On Zero Premium FX Options, better pricing accounts to you achieving a more competitive protection rate (or worse case rate) in addition to greater upside. In order to achieve the best pricing it’s important to create competition in the trade. Make sure you’re bank & broker is aware there is competition on the trade. It’s good practice to have a broker price up the same option structure too as a gauge on the pricing competitiveness. It is easy for your supplier to smudge the transparency if you are comparing different structures, make a choice from the variety of structures open to you and ask a number of provider to price this up to directly compare.

The history of Forex trading may well be traced to the abandonment of the Bretton Woods Agreement in 1971, and the US Dollar would no longer be convertible into gold. This led to currencies of foremost industrialised nation becoming more freely, controlled primarily by the forces of supply and demand, which acted in the Foreign Exchange Market. Prices were floated day after day, with volumes, speed and price volatility all increasing during the 1970’s, giving increase to new financial instruments, market deregulation and trade liberalisation. In the 1980s, cross-borders capital movements accelerated with the beginning of computers and technology, extending market continuum through Asian, European and American time zones. Turnover on foreign exchange rocketed from about $70 billion a day in the 1980s, to more than $3.5 trillion a day in 2008.

The opportunity to make money on Forex market was shaped since the Bretton Woods Agreement was abandoned in 1971, allowing for changes in prices of currencies as dictated by the forces of demand and supply. Making money in Forex is as plain as buying a currency and holding it for few minutes, hours, days, weeks or months depending on your kind of trading and selling it when it has appreciated in value or vice-versa. This unpretentious act can fetch you more than 100% of your capital in few minutes! But as simple as it sounds, it requires adherence to a golden rule which is our trading principle at forexseed.

The Golden rule of trading Forex successfully is taking place in the right direction, at the right price, with the right stop loss and the right target. Following this golden rule should, however, be with precision. The precision can only be achieved by formulating a profitable equation in which risk is minimised to the barest lowest. Whether or not money will be made in Forex is not the issue because the market is massive and highly liquid; the real issue is how to reduce the risk on your trade since the market is very volatile. You will succeed trading Forex only if you be grateful for this fact and inculcate it in your trading style.

Against the Euro and the Swiss Franc, Cable is rising for the first time in more than a week. GBP/CHF is holding above 1.7200 but the pair retreated from intra-day high at 1.7305. EUR/GBP is back below 0.8800. The pair fell and found support at 0.8775.

James Chen, Chief analyst at FX Solutions, comments: “After traversing up a dramatically steep parallel uptrend channel for the past week and a half, price action on EUR/GBP, a 4-hour chart of which is shown, has finally shown signs of a potential bullish exhaustion by making a tentative breakdown below the channel. This occurs after price hit a 12-week high of 0.8837 on Thursday. With continued bearishness on this breakdown, a clear initial support target to the downside resides around the 0.8700 price region.”