Category Archive Capital Forex

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What is devaluation?

What is devaluation?

 

 

Devaluation is a monetary policy tool used by countries that implement a fixed exchange rate regime or a semi-fixed exchange rate regime. Devaluation is the reduction of the value of an official currency of an country against other country currencies or against a group of currency values, or at a currency standard. Devaluation is often confused with depression and is exactly the opposite of revaluation.

 

 

Devaluation is a tool used by the government or central bank of the fixed country for the relevant currency. One of the most fundamental reasons for devaluation is that the country reduces the value of its money to compensate for trade deficit. Devaluation is to lower the value of currency and to make exports cheaper and become more advantageous in global trade competition. However, imports become more expensive, and domestic households increase demand for products from domestic producers while expecting a reduction in demand for imported products.

 

Devaluation seems to be a means of positive monetary policy, but there are also negative effects. Making imports more expensive can make domestic production less effective, or making exports cheaper can cause inflation by increasing demand very seriously.

 

 

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What is Support Resistance?

What is Support Resistance?

 The concepts of support and resistance are not just forex markets, but a concept of technical analysis that is used throughout financial markets. In general, support can be explained as the level at which prices are expected to decline. The persistence of sales in the financial market at support levels is interpreted as the response of buyers at this level. However, it should not be forgotten that in the case of breakdown of important support levels, that is, if downward support points are crossed, sales will accelerate and the support point will become a point of resistance. Breaking a support point does not mean that the support level is below the support level. We can say when a level of support is broken, clearly when it closes below this level. When we look at the historical charts in Forex markets, the first multiplier is the support level where the sales are stopped and the prices can not fall further below this level. At these price levels, the Euro dollar pair has found support, as can be seen from the levels indicated by blue in the chart below. Below you can find examples of euro usd support resistance level.

 

 

The concept of resistance can be explained as the level at which the rise in prices is expected to cease. Resistance levels are interpreted as a stop or slow down in the financial situation, the sellers reacting at this level, or making profit realizations. When we look at the historical charts in Forex markets, the first multiplier is the resistance, the places where purchases are stopped and the prices can not go further on this level. However, it should not be forgotten that in the case of breakdown of the major resistance levels, that is to say, if the upward resistance points are crossed, the receptions will accelerate and the resistance point will now become a support point. Breaking a resistance point does not mean that the resistance level is above prices. We can say when a level of resistance is broken, clearly when it closes over this level. When we look at the historical charts in Forex markets, the first multiplier is the resistance, the places where purchases are stopped and the prices are not even higher on this level. At this price level, you will encounter a gold-level resistance level, as shown by the levels indicated by blue in the chart below. Below you can find examples of gold support resistance points.

 

 

The positions of support and resistance you will draw on the charts will indicate where you should place your profit taking and loss stop orders. Support and resistance lines do not give you information or direction about the trend. If you have just made a purchase, it will show you where to close that position. If we go through the above example; Gold position and if the prices are rising, the place to meet the first resistance will be the level of 1266 dollars ons. If this level can not be overturned, you can realize part of your position and consider buying again from the support level below (if you think the trend is up).
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What is CFD?

What is CFD?

 

The CFD’s Turkish equivalence stands for ” Difference Contracts ”. They are contracts that allow you to invest in non-physical forms such as stocks, stock indices, treasuries and commodities, and to buy and sell price expectations. In any CFD investment, you buy and sell price quotes and you do not physically own that instrument.

 

 

CFDs; Such as stocks, bonds, indices or commodities. The sources of CFD contracts, which can be processed more easily and with lower capital, can be various financial assets.

 

It is an investment instrument that allows you to invest in future expectations of the underlying product without having a financial product with low collateral, by connecting lower collateral than the underlying product.

 

At the same time, CFDs, which are an easy investment tool, are also preferred and fast because of the need for fewer collateral, allowing investors to benefit from small price changes.

 

CFD products are divided into futures and demand. There are no maturities in underlying assets in demand contracts. In some demand CFD products, although the underlying asset is futures, the product may be traded on demand. The difference in the CFD products in this case will be reflected to the investor as transportation cost.

