FrontStocks Has Improved its Partnership Conditions

We are glad to inform you that FrontStocks has increased the amount of its partnership reward.

This time, FrontStocks will pay out 45% of its profit to our Association. This means that we have increased the amount of your reward for trading with this broker.

Information on the new changes can be found in the ”Partner Rules” section, where you can see the rate changes regarding this broker.

The reward increase is another additional advantage in choosing this broker along with its good trading conditions, operational support service, prompt processing of funds withdrawal and profitable bonus promo-offers.

We thank you for being with us!

Best regards,
IAFT Administration

Morning motivation

Good morning, dear friends! I wish you good mood and profitable trading!


Every morning is a chance at a new day.

~Marjorie Hinckley

Lose an hour in the morning, and you will be all day hunting for it.

~Richard Whately

He, who every morning plans the transactions of the day, and follows that plan, carries a thread that will guide him through a labyrinth of the most busy life.

~Victor Hugo

TRADER'S DICTIONARY - B

Back Office

The departments and processes related to the settlement of financial transactions.

Back to Back

Transaction where a loan is made in one currency against a loan denominated in another currency.

Balance sheet

Financial statement showing a company’s assets, liabilities, and shareholders’ equity on a given date.

Balance of Payments

A systematic record of the economic transactions during a given period for a country. Can refer to either current account (which takes trade into account), capital account, or a combination thereof. Prolonged balance of payment deficits theoretically lead to currency depreciation.

Balance of Trade

Calculated by subtracting imports from exports. A negative balance of trade (when imports exceed exports) is called a "deficit," while a positive balance is known as a "surplus." The balance of trade is inversely related to the difference between savings and investment.

Bank of England

Central Bank for the UK, whose actions directly weigh on the value of the Pound Sterling.

Bank Line

A Line of credit provided by a bank.

Bank Notes

Issued as legal tender; while they can sometimes be converted into currencies, they are generally excluded from the forex market.

Bar Chart

A chart type consisting of four points: high price and low price (represented by a vertical bar), opening price (represented by a small horizontal line to the left of the bar), and closing price (represented by small horizontal line to the right of the bar).

Barrier Option

A type of option whose value/survival depends on whether the underlying security.currency breaks a predetermined price level at any time during the life of the option. Depending on market conditions, it is variously referred to as Down and Out call/put, Down and in call/put, Up and out call/put, and/or Up and in call/put.

Base Currency

Currency in which the operating results of the bank or institution is reported.

Basis

Difference between the cash price and futures price.

Basis Convergence

The process whereby the basis tends towards zero as the contract expiration date nears.

Basis Point

One per cent of one per cent. For example, 25 basis points is equal to .25%.

Basis Price

The price expressed in terms of yield-to-maturity or rate of return, rather than the actual unit price.

Basis Trading

The practice of taking opposing positions in the spot and futures markets with the goal of profiting from favorable changes between the two.

Basket

Group of currencies (as opposed to one single currency) normally used to peg/manage the exchange rate of another currency.

Bear Market

While precise standards vary, refers generally to prolonged period of falling asset prices.

Bear(ish)

Describes an an investor who believes that asset prices will fall.

Bear Put Spread

An options strategy that seeks to capitalize on a depreciating currency by buying a put option with a high strike price and selling one with a low strike price.

Bid Price

The price at which specific currency or contract can be sold. In practice, this can be understood as the number on the left side of the quote, which is usually the lower price. For example, in the quote EUR/USD 1.4122/26, the bid price is 1.4122; meaning you can sell one Euro for 1.4122 US dollars. Opposite of Ask/Offer price.

Big Figure

Refers to the first three digits of an exchange rate, such as the 2.30 in 2.3025. The big figure is often omitted in dealer quotes, such that a quote of "25/30" on dollar mark would indicate a price of 2.3025/2.3030.

Bilateral Clearing

In a system of limited foreign currency, payments are usually routed through the central bank, which is also charged with clearing the balance of payments.

