you could but you stand to lose a LOT more. and the Franc still exists? I thought it went to Euro.

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The CPA in a statement here said, “The Commissioner of Elections appears to have given up on his attempts to enforce the law in terms of his powers under the Seventeenth Amendment…We unequivocally maintain that the failure and/or refusal of public officials and other persons to follow the directions of the Commissioner and the Competent Authority is a clear breach of a legal duty imposed by the Constitution”.
http://www.hindu.com/2010/01/21/stories/2010012155411700.htm
Rajapaksa’s continued virulent acts of placing armed extremist militias and personal appointees in charge of larger land extents is also another repugnant act of this "family" government.
http://www.lankatruth.com/index.php?option=com_content&view=article&id=4342:ill-abolish-devananda-rajapakse-agreement-as-soon-as-i-become-president–general-promises-maha-sangha&catid=35:local&Itemid=50
Can Rajapaksa explain what has happened to the aide funds recieved from India for resettlement?
Can Rajapaksa explain what happened to the funds that were attained through limited Forex to pay Gold Key/Ceylinco depositors that were bilked by his own family interests?
Can Rajapaksa explain why his new policy of non-taxing banks is coinciding with his own family members sitting on boards of several in the past 2 years?
Can Rajapaksa explain why members of his own foreign service are stating that he has a dual citizenship status?
VOTE FOR CHANGE AND THEN HE CAN EXPLAIN FROM A DIFFERENT CHAIR THAN THAT OF EXECUTIVE PRESIDENT
700,000 votes Jaffna, 700,000 votes Kandy, 700,000 votes Matara, 700,000 votes Trincomalee, 700,000 votes Anuradaphura - send "Ali Baba" and his 300+ thieves home to Medamulana - let us recover our foreign service from Rajapaksa family members, let us recover our banks from Rajapaksa dallyings, let us have Rajapaksa explain how the oil hedging deal doubled in value overnight by the participation of his in-laws, let us set straight to books this major addition so that we can gain the actual 100 million dollar credit instead of forfeit because of such thuggery. VOTE FOR CHANGE AND SEND RAJAPAKSA BACK TO MEDAMULANA.

well yes

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OK, personally I think there is some truth in EMH and that you can’t predict the big financial markets. But, arbitrage seems a little bit underrated by EMH. I am not sure if Prof. Fama has stated this in his original thesis back in the 70s, but you will find many "official studies" online(and in your university) that in the EMH world arbitrage doesn’t exist or when it occurs - it lasts for just a few seconds. OK….but just a "minor detail" that we have something called "high frequency trading" - Yes, you are right - "a few seconds are NOT problem for a high frequency computer". Actually, below I give you a few examples(without formulas and sophisticated code - just easy to understand arguments), as to why APT, MPT, EMH and all these abbreviations fail when it comes to arbitrage:

1. Arbitrage exists for just 2-3 seconds?:
See above ^…high frequency trading. Also, see this very interesting study from Oxford which not only disproves EMH but even its "refined version" - the Adaptive Market Hypothesis: AMH (too many abbrevations already…funny). So:

http://www.nuffield.ox.ac.uk/users/murphya/Arbitrage%20Opportunities%20in%20Nasdaq%20Stocks.pdf

2. You cannot profit from a carry trade, due to large market risk?
Fail. You can very easily: a) Go long on XAU/USD or vice versa, short it. b) Hedge the market risk with a comex gold futures gold contract. c) Receive the tom rollover on the XAU/USD.
At the end - you end up with no market risk and 3%(or more) leveraged inter market rate. How much is that since both your futures and xauusd forex are margined? You are right: over 50% interest yearly without any market and default risk, the % obviously depends on your broker and how much your forex position is leveraged. The comex gold is an exchange defined initial/maintenance variance margin.
You can make a similar trade with cfd/stocks.

3. Options/betting markets are very efficient:
Fail. With some persistence you can easily find a broker with call/put option sell premium higher than other broker with option buy premium lower, on OTC option markets. You are obviously hedged when buying at the lower price and receiving higher premium at the other broker. Problem here is that there is market risk - but only "virtually", since you cannot lose even if one of the positions is closed. Of course you can do the same in betting markets when the odds summed on -1th power are below 1.

There some other examples.

Point is that when you read about arbitrage you read only about "buy microsoft stock in london and sell it in new york when prices differ" - which is complete ballooney. Not only this type of "Arbitrage" doesn’t happen - but it’s practically nearly impossible to make money from this even when it happens. The other type that you will read about online is the "triangular arbitrage" with 3 currencies - which occurs once in a millenium.

The first examples however are much more practical, if not shocking since some of them exist for quite some time and not even 2-3 seconds. Which means that most "arbitrageurs" are actually stupid not to exploit them, despite being a public knowledge.

I thought to go on details with formulas, links, references, computer code, etc. in this topic…but I am lazy and busy now .

Thanks!
https://riselux.com

I like your question. I trade in the financial markets and it would appear under the strong version of the EMH arbitrage isn’t possible. However, I don’t believe economists look to EMH as a perfect model but merely an approximation. Much like the rational expectations hypothesis only partially explains the slope of the yield curve; one needs to factor in risk premium to derive the complete explanation. Similarly EMH partially explains the price action we observe in markets. Arbitrage assists in the efficiency of markets by facilitating the flow of capital into its most resourceful uses.

