articles on Forex

What is Forex?

What is Forex ? The Forex market is one of the biggest trading markets in the world and is accessible to any individual over the age of 18. Forex trading is the real time buying of one currency and the selling of another. It allows people to make a profit by trying to calculate which currency's value will increase by the end of a determined time. While Forex trading may sound difficult, it is actually not that complicated and it is possible to comprehend even if you have not studied finance or economics.

Always remember that the first currency listed in a currency pair is called the "base currency". A base currency is usually the USD and traders will usually trade the USD against another currency. When the USD is the base unit and acurrency quote increases, it means the dollar has risen in value and the other currency has weakened (For example: If, the USD/JPY quote used to be equal to 2.45 and after an allotted time, the USD/JPY quote is 2.60, then the dollar is stronger because it can now buy more Japanese Yen).

Forex Explained

Forex Explained - A basic introduction to the world of Forex Trading

The Forex market

The currency exchange trading market is the biggest and fastest growing market on earth it’s even bigger then NASDAQ! Its gross revenue is more than 3.5 trillion dollars daily. The participants in this market are central and commercial banks, corporations, institutional investors, hedge funds, and private individuals like you and I.

Forex trades are non-delivery trades: currencies are not physically traded, but rather there are currency contracts which are agreed upon and performed.

Both parties to such contracts (the trader and the trading platform) undertake to fulfill their obligations: one side undertakes to sell the amount specified, and the other side undertakes to buy it.

What make up a Forex deal ?

A Forex deal is a contract agreed upon between the trader and the market-maker.

The contract is comprised of the following components:

• The currency pairs (The currency to buy and the currency to be sold)
• The principal amount
• The exchange rate agreed

How do I profit in Forex ?

Clearly, buy low - sell high! Imagine that the exchange rate of EUR/USD (euros to US dollars) at 1 pm is 1.1999. If you had bought 1,000 euros at that time , you would have paid 1,199.00 US dollars. If one hour later, the exchange rate was 1.2222, the value of the euro has increased in relation to the US dollar. You could now sell the 1,000 euros in order to receive 1222.00 US dollars. You would then have USD 23.00 more than when you started the trade an hour ago.

What is “Leverage” and why do we need it?

The ratio of investment to actual value is called “leverage”. Using a $100 to buy a Forex contract with a $10,000 value is “leveraging” at 1:100 ratio.  Your trade of $100 is all you can risk, but you can make way more!

How risky is Forex trading?

As mentioned above you can never lose more than the the amount you invest, but as with everything that involves risking money, we advise you to never risk more than you can afford to lose.

With eToro you can open a real money account from as little as $50, minimum trade is $25 and we offer a variety of leverages up to 400:1.

What is a Spread ?

What is a Spread ? - Learn what the definition of a spread is and how much eToro's spreads are (2 pips)

A spread is the difference between BUY and SELL, or BID and ASK. In other words, this is the difference between the market maker's "selling" price (to its clients) and the price the market maker "buys" it from its clients.

If you buy a currency and immediately sell it (and thus there is no change in the rate of exchange), then you will lose money. The reason for this is “the spread”. 

At any given moment, the amount that will be received in the counter currency when selling a unit of base currency will be lower than the amount of counter currency which is needed to purchase a unit of base currency. 

For instance, the EUR/USD bid/ask currency rates at your bank may be 1.2015/1.3015, representing a spread of 1,000 pips (percentage in points; one pip = 0.0001).  Such a rate is much higher than the bid/ask currency rates that eToro charges which is 2 pips, in this example 1.2015/1.2017.

Smaller spreads are better for investors since this means you require a smaller movement in exchange rates in order to make profit from a trade.

The history of the Forex market

The history of the Forex market - An introduction to the Bretton Woods agreement and the development of the Forex market as we know it today.

The Bretton-Woods Agreement which originated in 1944, fixed national currencies against the US dollar, and set the dollar at a rate of USD 35 per ounce of gold. In 1967, a Chicago bank refused to make a loan in pound sterling to a college professor named Milton Friedman, because he was planning to use the funds to short the British currency. The bank's refusal to grant the loan was due to the Bretton-Woods Agreement.

This agreement was intented to create international monetary stability by preventing money from taking flight across countries, thus preventing speculation in foreign currencies. Between 1876 and World War I, the gold exchange standard had reigned over the international economic system. Under the gold standard, currencies experienced an era of stability because they were supported by the price of gold.

