Forex

What is Forex Currency Trading?

2009-11-05T01:59:00.000-08:00

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

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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

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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

2009-11-05T01:46:00.000-08:00

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

2009-11-03T12:02:00.000-08:00

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

National Stock Exchange of Australia

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National Stock Exchange of Australia (NSX) is a small stock exchange based in Newcastle, Australia. It is owned and operated by NSX Limited, which is listed on the Australian Securities Exchange (listed 13 January 2005). On 20 December 2006 the Newcastle Stock Exchange formally sought approval and was granted a change of name by the Minister to National Stock Exchange of Australia and still trades by the acronym of NSX.

History

The NSX was founded in 1937 and in the past had listed as many as 300 local and regional companies. Some grew to become significant businesses, such as Brambles Limited. It was reactivated in its present form in 2000.

[edit]Bendigo Stock Exchange

NSX Limited acquired Bendigo Stock Exchange (BSX) on 12 April 2005. BSX facilitates the trading of Bendigo Community Banks and other organisations in an uncertificated market.

[edit]Taxi Market

NSX created the first publicly tradeable taxi licence market in conjunction with the Victorian Taxi Directorate. The market started trading on 28 March 2006.

[edit]The Water Exchange

NSX Limited acquired The Water Exchange on 19 October 2007. The Water Exchange facilitates the trading in water entitlements within Australia.

National Stock Exchange of India

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The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading.^[1]. NSE has a market capitalization of around Rs 47,01,923 crore (7 August 2009) and is expected to become the biggest stock exchange in India in terms of market capitalization by 2009 end.^[2]Though a number of other exchanges exist, NSE and theBombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is theS&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalisation.

Origins

The National Stock Exchange of India was promoted by leading Financial institutions at the behest of theGovernment of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market(Equities) segment of the NSE commenced operations in November 1994, while operations in theDerivatives segment commenced in June 2000.

Bombay Stock Exchange

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The Bombay/Mumbai Stock Exchange Limited (Marathi: मुंबई शेयर बाजार Mumbaī Śheyar Bājār) (formerly, The Stock Exchange, Mumbai; popularly called The Bombay/Mumbai Stock Exchange, or BSE) is the oldest stock exchange in Asia and has the greatest number of listed companies in the world, with 4700 listed as of August 2007.^[1] It is located at Dalal Street,Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the12th largest in the world.^[2]

Hours of operation

Beginning of the Day Session....8:00 - 9:00
Login Session....9:00 - 9:30
Trading Session....9:55 - 15:30
Position Transfer Session....15:30 - 15:50
Closing Session....15:50 - 16:05
Option Exercise Session....16:05 - 16:35
Margin Session....16:35 - 16:50
Query Session....16:50 - 17:35
End of Day Session....17:35

The hours of operation for the BSE quoted above are stated in terms of the local time (i.e. GMT +5:30) in Mumbai (Bombay), India.

BSE's normal trading sessions are on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.^[4]

State Bank of India

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State Bank of India (SBI) is the largest bank in India.

The bank traces its ancestry back through the Imperial Bank of India to the founding in 1806 of theBank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. TheGovernment of India nationalised the Imperial Bank of India in 1955, with the Reserve Bank of Indiataking a 60% stake, and renamed it the State Bank of India. In 2008, the Government took over the stake held by the Reserve Bank of India.

International presence
The bank has 52 branches, agencies or offices in 32 countries. It has branches of the parent in Colombo,Dhaka, Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives,Muscat, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, andSingapore, and representative offices in Bhutan and Cape Town.
History
The roots of the State Bank of India rest in the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies, and were the result of the royal charters. These three banks received the exclusive right to issue paper currency in 1861 with the Paper Currency Act, a right they retained until the formation of the Reserve Bank of India. The Presidency banks amalgamated on 27 January 1921, and the reorganized banking entity took as its name Imperial Bank of India. The Imperial Bank of India continued to remain a joint stock company.

