BMW E36 Models

Each model is followed by its particular engine code.

Non-US Models :

Sedans :
316i (1990-1993) M40B16
316i (1993-1998) M43B16
318i (1990-1993) M40B18
318i (1993-1998) M43B18
318iS (1992-1996) M42B18
318iS (1996-1998) M44B19
318tds (1994-1998) M41D17
320i (1991-1994) M50B20
320i (1994-1998) M52B20
323i (1995-1998) M52B25
325i (1991-1995) M50B25
325td (1991-1998) M51D25
325tds (1993-1998) M51S
328i (1994-1998) M52B28
M3 (1997-1998) S50B30
M3 Evo (1995-1998) S50B32

Coupes :
316i (1993-1998) M43B16
318is (1992-1996) M42B18
318is (1996-1999) M44B19
320i (1992) M50B20
320i (1992-1998) M52B20
323is (1995-1999) M52B25
325is (1992-1995) M50B25
328i (1995-1998) M52B28
328is (1995-1999) M52B28
M3 (1992-1995) S50B32

Convertibles (Cabriolets) :
318ic (1994-1998) M43B18
320ic (1993-1994) M50B20
320ic (1994-1998) M52B20
325ic (1993-1994) M50B25
328ic (1995-1998) M52B28
M3 (1994-1996) S50B30
M3 (1996-1998) S52B30

Touring (Wagons) :
316iT (1998) M43B16
318iT (1995-1998) M43B18
318tds (1995-1998) M41D17
320iT (1995-1998) M52B20
325iT (1996-1998) M52B25
325tds (1995-1998) M51S
328iT (1995-1998) M52B28

Compact :
316i (1994-1998) M43B16
318tds (1995-1998) M41D17
318ti (1994-1996) M42B18
318ti (1996-1998) M44B19
323ti (1996-1998) M52B25

US/Canada Models :

318i, 318is, 318ic (1992-1995) M42B18
318ti (1994-1996) M42B18
318i, 318ti (1996-1998) M44B19
323i, 323is, 323ic (1996-1998) M52B25
325i, 325is, 325ic (1992-1995) M50B25
328i, 328is, 328ic (1996-1998) M52B28
M3 (1995-1999 coupe, 1997-1998 sedan, 1998-1999 convertible) S50B30US and S52 (1996-1999) .

BMW E36

The E36 automobile platform was the basis for the 1991-1999 BMW 3 Series entry-level luxury car / compact executive car. It was the successor to the BMW E30 and was eventually replaced by the BMW E46 in 1999. However, because the E46 series 2-door coupes and convertibles were still being developed at the outset of its introduction, BMW continued to produce these models as E36 versions through the 1999 model year. The M3 was produced as an E36 from 1995-1999 in the US, and 1993-1999 in the European market.
The E36 was introduced in late 1990 (1991 model) for Europe and as a 1992 model for US and Canada.
E36 experienced enormous success in the market. It laid strong foundations for the success that the BMW E46 experienced in subsequent years. The E36 is considered the performance benchmark in its class.

BMW S14 Engine ///Mpower

The BMW S14 is a 2.3 L (2302cc) DOHC 16-valve I4 piston engine. It was used in the E30 M3. The S14 is essentially a BMW M10 engine block with a M88/S38 DOHC cylinder head (minus two cylinders). It has four separate throttle bodies. It developed 195 PS (143 kW/192 hp), or 200 PS (147 kW/197 hp) without a catalytic converter. A special tuned model, the S14 EVO producing 20 PS more. The 2.3 L version has a 93.4 mm bore and 84mm stroke.
Variations of this engine included a limited-edition 2.5 L (2467 cc) Sport Evo for motorsport homologation requirements, and a de-bored (89 mm) version for the 320is, a more affordable sports model made specifically for the Portuguese and Italian markets. The 320is can be quickly distinguished from the E30 M3 by the absence of flared wheel arches.

S14 - Straight 4 DOHC 16V Solid Lifter Valvetrain and Individual Throttle Bodies. 1987-1991. 106kg 234lbsUsed in the E30 M3 and Italian only E30 320is. 2.5L used in Sport Evo III2.0L (195bhp) 2.3L (192-215bhp), 2.5L (238bhp)

BMW E30 6 cylinder Engines

The straight-6 (also inline-6, I-6, or I6) is an internal combustion engine with six cylinders aligned in a single row. The name slant-6 is sometimes used when the cylinders are at an angle from the vertical.
Usually a straight-6 was used for engine displacements between about 2.5 and 4.0 L. It was also sometimes used for smaller engines but these, although very smooth running, tended to be rather expensive to manufacture and they were inevitably physically longer than alternative layouts. The smallest production straight-6 was found in the Benelli 750 Sei motorcycle, displacing 747.7 cc (0.75 L / 45.6 cu in). The largest are used to power ships and have displacements of 1,000 L or more.
Straight-6 engines were historically more common than V6s, mainly because the length of such engines was not such a concern in rear wheel drive vehicles, but also because V6s (unlike the crossplane V8) of the time were difficult to run smoothly. The widespread use of front-wheel-drive and transverse engine ("east-west") configurations in smaller cars saw that the shorter engine length of the V6 became highly desirable, and currently most six-cylinder engines are made in the V configuration.