However, the gold standard had one major weakness in that it created boom-bust economies. As an economy strengthened, it would import a great deal, running down the gold reserves that were required to support its currency. As a result, the money supply would diminish, interest rates would rise and economic activity would slow down to the point of recession.

In the end , prices of commodities would hit rock bottom, thus appearing attractive to other nations, who would then rush in to buy.  In turn, this would inject the economy with gold until it increased its money supply, thus driving down interest rates and once again restoring wealth.

Such boom-bust patterns were very ommon throughout the era of the gold standard, until World War I temporarily stopped trade flows and the free movement of gold.

The Bretton-Woods Agreement was created after World War II, in order to stabilize and regulate the international Forex market. Participating countries agreed to try to maintain the value of their currency within a narrow margin against the dollar and an equivalent rate of gold. The dollar gained a premium position as a reference currency, reflecting the shift in global economic dominance from Europe to the United States.

Countries were barred from devaluing their currencies to benefit export markets, and were only allowed to devalue their currencies by amounts less than 10%. Post-war construction during the 1950s, however, required great volumes of Forex trading as masses of capital were required.  This had a destabilizing effect on the exchange rates that were established in Bretton-Woods.

In 1971, the agreement was scrapped when the US dollar ceased to be exchangeable for gold. By 1973, the forces of supply and demand were in control of the currencies of major industrialized nations, and currency now moved more freely across borders. Prices were floated daily, with volumes, speed and price volatility all increasing throughout the 1970s.  New financial instruments, market deregulation and trade liberalization emerged, further stoking growth of Forex markets.

The explosion of computer technology that began in the 1980s accelerated the pace by extending the market continuum for cross-border capital movements through Asian, European and American time zones. Transactions in foreign exchange increased rapidly from nearly $70 billion a day in the 1980s, to more than $2 trillion a day 20 years later.

Basic Forex trading strategies

Basic Forex Trading Strategies - A look at the most common form of trading strategies and how they can benefit your Forex trading.

There are two basic strategies that are used when trading Forex, one is called Technical analysis and one is known as Fundamental analysis. Technical analysis is more often used by private traders than fundamental but in this articles we will look at both these methods and see how they each apply to Forex trading.

Fundamental Analysis

If you are of the opinion that establishing the value of a company is a difficult task, then imagine how difficult it is to decided what the value of a country is.

Using Fundamental analysis in the Forex market is very difficult indeed and is normally only done to predict long term trends. There are many private traders however that trade based on the latest news releases and this has been done with varying degrees of succes. There are a lot of fundamental indicators including ;

• Non-farm Payrolls
• Purchasing Managers Index (PMI)
• Consumer Price Index (CPI)
• See also our list of  Market Indicators  (go of the bottom of the page ) 

Retail Sales

It is important to realise that these are not the only reports that you need to be aware of. There are a number of meeting and announcements announcing inflation, interest rates and other issues that affect currency values. One of the really important meetings that you have to watch out for is the Federal Open Market Committee.

By simply reading these reports you can get a better understanding of long term market trends and profit in the short term by looking for special events as a good time to trade.

At eToro we provide our traders with the latest news and events so you will always be up to date with global happenings that can affect your trading.

Technical Analysis

Technical analysis in the Forex market is all about analyzing price trends.technical analysts of the FOREX trading market analyze price trends. Some of the most common forms of technical analysis used in FOREX are:

• The Elliott Waves
• Fibonacci studies
• Parabolic SAR
• Pivot points

A lot of technical analysts tend to combine technical studies to make more accurate predictions on your behalf. Others prefer to create trading systems in an effort to repeatedly locate similar buying and selling conditions.

Deciding on the strategy to use.

Most successful traders develop a strategy and refine it over a period of time. Some people will focus on one particular study or calculation, while still some others use broad spectrum analysis as a means of deciding which trades to make. Most experts are likely suggest that you try using a combination of both fundamental and technical analysis, with which you can make long-term projections and also determine entry and exit points. Of course, in the end, it is up to you, the individual trader to decide what works best for yourself..

When you are ready to try trading in the FOREX market, you should open a Free Demo account and practice until you can make a profit on a consistent basis. Many people who fail have a tendency to jump into the FOREX market and quickly lose a lot of money simple because of a lack of experience. It is important to take your time and learn to trade properly before you start committing resources.