State Bank of Pakistan

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The State Bank of Pakistan (SBP) (Urdu: بینک دولت پاکستان) is the central bank ofPakistan. While its constitution, as originally laid down in the State Bank of Pakistan Order 1948, remained basically unchanged until January 1, 1974, when the bank was nationalized, the scope of its functions was considerably enlarged. The State Bank of Pakistan Act 1956, with subsequent amendments, forms the basis of its operations today. The headquarters are located in the financial capital of Pakistan, Karachi with its second headquarters in the capital, Islamabad.

History

Before independence on 14 August 1947, the Reserve Bank of India (central bank of India) was the central bank for what is now Pakistan. On 30 December 1948 the British Government's commission distributed the Bank of India's reserves between Pakistan and India - 30 percent (750 M gold) for Pakistan and 70 percent for India.

The losses incurred in the transition to independence were taken from Pakistan's share (a total of 230 million). In May, 1948 Muhammad Ali Jinnah (Founder of Pakistan) took steps to establish the State Bank of Pakistan immediately. These were implemented in June 1948, and the State Bank of Pakistan commenced operation on July 1, 1948.

Karachi Stock Exchange

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The Karachi Stock Exchange or KSE is a stock exchange located in Karachi, Sindh,Pakistan. Founded in 1947, it is Pakistan's largest and oldest stock exchange, with many Pakistani as well as overseas listings. Its current premises are situated on Stock Exchange Road, in the heart of Karachi's Business District.

2008 Karachi Stock Exchange Crisis

April 20 : Karachi Stock Exchange achieved a major milestone when KSE-100 Index crossed the psychological level of 15,000 for the first time in its history and peaked 15,737.32 on 20 April, 2008. Moreover, the increase of 7.4 per cent in 2008 made it the best performer among major emerging markets.^[3] ^[4]
May 23: Record high inflation in the month of May, 2008 resulted in the unexpected increase in the interest rates by State Bank of Pakistanwhich eventually resulted in sharp fall in Karachi Stock Exchange.^[5] ^[6]
July 17 :Angry investors attacked the Karachi Stock Exchange in protest at plunging Pakistani share prices. ^[7] ^[8]
July 16 : KSE-100 Index dropped one-third from an all-time high hit in April, 2008 as rising pressure on shaky Pakistan's coalition government to tackle Taliban militants exacerbates concern about the country's economic woes. ^[9]
August 18: KSE 100 Index rose more than 4% after the announcement of the resignation of President Pervez Musharraf but Credit Suisse Group said that Pakistan's Post-Musharraf rally in Stock Exchange will be short-lived because of a rising fiscal deficit and runaway inflation.^[10] ^[11]
August 28 :Karachi Stock Exchange set a floor for stock prices to halt a plunge that has wiped out $36.9 billion of market value since April.^[12]
December 15: Trading resumes after the removal of floor on stock prices that was set on August 28 to halt sharp falls

Khanani and Kalia International (Private) Limited

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Khanani and Kalia International (Private) Limited (KKI) is the biggest money changer company^{[citation needed]} and one of the biggest companies of financial services and communications based in Pakistan^{[citation needed]}. Its corporate office is in Karachi and its international marketing and commercial services headoffice in Mississauga, Canada. The company was founded by Hanif Kalia, a well known businessman, educationalist and social welfarer.

KKI offers a number of services including management consultancy, internal auditing, homeremittance, outward remittance, IT management, HR management, administration, marketing, andR&D on behalf of clients. The company has branches in Karachi, Lahore and Islamabad, with its franchises networked all over Pakistan. The company has its foreign branches in London, Glasgow, Sydney, New York, Toronto, Montreal, Scarborough, Vancouver, Kuwait City, Bahrain and Qatar.

Floating Exchange Rate

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A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein acurrency's value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency. It is not possible for a developing country to maintain the stability in the rate of exchange for its currency in the exchange market. There are two options open for them- [1] Let the exchange rate be allowed to fluctuate in the open market according to the market conditions, or [2] An equilibrium rate may be fixed to be adopted and attempts should be made to maintain it as far as possible. But, if there is a fundamental change in the circumstances, the rate should be changed accordingly. The rate of exchange under the first alternative is know as fluctuating rate of exchange and under second alternative, it is called flexible rate of exchange. In the modern economic conditions, the flexible rate of exchange system is more appropriate as it does not hamper the foreign trade.