M20 - Straight 6 cylinder SOHC 12V. Baby Six. 1977-1992. 117kg 258lbsUsed in E21 320, E21 320i/6, E28, E30, E34, E21/30 323i, E30 325e and E28 528e2.0i (129bhp), 2.3i (143bhp), 2.5i (170bhp), 2.7e (125bhp)

BMW E30 4 cylinder Engines (3)

BMW M42 :

The BMW M42 is a DOHC 16-valve I4 piston engine first built for the E30 318is 1989 year model. The engine block is based on the BMW M40, used on the 318i, but had distinctive features such as double overhead cams driven by a timing chain, hydraulic valve lifters, and an increased 10:1 compression ratio.
Profile gaskets on M42s built before 1993 are known to fail prematurely.
Models
Engine
Displacement
Power
Torque
Redline
Year
M42B18
1.8 L (1796 cc/109 in³)
100 kW (136 ps) @ 6000
172 N·m (127 ft·lbf) @ 4600
6500
1989
103 kW (140 ps) @ 6000
175 N·m (129 ft·lbf) @ 4500
6300
1992

M42B18:
Displacement for the M42B18 was 1.8 L (1796 cc). E30 318iS, 318i (in the U.S.; European versions of the 318i were fitted with the M40 engine), and early E36 318iS/318ti (prior to 1992) models were fitted with versions producing 100 kW (134 HP) and 172 N·m (127 ft·lbf). Later, change in the overhead cam design helped to achieve 103 kW (138 HP) and 175 N·m (129 ft·lbf) coping with the increased weight of the E36 models. The engine uses Bosch M1.7 fuel injection.
The M42 makes for a nice engine swap for 2002's and E21's. It makes for a relatively inexpensive swap, and makes more power than the M10's while still being lighter, plus it uses modern EFI and direct-ignition and a much improved valvetrain.
Applications:
1989-1991 E30 318iS/U.S. model 318i
1992-1996 E36 318i/318iS/318ti
1993-1995 E36 318i - (Produced in South Africa for South African market only).




M42 - Straight 4 cylinder DOHC 16V. 1989-1996. 100kg 220lbsUsed in E30 and E36 318is, Z31.8 (138-142bhp)

BMW E30 4 cylinder Engines (2)

BMW M40 :

The BMW M40 is an I4 piston engine. Engine displacement ranges from 1600cc to 1800cc.
Models
Engine
Displacement
Power
Torque
Redline
Year
M40B16
1.6 L (1596 cc/97 in³)
75 kW (101 hp) @ 5500
143 N·m (105 ft·lbf) @ 4250
6200
1988
73 kW (98 hp) @ 5500
141 N·m (104 ft·lbf) @ 4250
6200
1988
M40B18
1.8 L (1796 cc/109 in³)
85 kW (114 hp) @ 5500
165 N·m (122 ft·lbf) @ 4250
6200
1987
83 kW (111 hp) @ 5500
162 N·m (119 ft·lbf) @ 4250
6200
1987

M40B16:
The M40B16 is a 1.6 L (1596cc) version of the M40 producing 102 hp of mechanical power and 105 ft. lbf of force using Bosch M1.3 fuel injection.
Applications:
1988–1995 E30 316i
1990–1994 E36 316i

M40B18:
The M40B18 is a 1.8 L (1796cc) version of the M40 producing 115 hp of mechanical power and 165 ft. lbf. of force. Like the M40B16, it also uses Bosch M1.3 fuel injection.
Applications:
1987–1995 E30 318i
1988–1994 E34 518i
1992–1993 E36 318i

M40 - Straight 4 cylinder SOHC 8V. Replaced the M10. 1987-1993. 81kg 178lbsUsed in post 87 E30 316i/318i, E34 518i, Pre 93 E36 316i1.6 (102bhp), 1.8 (122bhp)

BMW E30 4 cylinder Engines

BMW M10 :

The BMW M10/M12 was an I4 piston engine produced from 1961 to 1987. Displacement ranged from 1499 cm3 to 1990 cm3.
The engine was designed by noted engineer and race driver Baron Alex von Falkenhausen. He was asked to design a small-displacement (1.3 L) engine, but felt that this would be insufficient for the company's future needs. Therefore, he designed a block that could be expanded to 2.0 L and delivered it at 1.5 L.
The design was very successful, with over 3.5 million produced, and it served the company for over 20 years.
The M10 engine is also one of the most successful engines in racing. Starting with the European Touring Car Championship, it was also used in Formula 2, then the Deutsche Rennsport Meisterschaft, where it was turbocharged by Paul Rosche according to FIA Group 5 rules.
The M10 block went on to Formula 1, winning the 1983 championship for Nelson Piquet and Brabham — something which very few 20 year old road car engine designs accomplish. The same applies for the rise in power: twenty-fold from 75 hp to about 1500 hp.
The BMW S14 engine for the first BMW M3 was based upon the M10 block. In the M3, the M10 is still winning races today.
The BMW M40 series of engines replaced the M10 in the late 1980s.



Models
Engine
Displacement
Power
Torque
Redline
Year
M10B18
1.7 L (1766 cc/107 in³)
77 kW (103 hp) @ 5800
145 N·m (106 ft·lbf) @ 4500
1980
M10B18
1.7 L (1766 cc/107 in³)
75 kW (100 hp) @ 5800
140 N·m (103 ft·lbf) @ 4500
1985
M10B18
1.7 L (1766 cc/107 in³)
77 kW (103 hp) @ 5800
145 N·m (106 ft·lbf) @ 4500
1980
M10B18
1.7 L (1766 cc/107 in³)
75 kW (100 hp) @ 5800
140 N·m (103 ft·lbf) @ 4500
1985
M10B18V
1.7 L (1766 cc/107 in³)
66 kW (88 hp) @ 5500
140 N·m (103 ft·lbf) @ 4000
1981
M10B18V
1.7 L (1766 cc/107 in³)
66 kW (88 hp) @ 5500
140 N·m (103 ft·lbf) @ 4000
1981

