21.11.2012 Post in Events

InstaForex Company has summarized the results of the first InstaForex conference for existing and potential customers that took place on November 10, 2012 in Moscow. A registration for this large-scale event ended few weeks before its opening and gathered more than 300 people at Ritz-Carlton Moscow Hotel on Red Square. The event was attended by traders not only from Moscow but also from other cities of the country, which made the meeting one of the brightest Russian Forex events this year.

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During the conference day leading experts in the field of currency trading delivered their reports: Stanislav Zelenskiy, Nadezhda Zhyzhko, Sergei Belyaev, Gleb Kabanovs and Viktor Pershikov. Informative presentations on various aspects of technical analysis were met by the audience with great interest and led to a number of additional questions.

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The presentations were followed by a lively debate over hot topics raised by the speakers and did not stop during the complimentary coffee break organized by InstaForex Company.

Between the presentations the guests of the event took part in prize draws for bonus accounts and other gifts totaling $5000. In addition, the visitors got $50 on their deposit as a present from InstaForex Company.

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InstaForex First Conference in Moscow 2012 brought effective results and made it possible to actively discuss the problems of currency trading in Russia, to strengthen professional relationships and establish new partnerships. The event contributed to the professional development of the participants.
InstaForex Company thanks everyone for their interest and activity during the conference. We look forward to seeing you at the conference next year!

You can find a photo report here.

19.11.2012 Post in World Economy

Today the Eurozone debt crisis is the subject traders and economists have been discussing most. Month by month, forecasters paint an increasingly dark picture of a situation in the EU with a collapse of the union at worst. Greece, France and Italy with its banking crisis may be the first to leave the EU due to extremely high debt levels on the global loan market.

Spain was offered 100 billion euros as a bailout, which is equivalent to 15% of its GDP. However, despite the amount is impressive, it might be insufficient to solve the troubles of the country, even though the economic recession in Spain is far from its culmination. The situations in Spain and Ireland are identical. It should be said though that the size of Ireland’s economy is eight times as less, but it has asked for 65 billion euros.

Greece has been said to be likely to quit the Eurozone, but most experts are sure it will stay. Otherwise, the crisis will totally devour it as the national government will definitely fail to cope with it alone.

As for Spain, the country needs substantial funds to revive its economy, but Germany seems to be unwilling to give it a helping hand. What Angela Merkel proposes is uniting the banking systems, which in fact means creation of a supra-national supervisor with an aim to establish German order and discipline in the banking sector of the Eurozone.

Even though such a scenario is hardly possible to implement now, it would definitely help out the indebted countries and the Eurozone as a whole.

The Chinese Community Party already released the voting result of who will dictate the leadership of China in the next five years. The country’s vice president Xi Jinping was chosen to take the presidency after Hu Jintao steps down from the office this March according to Xinhua.

Aside from being the Vice President, Xi Jinping is also currently the top-ranked member of the Central Secretariat of the Communist Party of China, Vice-Chairman of the Central Military Commission, President of the Central Party School and the 6th ranked member of the CPC Politiburo Standing Committee. He was the son of the communist veteran Xi Zhongxun and had experienced his part of struggle during the cultural revolution. He is a man known to have a tough stance on corruption and a frank openness about political and market reform.

The selection, which takes place every 5 years, was just recently deliberated with a list composing of highly recognized Chinese officials. Also in the same report, the other candidates who belong to the list are North Korean-trained economist Zhan Dejiang, financial guru Wang Qishan, minister of the party’s organization department Li Yuanchao, Tianjin’s party boss Zhang Gaoli, and the conservative Liu Yunshan.

But it seems that only those in the government are celebrating the transition of power. In an another article, the locals, most especially the young and educated, are infuriated because not even a touch of democracy is present in the voting. Only those in power are given the chance to select and appoint the leader, robbing the people of their say to the faith of their government in the next five years.