Currency pair

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A currency pair depicts a quotation of two different currencies. The first currency in the pair is the base currency (or transaction currency). The second currency in the pair is labelled quote currency (payment currency, counter currency). Such a quotation depicts how many units of the counter currency are needed to buy one unit of the base currency.

For example the quotation EUR/USD 1.2500 means that one euro is exchanged for 1.25 US dollar. If the quote moves from EUR/USD 1.2500 to EUR/USD 1.2510, the euro is getting stronger and the dollar weaker. On the other hand if the EUR/USD quote moves from 1.2500 to 1.2490 the euro is getting weaker while the dollar is getting stronger.

InstaForex

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InstaForex (InstaTrade Corporation) – ECN-broker provides on-line trading services on the international financial Forex market and trading of contracts for difference CFD services.

The name of the company comes from the eng. "instant" and "Forex", which means "instant execution of orders on the Forex market".

History

InstaForex project was founded in 2007 by InstaTrade Corporation as retail broker on the financial Forex market. Right after the registration the contract was concluded with one of the leading companies in software engineering for financial markets – MetaQuotes Software. That is how InstaForex started working on the market of brokerage services all over the world. During the first couple of months of InstaForex operations the contracts were concluded with the major western contra-agents, which provides access to the banking currency market. For providing informational support to the clients agreements were signed on the news providing with major media-company on financial markets in the USA – Dow Jones & Company.

Forex Bank

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Forex AB is a Swedish financial services company. The company was started in 1927 as a currency exchange service for travellers, at the Central Station in Stockholm. The owner of Gyllenspet's Barber Shop, according to the legend, discovered that most of his customers were tourists in need of currency for their trips. The owner began keeping the major currencies on hand.

The company was subsequently acquired by Statens Järnvägar (now SJ AB), the Swedish State Railways, which expanded the operations until it was sold off to one of the managers, Rolf Friberg, in 1965. The company was the only one apart from the banks that was licensed to conduct currency exchange in Sweden.

Economy of the United Kingdom

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The United Kingdom is a major developed capitalist economy. It is the world's sixth largestby nominal GDP and the seventh largest by purchasing power parity.^[1] It is the third largesteconomy in Europe after Germany's and France's in nominal terms, and the third largest after Germany's and Russia's in terms of purchasing power parity.^[1] Its GDP PPP per capita is the 18th highest in the world.^[1] The United Kingdom is also a member of the G8, the Commonwealth of Nations, the Organisation for Economic Co-operation and Development, the World Trade Organisation, and the European Union.

Zimbabwean Dollar

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The Zimbabwean dollar was the official currency of Zimbabwe between 1980 and 12 April 2009. The Zimbabwean dollar was subdivided into 100 cents. It was normally abbreviated with the dollar sign $, or alternatively Z$ to distinguish it from other dollar-denominated currencies. It was also one of the lowest-valued currencies in the world. Due to massive inflation and threeredenominations, it was suspended indefinitely on 12 April 2009.^[4] Today, other currencies are exclusively used for transactions in Zimbabwe instead.

Economy Of India

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The economy of India is the twelfth largest economy in the world by market exchange rates^[5] and the fourth largest by purchasing power parity (PPP) basis.^[6]

India was under social democratic-based policies from 1947 to 1991. The economy was characterised by extensive regulation, protectionism, and public ownership, leading topervasive corruption and slow growth.^[7]^[8]^[9]^[10] Since 1991, continuing economic liberalisation has moved the economy towards a market-based system.^[8]^[9] A revival of economic reforms and better economic policy in 2000s accelerated India's economic growth rate. By 2009, India had prominently established itself as the world's second-fastest growing major economy.^[

Federal Reserve System

2009-10-08T07:35:00.001-07:00

The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created in 1913 by the enactment of the Federal Reserve Act, largely as a response to a series of financial panics or bank runs, particularly a severe panic in 1907.^[1]^[2]^[3] Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved.^[2]^[4] Events such as the Great Depression were some of the major factors leading to changes in the system.^[5] Its duties today, according to official Federal Reserve documentation, fall into four general areas:^[6]

Gambling

2009-10-08T07:33:00.001-07:00

Gambling is the wagering of money or something of material value on an event with an uncertain outcome with the primary intent of winning additional money and/or material goods. Typically, the outcome of the wager is evident within a short period.