You also need to be ale to trade without emotion and most importantly remember "The Trend is your Friend"

Economic Indicators

Economic Indicators - What are economic indicators and how can they help you make profitable trades ?

People trading in the foreign-exchange market (FOREX) rely on the same two basic forms of analysis that are used by those trading in the stock market: fundamental analysis and technical analysis. The uses of technical analysis in forex are much the same: the price is assumed to reflect all news, and the charts are the objects of analysis. But unlike companies, countries have no balance sheets, so how can someone conduct fundamental analysis on a currency?

Since fundamental analysis is all about looking at the intrinsic value of an investment, its application in forex means looking at the economic conditions that can affect the valuation of a nation's currency.

Economic Indicators

Economic indicators are reports that are released by either the government or a private organization that detail a country's economic performance. Economic reports are the means by which a country's economic health is directly measured.

These reports are released at scheduled times, providing the market with an indication of whether a nation's economy has improved or declined. The effects of these reports are comparable to how earnings reports, SEC filings and other releases may affect securities. In forex, as in the stock market, any deviation from the norm can result in large price and volume movements.

You may recognize some of these economic reports, such as the unemployment numbers, which are well publicized. Others, like housing stats, receive little coverage. However, each indicator serves a particular purpose, and can be useful. Below we outline four major reports, some of which are comparable to particular fundamental indicators used by equity investors:

The Gross Domestic Product (GDP)The GDP is considered the broadest measure of a country's economy, and it represents the total market value of all goods and services produced in a country during a given year. Since the GDP figure itself is often considered a lagging indicator, most traders focus on the two reports that are issued in the months before the final GDP figures: the advance report and the preliminary report. Significant revisions between these reports can cause considerable volatility. The GDP is somewhat analogous to the gross profit margin of a publicly traded company in that they are both measures of internal growth.

Retail SalesThe retail-sales report measures the total receipts of all retail stores in a given country. This measurement is derived from a diverse sample of retail stores throughout a nation. The report is particularly useful because it is a timely indicator of broad consumer spending patterns that is adjusted for seasonal variables. It can be used to predict the performance of more important lagging indicators, and to assess the immediate direction of an economy. Revisions to advanced reports of retail sales can cause significant volatility. The retail sales report can be compared to the sales activity of a publicly traded company.

Industrial Production
This report shows the change in the production of factories, mines and utilities within a nation. It also reports their 'capacity utilizations', the degree to which the capacity of each of these factories is being used. It is ideal for a nation to see an increase of production while being at its maximum or near maximum capacity utilization.

Traders using this indicator are usually concerned with utility production, which can be extremely volatile since the utilities industry, and in turn the trading of and demand for energy, is heavily affected by changes in weather. Significant revisions between reports can be caused by weather changes, which in turn, can cause volatility in the nation's currency.

Consumer Price Index (CPI)
The CPI is a measure of the change in the prices of consumer goods across over 200 different categories. This report, when compared to a nation's exports, can be used to see if a country is making or losing money on its products and services. Be careful, however, to monitor the exports - it is a focus that is popular with many traders because the prices of exports often change relative to a currency's strength or weakness.
Some of the other major indicators include the purchasing managers index (PMI), producer price index (PPI), durable goods report, employment cost index (ECI), and housing starts. And don't forget the many privately issued reports, the most famous of which is the Michigan Consumer Confidence Survey. All of these provide a valuable resource to traders, if used properly.

So, How Are These Used?
Since economic indicators gauge a country's economic state, changes in the conditions reported will therefore directly affect the price and volume of a country's currency. It is important to keep in mind, however, that the indicators discussed above are not the only things that affect a currency's price. There are third-party reports, technical factors, and many other things that also can drastically affect a currency's valuation. Here are a few useful tips that may help you when conducting fundamental analysis in the foreign exchange market:

• Keep an economic calendar on hand that lists the indicators and when they are due to be released. Also, keep an eye on the future; often markets will move in anticipation of a certain indicator or report due to be released at a later time.
• Be informed about the economic indicators that are capturing most of the market's attention at any given time. Such indicators are catalysts for the largest price and volume movements. For example, when the U.S. dollar is weak, inflation is often one of the most watched indicators.
• Know the market expectations for the data, and then pay attention to whether or not the expectations are met. That is far more important than the data itself. Occasionally, there is a drastic difference between the expectations and actual results and, if there is, be aware of the possible justifications for this difference.
• Do not react too quickly to the news. Oftentimes, numbers are released and then revised, and things can change quickly. Pay attention to these revisions, as they may be a useful tool for seeing the trends and reacting more accurately to future reports.