M10 - Straight 4 cylinder SOHC 8V. 1966-1987. 83kg 180lbsUsed in 1502, 1600-2, E21 316/318i/320-4, E30 316, 2002, 2002ti, 2002tii and 2002 turbo1.5 (75bhp), 1.6 (85bhp), 1.8 (90-98bhp), 2.0 (100bhp), 2.0ti (120bhp), 2.0i (125bhp), 2.0tii (130bhp), 2.0turbo (170bhp)

BMW E30 Engines

Following on from the E21, the E30 was fitted with M10 4cyl and M20 straight six engines. The 316 used a 1766 cc M10 fed by a carburettor and producing only 66 kW but this allowed BMW to offer a cheap entry level car in the range. The 318i used the same M10 but with Jetronic injection, pushing power to 77 kW/103 hp and improving economy. Finally the 320i (2.0 M20 with 92 kW/125 hp) and 323i (2.3 M20 with 102 kW/139 hp) completed the range.
Later, a 2.5 version of the M20 boosted the power of the top model to 120 kW/168 hp.
In 1988 the E30 was revised. The revision contained two significant changes in the engine department. First, the M20 straight six motors changed from Bosch Jetronic to Bosch Motronic. This boosted the 320i to 95 kW and the 325i to 126 kW/172 hp, all the while improving the economy, especially on the 320i. The M10 was replaced by the new belt-driven cam M40 which also incorporated Motronic injection. The new 318i now had 85 kW/114 hp and was noticeably smoother than the old 77 kW/103 hp version. The 316 was replaced by a 316i, which used a 1600 version of the M40 producing 75 kW/100 hp. Not quite as torquey as the 66 kW/88 hp 1800 M10 it replaced, it nevertheless offered superior performance. In some markets, like South Africa, the old M10 powered 316 continued a lot longer, gaining the new bumpers of the other models. In South Africa, fans had to wait till 1991 for the 316 to make way for the 316i.

BMW E30 basic

The E30 automobile platform was the basis for the 1982 through 1991 BMW 3 Series entry-level luxury car / compact executive car. It was the successor of the BMW E21 in 1982 and was replaced by the BMW E36 in 1992. BMW continued to produce the cabriolet (convertible) E30 well into 1993. The M3 cabriolet was never officially offered for sale in North America; it was offered only for the European market.
The famous BMW M3 was first introduced on the E30 platform. A widened version of the E30 front suspension and the drivetrain from the E30 325i were used in the BMW Z1 roadster.
The E30 3-Series was produced in four body styles, a four door saloon, a two door coach, a five door estate (marketed as the "touring"), and a two door convertible. A Baur cabrio was also available. The 325ix was produced from 1988 to 1992, and featured all-wheel drive. It was available as a two-door (coach) or a four-door (sedan). The BMW M3 utilised a widened and heavily redesigned and restyled variation of the 2 door body style. The M3 shares few parts with other E30 models.
The primary distinctive feature of the BMW E30 models produced for the North American market in 1984-1987 are the elongated front/rear anodized aluminum bumpers. These bumpers are commonly known as "diving boards." In 1988, the anodized aluminum bumpers were shortened by revising the cover/fillers and shortening the shocks. In 1989 the anodized aluminum bumpers were finally replaced with shorter body-color plastic bumpers. The later model plastic bumper can fit onto a 1988 E30 without any modifications. This is not the case with E30s older than 88. The original chrome bumpers can be tucked in by draining the bumper shocks and compressing them to shorten the bumper. This, however, in the event of a collision, removes the ability of the shocks to absorb impacts and transfers the force directly to the chassis, which is more likely to cause serious damage even in low-speed scenarios.
The cars were powered by a range of inline 4 cylinder (BMW M10 , BMW M40 , & BMW M42) and inline 6 cylinder (BMW M20 and BMW M21) engines, with both petrol and diesel power. Power output for the engines ranges from 140 N·m (103 lbf·ft) torque for the 1.8 L (1766 cc) 4 cylinder engine, to 230 N·m (170 lbf·ft) torque from the 2.7 L (2693 cc) 6 cylinder petrol engine. The E30 BMW M3 was fitted with a 4 cylinder engine (BMW S14) producing more power, but less torque.

BMW E30 basic

The E30 automobile platform was the basis for the 1982 through 1991 BMW 3 Series entry-level luxury car / compact executive car. It was the successor of the BMW E21 in 1982 and was replaced by the BMW E36 in 1992. BMW continued to produce the cabriolet (convertible) E30 well into 1993. The M3 cabriolet was never officially offered for sale in North America; it was offered only for the European market.
The famous BMW M3 was first introduced on the E30 platform. A widened version of the E30 front suspension and the drivetrain from the E30 325i were used in the BMW Z1 roadster.
The E30 3-Series was produced in four body styles, a four door saloon, a two door coach, a five door estate (marketed as the "touring"), and a two door convertible. A Baur cabrio was also available. The 325ix was produced from 1988 to 1992, and featured all-wheel drive. It was available as a two-door (coach) or a four-door (sedan). The BMW M3 utilised a widened and heavily redesigned and restyled variation of the 2 door body style. The M3 shares few parts with other E30 models.
The primary distinctive feature of the BMW E30 models produced for the North American market in 1984-1987 are the elongated front/rear anodized aluminum bumpers. These bumpers are commonly known as "diving boards." In 1988, the anodized aluminum bumpers were shortened by revising the cover/fillers and shortening the shocks. In 1989 the anodized aluminum bumpers were finally replaced with shorter body-color plastic bumpers. The later model plastic bumper can fit onto a 1988 E30 without any modifications. This is not the case with E30s older than 88. The original chrome bumpers can be tucked in by draining the bumper shocks and compressing them to shorten the bumper. This, however, in the event of a collision, removes the ability of the shocks to absorb impacts and transfers the force directly to the chassis, which is more likely to cause serious damage even in low-speed scenarios.
The cars were powered by a range of inline 4 cylinder (BMW M10 , BMW M40 , & BMW M42) and inline 6 cylinder (BMW M20 and BMW M21) engines, with both petrol and diesel power. Power output for the engines ranges from 140 N·m (103 lbf·ft) torque for the 1.8 L (1766 cc) 4 cylinder engine, to 230 N·m (170 lbf·ft) torque from the 2.7 L (2693 cc) 6 cylinder petrol engine. The E30 BMW M3 was fitted with a 4 cylinder engine (BMW S14) producing more power, but less torque.

