Comments for Series 34 Exam http://www.series34exam.com Sun, 05 Feb 2012 03:06:17 +0000 http://wordpress.org/?v=2.7.1 hourly 1 Comment on Jurisdictional & Regulatory Framework by M.A. http://www.series34exam.com/jurisdictional-regulatory-framework/comment-page-1/#comment-4071 M.A. Wed, 09 Feb 2011 01:13:51 +0000 http://www.series34exam.com/?p=531#comment-4071 Basically, any entity (FCM, RFED, CTA,..) that is based and operates in the US will be required to register with the CFTC and NFA. Therefore, the CFTC's jurisdictions are within any US-regulated firm, no matter where it operates. I'm not sure if an overseas (across the US) firm that services US citizens must be regulated by the CFTC and NFA; maybe not. Basically, any entity (FCM, RFED, CTA,..) that is based and operates in the US will be required to register with the CFTC and NFA. Therefore, the CFTC’s jurisdictions are within any US-regulated firm, no matter where it operates. I’m not sure if an overseas (across the US) firm that services US citizens must be regulated by the CFTC and NFA; maybe not.

]]> Comment on Registration Requirements by M.A. http://www.series34exam.com/registration-requirements/comment-page-1/#comment-4070 M.A. Wed, 09 Feb 2011 00:43:36 +0000 http://www.series34exam.com/?p=228#comment-4070 Don't forget FCMs & their $20 Million! Don’t forget FCMs & their $20 Million!

]]> Comment on Disclosures to Customers by M.A. http://www.series34exam.com/disclosures-to-customers/comment-page-1/#comment-4069 M.A. Wed, 09 Feb 2011 00:31:52 +0000 http://www.series34exam.com/?p=219#comment-4069 Registered FCMs, RFEDs must disclose information regarding the risk associated with forex trading. And also, I believe, the firms' operation, regulation IDs, fees (if any) and so on. Registered FCMs, RFEDs must disclose information regarding the risk associated with forex trading. And also, I believe, the firms’ operation, regulation IDs, fees (if any) and so on.

]]> Comment on Settlement Risk/Herstaat Risk by M.A. http://www.series34exam.com/settlement-risk/comment-page-1/#comment-4068 M.A. Wed, 09 Feb 2011 00:13:34 +0000 http://www.series34exam.com/?p=208#comment-4068 *Herstatt* Risk I know; the NFA misspelled it too. *Herstatt* Risk
I know; the NFA misspelled it too.

]]> Comment on Country Risk/Sovereign Risk by MA http://www.series34exam.com/country-risk/comment-page-1/#comment-4067 MA Tue, 08 Feb 2011 23:54:43 +0000 http://www.series34exam.com/?p=159#comment-4067 Example- A U.S. businessman who conducts business in Europe decides to purchase an historic office building for his business and renovate it, but he finds out after he purchases it that it will cost him five times as much money to complete the renovation project as estimated because of the historic significance his building holds in the community and the onerous building requirements imposed by the local property-guardian bureaucracy. In short, he doesn't have enough Euros to complete the renovations to the specifications required by the local government. He must exchange more dollars than he had anticipated. This is an example of: Country risk These historic property protection laws are different from country to country. Some countries have them, some don't. Some are more onerous than others. As an American, it is very likely that he was unaware of such a law (and how arbitrarily they can be applied from one area to another). Example-
A U.S. businessman who conducts business in Europe decides to purchase an historic office building for his business and renovate it, but he finds out after he purchases it that it will cost him five times as much money to complete the renovation project as estimated because of the historic significance his building holds in the community and the onerous building requirements imposed by the local property-guardian bureaucracy. In short, he doesn’t have enough Euros to complete the renovations to the specifications required by the local government. He must exchange more dollars than he had anticipated. This is an example of: Country risk

These historic property protection laws are different from country to country. Some countries have them, some don’t. Some are more onerous than others. As an American, it is very likely that he was unaware of such a law (and how arbitrarily they can be applied from one area to another).

]]> Comment on American Terms/European Terms by jim http://www.series34exam.com/american-terms-eurpoean-terms/comment-page-1/#comment-3927 jim Mon, 24 Jan 2011 20:24:40 +0000 http://www.series34exam.com/?p=23#comment-3927 Example: In daily life, most prices are quoted "directly". For many years, all dollar exchange rates also were quoted directly. That meant dollar exchange rates were quoted in European terms in Europe, and in American terms in the United States. However, in 1978, as the foreign exchange market was integrating into a single global market, for convenience, the practice in the U.S. market was changed�at the initiative of the brokers community�to conform to the European convention. Thus, OTC markets in all countries now quote dollars in European terms against nearly all other currencies (amounts of foreign currency per $1). That means that the dollar is nearly always the base currency,one unit of which (one dollar) is being bought or sold for a variable amount of a foreign currency. Example:

In daily life, most prices are quoted “directly”. For many years, all dollar exchange rates also were quoted directly. That meant dollar exchange rates were quoted in European terms in Europe, and in American terms in the United States. However, in 1978, as the foreign exchange market was integrating into a single global market, for convenience, the practice in the U.S. market was changed�at the initiative of the brokers community�to conform to the European convention. Thus, OTC markets in all countries now quote dollars in European terms against nearly all other currencies (amounts of foreign currency per $1). That means that the dollar is nearly always the base currency,one unit of which (one dollar) is being bought or sold for a variable amount of a foreign currency.

]]> Comment on American Terms/European Terms by jim http://www.series34exam.com/american-terms-eurpoean-terms/comment-page-1/#comment-3926 jim Mon, 24 Jan 2011 20:23:03 +0000 http://www.series34exam.com/?p=23#comment-3926 The phrase "American terms" means a direct quote from the point of view of someone located in the United States. For the dollar, that means that the rate is quoted in variable amounts of U.S. dollars and cents per one unit of foreign currency (e.g., $0.5774 per DEM1). The phrase "European terms" means a direct quote from the point of view of someone located in Europe. For the dollar, that means variable amounts of foreign currency per one U.S. dollar (or DEM 1.7320 per $1). The phrase “American terms” means a direct quote from the point of view of someone located in the United States. For the dollar, that means that the rate is quoted in variable amounts of U.S. dollars and cents per one unit of foreign currency (e.g., $0.5774 per DEM1). The phrase “European terms” means a direct quote from the point of view of someone located in Europe. For the dollar, that means variable amounts of foreign currency per one U.S. dollar (or DEM 1.7320 per $1).

