need to provide relevant content. Don’t just send poor content as filler. Don’t just send an article or email message to provide Google AdSense exposure. You need to provide content that is a benefit for your subscriber list.
How many emails should you send? You can send as many emails as you want. Sending out various emails is at your discretion. If you send out several emails per week it may annoy some of your subscribers. However, these subscribers can be deleted. You want to send out as many emails as you need because they are bound to bring in more orders for your product or service. Plus, it increases the amount of money you earn through Google AdSense if your subscribers click on the Google AdSense advertisements.
Glossary of Forex Terms
Glossary of Forex Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- A -Accrual - The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals , over the period of each deal.
Actualize - The underlying assets or instruments which are traded in the cash market.
Adjustable Peg - Term for an exchange rate regime where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency , often the dollar or French Franc, but where the rate may be changed from time to time. This was the basis of the Bretton Woods system. See peg, and crawling peg.
Adjustment - Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.
Agent Bank - (1) A bank acting for a foreign bank. (2) In the Euro market - the agent bank is the one appointed by the other banks in the syndicate to handle the administration of the loan.
Aggregate Demand - Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and and firms in other countries for good and services.
Aggregate risk - Size of exposure of a bank to a single customer for both spot and forward contracts.
Aggregate Supply - Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.
Agio - Difference in the value between currencies. Also used to describe percentage charges for conversion from paper money into cash, or from a weak into a strong currency.
Appreciation - Describes a currency strengthening in response to market demand rather than by official action.
Arbitrage - The simultaneous purchase and sale on different markets, of the same or equivalent financial instruments to profit from price or currency differentials. The exchange rate differential or Swap points. May be derived from Deposit Rate differentials.
Arbitrage channel - The range of prices within which there will be no possibility to arbitrage between the cash and futures market.
Around - Used in quoting forward "premium / discount". "Five-five around" would mean five point on either side of the present spot value.
Asset Allocation - Dividing instrument funds among markets to achieve diversification or maximum return.
Ask - The price at which the currency or instrument is offered.
Asset - In the context of foreign exchange is the right to receive from a counterparty an amount of currency either in respect of a balance sheet asset (e.g. a loan) or at a specified future date in respect of an unmatched forward Forward or spot deal.
At best - An instruction given to a dealer to buy or sell at the best rate that can be obtained.
At or Better - An order to deal at a specific rate or better.
Authorized Dealer - A financial institution or bank authorized to deal in foreign exchange.
- B -Back Office - Settlement and related processes.
Backwardation - Term referring to the amount that the spot price exceeds the forward price.
Balance of Payments - A systematic record of the economic transactions during a given period for a country. (1) The term is often used to mean either: (i) balance of payments on "current account"; or (ii) the current account plus certain long term capital movements. (2) The combination of the trade balance, current balance, capital account and invisible balance, which together make up the balance of payments total. Prolonged balance of payment deficits tend to lead to restrictions in capital transfers, and or decline in currency values.
Band - The range in which a currency is permitted to move. A system used in the ERM.
Bank line - Line of credit granted by a bank to a customer, also known as a " line".
Bank Rate - The rate at which a central bank is prepared to lend money to its domestic banking system.
Base currency - United States Dollars. The currency to which each transaction shall be converted at the close of each position.
Basis - The difference between the cash price and futures price.
Basis point - For most currencies, denotes the fourth decimal place in exchange rate and represents 1/100 of one percent (.01%). For such currencies as the Japanese Yen, a basis point is the second decimal place when quoted in currency terms or the sixth and seventh decimal places, respectively, when quoted in reciprocal terms.
Basis trading - Taking opposite positions in the cash and futures market with the intention of profiting from favorable movements in the basis.
Basket - A group of currencies normally used to manage the exchange rate of a currency. Sometimes referred to as a unit of account.
Bear market - A prolonged period of generally falling prices.
Bear - An investor who believes that prices are going to fall.
Bid - The price at which a buyer has offered to purchase the currency or instrument.
Book - The summary of currency positions held by a dealer, desk, or room. A total of the assets and liabilities. If the average maturity of the book is less than that of the assets, the bank is said to be running a short and open book. Passing the Book refers normally to transferring the trading of the Banks positions to another office at the close of the day, e.g. from London to New York.
Bretton Woods - The site of the conference which in 1944 led to the establishment of the post war foreign exchange system that remained intact until the early 1970s. The conference resulted in the formation of the IMF. The system fixed currencies in a fixed exchange rate system with 1% fluctuations of the currency to gold or the dollar.
Broker - Brings buyers and sellers together for a commission paid by the initiator of the transaction. Brokers do not take market positions.
Bull market - A prolonged period of generally rising prices.
Bull - An investor who believes that prices are going to rise.
Bundesbank - Central Bank of Germany.
Buying Rate - Rate at which the market and a market maker in particular is willing to buy the currency. Sometimes called bid rate.
- C -Cable - A term used in the foreign exchange market for the US Dollar/British Pound rate.
Capital Risk - The risk arising from a bank having to pay to the counter party with out knowing whether the other party will or is able to meet its side of the bargain. see Herstatt.
Carry - The interest cost of financing securities or other financial instruments held.
Cash Delivery - Same day settlement.
Cash market - The market in the actual financial instrument on which a futures or options contract is based.
Cash - normally refers to an exchange transaction contracted for settlement on the day the deal is struck. This term is mainly used in the North American markets and those countries which rely for foreign exchange services on these markets because of time zone preference i.e. Latin America. In Europe and Asia, cash transactions are often referred to as value same day deals.
Cash and Carry - The buying of an asset today and selling a future contract on the asset. A reverse cash and carry is possible by selling an asset and buying a future.
Cash Settlement - A procedure for settling futures contract where the cash difference between the future and the market price is paid instead of physical delivery.
Central Bank - A nations main regulatory bank. Traditionally, its primary responsibility is development and implementation of monetary policy.
Central Rate - Exchange rates against the ECU adopted for each currency within the EMS.Currencies have limited movement from the central rate according to the relevant band.
Chartist - An individual who studies graphs and charts of historic data to find trends and predict trend reversals which include the observance of certain patterns and characteristics of the charts to derive resistance levels, head and shoulders patterns, and double bottom or double top patterns which are thought to indicate trend reversals.
Clean float - An exchange rate that is not materially effected by official intervention.
Closed position - A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency.
Commission - The fee that a broker may charge clients for dealing on their behalf.
Confirmation - A memorandum to the other party describing all the relevant details of the transaction.
Contract - An agreement to buy or sell a specified amount of a particular currency or option for a specified month in the future (See Futures contract).
Conversion Account - A general ledger account representing the uncovered position in a particular currency. Such accounts are referred to as Position Accounts.
Conversion - The process by which an asset or liability denominated in one currency is exchanged for an asset or liability denominated in another currency.
Conversion arbitrage - A transaction where the asset is purchased and buys a put option and sells a call option on the asset purchased, each option having the same exercise price and expiry.
Convertible currency - A currency that can be freely exchanged for another currency (and or gold) without special authorization from the central bank.
Copey - Slang for the Danish krone.
Correspondent Bank - The foreign banks representative who regularly performs services for a bank which has no branch in the relevant centre, e.g. to facilitate the transfer of funds. In the US this often occurs domestically due to inter state banking restrictions.
Counterparty - The other organisation or party with whom the exchange deal is being transacted.
Countervalue - Where a person buys a currency against the dollar it is the dollar value of the transaction.
Country risk - The risk attached to a borrower by virtue of its location in a particular country. This involves examination of economic, political and geographical factors. Various organisations generate country risk tables.
Cover - (1) To take out a forward foreign exchange contract. (2) To close out a short position by buying currency or securities which have been sold.
Covered Arbitrage - Arbitrage between financial instruments denominated in different currencies, using forward cover to eliminate exchange risk.
Covered Margin - The interest rate margin between two instruments denominated in different currencies after taking account of the cost of forward cover.
Crawling peg - A method of exchange rate adjustment; the rate is fixed/ pegged, but adjusted at certain intervals in line with certain economic or market indicators.
Credit Risk - Risk of loss that may arise on outstanding contracts should a counter party default on its obligations.
Cross deal - A foreign exchange deal entered into involving two currencies, neither of which is the base currency.
Cross rates - Rates between two currencies, neither of which is the US Dollar.
Current Account - The net balance of a country's international payment arising from exports and imports together with unilateral transfers such as aid and migrant remittances. It excludes capital flows.