Black-Scholes Model

The most common option pricing formula, which is based on a set of ideal assumptions that pertain mostly to the underlying security/currency.

Bollinger Bands

Technical analysis tool used to measure the highness or lowness of the price relative to previous trades, consisting of three bands: middle band (simple moving average), upper band (given number of standard deviations above the middle band), and lower band (given number of standard deviations below the middle band)

Book

Summary of a (professional) trader’s total positions; may also include gains and losses.

Booked

Refers to the location where the transaction is recorded, which may differ from the location/country of negotiation.

Break Even Point

The price at which the option buyer recovers the necessary premium paid, resulting in neither loss nor gain. With a call option, the break even point is simply the premium plus the strike price.

Break of Which (BOW)

Based on a series of predetermined levels, this describes the belief that if a price breaks a specific level, it will move towards the next level, and continue (upwards or downwards) if it then breaks through that level.

Break Out

Describes a technical scenario in which a currency/security is seen to have exited a pre-existing pattern, such as a range or other trend.

Breakaway Gap

Price gap that forms following breakout which often represents a (temporary) pricing inefficiency following a long period of consolidation.

Bretton Woods

1944 agreement that used the price of gold to fix exchange rates for major currencies. It was replaced in 1971 by a floating exchange rate system that remains in place today.

Broken Dates/Period

Describes deals involving non-standard periods.

Broker

An agent who executes orders to buy and sell currencies either for a commission or based on a bid/ask spread. In the foreign exchange market, brokers essentially serve as intermediaries between banks. This commission is known as the brokerage fee.

Bull Market

While precise standards vary, refers generally to prolonged period of rising asset prices.

Bull(ish)

Describes an an investor who believes that asset prices will rise.

Bull Spread

An options strategy that seeks to capitalize on a (moderate) rise in exchange rates, executed typically by buying a call option with a low strike price and selling one with a high strike price. Also known as Buying the Spread.

Bulldogs

Bonds issued in the UK by foreign institutions, denominated in British Pounds.

Bullion

Refers to gold bars, as opposed to coins or indirect ownership of gold.

Bundesbank (BUBA)

Central bank of Germany and most influential member of the European System of Central Banks (ESCB).

Butterfly Spread

An options strategy in which options with different expiration dates and strike prices are bought and sold simultaneously against each other.

Buyer/Taker

Refers to the buyer/holder of an option, who has the right

but not the obligation, to purchase the underlying security.

PROMO

Dear IAFT clients!

We are pleased to inform you that we are carrying out joint promo with 4XP company from 10th of January to 10th of February , 2013. This promo will allow you to double your deposit and get maximum profit from trading on 4XP company accounts.

Conditions:

• If you credit your trading account with $1000, you will receive $1000 bonus. If you credit your account with $500, you'll get $500 bonus.
• Bonus can be used in trading/drawdown.
• You can withdraw your deposit and profit any time.
• In order to withdraw bonus you need to trade 100 lots ($500+$500) or 200 lots ($1000+$1000).
• If you decide to withdraw your funds before trading needed amount of lots bonus gets canceled.

In order to participate in the promo you need to open trading account, fulfill all the above mentioned conditions and start executing transactions.

If any questions arise please do not hesitate to contact our support service, we will be happy to assist you!

IAFT – Everything we do, we do it for you!

Best regards,
IAFT Administration

Windsor Brokers: new account type for IAFT clients

Dear IAFT clients!

We're glad to let you know that Windsor Brokers company offers IAFT clients completely new account type – Dynamic STP. Dynamic STP trading account was designed for Forex traders who prefer competitive spreads, as well as no changes in quotes.

You can open Dynamic STP account through IAFT by following this instruction:

• Apply to partner@tradersunion.com about receiving account number
• Go to the broker's site without IAFT referral link.
• Go to the create account page and choose: Account Type – Dynamic STP. Reply - “Yes” on “Are you referred by a BI (Business Introducer)?” question.
• In the account number field enter the account number received from the support service. Finish the application form.
• Add the account number into the “Accounts” sections in your Personal Office at the IAFT website.

