Google
ENGG HELPS AND EARN MONEY: November 2007

Monday, November 5, 2007

IBM placement paper 1

1) I give a jcl code with
Programmer name: smith
Jobname:ABC
Jobclass=c
Message class = a
All messages are to be displaced code it in a JCL.
A) //ABC,smith,class=c,message class=a,message level=(2,1)
B) //ABC,smith,class=c,message class=a,message level =(!,1)
C) //ABC,smith,class=c,message class=a,message level=(0,1)
D) none of these.
2) for a cobol program

Move 5 to work-sd.
A statement which says that the value of work-st is 0.
perform Para1.
……………
Para1.
Add 3 to work-sd
Add 2 to work-st
If work-st <11 go to main-para.
………………

go to para1.

Wat wud b the value of work-sd?
a) 15
b) 18
c) 10
d) none

3) given 2 tables T1 and T2.

T1 T2
A 1
B 2
3
u make a query

SELECT * FROM T1,T2.
Wat is the no: of rows that are fetched frm this query?
a) 4
b) 5
c) 6
d) 9

4) wat is the full form of RACF?
5) who is the data base manager of db2?
a) buffer register
b) runtime suprivisor
c) DBRM
d) None

5)u have a file with DISP=SHR, when u open the file in output mode
a) the records get appended
b) the records gets overwritten
c) the job abbends
d) none of these

6) u open a file with disp= MOD, when u open the file in output mode
(same options as the above question)
7) to exclude some records while sorting which parameter do we use?
a) OMIT
b) EXCLUDE
c) ….d)….

8)when u insert into db2 with cics, it works as
a) foreground
b) a job working in background
c) ..
d) …..

9)u have a dataset TIME.WORK.OCT88, u want to concatenate other datasets
like TIME.WORK.JUL88, TIME.WORK.APR88, TIME.WORK.MAY88. how do u do that?

a)//DDname DD DSN = TIME.WORK.OCT88, DISP = SHR
DD DSN = TIME.WORK.JUL88, DISP = SHR
DD DSN = TIME.WORK.APR88, DISP = SHR
DD DSN = TIME.WORK.MAY88, DISP = SHR
b)//DDname DD DSN = TIME.WORK.JUL88, DISP = SHR
DD DSN = TIME.WORK.OCT88, DISP = SHR
DD DSN = TIME.WORK.APR88, DISP = SHR
DD DSN = TIME.WORK.MAY88, DISP = SHR
c)//DDname DD DSN = TIME.WORK.APR88, DISP = SHR
DD DSN = TIME.WORK.JUL88, DISP = SHR
DD DSN = TIME.WORK.MAY88, DISP = SHR
DD DSN = TIME.WORK.OCT88, DISP = SHR
e) none of these

10) when db2 entries are made while working in cics, the enteries
should be made in
a) TCT
b) PCT
c) DCT
d) RCT

11) find the odd one out
a) KSDS
b) RRDS
c) LDS
d) PDS

12) full form of VTOC
13) question based on SKIP and COUNT parameter

Sun micro system

1.struct XXX
{
int a;
float b;
char *s;
}X;
If optimization :X not used in compiler then un used
bits_________________. give your assumption_______________.

2.struct XXX
{
int a:6;
float b:4;
char s;
}structure;
size og (structure);
3.class used for the multiple inheritence in yava_________________
(a) Anonymous class
(b) inner class
(c) abstreet class
(d) none
4. XDR fixes in which part of OS1 stack.
5. LDAP is____________service protocol.
6. Given definition for a function which returns a array of pointers with
argument of int*.
7.Give a function declaration with no arguments which refers a two dimensional