]]> Comment on Forex PIPs by Big Piping http://www.series34exam.com/forex-pip/comment-page-1/#comment-3840 Big Piping Fri, 14 Jan 2011 16:24:13 +0000 http://www.series34exam.com/?p=78#comment-3840 PIP stands for Percentage In Point and is the smallest price change that a given exchange rate can make if the pair is priced to four decimal places, this is the equivalent of 1/100 of one percent, or one basis point, if priced to five decimal places the smallest price move is known as a fractional PIP. Pips are always valued in CCY2 so when USD is CCY2 no conversion is required. When USD is CCY2 AKA “Quote Currency”, “Secondary Currency”, “Terms Currency”, “Variable Currency”, or “Counter Currency” use either one of these formulas to calculate the value of a Pip: Pip Value = Traded Amount x 0.0001, or Pip Value = Traded Amount / 10,000 When USD is CCY1 AKA “Base Currency”, “Transaction Currency”, or “Traded Currency” use one of these formulas to calculate the value of a Pip: Pip Value = (Traded Amount x 0.0001) / Rate, or Pip Value = (Traded Amount / 10,000) / Rate, or Pip Value = Traded Amount / (10,000 x Rate) Vbala is correct however incomplete as the post is missing the calculation for the Variable Pip value. Posts 1,3,and 4 contain both, correct and incorrect statements or formulas. PIP stands for Percentage In Point and is the smallest price change that a given exchange rate can make if the pair is priced to four decimal places, this is the equivalent of 1/100 of one percent, or one basis point, if priced to five decimal places the smallest price move is known as a fractional PIP.

Pips are always valued in CCY2 so when USD is CCY2 no conversion is required.

When USD is CCY2 AKA “Quote Currency”, “Secondary Currency”, “Terms Currency”, “Variable Currency”, or “Counter Currency” use either one of these formulas to calculate the value of a Pip:
Pip Value = Traded Amount x 0.0001, or
Pip Value = Traded Amount / 10,000

When USD is CCY1 AKA “Base Currency”, “Transaction Currency”, or “Traded Currency” use one of these formulas to calculate the value of a Pip:
Pip Value = (Traded Amount x 0.0001) / Rate, or
Pip Value = (Traded Amount / 10,000) / Rate, or
Pip Value = Traded Amount / (10,000 x Rate)

Vbala is correct however incomplete as the post is missing the calculation for the Variable Pip value.

Posts 1,3,and 4 contain both, correct and incorrect statements or formulas.

]]> Comment on Return on Collateral/Security Deposit/Margin by Big Piping http://www.series34exam.com/return-on-collateral/comment-page-1/#comment-3804 Big Piping Mon, 10 Jan 2011 22:10:21 +0000 http://www.series34exam.com/?p=151#comment-3804 You may want to change this as NFA has changed its rules regarding Margin Requirements as of 10-18-2010; The NFA Required Margin/Security Deposit on Majors is 2% of the notionally traded amount. A Major currency pair as described by the NFA must be comprised of 2 currencies both of which must be from the following list: AUD, CAD, CHF, DKK, EUR, GBP, JPY, NOK, NZD, SEK, and USD. Examples: USD/NOK, EUR/SEK. All other currency pairs have a required margin of 5% of the notionally traded amount. Examples: USD/MXN, EUR/HUF Notional Amount needs to be in USD terms. If USD is base currency Notional Amount = amount traded If USD is Quote Cuurency Notional Amount = Amount Traded x Rate Updated example: The Trader buys 100,000 GBP/USD at 1.9505 (using 2% as the Required Margin). (Traded Amount X Rate) = Notional Amount, Notional Amount X Margin Percent = Margin Used, or (100,000 X 1.9505) = 195,050 X 2% = $3,901.00 The Trader calculates a potential profit and places a limit order of 1.9620 (Potential profit of US$1,150.00) The Trader calculates a potential loss and places a stop at 1.9475 (Potential loss of US$300) Within the next hour the GBP/USD rallies to 1.9592, stalls and begins to reverse. The Trader decides the limit will not be reached, so he closes his position by selling the GBP/USD at 1.9558 and locks in a profit of US$530.00 (Notional Amount X Margin %) = Margin Used, (Profit / Margin Used) = Return on Collateral. $530 / $3,901.00 = 13.59% You may want to change this as NFA has changed its rules regarding Margin Requirements as of 10-18-2010;

The NFA Required Margin/Security Deposit on Majors is 2% of the notionally traded amount.

A Major currency pair as described by the NFA must be comprised of 2 currencies both of which must be from the following list: AUD, CAD, CHF, DKK, EUR, GBP, JPY, NOK, NZD, SEK, and USD.
Examples: USD/NOK, EUR/SEK.

All other currency pairs have a required margin of 5% of the notionally traded amount.
Examples: USD/MXN, EUR/HUF

Notional Amount needs to be in USD terms.
If USD is base currency
Notional Amount = amount traded

If USD is Quote Cuurency
Notional Amount = Amount Traded x Rate

Updated example:
The Trader buys 100,000 GBP/USD at 1.9505 (using 2% as the Required Margin).
(Traded Amount X Rate) = Notional Amount, Notional Amount X Margin Percent = Margin Used, or
(100,000 X 1.9505) = 195,050 X 2% = $3,901.00

The Trader calculates a potential profit and places a limit order of 1.9620 (Potential profit of US$1,150.00)
The Trader calculates a potential loss and places a stop at 1.9475 (Potential loss of US$300)
Within the next hour the GBP/USD rallies to 1.9592, stalls and begins to reverse.
The Trader decides the limit will not be reached, so he closes his position by selling the GBP/USD at 1.9558 and locks in a profit of US$530.00

(Notional Amount X Margin %) = Margin Used, (Profit / Margin Used) = Return on Collateral.
$530 / $3,901.00 = 13.59%