Conclusion
There are many economic indicators, and even more private reports that can be used to evaluate the fundamentals of forex. It's important to take the time to not only look at the numbers, but also understand what they mean and how they affect a nation's economy. When properly used, these indicators can be an invaluable resource for any currency trader.

Making profit from Forex

It doesn't take a financial genius to figure out that the biggest attraction of any market, or any financial venture for that matter, is the opportunity of profit. In the Forex market, profitability is expressed in a number of ways.

First of all, just to set the record straight, you don't have to be a millionaire to trade Forex. Unlike most financial markets, the Forex market allows you to start trading with relatively low initial capital. At eToro, you can start trading Forex with as little as $25!

Right about now you're probably asking yourself: "So how am I meant to make any serious money with such a low initial investment?" The Forex market has just the thing for you, because it allows you to use leveraged trading. Leveraged trading lets you open positions for tens of thousands of dollars while investing sums as small as $25. This means that Forex trading has the profit potential of tens and even hundreds of percent a day!

What is also unique about the Forex market is that any sort of movement is an opportunity to profit. Whether a currency is crashing or soaring, there is profit to be made, since you always have the option of buying or selling the currency of your choice. Unlike the stock market, you are not limited to speculating on rising stocks, and a falling market is just as good for business as a rising market.

Forex Trend

What is a Forex trend - Learn what a trend is in Forex

Trend analysis is based on the idea that what has happened in the past gives traders an idea of what will happen in the future.
Although this may seem pretty basic, being able to identify when a pair is in a trend and when it isn't will help you to increase your chances to profit consistently in the Forex market.
When you can identify a trend, you can estimate what direction the rate of a currency pair is going to go in. You should exploit the direction of the trend you identify by placing a trade in that direction.
If it's an uptrend, meaning that the rate is increasing, buying the currency pair will give you a better probability for profit. If it's a downtrend, meaning that the rate is decreasing, selling the currency pair will give you a better chance of making money.
How do I identify a trend? What are the characteristics of a trend?
The simplest way to identify a trend is through the distinct patterns that the price forms. These can tell you if the market is moving in an uptrend or downtrend.

What is leverage ?

What is leverage - The concept of leverage explained

If you've been at all exposed to the world of Forex you've probably heard the word "Leverage" being tossed around. But what exactly is "Leverage"?
Leverage is a very important part of Forex trading, and it's critical that you know exactly how it works and how to use it. It is the term Forex traders use to refer to the ratio of invested amount related to the trade's actual value.
Online brokers usually provide their customers with the option to trade on borrowed capital, so that traders don't have to invest tens of thousands of dollars to make any real profit. When you trade at a leverage of 1:100, or X100, it means that for every $1 that you invest in the market, the broker invests additional $99. As a result, you can control an amount of $10,000 by investing $100. eToro provides traders with the opportunity of trading at up to 1:400 leverage.
It probably won't surprise you when we say that with greater opportunity for profit comes greater risk. Just like slight fluctuations in currency rates can make you significant amounts of money, it can also cause you to lose your money very quickly. The higher the leverage, the larger the profit that you stand to make and the quicker you might lose your investment. A leverage of 1:400 can make you more money than a leverage of 1:100, but it also puts your initial investment at more risk.

How to use leverage ?

How to use leverage - The use of leverage in forex trading explained

If you trade with a leverage of 1:100 the market would have to move 100 points against you for your position to be wiped out. On the other hand, if you trade with a leverage of 1:400 the market would only have to move 25 points against you for your position to be wiped out.
We recommend first opening a position with a low 1:100 Leverage, and only once you see that you've hit a strong trend, consider opening one with a 1:400 leverage.

Minimal leverage

The Ratio between Minimal Lot Size, Trade Size and Leverage
Fundamentally, the minimal lot size for a trade is $10,000, thus the leverage limitations are set according to the amount you choose to trade:

Trade Size	Minimal Leverage	Lot
25	400	10,000
50	200	10,000
100	100	10,000

The advantage of trading with Leverage is that while your profits potential is virtually infinite, at eToro the maximum amount you can lose on a trade is limited to the initial investment of the trade. (With the rare exception of extreme market conditions) Once the rate drops below the rate covered by your investment, the trade is automatically closed. That is done through an automatic Stop Loss – explained in the next chapter.

