0 What is Foreign Exchange Market?

The foreign exchange market or forex simply refers to making big money. This market is concerned with trading one type of currency for the other. You spend one type of currency to buy another. You need to invest some amount of money in your base currency. You can then use this currency to exchange with others and hence the name foreign exchange.

Ordinary trading deals with goods. You exchange goods for money. Foreign Exchange market deals with currencies. You exchange once foreign currency for the other. You won't have any commission based buying or selling. You sell a currency to buy another currency. You gain profit depending on the difference of value between the currencies. Putting it straight foreign exchange is trading related to currency conversion.

Foreign currency exchange is the largest and the most profitable financial market in the world. The trading is done between large banks, governments, great financial institutions and multinational companies. The foreign currency exchange business was not open to the public initially. But after 1998, many individuals started getting into this business. Nowadays, many intelligent people are making huge money with foreign currency exchange. The foreign currency exchange market has no business hours like stock market. The trading is open round the clock on all days except weak ends.

Foreign currency exchange quote always comes in pairs. The quote will be something like EUR/USD. The first part is the base currency and the second part is the counter currency. It means that you are exchanging the foreign currency Euro with US Dollars. You can purchase this quote when the value of Euro is expected to increase the value of USD. The changing currency exchange rates provide you the opportunity to get a profit bigger than the initial invested money.

The value of the currency you hold remains the same in the foreign exchange market. The amount of the currency you hold depends on the foreign exchange rate. When you have 20 Canadian dollars and if the exchange rate is 2 Canadian dollars for 1 US dollars, then you will sell the 20 Canadian dollars to buy 10 US dollars through foreign exchange. This is how buying and selling happens.

The market is very huge that $3 trillion are exchanged everyday. The number does not refer to the money value but the amount of currencies. Anybody can get involve in forex trading but you need to know the ins and outs to make profits. The profit is not based on commission of transactions. It is based on the currency exchange rates.

Individuals can enter into the foreign exchange market through the brokers. You must carefully choose your broker. You have to choose a company which has been in the market for quite a long time. Don't take heavy risks by associating with a company that has newly entered into the market. With internet online currency conversion has become easier. While trading you have to purchase only when if the currency is expected to increase in value. On the whole foreign currency exchange market runs purely on speculation.

Mansi Aggarwal Highly Recommends that you visit http://www.TorFx.Com for more information on Foreign Exchange And Foreign Currency.

Article Source: http://EzineArticles.com/?expert=Mansi_Aggarwal


0 Knowing Some Basics Concerning the Foreign Exchange Market

We come face to face with our local money every day. The time will come when some of us will need to make or receive a payment in a foreign currency. To jump this hurdle, we go to the bank to handle the currency exchange, or to a number of foreign currency exchange companies we can find on the internet, who will invariably quote far better rates of exchange. Believe me they will, they could not exist if they did not offer a better deal.

You do not have to be a mechanic to know some essential words about a car like the steering wheel, the hand brake, clutch pedal, the engine etc. But you do need to know these fundamental words to be able to understand what they refer to when becoming a car driver otherwise life would be hard. Similarly, it is important to know a little about the foreign exchange market so that when the day comes and you will be need to buy foreign currency to get that house of your dreams or anything else abroad, you are not at a disadvantage.

The FOREIGN EXCHANGE MARKET also called FOREX or FX, has no trading centre.

Unlike the London Stock Exchange or the New York Stock Exchange centres, it has no fixed abode, but manages very well and is extremely active.

There are hundreds of brokerage companies and banks, who deal between themselves including big corporations. Put these on one level. On another level, there are smaller agents who handle the buying and selling of the foreign currencies, going by the rates as signalled by Reuters or other agencies. These rates are aligned to the actual events taking place nonstop in the market.
The difference between these two levels is a wholesale and retail classification as existing in other trades. When the media talk about the foreign exchange market, it is the wholesale level they refer to. Foreign exchange currency institutions have better access to obtaining a more advantageous rate of exchange than the ordinary small company or the man in the street.