- D -Day trader - Speculators who take positions in commodities which are then liquidated prior to the close of the same trading day.
Deal date - The date on which a transaction is agreed upon.
Deal Ticket - The primary method of recording the basic information relating to a transaction.
Dealer - One who, as opposed to a broker, acts as a principle in all transactions, buying and selling for its own accounts.
Deflator - Difference between real and nominal Gross National Product, which is equivalent to the overall inflation rate.
Delivery date - The date of maturity of the contract, when the exchange of the currencies is made This date is more commonly known as the value date in the FX or Money markets.
Delivery Risk - A term to describe when a counterparty will not be able to complete his side of the deal, although willing to do so.
Depreciation - A fall in the value of a currency due to market forces rather than due to official action.
Desk - Term referring to a group dealing with a specific currency or currencies.
Details - All the information required to finalize a foreign exchange transaction, i.e. name, rate, dates, and point of delivery.
Devaluation - Deliberate downward adjustment of a currency against its fixed parities or bands, normally by formal announcement.
Direct quotation - Quoting in fixed units of foreign currency against variable amounts of the domestic currency.
Dirty Float - Floating a currency when the rate is controlled by intervention by the monetary authorities.
- E -Easing - Modest decline in price.
Economic Indicator - A statistics which indicates current economic growth rates and trends such as retail sales and employment.
ECU - European Currency Unit.
EDI - Electronic Data Interchange.
Effective Exchange Rate - An attempt to summarize the effects on a country's trade balance of its currency's changes against other currencies.
EFT - Electronic Fund Transfer.
EMS - European Monetary System.
European Monetary System - A system designed to stabilize if not eliminate exchange risk between member states of the EMS as part of the economic convergence policy of the EU. It permits currencies to move in a measured fashion (divergence indicator) within agreed bands (the parity grid) with respect to the ECU and consequently with each other.
Exchange control - Rules used to preserve or protect the value of a countries currency.
Exotic - A less broadly traded currency.
Exposure - In foreign exchange, a potential for gain or loss because of movement in foreign exchange rate. There are three primary types of exposure:
Economic: The change in future earning power and cash flow arising from a change in exchange rates. In effect, it represents a change in the value of a company holding foreign currency. Transnational: A potential gain or loss arising from transactions that will definitely occur in the future, are currently in progress, or could have already been completed. A signed but not shipped sales contract, a receivable or foreign currency payment collected but not converted to local currency would all be examples of transaction exposure. Translation: The potential for change in reported earnings and/or the book value of the consolidated company equity accounts, as the result of a change in foreign exchange rates used to translate the foreign currency statements of subsidiaries and affiliates known as accounting exposure. - F -Fast market - Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.
Fed Fund Rate - The interest rate on Fed funds. This is a closely watched short term interest rate as it signals the Feds view as to the state of the money supply.
Fed - The United States Federal Reserve. Federal Deposit Insurance Corporation Membership is compulsory for Federal Reserve members. The corporation had deep involvement in the Savings and Loans crisis of the late 80s.
Federal Reserve System - The central banking system in the United States.
Fill or Kill - An order which must be entered for trading, normally in a pit three times, if not filled is immediately canceled.
Fisher Effect - The relationship that exists between interest rates and exchange rate movements, so that in an ideal situation interest rate differentials would be exactly off set by exchange rate movements. See interest rate parity.
Fixed exchange rate - Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band.
Flexible exchange rate - Exchange rates with a fixed parity against one or more currencies with frequent revaluation's. A form of managed float.
Floating exchange rate - An exchange rate where the value is determined by market forces. Even floating currencies are subject to intervention by the monetary authorities. When such activity is frequent the float is known as a dirty float.
FOMC - Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.
Foreign Exchange - The purchase or sale of a currency against sale or purchase of another.
Forex - Term commonly used when referring to the foreign exchange market.
Forex Club - Groups formed in the major financial centers to encourage educational and social contacts between foreign exchange dealers, under the umbrella of Association Cambiste International.
Forex Signals - A software or service designed to broadcast buy/sell recommendations to a subscriber base.
Forward margins - Discounts or premiums between spot rate and the forward rate for a currency. Normally quoted in points.
Forward Operations - Foreign exchange transactions, on which the fulfillment of the mutual delivery obligations is made on a date later than the second business day after the transaction was concluded.
Forward Outright - A commitment to buy or sell a currency for delivery on a specified future date or period. The price is quoted as the Spot rate minus or plus the forward points for the chosen period.
Forward Rate - Forward rates are quoted in terms of forward points , which represents the difference between the forward and spot rates. In order to obtain the forward rate from the actual exchange rate the forward points are either added or subtracted from the exchange rate. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction. The base currency with the higher interest rate is said to be at a discount to the lower interest rate quoted currency in the forward market. Therefor the forward points are subtracted from the spot rate. Similarly, the lower interest rate base currency is said to be at a premium, and the forward points are added to the spot rate to obtain the forward rate.
Free Reserves - Total reserves held by a bank less the reserves required by the authority.
Front Office - The activities carried out by the dealer , normal trading activities.
Fundamentals - The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
FX - Foreign Exchange.
- G -G7 - The seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy.
G10 - G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.
Gap - A mismatch between maturities and cash flows in a bank or individual dealers position book. Gap exposure is effectively interest rate exposure.
Going long - The purchase of a stock, commodity, or currency for investment or speculation.
Going short - The selling of a currency or instrument not owned by the seller.
Gold Standard - The original system for supporting the value of currency issued. The was that where the price of gold is fixed against the currency it means that the increased supply of gold does not lower the price of gold but causes prices to increase.
Good until canceled - An instruction to a broker that unlike normal practice the order does not expire at the end of the trading day, although normally terminates at the end of the trading month.
Grid - Fixed margin within which exchange rates are allowed to fluctuate.
Gross Domestic Product - Total value of a country's output, income or expenditure produced within the country's physical borders.
Gross National Product - Gross domestic product plus " factor income from abroad" - income earned from investment or work abroad.
- H - Hard currency - Any one of the major world currencies that is well traded and easily converted into other currencies.
Head and Shoulders - A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate a that a further major fall is imminent. The breach of the neckline is the indication to sell.
Hedge - The purchase or sale of options or futures contracts as a temporary substitute for a transaction to be made at a later date. Usually it involves opposite positions in the cash or futures or options market.
Hedged position - One open buy position and one open sell position in the same currency.
Hit the bid - Acceptance of purchasing at the offer or selling at the bid.
- I - IMF - International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term and encourage liberalization of exchange rates. The IMF supports countries with balance of payments problems with the provision of loans.
IMM - International Monetary Market part of the Chicago Mercantile Exchange that lists a number of currency and financial futures Implied volatilityA measurement of the market's expected price range of the underlying currency futures based on the traded option premiums.
Implied Rates - The interest rate determined by calculating the difference between spot and forward rates.
Indicative quote - A market-maker's price which is not firm.
Inflation - Continued rise in the general price level in conjunction with a related drop in purchasing power. Sometimes referred to as an excessive movement in such price levels.
Initial margin - The margin required by a Foreign Exchange firm to initiate the buying or selling of a determined amount of currency.
Inter-bank rates - The bid and offer rates at which international banks place deposits with each other. The basis of the Interbank market.
Interest Arbitrage - Switching into another currency by buying spot and selling forward, and investing proceeds in order to obtain a higher interest yield. Interest arbitrage can be inward, i.e. from foreign currency into the local one or outward, i.e. from the local currency to the foreign one. Sometimes better results can be obtained by not selling the forward interest amount. In that case some treat it as no longer being a complete arbitrage, as if the exchange rate moved against the arbitrageur, the profit on the transaction may create a loss.
Interest parity - One currency is in interest parity with another when the difference in the interest rates is equalized by the forward exchange margins. For instance, if the operative interest rate in Japan is 3% and in the UK 6%, a forward premium of 3% for the Japanese Yen against sterling would bring about interest parity.
Interest rate Swaps - An agreement to swap interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. It is the interest cash flows be they payments or receipts that are exchanged.
Internationalization - Referring to a currency that is widely used to denominate trade and credit transactions by non residents of the country of issue. US dollar and Swiss Franc are examples.
Intervention - Action by a central bank to effect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.
- K -Kiwi - Slang for the New Zealand dollar.
- L -Leading Indicators - Statistic that are considered to precede changes in economic growth rates and total business activity, e.g. factory orders.