Learn Forex Trading to Expand Opportunities

Capitalize on the opportunity to learn forex trading so you can begin the process of branching your portfolio out of domestic stocks and into the global market. Any financial advisor worth his weight will tell you that it is important to diversify your investment portfolio and this is by far the largest volume market in the world. Daily, it does nearly four times the volume of trading than the New York Stock Exchange does. Anyone who holds a basic understanding of how money is converted and exchange rates work can learn forex trading. The sale or trading of currency is at the heart of what forex is. Using one currency to buy another means that your counterpart is using their currency to buy yours. As exchange rates fluctuate and the economies of nations surge and recede, these investments in cash behave in value very much like a traditional stock. As with any new venture, you will need to master the vocabulary that is an inherent part of forex. When you begin to learn forex trading you will be introduced to terms like pip, spread, cross, base currency and trade currency. Foreign exchange trading does have some unique terminologies. While they may be new to you, you will learn them quickly because they describe certain parts of forex quotes that you will need to understand in order to trade. There are quite a few resources available to those who wish to learn forex trading. The reliability of internet access has opened the door to online forex trading, which means that more investors have the ability to participate in trading activity. Since the foreign exchange trade is considered a spot market, the ready availability of internet access is crucial. Business is done on the "spot," thus the name. You can capitalize on many benefits when you learn forex trading. The availability of a 24-hour a day market is one. Since forex involves the trade of currency at banks across the globe, the market never closes. The market is also remarkably liquid, meaning that you will never have trouble finding trading partners. Since most of your trading partners are banks and the medium is cash, you will never be at a loss for customers. Another benefit is the lack of commissions. Since you make the trades on your own, you don't have to spend part of your profit on brokerage commission fees. Taking the time to learn forex trading opens one more investment door for you. As you continue to realize the importance of diversifying your investment portfolio, it may be a good idea to begin looking at what kinds of opportunities are available to you in foreign exchange trading. You may be surprised to see who else is capitalizing on this market and just how easy it is.

How to Find a Broker for the FOREX Trading Market

It's not always easy to know what to look for in a broker in any market, much less a market as complex as the FOREX. But, if you want to trade in FOREX you need a broker. While it might be tempting to simply ask the brokers what they can do for you, you can't always depend on them to give you a straight answer. Here are a few things to consider when choosing your broker. You will want a broker that has low spreads. Since FOREX brokers don't charge a commission, this difference is how they make money. Low spreads will save you money. Along with this, you should be looking for a broker attached to a reputable institution. Unlike equity brokers, FOREX brokers are usually attached to large banks or lending institutions. The broker should also be registered with the Futures Commission Merchant (FCM) as well as regulated by the Commodity Futures Trading Commission (CFTC). Once you've narrowed your choices down to brokers that won't cost you too much, and that are reputable, consider the trading tools that they are offering you. FOREX brokers have many different trading platforms for their clients, just like brokers in other markets. These often show real-time charts, technical analysis tools, real-time news and data, and may even offer support for the various trading systems. Before you commit to any one broker, request free trials of their tools. Brokers generally provide technical as well as fundamental commentaries, economic calendars, and other research to help you make good trades. Shop around until you find a broker who will give you what you need to succeed. The next item that you will need to evaluate carefully is the number of leverage options your potential broker has. Leverage is a necessity in FOREX trading because the price deviations in the currencies are set at fractions of a cent. Leverage is expressed as a ratio between the total capital that is available to be traded and your actual capital. For example, when you have a ratio of 100:1, your broker will lend you $100 for every $1 of actual capital you have. Many brokerage firms will offer you as much as 250:1. If you have low levels of capital you will need a brokerage with high levels of leverage to make reasonable profits. If capital is not a problem, any broker that has a wide variety of leverage options would be a good choice for you. A variety of options will let you vary the amount of risk you choose to take. For example, less leverage (and therefore less risk) may be preferable if you are dealing with highly volatile (exotic) currency pairs. Along with different levels of leverage, look for brokers that offer different types of accounts. Many brokers will offer you two or more types. The smallest account is known as a mini account and it requires you to trade with a minimum of around $300. The mini account also generally offers a high amount of leverage. The standard account allows you to trade at a variety of different leverages, but it requires minimum initial capital of $2,000. And finally, there are premium accounts, which often require significant amounts of capital. They also generally have different levels of leverage available to the traders who use them, and often offer additional tools and services. You will need to make sure that the broker you choose has the right leverage, tools, and services for the amount of capital that you are able to work with.

