Foreign exchange market
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The Foreign Exchange Market (AKA Forex, 4x) is the primary means through which economic terrorism takes place. There are many participants in this war of financial attrition, including larger armies of banks, all the way down to independent economic-vigilantes who attempt to follow the trends and motions of larger scale economic warfare. Unfortunately the survival rate of smaller armies and individuals is not great, as most can't compete with the financial weapons of mass destruction that larger banks own. Traders attempt to steal units of "pips" from each other in an attempt to cause enemy currencies to go into recession and their own currencies into a boom.
edit The pip
The pip is a measure of damage caused to economies, financial institutions and the ability of Gladys Knight to have a musically relevant career. Traders strive to collect pips as pips equal power in the market. The competition over pips is very fierce, as traders have been known to be murdered for as little of 1 pip. Many times traders are completely whipped of their entire account when they lose all their pips. It is estimated 90% of retail forex traders die within a year of enlisting in the economic battles. When enough pips are collected they can be exchanged for lavish riches, thus this is where the exchange part of the market comes into play.
1 pip = chocolate snack pack
10 pips = Strip Bar money
100 pips = Trading equipment, multiple monitors etc.
1,000 pips = Payment on Subprime loan debt
10,000 pips = Ferrari/Lamborghini or 2 Porsches
100,000 pips = Lavish estate
1,000,000 pips = A date with Paris Hilton (This is the ultimate goal of every forex traders, this to date has not been accomplished by any one, but the Forex King has come close).
The Overall Goal of every Forex trader is to be the one who dies with the most stuff.
edit The Laws of the Forex Market
The original behavior of the forex market was described using Euclidian Pipometry, which only measured ups and downs, or 1 dimensional trading. This primitive method is still used today but is largely considered obsolete. It was replaced later on by a more advanced and accurate form of Pipometry, known as Newtonianpipometry, this established the basic laws of Pipometry, and modelled accurately the force of the forex market for regular traders.
1st law- Every account balance at rest, stays at rest, unless acted upon by a trade, either Short Or long. Trade that are short or long tend to stay such unless acted upon by a Target Profit or Stop Loss.
2nd Law- Every Short or Long has a buyer or seller for every action exactly equal and opposite in direction.
3rd Law- The Change in equity/balance of an account is equal to the rate of change of pips of the traders. Equity = (Gain/Loss of pips) * (Lot size)
The newtonianpipmetry is largely considered accurate for smaller trades, and trades that take place in the macroverse. However it cannot explain the actions of Quantum level trading or trading of supermassive lot sizes, which is what Larger financial institutions such as banks do.
Fortunately a man named, Albert Pipstein, discovered the model to accurate explain the behavior of larger financial institutions and banks. He discovered that Larger lots sizes actually Warp the fabric of Currency-spacetime, thus directly causing straight forward trends to bend around their own trades. He also realized that Account Equity and # of pips are completely interchangeable, and this was actualized in the equation:
Brokers are business established to provide traders a means of storing pips they have collected, and for placing attacks on certain currency pairs. Unfortunately many brokers steal pips from their users to support their overall accounts, and even place counter attacks on traders to diminish their abilities to make pips from attacks on currency pairs. Brokers are most traders connections to economic terrorism, and are the number one contributor towards economic recession. They are considered to be the black market dealers of the financial world, they can provide traders with Short or Long attacks, designed to attack the bids and offers of stable currency pairs. Brokers also charge their users to store their pips in the form of commission and spread.
edit Currency Pairs
There are many different currencies pairs that can be attacked to extract pips from them. Often times the rates between the pairs are governed by bids and offer attacks placed by traders, financial institutions and large banks.
EUR/USD (Euro to US dollar)- This is a fundamental pair controlled by many squabbling and crying rich people and bank traders. When the currency pair gets low, the holders simply start crying and complaining until some one comes along to fix the currency, often through means of an interest rate change.
GBP/JPY(Great British Pound/ Japanese Yen) - This pair has two phases. The ass pounding side (thus Great British Ass Pounding), and the profit phase, governed by the Japanese banks cooking their books. Many people consider this Pair very difficult to trade, while other say only real men can trade the GBP/JPY
KDY/LVR(Kidneys to Livers) This is a black Market Forex pair. Often traded in 3rd world countries, this pair has been largely outlawed in most civilized countries. This is a very profitable pair.
ROM/ETH (Romanian Dollar to Ethiopian Dollar) This is by far the cheapest and most worthless currency pair, because the competing currencies both have little to no value. This is a staple of the poor forex trader. The greatest financial gains off this pair to date is approximately equal to $1.55 USD.
There are many other currency pairs out there from which pips can be extracted, or lost to in failed attacks.
edit Theoretical Pipometry
0th Law- The sum of the power in the Forex Market remains in equilibrium, the over big picture of the Forex Market is a zero sum game.
1st Law - For every pip in the known universe, there exists an Anti-pip. The numbers of pips and anti-pips are exactly equal, and their sums are remain constant. Pips and anti-pips cannot be created nor destroyed, rather they can only be transferred from one account to another.
2nd Law - Entropipy, The total equity of an account over time tends to approach the starting balance, or Zero profit and losses.
3rd Law- Absolute Zero Equity, Also known as margin call, Accounts cannot reach a negative value, the lowest an account can go is 0$, this phenomenon is called Absolute Zero Margin Call. This is the overall goal of most brokers for their clients.