]]> Comment on Pip Values & Price After Pips by Big Piping http://www.series34exam.com/pip-values-and-price-after-pips/comment-page-1/#comment-3802 Big Piping Mon, 10 Jan 2011 19:22:44 +0000 http://www.series34exam.com/?p=147#comment-3802 Pips are always valued in terms of CCY2 (USD/CHF pips are valued in CHF "Swiss Franc" terms, and EUR/USD pips are valued in USD "Dollar" terms). You are solving for the USD value of a pip per the amount traded. when USD is CCY1 you need to make a conversion (1 / given rate = USD Terms), and when USD is CCY2 the pips are already in USD Terms. Amount traded = 100,000. When USD is CCY1 (with conversion): USD/JPY at an exchange rate of 119.80 (.01 / 119.80) x $100,000 = $8.34 per pip USD/CHF at an exchange rate of 1.4555 (.0001 / 1.4555) x $100,000 = $6.87 per pip When USD is CCY2: EUR/USD at an exchange rate of 1.1930 .0001 X 100,000 = $10 per pip A short cut: If you know the value of a pip when USD is CCY2 (EUR/USD, GBP/USD)traded amounts are always valued at: Description .......... Trade amount ........ Value .......... "Mini Lot" ........... 10,000 .............. $1 ............. "Standard Lot" ....... 100,000 ............. $10 ............ "Million" ............ 1,000,000 ........... $100 ........... "Yard" ............... 1,000,000,000 ....... $1,000 ......... When USD is CCY1: Value / rate = Pip value 100,000 USD/CHF at 1.4555 $10 / 1.4555 = $6.87 When with JPY or HUF multiply by 100 or move decimal 2 places to the left. 100,000 USD/JPY at 119.80 $10 / 1.198 = $8.34 -------------------------------------------------------------------------- The ordering of a currency pair for FX trading is standard. It is a ranked list and to form a valid currency pair the higher ranked currency is placed first (hence it is USD/JPY and not JPY/USD) ................................... EUR/USD .................................. CCY1/CCY2 CCY1 AKA "Base Currency", "Transaction Currency", or "Traded Currency". CCY2 AKA "Quote Currency", "Secondary Currency", "Terms Currency”, “Variable Currency”, or “Counter Currency”. Pips are always valued in terms of CCY2 (USD/CHF pips are valued in CHF “Swiss Franc” terms, and EUR/USD pips are valued in USD “Dollar” terms).

You are solving for the USD value of a pip per the amount traded. when USD is CCY1 you need to make a conversion (1 / given rate = USD Terms), and when USD is CCY2 the pips are already in USD Terms.

Amount traded = 100,000.
When USD is CCY1 (with conversion):
USD/JPY at an exchange rate of 119.80
(.01 / 119.80) x $100,000 = $8.34 per pip
USD/CHF at an exchange rate of 1.4555
(.0001 / 1.4555) x $100,000 = $6.87 per pip

When USD is CCY2:
EUR/USD at an exchange rate of 1.1930
.0001 X 100,000 = $10 per pip

A short cut:

If you know the value of a pip when USD is CCY2 (EUR/USD, GBP/USD)traded amounts are always valued at:

Description ………. Trade amount …….. Value ……….
“Mini Lot” ……….. 10,000 ………….. $1 ………….
“Standard Lot” ……. 100,000 …………. $10 …………
“Million” ………… 1,000,000 ……….. $100 ………..
“Yard” …………… 1,000,000,000 ……. $1,000 ………

When USD is CCY1: Value / rate = Pip value
100,000 USD/CHF at 1.4555
$10 / 1.4555 = $6.87

When with JPY or HUF multiply by 100 or move decimal 2 places to the left.
100,000 USD/JPY at 119.80
$10 / 1.198 = $8.34
————————————————————————–

The ordering of a currency pair for FX trading is standard. It is a ranked list and to form a valid currency pair the higher ranked currency is placed first (hence it is USD/JPY and not JPY/USD)
…………………………….. EUR/USD
……………………………. CCY1/CCY2

CCY1 AKA “Base Currency”, “Transaction Currency”, or “Traded Currency”.

CCY2 AKA “Quote Currency”, “Secondary Currency”, “Terms Currency”, “Variable Currency”, or “Counter Currency”.

]]> Comment on Effects of Leverage Calculations by Big Piping http://www.series34exam.com/effects-of-leverage-calculations/comment-page-1/#comment-3769 Big Piping Wed, 05 Jan 2011 22:32:38 +0000 http://www.series34exam.com/?p=139#comment-3769 You may want to change this as NFA has changed its rules regarding maximum leverage as of 10-18-2010; The NFA allowed max leverage on Majors is 50:1 or 2% margin. A Major currency pair as described by the NFA must be comprised of 2 currencies from the following list: AUD, CAD, CHF, DKK, EUR, GBP, JPY, NOK, NZD, SEK, and USD. Examples: USD/NOK, EUR/SEK. All other currency pairs are subject to leverage at 20:1 or a 5% margin. Examples: USD/MXN, EUR/HUF You may want to change this as NFA has changed its rules regarding maximum leverage as of 10-18-2010;

The NFA allowed max leverage on Majors is 50:1 or 2% margin.
A Major currency pair as described by the NFA must be comprised of 2 currencies from the following list: AUD, CAD, CHF, DKK, EUR, GBP, JPY, NOK, NZD, SEK, and USD.
Examples: USD/NOK, EUR/SEK.

All other currency pairs are subject to leverage at 20:1 or a 5% margin.
Examples: USD/MXN, EUR/HUF

]]> Comment on Profit and Loss Calculations by Big Piping http://www.series34exam.com/profit-and-loss-calculations/comment-page-1/#comment-3768 Big Piping Wed, 05 Jan 2011 22:10:36 +0000 http://www.series34exam.com/?p=145#comment-3768 Hi Jantz, The way that I read your question is that the transaction amount is 250,000 EUR and they are asking you to determine the P&L? First you must calculate the exchange rate for the closing transaction. The exchange rate conversion is 1 / Rate given, (1 /.82 = 1.21951) Sell Rate - Buy Rate = profit in pips, x Units Traded = P&L 1.21951-1.2926= (-0.07309 pips), x250,000= (-$18,272 loss) ------------------------------------------------------------------------------------------------------- *******Note the initial example of profit and loss from above is inverted******* It should read as follows: IF USD IS: Base Currency,(AKA Transaction Currency, Traded Currency, OR CCY1) Profit = Price Change in Pips x Units Traded / Exit Price IF USD IS: Secondary Currency, (AKA Quote Currency, Terms Currency”, “Variable Currency”, “Counter Currency” or "CCY2 Profit = Price Change in Pips x Units Traded Hi Jantz, The way that I read your question is that the transaction amount is 250,000 EUR and they are asking you to determine the P&L?

First you must calculate the exchange rate for the closing transaction.

