Edge Forex

Tag: news

  • WHY IS IT IMPOSSIBLE TO FORGE AN NFT?

    WHY IS IT IMPOSSIBLE TO FORGE AN NFT?

    When an NFT (non-fungible token) is sold, the buyer is not acquiring the underlying digital picture. Instead, the buyer acquires a crypto token that serves as proof of ownership of the digital picture in question. 

    You might as well have given your money to a random individual on the internet if you didn’t have the valid token. This explains the entire premise of these tokens’ “non-fungibility.” Furthermore, because it is kept and accessible through the blockchain, its uniqueness can be easily verified, and no two identical non-fungible tokens may exist. 

    Having said that, many people have attempted to manufacture an NFT, but false or forged NFTs are easily identified since they can always be tracked back to the original creator’s address.

    You could try to counterfeit the token by making your own, but it would be far too simple to detect a fabrication. Why? Because it cannot be traced back to the address of the original developer. 

    NFT

    Can non-fungible tokens be readily replicated or falsified if they are in picture or video format? The straightforward answer is no, and here’s why. 

    All information about the original picture associated to the token is contained inside the metadata of each token. The connected picture cannot be switched since the metadata is unchangeable.

    Minting an NFT

    Assume you wish to acquire one of the well-known Bored Ape Yacht Club (BAYC) NFTs. BAYC is a collection of 10,000 ape NFTs, each with its own token on the Ethereum network. In addition, each ape has a unique Token ID that ranges from #1 to #10,000. 

    Back on subject, if you want to buy a BAYC NFT and make millions of strangers on the internet jealous, the first step is to create an account on OpenSea using a browser plug-in called Metamask. 

    To buy a BAYC token, you must first have an Ethereum wallet, which also serves as your “account number”. Once you pay for the token, the unique bored ape token is transferred to your Ethereum wallet, presuming you have enough ETH in your wallet.

    Having said that, anyone on the blockchain can simply verify that you hold the token because it is in your wallet. 

    To check if the BAYC token you want to buy is genuine, you can simply read the specifics of each NFT on OpenSea, including the “Contract Address” and the token ID. 

    Every NFT project on the Ethereum blockchain has a Contract Address, which is the wallet address of the original developer. For those who are interested, here is BAYC’s original address: 

    That being stated, if the item you wish to buy does not come from the Contact Address shown above, you are dealing with a forgery of a BAYC NFT. 

    Meanwhile, you may use the blockchain explorer “Etherscan” to determine whether an NFT is genuine.

  • Escalation of Turkey’s crisis may spread contagion

    The lira’s depreciation would exacerbate Turkey’s inflationary dilemma while also risking aggravating currency mismatches on bank sheets. Furthermore, rising external borrowing prices will make it more difficult for Turkish borrowers to roll over their external obligations (which are denominated mainly in foreign currencies).

    Examining Turkey’s gross external finance demand, which is the total of the current account deficit and short-term foreign debt, or, in other words, the capital inflows necessary over the next year, is one approach to demonstrate the gravity of the concerns. Calculated as a proportion of central banks’ FX reserves, and provide an indication of the extent to which the central bank can assist distressed borrowers.

    Foreign exchange reserves in Turkey barely meet around two-thirds of the country’s short-term external finance needs. And this is based on gross FX reserves; net reserves are far smaller.

    However, the probability of substantial balance-of-payments stresses appears to be far lower for most other important emerging markets. Argentina and Hungary may be the most concerned, but even in those countries, foreign exchange reserves will more than satisfy external finance needs for the next year.

    According to SARB rate indicators, the South African rand is weakening as a result of the Turkey contagion.
    South Africa’s rand sank on Thursday, weighed down by contagion from a dramatic collapse in the Turkish lira and signs from the home central bank that interest rate hikes will likely be slower than markets had anticipated.

    turkey


    At 1517 GMT, the rand ZAR=D3 was trading at 15.7050 per dollar, down about 1.4 percent from its previous close.
    The South African Reserve Bank increased its main lending rate by 25 basis points to 3.75 percent ZAREPO=ECI, which would ordinarily help the rand, but some traders were focused on the gradual rate path that the monetary policy committee appeared to favor.