 

WHAT IS CFD BASED ON SHARES?

In CFDs based on stocks, you can enter into high volume transactions with low collateral by taking advantage of the leverage effect in buying or selling, and in these transactions. In your emotional CFD investments, you are equally affected by the price movements of the underlying asset. It does not benefit from dividend payments, but you will benefit from price changes that are felt after dividends. Since the price of the underlying asset will be affected in the stock split, the price of the CFD stock will be affected in the same way. CFD stocks do not grant any partnership rights to the invested company, such as ordinary stocks.

 

Futures CFD contracts are term contracts with a starting and ending date of which is known. You can trade as much as you want in the maturity. If your position is still open when the due date is reached, it is automatically closed by the system.

 

WHAT ARE THE ADVANTAGES OF CFD?

It enables you to gain access to all indexes, precious metals and commodities on a single platform, easily and profitably from both the rise and fall of the market.

 

CFDs provide leverage at rates up to 1:10.

You can easily trade with the Meta Trader 4 platform.

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What are Bollinger Bands?

What are Bollinger Bands?

Bollinger bands are a volatility band that is often used in technical analysis, developed by John Bollinger in the 1980s. Volatility is a variable dependent on standard deviation, and volatility increases or decreases affect standard deviation. Bollinger bands are narrowing when volatility rises and bollinger bands are decreasing when volatility is decreasing. In 2011, bollinger bands will be patented on behalf of John Bollinger. Prices for Bollinger bands are relatively high or low. According to Bollinger, tapes contain 88-89% of price movements. It is stated that the price movements of these beds out of band width bands are unusual. Technically speaking, the prices are relatively high if they are close to the high band, and the prices are relatively low when they are close to the low band. Nevertheless, the relatively high price movements should not be construed as buying or selling signals.

HOW TO CALCULATE BOLLING BITS?

Medium Band: 20-day simple moving average

Upper Bant: 20-day simple moving average + (standard deviation of 20 days price x 2)

Lower Bant: 20-day simple moving average – (standard deviation of 20-day price x 2)

HOW TO USE BOLLİNG TANKS?

An example of the bollinger band appears in the above graphic. In this example, the middle line shows the 20-day moving average. There are two lines above and below this line. Upper line; Above the standard deviation of the moving average in the middle, the bottom field line and the moving average in the middle denote the K standard deviation. In general, the standard deviation is assumed to be 2 in the bollinger bands and 20 in the period.
The most important reason for using Bollinger bands is that the financial product can be held at high and low levels and it can be predicted which band the related product will fluctuate between. In general, over-bought levels can be interpreted when a financial product touches the upper level of the bollinger bands, and over-priced levels when the lower-band holds. But alone does not give enough results. It can give meaningful results when used with Bollinger tapes and others.

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What is the bull market?

What is the bull market?

Bear and bull market concepts, which are frequently encountered in financial markets, provide information about the direction of the market (trendi). The bullish market is the period when the market is on the uptrend, that is, prices will stay in an optimistic environment in the future and investors will be able to buy it. It is assumed that the origin of this term comes from the belief that the bulls have lifted everything up and down with their horns. It is possible to encounter in the forex market with comments such as stock market and gold as the beginning of the “bull market” we have come across in the commodity. On the bear market, the situation is exactly the opposite of the bull market. In other words, the market is in a downward trend and the market is pessimistic. For the start of the bull market, technically it is expected that it will have risen by 20% from the lowest level of the relevant market.

 

THOUSANDS OF BULK MARKET

Stage 1: Staging is the phase in which very cheap commodities sold by investors who are in trouble and discouraged are being collected by large investors. Yet there is no significant upward trend and there is still little interest in the market in general.

 

2nd Stage-Buying Wave: It is the phase in which the signs of recovery in the market have begun to be clearly noticed after the addition phase, and small investors are now included in the buying wave.

 

Stage-Saturation: The market has reached a certain degree of saturation with the increase in volume, and the buyer has decreased considerably in the market. It indicates that the bull market has come to an end, so it can be expected to start a wave of steep declines.