The exchange rate conversion is 1 / Rate given, (1 /.82 = 1.21951)

Sell Rate - Buy Rate = profit in pips, x Units Traded = P&L

1.21951-1.2926= (-0.07309 pips), x250,000= (-$18,272 loss)
——————————————————————————————————-
*******Note the initial example of profit and loss from above is inverted*******

It should read as follows:

IF USD IS: Base Currency,(AKA Transaction Currency, Traded Currency, OR CCY1)
Profit = Price Change in Pips x Units Traded / Exit Price

IF USD IS: Secondary Currency, (AKA Quote Currency, Terms Currency”, “Variable Currency”, “Counter Currency” or “CCY2
Profit = Price Change in Pips x Units Traded

]]> Comment on Cross Rate Transactions by Big Piping http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3761 Big Piping Tue, 04 Jan 2011 23:25:57 +0000 http://www.series34exam.com/?p=136#comment-3761 the formatting did not turn out in my earlier post as it should have 2 columns under ENTRY EXIT, and four columns under Balance Sheet. the formatting did not turn out in my earlier post as it should have 2 columns under ENTRY EXIT, and four columns under Balance Sheet.

]]> Comment on Cross Rate Transactions by Big Piping http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3760 Big Piping Tue, 04 Jan 2011 23:18:46 +0000 http://www.series34exam.com/?p=136#comment-3760 When you execute a spot forex transaction you are long/positive (+) one currency, and short/ Negative (-) the other. It may be helpful for you to think of this in terms of a balance sheet instead of a position in the market I will use the EUR/USD/PLN cross rate transaction/triangle example from above (3. Jantz Hoffman): ENTRY EXIT EUR/USD /1.2978 EUR/USD 1.2852/ EUR/PLN 3.2459/ EUR/PLN /3.2461 Market entry: USD amount divided by the ask price = EUR amount, and EUR amount multiplied by the bid Price = PLN amount. Market exit: PLN amount divided by the ask price = EUR amount, and EUR amount multiplied by the bid price = USD amount. To calculate the P&L subtract the second USD amount from the first as the question asks you to Sell USD/PLN Balance Sheet USD EUR PLN Entry -500,000.00 -385,065.61 0.00 Entry 0.00 +385,065.61 +1,250,539.39 Exit 0.00 +385,243.64 -1,250,539.39 Exit +495,115.13 -385,243.64 0.00 Sum Totals -4,884.87 0.00 0.00 Very tough question to answer in 1.5 minutes. When you execute a spot forex transaction you are long/positive (+) one currency, and short/ Negative (-) the other. It may be helpful for you to think of this in terms of a balance sheet instead of a position in the market I will use the EUR/USD/PLN cross rate transaction/triangle example from above (3. Jantz Hoffman):

ENTRY EXIT
EUR/USD /1.2978 EUR/USD 1.2852/
EUR/PLN 3.2459/ EUR/PLN /3.2461

Market entry:
USD amount divided by the ask price = EUR amount, and
EUR amount multiplied by the bid Price = PLN amount.
Market exit:
PLN amount divided by the ask price = EUR amount, and EUR amount multiplied by the bid price = USD amount.

To calculate the P&L subtract the second USD amount from the first as the question asks you to Sell USD/PLN

Balance Sheet
USD EUR PLN
Entry -500,000.00 -385,065.61 0.00
Entry 0.00 +385,065.61 +1,250,539.39
Exit 0.00 +385,243.64 -1,250,539.39
Exit +495,115.13 -385,243.64 0.00
Sum
Totals -4,884.87 0.00 0.00

Very tough question to answer in 1.5 minutes.

]]> Comment on American Terms/European Terms by XAG http://www.series34exam.com/american-terms-eurpoean-terms/comment-page-1/#comment-3705 XAG Mon, 27 Dec 2010 19:42:15 +0000 http://www.series34exam.com/?p=23#comment-3705 I agree the definition is incorrect and Scott its correct . I agree the definition is incorrect and Scott its correct .

]]> Comment on Trade Date & Settlement Date by Joe http://www.series34exam.com/trade-date-and-settlement-date/comment-page-1/#comment-3399 Joe Fri, 12 Nov 2010 18:45:31 +0000 http://www.series34exam.com/?p=90#comment-3399 Help me understand why USD/CDN is different than other pairs. If you hold a position, it's rolled over anyway, is it not? Help me understand why USD/CDN is different than other pairs. If you hold a position, it’s rolled over anyway, is it not?

]]> Comment on Direct Quote & Indirect Quote by Josh http://www.series34exam.com/direct-quotes-indirect-quotes/comment-page-1/#comment-3353 Josh Thu, 04 Nov 2010 06:16:18 +0000 http://www.series34exam.com/?p=54#comment-3353 Direct quotation is 1 home currency units = X foreign currency unit. or home much foreign currency equale to 1 home curreny unit .. Direct quotation is 1 home currency units = X foreign currency unit. or home much foreign currency equale to 1 home curreny unit ..

]]> Comment on American Terms/European Terms by El Rico http://www.series34exam.com/american-terms-eurpoean-terms/comment-page-1/#comment-3321 El Rico Fri, 29 Oct 2010 02:31:58 +0000 http://www.series34exam.com/?p=23#comment-3321 To complicate things further, the currency notation is actually backwards as compared to mathematical notation. For example, EUR/USD in mathematical terms should be written as USD/EUR because it denotes a ratio of "USD to EUR" or "USD per EUR", as in you get 1.3900 USD per 1 EUR, hence the price is written as 1.3900. The same obviously goes for all currency pairs. To complicate things further, the currency notation is actually backwards as compared to mathematical notation. For example, EUR/USD in mathematical terms should be written as USD/EUR because it denotes a ratio of “USD to EUR” or “USD per EUR”, as in you get 1.3900 USD per 1 EUR, hence the price is written as 1.3900.

The same obviously goes for all currency pairs.

]]> Comment on Cross Rate Transactions by Jantz Hoffman http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3319 Jantz Hoffman Thu, 28 Oct 2010 21:39:33 +0000 http://www.series34exam.com/?p=136#comment-3319 Sorry I did make that mistake. I did not mean to use the later dates rate...just and error on my part you should use the 3.2459 selling eur buing pln to get 1,250,539.37 PLN then at the later date you convert back to dollars by buying EUR/PLN and then selling EUR/USD... (1,250,539.37/3.2461=385,243 EUROS X 1.2852=495,115.122 USD) All told there would be a loss of 500000-495,114=$4,884.87. Sorry I did make that mistake. I did not mean to use the later dates rate…just and error on my part you should use the 3.2459 selling eur buing pln to get 1,250,539.37 PLN then at the later date you convert back to dollars by buying EUR/PLN and then selling EUR/USD… (1,250,539.37/3.2461=385,243 EUROS X 1.2852=495,115.122 USD) All told there would be a loss of 500000-495,114=$4,884.87.