Liability - In terms of foreign exchange , the obligation to deliver to a counterparty an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un-matured forward or spot transaction.
Limit order - A request to deal as a buyer or seller for a foreign currency transaction at a specified price, or at a better price, if obtainable.
Liquidation - Any transaction that offsets or closes out a previously established position.
Liquidity - The ability of a market to accept large transactions.
- M - Maintenance margin - The minimum margin which an investor must keep on deposit in a margin account at all times in respect of each open contract.
Make a market - A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.
Managed float - When the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a required direction.
Margin call - A claim by one's broker or dealer for additional good faith performance monies usually issued when an investor's account suffers adverse price movements.
Margin - The amount of money or collateral that must be, in the first instance, provided or thereafter, maintained, to ensure against losses on open contracts. Initial must be placed before a trade is entered into. Maintenance or Variation margin must be added to initial to maintain against losses on open positions. Sometimes herein the amount that needs to be present to establish or thereafter maintained is sometimes herein referred to as necessary margin.
Mark to market - The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.
Market maker - A market maker is a person or firm authorized to create and maintain a market in an instrument.
Market order - An order to buy or sell a financial instrument immediately at the best possible price.
Micro economics - The study of economic activity as it applies to individual firms or well defined small groups of individuals or economic sectors.
Mid-price or middle rate - The price half-way between the two prices, or the average of both buying and selling prices offered by the market makers.
Minimum price fluctuation - The smallest increment of market price movement possible in a given futures contract.
Monetary Base - Currency in circulation plus banks' required and excess deposits at the central bank.
Moving Average - A way of smoothing a set of data, widely used in price time series.
- N -Net Position - The amount of currency bought or sold which have not yet been offset by opposite transactions.
- O -Odd Lot - A non standard amount for a transaction.
Offer - The price at which a seller is willing to sell. The best offer is the lowest such price available.
Offset - The closing-out or liquidation of a futures position.
Off-shore - The operations of a financial institution which although physically located in a country, has little connection with that country's financial systems. In certain countries a bank is not permitted to do business in the domestic market but only with other foreign banks. This is known as an off shore banking unit.
Overnight limit - Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmonitored exposures.
Overnight - A deal from today until the next business day.
- P -Parity - (1) Foreign exchange dealer's slang for your price is the correct market price. (2) Official rates in terms of SDR or other pegging currency.
Parities - The value of one currency in terms of another.
Pegged - A system where a currency moves in line with another currency, some pegs are strict while others have bands of movement.
Pip - One unit of price change in the bid/ask price of a currency. For most currencies, it denotes the fourth decimal place in an exchange rate and represents 1/100 of one percent (.01%).
Position - The netted total commitments in a given currency. A position can be either flat or square (no exposure), long, (more currency bought than sold), or short ( more currency sold than bought).
Profit Taking - The unwinding of a position to realize profits.
- Q -Quote - An indicative price. The price quoted for information purposes but not to deal.
- R - Rally - A recovery in price after a period of decline.
Range - The difference between the highest and lowest price of a future recorded during a given trading session.
Rate - (1) The price of one currency in terms of another, normally against USD. (2) Assessment of the credit worthiness of an institution.
Reaction - A decline in prices following an advance.
Reciprocal currency - A currency that is normally quoted as dollars per unit of currency rather than the normal quote method of units of currency per dollar. Sterling is the most common example.
Resistance Point or Level - A price recognized by technical analysts as a price which is likely to result in a rebound but if broken through is likely to result in a significant price movement.
Revaluation - Increase in the exchange rate of a currency as a result of official action.
Revaluation rate - The rate for any period or currency which is used to revalue a position or book.
Risk management - The identification and acceptance or offsetting of the risks threatening the profitability or existence of an organisation. With respect to foreign exchange involves among others consideration of market, sovereign, country, transfer, delivery, credit, and counterparty risk.
Risk Position - An asset or liability, which is exposed to fluctuations in value through changes in exchange rates or interest rates.
Rollover - An overnight swap, specifically the next business day against the following business day (also called Tomorrow Next, abbreviated to Tom-Next).
Round trip - Buying and selling of a specified amount of currency.
- S - Same day transaction - A transaction that matures on the day the transaction takes place.
Selling rate - Rate at which a bank is willing to sell foreign currency.
Settlement date - The date upon which foreign exchange contracts settle.
Settlement Risk - Where a payment is made to a counter party before the counter value payment has been made. The risk is that the counter party's payment will not be received.
Short sale - The sale of a specified amount of currency not owned by the seller at the time of the trade. Short sales are usually made in expectation of a decline in the price.
Short-term interest rates - Normally the 90 day rate.
Sidelined - A major currency that is lightly traded due to major market interest being in another currency pair.
Slippage - Refers to the negative (or depreciating) pip value between where a stop loss order becomes a market order and where that market order may be filled.
Soft Market - More potential sellers than buyers, which creates an environment where rapid price falls are likely.
Spot - (1) The most common foreign exchange transaction. (2) Spot or Spot date refers to the spot transaction value date that requires settlement within two business days, subject to value date calculation.
Spot next - The overnight swap from the spot date to the next business day.
Spot price/rate - The price at which the currency is currently trading in the spot market.
Spread - (l)The difference between the bid and ask price of a currency. (2) The difference between the price of two related futures contracts.
Square - Purchase and sales are in balance and thus the dealer has no open position.
Squawk Box - A speaker connected to a phone often used in broker trading desks.
Squeeze - Action by a central bank to reduce supply in order to increase the price of money.
Stable market - An active market which can absorb large sale or purchases of currency without major moves.
Standard - A term referring to certain normal amounts and maturities for dealing.
Sterilization - Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market.
Sterling - British pound, otherwise known as cable.
Stocky - Market slang for Swedish Krona.
Stop-Loss order - Order to buy or sell at the best available price when a given price threshold has been reached.
Support levels - When an exchange rate depreciates or appreciates to a level where (1) Technical analysis techniques suggest that the currency will rebound, or not go below; (2) the monetary authorities intervene to stop any further down ward movement. See resistance point.
Swap price - A price as a differential between two dates of the swap.
Swap - The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.
Swissy - Market slang for Swiss Franc.
- T -Technical Correction - An adjustment to price not based on market sentiment but technical factors such as volume and charting.
Thin market - A market in which trading volume is low and in which consequently bid and ask quotes are wide and the liquidity of the instrument traded is low.
Thursday/Friday Dollars - A US foreign exchange technicality. If a foreign bank buys dollars on Tuesday for Thursday delivery. If the bank leaves the funds overnight and transfers them on Friday by means of a clearing house cheque then clearance is not until Monday, the next working day. Higher interest rates for this period are thus available.
Tick - A minimum change in price, up or down.
Today/Tomorrow - Simultaneous buying of a currency for delivery the following day and selling for the spot day, or vice versa. Also referred to as overnight.
Tomorrow next (Tom next) - Simultaneous buying of a currency for delivery the following day and selling for the spot day or vice versa.
Trade date - The date on which a trade occurs.
Tradeable amount - Smallest transaction size acceptable.
Transaction date - The date on which a trade occurs.
Transaction - The buying or selling of currencies resulting from the execution of an order.
Two Tier market - A dual exchange rate system where normally only one rate is open to market pressure, e.g. South Africa.
Two-Way quotation - When a dealer quotes both buying and selling rates for foreign exchange transactions.
- U -Uncovered - Another term for an open position.
Under-valuation - An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.
Up tick - A transaction executed at a price greater than the previous transaction.
- V -Value Date - For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country(ies) of the foreign currency(ies). The value date then moves forward a day.
Value Spot - Normally settlement for two working days from today. See value date.
Volatility - A measure of the amount by which an asset price is expected to fluctuate over a given period.
Vostro Account - A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.
- W -Wash trade - A matched deal which produces neither a gain nor a loss.
Whipsaw - Term for where a trader takes a position, then has to move against it triggering stop loss limits and liquidation of positions, then having to move in the original direction. Normally occurs in volatile markets.
Working day - A day on which the banks in a currency's principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both financial centre's are open for business (all relevant
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
- A -Accrual - The apportionment of premiums and discounts on forward exchange transactions that relate directly to deposit swap (Interest Arbitrage) deals , over the period of each deal.
Actualize - The underlying assets or instruments which are traded in the cash market.