If any questions arise please do not hesitate to contact our support service, we will be happy to assist you!

Best regards,
IAFT Administration

Proverbs

· Buy low, sell high.
· Buy high, sell higher.
· Don’t fight the Fed.
· Don’t fight the tape.
· Pigs get fat, hogs get slaughtered. Or: Pigs get FED, hogs get slaughtered.
· Bulls make money. Bears make money. Pigs get slaughtered.
· Trade in the direction of the trend.
· The trend is your friend.
· The trend is not your friend when it ends.
· The crowd is right during the trends but wrong at both ends. (Humphrey B. Neill)
· Buy the dips, sell the rallies.
· Buy the rumor, sell the fact.
· Buy into bad news and sell into good news.
· Buy the panic, sell the greed.
· Buy strength, sell weakness.
· Never short a dull market.
· Cut losses short, let profits run.
· When in doubt, stay out.
· It’s easier to stay out than to get out.
· Get out when you can, not when you have to.
· Minimize losses.
· Never let a winner turn into a loser.
· Never let a small loss turn into a big loss.
· Lose your opinion, not your money.
· Trade what you see, not what you think.
· When in doubt, sell. You will usually get another chance in something else.
· Quickly exit losing trades and move on to the next opportunity.
· Date them, don’t marry them.
· You can’t go broke taking profits.
· A profitable trade is a good trade.
· Take profits relentlessly.
· Profits aren’t as important as preserving your capital.
· Manage the risk and the profits will take care of themselves.
· It’s better to own too few shares than too many.
· There are more fools among buyers than among sellers.
· The open belongs to the amateurs and the close belongs to the professionals.
· Plan your trades. Trade your plan.
· Always sell what shows you a loss and keep what shows you a profit. (Reminiscences of a Stock Operator)
· There are few if any chronic bears, as pessimists have a hard time making a living in America. (John Rothchild)
· There’s nothing wrong with cash. It gives you time to think. (Robert Pretcher, Jr.)
· Predetermine the exit strategy for all trades. Always have a plan for selling, as well as for buying.
· Know the fundamentals. Trade the technicals.
· Volume precedes price.
· Price has memory.
· Bottoms take longer to form than tops.
· Buy at support, sell at resistance.
· Sell on the stall before the fall.
· Buy ‘em when they’re sleepin’, hold ‘em when they’re creepin’, sell ‘em when they’re leapin’.
· The best time to buy is when blood is running in the streets. (Nathan M. Rothschild)
· Buy when most people are selling, and sell when most people are buying.
· Buy from the scared, sell to the greedy.
· Buy their pain, not their gain.
· Beat the crowd in and out the door. You have to take their money before they take yours, period.
· Successful traders are quick to change their minds and have little pride of opinion. (Don Worden)
· The most profitable traders spend 80 percent of their time finding a fast-moving market, and 20 percent of their time trading it. (David Bowden)
· There’s only one indicator that counts: The Check-Book Indicator. (David Bowden)
· Risk varies inversely with knowledge. (Irving Fisher)
· I made my money because I always got out too soon. (Bernard Baruch)
· Don’t try to buy at the bottom and sell at the top. It can’t be done except by liars. (Bernard Baruch)
· Even being right three or four times out of 10 should yield a person a fortune if they have the sense to cut losses quickly. (Bernard Baruch)
· Throughout all my years of investing I’ve found that the big money was never made in the buying or the selling. The big money was made in the waiting. (Jesse Livermore)
· The faster a stock has climbed, the quicker it will fall. (Menschel)
· The easier information arrives, the less valuable it is. (Menschel)
· The more certain the crowd is, the surer it is to be wrong. (Menschel)
· It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong. (George Soros)
· My approach works not by making valid predictions but by allowing me to correct false ones. (George Soros)