    “The rate of policy tightening will most likely be much slower than the market had anticipated,” said Kieran Siney, co-head of financial markets at ETM Analytics.


    According to Razia Khan of Standard Chartered, the rand was dropping in sync with the lira TRY=, which fell more than 3% after Turkey’s central bank defied inflation of 20% by cutting interest rates by another 100 basis points.


    Johannesburg-listed equities fell, with the All-Share index.JALSH down 0.11 percent to 70,867 points.
    Investec INLJ.J, a financial services business, was an outlier, jumping 1.9 percent after reporting a more than twofold increase in earnings and announcing a 15 percent interest in asset manager NinetyOne N91.L will be distributed to shareholders.


    The government’s 2030 bond yield ZAR2030= fell 1 basis point to 9.455 percent, indicating a slightly higher price.

  • Forex Trading News -November 23, 2021

    Trading the JPY

    The Bank of Japan is heavily bearish. With Japan battling with deflationary pressures for years and a huge QE program. The Bank of Japan’s prognosis remains bleak.

    The fact that the Bank of Japan is projected to keep interest rates on hold while the rest of the globe is expected to raise rates has lately resulted in some heavy selling from asset managers and leveraged funds.

    With the BoJ so pessimistic, rate differentials between the Japanese 10y and the US 10y are normally only seen in the ebbs and flows of the US 10 y. Keep in mind that the Bank of Japan has yield curve control over its bond yields. So, here’s what you need to know:

    A dropping US 10-year yield equals a rising JPY. And a rising US 10-year yield equals a dropping JPY. 

    This correlation is not always ideal because it may ebb and flow, but it is something to keep in mind while trading the JPY, particularly the USDJPY. Take a look at the USDJPY chart below to see how it relates to the US10y. 

    Rising oil prices are negative for the JPY because higher-priced petroleum draws JPY out of Japan. Japan imports the majority of its oil from other countries. And a weak Yen will make those imports more expensive. If oil begins to rise in price, keep an eye on it since this might weaken the JPY.

    Eurostoxx

    Eurostoxx futures are down 0.7% in early European trade, early deals had softer tones.

    German DAX futures are down 0.6 percent; UK FTSE futures are down 0.4 percent. And Spanish IBEX futures are down 0.5 percent. This comes after a more modest performance yesterday, all before US markets took a knock as rates rose in response to Powell’s re-election as Fed chair, so there is some catching up to do ahead of the open today. 

    So far, the mood music isn’t as gloomy as European futures predict, but the risk is still slightly on the cautious side. As we seek to get things rolling, the S&P 500 futures are down 0.1 percent, the Nasdaq futures are down 0.2 percent, and the Dow futures are down 0.1 percent.

    Kaisa bondholders 

    According to a source with firsthand knowledge of the situation, certain Kaisa offshore bondholders who did not receive coupon payments this month have contacted investment bank Moelis & Company for advice on how to handle the situation. 

    For context, Kaisa has not paid coupons totaling more than $59 million that were due on November 11 and 12 (both having a 30-day grace period) and is facing another $400 million dollar bond maturity on December 7.

    An earlier Bloomberg article said that an ad hoc group of offshore bondholders had also sought legal counsel from Kirkland & Ellis. 

    As much as Evergrande is a household brand. It is important to remember that other Chinese property developers are also suffering similar challenges, and Kaisa is the business with the greatest offshore debt after Evergrande.

    Germany

    The situation with COVID-19 is “extremely, very serious” in various German states. No steps, including lockdown, can be ruled out. 

    This reflects last Friday’s viewpoint and simply underlines that local authorities are obviously being stretched to their limits in attempting to get a handle on the newest COVID-19 crisis.

