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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.

1,131 Questions

What is the purpose of the foreign exchange market also know as the forex?

The foreign exchange market offers a variety of advantages, such as allowing geographical dispersion and the fact that it offers its services almost 24/7, meaning it is available almost all the time for people to use. It also affects exchange rates due to a range of factors.

How can I learn currency trading with online forex?

For those new to the Forex market, CMS Forex has gathered extensive online training information for those who wish to become involved with trading foreign currencies. Prepare yourself for the Forex Arena with our Forex Education material and become acquainted with the basics of the Forex market and our Forex trading platform, VT Traderâ„¢.

What is the purpose of currency trading?

The foreign exchange market (forex, FX, or currency market) is a form of exchange for the global decentralized trading of international currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. EBS and Reuters' dealing 3000 are two main interbank FX trading platforms.

Where can one find Forex Trading software?

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What are the disadvantages of foreign exchange?

I will rephrase the question: What are the disadvantages of using or holding multiple currencies? The original question is a little vague and implies that you are changing from one currency to another, so a minimum of 2 currencies are involved in the transaction.

The whole purpose of exchanging currencies is to be able to pay for goods in a different currency than you currently hold. Say for example you currently hold USD and you travel to Thailand. Most goods are available in THB. So you would have to exchange your USD --> THB in order to make the purchase. Here are the disadvantages:


1) You have to pay a fee to do this, which for a retail exchange is the minimum of the bid/ask spread. (You sell USD and buy THB).


2) If you no longer need THB, you must change it back into USD or whatever currency you want to use next. There is another exchange fee for this.


3) There is a small possibility that the banking system of the currency you are holding could become insolvent due to political pressures or economic forces, making that currency worthless or depreciate in value.


4) Different countries have different banking laws that comply primarily with either cultural customs or anti-money laundering policies.


For example, if you were to convert currency from [any] to THB and deposit it into a regular Thai bank account. Then you wish to wire money outside of the country as a foreign national without a work permit, you may run into problems. You would have to have an alternative method of transferring the funds outside the country.


There are numerous advantages also to holding multiple currencies; basically the opposite is true for the reasons above. It is possible for certain currency to APPRECIATE in value. Also, there may be greater flexibility in the ability to move money around in certain countries vs others.

Is easy forex a safe way to make money?

Easy-forex is an online foreign exchange trading site. The website itself warns that foreign exchange trading is quite risky. Clients hope to make money by betting on the change in exchange rate of two currencies. These rates are volatile and making money through this method is difficult.

What company specializes in online currency trading?

FOREX is renowned for providing consumers with an online currency trading system. Currency can be traded through their website 24 hours a day, five days a week.

How do I exchange my money for foreign currency?

If you want to exchange your cash for foreign currency, you can visit a bureau de change which will exchange the currency for you. This will often entail a small processing fee. It's best to shop around as different companies offer different rates.

Who are the top three forex brokers in the foreign exchange market?

Using the most recent data from 2012, Deutsche Bank, Citi and Barclay are the top three forex brokers in the foreign exchange market. Please note that in addition to institutional clients, all three banks cater to retail client as well.

What is an online trading platform?

The application of blockchain technology in securities trading and clearing system can not only improve data security and information transparency, but also improve the efficiency of transaction execution.Although maintaining multiple back-up copies of the blockchain database is not more efficient in theory than maintaining a single centralized database, combined with the actual situation of securities trading and clearing, through the blockchain technology, all parties involved in the transaction can maintain the database containing the same transaction information, which can greatly reduce the need for manual reconciliation and significantly reduce the coordination cost.Goldman Sachs estimates that if blockchain technology is initially applied to the transaction clearing system, the labor and IT costs saved alone will be equivalent to 16% of the total transaction costs of the entire U.S. stock market.