TRADER'S DICTIONARY - A

Account History
Listing of all transactions (trading and non-trading) completed for a given account.
Accounting Currency
Currency in which account deposit/withdrawal operations are denominated. Not to be confused with the currencies ultimately bought or sold with account funds.
Accrual Swap
An interest rate swap under which a counterparty pays a vanilla floating reference rate, usually three or six month LIBOR, and receives LIBOR plus a significant spread. Interest payments to this counterparty will only accrue on days when rates stay within a certain range dictated by preset upper and lower boundaries.
Aggregate Demand
Used loosely to describe all private and public sector demand for goods and services produced by a given country. In practice, it is interchangeable with Gross Domestic Product (GDP). Academic notions of aggregate demand make a distinction between short-term and long-term, and are modeled as a function of price levels.
Aggregate Risk
Can very depending on context, but generally defined as the amount of exposure a customer has to the (potential) movement of spot and forward rates.
Aggregate Supply
Measures the total volume of goods and services produced by a given economy. Generally speaking, an increase in demand should lead to an expansion of aggregate supply in the economy. In the event of a mismatch between aggregate supply and aggregate demand, prices would change (i.e. inflation/deflation) in order to return the economy to equilibrium.
Aggressor
A trader that has committed to the existing price in the market.
Agio
An archaic term used to describe the difference/premium between the official rate and the market rate.
American Depositary Receipt (ADR)
A vehicle which effectivelycenables American investors to own shares in foreign corporations. ADRS trade on exchanges like conventional securities. The sponsoring bank collects dividends, pays local taxes and converts them to dollars for distribution to American shareholders. It should be noted that ADRs are affected both by company performance and by changes in exchange rates.
American Option
An (currency) option which may be exercised at any time prior to expiration.
Appreciation
Common term used to describe a currency increasing in value, as a result of market forces as opposed to official adjustment.
Arbitrage
The simultaneous purchase and sale of an equivalent security in different markets, with the goal of profiting from pricing inconsistencies. In the context of currency trading, arbitrage applies to a mismatch in paired exchange rates between three currencies (triangular arbitrage) or an inefficiency between identical securities listed in different markets that arises from exchange rate fluctuation.
Around
Dealer jargon used to quote the forward premium/discount. For example, "two-two around" would translate into 2 points on either side of the present spot value.
Asset Allocation
Investment practice that divides funds among different types of securities/vehicles/markets in order to achieve a return that is calibrated to an investor’s risk profile.
Ask (Offer) Price
The price at which specific currency or contract can be purchased. In practice, this can be understood as the number on the right side of the quote, which is usually the higher price. For example, in the quote EUR/USD 1.4122/26, the ask price is 1.4126; meaning you can buy one Euro for 1.4126 US dollars. Opposite to bid price.
Association Cambiste International
The worldwide affiliation of foreign exchange dealers that together make most of the market for forex trading.
At Best
An type of order to buy or sell at the best rate that is currently available in the market.
At or Better
A type of order to deal at or above (whichever is available) a given price.
At Par Forward Spread
Describes a scenario in which the forward price (for a given time period) is equivalent to the spot price.
At the Price Stop-Loss Order
A type of stop-loss order that must be executed at the requested price regardless of "market conditions."
At-the-Money
Describes an option whose strike/exercise price is equal to (or close to) the current market price of the underlying security.
Auction
Sale of securities to the highest bidder(s). In finance, it is mainly used by governments for the allocation of foreign exchange and government paper, such as US Treasury Bills. Sometimes, auctions are conducted in terms of yield, rather than price.
Autocorrelation
The correlation between changes in a single variable over different time periods. If a price is negatively autocorrelated, a move down in one period would suggest a move up in the next, and vice versa. If it were positively autocorrelated, a move down would suggest a move down in the following period as well, and vice versa.
Average Rate Option
A hedging tool where a series of spot rate fixings during the life of an option are used to calculate an average rate. If the average rate is below the strike price, then the bank must settle the difference with the customer. Otherwise, the the option expires worthless with no payment made. Average rate options are generally suited for those who need protection against adverse currency moves that still wish to retain full upside potential. Also known as an Asian Option.
Aussie
Slang term for the Australian dollar.