pThe key to the a href=http://theforexrobotnews.com target=_blankFOREX market/a for the average investor is the margin. Without margin trading currency trading would be beyond most investors. I will explain what the margin is and how it works./p
pWhen you have a margin account you are able to control large amounts of currency with a relatively small cash deposit. When you have a margin account with a broker you are in effect borrowing money from the broker to control a larger lot of currency. Currency is normally sold in lots with a value of $100,000. A common term used when discussing margin accounts is leverage. Leverage is how much you can control with a certain amount of money. The leverage is usually displayed as a ration such as 1:100. That would allow you to control currency worth 100 times the amount of money you have invested.br /br /To better explain this in a FOREX exchange with a 1% margin account you could control $100,000 worth of a currency while only investing $1000. Margin accounts can allow you to greatly increase your profit; they also allow you to increase your risk. With a margin account it is possible for a trader to lose more than their initial investment. With a little prudence though losses can be minimized. Most brokers will terminate a trade before the losses exceed the original deposit.br /br /Benefitsbr /As discussed before a margin account allows you to buy more with the money you have which can greatly increase your profit on successful trades. By controlling a $100,000 worth of currency for only $1000 the potential gain is greater. When dealing with large lots of currency even small changes can produce significant results.br /br /Currency on the FOREX market is traded in far more precise units than actual cash is. As an example the American dollar is traded down to four decimal points. So when you were to quote the dollar against another currency you will see a price like $1.7834 instead of $1.78. A PIP is the smallest unit when trading currencies, when dealing with $100,000 lots then each pip is worth about $10. br /If the price of the American dollar changes from $1.7834 to $1.7934, you have a net difference of 100 pips. If you have a lot of $100,000 then that 100 pips will translate to $1000 where as if you were not using the margin your original $1000 would only show a profit of $10. Hardly what most would consider a highly profitable trade?nbsp; In short the primary benefit of using a margin account is that it can greatly increase the profit margin of a trade.br /br /Risksbr /Since there is such a significant increase in profit potential when using a margin account it only stands to reason that there is also an increase. In fact it is quite possible to have your entire margin account wiped out fairly quickly. When using a 1% margin account a shift in the currency of a single penny will cost you $1000. br /br /The a href=http://theforexrobotnews.com target=_blankFOREX exchange/a has many safety features to help you reduce the risk of this happening. One example is a stop loss order. A stop loss order will automatically close out your position in a currency if the price crosses the point you have set. This allows you to limit your losses while still having the opportunity to realize a profit. br /br /Another risk that many people overlook is that if the price nears the point where your losses are close to being equal to the value of your margin account your broker may close out your position. If you were trying to rid out a temporary downturn that you expect to turn around soon you could find that your broker has closed it causing you to lose your entire balance and have no option to make a profit if the price moves up again.br /br /This is a basic introduction to margin accounts and how they work, visit the website listed below to learn more about the a href=http://theforexrobotnews.com target=_blankFOREX market/a.br /br //p

