Hong Kong-headquartered CLSA Premium Limited (HKG:6877), a foreign exchange ( Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term) broker, has published its half-yearly financials for the first six months of 2021, ending on June 30. It reported a significant drop in its business, resulting in deepening its losses further.
According to the unaudited figures, the broker generated total revenue of HK$3.8 million (around $488,300) in the six month period, which is a 42 percent decline from the previous year.
The financial disclosure detailed that CLSA gained HK$1.29 million, compared to HK$2.22 million, from leveraged foreign exchange and other trading income, while $2.48 million was generated from other income sources. Fees and commissions brought in HK$28,000, which is down from the previous year’s HK$44 million.
After considering all expenses, the broker ended the period with a net loss of HK$29.98 million (around $3.8 million): in the equivalent period of the previous year, the broker reported a net loss of HK$21.2 million.
Loss Was Expected
The loss from the brokerage did not come as a surprise as CLSA issued a profit warning earlier this year, disclosing the slowdown in its business. In addition, the latest figures remained in line with the previously made estimates.
Previously known as KVB Kunlun, CLSA Premium primarily focuses on three markets with its brokerage services: Hong Kong, Australia and New Zealand. Only operations from Aussie clients generated some business for the broker.
However, its New Zealand business faced a dent as the local regulator imposed several conditions on its license. Furthermore, the broker put aside HK$5.6 million as a provision to cover the penalty imposed on it by New Zealand's Financial Market Authority.
Meanwhile, last year a shareholder of the company floated a business wind-up proposal twice, but it got quashed both times by a majority of shareholders.
Hong Kong-headquartered CLSA Premium Limited (HKG:6877), a foreign exchange ( Forex
Forex
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value.
Read this Term) broker, has published its half-yearly financials for the first six months of 2021, ending on June 30. It reported a significant drop in its business, resulting in deepening its losses further.
According to the unaudited figures, the broker generated total revenue of HK$3.8 million (around $488,300) in the six month period, which is a 42 percent decline from the previous year.
The financial disclosure detailed that CLSA gained HK$1.29 million, compared to HK$2.22 million, from leveraged foreign exchange and other trading income, while $2.48 million was generated from other income sources. Fees and commissions brought in HK$28,000, which is down from the previous year’s HK$44 million.
After considering all expenses, the broker ended the period with a net loss of HK$29.98 million (around $3.8 million): in the equivalent period of the previous year, the broker reported a net loss of HK$21.2 million.
Loss Was Expected
The loss from the brokerage did not come as a surprise as CLSA issued a profit warning earlier this year, disclosing the slowdown in its business. In addition, the latest figures remained in line with the previously made estimates.
Previously known as KVB Kunlun, CLSA Premium primarily focuses on three markets with its brokerage services: Hong Kong, Australia and New Zealand. Only operations from Aussie clients generated some business for the broker.
However, its New Zealand business faced a dent as the local regulator imposed several conditions on its license. Furthermore, the broker put aside HK$5.6 million as a provision to cover the penalty imposed on it by New Zealand's Financial Market Authority.
Meanwhile, last year a shareholder of the company floated a business wind-up proposal twice, but it got quashed both times by a majority of shareholders.