What is Forex Currency Trading?

The term 'Forex' or 'FX' is short for 'foreign exchange'. What is being exchanged on this market is not stocks or bonds, but currencies from around the world. In other words, the Forex market is the place where U.S. dollars, Euros, Yen and other major currencies are bought and sold. It represents the largest financial market in the world by volume. Starting with the simplest example of currency exchange that most people are familiar with is that of exchanging one currency for another when traveling overseas.

Sometimes you get more for every dollar you exchange than other times. You will notice that foreign exchange rates never remain the same and are constantly changing. This volatility in exchange rates can enable you to make a lot of money in the forex market with forex currency trading.

The aim is to exchange one currency for another in the expectation that the currency you bought will increase in value compared to the one that you sold. Currencies are traded through a forex broker and the currencies are always quoted in pairs, for example (EUR/USD).

Benefits of Forex

As we mentioned above, trading on margin gives you morebuying power and the potential for more profits (and losses). How does thiswork, exactly? A 1% margin account allows you to control a currency lot of$100,000 for $1,000. When dealing with $100,000 small changes in the price ofthe currency can result in large profits or losses.

FOREX currencies are traded in much smaller units than cash.The American dollar, for example, is traded in units down to 4 decimal places.Instead of $1.32 FOREX quotes are seen as $1.3256. The smallest unit in FOREXcurrencies is called the pip, and when you have a $100,000 each pip of yourtotal lot is worth $10 (when trading American dollars).

If the price of American dollars changes from 1.3256 to1.3356, that's a difference of 100 pips which represents a profit or loss of$1000. Without margin, if you had $1000 of currency, the price change from1.3256 to 1.3356 represents a difference of $10. Significant to the tourist,perhaps, but not the investor.

So the benefit of margin is increased profit potential.

Forex Trading Basics

The Foreign Exchange market (also referred to as the Forex, FX market, “Cash” Forex or Spot Forex market ) is the largest financial market in the world, with more than $1.5 trillion changing hands every day — 30 times larger than the combined volume of all U.S. equity markets. Another major feature of the Forex market is that it operates 24 hours a day, corresponding to the opening and closing of financial centers in countries all across the world, starting each day in Sydney, then Tokyo, London and New York. At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.

Finance Media Forex

In recent years, there are many people are involved in forex trading. Do you know what forex trading is ? Have you ever saw trading on the stock market? OK, Forex trading is just quite similar with that and in this field we make a deals with trading currencies amongst different countries which is usually done with a financial institution or a broker.

At this moment, we can say that Forex becomes the largest market on the planet and it is always changing, worldwide, 24×7. All these aspect is one of the things that makes forex so exciting. With that kind of activity, it is not always accurately predictable, but you need to understand the market so that you can jump on profitable trades and minimize your losses in losing trades, which is all based on the strategy that you utilize.

However, before you start to trade, one important things that you need to know and understand forex trading is a gamble, and like the advice offered to those who want to enter this field, never play with money you cannot afford to lose. Keep in mind There are no guarantees in the forex market, which means that you need to utilize all the tools at your disposal to ensure you have considered all factors that will impact a currency’s value, both now and in the future.

Economy of Karachi

Karachi is the financial and commercial capital of Pakistan; it accounts for a lion's share of Pakistan's revenue generation. It generates approximately 53.38% of the total collections of the Federal Board of Revenue, out of which 53.33% are customs duty and sales tax on imports^[1]. Karachi produces about 30 percent of value added in large scale manufacturing^[2] and 20%^[3][4] of the GDP of Pakistan. In February 2007, the World Bank identified Karachi as the most business-friendly city in Pakistan.^[5]

Economy of Pakistan

The economy of Pakistan is the 27th largest economy in the world in terms of purchasing power, and the 48th largest in absolute dollar terms. Pakistan's economy mainly encompasses textiles, chemicals, food processing, agriculture and other industries. The economy has suffered in the past from decades of internal political disputes, a fast growing population, mixed levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies^{[citation needed]}, bolstered by foreign investment and renewed access to global markets, have generated solid macroeconomic recovery the last decade. Substantial macroeconomic reforms since 2000, most notably at privatizing the banking sector have helped the economy.

Islamabad has steadily raised development spending in recent years, including a 52% real increase in the budget allocation for development in FY07, a necessary step toward reversing the broad underdevelopment of its social sector. The fiscal deficit - the result of chronically low tax collection and increased spending, including reconstruction costs from the devastating Kashmir earthquake in 2005 was manageable.

Islamabad Stock Exchange

Islamabad Stock Exchange is one of the three stock exchanges of Pakistan and is located in the capital of Islamabad. It was incorporated on October 25, 1989 and it became fully operational on August 10, 1992. Islamabad Stock Exchange is centrally located in Anees Plaza, Fazal ul Haq Road, Islamabad. A new development project is underway to establish a new building for the exchange.