]]> Comment on Profit and Loss Calculations by mbtasi http://www.series34exam.com/profit-and-loss-calculations/comment-page-1/#comment-3305 mbtasi Tue, 26 Oct 2010 06:20:20 +0000 http://www.series34exam.com/?p=145#comment-3305 The computations in the answer in post #2 are in error, but the final answer is correct. In the conversion from USD to EUR, you multiplied instead of divided. If you had divided, the number of EUR's received is 193,408.63. Then, if this number is divided by the .82, it does net $235,864.19, or a loss of $14,135.81 as shown. The computations in the answer in post #2 are in error, but the final answer is correct. In the conversion from USD to EUR, you multiplied instead of divided. If you had divided, the number of EUR’s received is 193,408.63. Then, if this number is divided by the .82, it does net $235,864.19, or a loss of $14,135.81 as shown.

]]> Comment on Security Deposit Rules by Michael http://www.series34exam.com/security-deposit-rules/comment-page-1/#comment-3292 Michael Fri, 22 Oct 2010 18:16:49 +0000 http://www.series34exam.com/?p=232#comment-3292 New CFTC rules say 50:1 for major currency pairs, and 20:1 for exotic currency pairs... New CFTC rules say 50:1 for major currency pairs, and 20:1 for exotic currency pairs…

]]> Comment on Conflicts of Interest by Michael http://www.series34exam.com/conflicts-of-interest/comment-page-1/#comment-3291 Michael Fri, 22 Oct 2010 17:27:15 +0000 http://www.series34exam.com/?p=217#comment-3291 Jantz is right, on my disclosure doc I must disclose conflicts of interest... Jantz is right, on my disclosure doc I must disclose conflicts of interest…

]]> Comment on Forex PIPs by Michael http://www.series34exam.com/forex-pip/comment-page-1/#comment-3290 Michael Fri, 22 Oct 2010 15:51:48 +0000 http://www.series34exam.com/?p=78#comment-3290 All pips when USD is the quote currecny is $10 for the standard 100,000 lot... When USD is base currency more calculation is involved... USD/CAD selling at 1.0265 right now is $9.74, just divide the quote by 1 and move the decimal a couple places, it's that simple... All pips when USD is the quote currecny is $10 for the standard 100,000 lot…

When USD is base currency more calculation is involved…

USD/CAD selling at 1.0265 right now is $9.74, just divide the quote by 1 and move the decimal a couple places, it’s that simple…

]]> Comment on Exchange Rate Elasticity by Michael http://www.series34exam.com/exchange-rate-elasticity/comment-page-1/#comment-3289 Michael Fri, 22 Oct 2010 15:36:03 +0000 http://www.series34exam.com/?p=113#comment-3289 Here we go... "The elasticities approach is not problem-free because in the short term the exchange rate is more inelastic than it is in the long term and additional forex rate variables arise continuously, changing the rules of the game." Here we go…

“The elasticities approach is not problem-free because in the short term the exchange rate is more inelastic than it is in the long term and additional forex rate variables arise continuously, changing the rules of the game.”

]]> Comment on Profit and Loss Calculations by Michael http://www.series34exam.com/profit-and-loss-calculations/comment-page-1/#comment-3286 Michael Thu, 21 Oct 2010 22:34:31 +0000 http://www.series34exam.com/?p=145#comment-3286 Loss of $18,272 is what I am getting... Loss of $18,272 is what I am getting…

]]> Comment on Cross Rate Transactions by Michael http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3284 Michael Thu, 21 Oct 2010 18:57:34 +0000 http://www.series34exam.com/?p=136#comment-3284 I'm sorry the loss would be $6200... The loss on the EUR/PLN is only $100, for a total loss of $6200... I’m sorry the loss would be $6200…

The loss on the EUR/PLN is only $100, for a total loss of $6200…

]]> Comment on Cross Rate Transactions by Michael http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3283 Michael Thu, 21 Oct 2010 18:53:29 +0000 http://www.series34exam.com/?p=136#comment-3283 I got a loss of $6300... You buy EUR/USD at 1.2978 on the offer and later sell on the bid of 1.2852 for a loss of 1260 (100,000 lot) *5 lots (for the 500,000) equals a loss of 6100. You sell EUR/PLN at the bid of 3.2459 and buy back at the offer 3.2461 a loss of $200... Total loss $6300... I got a loss of $6300…

You buy EUR/USD at 1.2978 on the offer and later sell on the bid of 1.2852 for a loss of 1260 (100,000 lot) *5 lots (for the 500,000) equals a loss of 6100.

You sell EUR/PLN at the bid of 3.2459 and buy back at the offer 3.2461 a loss of $200…

Total loss $6300…

]]> Comment on Exchange Rate Elasticity by Michael http://www.series34exam.com/exchange-rate-elasticity/comment-page-1/#comment-3282 Michael Thu, 21 Oct 2010 17:06:43 +0000 http://www.series34exam.com/?p=113#comment-3282 So which is it??? I would think the long term is more elastic, much like bonds... So which is it???

I would think the long term is more elastic, much like bonds…

]]> Comment on American Terms/European Terms by Luis http://www.series34exam.com/american-terms-eurpoean-terms/comment-page-1/#comment-3252 Luis Wed, 13 Oct 2010 02:21:41 +0000 http://www.series34exam.com/?p=23#comment-3252 Can you clarify the American/European Terms... Can you clarify the American/European Terms…

]]> Comment on Cross Rate Transactions by Seth http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3242 Seth Sun, 10 Oct 2010 16:31:25 +0000 http://www.series34exam.com/?p=136#comment-3242 Jantz, I believe you meant made an accidental mistake in your calculation. When converting from EUR to PLN you used the rate at the later date. Was this done on purpose? I found a loss of about 4884 USD. Is this correct? Jantz,

I believe you meant made an accidental mistake in your calculation. When converting from EUR to PLN you used the rate at the later date. Was this done on purpose? I found a loss of about 4884 USD.

Is this correct?

