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Forex Currency Pairs
Forex Currency Pairs traded at
Windsor:
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AUDCAD |
CADCHF |
EURAUD |
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AUDCHF |
CADJPY |
EURCAD |
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AUDJPY |
CHFJPY |
EURCHF |
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AUDNZD |
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EURGBP |
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AUDUSD |
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EURJPY |
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EURUSD |
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GBPAUD |
NZDCAD |
USDCAD |
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GBPCAD |
NZDCHF |
USDCHF |
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GBPCHF |
NZDJPY |
USDJPY |
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GBPJPY |
NZDUSD |
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GBPNZD |
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GBPUSD |
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Forex, Fx
or Foreign Exchange Market, is a network of the largest
financial institutions in the world such as central
banks, commercial banks and other financial
institutions, corporations and private investors, where
foreign currency is bought and sold.
Daily Forex trading in traditional Forex exchange is the
largest and was estimated at US$
1.5 trillion in 1998.
The Forex market is a 24
hour global market that works continuously all week,
except Saturdays and Sundays.
The four largest Forex centers in the world are London,
New York, Tokyo and Singapore. Usually Forex trading is
brisk in North America mornings, i.e. afternoons in
Europe due to both markets being open at the same time
and due to new US economic data releases.
The Forex markets trade a very wide range of currencies
on a regular basis. However, the majority of Forex
transactions are made in five major currencies: the US
Dollar, the Euro, the British Pound, the Japanese Yen
and the Swiss Frank. The greatest number of Forex
currency trades is made against the US Dollar.
Spot Precious Metals
Spot Precious Metals traded at Windsor: Gold and Silver.
Nations around the world embraced gold and silver as a
store of wealth and a medium of international exchange.
Individuals have sought to possess precious metals as
insurance against the day-to-day uncertainties of paper
money. Gold, silver, platinum and palladium constitute
the majority of trading in precious metals.
Trading in precious metal futures market or spot market
in a speculative manner provides an important
alternative to traditional means of investing in
precious metals such as gold bullion, coins, and mining
stocks, and where substantial profits, as well as losses
can be made. Trading contracts in precious metals also
provide valuable trading tools for commercial producers
and the users of these metals.
Precious metals are traded on the futures and spot
markets in contracts (a contract of gold is 100oz while
a contract of silver is 5000oz). On the spot market,
precious metals are usually bought or sold based on a
value date of 48 hours which can be rolled over on a
daily basis thereafter. Trading on the futures market is
done by buying or selling precious metal for a specific
settlement date in the future. For example July Gold,
can be bought in March for July settlement.
Future (OTC) Indices
Future (OTC) Indices traded at
Windsor: Mini Nasdaq 100, Mini S&P 500 and Big Dow
Jones.
The principle of buying and selling for future delivery
has characterized the markets for over a century and a
half in physical commodities, mainly metals and staple
foodstuffs. It has also been the feature of the foreign
exchange markets, where prices can be agreed today for
foreign currencies and other financial instruments that
can be delivered in the future.
Futures Markets are markets in which participants can
fix the price they will pay or receive for bonds, shares
and currencies and other financial products, in the
future (effectively the parties thus "lock into" a known
exchange rate/price).
Trading is made by buying or selling futures contracts
which are standardized according to the quality,
quantity, delivery time and location for each
instrument. A futures contract is specified with the
month during which the delivery or settlement is to
occur i.e. if the product is gold and delivery is in
July then the price quoted is for July Gold.
There are three types of participants in futures
markets, the one that wants physical delivery, the
hedger who wishes to protect himself/herself against
adverse movements in prices and the speculative
investor.
The speculative investor has no intention of making or
taking delivery of the commodity but, rather, seeks to
profit from a change in the price. Investors buy a
product when they anticipate rising prices i.e. entering
long (and sell that product later, at the higher price),
or sell a product when they anticipate declining prices
i.e. entering short (and then buy that product later, at
the lower price).
If you speculate in futures contracts and the price
moves in the direction you anticipated, then you will be
making profit. Conversely, if prices move in the
opposite direction then losses are made. Speculators
therefore are individuals and corporations who seek to
profit from anticipated increases or decreases in
futures prices.
For those individuals who fully understand and can
afford the risks that are involved, the allocation of
some portion of their capital to futures trading can
provide
Future (OTC) Energies
Future (OTC) Energies traded at
Windsor are: Light Sweet Crude Oil, Mini Natural Gas.
Crude oil is the raw material that is refined into
gasoline, heating oil, jet fuel, propane,
petrochemicals, and other products. In today's complex
global markets, the price of crude oil is set by
movements on the three major international petroleum
exchanges the New York Mercantile Exchange, the
International Petroleum Exchange in London and the
Singapore International Monetary Exchange.
Prices of crude oil have always been volatile and are
greatly influenced by supply and demand. They behave
much as any other commodity with wide price swings in
times of shortage or oversupply and in times of
political instability. The crude oil price cycle may
extend over several years.
There are two types of crude oil, sour crude is
primarily the type of crude that comes from OPEC, as
opposed to West Texas Intermediate (WTI)
or sweet crude. The WTI
price is traded on the New York Mercantile Exchange (NYMEX).
Crude oil began futures trading on the
NYMEX in 1983 and is the
most heavily traded commodity. It trades in units of
1,000 US barrels i.e. 42,000 US gallons (1
contract), and the price is quoted in dollars and cents
per barrel. The minimum price fluctuation in the price
of crude oil is US$ 0.001per barrel (US$
10 per contract).
Crude oil Futures trading has always been of tremendous
interest to speculators who hope to profit from the ever
changing price of this commodity. |