The term gaming^[1] in this context typically refers to instances in which the activity has been specifically permitted by law. The two words are not mutually exclusive; i.e., a “gaming” company offers (legal) “gambling” activities to the public.^[2] This distinction is not universally observed in the English-speaking world, however. For instance, in the UK, the regulator of gambling activities is called the Gambling Commission (not the Gaming Commission).^[3]

State Administration of Foreign Exchange

2009-10-08T07:29:00.001-07:00

The State Administration of Foreign Exchange (simplified Chinese: 国家外汇管理局; pinyin: Guójiā wàihuì guǎnlǐ jú) of the People's Republic of China is an administrative agency tasked with drafting rules and regulations governing foreign exchange market activities, and managing the state foreign exchange reserves, which at the end of June 2009 stood at $2.13 trillion for the People's Bank of China. The current director is Yi Gang.^[1]

Good Life China Corporation

2009-10-08T07:27:00.000-07:00

Good Life China Corporation (GLCC), founded and incorporated in 1998 with 335 Employees operates a chain of franchised convenience stores in Hebei Province, the People's Republic of China. The company employs retail concepts, such as e-commerce enabled POS/back office systems. It operates approximately 1,730 stores. The company also has an agreement with Petro China Beijing to provide distributionservices and information management system services for the convenience stores in the gas stations belonging to Petro China Beijing Marketing Company. In addition, the company offers online sub prime financial services, such as money lending, forex trading, and advanced electronic funds management.

CMC Markets

2009-10-08T07:24:00.000-07:00

CMC Markets (Currency Management Corporation), is a financial services company offering online derivatives through spread betting, CFD (Contract for difference) and Forex (Foreign Exchange) trading across the worlds markets. The head office is in London.

History

The company was established in 1989 by Peter Cruddas as a Foreign Exchange market maker. In 1992, CMC Markets became authorised and regulated in the UK by the AFBD which later became the Financial Services Authority (FSA)

In 1996, the company launched a real-time FX trading platform and in 2000, began to offer Contracts for Difference (CFDs).

CMC Markets online spread betting service was introduced in 2001.

National Futures Association

2009-10-08T07:22:00.001-07:00

The National Futures Association (NFA) is an independent self-regulatory organization and watchdog of the commodities and futures industry in the United States. The NFA oversees and protects investors from fraudulent commodities and futures activities. The NFA also providesmediation and arbitration for resolving consumer complaints. NFA is headquartered in Chicago, IL and also maintains an office in New York City.

Casual Trading

2009-10-08T07:19:00.000-07:00

Casual trading is a newly developed variant of financial trading. It consists of the same principles carried out in trading rooms but involves the use of trading platforms that can be operated from the trader's residence.

Casual trading is a general name for all trading actions that are carried out by individuals without the use of a mediator. They can be found in stock exchange, foreign exchange, commodities and other markets.

Paper Trading

2009-10-08T07:17:00.000-07:00

Paper trading (sometimes also called "virtual stock trading") is a simulated trading process in which would-be investors can 'practice' investingwithout committing real money.

This is done by the manipulation of imaginary money and investment positions that behave in a manner similar to the real markets. Before the widespread use of online trading for the general public, paper trading was considered too difficult by many new investors. Now that computersdo most of the calculations, new investors can practice making fortunes time and time again before actually committing financially. Investors also use paper trading to test new and different investment strategies. Stock market games are often used for educational purposes.

FXdirekt Bank

2009-10-08T07:14:00.000-07:00

The FXdirekt Bank is an independent company with around 90 employees. The company headquarters are located in Krefeld, Germany and the branch office is located in Oberhausen. The FXdirekt Bank is a member of the EdW ("Entschädigungseinrichtung der Wertpapierhandelsunternehmen"), which is an organisation created to secure investor claims and is also registered as a commercial bank with the BaFin (German Federal Institute for Financial Services Supervision).