Adjustable Peg - Term for an exchange rate regime where a country's exchange rate is "pegged" (i.e. fixed) in relation to another currency , often the dollar or French Franc, but where the rate may be changed from time to time. This was the basis of the Bretton Woods system. See peg, and crawling peg.
Adjustment - Official action normally by either change in the internal economic policies to correct a payment imbalance or in the official currency rate or.
Agent Bank - (1) A bank acting for a foreign bank. (2) In the Euro market - the agent bank is the one appointed by the other banks in the syndicate to handle the administration of the loan.
Aggregate Demand - Total demand for goods and services in the economy. It includes private and public sector demand for goods and services within the country and the demand of consumers and and firms in other countries for good and services.
Aggregate risk - Size of exposure of a bank to a single customer for both spot and forward contracts.
Aggregate Supply - Total supply of goods and services in the economy from domestic sources (including imports) available to meet aggregate demand.
Agio - Difference in the value between currencies. Also used to describe percentage charges for conversion from paper money into cash, or from a weak into a strong currency.
Appreciation - Describes a currency strengthening in response to market demand rather than by official action.
Arbitrage - The simultaneous purchase and sale on different markets, of the same or equivalent financial instruments to profit from price or currency differentials. The exchange rate differential or Swap points. May be derived from Deposit Rate differentials.
Arbitrage channel - The range of prices within which there will be no possibility to arbitrage between the cash and futures market.
Around - Used in quoting forward "premium / discount". "Five-five around" would mean five point on either side of the present spot value.
Asset Allocation - Dividing instrument funds among markets to achieve diversification or maximum return.
Ask - The price at which the currency or instrument is offered.
Asset - In the context of foreign exchange is the right to receive from a counterparty an amount of currency either in respect of a balance sheet asset (e.g. a loan) or at a specified future date in respect of an unmatched forward Forward or spot deal.
At best - An instruction given to a dealer to buy or sell at the best rate that can be obtained.
At or Better - An order to deal at a specific rate or better.
Authorized Dealer - A financial institution or bank authorized to deal in foreign exchange.
- B -Back Office - Settlement and related processes.
Backwardation - Term referring to the amount that the spot price exceeds the forward price.
Balance of Payments - A systematic record of the economic transactions during a given period for a country. (1) The term is often used to mean either: (i) balance of payments on "current account"; or (ii) the current account plus certain long term capital movements. (2) The combination of the trade balance, current balance, capital account and invisible balance, which together make up the balance of payments total. Prolonged balance of payment deficits tend to lead to restrictions in capital transfers, and or decline in currency values.
Band - The range in which a currency is permitted to move. A system used in the ERM.
Bank line - Line of credit granted by a bank to a customer, also known as a " line".
Bank Rate - The rate at which a central bank is prepared to lend money to its domestic banking system.
Base currency - United States Dollars. The currency to which each transaction shall be converted at the close of each position.
Basis - The difference between the cash price and futures price.
Basis point - For most currencies, denotes the fourth decimal place in exchange rate and represents 1/100 of one percent (.01%). For such currencies as the Japanese Yen, a basis point is the second decimal place when quoted in currency terms or the sixth and seventh decimal places, respectively, when quoted in reciprocal terms.
Basis trading - Taking opposite positions in the cash and futures market with the intention of profiting from favorable movements in the basis.
Basket - A group of currencies normally used to manage the exchange rate of a currency. Sometimes referred to as a unit of account.
Bear market - A prolonged period of generally falling prices.
Bear - An investor who believes that prices are going to fall.
Bid - The price at which a buyer has offered to purchase the currency or instrument.
Book - The summary of currency positions held by a dealer, desk, or room. A total of the assets and liabilities. If the average maturity of the book is less than that of the assets, the bank is said to be running a short and open book. Passing the Book refers normally to transferring the trading of the Banks positions to another office at the close of the day, e.g. from London to New York.
Bretton Woods - The site of the conference which in 1944 led to the establishment of the post war foreign exchange system that remained intact until the early 1970s. The conference resulted in the formation of the IMF. The system fixed currencies in a fixed exchange rate system with 1% fluctuations of the currency to gold or the dollar.
Broker - Brings buyers and sellers together for a commission paid by the initiator of the transaction. Brokers do not take market positions.
Bull market - A prolonged period of generally rising prices.
Bull - An investor who believes that prices are going to rise.
Bundesbank - Central Bank of Germany.
Buying Rate - Rate at which the market and a market maker in particular is willing to buy the currency. Sometimes called bid rate.
- C -Cable - A term used in the foreign exchange market for the US Dollar/British Pound rate.
Capital Risk - The risk arising from a bank having to pay to the counter party with out knowing whether the other party will or is able to meet its side of the bargain. see Herstatt.
Carry - The interest cost of financing securities or other financial instruments held.
Cash Delivery - Same day settlement.
Cash market - The market in the actual financial instrument on which a futures or options contract is based.
Cash - normally refers to an exchange transaction contracted for settlement on the day the deal is struck. This term is mainly used in the North American markets and those countries which rely for foreign exchange services on these markets because of time zone preference i.e. Latin America. In Europe and Asia, cash transactions are often referred to as value same day deals.
Cash and Carry - The buying of an asset today and selling a future contract on the asset. A reverse cash and carry is possible by selling an asset and buying a future.
Cash Settlement - A procedure for settling futures contract where the cash difference between the future and the market price is paid instead of physical delivery.
Central Bank - A nations main regulatory bank. Traditionally, its primary responsibility is development and implementation of monetary policy.
Central Rate - Exchange rates against the ECU adopted for each currency within the EMS.Currencies have limited movement from the central rate according to the relevant band.
Chartist - An individual who studies graphs and charts of historic data to find trends and predict trend reversals which include the observance of certain patterns and characteristics of the charts to derive resistance levels, head and shoulders patterns, and double bottom or double top patterns which are thought to indicate trend reversals.
Clean float - An exchange rate that is not materially effected by official intervention.
Closed position - A transaction which leaves the trade with a zero net commitment to the market with respect to a particular currency.
Commission - The fee that a broker may charge clients for dealing on their behalf.
Confirmation - A memorandum to the other party describing all the relevant details of the transaction.
Contract - An agreement to buy or sell a specified amount of a particular currency or option for a specified month in the future (See Futures contract).
Conversion Account - A general ledger account representing the uncovered position in a particular currency. Such accounts are referred to as Position Accounts.
Conversion - The process by which an asset or liability denominated in one currency is exchanged for an asset or liability denominated in another currency.
Conversion arbitrage - A transaction where the asset is purchased and buys a put option and sells a call option on the asset purchased, each option having the same exercise price and expiry.
Convertible currency - A currency that can be freely exchanged for another currency (and or gold) without special authorization from the central bank.
Copey - Slang for the Danish krone.
Correspondent Bank - The foreign banks representative who regularly performs services for a bank which has no branch in the relevant centre, e.g. to facilitate the transfer of funds. In the US this often occurs domestically due to inter state banking restrictions.
Counterparty - The other organisation or party with whom the exchange deal is being transacted.
Countervalue - Where a person buys a currency against the dollar it is the dollar value of the transaction.
Country risk - The risk attached to a borrower by virtue of its location in a particular country. This involves examination of economic, political and geographical factors. Various organisations generate country risk tables.
Cover - (1) To take out a forward foreign exchange contract. (2) To close out a short position by buying currency or securities which have been sold.
Covered Arbitrage - Arbitrage between financial instruments denominated in different currencies, using forward cover to eliminate exchange risk.
Covered Margin - The interest rate margin between two instruments denominated in different currencies after taking account of the cost of forward cover.
Crawling peg - A method of exchange rate adjustment; the rate is fixed/ pegged, but adjusted at certain intervals in line with certain economic or market indicators.
Credit Risk - Risk of loss that may arise on outstanding contracts should a counter party default on its obligations.
Cross deal - A foreign exchange deal entered into involving two currencies, neither of which is the base currency.
Cross rates - Rates between two currencies, neither of which is the US Dollar.
Current Account - The net balance of a country's international payment arising from exports and imports together with unilateral transfers such as aid and migrant remittances. It excludes capital flows.
- D -Day trader - Speculators who take positions in commodities which are then liquidated prior to the close of the same trading day.
Deal date - The date on which a transaction is agreed upon.
Deal Ticket - The primary method of recording the basic information relating to a transaction.
Dealer - One who, as opposed to a broker, acts as a principle in all transactions, buying and selling for its own accounts.
Deflator - Difference between real and nominal Gross National Product, which is equivalent to the overall inflation rate.
