Forex market parts: the analysis and the traders

To define and analyze the market trends, you should understand the exchange rate of the corresponding currency. The fundamental and technical analysis has been developed to evaluate these fluctuations. The fundamental analysis is based on the analysis of the economic indicators of the market, how any event or news affects the exchange rates, the technical relies on the graphics and the mathematical methods used to determine the historical evolution of the exchange rates.41

Another option is the traders that combine the best elements of both types of analysis. Many observers define as the future of the analysis, although few people can evaluate both of the sides of the market. It is very difficult to analyze the numerous indicators and understand the impact of the economic news from around the world.

The fundamental analysis

It is generally used for the long term investors. This analysis considers the macroeconomic fundamentals of the various areas, such as the gross domestic product, inflation, industrial production index, the bank rate and the rate of the unemployment and focuses on making the forecasts for the relative evolution of the indicators.

The economic news calendar is the primary instrument of this type of analysis, which contains the details and the dates of the economic news of the countries whose currencies participate in the Forex market. The schedule sets out the records and forecast value of each index. The special attention to the expected values and its possible variations is provided. Most of the currency pairs depend in one way or another of the United States of America dollar. To define the trend of the dollar it can help in forecasting the trends of most of the currency pairs, so the American economic indicators and the indexes can significantly influence the market.

Technical analysis

It is the method used by the speculators mostly of short and medium term that they use to try to predict the frequent movements and the daily fluctuations that the present currency pair that is in the market. This analysis is to plot the price of a currency pair, the formations, a set of the trend lines and the technical indicators, which can help predict the immediate price of the movements.

42The main tools of the technical analysis are the indicators. The indicator is a result of the mathematical calculations. Naturally it is calculated using the formula consisting of the price values, the volumes or the results of other indicators. The indicators are subdivided into the trend indicators and the oscillators. Each type of the indicators is used to analyze the specific markets (the trend indicators apply to the active markets while the oscillators are applied to the passive markets). The graphical analysis is a component of the technical analysis and is based on a graphic representation of the price movement showing the current situation in the market and helps determine the course to be followed in the negotiations.

Brokers and traders

The brokers are acting as an intermediary operators in an operation for others in exchange for a commission, whether an agent, a broker, broker, etc. In any case are the financial intermediaries and the Agency Securities and the Exchange , is an intermediary that can operate only for others, but in other countries the brokers may be individuals.

The traders are persons acting in a market buying and selling the assets on their own, usually in a short term and are the participants in a market that buys and sells the assets on their own, usually in a short term and with the expectation of the quick profits.

NFA

The National Futures Association (NFA) is a self regulatory organization and a organization of surveillance products and industry of the future in the United States of America. The National Futures Association (NFA) it monitors and protects the investors from the fraudulent products and the activities in the futures market. The National Futures Association (NFA) it also offers the mediation and the arbitration to resolve the complaints from the investors. The National Futures Association (NFA) is headquartered in Chicago, Illinois; it also maintains an office in New York.

The National Futures Association (NFA)  was created in the year 1982 by the Commodity Futures Trading Commission (CFTC) under the Securities Market Act (Commodity Exchange Act.). This legislation contains a provision that gave the industry the future the right to create a self regulatory organization based on the norms issued by the Commodity Futures Trading Commission (CFTC).

43In 1998 the National Futures Association (NFA) gave online public access to information on the state of the affiliated companies (Basic Background Affiliation Status Information Center), which provides information on institutions registered with the Commodity Futures Trading Commission (CFTC). These institutions are companies and individuals engaged in the investment business and retail the trade of the futures customers. Below is a list of brokers that are currently registered with the National Futures Association (NFA) in the United States of America linked to the associated capital of each organization is presented.

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