The recently concluded US election, wherein President Barack Obama was given his second term, also salted the wound of the Chinese. Democracy was proudly displayed on the event, giving a fair ground to the American citizens to choose on who will going steer the wheel for the next couple of years. In the same article, the Chinese people are also weary from shouts of reforms coming from the former upcoming candidates thus deepening the disappointment.

The incoming President Xi Jinping has a lot of tough challenges ahead and his character will be really put to test. The most pressing concern will most probably the real reforms in the system that the Chinese people are deliberately seeking. But achieving it won’t be a walk in the park because unrooting the habits, serving as a blockade for its achievements, is a messy process. Relationship with relatives and friends may be lamented in the process before the problem will be finally rooted out.

Stephen Stevenson

07.11.2012 Post in World Economy

Bonds are securities issued by state agencies and organizations, local governments and corporations. In other words, issuers are various government institutions. In this article we are going to be exploring characteristics of bonds and what a trader should know about them.

To begin with, there are different types of bonds. They are classified according to their issuing bodies, the length of time before maturity and a variety of other factors and conditions of issuance.

Following that, almost all bonds entitle the bondholder only to receive revenue in the form of fixed interest rate, but carry no right to participate in the management of the company, as it happens in the case of purchasing shares.

Another important point is when a bond reaches maturity; a seller will pay its full face value to the investor who purchased it. The most important information, including nominal value, maturity period and coupon rate is shown on the front of each bond, so it would be impossible to change it.

And last but not least, the purchase of bonds available to anyone with Internet access. Through trading terminals you can find stock information on each issue.

As an investment tool, bonds are considered to be more secure as compared to bank deposits and stocks, because you can control your expenses and revenues. Also interest rates are lower compared with banks and other creditors. It is not necessary to wait for bond maturity; you can sell the security in the secondary market. In this case, the price will depend on the bond yield at the moment of sale and on interest rates. If current market interest rates are greater than the rates of recent bond issues, the coupon rate will be also higher; therefore, the bonds could be sold at a better price. However, when interest rates fall in the country, the market price of old bond issues will be reduced considerably.

As the two nominees still lay in deadlock on the on-going election, many are eagerly waiting for the results. According to the latest news, Obama is gaining advantage on winning the election but the key states results are yet to announced. Some polling states are still open and there may be some delays especially on the states where Sandy struck the most. For the meantime, I thinks better to contemplate on the “what ifs” of this election.

What if Romney wins?

An indeed a successful businessman, no one can doubt Mitt Romney’s capability as a businessman. He was donned with the business knowledge and skills from the prestigious Harvard University and has proven his worth in the corporate world through his Bain Capital.

But many are in doubt to whether he can put his business theories into reality. Moreover, certain individuals are also pessimistic in the application of his business theories into political arena. It seems that he has invested more effort in this campaign rather than in his experience on managing the state of Massachusetts, warding an impression of a less experienced political candidate than his competitor.

If in case he is elected, he have to deal with a congress, divided by difference in ideals unlike his business group, which may really give him a hard time. Also, being a less experience candidate may have its toll once he won the seat. Unlike Obama who already handled the rein in the past four years, Mitt Romney will start from the scratch in governing the most influential and most powerful country in the world. The health care programs of Obama will most probably terminated and the Bush cut tax for the wealthy may be made permanent according to some. He also must be prepared to face the issue about Iran’s nuclear material.

What if Obama wins?

Some of his supporters may have been waned off this past few years but most still have their faith on the first African-American president. Obama talks about the withdrawal of troops in Afghanistan and building educational program. But the plans may be hindered by the budget. After winning the election, the health care plans will probably push through and so are the pressing concern over Iran’s nuclear materials. Similar to Romney’s case. He has plenty of issues to handle if he would regain that White House seat of his.

Conclusion


In my opinion, I think its better if Obama wins. The experience and agenda are really two important factors to this election. But I hope that it won’t hurt much if the new kid in the block will be given the chance to steer the wheel.

Stephen Stevenson