Delivery date - The date of maturity of the contract, when the exchange of the currencies is made This date is more commonly known as the value date in the FX or Money markets.
Delivery Risk - A term to describe when a counterparty will not be able to complete his side of the deal, although willing to do so.
Depreciation - A fall in the value of a currency due to market forces rather than due to official action.
Desk - Term referring to a group dealing with a specific currency or currencies.
Details - All the information required to finalize a foreign exchange transaction, i.e. name, rate, dates, and point of delivery.
Devaluation - Deliberate downward adjustment of a currency against its fixed parities or bands, normally by formal announcement.
Direct quotation - Quoting in fixed units of foreign currency against variable amounts of the domestic currency.
Dirty Float - Floating a currency when the rate is controlled by intervention by the monetary authorities.
- E -Easing - Modest decline in price.
Economic Indicator - A statistics which indicates current economic growth rates and trends such as retail sales and employment.
ECU - European Currency Unit.
EDI - Electronic Data Interchange.
Effective Exchange Rate - An attempt to summarize the effects on a country's trade balance of its currency's changes against other currencies.
EFT - Electronic Fund Transfer.
EMS - European Monetary System.
European Monetary System - A system designed to stabilize if not eliminate exchange risk between member states of the EMS as part of the economic convergence policy of the EU. It permits currencies to move in a measured fashion (divergence indicator) within agreed bands (the parity grid) with respect to the ECU and consequently with each other.
Exchange control - Rules used to preserve or protect the value of a countries currency.
Exotic - A less broadly traded currency.
Exposure - In foreign exchange, a potential for gain or loss because of movement in foreign exchange rate. There are three primary types of exposure:
Economic: The change in future earning power and cash flow arising from a change in exchange rates. In effect, it represents a change in the value of a company holding foreign currency. Transnational: A potential gain or loss arising from transactions that will definitely occur in the future, are currently in progress, or could have already been completed. A signed but not shipped sales contract, a receivable or foreign currency payment collected but not converted to local currency would all be examples of transaction exposure. Translation: The potential for change in reported earnings and/or the book value of the consolidated company equity accounts, as the result of a change in foreign exchange rates used to translate the foreign currency statements of subsidiaries and affiliates known as accounting exposure. - F -Fast market - Rapid movement in a market caused by strong interest by buyers and/or sellers. In such circumstances price levels may be omitted and bid and offer quotations may occur too rapidly to be fully reported.
Fed Fund Rate - The interest rate on Fed funds. This is a closely watched short term interest rate as it signals the Feds view as to the state of the money supply.
Fed - The United States Federal Reserve. Federal Deposit Insurance Corporation Membership is compulsory for Federal Reserve members. The corporation had deep involvement in the Savings and Loans crisis of the late 80s.
Federal Reserve System - The central banking system in the United States.
Fill or Kill - An order which must be entered for trading, normally in a pit three times, if not filled is immediately canceled.
Fisher Effect - The relationship that exists between interest rates and exchange rate movements, so that in an ideal situation interest rate differentials would be exactly off set by exchange rate movements. See interest rate parity.
Fixed exchange rate - Official rate set by monetary authorities. Often the fixed exchange rate permits fluctuation within a band.
Flexible exchange rate - Exchange rates with a fixed parity against one or more currencies with frequent revaluation's. A form of managed float.
Floating exchange rate - An exchange rate where the value is determined by market forces. Even floating currencies are subject to intervention by the monetary authorities. When such activity is frequent the float is known as a dirty float.
FOMC - Federal Open Market Committee, the committee that sets money supply targets in the US which tend to be implemented through Fed Fund interest rates etc.
Foreign Exchange - The purchase or sale of a currency against sale or purchase of another.
Forex - Term commonly used when referring to the foreign exchange market.
Forex Club - Groups formed in the major financial centers to encourage educational and social contacts between foreign exchange dealers, under the umbrella of Association Cambiste International.
Forex Signals - A software or service designed to broadcast buy/sell recommendations to a subscriber base.
Forward margins - Discounts or premiums between spot rate and the forward rate for a currency. Normally quoted in points.
Forward Operations - Foreign exchange transactions, on which the fulfillment of the mutual delivery obligations is made on a date later than the second business day after the transaction was concluded.
Forward Outright - A commitment to buy or sell a currency for delivery on a specified future date or period. The price is quoted as the Spot rate minus or plus the forward points for the chosen period.
Forward Rate - Forward rates are quoted in terms of forward points , which represents the difference between the forward and spot rates. In order to obtain the forward rate from the actual exchange rate the forward points are either added or subtracted from the exchange rate. The decision to subtract or add points is determined by the differential between the deposit rates for both currencies concerned in the transaction. The base currency with the higher interest rate is said to be at a discount to the lower interest rate quoted currency in the forward market. Therefor the forward points are subtracted from the spot rate. Similarly, the lower interest rate base currency is said to be at a premium, and the forward points are added to the spot rate to obtain the forward rate.
Free Reserves - Total reserves held by a bank less the reserves required by the authority.
Front Office - The activities carried out by the dealer , normal trading activities.
Fundamentals - The macro economic factors that are accepted as forming the foundation for the relative value of a currency, these include inflation, growth, trade balance, government deficit, and interest rates.
FX - Foreign Exchange.
- G -G7 - The seven leading industrial countries, being US , Germany, Japan, France, UK, Canada, Italy.
G10 - G7 plus Belgium, Netherlands and Sweden, a group associated with IMF discussions. Switzerland is sometimes peripherally involved.
Gap - A mismatch between maturities and cash flows in a bank or individual dealers position book. Gap exposure is effectively interest rate exposure.
Going long - The purchase of a stock, commodity, or currency for investment or speculation.
Going short - The selling of a currency or instrument not owned by the seller.
Gold Standard - The original system for supporting the value of currency issued. The was that where the price of gold is fixed against the currency it means that the increased supply of gold does not lower the price of gold but causes prices to increase.
Good until canceled - An instruction to a broker that unlike normal practice the order does not expire at the end of the trading day, although normally terminates at the end of the trading month.
Grid - Fixed margin within which exchange rates are allowed to fluctuate.
Gross Domestic Product - Total value of a country's output, income or expenditure produced within the country's physical borders.
Gross National Product - Gross domestic product plus " factor income from abroad" - income earned from investment or work abroad.
- H - Hard currency - Any one of the major world currencies that is well traded and easily converted into other currencies.
Head and Shoulders - A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate a that a further major fall is imminent. The breach of the neckline is the indication to sell.
Hedge - The purchase or sale of options or futures contracts as a temporary substitute for a transaction to be made at a later date. Usually it involves opposite positions in the cash or futures or options market.
Hedged position - One open buy position and one open sell position in the same currency.
Hit the bid - Acceptance of purchasing at the offer or selling at the bid.
- I - IMF - International Monetary Fund, established in 1946 to provide international liquidity on a short and medium term and encourage liberalization of exchange rates. The IMF supports countries with balance of payments problems with the provision of loans.
IMM - International Monetary Market part of the Chicago Mercantile Exchange that lists a number of currency and financial futures Implied volatilityA measurement of the market's expected price range of the underlying currency futures based on the traded option premiums.
Implied Rates - The interest rate determined by calculating the difference between spot and forward rates.
Indicative quote - A market-maker's price which is not firm.
Inflation - Continued rise in the general price level in conjunction with a related drop in purchasing power. Sometimes referred to as an excessive movement in such price levels.
Initial margin - The margin required by a Foreign Exchange firm to initiate the buying or selling of a determined amount of currency.
Inter-bank rates - The bid and offer rates at which international banks place deposits with each other. The basis of the Interbank market.
Interest Arbitrage - Switching into another currency by buying spot and selling forward, and investing proceeds in order to obtain a higher interest yield. Interest arbitrage can be inward, i.e. from foreign currency into the local one or outward, i.e. from the local currency to the foreign one. Sometimes better results can be obtained by not selling the forward interest amount. In that case some treat it as no longer being a complete arbitrage, as if the exchange rate moved against the arbitrageur, the profit on the transaction may create a loss.
Interest parity - One currency is in interest parity with another when the difference in the interest rates is equalized by the forward exchange margins. For instance, if the operative interest rate in Japan is 3% and in the UK 6%, a forward premium of 3% for the Japanese Yen against sterling would bring about interest parity.
