Foreign Exchange (Forex)

The foreign exchange market (forex) is a worldwide financial market for the trading of currencies. It is open 24 hours a day except on weekends and is the largest and most liquid market in the world. A typical transaction would be the purchase of one currency with payment by another currency.

2,468 Questions
Investing and Financial Markets
Companies
Foreign Exchange (Forex)

Is Finexo forex trading platform any good?

A great place to see real reviews on Forex Brokers is ForexPeaceArmy. Be very careful when using retail brokers as there are a lot of scams and dishonesty.

385386387
Foreign Exchange (Forex)

What was the foreign exchange students name in glee?

Bob the Builder

duh broski

175176177
Pakistan
2009 Economic Stimulus Plan
Foreign Exchange (Forex)

How the next highest amount of foreign exchange comes into Pakistan apart from exports?

foreign loans

169170171
Business & Finance
Foreign Exchange (Forex)

What specific problems does foreign exchange present in an organization?

The organisation is put to exchange risk. This means that for the same product, if a business contracts with seller for a specific amount due to rate fluctuations, that will be paying more. The customs duty structure, VAT etc are directly linked to such rates which will have further impact. Cash outflow also increases thereby straining the working capital requirements. In short, this directly affects the profitability of a project/business.

147148149
Foreign Exchange (Forex)

What is the nickname of GBPUSD?

The GBPUSD pairing is known by traders as the cable, which has its origins from the time when a communications cable under the Atlantic Ocean synchronized the GBPUSD quote between the London and New York markets.

Furthermore, cable is used as a slang term in the forex market for the name of British Pound Sterling.

---

Cable is indeed correct for GBP/USD. Most pairs have nicknames. EUR/USD is nicknamed fiber.

137138139
Personal Finance
Grammar
Currency Conversions
Foreign Exchange (Forex)

What is 500000 euro in US dollar?

As of 10/13/2007 500,000 Euro = 709,305 US Dollars.

For an up-to-date conversion use the link below.

252627
Currency Trading
Foreign Exchange (Forex)

What is bid and ask rate in forex?

Bid: The price a buyer is willing to pay for a security or goods (Currency pair)

Ask: asking price, or simply ask, is a price a seller of a good is willing to accept for that particular security or goods

107108109
Foreign Exchange (Forex)

How can you upload forex charts online?

There are many sites that allow you to upload forex charts and many of them do it for free. All you have to do is browse your computer select your chart and upload it.

103104105
Foreign Exchange (Forex)

Do you need a license for forex trading?

Yes, in the US, you need to be registered with the NFA, CFTC, or SEC if you handle other people's money, but not necessarily if you are trading for yourself. If you are trading for others, you may need a license based on your country.s rules about being an adviser.

979899
Currency Conversions
Foreign Exchange (Forex)

Where can you change a 500 Euro note into Pounds Sterling in London?

A company called Thomas Exchange in London will exchange 500 euro notes into sterling for the usual Euro rate (for no extra price). They are near Oxford Circus Tube Station at 13 Maddox Street and their rates are better than all banks, the post office, m & s and travelex.

959697
Currency Trading
Foreign Exchange (Forex)

What does the MACD parameters mean in Forex trading?

MACD is based on moving average indicator. That's mean you need to set-up period parameters to see average price movement.

939495
Investing and Financial Markets
India
Commodities
Foreign Exchange (Forex)

Which commodities earn maximum foreign exchange for India?

Tea

838485
Business & Finance
Foreign Exchange (Forex)

How Foreign Exchange Differential impacts exports?

it impacts by shoveing ur dick in ur wifes best friends hole oooya

868788
Credit Reports
Currency Conversions
Foreign Exchange (Forex)

1 UK pound equals to how much Indian Rupee?

Exchange rate fluctuates every day. generally 1 Great Britain Pound = 75 INR

See the link below for current conversion rates.

404142
Business Accounting and Bookkeeping
Foreign Exchange (Forex)

What are some ways that foreign exchange rate risks can be mitigated?

The idea is to use the uneven exchange rate amounts between currencies. You will have to tre say from dollars to euros to yen and maybe one or two more, but you should end up on the pulse side.

858687
Foreign Exchange (Forex)

What is forex?

How to earn from forex?

012
Currency Trading
Foreign Exchange (Forex)

Maximum limit in investing in forex trading?

There is no upper limit.

818283
Currency Trading
Foreign Exchange (Forex)

In forex how do you make money in a downtrend?

Before currency drop, you place a "SHORT" position. After the currency drop, you will make profit.

777879
Business & Finance
Foreign Exchange (Forex)

What is the significance of foreign exchange rate risk and how can it be mitigated?

Foreign exchange rate means that 1 usd = 10 pesos. When you exchange currency, understand that it fluctuates, sometimes higher and sometimes lower.

Do your trading when it's higher b\c you get more of their dollars for your. All you can do it watch the exchange rates.

777879
Foreign Exchange (Forex)

What does forex trading involve?

Forex trading involves a third party that exchanges one currency into another. The third party has certain exchange rates to convert the currency in order to make a profit.

717273
Currency Conversions
Foreign Exchange (Forex)

How many Indian rupees for one US dollar?

Hi, The conversion rate is 1 USD = 48.1153 INR as on June 29th, 2009. The latest conversion rate can be found out from XE.com

717273
Business & Finance
Business and Industry
Foreign Exchange (Forex)

You are working in a company which has been dealing in foreign exchange your company has been the effects of recent exchange fluctuations and its impact on business your managing director has asked f?

You are working in a company which has bYou are working in a company which has been dealing in foreign exchange your company has been the effects of recent exchange fluctuations and its impact on business your managing director has asked f?"