array
8.Pick up the correct function declaration.
1.void *[] name();
2 void int[][] name();
3 void ** name();
4 none of the above.
9.Give the difference between monolithic and microlithic kernal:
a mololic large
b micro used in embedded systems.
c.none.
10.rPC coresponds to_______________in OSI stack.
11.find the no.of page faults using LRU stack.
eg.3 4 4 6 7 8 1 2 .. ..
12.the inorder representation of a tree 41523 and preorder is 211513 Draw it?
13. when does a stack member will be initialised
(a) when object is created
(b) when object is initialised.
(c) doesnot depend on object.
(d) none.
14 no.of CPU in a multiprocess is contrassed by
(a) RISC nohere of CPU
(b) memory
(c)___________
(d)_____________
15 main()
{
char *s;
s="hot java";
strcpy(s,"solarrs java")
}
16 main()
{
printf("hot java");
fork()
exit(0);
}
1. when redirected to a sreen what will be printed.
2 when redirected to file what will be printed.
17.main()
{
int ret;
ret=fork();ret=fork();ret=fork();ret=fork();
if(!ret)
printf("sun");
else
printf("solaris");
how many sun 4 solaris will get printed
18. main()
{
char *p='a';
int *i=100/*p;
}
what will be the value of *i= 1
1.03
cannot be defined.
19 which data structure gives efficient search
1 B-tree
2 binary tree
3 array
4 linked list
20. struct point
{
struct point *next;
int data;
}x;
main()
{
int i;
for(x=p;x!=0;)
x=x->next,x++;
freelist(x);
}
freelist(x)
{
free(x);
return
}
find error?
21. mutex and _________are similar locking mechanisms.
22.nextt question on from pointers and functions( highfy) take care.
23. SNMP and SMIP transport layer protocols for TCP/IP&OSI.
24 unix : difference between select and poll

TCS C PAPER-2003

TCS C PAPER-2003
1. fn(int n,int p,int r)
{
static int a=p;
switch(n);
{
case4: a+ = a*r;
case3: a+ = a*r;
case2: a+ = a*r;
case1: a+ = a*r;
}
}
The aboue programme calculates
a.Compound interest for 1 to 4 years
b.Amount of Compound interest for 4 years
c.Simple interest for 1 year
d.Simple interest for 4 year
2. int a[50], *pa;
pa = &a[0];
In order to access 5th element, find the incorrect one
a.pa[5]
b.a[5]
c. *(*(pa+5))
d.*(a+5)
3. Regarding the variables select incorrect one
Ans. Auto variables select incorrect one
4. Write onest equivalent to the following two
x + sqrt(a);
return(x);
Choose one of the alternatives
a.printf("%d",sqrt(a));
b.return(sqrt(a));
c.printf("sqrt(a)");
b.return(a*a*a);
5. Which of the following is not an infinite loop
a.while(i){....}
b.do{......} while(i);
c.for(ii)
d.#define TRUE 0
while(TRUE){....};
6. What does the following function print ?
func(int i)
{ if (i%2)
return 0;
else
return 1;
}
main()
{
int i=3;
i=func(i);
i=func(i);
printf("%d",i);
}
a.2 b.3 c.1 d.0
7.to10.th bit: Choose one of the alternatives for the following
a.float b.int c.char d.string
7.'9'
8."1e02"
9.10e03
10.15
11. Consider the following structure
struc num_name{int no;
char name[25];}
struc num_name n1[]={{12,"find"},{15,"matrix"},{8,"pick"}};
printf("%d%d",n1[2],no,(*(n1+2)),no+1);
What does the above st. do ?
a. 8,9 b. 8,8 c. 9,9 d. 8,unpredictable value
12. for(i=0; i!=10; i+=2)
printf(".....");
How many time will it execute ?
a.10 b.0 c.5 d.not even once
13. 20 bytes are allocated to a string s
s="ENIRANC B"
l = strlen(s);
then i = ?
a.20 b.22 c.21 d.8
14. y=5;
if ( x == 10)
else if ( x == 9)
else y=3;
then y = ?
a.8 b.7 c.5 d.0
15. Which is incorrect ?
a.a+=b;
b.a*=b;
c.a>=b;
d.a**=b;
16. operator for
a. not available b. ** c. ^ d. %
17. cond1? cond2 ? cond3 ? : exp2 : exp2 : exp3 :exp4
the equvalent set of statements to the above is
a. b. c. d.
18. valuue stored in a variable of type double is
a. can be less athan int or float or long
b. always > int
c. always < long
d. always > float
19. Thetre are 100 functions and first 50 are in file 1.c and rest
in file 2.c then they must be declared in file 1.c as
a. auto
b. global
c. static
d. external
20. struct out {
struct in{ char c;int d;}s1,*p1;
}a1, *pa1;