Interbank Market

2009-10-07T09:28:00.000-07:00

The interbank market is the top-level foreign exchange market where banks exchange different currencies.^[1]The banks can either deal with one another directly, or through electronic brokering platforms. The Electronic Brokering Services (EBS) and Reuters Dealing 3000 Matching are the two competitors in the electronic brokering platform business and together connect over 1000 banks.^[1] The currencies of most developed countries have floating exchange rates. These currencies do not have fixed values but, rather, values that fluctuate relative to other currencies.

The interbank market is an important segment of the foreign exchange market. It is a wholesale market through which most currency transactions are channeled. It is mainly used for trading among bankers. The 3 main constituents of the interbank market are

Foreign Exchange Market

2009-10-07T09:24:00.000-07:00

The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies. ^[1]

The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.

In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixedas per the Bretton Woods system.

Forex Swap

2009-09-30T11:02:00.001-07:00

In finance, a forex swap (or FX swap) is a simultaneous purchase and sale, or vice versa, of identical amounts of one currency for another with two different value dates (normally spot to forward).

By far and away the most common use of FX swaps is for institutions to fund their foreign exchange balances.
Once a foreign exchange transaction settles, the holder is left with a positive (or long) position in one currency, and a negative (or short) position in another. In order to collect or pay any overnight interest due on these foreign balances, at the end of every day institutions will close out any foreign balances and re-institute them for the following day. To do this they typically use tom-next swaps, buying (selling) a foreign amount settling tomorrow, and selling (buying) it back settling the day after.

Politically-Based Business Cycle

2009-09-30T11:00:00.001-07:00

Another set of models tries to derive the business cycle from political decisions. The partisan business cycle suggests that cycles result from the successive elections of administrations with different policy regimes. Regime A adopts expansionary policies, resulting in growth and inflation, but is voted out of office when inflation becomes unacceptably high. The replacement, Regime B, adopts contractionary policies reducing inflation and growth, and the downwards swing of the cycle. It is voted out of office when unemployment is too high, being replaced by Party A

Money Market

2009-09-11T13:49:00.000-07:00

In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquidityfunding for the global financial system. The money market is where short-term obligations such as Treasury bills, commercial paperand bankers' acceptances are bought and sold.

Balance sheet

2009-09-11T13:47:00.001-07:00

In financial accounting, a balance sheet or statement of financial position is a summary of a person's or organization's balances.Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a snapshot of a company's financial condition.[1] Of the four basic financial statements, the balance sheet is the only statement which applies to a single point in time

Foating Exchange Rate

2009-09-11T13:46:00.001-07:00

A Foating Exchange Rate or a flexible exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency. The opposite of a floating exchange rate is a fixed exchange rate.
There are economists who think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates. As floating exchange rates automatically adjust, they enable a country to: dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis. However, in certain situations, fixed exchange rates may be preferable for their greater stability and certainty. This may not necessarily be true, considering the results of countries that attempt to keep the prices of their currency "strong" or "high" relative to others, such as the UK or the Southeast Asia countries before the Asian currency crisis. The debate of making a choice between fixed and floating exchange rate regimes is set forth by Mundell-Fleming model, which argues that an economy cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy. It can choose any two for control, and leave third to the market forces.

Retail foreign exchange brokers

2009-09-01T14:00:00.002-07:00

There are two types of retail brokers offering the opportunity for speculative trading: retail foreign exchange brokers and market makers. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. Retail brokers, while largely controlled and regulated by the CFTC and NFA might be subject to foreign exchange scams.^[7]^[8]At present, the NFA and CFTC are imposing stricter requirements, particularly in relation to the amount of Net Capitalization required of its members. As a result many of the smaller, and perhaps questionable brokers are now gone. It is not widely understood that retail brokers and market makers typically trade against their clients and frequently take the other side of their trades. This can often create a potential conflict of interest and give rise to some of the unpleasant experiences some traders have had. A move toward NDD (No Dealing Desk) and STP (Straight Through Processing) has helped to resolve some of these concerns and restore trader confidence, but caution is still advised in ensuring that all is as it is presented.

Non-bank Foreign Exchange Companies

2009-09-01T14:00:00.001-07:00

Non-bank foreign exchange companies offer currency exchange and international payments to private individuals and companies. These are also known as foreign exchange brokers but are distinct in that they do not offer speculative trading but currency exchange with payments. I.e., there is usually a physical delivery of currency to a bank account.