Forex Trading

Forex trading, or foreign exchange current exchange trading, is a global phenomenon. This is the single largest market in the world. There are many different market sectors that are involved with Forex trading. These include, but are not limited to; " Banks" Corporations" Governments" IndividualsWhat is Forex trading you ask? At its simplest, Forex trading is currency being traded for another currency. However, Forex trading is anything but simple. The market has massive trade volume and is very fluid. Not to mention the hundreds of different currencies being traded and their ever changing value.Forex trading is a very focused area of trading, but the amount of time andenergy most people and companies spend getting trained and educated on Forex trading and its inner workings and pitfalls, is at least as much time as it takes to learn the stock market.Because of the complexity, Forex Trading is not your typical overnight success operation. There are many large corporations, such as GCI Financial which is a market leader in this space.Forex trading is unique in that everyone does not have access to all of the same information and prices at the same time, as they do with the stock market. I won't get into specifics here, but basically there is a tiered level whereby different levels of access are given to the Forex traders and Forex firms.The other main thing to remember about Forex trading is, until such time that the world adopts a single currency, Forex Trading will be around for a very long time.

A Look at Online Forex Brokers

An online forex broker is a firm that facilitates retail trading using Internet technologies. Global Forex Trading (GFT), one of the popular online forex brokers. It provides retail traders with a free demo trading account, allows users to open a live account, gives live help, provides software called DealBook FX 2, and allows viewing of account documents. (DealBook FX 2 can be downloaded for the demo trading account).Gain Capital Group's Online Forex offers 200:1 leverage. In some cases, the total return on investment is higher due to leverage. For example, with $1000 cash in a margin account, the investor can control up to $200,000 in notional value. Of course, trading on leverage magnifies both the investor's profits and losses. GCI Financial Ltd. offers commission-free online trading in forex. GCI offers Internet trading software, fast and efficient execution, and 0.5% margin requirements. This broker offers USD or Euro denominated trading accounts. The spreads are 3 pips in EUR/USD and USD/JPY, and are 4 to 5 pips for other major commissions. Clients can hedge by opening positions in the same currency in opposite directions. Risk to the investor is limited to the deposited funds. Market analysis and research, real-time charts, and forex trading signals are available at no charge.ACM, part of the REFCO group, offers 3 pip spreads on all major currencies, which works out to between 0.02% and 0.03% on the dollar value. They also offer commission-free trading, and forex trading with a 1% margin, which means that a trader can control $1,000,000 with $10,000 in his account.There are many online forex brokers that offer free demo accounts for potential forex traders to practice trading. It is only a matter of registering and starting demo trading to get a feel for forex trading. In addition, at most sites, traders can find free forex news to assist them with their trade strategies.

Why Trade the Forex Market

Trading the Forex market has become very popular in the last years. Technology advances like the internet have spawned this new trading craze, where anyone with a secure internet connection prepared to undertake a small amount of training can engage in trading foreign exchange on the forex market. Before the Internet, only corporations and wealthy individuals could trade currencies in the Forex market through the use of proprietary trading systems of banks, often through private banking. The foreign exchange market is one of the largest in the world if not the largest. It is more than 3 times larger than the stock/equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility. It has been estimated that approximately $2 trillion USD of currency exchanges hands each and every day. The foreign currency markets are very liquid because worldwide, the most powerful international banks provide a market around the clock. The Global foreign exchange market daily averages of the Bank for International Settlements in 1998 were $660 billion and now have increased to $2.3 trillion (2006). There is really no insider information in the forex markets. Since exchange rates are calculated by actual money flow as well as by the outlook of financial flowage, which takes into consideration such things as inflation, GDP changes, trade and budget deficits and surpluses, as well as interest rates, it would be difficult to come across so-called 'insider information'. All of these factors are self-evident, though different projected outlooks may prove more accurate than others. There is less room for market manipulation is there may be for thinly traded stocks. A equally important property of forex market is the fact that trends in forex market last longer and are more clearly defined than in any other trading instrument. Analysis of forex market charts also often displays identifiable chart patterns of price movement and once a pattern is established, the trend or pattern becomes the most probable course of future price action until the market changes. Because the FOREX market is so huge, there is no possibility of someone controlling the market price for a long time. When there are a lot of buyers and a lot of sellers, you can expect to buy or sell at a price that is very close to the last market price. The market maker in the forex market is usually a bank or brokerage company that provides during the trading day a bid and ask price. Example of forex market makers include CMS Forex, GFS, Forex, Forex Capital Markets (FXCM), and Global Forex Trading, all of which are regulated by the Commodity Futures Trading Commission (CFTC) of the USA. Brokers offer clients access to online FX trading system, platform or software that can make it easy and fun to trade the market and usually there are usually no commission charges. With these trading systems and platforms you can trade the forex markets for free using the same state-of-the-art software packages that professional Forex traders use to help them make real-time, live currency trades. So individuals with a few hundreds of their own currency hope to buy and sell something for a smiling profit. Speculators trade to make a profit by purchasing one currency and simultaneously selling another. In conclusion I think the FOREX market is one of the best investment opportunities around today. There are great opportunities in the FOREX market because of the constant movements of the exchange rates. There is no surprise that more and more traders are turning to the foreign currency market to take advantage of the fluctuation in exchange currency rates as a way to speculate and trade to increase their capital and wealth.