]]> Comment on Definitions and Terminology by Jantz Hoffman http://www.series34exam.com/definitions-and-terminology/comment-page-1/#comment-3240 Jantz Hoffman Thu, 07 Oct 2010 16:34:35 +0000 http://www.series34exam.com/?p=11#comment-3240 Brake down of the Exams 40 qeustoins 10 definition and terminology--just know the them as they are t/f questions 8 Calcuations--only 2 of mine were p/l and none with pip value most were mark ups and mark downs 4 Risk Associated with Forex Trading--Most were T/F though a few were multiple choice asking about the differnt characteristics of the risk types (operation, market, liquidity etc) 10 Forex Market Knowedge 8 Forex Regulations All in all, the information you need is on this site, just make flash cards and you will be fine. Brake down of the Exams 40 qeustoins

10 definition and terminology–just know the them as they are t/f questions

8 Calcuations–only 2 of mine were p/l and none with pip value most were mark ups and mark downs

4 Risk Associated with Forex Trading–Most were T/F though a few were multiple choice asking about the differnt characteristics of the risk types (operation, market, liquidity etc)

10 Forex Market Knowedge

8 Forex Regulations

All in all, the information you need is on this site, just make flash cards and you will be fine.

]]> Comment on Mark-Ups & Mark-Downs by Jantz Hoffman http://www.series34exam.com/mark-ups-and-mark-downs/comment-page-1/#comment-3239 Jantz Hoffman Thu, 07 Oct 2010 16:28:16 +0000 http://www.series34exam.com/?p=75#comment-3239 One question was flawed though and didnt specify the pair. Only saying the swiss franc is trading at 1.2924/1.2926. If the pair was marked up 4 pips what would it be avaiblabe to buy the Swiss Fanc at? Problem is this question does say it is the USD/CHF or CHF/PLY so there is now way to know if you would be selling or buying the pair to buy the CHF. This question was very unclear. One question was flawed though and didnt specify the pair. Only saying the swiss franc is trading at 1.2924/1.2926. If the pair was marked up 4 pips what would it be avaiblabe to buy the Swiss Fanc at?

Problem is this question does say it is the USD/CHF or CHF/PLY so there is now way to know if you would be selling or buying the pair to buy the CHF. This question was very unclear.

]]> Comment on Mark-Ups & Mark-Downs by Jantz Hoffman http://www.series34exam.com/mark-ups-and-mark-downs/comment-page-1/#comment-3238 Jantz Hoffman Thu, 07 Oct 2010 16:25:40 +0000 http://www.series34exam.com/?p=75#comment-3238 On my exam I had 2-3 questoins asking me about mark ups. They woudl give a bid and offer and ask you what a client would purchas after a mark up. Example: A FDM offers a 2 pip mark up. The brokers EUR/USD rates are 1.2925/1.2927. After the mark up what price would a customer buy at? On my exam I had 2-3 questoins asking me about mark ups. They woudl give a bid and offer and ask you what a client would purchas after a mark up.

Example:
A FDM offers a 2 pip mark up. The brokers EUR/USD rates are
1.2925/1.2927. After the mark up what price would a customer buy at?

]]> Comment on Profit and Loss Calculations by Jantz Hoffman http://www.series34exam.com/profit-and-loss-calculations/comment-page-1/#comment-3237 Jantz Hoffman Thu, 07 Oct 2010 16:22:25 +0000 http://www.series34exam.com/?p=145#comment-3237 In this example they do most of the work for you. You take the 250,000 and divide by the offer 1.2926 (buying EUR/USD)so you know how many EUROS you have 323.150. Next knowing that you can exchange every .82 eur for one USD, you simply divide by .82 and that will get you the USD value 235,864.19. Since the customer started with 250,000 and now has 235.864.19 there is a loss of 14,135.81 In this example they do most of the work for you. You take the 250,000 and divide by the offer 1.2926 (buying EUR/USD)so you know how many EUROS you have 323.150. Next knowing that you can exchange every .82 eur for one USD, you simply divide by .82 and that will get you the USD value 235,864.19. Since the customer started with 250,000 and now has 235.864.19 there is a loss of 14,135.81

]]> Comment on Profit and Loss Calculations by Jantz Hoffman http://www.series34exam.com/profit-and-loss-calculations/comment-page-1/#comment-3236 Jantz Hoffman Thu, 07 Oct 2010 16:18:58 +0000 http://www.series34exam.com/?p=145#comment-3236 The question I had here was a little different than normal. There was no need to calcualte a pip or pip value. A customer would like to purchase 250,000 of EUR/USD. The current rates for the EUR/USD are. 1.2924/1.2926 Two days later the .82 Eur can be exchanged for 1 USD. What was the customers P/L? The question I had here was a little different than normal. There was no need to calcualte a pip or pip value.

A customer would like to purchase 250,000 of EUR/USD. The current rates for the EUR/USD are.

1.2924/1.2926

Two days later the .82 Eur can be exchanged for 1 USD.

What was the customers P/L?

]]> Comment on Cross Rate Transactions by Jantz Hoffman http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3235 Jantz Hoffman Thu, 07 Oct 2010 16:15:25 +0000 http://www.series34exam.com/?p=136#comment-3235 In this example we take the 500,000 USD, divdie by the EUR/USD (buying EUR/USD) offer rate 1.2978 to get the number of EUROS. 385,267.38. We then multiply the number of EUROS by the Bid of the EUR/PLN rate (selling EUR/PLN) 3.2444 to get 1,249,961.47 PLN. Now at at later date we calcualte the what those are worth in USD, so we divide by the EUR/PLN offer (buying EUR/PLN)3.2461to get 385,065.61 Euros. The next step is to convert back to USD so we multiply by the EUR/USD (selling EUR/USD)bid 1.2852 to get 494,886.32 or a loss of 5,113.68. Hope this helps. In this example we take the 500,000 USD, divdie by the EUR/USD (buying EUR/USD) offer rate 1.2978 to get the number of EUROS. 385,267.38. We then multiply the number of EUROS by the Bid of the EUR/PLN rate (selling EUR/PLN) 3.2444 to get 1,249,961.47 PLN. Now at at later date we calcualte the what those are worth in USD, so we divide by the EUR/PLN offer (buying EUR/PLN)3.2461to get 385,065.61 Euros. The next step is to convert back to USD so we multiply by the EUR/USD (selling EUR/USD)bid 1.2852 to get 494,886.32 or a loss of 5,113.68.

Hope this helps.