It is estimated that in the UK, 14% of currency transfers/payments^[9] are made via Foreign Exchange Companies.^[10] These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank. These companies differ from Money Transfer/Remittance Companies in that they generally offer higher-value services.

Money Transfer/Remittance Companies

2009-09-01T13:59:00.002-07:00

Money transfer/remittance companies perform high-volume low-value transfers generally by economic migrants back to their home country. In 2007, the Aite Group estimated that there were $369 billion of remittances (an increase of 8% on the previous year). The four largest markets (India, China, Mexico and the Philippines) receive $95 billion. The largest and best known provider is Western Union with 345,000 agents globally.

Political conditions

2009-09-01T13:59:00.001-07:00

Internal, regional, and international political conditions and events can have a profound effect on currency markets.

All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in India, Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency.

Balance of trade

2009-09-01T13:58:00.000-07:00

The balance of trade (or net exports, sometimes symbolized asNX) is the difference between the monetary value of exports andimports in an economy over a certain period of time. It is the relationship between a nation's imports and exports.^[1] A positive balance of trade is known as a trade surplus and consists of exporting more than is imported; a negative balance of trade is known as a trade deficit or, informally, a trade gap. The balance of trade is sometimes divided into a goods and a services balance.

Bank for International Settlements

2009-09-01T13:57:00.002-07:00

The Bank for International Settlements (or BIS) is aninternational organization of central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks." ^[1] The BIS carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members. It also provides banking services, but only to central banks, or to international organizations like itself. Based in Basel, Switzerland, the BIS was established by theHague agreements of 1930. The name of the BIS in German: Bank für Internationalen Zahlungsausgleich (BIZ), in French: Banque des Reglements Internationaux (BRI), in Italian: Banca dei Regolamenti Internazionali (BRI). It has representative offices in Hong Kong andMexico City.

Regulates capital adequacy

2009-09-01T13:57:00.001-07:00

Capital adequacy policy applies to equity and capital assets. These can be overvalued in many circumstances. Accordingly the BIS requires bank capital/asset ratio to be above a prescribed minimum international standard, for the protection of all central banks involved. The BIS' main role is in setting capital adequacy requirements. From an international point of view, ensuring capital adequacy is the most important problem between central banks, as speculative lending based on inadequate underlying capital and widely varying liability rules causes economic crises as "bad money drives out good" (Gresham's Law). Specific policies are explained below.

Encourages reserve transparency

2009-09-01T13:56:00.002-07:00

Reserve policy is also important, especially to consumers and the domestic economy. To insure liquidity and limit liability to the larger economy, banks cannot create money in specific industries or regions without limit. To make bank depositing and borrowing safer for customers and reduce risk of bank runs, banks are required to set aside or "reserve".

Reserve policy is harder to standardize as it depends on local conditions and is often fine-tuned to make industry-specific or region-specific changes, especially within large developing nations. For instance, the People's Bank of China requires urban banks to hold 7% reserves while letting rural banks continue to hold only 6%, and simultaneously telling all banks that reserve requirements on certain overheated industries would rise sharply or penalties would be laid if investments in them did not stop completely. The PBoC is thus unusual in acting as a national bank, focused on the country not on the currency, but its desire to control asset inflation is increasingly shared among BIS members who fear "bubbles", and among exporting countries that find it difficult to manage the diverse requirements of the domestic economy, especially rural agriculture, and an export economy, especially in manufactured goods. Effectively, the PBoC sets different reserve levels for domestic and export styles of development. Historically, the US also did this, by dividing federal monetary management into nine regions, in which the less-developed Western US had looser policies

History of the Bank

2009-09-01T13:56:00.001-07:00

Despite its recent history of taking a narrow central bank mediation role, the BIS was originally formed to facilitate money transfers arising from settling an obligation arising from a peace treaty. After World War I, the need for the bank was suggested in 1929 by the Young Committee, as a means of transfer for German reparations payments - see Treaty of Versailles. The plan was agreed in August of that year at a conference at the Hague, and a charter for the bank was drafted at the International Bankers Conference at Baden Baden in November. The charter was adopted at a second Hague Conference on January 20, 1930.