Unique Commodity Trading Strategies To Survive And Prosper During Tough Markets

Surviving the rough times to be present for the big moves is the name of the game in commodity trading. With some luck we can even break even while the other participants are getting chopped to pieces. It requires giving up something to get something else. Learn how a few of the big hits can be avoided for a small price. Read about ways to participate in the long haul moves while still sleeping well at night.Let's say our forecast makes us bullish on the market. We want to check out the possibility of buying a future contract and hedging it by buying a put option. There will always be a choice here - either buying an option spread (as in the previous example) or buying a future with an option hedge. One method will always be better than the other. We need to determine this to get our strategy edge on the market. Much depends on the option premiums. Again, this is where it's handy to have an automated option evaluation program.Now we can get creative and more flexible. Let's say you have faith in your forecast that the market is going to rally within 2 - 3 weeks. If it doesn't happen by then, then the trade is suspect. Let's buy a futures contract and also buy a put option as close to the current market price as possible. Hopefully we pay a reasonable price for the put option. The closer you buy it, the less loss and risk if the futures contract declines sharply against you. However, the option premium will be higher too.The put option becomes a synthetic stop loss order for the futures contract. You will lose until the market hits that option strike price and then no matter how far the market drops, the futures contract loss is fixed and limited. Now here's the trick and edge...Select an option with only a small amount of time, like 30 days or so. The option will cost less because of having a short time remaining. If your future contract moves up within 2-3 weeks as you expect, the put option will lose its value quickly and expire within 30 days anyway. The option is the sacrificial lamb that has done its job for a few weeks and then dies. It has protected you against the big potential hit. We dodged the ball. Now it's up to the futures contract. That's where the profit will come from, if the trade is destined to work out.Once the futures contract gets far away from your entry point under the initial protection of the option, you can then move up the future's stop loss order to break-even. A new option could always be bought later if desired to synthetically lock in some profits. However, this is option overuse and the premiums start to catch up with you. We must take on risk or the market will not pay us. We become parasites if we hedge too much, add no liquidity or load risk onto others. In this example we economically used an option to lay off large risk at a critical time. After that brief, partially-hedged window, we again assumed the risk. There are other ways to do this, but beyond the scope of this article. More later.So far we have discussed entry techniques and ways to lower our risk at critical times when our exposure is the greatest. Remember that we are trying NOT to get hit by the dodge-ball and are happy making singles and doubles. Let the newbies swing for the fences and strike out 90% of the time. The idea here is survival until we identify a big market forecast and the move starts. That's the only time to swing for the fences. You want to play it conservative 90% of the time and swing hard 10% at most. To do otherwise is the road to consistent losses. Trade like a guerrilla warfare fighter. Survival first, shoot at our own time and place...sparingly. Let the others line themselves up and face off to their heart's desire. In another article we will discuss methods of using futures and options for synthetic exit strategies. This will include option granting, and futures hedging of options. Good Trading!

Learn Forex Trading In An Innovative And Easy Way

Why Learn Forex trading?The forex market is by far the largest market in the world. It is estimated that around $1.5 TRILLION is traded every single day. By far more then all the stock, bond and futures markets of the entire world combined! Forex or currency exchange is the term used to describe the trading of world currencies. A trade occurs when a trader simultaneously buy of one currency and sell of another one. E.g., to buy British pounds with US dollars. The currency combination used in a trade is called a pair.What does a forex trader do? Simple, buy a currency at a low value and sell it at a higher value, and in the process profit from it! For example, buy Great British Pounds with US Dollars, wait for the Pound rate to go up and make money! This can be done several times a day if the forex trader is a day trader or several times a week or month if the trader is a forex swing trader.What are the main benefits of trading in the forex market?Many currency pairs are very volatile. Volatility means that they move a lot during the day, from side to side, allowing traders to capture sometimes 5-6 price swings per day, each one potentially allowing the trader to make impressive profits.5-7 currency pairs to monitor (instead of over 10,000 stocks!), no commission trading, guaranteed fills for stop losses and limit orders, impressive leverage. The forex market is a 24 hour market. Never stops. This means that as a forex trader you can chose exactly when to trade. Some traders have day jobs and do not have the necessary time to trade during the day so they can trade at night. People who make their living as forex traders can chose to trade any time of the day or night. The point being, a 24 hour market allows the trader a lot of flexibility.What are the Exclusive benefits offered by forex trading?An incredible benefit of the forex industry is that today all forex brokers allow traders to open free demo accounts. This demo account has the full capabilities of a "real" account including live market rates, access to real-time market analysis, and the ability to execute trades off streaming prices. This means that the trader can test his or her strategies without risking a single dollar! No other business opportunity allows you to see if it works before you spend money!Making a living as a forex trader allows you to be truly free! No office, no workers, no inventory, no marketing worries, no advertising, no selling. Learning the right forex trading system allows the forex trader to trade by just following simple rules. If A happens and B happens then do C. This is called mechanical trading. It requires absolutely no discretion, interpretation or thinking from the trader.In conclusion, Learning forex trading provides all level of investors with a lot of opportunities that many markets and industries do not provide. The reason many people have not heard of this opportunity until recently is that until not long ago trading currencies was reserved to the big dogs (banks, institutions, companies etc). Today with the help of the internet anyone can take advantage of on-line currency trading that was once reserved to an exclusive group.