BULK MARKET EXAMPLES

Gold has been in a significant bull market since the early 2000s. Gold prices have risen from $ 800 ounce levels to $ 1900 ounce levels. This is the case for a strong golden bull market.

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Ounce gold is valued with safe port demand

Ounce gold is valued with safe port demand

It allows for the upside movement of the ounce of gold to keep the US dollar weak in forex markets. The political developments that we have followed frequently in the US wing for the past week caused the dollar to lose its strength in the global markets. The precious metal that stands out with the demand for safe port is shaped at the moment at the level of $ 1251. While the dollar index has fallen to its lowest level in the past year, we are seeing a horizontal and trading course in US 10-year bond yields. US PMI figures will be tracked in today’s data calendar. It is also expected that Trump’s brother-in-law, Kusher, will testify at the Intelligence Committee behind closed gates. It is beneficial to follow these developments closely in terms of the parity appearance.

 

Technical Analysis: The precious metal that keeps its course in the rising channel is shaped over $ 1251. The strong placement of the yellow metal on this level can counteract the nearest resistance of $ 1257 in the following periods. On the other hand, extensions below $ 1251 may cause sales pressure to accelerate from $ 1246 to $ 1240.

 

Resistance: 1257/1262/1270

Support: 1246/1240/1236              

 

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Attention to OPEC & Russia meeting for oil prices

Attention to OPEC & Russia meeting for oil prices

Oil prices remain under negative pressure from rising production figures. Oil prices, which can not rise despite OPEC’s supply interruption, are disturbing oil producing countries. Today, OPEC members and Russia’s St. It is expected to participate in the global petroleum market assessment meeting to be held in St. Petersburg. Here, future messages about the oil market may have an impact on prices. In addition, Russian Energy Minister Alexander Novak said in an interview with the Financial Times newspaper that Nigeria and Libya should join the OPEC supply disruption agreement. For this reason, it is useful to pay attention to possible price movements from presentations coming from today’s meeting.

 

Technical Analysis: US crude oil, which can not follow a strong course on the level of $ 47.00, is currently on a support level of $ 45.50. While the uptrend of crude oil is seen as a resistance at $ 46.60 in the first place, it needs to settle for $ 47.00 for a strong acceleration. On the other hand, there are support levels of $ 45.50 and $ 44.45 below.

 

Resistance: 46.60 / 47.00 / 48.50

Support: 45.50 / 44.45 / 43.30

Technical Analysis: Brent oil is experiencing returns from critical resistance levels. Brent crude, which did not reach $ 50.00, continued its downward movement to $ 48.00. Brent, which is shaped on momentum momentarily, faces a downward trend of 47.80 / 46.60 as support points. On the other hand, we are monitoring critical resistances above 48.50 / 49.20 and $ 50.00.

 

Resistance: 48.50 / 49.20 / 50.00

Support: 47.80 / 46.60 / 45.35

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Forex Basic Analysis

Forex Basic Analysis
FED (Federal Reserve)

The Federal Reserve is the central bank of the United States, which was founded on December 23, 1913. Over time, the roles and responsibilities of the Federal Reserve System have been expanded and changes have taken hold. Ben Bernanke, head of the central bank in Washington. The bank also has the authority to print and distribute US dollars.

The Federal Open Market Committee (FOMC)

forex, Forex Basic, Forex Basic Analysis, Forex Basic analytics, Forex Beginner, Forex Beginners, capitalforex netThe FOMC is the US Federal Reserve Open Market Operations Committee. It is the most important part of the Federal Reserve System’s monetary policies. The FOMC has important tasks such as increasing employment, keeping inflation and macroeconomic balance at an acceptable level, and taking measures to promote economic growth.

FED Meetings
The Federal Open Market Commitee meets eight times a year to assess economic trends and determine their monetary policy. FOMC Meetings (FOMC Minutes) are announced three weeks after the FED meetings. In the meeting records; The reasons behind the decisions of the FED meetings include the FOMC members’ view of the macroeconomic outlook, the duration of economic measures and interest rate decisions, and forecasts for future periods. Investors look for clues in this long text for changes that may occur in the FED’s monetary policies.