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the cftc and nfa have new rules for firms and investors, such as the new fifo rule not allowing ppl to hedge, are there anything else, as an investor i should know about so i wont brake no laws

The broker is responsible for enacting the new rules into their platform, so your broker will be in violation of the rules if they allow you to do this, not you.

The major regulations enacted by the NFA are no hedging, FIFO, and reduced leverage.

Reduced leverage is the last rule to be enacted this year. It will go into effect on November 30th.

The NFA has also released information on new regulations which will be issued for referring brokers; however, the CFTC has not given guidance yet on specifics. These rules will require referring brokers and money managers to become registered with the NFA amongst other things.

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Registered broker..
Allowed hedging..
Leverage to 1:400 or 1:500..
Low spreads for major pairs..
Less withdrawal fee..
MT4 Platform..

This question is asked several times a day here.

On this same Question page
forextradingevo.com was recommended

Here’s another
http://answers.yahoo.com/question/index;_ylt=Av3a2T2BagM30CI3Ths5ZdcjzKIX;_ylv=3?qid=20090916054702AAppSDp

Just enter "Forex Broker" in the "search for questions" box

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What are hedge funds?and how they are related to forex market?

A hedge fund is a investment vehicle similar to a mutual fund. However unlike a mutual fund they are not required to register with the SEC, which means they have no restrictions on what they can invest in. A hedge fund can invest in stocks, bonds, derivatives, futures, etc.. A hedge fund can use leverage (buy stocks, bonds with money it borrowed and has to pay back). It can also use an investment strategy called shorting which means you sell something you don’t own hoping to buy it back later at a lower price.

Because hedge funds are not required to register with the SEC they cannot be marketed to the public and they can only accept investments from investors who are considered accredited (have a net worth of over $1.5M) or qualified (have at least $5M in liquid investments). This is done in an effort to ensure that the people who invest in hedge funds understand the complexity of the investment and are sophisticated and educated on the risks that they may have.

This description is incredibly simplified but its a good general way for a layman to understand what a hedge fund is.

Many people like to say they are very risky but that’s patently untrue, hedge funds are consistently exhibited far less risk and better returns than the stock market. I have a number of statistics that can back up that statement and have yet to see any statistics suggesting otherwise. The average hedge fund investor lost a whole lot less money than the average mutual fund investor in 2001 and in 2008, and have a lot less volatility of their returns.

As far as how they are related to the forex market, some hedge fund strategies, called Global Macro use quantitative models and trend following programs to select investment strategies based on a number of different macroeconomic factors which includes actively investing in the currency markets as part of a broader strategy.

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How can one trade forex in a manner that least resembles gambling– over what period of time can one see some logic to a forex trade?

Who are the main players that govern the price levels of currency and what effects do individual traders have?

how do hedge funds trade currencies?

Does technical analysis really work? The idea of of using tech analysis seems so silly–what is the theory behind it?

Any additional information you may have, I’d really appreciate.

The currency pairs move in the direction of the trend, you anayze trends and it will help greatly, expecially the larger trends, short term moves within the trend are based on news items and parallel and inverse analysis.

If you are looking for the best forex software, visit this site

http://the-best-forex-software-in-internet.blogspot.com/

This software is the best software that can help increase your trading profit and user friendly.

Best Wishes,

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Just curious. I know for online stock trading, pretty much every area in the USA is covered. But Forex is such a high-risk arena and one that is FULL OF SCAMS, that I don’t think ordinary people would trade it.

My friend started a business startup that delivers live Forex quotes for free and asked if I’d join. Well, I want to know if the time and effort I put in will be worth it.

Which areas in the US has most people wanting to trade Forex? What type of people like to trade forex? I get the feeling it’s mostly hedge fund managers in NYC who do it…..rather than individual middle class people.

Very few retail traders can open a "real" forex account that can trade against bank trading desks. Probably need $2,000,000 minimum or so to do that, plus be able to convince them that you’re something big.

The "forex" accounts typically promoted on the Internet aren’t the same — with those, you’re actually trading against your own broker, who issues OTC securities to you. This puts you in the rather awkward position of being in diametric financial opposition to your broker. Guess what typically happens to such accounts, over time?

The CME (in Chicago, for what that’s worth) allows trading in currency futures. This is a real, open market. The downside is that it requires a lot more capital than "retail forex" (probably 20K minimum), and these are futures, so that adds a little complexity to things, for the uninitiated. And you will still likely lose all your money, quickly, anyway, unless you’ve got some real advantage over the market, or you just get really lucky. If I really wanted to learn about what moves forex markets, I’d start by heading to my local university library and browsing the Journal of Finance and similar publications; and even then, there’s no guarantees.

FYI, the main places for "real" forex trading are NYC, London, and various major cities throughout Asia (esp. Hong Kong, Singapore, Tokyo).

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Hi,
How are you?

I have been hedging the forex, however it has now become illegal….

I have the option of switching my account to a UK account to continue hedging

or
remain on US system… no hedging… meaning I can only trade in one direction of the market…

Would you switch the account or keep it as a US account…

Thanks and God Bless,
Ms S

If I was in forex, I would run very very quickly away. The forex brokers are nothing but crooks.

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Companies engaged in foreign trade would be well advised to hedge their currency risks if they know what is good for them. They are in the business of selling products and services. Not in the business of engaging in currency speculation.

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