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pstrongWHAT IS SENSEX AND NIFTY/strongbr /br /In recent months, the Sensex has created headline after headline as it has marched seemingly unstoppable from 15,000 to 16,000 to 19,000 and, for a brief moment, 20,000.br /Even people who donrsquo;t follow put in markets closely may have a pretty good idea of the Sensex valuate. But what just is the Sensex? And what can indices like the Sensex and Nifty tell you just about stock market movements?br /br /strongWhat is a stock-market index?/strongbr /br /emstrongA stock-market index is simply a convenient compendious of market costs. There are thousands of stocks whose prices fluctuate up and down every day./strong/embr /br /An index helps make sense of this chaos and gives you a single number which tells you how well the market is performing compared with earlier periods. The basic idea is to select a small number of stocks which are considered representative and important and calculate the index founded on the prices of those stocks.br /br /These are the two most popular indices for Indian stock markets and are produced by the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) respectively.br /br /The Sensex which was first calculated in 1986 is based on the nbsp; a href=http://supernsetips.com target=_blanknbsp; share market tipsnbsp;/a nbsp; capitalisation (share price times the number of shares outstanding) of 30 important stocks. The de facto stocks have changed over the years on with the Indian economy but in ecumenical the Sensex represents the stock prices of the greatest and most important companies from a variety of sectors. It is updated every 15 seconds during trading hours.br /br /strongThe Samp;P CNX Nifty is quite similar exclude that it is based on 50 large stocks, many of which are also represented in the Sensex./strongbr /br /strongAre there any other indices?/strongbr /br /Yes, it is important to earn that the Sensex and the Nifty are just the most popular of many another(a) indices. Both the BSE and the NSE produce several other indices which cover smaller firms and soul sectors.For example the Samp;P CNX 500 is a broad-based index which covers 500 firms and therefore gives a broader take to of the nbsp;nbsp;a href=http://www.supernsetips.com/Best-Options-tips-basic-Intraday-positional.html target=_blank Nifty opyions tip nbsp;/anbsp; as a whole than narrower measures like the Nifty./p
pnbsp;/p
pnbsp;/p
pThe BSE-500 is another broad index produced by the BSE. These two indices cover more than 90 per cent of the market capitalisation of all the firms in their respective stock exchanges.br /Both exchanges also produce sector-specific indices. For example you have the BSE Auto Index, BSE IT Index, CNX Pharma Index,/p
pnbsp;/p
pCNX Bank Index and so on. Both exchanges also have indices which try on mid-cap and small-cap firms: BSE Mid-Cap, BSE Small-Cap, CNX Midcap etc/p
pnbsp;/p
pstrongWhat are the uses of an index?/strong/p
pnbsp;/p
pIn increment to their general role as a summary of market conditions, indices are of great use to thenbsp; a href=http://www.supernsetips.com/Best-Nifty-Future-intraday-positional-tips-NSE.html target=_blanknifty future tipsnbsp;/a financial sector. They are used to benchmark mutual fund writ of execution; ie to see how a particular fund is performing relative to the broader market.br /They are used in creating new financial products known as index derivatives (financial products whose value is deliberate from the level of a particular index).br /Also they are used by index funds which invest passively in the stocks of a particular index instead of trading actively./p
pnbsp;/p
pstrongLook beyond the markets and invest/strongbr /br //p
pnbsp;/p
pemstrongThe bottom line is that the Sensex and Nifty are good set off points but investors need to look beyond them when it comes to understanding market movements./strong/embr /For example itrsquo;s possible that when the Sensex is booming, mid-cap firms may be lagging give the axe.Or the booming Sensex may be driven by just one particular sector like capital goods while IT may be doing quite poorly. To get a full picture of whatrsquo;s happening, you need to look at a combining of indices.br /br //p

Alot of stocks with in the financial sector have broken higher in recent weeks. Nab ha remained in a trading range of $20.00 to $22.00 since the beginning of March.

A stock cannot stay in a trading range permanently. Usually the longer the stock stays in the trading range the stronger the breakout. NAB has not only been in consolidation but squeezing in tighter in the last few weeks. With all this pressure, the breakout is likely to be strong.

After buyers managed to break out of the 18 month down trend, a higher peak (bullish) was formed as NAB went into consolidation. The strong break out and consolidation pennant are a flag pattern that has a bullish projection target of $30.00, however there is a significant resistance line at $25.00.

Should NAB break up from the consolidation at conservative target of $25.00 could be reached.

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HVN (Harvey Norman) is looking stronger in the weekly chart, with indications the Bulls are back in control.

After breaking free of the down trend channel that has been valid for 12 months, not only was the first Higher Peak (HP) formed but this week’s closing bar was a confirmation of a Higher Trough (HT). This HT was supported by the previous down trend channel, a significant Moving Average (MAV) and a weekly support line.

The daily chart supports what has been discussed above on the weekly chart. In addition the two commonly used MAV’s have now crossed Bullish and the HT has been formed above them both. It is now likely a retest of $2.95 may happen. If this level continues to support the stock, this will be a second HT and a retest of $3.45 is likely.

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ANZ this week has shown confirmation that the buyers have taken control after  18months of the bears dominating.

For 18 months ANZ has been in a strong down trend channel. In March this channel was breached and ANZ ran to the next resistance at $17.50. From there the stock retraced 50% to the support level at $15.00. This support is now being validated by the bounce.

ANZ has now made the first set of Higher Peak (HP) and Higher Trough(HT) above the down trend. This is confirmation Buyers have taken control. It is likely $17.50 will be retested. If breached $19.50 is the following resistance that could be tested.

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