You Are Working In A Company Which Has Been Dealing In Foreign Exchange. Your Company Has Seen The Effects Of Recent Exchange Fluctuations And Its Impact On Business. Your Managing Director Has Asked For Your Advice In The Matter And Requested For A Brief Report On The Subject. Write Such Report

Answer:

TO: THE MANAGING DIRECTOR,

FROM: FOREIGN EXCHANGE OFFICER,

DATE: 28 AUGUST, 2010

SUBJECT: BRIEF REPORT ON THE EFFECT OF RECENT EXCHANGE

RATE FLUCTUATION AND ITS IMPACT

Recent Fluctuation in Foreign Exchange Rates has greatly affected our foreign exchange business. I have gone through all the risks involved with sales and purchases made in a foreign currency and accordingly compiling this report to reduce the risks of our businesses and remain competitive internationally.

Current Foreign Exchange Market

Current Foreign Exchange Market is vast in size and scope and exists to fulfill a number of purposes ranging from the finance of cross-border investment, loans, trade in goods and services and of course, currency speculation. Trading is made for "spot" or "forward" delivery. (A spot contract is a binding obligation to buy or sell a certain amount of foreign currency at the current market rate. A forward contract is a binding obligation to buy or sell a certain amount of foreign currency at a pre-agreed rate of exchange, on or before a certain date.

Spot Dealing

Spot dealing has the advantage of being the simplest way to meet all our foreign currency requirements, but it also carries with it the greatest risk of exchange rate fluctuations, as there is no certainty of the rate until the transaction is carried out. The spot rate we receive will be set by current market conditions, the supply and demand for the currencies being traded and the amount we are dealing. Generally speaking, the larger the amount being dealt, the better the spot rate we will receive.

The Forward Market

The Forward Market requires a more complicated calculation - a forward rate is based on the prevailing spot rate plus (or minus) a premium (or discount) which are determined by the interest rate differential between the two currencies involved. The important thing to remember is that a forward rate is not a guess as to what the spot rate is going to be in the future; it is purely a mathematically driven calculation. A forward rate will protect us against unfavorable movements, but will not allow gains to be made should the exchange rate move in our favor in the period between entering the contract and final settlement of the currency.

Importers, Exporters and Exchange Rates

On the Importer or Exporter side, we find our self exposed to easily identifiable form of foreign exchange risk known as 'Transactional' exposure. This arises from our need to either buy or sell currency relating to a trade transaction in return for sterling. Movements in exchange rates can work in our favor and enhance profitability but, equally, they can have the opposite effect and seriously erode profit margins or lead to making a loss.

Emerging Markets

Certain markets, particularly in Latin America, Eastern Europe and Asia, still have developing economies which often mean that they will have restrictions in the form of legal and regulatory frameworks designed to protect their currencies and economies from speculators. This makes trading in these currencies much more difficult than with the major world currencies and we may need to consider dealing in those countries in a 'hard currency' such as the U.S. dollar instead.

Managing our Foreign Exchange Risk

The options available to us fall into three categories:

I) Do Nothing:

We might choose not to actively manage our risk, which means dealing in the spot market whenever the cash flow requirement arises. This is a very high-risk and speculative strategy, as we will never know the rate at which we will deal until the day and time the transaction takes place. Foreign exchange rates are notoriously volatile and movements make the difference between making a profit or a loss. It is impossible to properly budget and plan our business if we are relying on buying or selling our currency in the spot market.

II) Take out a Forward Foreign Exchange Contract:

As soon as we know that a foreign exchange risk will occur, we could decide to book a forward foreign exchange contract with our bank. This will enable us to fix the exchange rate immediately to give us the certainty of knowing exactly how much that foreign currency will cost or how much we will receive at the time of settlement whenever this is due to occur. As a result, we can budget with complete confidence. However, we will not be able to benefit if the exchange rate then moves in our favor as we will have entered into a binding contract which you are obliged to fulfill. We will also need to agree a credit facility with our bank for us to enter into this kind of transaction.

III) Use Currency Options:

A currency option will protect us against adverse exchange rate movements in the same way as a forward contract does, but it will also allow the potential for gains should the market move in our favor. For this reason, a currency option is often described as a forward contract that we can rip up and walk away from if we don't need it. Many banks offer currency options which will give you protection and flexibility, but this type of product will always involve a premium of some sort. The premium involved might be a cash amount or it could be factored into the pricing of the transaction.

Recommendations

We may consider opening a Foreign Currency Account if we regularly trade in a particular currency and have both revenues and expenses in that currency as this will negate to need to exchange the currency in the first place.

The method we decide to managed our Foreign Exchange Risk will depend on what is right for us but we will probably decide to use a combination of all three methods of managing foreign exchange risks to give us maximum protection and flexibility.

XYZ

Foreign Exchange Officer

Please say thanks to genious1234@hotmail.com

697071
Currency Conversions
Foreign Exchange (Forex)
Caribbean Islands

What is the exchange rate in Grenada?

The rates change every day. Use this currency converter to calculate it.

454647
Ancient History
Stock Options and Futures
Foreign Exchange (Forex)
Pulleys

How do you describe interregional trading systems between 8000 bce and 600 ce?

well mr.needle take a break not everyone is as smart as they think they are

596061
Economics
Foreign Exchange (Forex)

What is the significance of foreign exchange rate risk and how can this risk be mitigated?

Foreign exchange risk is the level of uncertainty that a company must manage for changes in foreign exchange rates, that will adversely affect the money the company receives for goods and services over a period of time.

For example, a company sells goods to a foreign company. They ship the goods today, but will not receive payment for several days, weeks or months. During this grace period, the exchange rates fluctuate. At the time of settlement, when the foreign company pays the domestic company for the goods, the rates may have traveled to a level that is less than what the company contemplated. As a result, the company may suffer a loss or the profits may erode.

535455

Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.