Asked in World Currencies
What represents the value of one nation's currency relative to the currencies of another coutry?
Asked in Economics
If consumers from Country X greatly increase their purchases of products from Country Y the value of these two countries currencies relative to one another will change in what way?
Asked in Foreign Exchange (Forex)
What is an exchange market?
The Forex market can be thought of as a large exchange booth where currencies are bought and sold against each other. If you know, for example, that the dollar is going to increase in value, you buy dollars right now, wait for the currency to rise in value and then sell your dollars for another currency later at a higher price. This is essentially how things work on the Forex market. The only difference, of course, is that on the Forex market the volumes are much larger. The fact that the price of currencies is in constant fluctuation is what makes earning money on the Forex market possible at all times. Since currencies are priced relative to each other, a loss of value in one currency necessarily entails a gain in another currency. This brings us to the idea of a currency pair, one most important concepts in trading currencies. A currency pair simply represents the price of one currency in terms of another. For example, when it is said that "EURUSD is 1.2505" it means that 1 euro costs 1.2505 dollars. Ref: alpari.com/en/beginner/about_forex/
How does a currency appreciate?
Can you give details of different currencies?
What is convertible currency?
Asked in Currency Trading, Currency Conversions
If yen was worth 0.0035 six month ago and is worth 0.0045 today how much the yen appreciated or depreciated?
Do International financial markets allow companies to exchange one currency for another?
What are the currency exchange global fluctuations for the past month?
Using Currency Values to Find Cheap Vacation Spots ?
In order to find cheap vacation spots, just look for countries where your currency is very strong. Currencies are always changing in relative value, so you need to take these changes into account. If you are using the USD, you should find a place where your dollar can buy more than it could in another country with an equally strong currency.
Asked in Industries and Professions
How might currency be a trade barrier?
Every currency is a different value and the currencies compare to each other differently. Currencies are always changing. The problem is called currency devaluation. A trade barrier is that if a dollar falls, stocks fall and prices change. One day the item's cost might be one amount and a month later the item costs way more. Also, having to convert one currency to another takes time to complete the transaction. Converting between multiple currencies takes even longer.
Asked in Economics, Stock Market
How would you describe the exchange of currencies?
Asked in Business & Finance, European Union
What are advantages of using the euro?
The biggest savings is in trade between one country and the EU, or between the EU states. Conversion of currency is complex and needs a vast accounting system. Businesses would need to hedge against currencies if they sell products in different countries that use different currencies. One common currency in the EU makes this process much easier. Another advantage to the EU states is the power of their currency as a reserve currency for the world. A currency held by many states is more attractive as a reserve currency as the market for the currency is more liquid.
What are foreign exchange and the exchange rate?
Asked in World Currencies
What countries use hard currency?
The phrase "hard currency" is normally only applied to strong, stable, easily exchangeable currencies. This would include the US Dollar, Euro, GB Pound, Japanese Yen and several other currencies. Examples of non-hard currency would be things like the Zimbabwe dollar - where the notes are difficult to exchange for another currency and where the countries inflation makes the notes worth less each week.
What is an exchange rate?
How would you accomplish exposure netting with currencies to two countries that tend to go up and down together in value?
Asked in Cuba, Currency Conversions
What is the money unit of cuba?
Asked in Currency Trading
What happens in Currency trading?
In currency trading, at the basic level the price of a currency when compared to another is basically high or low. Example the EUR/USD currency pair. Based on the general health of the two countries and various economic indicators currencies tend to fluctuate. It is this fluctuation that allows forex traders to buy low and sell high.
Asked in Currency Conversions
What is meant with v in finances?
Foreign Exchange Investors 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 ETFs An 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 Accounts Investors 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.