As a result of allegations that the BIS had helped the Germans loot assets from occupied countries during World War II, the United Nations Monetary and Financial Conference recommended the "liquidation of the Bank for International Settlements at the earliest possible moment." ^[2] This task, which was originally proposed by Norway and supported by other European delegates, as well as Mortenthau and White, was never undertaken.

Forex-Trading-Made-Ez

2009-08-27T16:23:00.000-07:00

George is truly a great trader but even more important a great person. He takes the time out to answer his students and help them with anything they are struggling with. Not many people go into detail the way that he does. His videos are priceless. I suggest that anyone who is not one of his students yet, give him a shot. When I first purchased his system, I loved how simple it was. It is well put together. Another key factor about his system is that it does not require for you to stay up late for the London open or anything like that. I have a fulltime job so I'm not always excited about staying up late trying to get in a trade before 1am comes. His system is powerful enough to pull your daily target out of the market at anytime during the day, not just the London open.

Forex Cult

2009-08-27T16:20:00.000-07:00

ForexCult.com is one of a leading independent portals dedicated to the Foreign Exchange (Forex) market, it was brought to life in 2005 by a group of U.S. economists, ForexCult.com has grown to become a trusted source of Forex for thousands of users throughout the world, the ForexCult.com portal has always been trying to provide neutral and unbiased information, to enable our users to take better and more confident decisions.

On the portal you'll find: real-time quotes, news, newsletters and interactive comments of people all over the world among the most well-received content.

Furthermore, ForexCult.com sections include also a fundamental and technical tools, charts and rates along with a unique toolbar, as with these sections ForexCult.com has managed to gain the massive popularity from the Forex specialists and novice users alike so either if you're an individual professionals, a small company or a Forex Brokers and Investment Banks, your source for relevant and reliable news and articles is ForexCult.com

Forex Trading review by Author

2009-08-27T16:18:00.001-07:00

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Investment management firms

2009-08-15T11:51:00.002-07:00

Investment management firms (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.

Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades

Commercial Companies

2009-08-15T11:51:00.001-07:00

An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

Retail Forex Platform

2009-08-15T11:50:00.003-07:00

Retail forex trading is a segment of the vast foreign exchange market. It has been speculated that it represents 2 percent of the whole forex market which amounts to $50-60 billion [1][2] in daily trading turnover. Due to the increasing tendency in the past years of the gradual shift from traditional intrabank 'paper' trading to the more advanced and accurate electronic trading, there has been spur in software development in this field. This change provided different types of trading platforms and tools intended for the use by banks, portfolio managers, retail brokers and retail traders.
One of the most important tools required to perform a forex transaction is the trading platform providing retail traders and brokers with accurate currency quotes.

Politically-Based Business Cycle

2009-08-15T11:50:00.001-07:00

business cycle

2009-08-15T11:49:00.003-07:00

The term business cycle or economic cycle refers to economy-wide fluctuations in production or economic activity over several months or years, around a long-term growth trend. It typically involves shifts over time between periods of relatively rapid economic growth (expansion or boom), and periods of relative stagnation or decline (contraction or recession).[1]

These fluctuations are often measured using the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic growth do not follow a mechanical or predictable periodic pattern.

Political Conditions

2009-08-15T11:49:00.001-07:00

Internal, regional, and international political conditions and events can have a profound effect on currency markets.
All exchange rates are susceptible to political instability and anticipations about the new ruling party. Political upheaval and instability can have a negative impact on a nation's economy. For example, destabilization of coalition governments in India, Pakistan and Thailand can negatively affect the value of their currencies. Similarly, in a country experiencing financial difficulties, the rise of a political faction that is perceived to be fiscally responsible can have the opposite effect. Also, events in one country in a region may spur positive or negative interest in a neighboring country and, in the process, affect its currency.

