admin answers:

(1) Daily turnover in ForEx markets is over $4 trillion. About 40% of that, or $1.6 trillion is in euro trades.

Http://en.wikipedia.org/wiki/Foreign_exchange_market

With a world annual GDP of about $61 trillion and so a daily GDP of about $0.16 trillion, the daily euro trade is about 10 times what is needed to actually buy the entire world GDP.

That means that at least 90% of the euro trades are for pure speculation – not for real hedging or use.

(3) If by “improve a nation’s balance of trade” you mean “increase exports and decrease imports”, the currency appreciation does not. But if you mean “bring exports and imports back into balance”, then when you have a trade surplus, it does improve the balance.

(2) If your currency is weaker, it means the other country’s products are more expensive.

admin answers:

No, I don’t trade news stories, nor do I trade with a leverage of more than 1:50

The reason is simple: Broker spreads increase dramatically when a news report comes out. So the chances of manipulation & ‘price spikes’ are much higher.

Besides, the market itself goes into a volatile whipsaw at news time. Your stops can be taken out, trends takes a U-turn, and more often than not, you’ll end up with unwanted losses.

Http://forex.ellsed.com

http://brokernightmare.ellsed.com