Forex Trading

Payday Loan – is it a Loan or a Gift?

The difference between a gift and a payday loan is that if you are given money, which legally does not have to be repaid, this is known as a gift. If a payday loan lender distributes the money to you with legal documentation, the money is considered a legal loan. Many cases have been taken in front of a judge to decide whether a financial transaction was a gift or loan.

Documentation and contracts are a very important part of any money deal even when obtaining private loans from relatives or friends. Most loans are administered by banks or other financial lending institutions. Specific criteria is adhered to, to establish if a borrower is eligible for a loan. Credit history is always highly considered for longer term loans as well as current income assets and liabilities. When applying for a payday loan, the purpose of the loan may also play a role in the decision making of the payday loan.

Another significant consideration is the income to debt ratio of the borrower. Are you able to pay back the loan with interest? Lenders essentially are in business to make money, so you need to be aware of how much a loan can cost you.

A payday loan is a financial business deal in which one party the lender i.e. financial institution, payday loan lender etc. agrees to give a borrower a certain amount of money with the prospect of total repayment. The specific terms and conditions of a loan are administered in the form of a contract.

The lender will ask for interest payments in addition to the original amount of the payday loan in return. The borrower must agree to the repayment terms and conditions, which will include the money owing to the lender, interest rate and the due date of repayment. Lenders will charge financial penalties for missed or overdue payments.

A payday loan has costs such as interest payments and finance charges this is why many borrowers avoid applying for a loan i.e. payday loan until it is absolutely necessary. Purchasing a new house or auto almost always necessitates some form of financial loan, whether it is a mortgage, auto loan or payday loan. Financing school also requires a federal support student loan.

Interest rates on these types of loans can be fixed at the time of the application or may vary according to the federal prime interest rate. Where as with a payday loan the interest rate can vary from payday loan lender to lender.

Payday Loan – is it a Loan or a Gift? / A Procos

If you require any more information regarding payday loans, online payday loans, cash advances or any other payday loan for that matter, please do not hesitate to visit my site http://www.paydayloanswebsite.com

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Understanding Rectangles on Forex

Here’s is where we start to have some fun. Regardless of how you want to trade the markets you need an approach. It might be spinning a bottle, asking your Aunt Jenny what she thinks or just gut feel. However you do it, even though you may not think so, you have an approach.

The majority of traders will eventually use some form of technical analysis (also known as chart traders, market technicians and chartists). For every book that there is on making money trading there is probably an opposite book explaining why it can’t be done. Before you dismiss the last statement out of hand. Lets explore the argument that no matter what you do you can’t beat the market.

Rectangles can occur in any time frame and any market you are following. As with many chart patterns the pattern is in the eye of the beholder. I have found that some traders are better than others at identifying chart patterns. It may take some time before you can spot the most common patterns.

The rectangle contains price movement between two points in a rectangular shape to which we add lines to signify the upper boundary and lower boundary. These lines should be horizontal. Slanted rectangle will most probably fall into the realm of “Flags”, which we will discus in another lesson.

The top line should connect at least two bars and the bottom line should connect at least two bars. As most markets are in congestion most of the time rectangles are fairly common.

It is not necessary to draw the top and lower lines at the extreme of the congestion points but rather make sure the lines contain at least 95% of the congestion area. The longer the rectangle continues the more important the breakout.

To help identify a valid breakout there should be an increase in volume on the day (or time period) of the breakout. The breakout can occur in either direction but if you are in a defined up trend then an upside breakout is favored and vise versa for a down trend. If I am in a defined trend then I tend to view this pattern as a continuation patter unless it starts to break the other way.

There are a number of ways to trade the rectangle. You can buy or sell the breakout as it happens or you can wait to see if there is a pullback to the neckline. Once you have defined the rectangle you can also buy and sell at the boundaries of the rectangle. I prefer to buy at the lower boundary if in an up trend and sell at the upper boundary if in a down trend. This can be a very effective trade as the risk is small. If you sell at the upper boundary then your stop loss can be close to the boundary and vise versa for the long trade at the lower boundary.