Interest rate Swaps - An agreement to swap interest rate exposures from floating to fixed or vice versa. There is no swap of the principal. It is the interest cash flows be they payments or receipts that are exchanged.
Internationalization - Referring to a currency that is widely used to denominate trade and credit transactions by non residents of the country of issue. US dollar and Swiss Franc are examples.
Intervention - Action by a central bank to effect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.
- K -Kiwi - Slang for the New Zealand dollar.
- L -Leading Indicators - Statistic that are considered to precede changes in economic growth rates and total business activity, e.g. factory orders.
Liability - In terms of foreign exchange , the obligation to deliver to a counterparty an amount of currency either in respect of a balance sheet holding at a specified future date or in respect of an un-matured forward or spot transaction.
Limit order - A request to deal as a buyer or seller for a foreign currency transaction at a specified price, or at a better price, if obtainable.
Liquidation - Any transaction that offsets or closes out a previously established position.
Liquidity - The ability of a market to accept large transactions.
- M - Maintenance margin - The minimum margin which an investor must keep on deposit in a margin account at all times in respect of each open contract.
Make a market - A dealer is said to make a market when he or she quotes bid and offer prices at which he or she stands ready to buy and sell.
Managed float - When the monetary authorities intervene regularly in the market to stabilize the rates or to aim the exchange rate in a required direction.
Margin call - A claim by one's broker or dealer for additional good faith performance monies usually issued when an investor's account suffers adverse price movements.
Margin - The amount of money or collateral that must be, in the first instance, provided or thereafter, maintained, to ensure against losses on open contracts. Initial must be placed before a trade is entered into. Maintenance or Variation margin must be added to initial to maintain against losses on open positions. Sometimes herein the amount that needs to be present to establish or thereafter maintained is sometimes herein referred to as necessary margin.
Mark to market - The daily adjustment of an account to reflect accrued profits and losses often required to calculate variations of margins.
Market maker - A market maker is a person or firm authorized to create and maintain a market in an instrument.
Market order - An order to buy or sell a financial instrument immediately at the best possible price.
Micro economics - The study of economic activity as it applies to individual firms or well defined small groups of individuals or economic sectors.
Mid-price or middle rate - The price half-way between the two prices, or the average of both buying and selling prices offered by the market makers.
Minimum price fluctuation - The smallest increment of market price movement possible in a given futures contract.
Monetary Base - Currency in circulation plus banks' required and excess deposits at the central bank.
Moving Average - A way of smoothing a set of data, widely used in price time series.
- N -Net Position - The amount of currency bought or sold which have not yet been offset by opposite transactions.
- O -Odd Lot - A non standard amount for a transaction.
Offer - The price at which a seller is willing to sell. The best offer is the lowest such price available.
Offset - The closing-out or liquidation of a futures position.
Off-shore - The operations of a financial institution which although physically located in a country, has little connection with that country's financial systems. In certain countries a bank is not permitted to do business in the domestic market but only with other foreign banks. This is known as an off shore banking unit.
Overnight limit - Net long or short position in one or more currencies that a dealer can carry over into the next dealing day. Passing the book to other bank dealing rooms in the next trading time zone reduces the need for dealers to maintain these unmonitored exposures.
Overnight - A deal from today until the next business day.
- P -Parity - (1) Foreign exchange dealer's slang for your price is the correct market price. (2) Official rates in terms of SDR or other pegging currency.
Parities - The value of one currency in terms of another.
Pegged - A system where a currency moves in line with another currency, some pegs are strict while others have bands of movement.
Pip - One unit of price change in the bid/ask price of a currency. For most currencies, it denotes the fourth decimal place in an exchange rate and represents 1/100 of one percent (.01%).
Position - The netted total commitments in a given currency. A position can be either flat or square (no exposure), long, (more currency bought than sold), or short ( more currency sold than bought).
Profit Taking - The unwinding of a position to realize profits.
- Q -Quote - An indicative price. The price quoted for information purposes but not to deal.
- R - Rally - A recovery in price after a period of decline.
Range - The difference between the highest and lowest price of a future recorded during a given trading session.
Rate - (1) The price of one currency in terms of another, normally against USD. (2) Assessment of the credit worthiness of an institution.
Reaction - A decline in prices following an advance.
Reciprocal currency - A currency that is normally quoted as dollars per unit of currency rather than the normal quote method of units of currency per dollar. Sterling is the most common example.
Resistance Point or Level - A price recognized by technical analysts as a price which is likely to result in a rebound but if broken through is likely to result in a significant price movement.
Revaluation - Increase in the exchange rate of a currency as a result of official action.
Revaluation rate - The rate for any period or currency which is used to revalue a position or book.
Risk management - The identification and acceptance or offsetting of the risks threatening the profitability or existence of an organisation. With respect to foreign exchange involves among others consideration of market, sovereign, country, transfer, delivery, credit, and counterparty risk.
Risk Position - An asset or liability, which is exposed to fluctuations in value through changes in exchange rates or interest rates.
Rollover - An overnight swap, specifically the next business day against the following business day (also called Tomorrow Next, abbreviated to Tom-Next).
Round trip - Buying and selling of a specified amount of currency.
- S - Same day transaction - A transaction that matures on the day the transaction takes place.
Selling rate - Rate at which a bank is willing to sell foreign currency.
Settlement date - The date upon which foreign exchange contracts settle.
Settlement Risk - Where a payment is made to a counter party before the counter value payment has been made. The risk is that the counter party's payment will not be received.
Short sale - The sale of a specified amount of currency not owned by the seller at the time of the trade. Short sales are usually made in expectation of a decline in the price.
Short-term interest rates - Normally the 90 day rate.
Sidelined - A major currency that is lightly traded due to major market interest being in another currency pair.
Slippage - Refers to the negative (or depreciating) pip value between where a stop loss order becomes a market order and where that market order may be filled.
Soft Market - More potential sellers than buyers, which creates an environment where rapid price falls are likely.
Spot - (1) The most common foreign exchange transaction. (2) Spot or Spot date refers to the spot transaction value date that requires settlement within two business days, subject to value date calculation.
Spot next - The overnight swap from the spot date to the next business day.
Spot price/rate - The price at which the currency is currently trading in the spot market.
Spread - (l)The difference between the bid and ask price of a currency. (2) The difference between the price of two related futures contracts.
Square - Purchase and sales are in balance and thus the dealer has no open position.
Squawk Box - A speaker connected to a phone often used in broker trading desks.
Squeeze - Action by a central bank to reduce supply in order to increase the price of money.
Stable market - An active market which can absorb large sale or purchases of currency without major moves.
Standard - A term referring to certain normal amounts and maturities for dealing.
Sterilization - Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market.
Sterling - British pound, otherwise known as cable.
Stocky - Market slang for Swedish Krona.
Stop-Loss order - Order to buy or sell at the best available price when a given price threshold has been reached.
Support levels - When an exchange rate depreciates or appreciates to a level where (1) Technical analysis techniques suggest that the currency will rebound, or not go below; (2) the monetary authorities intervene to stop any further down ward movement. See resistance point.
Swap price - A price as a differential between two dates of the swap.
Swap - The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.
Swissy - Market slang for Swiss Franc.
- T -Technical Correction - An adjustment to price not based on market sentiment but technical factors such as volume and charting.
Thin market - A market in which trading volume is low and in which consequently bid and ask quotes are wide and the liquidity of the instrument traded is low.
Thursday/Friday Dollars - A US foreign exchange technicality. If a foreign bank buys dollars on Tuesday for Thursday delivery. If the bank leaves the funds overnight and transfers them on Friday by means of a clearing house cheque then clearance is not until Monday, the next working day. Higher interest rates for this period are thus available.
Tick - A minimum change in price, up or down.
Today/Tomorrow - Simultaneous buying of a currency for delivery the following day and selling for the spot day, or vice versa. Also referred to as overnight.
Tomorrow next (Tom next) - Simultaneous buying of a currency for delivery the following day and selling for the spot day or vice versa.
Trade date - The date on which a trade occurs.
Tradeable amount - Smallest transaction size acceptable.
Transaction date - The date on which a trade occurs.
Transaction - The buying or selling of currencies resulting from the execution of an order.
Two Tier market - A dual exchange rate system where normally only one rate is open to market pressure, e.g. South Africa.
Two-Way quotation - When a dealer quotes both buying and selling rates for foreign exchange transactions.
- U -Uncovered - Another term for an open position.
Under-valuation - An exchange rate is normally considered to be undervalued when it is below its purchasing power parity.