    EUR/USD is approaching 1.1200, while USD/JPY is threatening to break over 115.00. The latter, in particular, is worth watching since it highlights the technical potential for the greenback and maybe yen pairings (if the mood is right) in the coming weeks. 

    jpy

    Looking at other markets, gold’s drop on Powell’s re-election is a significant setback to the recent technical breakthrough, but it was not unexpected. 

    The important daily moving averages around $1,792-93 are a place to monitor, although gold may drop down around $1,750 before any buying interest emerges.

    Aside from that, oil is one that one needs to continue to keep an eye on, and all this discussion of a coordinated SPR release, , is simply begging for a ‘buy the dips’ or ‘buy the fact’ play – even though there may be a kneejerk reaction lower initially.

  • Risk Management: What are the Trader’s Worst Mistakes?

    All About Risk Management

    Here are four blunders you must avoid at all costs while trading:

    • Do not Invest without a proper strategy.

    Emphasizing the necessity of having a trading strategy is simply not enough. Trading without a strategy is nothing more than a game of chance waiting for a terrible outcome. 

    • Diversify your trading portfolio.

    One of the most crucial aspects of investing and trading is diversification. It indicates that you don’t invest all of your money into one item; it’s important to diversify your portfolio. However, while trading Forex, a large number of pairings are connected. Your transactions may appear to be diverse, but they really coincide and will proceed in the same direction. If your analysis is accurate, you could gain a lot of money, but if it isn’t, you could lose a lot of money. Make sure that the deals you make during the day are unrelated.

    • Going overboard after a few wins/losses.

    Even if you have a risk-management strategy in place, you may find yourself in a situation where you feel compelled to go all in. It can happen if you’re on a losing streak and try to win it all back, or if you’ve had several winning trades in a row and feel unstoppable. In any case, if you do not adhere to risk management, you are placing yourself in a position to lose a lot of money. Stick to your management approach no matter what. Taking a 1% risk every trade and a 3% risk per day is advised. 

    risk
    • Risking more than one can bear.

    This blunder stems from the previous one. It’s simple: if you lose more than 1% of your account as a result of a stop-loss, your risk management is incorrect, and you risk losing your account. If you lose several times in succession, your deposit may be forfeited. 

    To reiterate, trading is not only an exercise in analysis. It’s also about how you operate when you’re under pressure. And how you act when you’re on the winning or losing end of the game.

  • EURUSD Update For Oct 21st 2021

    Price EURUSD at the time of writing this – 1.1655

    Price EURUSD at the time of writing this – 1.1655
    The return of the Euro from 1.1617 to 1.1658 yesterday suggests that Tuesday’s re-test near the 3 week high of 1.1669 will take place soon. A violation of which will increase the rise (per our view) from October 1.1525 up to 1.1700- 05. However, ‘loss of upward pressure’ should limit the price below resistance to 1.1755 this week.  On the downside, only a daily close below 1.1617 indicates that the reversal is over, then the trend will turn bearish towards 1.1572 next week.

    Data to be released Today:
    Continuing jobless claims, U.S. initial jobless claims, existing home sales, e, Canada ADP employment change, leading index change, new housing price index, and EU consumer confidence.

    eurusd

  • AUD/USD update for October 20th, 2021

    The Australian dollar has resumed its recovery against the US dollar. AUD/USD has risen to 0.7471, up 0.80% on the day. The pair is at its highest level over last 4 months.

    The RBA minutes reiterated the old familiar message from the central bank that the economic conditions for a rate hike will not be met before 2024. The minutes also showed that the RBA expects the economy to grow in the fourth quarter, following a contraction in GDP in the third quarter. The minutes were relatively dovish, particularly with regard to the RBA’s interest rate policy.

    aud

    Although inflation is slightly below the RBA’s target, this could change as some Australian states have eased restrictions on covid related closures. In addition, major central banks, led by the BoE, are showing a tendency to tighten monetary policy and the RBA may have to follow suit and bring forward its plans to normalise monetary policy. The AUD has risen on the expectation that the RBA will change its rate outlook, perhaps as early as this week. If this is the case, AUD/USD could continue its rally and move towards the 0.76 line.