The foreign exchange market operates 24 hours per day.

BID is the rate at which a dealer is ready to purchase the base currency.

OFFER is the rate at which the dealer is ready to sell the basic currency.

The difference between the BID and ASK price is called the SPREAD.

The MARKET MAKERS make the profit from the spread. They make no commission.

BASIC CURRENCY is the currency against which the other currencies are quoted.

BULL MARKET refers to a price rising market.

BEAR MARKET refers to a declining price market.

BOTTOM: a description of a price decline meeting heavy support against further price decline.

CABLE: When the steel cable was connected under the Atlantic in 1850 thus linking USA with UK enabling telegraph transmission between the London and New York Exchanges, it was called ATLANTIC CABLE. Satellite and optic cables are now used, and the word CABLE refers to GBP/USD currency pair rate.

CROSS RATES: This refers to currency pairs where the USD is not included like GBP/EUR or GBP/JPY

MARGIN refers to a deposit in cash required to cover the possibility of loss the client may encounter trading the foreign exchange.

MARGIN CALL refers to a requirement for additional money, to make up the minimum cash deposit needed to cover any losses the client may encounter trading in the foreign exchange market.

VOLATILITY refers to the extent of price fluctuation.

There are of course, many more terms used in the foreign currency business, but you have here a selection which will help you to know some of the basics.

Good luck.

Paul Dubsky is director of Foreign Currency Exchange Services Ltd. The company is focused on being able to offer really friendly currency exchange rates. We believe we are the only Foreign Currency Exchange company which offers special rates to Senior Citizens.


Article Source: http://EzineArticles.com/?expert=Paul_Dubsky


0 Debt Consolidation Mortgage Refinance - 3 Common Mistakes Homeowners Make

Are you among those people, homeowner and non-homeowner alike, who are thinking that a debt consolidation mortgage refinance is meant to bail you out of just about any type of financial trouble that you may get yourself into? If so, then join the club and continue reading further. There are some very simple misconceptions that many people have when it comes to this particular topic; and they are: A Catch-All Solution, An Emergency Back-up Plan and Always There for Whatever Reason.

A Catch-All Solution

This is the first very common misconception many people have when it comes to debt consolidation mortgage refinance, that this is basically a catch-all solution to any and all of your financial troubles. The truth is that this is actually meant to help you to get a lower interest rate than you already have... so that you can get out from under the burden. By going through this process repeatedly, you actually are adding more of a financial burden to your plate than you already have and might just end up not having any lenders who are willing to work with you if you abuse this process.

An Emergency Back-up Plan

While this technically is not a misconception, it can still cause some problems if you are thinking that you can use debt consolidation mortgage refinance indiscriminately to bail yourself out of the financial messes that you might get into. This method of clearing your way to a quicker resolution of your mortgage debt can also be abused if you look at it the wrong way and think that it is there to use whenever you feel like it.

Always There for Whatever Reason

This is also something that you really have to look at very carefully when you start thinking like this. Watch what you are thinking when you start looking into debt consolidation mortgage refinance. If you find yourself thinking that you do not need to be careful about what you are spending; that you can always refinance your mortgage to clear up those debts any time you need to, you really need to think again. This is not what that kind of loan is there for.

Final Thoughts

A good many times you will be in need of a debt consolidation mortgage refinance loan to help you get yourself and your financial situation straightened out so that you can keep yourself out of some very serious financial troubles. This is great if this is what you are using this kind of loan for! This is exactly what it was designed for. When you really get right down to it, you are much better of if you can keep your spending under control and not go hog wild when you see a big ticket item that you would like to buy. The best plan there is to start putting money aside to buy it with cash or starting using pre-paid credit cards so that you cannot spend more than you have on hand.

This is just a small sampling of the information about Debt Consolidation Mortgage Refinance that you will find when you go to http://www.homemortgageloan-refinance.com/Debt-Consolidation-Mortgage-Refinance-Four-Tips-For-A-Positive-Experience.php and read more.

Article Source: http://EzineArticles.com/?expert=Julian_Lim



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