Up tick - A transaction executed at a price greater than the previous transaction.
- V -Value Date - For a spot transaction it is two business banking days forward in the country of the bank providing quotations which determine the spot value date. The only exception to this general rule is the spot day in the quoting centre coinciding with a banking holiday in the country(ies) of the foreign currency(ies). The value date then moves forward a day.
Value Spot - Normally settlement for two working days from today. See value date.
Volatility - A measure of the amount by which an asset price is expected to fluctuate over a given period.
Vostro Account - A local currency account maintained with a bank by another bank. The term is normally applied to the counterparty's account from which funds may be paid into or withdrawn, as a result of a transaction.
- W -Wash trade - A matched deal which produces neither a gain nor a loss.
Whipsaw - Term for where a trader takes a position, then has to move against it triggering stop loss limits and liquidation of positions, then having to move in the original direction. Normally occurs in volatile markets.
Working day - A day on which the banks in a currency's principal financial centre are open for business. For FX transactions, a working day only occurs if the bank in both financial centre's are open for business (all relevant
The History of Candlestick Charts
The History of Candlestick Charts
The Japanese was the first to discover this technical analysis for trading the world's first rice markets around 1600s. A Japanese man named Homma, who traded the markets in the 1700s, had discovered that one’s emotion can affect the market price besides the supply and the demand of rice.
By then, Homma realized that he could have made more profit by understanding the emotions in order to help him in the future price predictions. In addition, he also understood that there could be a great difference between value and price of rice as what is happened nowadays with the market stocks.
Homma’s principles are the main idea in this Candlestick Chart analysis topic. So let’s check this out.
The Japanese was the first to discover this technical analysis for trading the world's first rice markets around 1600s. A Japanese man named Homma, who traded the markets in the 1700s, had discovered that one’s emotion can affect the market price besides the supply and the demand of rice.
By then, Homma realized that he could have made more profit by understanding the emotions in order to help him in the future price predictions. In addition, he also understood that there could be a great difference between value and price of rice as what is happened nowadays with the market stocks.
Homma’s principles are the main idea in this Candlestick Chart analysis topic. So let’s check this out.
Buy on Greed, Sell on Fear
Figure 11
Suppose the opening price of Stock XYZ is in a green candlestick. And it continued till the 3rd bullish green candlestick. That means that traders who entered on the first two days have gained a lot.
Based on the performance, a trader decides to buy a trade order on the beginning of the 3 day and thought that there will be a new high tomorrow.
By the next morning, a trader found out that the market not only fall but open below the entry price! Then the trader surely feels fear and prompts to sell the order immediately to minimize the loss.
Let’s take an average number of two or three thousand additional traders who have the same thought, and entered the same order at the same price, will sure start to call their broker to sell their order.
All of these traders are trying to get rid of these before they caught fire.
By then, all these emotions that cause by fear will cause the supple of order more than demand of trade order from traders. As a result, the market price decline.
The longer red candlestick, it means there are more and more traders sell their order and the further the price decline. So, be aware of the power of the emotions.
Capitalizing on Fear and GreedFrom all those previous cases, we can conclude that the price movements do result from fear and greed regarding to the traders’ sentiment.
It is not difficult to detect the footprints of greed and fear, but difficult when come to detect the signs of rally or decline. It is a norm that a trader sometimes enters the market based on the bullish reversal signal, but end up seeing a new high when the trader sells his trade; or, a trader enters the market based on bearish reversal signal, but end up with a new low that finally earn nothing but loss.
So, it is can be says that there is no 100% accurate system to predict when and where a bull or bear market sign will begins. However, the candlestick patterns techniques can help traders to locate the probable areas for these turning points.
CandleStick Fundamental
Green real body – the close point is higher than the open point, meaning that the value of the price has increased.
Red real body – the close point is lower than the open point, meaning that the value of the price has decreased for that period of time.
From the chart, there are two extension lines at the top and bottom of the candlestick bodies. They are called the shadows. The top shadow represents the high price of the period and the bottom shadow represents the low price of the period. Sometimes, it happened that no shadow on either side, the close or open prices are included in the candlestick bodies in that trading period.
The trading period depends on each trader on what period or how long the period they want to analyze. It can be a week, a day, an hour or even less. But then, it is advisable not to use a trading period less than an hour as it is not good measures for currency markets
More CandleStick Studies
When there is a short Doji gapped below a long black candlestick body, and it is occurred in a downtrend market, then this is a Bullish (Doji) Star Pattern.
Recognition Criteria:1. The market is considered as a downtrend market.2. There is a long candlestick body before the short Doji.3. The short Doji is gapped below the previous long candlestick body and appeared as a signal of turning point.4. The shadows of the Doji is short as it indicates the market is not yet stable.
Explanation: A Bullish Doji Star pattern is a reversal sign that usually occurs in a downwards trend market. In this phenomenon, first the bears take control in the market, but then there would be a moment that the bears and bulls have the equally same strength. However, the bulls take over the bears power at last, making the bears weak. Normally the market would be bullish after this formation.
A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards.
There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently.
A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go.
Doji sticks happened when the open and close price are the same. Although it is rare, but if the open and close price is almost the same, they can be considered as a Doji. There are four kinds of Doji.
A Long-Legged Doji is a Doji which has two long shadows protruding from the real body. It shows that there is considerable fluctuation on both sides of the open price. However, in the end, the close price back to the level of open price. This Long-Legged Doji is a good signal of market indecision.
A Dragonfly Doji is a Doji which has only one long shadow on the bottom of the real body. In this Doji, the price only moves below the open price. However, in the end, the price moves back up to the open price level. This Dragonfly Doji is a good signal of a bearish trend reversal, meaning that the market is now moving upwards.
A Gravestone Doji is visually look like the opposite of a Dragonfly. It has one long shadow on the top of the real body. It indicates that the price will only move above the open price, but then will back to the open price level. This Gravestone Doji is a good signal of a bullish trend reversal, meaning that the market is now moving downwards.
A 4-Price Doji is a rare event that the open, close, high and low price points are the same. So, it seems like no movements at all. This 4-Price Doji normally happened only when a trading is suspended.
A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards.
There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently.
A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go.
Doji sticks happened when the open and close price are the same. Although it is rare, but if the open and close price is almost the same, they can be considered as a Doji. There are four kinds of Doji.
A Long-Legged Doji is a Doji which has two long shadows protruding from the real body. It shows that there is considerable fluctuation on both sides of the open price. However, in the end, the close price back to the level of open price. This Long-Legged Doji is a good signal of market indecision.
A Dragonfly Doji is a Doji which has only one long shadow on the bottom of the real body. In this Doji, the price only moves below the open price. However, in the end, the price moves back up to the open price level. This Dragonfly Doji is a good signal of a bearish trend reversal, meaning that the market is now moving upwards.
A Gravestone Doji is visually look like the opposite of a Dragonfly. It has one long shadow on the top of the real body. It indicates that the price will only move above the open price, but then will back to the open price level. This Gravestone Doji is a good signal of a bullish trend reversal, meaning that the market is now moving downwards.
A 4-Price Doji is a rare event that the open, close, high and low price points are the same. So, it seems like no movements at all. This 4-Price Doji normally happened only when a trading is suspended.
A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards.
There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently.
A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go.
Doji sticks happened when the open and close price are the same. Although it is rare, but if the open and close price is almost the same, they can be considered as a Doji. There are four kinds of Doji.
A Long-Legged Doji is a Doji which has two long shadows protruding from the real body. It shows that there is considerable fluctuation on both sides of the open price. However, in the end, the close price back to the level of open price. This Long-Legged Doji is a good signal of market indecision.
A Dragonfly Doji is a Doji which has only one long shadow on the bottom of the real body. In this Doji, the price only moves below the open price. However, in the end, the price moves back up to the open price level. This Dragonfly Doji is a good signal of a bearish trend reversal, meaning that the market is now moving upwards.
A Gravestone Doji is visually look like the opposite of a Dragonfly. It has one long shadow on the top of the real body. It indicates that the price will only move above the open price, but then will back to the open price level. This Gravestone Doji is a good signal of a bullish trend reversal, meaning that the market is now moving downwards.
A 4-Price Doji is a rare event that the open, close, high and low price points are the same. So, it seems like no movements at all. This 4-Price Doji normally happened only when a trading is suspended.