Forex Options Trading

Forex Options Trading - Learn the basics of Forex Options Trading

Forex options are a great tool in online forex trading. It helps you deal with volatility gives you the advantage of staying power. The hardest decision isn’t deciding if a currency will go the distance, your hardest choice is where to put your “stop”. Options solve this issue by giving you staying power. Options can be an essential part of online forex trading, this is a must learn to add to your strategies.
Options are not as complex as most people think.
There are two basic kinds of options. 1) known as “Call” option, and 2) “Put” option. “Call” options allow the owner of the option to buy and “Put” options allows the owner to sell. The risk is manageable since all you will tend to lose is the price of the option in the first place. In other words as long as your price is in the rising market and below if it’s in the falling market you can make a profit. Have you ever been stopped by short term volatility and then in the next breath it shoots back up, making a killing but you weren’t in it. Getting the long term trend is simple, weighing out the risk in the short term is the tricky part. You need the trend without the short term risks.
Online forex trading is a constant 24 hr volatile environment with trillions of dollars being exchanged daily. The key to a sound forex trading system is being profitable in options trading. eToro gives you a clear visual picture of the playing field lowing you to use different strategies like the “Butterfly Spread”, this help traders gain huge profits on currency price when the option expires and you are close enough to the closing price.
Another solid strategy is an “Iron Condor” allowing you to keep hold of short options with a variety of strike prices, adding to your potential profit. The “Straddle” system gets you to sell a call putting your option at the exercise price, when the option closes and you are close enough to the exercise price, it will be money in the bank. Keeping a close eye on the market is vital to these strategies. Luckily witheToro visual pictures and forex arenas, this task has been made far simpler. Allowing you to see real time what the “Money Options” are or if you are the more risky trader buying the long shot options in the hopes of making a big score. A basic rule of thumb is not to buy options with less than 3 months on the clock, limiting your time, means the more the value could have decreased.
Online forex trading and options trading is addictive, so be sure to have a solid strategy and always check to ensure the strategy is suited for you. Whatever your trading style forex options is indeed a profitable venture

Market Indicators

World events affect the Forex Market. Or rather, world events affect supply and demand forces, which in turn affect the Foreign Exchange market.

Keeping up to date with what is happening in the world is essential if you want to be a successful trader. We continually see that the Foreign Exchange market undergoes movements soon after major news and/or economic reports are released. The size of the country determines the amount, and the frequency of its news/reports releases, and therefore, it may be more useful (especially when you first start trading) to trade currencies of economies that have plenty of releases (such as, for example: USD, EUR, JPY, GBP, CHF).

Useful Information:

Always Remember that if a country has a strong performing economy then its currency will also be stronger. The performance of a country's economy can be affected by high employment levels, retail sales, capacity utilization, and gross domestic product. It is also affected by low government deficits and by small fluctuations in inflation.

To learn more about a country's economy look for reports on: (examples below are from US economy)

• Employment Growth
• Gross Domestic Product (GDP)
• Trade Balance
• Interest Rate decisions
• Retail Sales
• Durable Goods
• Inflation reports
• Foreign Purchases report (TIC Data)

What do these reports mean?

Employment:

US: Jobless Claims is released weekly and it measures how many people filed for unemployment insurance for their first time. The less people have applied, the better the economy is doing, because unemployed people tend to spend less money, which has a bad effect on the nation’s economy.

US: Nonfarm Payrolls is released monthly and it measures the number of new jobs created (it excludes the farming industry). The more new jobs, the stronger the nation’s currency is, because the more people work, the more money they earn, the more money they are likely to spend.

Consumption:

Core PCE Price Index: measures the rate of inflation experienced by people; it reflects the price change in consumer goods and services (it excludes Food and Energy). Large price changes have a negative effect on the economy, because they introduce uncertainty, and uncertainty inclines people to spend less.

Retail Sales: is released once a month and measures the value of retail sales. A rising trend means that the nation’s economy is growing stronger, because it means that people are spending more.

GDP (Gross Domestic Product) Annualized: measures the value of all goods and services that are produced by the nation’s economy. A rising trend means that the nation’s economy is growing stronger. It encourages people to invest in the domestic stock and bond markets, and because it attracts foreign investors.