Retail Foreign Exchange Brokers

2009-08-15T11:47:00.002-07:00

There are two types of retail brokers offering the opportunity for speculative trading: retail foreign exchange brokers and market makers. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. Retail brokers, while largely controlled and regulated by the CFTC and NFA might be subject to foreign exchange scams.[7][8] At present, the NFA and CFTC are imposing stricter requirements, particularly in relation to the amount of Net Capitalization required of its members. As a result many of the smaller, and perhaps questionable brokers are now gone. It is not widely understood that retail brokers and market makers typically trade against their clients and frequently take the other side of their trades. This can often create a potential conflict of interest and give rise to some of the unpleasant experiences some traders have had. A move toward NDD (No Dealing Desk) and STP (Straight Through Processing) has helped to resolve some of these concerns and restore trader confidence, but caution is still advised in ensuring that all is as it is presented.

linked exchange rate

2009-08-15T11:47:00.001-07:00

A linked exchange rate system is a type of exchange rate regime to link the exchange rate of a currency to another. It is the exchange rate system implemented in Hong Kong to stabilise the exchange rate between the Hong Kong dollar (HKD) and the United States dollar (USD). The Macao pataca (MOP) is similarly linked to the Hong Kong dollar.
Unlike a fixed exchange rate system, the government or central bank does not actively interfere in the foreign exchange market by controlling supply and demand of the currency in order to influence the exchange rate. The exchange rate is stabilised by a mechanism.

fixed exchange rate

2009-08-15T11:46:00.002-07:00

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.
A fixed exchange rate is usually used to stabilize the value of a currency, vis-a-vis the currency it is pegged to. This facilitates trade and investments between the two countries, and is especially useful for small economies where external trade forms a large part of their GDP.
It is also used as a means to control inflation. However, as the reference value rises and falls, so does the currency pegged to it. In addition, a fixed exchange rate prevents a government from using domestic monetary policy in order to achieve macroeconomic stability.

currency future

2009-08-15T11:46:00.001-07:00

A currency future, also FX future or foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date. Typically, one of the currencies is the US dollar. The price of a future is then in terms of US dollars per unit of other currency. This can be different from the standard way of quoting in the spot foreign exchange markets. The trade unit of each contract is then a certain amount of other currency, for instance €125,000. Most contracts have physical delivery, so for those held at the end of the last trading day, actual payments are made in each currency. However, most contracts are closed out before that. Investors can close out the contract at any time prior to the contract's delivery date.

currency swap

2009-08-15T11:45:00.002-07:00

A currency swap (or cross currency swap) is a foreign exchange agreement between two parties to exchange principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal (regarding net present value) loan in another currency. Currency swaps are motivated by comparative advantage.
Currency swaps are often combined with interest rate swaps. For example, one company would seek to swap a cash flow for their fixed rate debt denominated in US dollars for a floating-rate debt denominated in Euro. This is especially common in Europe where companies shop for the cheapest debt regardless of its denomination and then seek to exchange it for the debt in desired currency

Real estate

2009-08-15T11:45:00.001-07:00

Real estate is a legal term (in some jurisdictions, notably in the USA, United Kingdom, Canada, and Australia) that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is fixed in location.[1] Real estate law is the body of regulations and legal codes which pertain to such matters under a particular jurisdiction. Real estate is often considered synonymous with real property (also sometimes called realty), in contrast with personal property (also sometimes called chattel or personalty under chattel law or personal property law).

Commodity markets

2009-08-15T11:44:00.002-07:00

Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated commodities exchanges, in which they are bought and sold in standardized contracts.
This article focuses on the history and current debates regarding global commodity markets. It covers physical product (food, metals, electricity) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a commodity. Articles on reinsurance markets, stock markets, bond markets and currency markets cover those concerns separately and in more depth. One focus of this article is the relationship between simple commodity money and the more complex instruments offered in the commodity markets.

Money Market

2009-08-15T11:44:00.001-07:00

In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquidity funding for the global financial system. The money market is where short-term obligations such as Treasury bills, commercial paper and bankers' acceptances are bought and sold.

Registered share

2009-08-15T11:43:00.001-07:00

A Registered share is a stock that is registered on the name of the exact owner. If the owner of such a share sells his share, the new owner must register with name and address.
Registered shares offer issuers the advantage, enabling them to always know exactly who their shareholders are. Unexpected surprises with active investors could be prohibited with that stock-vehicle.

Stock Exchange

2009-08-15T11:41:00.000-07:00

A stock exchange, securities exchange or (in Europe) bourse is a corporation or mutual organization which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a stock market. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks (see stock valuation).