Perks of Automated Forex Day Trading

Are you interested in automated forex day trading? There are many things that you should know about automated forex trading, and this is a great place to learn about it. The idea of automated forex day trading is recently getting more and more popular. Futures exchange was the first to adopt this system and later on, the FX market followed suit and employed automated forex day trading.- EfficiencyThis system is very efficient and successful because of its capability to carry out a deal or a trade - real time. This means that there are no lags and fewer complications when trading and these results to more income generated. Achieving this level of efficiency is very hard to do by manual means especially if the decision to trade or not to trade can only be done in a time window of a few seconds. There are even instances wherein the window of opportunity is just a few milliseconds! There are instances wherein the trader is not in his desk and the opportunity suddenly presents itself, while sometimes a trader will skip deals for a while if he recently came from losing deals. These factors are eliminated by an automated system.- VersatilityAn automated system allows you to trade in diverse fields. It makes it possible for you to trade in varying markets as well as an array of time zones. Many trading models can be used by the trader since the system will be the one managing each trading model. Short term data can be analyzed by the system and this provides you with an advantage since you can use the data analyzed for making decisions based on what is currently happening in the market. Analyzing where the market will go in the next 15 or so minutes is impossible without using an automated forex trading system.- Improved liquidityLiquidity is greatly improved by the use of automated trading systems. This can be deduced by observing the behavior of the futures exchange market after employing an automated forex trading system.- SetbackTraders are foreseeing that a problem may arise when the time comes that all traders will adopt the automated system. The volume of orders may be so great that the existing bandwidth as well as current equipment used may not be able to accommodate this influx of information in real time. Existing systems might be able to carry the load and crash which will result to chaos in the market. As of now, safety controls have been created and set in place to prevent this scenario from happening.- Risk ManagementAnother big issue that concerns forex traders is risk management. Even automated forex trading systems require a risk management tool to ensure that there are no errors while trading. Risk management tools requires that before opening a position, checks should be conducted to ensure that no excessive correlation is present in already existing positions. To be 100% sure that the check is accurate and free of error, the whole system must first be synchronized. But as the technology used in forex trading progresses and evolves, these will no longer be issues to be concerned about.There are even instances wherein the window of opportunity is just a few milliseconds! There are instances wherein the trader is not in his desk and the opportunity suddenly presents itself, while sometimes a trader will skip deals for a while if he recently came from losing deals. These factors are eliminated by an automated system.These are some of the things that you should know about automated forex day trading. The information provided here will give you a better grasp and knowledge about this topic. Hopefully this will be helpful when you are deciding to try this kind of business.

Forex For The Future

A non-geographical, existential market, the foreign exchange market exists wherever one currency is traded for another. Far and above the largest market in the world, the $2 billion traded every day includes trading between large banks, individual investors, corporations, governments and various other institutions.Established in 1971, Forex trading has only recently become an individually traded market. Until the present time, only major institutions could trade on this market. Retail traders are currently a small, but constantly growing, part of the Forex.Ten years ago, the Wall Street Journal estimated the daily trading volume in the forex market to be in excess of $1 trillion. Today that figure has grown to exceed $1.8 trillion a day. Based on the Bretton Woods Agreement of 1945 aimed to stabilize international currencies and prevent money fleeing across nations, the U.S. dollar became fixed at a rate of $35 per ounce of gold.Thus, the gold standard was formed and Forex trading became a possibility. But only in 1971, when the Bretton Woods Agreement was abandoned, was the Forex market established. By 1973, major currencies became free to the push of supply and demand. The power of speculators came to be.With the advent of technological innovations like computers in the 1980's, money was soon able to be traded across time zones. Within minutes, like never before, massive amounts of currency could be exchanged. Today, London holds the world's largest international financial center and the major site for Forex trading.The interbank market is beneficial for both the major commercial turnovers and large amounts of purely speculative trading that takes place on an everyday basis. Some large banks trade billions of dollars daily. While some of that trading is on behalf of the bank's customers, much is for the bank's own account. Until recently, brokers on the market did most of the business of trading for a small fee, but now individual investor's can jump in on their own.The benefits of individual investors gaining hands-on access to Forex trading really came to be when the large inter-bank units began to offer small traders the opportunity to buy or sell smaller units (or lots) on their own.At present, the Forex market is appealing because of its massive trading volume, extreme liquidity, the number and variety of traders in the market, long trading hours, factors that affect the currency exchange rates and the geographical dispersion of the market.Between April 2005 and April 2006, Forex trading increase by 38 percent and has more than doubled since 2001. This can be attributed to the increasing importance of foreign currency exchange as an asset and an increase in fund management assets. Also, the vast array of execution venues, like Internet trading platforms, has also made it easier for retail traders to trade.In May 2006, a European exchange survey company found the top 10 investors in the Forex market were mostly American banks such as Bank of American and JP Morgan Chase, as well as international investors like Deutsch Bank and Barclays Capital.Trading on the foreign exchange market is up and coming

Forex - You Need A Real System!

Although it has been some years since I was actively involved in trading, I have just returned to the markets and have begun to trade a small account on my own behalf. This has perhaps given me a slightly skewed perspective of the markets, almost like a new entrant, but one with a lot of experience.There have been some big changes whilst I have been inactive, not least in the number of online brokerages fighting for every dollar.But many things stay the same, at the heart of which is one, I guess, unbreakable truth. Trading is basically a very simple business, with any trading stocks, options, FOREX, whatever only really involving three steps:1. Find several possible trades evaluate them and decide which to go for,2. Calculate how much to trade, and decide at what points to enter and exit the market3. Keeping an eye on, or monitoring, open market positionsNow, these three steps were basically all there was to it a few years ago, and they still And, guess what, people are still getting totally bogged down right here, at this early stage of the trading process, generally, for one of two reasons.The first possible reason is that they simply are not aware that these are the steps involved in the trading process, or (the second reason) they have no clearly defined rules for actioning these steps. Thus, less experienced, more nervous, traders can often take hours to evaluate a small number of potential trades.Experienced day traders, on the other hand, are fully aware that, with little time available to execute their trading, they must have a process plan and they must stick to it.
A day trader will set out his (or her) plan of action something like this:1. Recognize the opportunity, enter the market2. Stay in the trade for as long as possible if it is going for him or3. Get the heck out of there with minimum losses, as soon as it is clear it is going to go the wrong wayThat s it! That s essentially what a day trader in any market was doing years ago, and that is what a day trader is still doing today, with little or no change to their working practices brought about by the vastly more advanced technology of today.Savvy day traders learn very quickly that they must plan ahead of time, so that they are in prime position to take full advantages of the opportunities that occur in real time.Thus, day trading, which on paper at least is a pretty dangerous and risky manner of working markets is, in fact, one of the most disciplined trading schools! By the nature of market movements and the way they operate, day traders simply cannot afford to run their trading business on a wing and a prayer!

