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Trading foreign currencies refers to the buying and selling of various currencies at a profit.
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∙ 10y ago
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Trade weighted index?
a representation of the average exchange rate between one country and a variety of foreign currencies according to their relative importance to their trade.
What exactly does the term forex trading refer to?
Forex trading is "foreign exchange trading". That is, it deals with trading world currencies. http://www.forextrading.com/ is a website that could offer help to someone looking to trade foreign currencies; say the Japanese yen for US dollars.
How can one buy foreign currency for investment purposes?
To buy foreign currency for investment purposes you can contact a Exchange Trade Funds broker. They are brokers that specialize in foreign currency and can help you choose the right currencies.
What is the function of authorized dealer foreign exchange?
AD Category "A" branches are authorised to maintain Foreign Currency Accounts and also open and maiontain NOSTRO Accounts. "B" categy branches handle trade and Service related transactions denominated in foreign currencies and Rupees and also operate the Nostro accounts. C Category branches handle trade and Service related transactions denominated in foreign currencies and Rupees but have report through a Link Office, B category branch................
How does foreign exchange risk cause loss and collapse of multinational companies?
They trade in various currencies/ if the currencies fluctuate they may lose lots of money because they calculate on an exchange rate and it varies! Remember - they deal in millions at a time
FX trade refers to what type of trading?
FX, also called Forex is a trading process that specializes in the trading of foreign currencies (Forex is a portmanteau of Foreign and exchange). It is also referred to as a currency market.
What is the current foreign exchange rate for currencies?
You can update the foreign exchange rate of currencies in the Internet or on forex brokers, such as alpari.com/#informer=quotes or any other ones.
Why some currencies are worth more than others?
it depends on many factors such as interest rate,economy health and foreign trade. if your interest rate is high, investers are more willing to buy your currency as it will have high return for them. if your inflation is low, you are going to have more investors thus more demand for your local currency. the value of your currency will go up if you have foreign trade(exports) by wich foreign currencies enter your country resulting in demand and uppreciating local currency.
What is forex mutual funds exactly?
Forex mutual funds trade foreign currencies,are very liquid and difficult for individual investors to access. Look for a broker that specializes in these funds.
What is the strength of the dollar against foreign currencies?
exchange rate
What is forex trading, and how is it used?
Forex trading deals with the world currencies. Forex actually is short for Foreign Exchange. Countries will trade their currencies to gamble on the current exchange rates. Since the rates change daily and a currency changes in relation to economic conditions and emergencies.
Currency Options?
Foreign ExchangeInvestors who wish to own foreign currencies directly can open an account with a foreign exchange broker. Currencies are bought and sold constantly. An investor can likely find a buyer or a seller for any currency pair he wishes to trade. The most popular trade in foreign exchange is the carry trade. The investor purchases a pair consisting of currencies with high and low interest rates. By purchasing a pair where he sells the low-rate currency and buys the high-rate currency, he can take advantage of the rate difference and make a tidy profit. Foreign exchange is the easiest way to buy foreign currencies directly with no hassle. Foreign exchange is risky and requires the constant monitoring of exchange rates and their influences.Currency-Based ETFsAn exchange-traded fund (ETF) is like a mutual fund that trades on an exchange as a security. Currency-based ETFs can help investors take advantage of currency fluctuations or hedge against their own currency movements. Multiple ETFs that track foreign currencies exist, like the popular CurrencyShares series, which track everything from the euro to the Canadian dollar. CurrencyShares ETFs buy and hold foreign currencies directly instead of using futures contracts or swaps, which make them slightly less risky. Investors in these ETFs make money if the foreign currency strengthens, and lose money if the currency weakens. Currency-based ETFs are convenient and liquid, enabling investors to quickly open and close positions, if necessary.Foreign Bank AccountsInvestors can also go the old-fashioned route and simply open a bank account in a foreign country. Alternatively, they can open an account with a domestic branch of a foreign bank. Holding physical foreign currency satisfies investors who are concerned with civil or social unrest. Another option is to purchase a certificate of deposit (CD) denominated in a foreign currency.EverBank, an online bank, currently offers WorldCurrency CDs for single currencies and baskets of currencies. Investors make money from the interest rate the CD pays as well as from currency appreciation. Physical currency is the oldest form of investing in foreign currencies. Today, it serves investors who practice it well. Currencies are the grease that oil the global economic machine.