At present there are 119 members out of which 93 are corporate bodies including commercial and investment banks, DFIs and brokerage houses. The other 26 Members are individual persons who are well educated, enterprising and progressive minded. The affairs of the Exchange are governed by the Board of Directors. The Board of Directors consists of ten directors, of which five are elected member directors and four are non-member directors nominated by the SECP while the managing director by virtue of his office is the tenth director of the Board . In order to protect the interest of the investing public, an Investors Protection fund has been established by the Exchange.

Lahore Stock Exchange

Lahore Stock Exchange (Guarantee) Limited is Pakistan's second largest stock exchange after the Karachi Stock Exchange. It is located in Lahore, Pakistan.

History

The Lahore Stock Exchange (Guarantee) Limited came into existence in October 1970, under the Securities and Exchange Ordinance of 1969 by the Government of Pakistan in response to the needs of the provincial metropolis of the province of Punjab. It initially had 83 members and was housed in a rented building in the crowded Bank Square area of Lahore. The number of listed companies has increased to 519 since its inception. With 37 sectors of the economy and 519 listed companies with total capital of Rs. 555.67 billion having market capitalization of around Rs. 3.64 trillion . The LSE has 152 members of which 81 are corporate, and 54 are individual members. The LSE was the first stock exchange in Pakistan to use the internet and currently 50% of its transactions are via the internet.
 

Fundamental analysis

Fundamental analysis of a business involves analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. When applied to futures and forex, it focuses on the overall state of the economy, interest rates, production, earnings, and management. When analyzing a stock, futures contract, or currency using fundamental analysis there are two basic approaches one can use; bottom up analysis and top down analysis.^[1] The term is used to distinguish such analysis from other types ofinvestment analysis, such as quantitative analysis and technical analysis.

Fundamental analysis is performed on historical and present data, but with the goal of making financialforecasts. There are several possible objectives:

• to conduct a company stock valuation and predict its probable price evolution,
• to make a projection on its business performance,
• to evaluate its management and make internal business decisions,
• to calculate its credit risk.

The Village Market

The Village Market Nairobi is a large shopping, recreation and entertainment complex in East Africa. It accommodates over 150 stores outlets covering 210,000 square feet (20,000 m²) of retail space, 20,000 square feet (1,900 m²) square feet of office space, in addition to recreation and entertainment facilities.

The Village Market is located in the Gigiri residential area which is about 6 miles from Nairobi city center on Limuru Road. The complex is designed to resemble an open-air African market, including waterfalls, rivers, plants and gardens.

History

In 1992 two Kenyan brothers, Hamed and Mehraz Ehsani had the idea of constructing a shopping and recreation mall within Nairobi. Their objective was to provide a shopping and recreation experience for Gigiri's residents which include diplomats, expatriates and touristsliving and/or working within the Nairobi's Diplomatic District and its immediate environs.^[1]

Construction began in April 1992 with 10 shops. Three years later they opened The Village Market's gates to the public. Today (February 2009) the complex covers over 225,713 square feet (20,969.4 m²) of leasing space; three levels high, with more than 150 outlets. It offers a variety of recreational facilities, including a cinema and an Olympic size bowling alley. The latest addition to the mall is a 5 star hotel with a 142 guest rooms and suites

1984 New Zealand constitutional crisis

The New Zealand constitutional crisis of 1984 was an important constitutional and political event in the history of New Zealand. The crisis arose following the 1984 general election, and was caused by a major currency crisis.

Prior to 1985 the New Zealand Dollar was controlled centrally by the Reserve Bank of New Zealand at a fixed exchange rate to the United States Dollar. In early 1984 the Deputy Governor of the Reserve Bank, Roderick Deane, became concerned that the dollar had become significantly overvalued and was vulnerable to currency speculation on the financial markets in the event of a "significant political event"

Australian dollar

The Australian dollar (sign: $; code: AUD) is the currency of the Commonwealth of Australia, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island, as well as the independentPacific Island states of Kiribati, Nauru and Tuvalu. Within Australia it is almost always abbreviated with the dollar sign ($), with A$ or AU$ sometimes used informally to distinguish it from otherdollar-denominated currencies. It is subdivided into 100 cents.

The Australian dollar is currently the sixth-most-traded currency in the world^[1] foreign exchange markets, (behind the US dollar, the euro, the yen, the pound sterling, and the swiss franc), accounting for over 6% of worldwide foreign-exchange transactions. The Australian dollar was popular with currency traders due to high interest rates in Australia (but within the last year there has been a gradual decrease in the IR to 3% in August 2009), the relative freedom of the foreign exchange market from government intervention, the general stability of Australia's economy and political system, and the prevailing view that the Australian dollar offers diversification benefits in a portfolio containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle.

United Kingdom and the euro

The United Kingdom's currency is the pound sterling. The UK has no plans to replace Sterling with the euro in the foreseeable future.

The UK negotiated an opt-out from the part of the Maastricht Treaty that required it to adopt the common currency. The current Prime Minister, Gordon Brown, ruled out membership in 2007, saying that the decision not to join had been right for Britain and for Europe.^[1] The British government under Brown has committed itself to a triple-approval procedure before joining theEurozone, involving approval by the Cabinet, Parliament, and the electorate in a referendum.