Figure 11
Suppose the opening price of Stock XYZ is in a green candlestick. And it continued till the 3rd bullish green candlestick. That means that traders who entered on the first two days have gained a lot.
Based on the performance, a trader decides to buy a trade order on the beginning of the 3 day and thought that there will be a new high tomorrow.
By the next morning, a trader found out that the market not only fall but open below the entry price! Then the trader surely feels fear and prompts to sell the order immediately to minimize the loss.
Let’s take an average number of two or three thousand additional traders who have the same thought, and entered the same order at the same price, will sure start to call their broker to sell their order.
All of these traders are trying to get rid of these before they caught fire.
By then, all these emotions that cause by fear will cause the supple of order more than demand of trade order from traders. As a result, the market price decline.
The longer red candlestick, it means there are more and more traders sell their order and the further the price decline. So, be aware of the power of the emotions.
Capitalizing on Fear and GreedFrom all those previous cases, we can conclude that the price movements do result from fear and greed regarding to the traders’ sentiment.
It is not difficult to detect the footprints of greed and fear, but difficult when come to detect the signs of rally or decline. It is a norm that a trader sometimes enters the market based on the bullish reversal signal, but end up seeing a new high when the trader sells his trade; or, a trader enters the market based on bearish reversal signal, but end up with a new low that finally earn nothing but loss.
So, it is can be says that there is no 100% accurate system to predict when and where a bull or bear market sign will begins. However, the candlestick patterns techniques can help traders to locate the probable areas for these turning points.
CandleStick Fundamental
Candlestick charts were created by the Japanese over 200 years ago. They used those charts to do analysis on the rice markets. By then, this technique is now being used by not only the Japanese, but also the traders from all around the world. It is because these charts are visually more attractive and clearer to read when compare to other charts.
The major part of these charts is the candlestick body, named real body. It is a rectangular part that formed between the open and close prices. The traditional Japanese do use black and white for the real body. But nowadays, the green and red colours are being used to fill in the real body colour to make it clearer and visually more striking.
Traders are also advisable to use the candlestick indicators with others indicators such as the slow stochastic indicator, RSI and Bollinger bands. Also, noted that technical analysis can not stand on its own. It needs to use with the other method.
Green real body – the close point is higher than the open point, meaning that the value of the price has increased.
Red real body – the close point is lower than the open point, meaning that the value of the price has decreased for that period of time.
From the chart, there are two extension lines at the top and bottom of the candlestick bodies. They are called the shadows. The top shadow represents the high price of the period and the bottom shadow represents the low price of the period. Sometimes, it happened that no shadow on either side, the close or open prices are included in the candlestick bodies in that trading period.
The trading period depends on each trader on what period or how long the period they want to analyze. It can be a week, a day, an hour or even less. But then, it is advisable not to use a trading period less than an hour as it is not good measures for currency markets
Comparison between Candlestick Charts and Western Charts
Green real body – the close point is higher than the open point, meaning that the value of the price has increased.
Red real body – the close point is lower than the open point, meaning that the value of the price has decreased for that period of time.
From the chart, there are two extension lines at the top and bottom of the candlestick bodies. They are called the shadows. The top shadow represents the high price of the period and the bottom shadow represents the low price of the period. Sometimes, it happened that no shadow on either side, the close or open prices are included in the candlestick bodies in that trading period.
The trading period depends on each trader on what period or how long the period they want to analyze. It can be a week, a day, an hour or even less. But then, it is advisable not to use a trading period less than an hour as it is not good measures for currency markets
More CandleStick Studies
When there is a short Doji gapped below a long black candlestick body, and it is occurred in a downtrend market, then this is a Bullish (Doji) Star Pattern.
Recognition Criteria:1. The market is considered as a downtrend market.2. There is a long candlestick body before the short Doji.3. The short Doji is gapped below the previous long candlestick body and appeared as a signal of turning point.4. The shadows of the Doji is short as it indicates the market is not yet stable.
Explanation: A Bullish Doji Star pattern is a reversal sign that usually occurs in a downwards trend market. In this phenomenon, first the bears take control in the market, but then there would be a moment that the bears and bulls have the equally same strength. However, the bulls take over the bears power at last, making the bears weak. Normally the market would be bullish after this formation.
A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards.
There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently.
A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go.
Doji sticks happened when the open and close price are the same. Although it is rare, but if the open and close price is almost the same, they can be considered as a Doji. There are four kinds of Doji.
A Long-Legged Doji is a Doji which has two long shadows protruding from the real body. It shows that there is considerable fluctuation on both sides of the open price. However, in the end, the close price back to the level of open price. This Long-Legged Doji is a good signal of market indecision.
A Dragonfly Doji is a Doji which has only one long shadow on the bottom of the real body. In this Doji, the price only moves below the open price. However, in the end, the price moves back up to the open price level. This Dragonfly Doji is a good signal of a bearish trend reversal, meaning that the market is now moving upwards.
A Gravestone Doji is visually look like the opposite of a Dragonfly. It has one long shadow on the top of the real body. It indicates that the price will only move above the open price, but then will back to the open price level. This Gravestone Doji is a good signal of a bullish trend reversal, meaning that the market is now moving downwards.
A 4-Price Doji is a rare event that the open, close, high and low price points are the same. So, it seems like no movements at all. This 4-Price Doji normally happened only when a trading is suspended.
A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards.
There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently.
A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go.
Doji sticks happened when the open and close price are the same. Although it is rare, but if the open and close price is almost the same, they can be considered as a Doji. There are four kinds of Doji.
A Long-Legged Doji is a Doji which has two long shadows protruding from the real body. It shows that there is considerable fluctuation on both sides of the open price. However, in the end, the close price back to the level of open price. This Long-Legged Doji is a good signal of market indecision.
A Dragonfly Doji is a Doji which has only one long shadow on the bottom of the real body. In this Doji, the price only moves below the open price. However, in the end, the price moves back up to the open price level. This Dragonfly Doji is a good signal of a bearish trend reversal, meaning that the market is now moving upwards.
A Gravestone Doji is visually look like the opposite of a Dragonfly. It has one long shadow on the top of the real body. It indicates that the price will only move above the open price, but then will back to the open price level. This Gravestone Doji is a good signal of a bullish trend reversal, meaning that the market is now moving downwards.
A 4-Price Doji is a rare event that the open, close, high and low price points are the same. So, it seems like no movements at all. This 4-Price Doji normally happened only when a trading is suspended.
A formation that doesn’t have or have a very tiny real body is called a Doji. Doji is formed when the opening price and the closing price are almost the same or similiar. It indicates the buyers could not manage to force the price to go higher then the opening price. And before the price closed, sellers could not make the price to go lower than the opening price. Therefore, a formation of Doji can be seen from a chart. A conclusion can be made from a Doji is that the market price is unstable, in the meaning that the price doesn’t have the strength to go upwards or downwards.
There are four main Doji, which is named Long-legged, Gravestone, Dragonfly and 4-price. Different Doji(s) would represent by different charts, where each doji function differently.
A DOJI is usually occurs in a market tops or downs. Although DOJI is a reversal sign, but it can’t work well on its own before the next candlestick body appears. A Doji also indicates that the market is in an indecision condition, the opening and closing prices are almost the same, neither bullish nor bearish, the strength of the sellers are almost the same as the buyers. There is a common usage for this DOJI: find out the lowest price of the DOJI and use that data to predict the how high the prices can go.
Doji sticks happened when the open and close price are the same. Although it is rare, but if the open and close price is almost the same, they can be considered as a Doji. There are four kinds of Doji.
A Long-Legged Doji is a Doji which has two long shadows protruding from the real body. It shows that there is considerable fluctuation on both sides of the open price. However, in the end, the close price back to the level of open price. This Long-Legged Doji is a good signal of market indecision.
A Dragonfly Doji is a Doji which has only one long shadow on the bottom of the real body. In this Doji, the price only moves below the open price. However, in the end, the price moves back up to the open price level. This Dragonfly Doji is a good signal of a bearish trend reversal, meaning that the market is now moving upwards.
A Gravestone Doji is visually look like the opposite of a Dragonfly. It has one long shadow on the top of the real body. It indicates that the price will only move above the open price, but then will back to the open price level. This Gravestone Doji is a good signal of a bullish trend reversal, meaning that the market is now moving downwards.
A 4-Price Doji is a rare event that the open, close, high and low price points are the same. So, it seems like no movements at all. This 4-Price Doji normally happened only when a trading is suspended.
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