pa1 = &a1;
a1.p1 = &s1;
Which is incorrect?
a. a1.p1->c
b. pa1->p1->c
c. a1->p1
d. a1.s1.c
21. if a=z then value a <<1 is ?
a. 3 b.4 c.2 d.1
22. #define prod(a,b) a*b
x = 2; y = 2;
prod(x+2,y+1) = ?
a. 6 b.12 c. 7 d.16
23. int sum = 1;
switch (2)
{
case 2: sum sum+2;
case 3: sum*=2; break;
defdault: sum = 0;
}
which is the value of sum ?
a. 2 b. 6 c. 1 d. 0
24. Which one of the following is invalid?
a.if(a==1) b. if(a != 3)
c. if(a25. int x = 5, *p;
p = &x;
printf("%d",++ *p); what is the output?
a. 2 b. 6 c.1 d. 0
26. unsigned int i = 10;
while (i>=0) {---------; i--}
How many times the loop is executed?
a.10 b.9 c. infinite d.11
27. pick the odd man out
a. malloc
b. calloc
c. realloc
d. free
28. pick the odd man out
a. c = fgetc(stdin)
b. c= getch();
c. -----
d. gets(s);
29. Which is incorrect regarding a recursive function
a. does not return a value at all
b. calls itself
c. equals to a loop
d. has a termination condition
30. Write an expressionfor " either x lies in the
range of 10 to 5o or y = 0"
31. x = 7; y= 0;
if(x ==6) y =7;
else y = 1;
what is the vcalue of y?
32. Choose the incorrect one
auto variables within a function are
a. global
b. local
c. its type must be declared before using
d. -----
33. The delimitor for statements is
a. semicolon
b. colon




QUANTITATIVE APTITUDE SECTION

1. Two pencils costs 8 cents, then 5 pencils cost how much

Sol: 2 pencils è 8 cents => 1 pencil è 4 cents

Therefore 5 pencils cost = 5 * 4 = 20 cents

2. A work is done by two people in 24 min. one of them can do this work a lonely
in 40 min. how much time required to do the same work for the second person.

Sol: (A+B) can do the work in = 1/24 min.

A alone can do the same work in = 1/40 min.

B alone can do the same work in = (A+B)’s – A’s = 1/24 – 1/40 = 1/60

Therefore, b can do the same work in = 60 min

3.A car is filled with four and half gallons of oil for full round trip. Fuel is taken
1/4 gallon more in going than coming. What is the fuel consumed in coming up?

Sol Before the trip, car is filled with = 4 ½ gallon of oil

Let ‘X’ be the quantity of fuel consumed for the trip in one direction

The fuel consumed while going = X + ¼

The fuel consumed while coming = X

Therefore, the fuel consumed for the trip = (X + ¼) + X = 4 ½

ð 2X + ¼ = 4 ½ => 2X = 4 ½ - ¼ => 2X = 4 ¼ => X= 2. approx

Therefore the fuel consumed while coming = 2 gallon

4. Low temperature at the night in a city is 1/3 more than 1/2 high as higher
temperature in a day. Sum of the low temperature and highest temp. is 100
degrees. Then what is the low temp?

Sol: 40 deg.





5. A person, who decided to go to weekend trip should not exceed 8 hours
driving in a day. Average speed of forward journey is 40 m/h. Due to traffic
in Sundays, the return journey average speed is 30 m/h. How far he can select
a picnic spot?

a) 120 miles
b) Between 120 and 140 miles
c) 160 miles

Answer: 120 miles

6. A salesperson multiplied a number and got the answer 3, instead of that number divided by 3.What is the answer he actually has to get?

Sol: (1/3) *1 * 3 = 3, so number = 1

Divided by 3

Answer: 1/3.


7. A ship started from port and moving with I miles per hour and another ship started from L and moving with H miles per hour. At which place these two ships meet?

|----|----|----|----|----|----|
port G H I J K L

Sol: Answer is between I and J and close to J or (L*I*H)/(H+I)


8. A building with height D shadow up to G. A neighbor building with what
height shadows C feet.

|----|----|----|----|----|----|----|
A B C D E F G H

Sol: B Ft. or CD/G

9. A person was fined for exceeding the speed limit by 10mph. Another person
was also fined for exceeding the same speed limit by twice the same. If the
second person was traveling at a speed of 35 mph, find the speed limit.