]]> Comment on Cross Rate Transactions by Jantz Hoffman http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3234 Jantz Hoffman Thu, 07 Oct 2010 16:07:35 +0000 http://www.series34exam.com/?p=136#comment-3234 I had one of these on my exam. Questions was framed as such You have a customer who believes the polish zolty is going appreciate in value. The customer has 25,000 on depost and wants to trade $500,0000. Only the FDM does not offer a USD/PLN only a EUR/PLN. At the time that your customer wants to by the PLN, the rates are as follows. EUR/USD 1.2975/1.2978 EUR/PLN 3.2459/3.24675 Later when your customer closes the position, the rates are as follows. EUR/USD 1.2852/1.2855 EUR/PLN 3.2444/3.2461 From this you had to calculate the profit or loss I had one of these on my exam. Questions was framed as such

You have a customer who believes the polish zolty is going appreciate in value. The customer has 25,000 on depost and wants to trade $500,0000. Only the FDM does not offer a USD/PLN only a EUR/PLN. At the time that your customer wants to by the PLN, the rates are as follows.

EUR/USD 1.2975/1.2978
EUR/PLN 3.2459/3.24675

Later when your customer closes the position, the rates are as follows.

EUR/USD 1.2852/1.2855

EUR/PLN 3.2444/3.2461

From this you had to calculate the profit or loss

]]> Comment on American Terms/European Terms by scott Franklin http://www.series34exam.com/american-terms-eurpoean-terms/comment-page-1/#comment-3226 scott Franklin Mon, 04 Oct 2010 23:27:36 +0000 http://www.series34exam.com/?p=23#comment-3226 Your information about european terms is wrong I think the NFA even agreed with your wrong answers I just took the test and there were two questions about the European terms and american terms The definition for european terms= how much foreign Currency does it cost to buy one US dollar this would make USD the base currency or as you say the numerator usd/chf is european terms not american terms You can check many sources online as I did . The best study guide is the CTR and they got it right I think the NFA is using your definition as well so anyone who now takes the test is automatically behind by 2 questions if they use the CTR definition We need to fix this if possible Your information about european terms is wrong I think the NFA even agreed with your wrong answers
I just took the test and there were two questions about the European terms and american terms
The definition for european terms= how much foreign Currency does it cost to buy one US dollar this would make USD the base currency or as you say the numerator usd/chf is european terms not american terms
You can check many sources online as I did . The best study guide is the CTR and they got it right I think the NFA is using your definition as well
so anyone who now takes the test is automatically behind by 2 questions if they use the CTR definition
We need to fix this if possible

]]> Comment on Conflicts of Interest by Jantz Hoffman http://www.series34exam.com/conflicts-of-interest/comment-page-1/#comment-3212 Jantz Hoffman Thu, 30 Sep 2010 21:02:30 +0000 http://www.series34exam.com/?p=217#comment-3212 I believe this refers to retail forex traders that will be required to register with the NFA as a CTA and in doing so will be required to disclose in their disclosure document that all potential clients must receive a section on conflicts of interest. As many forex adviser receive rebates for transactions these CTAs will be required to disclose the fact that they have a conflict on interest to over trade a customers account. Additional conflicts could relate to other business operations and proprietary trading by the CTA. I believe this refers to retail forex traders that will be required to register with the NFA as a CTA and in doing so will be required to disclose in their disclosure document that all potential clients must receive a section on conflicts of interest. As many forex adviser receive rebates for transactions these CTAs will be required to disclose the fact that they have a conflict on interest to over trade a customers account. Additional conflicts could relate to other business operations and proprietary trading by the CTA.

]]> Comment on Transaction Costs by Jantz Hoffman http://www.series34exam.com/transaction-costs/comment-page-1/#comment-3211 Jantz Hoffman Thu, 30 Sep 2010 20:31:54 +0000 http://www.series34exam.com/?p=155#comment-3211 Though many FDMs may not charge a commision, most institutional banks and liquidity providers charge a commission quoted in dollars per million and give direct access to the bid and asks spreads at which others are willing to buy or sell a given pair. Different liquity providers can offer differnt costs depending upon volume being transacted. One should always consider their cost of trading vs. their volume in relation to slippage. It may cost more to add liquidity but if the added liquidity prevents slippage the added cost per million traded may be made up in fills. Though many FDMs may not charge a commision, most institutional banks and liquidity providers charge a commission quoted in dollars per million and give direct access to the bid and asks spreads at which others are willing to buy or sell a given pair. Different liquity providers can offer differnt costs depending upon volume being transacted. One should always consider their cost of trading vs. their volume in relation to slippage. It may cost more to add liquidity but if the added liquidity prevents slippage the added cost per million traded may be made up in fills.

]]> Comment on Pip Values & Price After Pips by Jantz Hoffman http://www.series34exam.com/pip-values-and-price-after-pips/comment-page-1/#comment-3210 Jantz Hoffman Thu, 30 Sep 2010 20:23:41 +0000 http://www.series34exam.com/?p=147#comment-3210 Pip value for JPY is .01 100,000 USD/JPY at 83.50 100,000 USD X.01 = 1000 1000/83.50 = 11.98 this calcuation allows for trades sizes not standard 100,000 or 10,000 lots...would work for odd trade sizes such as 124,215 if you are using the spot transaction as a hedge to anther investment that would require a specific dollar size. Pip value for JPY is .01

100,000 USD/JPY at 83.50

100,000 USD X.01 = 1000
1000/83.50 = 11.98

this calcuation allows for trades sizes not standard 100,000 or 10,000 lots…would work for odd trade sizes such as 124,215 if you are using the spot transaction as a hedge to anther investment that would require a specific dollar size.