Interpretation of FOMC Decisions
Interest Rate Decisions: Commitments to keep FED’s policy rate at certain levels are affecting the course of the US dollar and commodities. For example; A clue to the prolongation of the rate at which interest rates are held at very low levels will create a low interest-weak dollar sense. Read More

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Forex Commodity Trading

 Forex Commodity Trading

Commodities are all the goods and products subject to trade. Mining, mineral, energy, agriculture, food and livestock products are all part of the commodity.

 

Commodities are all the goods and products subject to trade. Mining, mineral, energy, agriculture, food and livestock products are all part of the commodity. Energy products such as gold, silver, platinum, copper, mineral products such as cotton, soybean meal, corn, wheat, agricultural products, petroleum and natural gas are among the commodity products on the Forex market. Supply and demand changes in the market vary on commodity prices. For this reason, it is necessary to follow the usage area, supply possibilities and demand of the market which is the subject of purchase and sale.

 

In commodity products based on commodities, many factors affect commodity prices such as natural conditions, weather conditions, agricultural policies and government policies. Another reason for the preference of agricultural commodity products is that there is no excessive ups and downs on prices of agricultural products, foreign exchange and other instruments. For this reason, it is traded as a reliable investment instrument.

 

If the commodity is based on madene, it is divided into two groups as valuable and industrial mines. Typical example for the province. Historically, gold is used for storage purposes. Today it is an investment tool preferred by investors to protect against inflation. In the second group, there are industrial mines such as copper aluminum and platinum. The value of the industrial mines depends on the supply and demand for that mineral, which is closely related to the power of that industry.

 

Oil is at the beginning of energy-based commodities. Petroleum alternative is a product which is not found in the world and is considered valuable because it is a scarce product used in every area. It is one of the products with the highest strategic importance on the world.

Investments on commodities can be made through futures markets as well as on forex markets. There are many reasons why commodities are more advantageous than the stock market in Forex markets. However, the most important reason for not having a specific center in the forex market can be shown as including all world markets. Especially, it is very important to be able to evaluate the opportunities on the commodities by being able to perform both purchasing and selling, ie two-way transactions on the product range

Investment decisions can be taken more precisely when all the circumstances are considered and when the commodity has trackable information.

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CFD OPERATIONS

CFD OPERATIONS

CFD is an investment instrument that stands for Contract for Difference. While the past parity pairs of CFDs are not as deeply rooted, these markets have been improving since the 1990s.

 

 

CFD is an investment instrument that stands for Contract for Difference. These markets have been improving since the 1990s, though not as deeply rooted as the past parity pairs of CFDs. When investments are made in differential contracts, they do not physically possess the underlying asset.

 

CFD; The type of financial investment in which the existing difference between the opening price and the closing price of the underlying asset is calculated according to the position of the opening and is reflected as plus or minus to the account on the platform. Investments made in CFD do not have physics on the ground. Among the most widely used CFD products are stock indexes, commodities and Forex contracts.

 

What are the General Features of CFD?

1. Overnight Interest

If the positions traded on the underlying equity stock or the difference contracts written on the index are moved to the next day, overnight interest (long or short) will be charged or paid according to the position of the investor.

2. Underlying Asset

All difference contracts are written on a base entity. The price in the differential contracts is in correlation with the base asset price. Difference contracts can deal with the maturity date of the underlying asset as well as the spot market price. There is no specific maturity in the difference contracts written on equities. In other words, the spot market price is reflected directly to the investor in the contracts of difference where the underlying asset is a stock.

How does Forex CFD transactions take place?

CFDs, which gained momentum in the 1990s, have reached significant transaction volumes in the financial markets, especially with leverage. On the Forex market, CFDs are traded on the same platform, trading in commodities, stocks or parcels, but there is no difference in trading on the platform.

The inclusion of the leverage feature in CFD products also provides a low cost advantage to the investor. With the ability to leverage the existing leverage in the Forex market, the investor has the opportunity to invest in the shares of the world’s largest companies with small collateral.

What does Rollover mean in CFD contracts?

In addition to CFD products with maturity start and end dates, the open position, which is not a contract duration, must continue with the same conditions over the same transaction size.