Sol: Let ‘x’ be the speed limit

Person ‘A’ was fined for exceeding the speed limit by = 10mph
Person ‘B’ was fined for exceeding the speed limit by = twice of ‘A’
= 2*10mph=20mph
given that the second person was traveling at the speed of 35mph

=> 35mph – 20mph = 15mph

Therefore the speed limit is =15 mph


10.A bus started from bus stand at 8.00am, and after 30 minutes staying at
destination, it returned back to the bus stand. The destination is 27 miles from
the bus stand. The speed of the bus is 18mph. In return journey bus travels
with 50% fast speed. At what time it returns to the bus stand?

Sol: 11.00am

11.In a mixture, R is 2 parts S is 1 part. In order to make S to 25% of the mixture,
how much r is to be added?

Sol: One Part

12. Wind flows 160 miles in 330 min, for 80 miles how much time required.

Sol:

13. With 4/5 full tank vehicle travels 12 miles, with 1/3 full tank how much
distance travels

Sol: ( 5 miles )


14. Two trees are there. One grows at 3/5 of the other in 4 years, total growth of
trees is 8 ft. what growth will smaller tree will have in 2 years

Sol: ( < 2 ft. )

15. A storm will move with a velocity of towards the center in hours, at the same
rate how much far will it move in hrs.

Sol: ( but the answer is 8/3 or 2 2/3 )





1. In a two-dimensional array, X (9, 7), with each element occupying 4 bytes of memory, with the address of the first element X (1, 1) is 3000; find the address of X (8, 5).
Ans: 3212

2. In the word ORGANISATIONAL, if the first and second, third and forth, forth and fifth, fifth and sixth words are interchanged up to the last letter, what would be the tenth letter from right? Ans:I

3. What is the largest prime number that can be stored in an 8-bit memory? Ans : 251

4. Select the odd one out…..a. Java b. Lisp c. Smalltalk d. Eiffel.
5. Select the odd one out a. SMTP b. WAP c. SAP d. ARP
6. Select the odd one out a. Oracle b. Linux c. Ingress d. DB2
7. Select the odd one out a. WAP b. HTTP c. BAAN d. ARP
8. Select the odd one out a. LINUX b. UNIX c. SOLARIS d. SQL SEVER
9. Select the odd one out a. SQL b. DB2 c. SYBASE d. HTTP

10. The size of a program is N. And the memory occupied by the program is given by M = square root of 100N. If the size of the program is increased by 1% then how much memory now occupied? Ans: 0.5%(SQRT 101N)

11. A man, a woman, and a child can do a piece of work in 6 days. Man only can do it in 24 days. Woman can do it in 16 days and in how many days child can do the same work? Ans: 16
12. In which of the system, decimal number 184 is equal to 1234? Ans: 5

13. Find the value of the 678 to the base-7. Ans: 1656
14. Number of faces, vertices and edges of a cube Ans: 6 8 12
15. Complete the series 2, 7, 24, 77,__ Ans: 238

16. Find the value of @@+25-++@16, where @ denotes "square" and + denotes "square root". Ans: 621

17. Find the result of the following expression if, M denotes modulus operation, R denotes round-off, T denotes truncation: M(373,5)+R(3.4)+T(7.7)+R(5.8) Ans:19

18. If TAFJHH is coded as RBEKGI then RBDJK can be coded as? Ans: qcckj

19. G(0)= -1, G(1)=1, G(N)=G(N-1) - G(N-2), G(5)= ? Ans: - 2
20. What is the max possible 3 digit prime number? Ans: 997

21. A power unit is there by the bank of the river of 750 meters width. A cable is made from power unit to power plant opposite to that of the river and 1500mts away from the power unit.The cost of the cable below water is Rs.15/- per meter and cost of cable on the bank is Rs.12/-per meter. Find the total of laying the cable. Ans : 1000 (24725-cost)

22. The size of a program is N. And the memory occupied by the program is given by M = square root of 100N. If the size of the program is increased by 1% then how much memory now occupied? Ans:0.5%(SQRT 101N)

