The Minority Report

If you are a frequent reader of The Minority Report…hahahahahahahaha…whew, that was funny.

Anyway, I’m trying to monetize my blog a bit.  I’ve mentioned before that I’ve been playing around with Internet marketing and SEO for a few years.  Obviously, I’m not sitting in my custom Escalade limo’s hot tub surrounded by hot blonds serving me champagne (or even a cheap white wine).

I’ve tried Adsense, Clickbank, Commission Junction and all the familiar players.  It’s a tough business.  In my travels, I’ve come across Forex trading multiple times as a “get quick rich”…scheme…uh…method.

I don’t know what Forex trading is and while my addictive, jump into any Alpaca farming, stripping copper from local schools, make money fast…method is out there, I just can’t pull the Forex trading trigger.

However, I’ve decided to add the “Two  Average Joes from South Africa” (fellows from here on out) over at the Trading Club as an affiliate link on the sidebar.  You’ll notice it’s the one with the snazzy “BANNED” in big red letters much like the one right below…in fact it’s the same one. I added two others and I’ll probably discuss them at a later date but for now, I selected the self proclaimed institutional Forex traders as an affiliate link for a few reasons.

1.) James de Wet and Chris Mathews are from South Africa^W.  South Africans have that cool accent like in Lethal Weapon 2.

2.) I liked their “honesty” (on a sales page…) about their fight with each other.

3.) I like the Traders Club’s 100% 8-week money back guarantee.  I’ve sold a few products here and there and while I know full well that Clickbank demands this of their product suppliers, Clickbank also doesn’t mess around.  Any reason, they refund %100.

4.) I’ve used the Traders Club before and have had good success with them and never had a single refund.  Like I said above, I don’t know forex trading, forex systems, forex trading systems, from a Fiveex trading system but I know that I like not having a product refund in my Clickbank transactions list.

5.) One of the fellows is standing next to a Beemer.  If he’s standing next to a BMW that is all the proof I need that he’s a forex trading genius.

Regardless, most people are going to past right by the link on the sidebar but if you are interested in Forex trading online, CIP’s, pips and all that other stuff, they seem like they are worth a shot.

Finally, if you do decide to click through and purchase the Trading Club membership, please come back here and let me know in the dofollow comments how they are and if they were worth both your time and my time promoting them.

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For those of us that don’t have a clue about forex, here is a brief glossery of terms related to the field.  Hopefully this is educational for all of us:

All or None – A limit price order that requires the entire order to be filled at the stated price or not at all.

Arbitrage - The simultaneous purchase and sale of an instrument in two different markets to profit from a temporary price disparity.

Base Currency – The currency against which other currencies are quoted. Example, the primary base currency is the u.s. dollar.

Basis - The spot price minus the futures price.

Best Effort – An order to be executed at the best available price. Discretion is given to the dealer as to when to execute the order.

Bid - The price for which a willing buyer will purchase the asset.

Broker - An individual who matches buy and sell orders in return for a commission. The bid and offer prices are those of the market participants and not of the broker, unlike market makers.

Cable - A market term used for the British Pound Sterling.

Covered Interest Rate Arbitrage – A transaction which consists of borrowing in currency A, in exchange for currency B, investing currency B and covering in the forward market. The transaction takes advantage of interest rate differentials.

Credit Line – The amount of foreign currency exposure a firm will allow a client to take.

Credit Risk – The idea that an outstanding currency position will not be repaid as agreed by the counterparty, either voluntarily or not. Also known as counterparty risk.

Cross Rates – Often referred to as the exchange rate between any two currencies not involving the u.s. dollar. In reality, however, all rates are technically cross rates.

Cost of Carry – The cost of borrowing money in order to maintain a position. It is based on the interest parity which determines the forward price.

Daylight Position Limit – Position limits on a currency or aggregate on a series of currencies that a trader can carry during regular trading hours.

Direct Dealing – An approach whereby dealers contact each other to transact without a broker.

Discount Forward Spread – The forward points that is subtracted from the spot to arrive at the forward price. This means that the foreign interest rate is lower than the u.s. rate for the period. Also known as swap points.

Exotic Currency – A currency with little liquidity and limited dealing, which is neither a major or minor currency.

Forward Outright – A foreign exchange deal with a maturity beyond the spot delivery date.

Forward Spread – Refers to the forward premium or discount that the forward price trades at. The forward price is calculated with the spot price, interest rate differential, and days to delivery.

Initial Margin – The margin paid initially to trade currency futures or margined otc forex. A traders loss may not exceed this margin per contract/lot.

Libor - London Interbank Offered Rate. This is the rate at which banks will lend to each other, set at 11:00 a.m. London time.

Major Currency – The euro, d-mark, swiss franc, british pound, and japanese yen.

Market Maker – One that consistently makes two way prices, providing both a bid and an offer. Unlike brokers, market makers trade their capital, although they will hedge.

Mark-to-Market – A system by which futures contracts and other markets are revalued using closing market prices to determine cash flow requirements for margin purposes.

Matching Systems – An electronic system that attempts to duplicate the brokers market. Bids and offers are available to any bank for execution. EBS is a matching system.

Minor Currency – The canadian dollar, the australian dollar, and the kiwi are minor currencies.

Negative Carry – A market position whereby the currency owned pays a lower rate of interest than that of the currency borrowed resulting in a negative cash flow.

Offer - The price for which a willing seller will sell the asset.

Overnight Position Limit – Position limits on a currency or aggregate on a series of currencies that a trader can carry during overnight trading hours. These limits are usually smaller than day light position limits.

Pip - The term used in the otc currency markets to denote the smallest incremental move an exchange rate can make.

Positive Carry – A market position whereby the currency owned pays a higher rate of interest than that of the currency borrowed, resulting in a positive cash flow.

Premium Forward Spread – The forward points that is added to the spot price to determine a forward price. A forward premium means that the foreign interest rate is higher than the u.s. rate for the period.

Purchasing Power Parity – This states that the price for a good in one nation should be equal to the price of the same good in any other nation, all things being equal, exchanged at the current rate.

Quotation American Terms – A quotation that reflects the number of usd units per foreign currency.

Quotation European Terms – A quotation that reflects the number of foreign currency units per us dollars.

Rollover - A transaction designed for spot deals whereby the delivery is extended and “exchanged” from the old spot delivery date to the current spot delivery date. Swap points are either subtracted or added reflecting either a positive cost of carry of negative.

Spot Deal – An fx deal whereby a party will deliver a certain currency against receiving a certain amount of another currency based on an agreed rate from another party, within 2 business days, 1 day for the cad which is the exception.

Spot Next - An fx deal which matures one business day past the spot date, thus, 3 business days to maturity.

Swap Deal – An fx deal which consists of a simultaneous purchase and sale for different maturity dates with the same counterparty.

Tom Next – Tommorrow next, is an fx deal which matures one day prior to a regular spot deal, thus maturity is the next business day.

Two-Way Price – A quotation with both the bid and offer price.

Variation Margin – The margin necessary to fully cover any losses by a trader. Variation margin is required to bring the account back up to the initial margin requirements.
Courtesy of the Forex Currency Trading Glossary

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