Choose Your Online Forex Broker

Online Forex brokers are known to be a required evil if you are going to trade in currency. There are also those people who are eligible to trade without outside assistance, but for the normal trader, enforcing to trade on the Online Forex market with no broker is like trying to chase a grizzly bear with a soup spoon. Your chances of achievement are actually very low, and there is a distinct option you would get hurt quite badly. Of course choosing the incorrect forex broker might return results same as to the sick fated bear hunt. That is why it is significant that you select a broker in the right way.First thing to be considered is to be sure that the broker you choose has the proper qualifications. When you look at the brokerage firms in the United States, immediately exclude those that are not registered as a Futures Commission Merchant (FCM) with the Commodity Futures Trading Commission (CFTC). This is again important as this designation means that you are confined against scam and any possible abusive forex trading practices. Covering your personal security before a forex trade has been made is a high-quality way to wade gradually into the forex currency market.
Once you have removed the ones who do not have the required qualifications, and now have a short list of potential, the internet comes into picture. Just don't go with the brokerage firm, which has the best profitable, or gets the most excellent "Law and Order" individuality to assist in the following advertising, research your choices. A superior idea is to send some effective emails to your customer service people. Estimate how long it takes them to get in touch to you. This is, after all, a customer examine ambitious profession.
Once you are pleased with a firm's experience and customer service practices, its time to get down to your self-assurance tacks. Online forex trading speed is forever an issue, so find out how fast it takes your own potential online forex broker to carry out an order. Also, you would desire to know how much slippage could be expected. This needs information, which could be discovered in a phone call, or any email to customer service. You would desire these answers not only for regular markets, but for fast moving ones as well.

Forex Trading

Forex trading, or foreign exchange current exchange trading, is a global phenomenon. This is the single largest market in the world. There are many different market sectors that are involved with Forex trading. These include, but are not limited to;" Banks" Corporations" Governments" IndividualsWhat is Forex trading you ask? At its simplest, Forex trading is currency being traded for another currency. However, Forex trading is anything but simple. The market has massive trade volume and is very fluid. Not to mention the hundreds of different currencies being traded and their ever changing value.Forex trading is a very focused area of trading, but the amount of time andenergy most people and companies spend getting trained and educated on Forex trading and its inner workings and pitfalls, is at least as much time as it takes to learn the stock market.Because of the complexity, Forex Trading is not your typical overnight success operation. There are many large corporations, such as GCI Financial which is a market leader in this space.Forex trading is unique in that everyone does not have access to all of the same information and prices at the same time, as they do with the stock market. I won't get into specifics here, but basically there is a tiered level whereby different levels of access are given to the Forex traders and Forex firms.The other main thing to remember about Forex trading is, until such time that the world adopts a single currency, Forex Trading will be around for a very long time.

Swing Trading For Profit a Live Example

Swing trading is one of the best ways to make money in forex trading, it's also a lot easier psychologically than trend following.It's therefore a great way to trade for novice traders. Over the last few weeks we have looked at some live examples:Banked 4 profits, scratched one trade at break even and have one open. Let's look at it and another potential opportunity.First why is swing trading an easy way to trade?When we say is easy, we mean psychologically.You get in quick with low pre defined risk and you're normally out in 2 - 5 days with a good profit.This is much easier than long term trend following, in that you do not have to wait for months and see dips eat into your open profit.Long term trend following is highly profitable but requires a lot more discipline.We personally mix the two ways of trading to gain some diversification of style and smooth the equity curve.Swing trading basicsWe normally look for important chart support and resistance and trade contrary to it.We wait for prices to test these areas and watch for stochastic momentum to fall against resistance or rise against support.Then we know the level has held and trade off it.We also use RSI and Bollinger bands to define targets and that's it.Nice ands simple, but can be very profitable you can read more about this method in our other articles.British PoundWe are short at recent nearby highs and would look for a pop to the downside to Fridays low or near the middle of the Bollinger band.Stochastic is weak at present and odds favor a bit more to the downside.With swing trading you don't want to hang around to long, get out on specific target and that's very close now.Another opportunityLets look at another potential opportunity that's could be shaping up. The euro is trading near its highs and the spike high on the chart is resistance. Stochastic momentum is waning and a cross with bearish divergence will put the odds in favor of the bears.The important point is to wait for confirmation of the crossover - the target is then Fridays low just above the middle of the center of the Bollinger band.FinallyThe tools used swing trade are simple and easy to use, but that doesn't mean they can't make profits as we have shown.Importantly, for novice traders the discipline needed to trade this way is a lot easier.If you practice a bit and learn to spot the set ups you will soon be able to spot some great low risk high reward trades - Good Luck

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