23. In Madras, temperature at noon varies according to -t^2/2 + 8t + 3, where t is elapsed time. Find how much temperature more or less in 4pm to 9pm. Ans:At 9pm 7.5 more

24. The size of the bucket is N kb. The bucket fills at the rate of 0.1 kb per millisecond. A programmer sends a program to receiver. There it waits for 10 milliseconds. And response will be back to programmer in 20 milliseconds. How much time the program takes to get a response back to the programmer, after it is sent? Ans: 30

25. A man, a woman, and a child can do a piece of work in 6 days. Man only can do it in 24 days. Woman can do it in 16 days and in how many days child can do the same work? Ans: 16

26. If the vertex (5,7) is placed in the memory. First vertex (1,1) `s address is 1245 and then address of (5,7) is ---------- Ans: 1279

27. Which of the following are orthogonal pairs?
a. 3i+2j b. i+j c. 2i-3j d. -7i+j Ans: a, c

28. If VXUPLVH is written as SURMISE, what is SHDVD? Ans: PEASE

29. If A, B and C are the mechanisms used separately to reduce the wastage of fuel by 30%, 20% and 10%.What will be the fuel economy if they were used combined.
Ans: 20%

30. What is the power of 2? a. 2068 b.2048 c.2668

31. Complete the series. 3, 8, --, 24, --, 48, 63. Ans: 15.35

32. Complete the series. 4, -5, 11, -14, 22, -- Ans: -27

33. A, B and C are 8 bit no's. They are as follows:
A -> 1 1 0 1 1 0 1 1
B -> 0 1 1 1 1 0 1 0
C -> 0 1 1 0 1 1 0 1
Find ((A-B) u C)=? Hint: 109…. A-B is {A} - {A n B}

34. A Flight takes off at 2 A.M from northeast direction and travels for 11 hours to reach the destination, which is in northwest direction. Given the latitude and longitude of source and destination. Find the local time of destination when the flight reaches there? Ans: 7 am

35. A can copy 50 papers in 10 hours while both A & B can copy 70 papers in 10 hours. Then for how many hours required for B to copy 26 papers? Ans: 13

36. A is twice efficient than B. A and B can both work together to complete a work in 7 days. Then find in how many days, A alone can complete the work? Ans: 10.5

37. A finish the work in 10 days. B is 60% efficient than A. So how many days do B takes to finish the work? Ans :100/6

38. A finishes the work in 10 days & B in 8 days individually. If A works for only 6 days then how many days should B work to complete A's work? Ans: 3.2 days

39. Given the length of the 3 sides of a triangle. Find the one that is impossible? (HINT: sum of smaller 2 sides is greater than the other one, which is larger)

40. Find the singularity matrix from a given set of matrices? (Hint det(A)==0))

41. A 2D array is declared as A[9,7] and each element requires 2 byte. If A [1,1] is stored in 3000. Find the memory of A[8,5] ? Ans: 3106

42. Sum of slopes of 2 perpendicular st.lines is given. Find the pair of lines from the given set of options, which satisfy the above condition?

43. (a) 2+3i (b)1+i (c) 3-2i (d) 1-7i .Find which of the above is orthogonal. Ans : a,c

44. (Momentum*Velocity)/(Acceleration * distance). Find units. Ans: mass

45. The number 362 in decimal system is given by (1362) x in the X System of numbers find the value of X a} 5 b) 6 c) 7 d) 8 e) 9

46. Given $ means Tripling and % means change of sign then find the value of $%$6-%$%6

47. My flight takes of at 2am from a place at 18N 10E and landed 10 Hrs later at a place with coordinates 36N70W. What is the local time when my plane landed?
6:00 am b) 6:40am c) 7:40 d) 7:00 e) 8:00
(Hint: Every 1 deg longitude is equal to 4 minutes. If west to east add time else subtract time)

48. Find the highest prime number that can be stored in an 8 bit Computer?

49. Which of the following set of numbers has the highest Standard deviation?
a)1,0,1,0,1,0 b) -1, -1, -1, -1, -1, -1
c)1,1,1,1,1,1 d) 1,1,0, -1,0, -1

How To Make Money In Forex

How To Make Money In Forex

As you might already know, forex is an acronym for foreign exchange -- is the international currency market where money is being sold and bought. Forex certainly is a new and exciting way to make money in the huge global currency market.

