Foreign Exchange Reserves slipped to $12.85 billion from $12.96 billion.

Pakistan Foreign Exchange reserves slipped down to $12.85 billon in last week the figure was $12.96 billion, As per State Bank Of Pakistan on Thursday. The SBP's reserves fell to $9.36 billion from $9.47 billion a week earlier, although reserves held by commercial banks is still the same it is settled at $3.49 billion

Foreign Exchange Reserve got down lastly due to the import bills in November 2008, although before said period in October, 2007 Foreign Exchange Reserve jumped to its record high and it was at $16.5 billion.

Source: forexkp.com

Forex Market Comparison

Forex vs. Stocks

Trade Around the Clock

The forex market is a near-seamless 24-hour market. Subject to available liquidity, FXCM offers trading from Sunday, starting after 5:15 PM EST, until Friday, 4PM, EST (FXCM Client Service is available 24/7). With the ability to trade around the clock, currency traders have the advantage of customizing their own trading schedule; they can usually get in or out of the market at any time without waiting for an opening bell or encountering a market gap. While trading stocks after usual market hours is possible, very often that possibility is negated by a lack of order flow or a drastic widening of the bid-ask spread.

Pay No Commissions*

In the forex market costs are confined to the bid-ask spread. FXCM charges no commission or additional transaction fees, and its customers trade on spreads provided to FXCM by some of the world's largest banks via the FX Trading Station. In the stock market, “no-fee” programs are frequently offered only with provisos mandating minimum account balances or minimum trades per month.

* FXCM is compensated through the bid/ask spread except where otherwise noted. Please note commission charges apply for certain classes of non-standard accounts such as Active Trader. For additional information click here.

No Uptick Rule

Unlike the equity market, there is no restriction on short selling in the forex currency market, no matter which way the market is moving. Since currency trading involves buying one currency and selling another, a trader has the same ability to trade in a rising market as in a falling one.

Forex Market Information Easily Accessible

Information about stocks is abundant, but so are the stocks. Finding a trade opportunity in the equities markets may mean sifting through data on thousands of stocks, while the forex trader has only six major currencies to research. Additionally, the vital information that moves equity markets, such as revenues and profits, is proprietary and private. In contrast, virtually all of the news that bears on the forex market is in publicly disseminated reports from governments or research institutions, and released to everybody at the same time.

We feel that the knowledge you've gained in analyzing stocks can easily be transferred to the forex market. Many of the economic indicators familiar to equity traders, such as payroll data and interest rates, affect the currency markets. And many technical traders have found the forex market to be particularly attractive, since currencies respond well to many of the common technical indicators, such as MACD, RSI, and Candlestick charting.

To learn more about transitioning from trading equity markets to trading in the Forex market, contact the FXCM staff today at 888-503-6739.

High Risk Investment

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Source: fxcm.com

The Foreign Exchange Market for Beginners

The foreign exchange market or forex market as it is often called is the market in which currencies are traded. Currency Trading is the world's largest market consisting of almost $2 trillion in daily volume and as investors learn more and become more interested, the market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets. In addition, there is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter. Unlike the stock market, this decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients. The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.

All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency. The first currency of a currency pair is called the "base currency," while the second currency is called the “counter currency.” The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency. Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold. The opposite is true, when the sale of a currency pair takes place. There are four major currency pairs that are traded most often in the foreign exchange market. These include the EUR/USD, USD/JPY, GBP/USD, and USD/CHF.

Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market. Registering for a demo account allows a new trader to download the online trading platform that is used by the company's clients trading live accounts and make trades as if they were doing it with real money. The demo account is an excellent way to experiment with the foreign exchange market while learning your way around the trading platform. It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.

Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders. These "educational webinars," as they are called are run by experienced financial strategists and range in topics from trading specific news events to trading the Euro. In addition to the webinars, FXCM also offers numerous online courses that teach investors how to trade the currency market.

Source: gocurrency.com

US Dollar Reaches Record Lows Affects Trade

The US dollar plunged to a record low against the Euro in April. This happened immediately after the economic growth figures for the U.S. were released by the U.S. Commerce Department reporting the weakest results in four years. The release of these figures has people worried that the United States is in danger of falling behind the rest of the world economically, especially with the USD losing over 3.1% to the Euro already this year. The USD low was partnered with a Euro high, reaching past its previous high in December of 2004, above $1.3680, for the first time ever. Euro and USD extremes are going to have significant affects on trade within both Europe and the United States. Some groups are happy and are benefiting from the weakness of the dollar and the strength of the Euro, whereas others are losing large amounts of both money and business. A number of American exporters have gained significant amounts as a result of the weakness of the dollar; however one major U.S. business has suffered greatly due to these exchange rates. Walmart, who produces over 70% of their goods in China, is suffering due to the weakness of the dollar. The company has tried to find less pricey areas for production; however there is only so much they can do to battle the plummeting dollar. Euro strength and dollar weakness are also affecting many European companies. The economy of the Eurozone is one that is export dependant. Under normal circumstances, export driven economies benefit from a weaker currency and typically hurt when the currency is too strong. With the rise of the Euro, European exporters and manufactures have much higher costs, which lead them to lose money unless they raise their prices, which most companies are reluctant to do. It is not just European and American companies that are suffering from the prices of the USD and Euro. Any country that trades with either the United States or an EU nation is at risk for exchange rate fluctuations affecting their imports and/or exports. Although, there is no way to completely eliminate foreign exchange rate risk and it will always be an issue for exporters and importers, there are ways to make yourself or your company less vulnerable. Hedging foreign exchange rate risks is not a new idea, but many companies are just recently learning the importance of hedging against these risks. As more companies take advantage of this financial technique, exchange rate losses lessen, and the price of a currency at any point in time has less of a chance of making or breaking a company. Individual investors can also hedge their foreign exchange rate risk through currency trading. Currency trading allows investors to speculate on the value of a currency. This can be done whether you are looking to hedge to lock in a specific rate or if you are looking to take advantage from currency rate fluctuations. There are many currency trading firms that allow you to trade online and also provide educational resources. You can learn more about the foreign exchange market at: Forex for Beginners.

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Top 10 Forex Trading Rules

Trading Is An Art, Not A ScienceThe systems and ideas presented here stem from years of observation of price action in this market and provide high probability approaches to trading both trend and countertrend setups, but they are by no means a surefire guarantee of success. No trade setup is ever 100% accurate. Therefore, no rule in trading is ever absolute (except the one about always using stops!). Nevertheless, these 10 rules work well across a variety of market environments, and will help to keep you out of harm's way

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