    The Aussie is also benefiting from improved risk sentiment on Tuesday as the US dollar trades broadly lower against Asian currencies as well as the euro and sterling. Higher coal prices have also boosted the Aussie dollar. China is turning to coal to ease energy shortages, which is good news for Australian coal producers.

  • Forex Trading: WHAT IS FOREX?

    Forex trading is a term used to describe people involved in the effective exchange of foreign currency, usually for the purpose of profit or financial gain. That could take the form of speculators, who want to buy or sell money for the purpose of profiting through the price movement of money; or it could be a fence aimed at protecting their accounts in the event of a breach of their financial position.


    The term ‘forex trader’ can refer to each trader in the trading platform, a bank trader using their institutional platform, or hedgers who may be carrying their own risk or withdrawing that activity from the bank or financial manager to manage the risk on them.

    The foreign exchange market, or forex (FX) for short, is a low-level market place that enables the buying and selling of various currencies. This happens over the counter (OTC) instead of the intermediate exchange.
    Unbeknownst to you, you may already be participating in the foreign exchange market by ordering imported goods such as clothing or shoes, or, more likely, by buying foreign currency while on vacation. Traders can be drawn into forex for a number of reasons, including:

    1. FX market size
    2. Different types of trading currencies
    3. A different level of flexibility
    4. Low transaction costs
    5. Trading 24 hours during the week

    TRADE OF PAIRS
    One unique feature of the Forex market is the way prices are quoted. Because money is the foundation of a financial system, the only way to extract money is through other currencies. This creates a harmonious equation metrics that may sound confusing at first.
    Forex trading in pairs gives the trader some flexibility, allowing the trader or investor to express his or her trading in the currency he or she feels most appropriate.

    Let’s take the Euro for example, and let’s say the trader has good intentions for the European economy and thus would like to make long money. But – let’s say this investor is also strong in the US economy, but bearish on the UK economy. Yes, in this example, the investor is not forced to buy the Euro against the US Dollar (which could be a long trade of EUR / USD); and, instead, they can buy the Euro against the British Pound (long EUR / GBP goes).

    forex

    This gives the investor or trader that extra flexibility, which allows them to avoid ‘missing’ the US Dollar to buy the Euro and, instead, allows them to buy the Euro while they are short of the British Pound.

    CHURCH TRADE: BASE V / S COUNTER CURRENCIES
    One important difference of the Forex rate is the meeting: The first currency listed in the rating list is known as the ‘basic’ currency of the two, and this is the quoted asset. The second coin is known as the ‘counter’, and this is the standard currency, or currency used to define the amount of the first coin for the two.

    LET’S TAKE EUR / USD AS AN EXAMPLE

    The Euro is the first currency on the scale, so the Euro will be the primary currency in the USD / EUR currency pair.

    The US Dollar is the second largest currency, and this is the currency used by the EUR / USD quote to define the Euro value.

    So, let’s say the EUR / USD average is 1.3000. That would mean 1 Euro costs $ 1.30. If the price goes up to $ 1.35 – then the Euro would go up in value and, basically, the US Dollar would go down in value.

    If an investor was bearish on the Euro but strengthened the US Dollar, they could choose to ‘shorten’ the two, expecting prices to fall; after that they could ‘cover’ the trade by buying it at a lower price, and then put the difference in the pocket.

    TRADE OF CHURCHES
    In short, the foreign exchange market works like many other markets because it is driven by supply and demand. Using a basic example, if there is a strong demand for the US Dollar for European citizens holding Euros, they will exchange their Euros for Dollars. The value of the US dollar will rise while the value of the Euro will decline. Keep in mind that this transaction only affects the EUR / USD currency pair and will not, for example, cause the USD to depreciate in the Japanese Yen.