Making money in forex is very similar to stocks, options, or futures. You will be provided with a list of currency pairs each is coming along with graphs which you can select and trade. You can sell (or short) if you expect the graph to go down and you can buy (long) if you expect the graph to go up.

How Can I Make Money in Forex Trading?

When you buy a currency in the forex market, you are actually doing two trades. You are selling one currency and buying the other. You have known what currency you are betting for/against, as opposed to the stock market where you only need to know one stock.

Unlike stock trading, most online forex firms don't charge commission. They make money by giving you a worse spread then they get and by charging you interest on margin. This spread is usually two or three pips (explained below).

Margins are huge in currency trading; you can easily be accepted for 200 to margin on-line. Some forex firms will give you up to 400:1 margin. To be honest, there is very little regulation in this industry, which means you can move $2,000,000 worth of currency with only $10,000 in your account. You can even open an account with as little as $300.

Profits in forex are measured in "pips" or "points." A pip is 1/1000 of dollar. For example if you buy the dollar (USD) against the euro (EUR), and it went in your direction from $1.300 to $1.299, you have made a 1 pip profit. On a $10k order at full margin (200:1), this is equivalent to $50 in profit.

How Much I Can Earn?

Virtually, the limit is the sky. As much as how long you trade and keep earning. Trading will be within 24 hours 5 days a week. How fast you can earn is depending on the volatility of the market. If it is very volatile (moving ups and down quickly), you probably can earn a lot of pips if you are lucky.

However, average earning for professional trader is 100 to 200 pips a day that is equal to 100% to 200% return on investment. George Soros, the heart of inspiration for every forex trader, made a history in September 22, 1992 when he bagged US$1 Billion and ruined the Bank of England. This called The Black Wednesday.

Is It a Risky Business?

What Do I Need to Trade?

The first thing you need to trade is a broker. Register with any of them and they will provide you a software platform that equip with a list of currency pairs, graph, technical indicators free to use. The broker usually provides you free practices by providing virtual money for you to practice enhance your skills.

There are two schools of thought like in stocks about how to make money in forex trading. On one side you have the technical, which are basically charts and other statistical methods that used to try and guess the market. On the other side you have the fundamentals, which study things like countries domestic product, interest rates, economic output, etc. to try and forecast currency movements based on these criteria.

Of course the best answer is always in the middle, using a combination of graphs and charts along with real world knowledge of political events and economic statistics to make the market more predictable for you.

If you want to learn more about mainstream technical analysis tools, in my experience, the most honest person who teaches mainstream technical analysis in the best way is Peter Bain (Forex Mentor). Whether Peter trades himself, and whether Peter ever made money in forex is definitely questionable. But if you want to get good education and overview of many different mainstream technical analysis tools, I think Peter is good for that.

Is It a Risky Business?

Is there any risk involved? Yes. Everything has risk whether it is involve time, life, money, etc. Risk unfortunately can not be avoided. No absolutely not, that's impossible for everything. But as any other thing else you can minimize risk and increase profit, that's how to make money.

I feel so grateful and lucky to be able to trade forex full time. Not only is it fun, and I feel passionate about it, but it's also monetarily rewarding, and it gives me freedom to do it from almost anywhere in the world. I hope to be able to share some of this luck and gratefulness with you. And truly from the bottom of my heart and my being, I am wishing you tremendous success and abundance in forex or any other business you do.

Friday, November 2, 2007

Make Money with Currency Trading on FOREX

For those unfamiliar with the term, FOREX (FOReign EXchange market), refers to an international exchange market where currencies are bought and sold. The Foreign Exchange Market that we see today began in the 1970's, when free exchange rates and floating currencies were introduced. In such an environment only participants in the market determine the price of one currency against another, based upon supply and demand for that currency.

FOREX is a somewhat unique market for a number of reasons. Firstly, it is one of the few markets in which it can be said with very few qualifications that it is free of external controls and that it cannot be manipulated. It is also the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars a day. With this much money moving this fast, it is clear why a single investor would find it near impossible to significantly affect the price of a major currency. Furthermore, the liquidity of the market means that unlike some rarely traded stock, traders are able to open and close positions within a few seconds as there are always willing buyers and sellers.