If you sell the breakout place your protective stop inside the rectangle and do the same for buying the upside breakout. You can also measure the distance between the upper and lower boundaries and project the distance forward to get an indication of the size of the next move. If the distance from the upper to the lower boundary were 20 ticks then I would expect the next move to be at least 20 ticks.

Understanding Rectangles on Forex / Martin Chandra

Martin Chandra is a full-time investor. Learn more at here.

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Buying and Selling Currencies

Trading opportunities in the forex market deserve serious consideration as a diversification strategy for your portfolio.

While online equities and futures trading have enjoyed exponential growth and widespread notoriety over the past few years, online foreign exchange trading
is only now gaining popularity among seasoned active traders, commodity trading advisors (CTAs), and other professional money managers.

Until recently, large international banks dominated the foreign exchange market, only allowing access via telephone trading to a select few such as Fortune 1000 companies, large funds, high-net worth individuals, and so on. But now, the tide has turned and finally there are established online trading firms that provide individual investors with direct access to the largest, most liquid financial market in the world.

In this market you may buy or sell currencies. The objective is to earn a profit from your position. Placing a trade in the foreign exchange market is simple: the mechanics of a trade are virtually identical to those found in other markets, so the transition for many traders is often seamless.

Here are an example of how forex trading works. Say, a trader purchases 10,000 euros in the beginning of 2004 at the EUR/USD rate was .9600. In May of 2006 the trader exchanges his 10,000 euro back into US dollar at the market rate of 1.1800. In this example, the trader earned a gross profit of $2,200.

Currencies are quoted in pairs, such as EUR/USD or USD/JPY. The first listed currency is known as the base currency, while the second is called the counter or quote currency. The base currency is the ‘basis’ for the buy or the sell. For example, if you BUY EUR/USD you have bought euros (simultaneously sold dollars). You would do so in expectation that the euro will appreciate (go up) relative to the US dollar.

EUR/USD

In this example euro is the base currency and thus the ‘basis’ for the buy/sell. If you believe that the US economy will continue to weaken and this will hurt the US dollar, you would execute a BUY EUR/USD order. By doing so you have bought euros in the expectation that they will appreciate versus the US dollar. If you believe that the US economy is strong and the euro will weaken against the US dollar you would execute a SELL EUR/USD order. By doing so you have sold euros in the expectation that they will depreciate versus the US dollar.

GBP/USD

In this example the GBP is the base currency and thus the ‘basis’ for the buy/sell. By doing so you have bought pounds in the expectation that they will appreciate versus the US dollar. If you believe the British are going to adopt the euro and this will weaken pounds as they devalue their currency in anticipation of the merge, you would execute a SELL GBP/USD order. By doing so you have sold pounds in the expectation that they will depreciate against the US dollar.

USD/JPY

In this example the US dollar is the base currency and thus the ‘basis’ for the buy/sell. If you think that the Japanese government is going to weaken the yen in order to help its export industry, you would execute a BUY USD/JPY order. By doing so you have bought U.S dollars in the expectation that they will appreciate versus the Japanese yen. If you believe that Japanese investors are pulling money out of U.S. financial markets and repatriating funds back to Japan, and this will hurt the US dollar, you would execute a SELL USD/JPY order. By doing so you have sold U.S dollars in the expectation that they will depreciate against the Japanese yen.

USD/CHF

In this example the CHF is the base currency and thus the ‘basis’ for the buy/sell. If you think the Swiss franc is overvalued, you would execute a BUY USD/CHF order. By doing so you have bought US dollars in the expectation that they will appreciate versus the Swiss Franc. If you believe that due to instability in the Middle East and in U.S. financial markets the dollar will continue to weaken, you would execute a SELL USD/CHF order. By doing so you have sold US dollars in the expectation that they will depreciate against the Swiss franc.

Buying and Selling Currencies / Martin Chandra

Martin Chandra is a full-time investor. Learn more at here.

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