]]> Comment on Pip Values & Price After Pips by Jantz Hoffman http://www.series34exam.com/pip-values-and-price-after-pips/comment-page-1/#comment-3209 Jantz Hoffman Thu, 30 Sep 2010 20:19:42 +0000 http://www.series34exam.com/?p=147#comment-3209 Pip vlue is calcuated as such position size in USD X pip value / exhcange rate Example #1 100,000 GBP/USD pip value rate at 1.5715 100,000 GBP X 1.5715 = 157,150 USD 157150 USD X .001 = 15.715 15.715 / 1.5715 = 10.00 Example #2 100,000 USD/CAD pip value rate at 1.0285 10,000 USD X .0001 = 10 1 / 1.0285 = .972 Pip vlue is calcuated as such

position size in USD X pip value / exhcange rate

Example #1 100,000 GBP/USD pip value rate at 1.5715

100,000 GBP X 1.5715 = 157,150 USD
157150 USD X .001 = 15.715
15.715 / 1.5715 = 10.00

Example #2 100,000 USD/CAD pip value rate at 1.0285

10,000 USD X .0001 = 10
1 / 1.0285 = .972

]]> Comment on Forex PIPs by Jantz Hoffman http://www.series34exam.com/forex-pip/comment-page-1/#comment-3173 Jantz Hoffman Wed, 15 Sep 2010 17:16:29 +0000 http://www.series34exam.com/?p=78#comment-3173 No problem Bart, but reading over my comment I would like to correct and amend. The formula for valuing a pip is as follows. (one pip, with proper decimal placement/currency exchange rate) x (Notional Amount) The pip value of pairs where the USD is the base pair will have a notional amount in USD while pairs that the USD is not the base pair will will have notional amounts in the base pari (GBP, EUR, AUD). This will effect your leverage and margin used as you need to use more margin to take a 100,000 GBP/USD position (100,000 GBP =100,000 X GBP/USD exchange rate) than a 100,000 USD/CHF position (100,000 USD). Pairs where the base piar is USD the P/L is already calcuated in USD. As for pairs where the USD is the secondary currency P/L will be in the base currency and need to be exchanged back to USD. It is the addtional amount of margin used to take the position that makes the pip value of pairs in which the USD is the quote currency a round number (assuming 100,000 or 10,000 base pair size trades). Hope this helps. No problem Bart, but reading over my comment I would like to correct and amend. The formula for valuing a pip is as follows.
(one pip, with proper decimal placement/currency exchange rate) x (Notional Amount)

The pip value of pairs where the USD is the base pair will have a notional amount in USD while pairs that the USD is not the base pair will will have notional amounts in the base pari (GBP, EUR, AUD). This will effect your leverage and margin used as you need to use more margin to take a 100,000 GBP/USD position (100,000 GBP =100,000 X GBP/USD exchange rate) than a 100,000 USD/CHF position (100,000 USD). Pairs where the base piar is USD the P/L is already calcuated in USD. As for pairs where the USD is the secondary currency P/L will be in the base currency and need to be exchanged back to USD. It is the addtional amount of margin used to take the position that makes the pip value of pairs in which the USD is the quote currency a round number (assuming 100,000 or 10,000 base pair size trades).

Hope this helps.

]]> Comment on Forex PIPs by admin http://www.series34exam.com/forex-pip/comment-page-1/#comment-3168 admin Tue, 14 Sep 2010 22:50:42 +0000 http://www.series34exam.com/?p=78#comment-3168 Jantz, Thanks so much for adding additional information, it is very helpful. Regards, Bart Jantz,

Thanks so much for adding additional information, it is very helpful.

Regards,
Bart

]]> Comment on Cross Rate Transactions by admin http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3167 admin Tue, 14 Sep 2010 22:48:53 +0000 http://www.series34exam.com/?p=136#comment-3167 Hi David, We are actively revising the information here so it will be more useful for those taking the exam. Please look back soon. Regards, Bart Hi David,

We are actively revising the information here so it will be more useful for those taking the exam. Please look back soon.

Regards,
Bart

]]> Comment on Netting of Positions by admin http://www.series34exam.com/netting-of-positions/comment-page-1/#comment-3166 admin Tue, 14 Sep 2010 22:47:16 +0000 http://www.series34exam.com/?p=141#comment-3166 We are working on more examples for this and they should be coming soon. Regards, Bart We are working on more examples for this and they should be coming soon.

Regards,
Bart

]]> Comment on Forex PIPs by Jantz Hoffman http://www.series34exam.com/forex-pip/comment-page-1/#comment-3164 Jantz Hoffman Tue, 14 Sep 2010 22:39:14 +0000 http://www.series34exam.com/?p=78#comment-3164 I believe PIP stands for price interst point. And there is a specific calculation for them. Furthermore the EUR/USD pip value is only $10 per standard lot because the exchange rate is greater than 1.0000. If the rate were to dip below 1.0000 then the value of a pip would no longer be $10. It would be less. The reason for the value being $10 is due to the fact that you are requried to use more margin for a 100,000 eur/usd lot than a 100,000 usd/chf lot. As the the base currrency is differnt and thust the capital requried for the position is defferetn. There is also no such thing as a stardard lot in institutional trading...just dollars, interest, and exchange rates. I believe PIP stands for price interst point. And there is a specific calculation for them. Furthermore the EUR/USD pip value is only $10 per standard lot because the exchange rate is greater than 1.0000. If the rate were to dip below 1.0000 then the value of a pip would no longer be $10. It would be less. The reason for the value being $10 is due to the fact that you are requried to use more margin for a 100,000 eur/usd lot than a 100,000 usd/chf lot. As the the base currrency is differnt and thust the capital requried for the position is defferetn. There is also no such thing as a stardard lot in institutional trading…just dollars, interest, and exchange rates.

]]> Comment on Cross Rate Transactions by David http://www.series34exam.com/cross-rate-transactions/comment-page-1/#comment-3095 David Thu, 19 Aug 2010 12:12:14 +0000 http://www.series34exam.com/?p=136#comment-3095 Huh??? Can someone explain the formula in a layman's terms, please? Huh???
Can someone explain the formula in a layman’s terms, please?

]]> Comment on Netting of Positions by isaacnewton94@yahoo.com http://www.series34exam.com/netting-of-positions/comment-page-1/#comment-2922 isaacnewton94@yahoo.com Wed, 16 Jun 2010 20:32:59 +0000 http://www.series34exam.com/?p=141#comment-2922 how to calculate for future preditions mathematically.please how to calculate for future preditions mathematically.please

]]> Comment on American Terms/European Terms by Stephen Hart http://www.series34exam.com/american-terms-eurpoean-terms/comment-page-1/#comment-2713 Stephen Hart Fri, 02 Apr 2010 16:00:38 +0000 http://www.series34exam.com/?p=23#comment-2713 The numerator / denominator is known in the forex 'real world' as the base / cross currency. I'd never heard this classed as numerator and denominator or American and European terms... good to know this for the test I guess. The numerator / denominator is known in the forex ‘real world’ as the base / cross currency. I’d never heard this classed as numerator and denominator or American and European terms… good to know this for the test I guess.

]]>