Choosing the Right Foreign Currency Trading Software
It can' be denied though that there are lots of trading software programs available in the market today. Some of them come for free while others can push you to make a worthwhile investment. Amidst all of these, you should always remember to exercise due caution when choosing the foreign currency trading software which you will end up using. You should get the right program that can help boost your business.
One of the most important considerations you needed to make are the currencies you would want to grow. Your business in forex relies heavily on the currencies you are willing and most comfortable to trade. Should you want to dabble on other currencies to expand your expertise, make sure that the software you will choose would also be able to cover these currencies well enough especially if they are quite risky in terms of rate value.
Customer support is also an important aspect of forex that you should take note of. Your forex software should be able to provide you assistance at the most immediate time because the business thrives in a fast paced environment.
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Showing posts with label Perspective. Show all posts
Showing posts with label Perspective. Show all posts
Sunday, August 16, 2009
Thursday, August 13, 2009
Exchange Risk
FOREX: Spot Transaction
Suppose a U.S. company orders machine tools from a company in Japan.
* Tools will be ready in six months and will cost 120 million yen.
* At the time of the order, the yen is trading at 120 to a dollar.
* U.S. company budgets $1 million in Japanese yen to be paid when it receives the tools (120,000,00 yen ¸ 120 yen per dollar = $1,000,000)
There is no guarantee that the rate will remain the same six months later.
Suppose the rate drops to 100 yen per dollar:
* Cost in U.S. dollars would increase (120,000,000 ¸ 100 = $1,200,000) by $200,000.
Conversely, if the rate goes up to 140 yen to a dollar:
* Cost in U.S. dollars would decrease (120,000,000 ¸ 140 = $857,142.86) by over $142,000
One alternative for a company is to pay for the foreign good right away to avoid the exchange rate risk. But no one wants to part with money any sooner than necessary—if the company does pay the money in advance, it loses six months’ interest and risks losing out on a favorable change in exchange rates.
Thursday, August 6, 2009
Currency
Forex : Putting your money into other currencies
Forex trading is all about putting your money into other currencies, so you can gain the interest for the night, for time period or the difference in trading money all around. Forex trading does involve other assets along with money, but because you are investing in other countries and in other businesses that are dealing in other currencies the basis for the money you make or lose will be based on the trading of money.
Constant trading is done in the forex markets as time zones will vary and the markets will open in one country while another is near closing. What happens in one market will have an effect on the other countries forex markets, but it is not always bad or good, sometimes the margins of trading are near each other.
Forex trading is all about putting your money into other currencies, so you can gain the interest for the night, for time period or the difference in trading money all around. Forex trading does involve other assets along with money, but because you are investing in other countries and in other businesses that are dealing in other currencies the basis for the money you make or lose will be based on the trading of money.
Constant trading is done in the forex markets as time zones will vary and the markets will open in one country while another is near closing. What happens in one market will have an effect on the other countries forex markets, but it is not always bad or good, sometimes the margins of trading are near each other.
Sunday, August 2, 2009
Wall Street
Advantages Forex Trading Has Over Stock Investing
Wall Street has shown us that corporate companies do not necessarily tell their investors everything and can 'simulate' growth while nothing is there. Have more control about the aspects that affect the market, and although Forex is affected by so many possibles in the world - at least you know about them.
Another thing of course is the liquidity of the market. Nobody can deny that a market as large in transaction volumes is liquid.Its very over the counter nature has made it so and this is why the Forex trade is so popular with the casual home user.
This means that investment decisions can be translated into action and profits or the avoidance of a disaster within a much shorter time that traditional markets like stock investing. Administrative procedures can be a killer - a few hours could mean the difference in points, which means you can lose money while you wait for your broker to clear your investments to be sold.
How does FX trading differ from stocks on Wall Street?
FX trades are opened then closed typically within days, sometimes within hours or minutes. A margin of only 1% is required to initiate a Forex trade with our managed accounts as opposed to 50% margin required for trading stocks. $10,000 would enable you to buy or sell $1 million worth of any currency (including US dollar).
When you sell a foreign currency against the dollar, you are buying the dollar equivalently in hopes that the dollar would rise in value and you can then cash in and close your position for a handsome profit.
Wall Street has shown us that corporate companies do not necessarily tell their investors everything and can 'simulate' growth while nothing is there. Have more control about the aspects that affect the market, and although Forex is affected by so many possibles in the world - at least you know about them.
Another thing of course is the liquidity of the market. Nobody can deny that a market as large in transaction volumes is liquid.Its very over the counter nature has made it so and this is why the Forex trade is so popular with the casual home user.
This means that investment decisions can be translated into action and profits or the avoidance of a disaster within a much shorter time that traditional markets like stock investing. Administrative procedures can be a killer - a few hours could mean the difference in points, which means you can lose money while you wait for your broker to clear your investments to be sold.
How does FX trading differ from stocks on Wall Street?
FX trades are opened then closed typically within days, sometimes within hours or minutes. A margin of only 1% is required to initiate a Forex trade with our managed accounts as opposed to 50% margin required for trading stocks. $10,000 would enable you to buy or sell $1 million worth of any currency (including US dollar).
When you sell a foreign currency against the dollar, you are buying the dollar equivalently in hopes that the dollar would rise in value and you can then cash in and close your position for a handsome profit.
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