The government of former Prime Minister Tony Blair declared that "five economic tests" must be passed before the government could recommend the UK joining the euro and promised to hold a referendum on membership if those five economic tests were met. The UK would also have to meet the EU'seconomic convergence criteria (Maastricht criteria), before being allowed to adopt the euro. Currently, the UK's annual government deficit to the GDP is above the defined threshold.

United States dollar

The United States dollar (sign: $; code: USD) is the unit of currency of the United States. The U.S. dollar is normally abbreviated as the dollar sign, $, or as USD or US$ to distinguish it from other dollar-denominated currencies and from others that use the $ symbol. It is divided into 100 cents (200 half-cents prior to 1857).

The U.S. dollar is the currency most used in international transactions.^[1] Several countriesuse it as their official currency, and in many others it is the de facto currency.

Overview

The U.S. dollar bill uses the decimal system, consisting of 100 equal cents (symbol ¢). In another division, there are 1,000 mills or ten dimes to a dollar, or 4 quarters to a dollar. However, only cents are in everyday use as divisions of the dollar; "dime" is used solely as the name of the coin with the value of 10¢, while "eagle" and "mill" are largely unknown to the general public, though mills are sometimes used in matters of tax levies and gasoline prices. When currently issued in circulating form, denominations equal to or less than a dollar are emitted as U.S. coins while denominations equal to or greater than a dollar are emitted asFederal Reserve notes (with the exception of gold, silver and platinum coins valued up to $100 as legal tender, but worth far more as bullion). Both one-dollar coins and notes are produced today, although the note form is significantly more common. In the past, "paper money" was occasionally issued in denominations less than a dollar (fractional currency) and gold coins were issued for circulation up to the value of $20 (known as the "double eagle," discontinued in the 1930s). The term eagle was used in theCoinage Act of 1792 for the denomination of ten dollars, and subsequently was used in naming gold coins. In 1854, James Guthrie, thenSecretary of the Treasury, proposed creating $100, $50 and $25 gold coins, which were referred to as a "Union," "Half Union," and "Quarter Union,"^[3] thus implying a denomination of 1 Union = $100.

International Monetary Fund

The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments. It is an organization formed with a stated objective of stabilizing international exchange rates and facilitating development.^[2] It also offers highly leveraged loansmainly to poorer countries. Its headquarters are located in Washington, D.C., United States.

Economy of Malaysia

Malaysia is a growing and relatively open state-oriented market economy.^[1] The state plays a significant but declining role in guiding economic activity through macroeconomic plans. In 2007, the economy of Malaysia was the 29th largest economy in the world bypurchasing power parity with gross domestic product for 2007 was estimated to be $357.9 billion with a growth rate of 5% to 7% since 2007^[2] The Southeast Asian nation experienced an economic boom and underwent rapid development during the late 20th century and has a GDP per capita of $14,400, being considered a newly industrialized country.^[3][4] On the income distribution, there are 5.8 million households in 2007. Of that, 8.6% have an monthly income below RM1,000, 29.4% had between RM1,000 and RM2,000, while 19.8% earned between RM2,001 and RM3,000; 12.9% of the households earned between RM3,001 and RM4,000 and 8.6% between RM4,001 and RM5,000. Finally, around 15.8% of the households have an income of between RM5,001 and RM10,000 and 4.9% have an income of RM10,000 and above.^[5]

Background

[edit]Early and colonial history

The Malay Peninsula and indeed Southeast Asia has been a center for trade for centuries. Various items such as porcelain and spice were actively traded even beforeMalacca and Singapore rose to prominence. The Malacca Sultanate controlled the Straits of Malacca from its founding in 1402 to the 1511 invasion by Portugal. All the trade in the Straits, and especially the spices from the Celebes and the Moluccas, moved under its protection and through its markets.^[9]

In the 17th century, large deposits of tin were found in several Malay states. Later, as theBritish started to take over as administrators of Malaya, rubber and palm oil trees were introduced for commercial purposes. Over time, Malaya became the world’s largest producer of tin, rubber, and palm oil. These three commodities along with other raw materials firmly set Malaysia's economic tempo well into the mid-20th century.

New Zealand Exchange

NZX Limited (NZX: NZX) is a stock exchange located in Wellington, New Zealand. Since July 2005 it has been located in NZX Centre, the renovated 'Odlins Building' on the Wellington waterfront. As of 30 June 2009, the New Zealand Exchange had 233 listed issuers with a combined market capitalization of $49.024 billion.

History

NZX began life as a number of regional stock exchanges during the Gold Rush of the 1870s. In 1974 these regional exchanges were amalgamated to form one national stock exchange, the New Zealand Stock Exchange (NZSE).

On 24 June 1991, NZSE implemented a computerised trading system, and abolished the open outcry market. This computerised system was replaced with the FASTER trading system in September 1999.

On 16 October 2002 the Member Firms of the New Zealand Stock Exchange voted in favour ofdemutualisation, and on 31 December 2002, NZSE became a limited liability company. On 30 May 2003, New Zealand Stock Exchange Limited formally changed its name to New Zealand Exchange Limited, trading as NZX, and on 3 June 2003 listed its own securities on its main equity market.