Trade Balance: measures the value of the difference between imported and exported goods and services. A positive trade balance means that more goods and services were exported than imported. A rising trend means that the nation's currency is growing stronger, because the higher the demand for exports, the higher the employments and production rates in the exporting country. This usually means that foreigners will convert their currencies to purchase the currency of the exporter.

CPI—Consumer Price Index In simple terms, CPI measures the increase of price in a fixed basket of goods and services (such as food, transport, housing etc’). Higher CPI means that the price of the basket has increased and it now costs more to buy the same basket of goods. A rising trends has a positive effect on the economy (and consequently on the currency), for it reflects that people are able to purchase the goods and services despite the price increases.

Real Estate:

US: Pending Home Sales: measures activity in existing (not new) home sales. This includes single-family homes, condos and co-ops. The higher the demand for housing, the better the economy is doing, because people must feel comfortable enough in order to invest in homes. Also, such investments are usually accompanied by purchases—electronic equipment, furniture—and revenues for realtors, both which are good for the economy.

US: Housing Starts measures how much construction began on new residential buildings. The higher the number, the better that nation’s currency, because it indicates that the construction industry is healthy and that people are investing in it.

Manufacture:

US: ISM Mfg Index measures the activity of purchasing managers in the manufacturing sector. A rising trend means that the nation's currency is growing stronger, because purchasing managers are good indicators; they have access to a company’s performance, which oftentimes goes hand in hand with overall economic performances.

US: Industrial Production measures the value of output produced by factories, mines, and utilities. A rising trend means that the nation's currency is growing stronger, because high values indicate that much is being manufactured and sold, and hence that people earn and spend money.

Euro: Producers Price Index examines differences in the selling prices of goods and services within Euro-zone producers. Since producers tend to increase retail prices as a result of higher production costs, PPI may be counted as an indicator for inflation. A higher PPI may result in higher interest rates determined by the European Central Bank. A falling PPI points at declining prices, hence a hint on upcoming economic recession.

Rate Announcements:

GB: GBP: BOE Announcement — the Bank of England (BOE) Monetary Policy Committee (MPC) votes every month on where to set the nation's short-term interest rate.

EU: EU:ECB Announcement — the European Central Bank (ECB) Governing Council votes every month on where to set the union’s short-term interest rate.

US: FED Announcement — the Federal Open Market Committee (FOMC) votes eight times a year.

Shortly after each vote, the outcome is released (the BOE Announcement; the EU:ECB Announcement, and the FED Announcement). It is accompanies by a brief commentary on the economic conditions that effected the outcome. Interest rates depend mostly on inflation. The objective is to keep prices stable, so when inflation rises above an annualized rate of 2%, banks will usually raise interest rates as to bring prices down. High interest rates attract foreign investors, hence, they increase the demand for that nation's currency. This is to say that a rising trend in interest rates has a positive effect on the nation's economy.

FOMC Meeting Minutes:
The Federal Open Market Committee (FOMC) Meeting Minutes give people insight into the decision that have been made with regard to interest rate and policy shifts.

Surveys:

DE: ZEW (Zentrum für Europäische Wirtschaftsforschung) Survey provides the opinions of financial experts with regard to economic outlook for Europe. Every month the difference between investors that expect a growth in the economy and those that expect a decline is measured. .

US: Chicago PMI measures the health of the Chicago business environment. Every month purchasing managers respond to a survey with regard to their organization's activity (whether it is higher than, the same as, or lower than it was in the previous month) in terms of output, purchases, employment, inventories, orders, and prices.

NET TIC—Treasury International Capital (TIC) Reviews the flow of money market funds (such as stocks, bonds etc’) to and from the United States. The key figure, expressed in millions of dollars, represents the difference between American spend of foreign securities and foreign spend of American securities. This is a major indicator of the American economy and gives insight into foreign demand for American investments and dollars. For example, if the US purchased $5 billion in US securities and foreigners purchased $20 billion in long-term US securities, then the net reading would be $15 billion.

Some extra points to note:

• In general it can be noted that news release that follow expected reports do not result in strong market movements.
• The Difference between the market expectations and the news release may result in market volatility which in turn may lead to a developing trend in a specific direction.
• These kinds of opportunities are usually short-lived and may last for only a few minutes or as little as a few seconds.
• Markets that see constant movements occur will generally not be as strongly effected by a news release.

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