Another somewhat unique characteristic of the FOREX money market is the variance of its participants. Investors find a number of reasons for entering the market, some as longer term hedge investors, while others utilize massive credit lines to seek large short term gains. Interestingly, unlike blue-chip stocks, which are usually most attractive only to the long term investor, the combination of rather constant but small daily fluctuations in currency prices, create an environment which attracts investors with a broad range of strategies.

How FOREX Works

Transactions in foreign currencies are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday to 10:00 pm GMT on Friday). In almost every time zone around the world, there are dealers who will quote all major currencies. After deciding what currency the investor would like to purchase, he or she does so via one of these dealers (some of which can be found online). It is quite common practice for investors to speculate on currency prices by getting a credit line (which are available to those with capital as small as $500), and vastly increase their potential gains and losses. This is called marginal trading.

Marginal Trading

Marginal trading is simply the term used for trading with borrowed capital. It is appealing because of the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and open bigger positions with a much smaller amount of actual capital. Thus, one can conduct relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Marginal trading in an exchange market is quantified in lots. The term "lot" refers to approximately $100,000, an amount which can be obtained by putting up as little as 0.5% or $500.

EXAMPLE: You believe that signals in the market are indicating that the British Pound will go up against the US Dollar. You open 1 lot for buying the Pound with a 1% margin at the price of 1.49889 and wait for the exchange rate to climb. At some point in the future, your predictions come true and you decide to sell. You close the position at 1.5050 and earn 61 pips or about $405. Thus, on an initial capital investment of $1,000, you have made over 40% in profits. (Just as an example of how exchange rates change in the course of a day, an average daily change of the Euro (in Dollars) is about 70 to 100 pips.)

When you decide to close a position, the deposit sum that you originally made is returned to you and a calculation of your profits or losses is done. This profit or loss is then credited to your account.

Investment Strategies: Technical Analysis and Fundamental Analysis

The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium sized investors in financial markets use Technical Analysis. This technique stems from the assumption that all information about the market and a particular currency's future fluctuations is found in the price chain. That is to say, that all factors which have an effect on the price have already been considered by the market and are thus reflected in the price. Essentially then, what this type of investor does is base his/her investments upon three fundamental suppositions. These are: that the movement of the market considers all factors, that the movement of prices is purposeful and directly tied to these events, and that history repeats itself. Someone utilizing technical analysis looks at the highest and lowest prices of a currency, the prices of opening and closing, and the volume of transactions. This investor does not try to outsmart the market, or even predict major long term trends, but simply looks at what has happened to that currency in the recent past, and predicts that the small fluctuations will generally continue just as they have before.

A Fundamental Analysis is one which analyzes the current situations in the country of the currency, including such things as its economy, its political situation, and other related rumors. By the numbers, a country's economy depends on a number of quantifiable measurements such as its Central Bank's interest rate, the national unemployment level, tax policy and the rate of inflation. An investor can also anticipate that less quantifiable occurrences, such as political unrest or transition will also have an effect on the market. Before basing all predictions on the factors alone, however, it is important to remember that investors must also keep in mind the expectations and anticipations of market participants. For just as in any stock market, the value of a currency is also based in large part on perceptions of and anticipations about that currency, not solely on its reality.

Make Money with Currency Trading on FOREX

FOREX investing is one of the most potentially rewarding types of investments available. While certainly the risk is great, the ability to conduct marginal trading on FOREX means that potential profits are enormous relative to initial capital investments. Another benefit of FOREX is that its size prevents almost all attempts by others to influence the market for their own gain. So that when investing in foreign currency markets one can feel quite confident that the investment he or she is making has the same opportunity for profit as other investors throughout the world. While investing in FOREX short term requires a certain degree of diligence, investors who utilize a technical analysis can feel relatively confident that their own ability to read the daily fluctuations of the currency market are sufficiently adequate to give them the knowledge necessary to make informed investments.
 
Best Free Hit Counters
Backpackers Insurance
Backpackers Insurance