A securities trading system based on blockchain technology shall at least include 3 sub modules, namely registration and custody, clearing and settlement, and securities trading, so as to realize the closed-loop system from quotation matching of securities to settlement and settlement [2].In the short-term application, the centralized quotation and matching system can be temporarily retained in combination with the actual situation of the capital market. In the long-term planning, the securities issuance module should be added to integrate the primary market into the blockchain system, and the market transparency and effectiveness can be comprehensively improved by taking advantage of the unique advantages of the blockchain.

(1) securities registration and custody ОАО "Завод Модуль" applying the blockchain technology, the securities registration status and transaction information (such as transaction records, voting at shareholders' meetings, equity pledge status and restriction conditions) are stored in the distributed account book of each node (i.e. market participants), fundamentally changing the centralized securities registration model, effectively reducing transaction costs and improving market liquidity.

(2) securities clearing and settlement module.Taking advantage of the inseparability of the block in the blockchain technology, the securities settlement and cash redemption instructions are packaged in the same block to eliminate the clearing error caused by the instruction time difference.The application of blockchain technology in this module will strongly promote the process of procedural and automated securities clearing and settlement, and the actual time of securities trading will be greatly reduced, or even the T+0 settlement of securities trading may be realized, so as to further improve the market liquidity.

(3) securities trading module.For the A share market with active trading and high market liquidity, the model of combining the centralized bidding trading system with the registration and settlement system based on the blockchain can be considered to ensure the processing capacity of concurrent requests, greatly shorten the actual transaction time and effectively improve market liquidity;For the over-the-counter equity transfer system with incomplete trading system and small trading volume, the reconstruction of trading system based on blockchain technology can be completed at one stroke.

(4) securities issuance module.The securities issuance module based on the blockchain technology can include non-public information in the stock issuance stage into the blockchain, which is of great significance for regulating the order of the primary market. The transparency and irrevocability of the blockchain will block the collusion space between the issuer and the investment bank, and effectively prevent the occurrence of fraudulent issuance.The introduction of the over-the-counter trading pilot in the securities issuance module aims to solve the pain points of information asymmetry in these markets, which helps to protect and attract investors.

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Why government intervene in the foreign exchange rate market?

The primary reason why any gov't would intervene in the FX markets is to effect their monetary policy directly onto the value of their currency against other currencies (the exchange rate). The reasons why a gov't want to do this are plenty, but the usual reasons are:

1) Affect the current price of goods domestically.

2) Encourageimportsor exports, depending on the goods.

3) Stimulate the local economy

4) Stimulate the economy of a friendly emerging nation.



There are times where just the news of a change is enough to effect a significant outcome in the exchange rate. But other times, direct buying/selling or trading of currency notes(or currency equivalent like bonds and otherpromissorynotes)


How does one get started trading with Forex?

You will need to consider your options, to decide on which broker(s) to choose. It is best to try a 30 day demo account to make sure you are happy with your decision.

What are the benefits of online trading?

Online trading is not only easy but hassle-free too. It saves on to a lot of time and energy. Also, you can have a watch over the stock market to buy and sell shares as and when they rise and fall.

What would the purpose of FOREX be?

FOREX is the business of foreign exchange trading markets. It is essentially a connected network of foreign global information and can be beneficial to those involved.

How is personal information protected while trading online?

There are many ways that personal information is protected while trading online. One way is the create a strong username and password that cannot be easily guessed. Another is using a secure server.

Where can one find a Forex broker?

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How is the information in a Forex account kept secure?

While there are many trusted Forex Brokers out in the market, there still exist Forex scams. These are fraudulent schemes drawn from the claim that merchants and tradesmen can make profit from trading in the foreign market. However, the information in a Forex account is kept secure through the use of holding all client money in segregated accounts, which will allow customer assets to be separate from those of the providing companies, so that in the event of insolvency, clientele money is secured. In addition to segregation of accounts, all non-fraudulent companies will be certified by the government further protecting the account.

How does CFD trading work?

CFD is an acronym for 'Contract for Difference.' In this kind of trading, there will not be any physical delivery of a product or service. CFD is a contract between a trader and a CFD Provider. Both parties agree to cash-settle the price difference of an underlying asset while opening and closing the trade.

Let us understand this in simple terms. The CFD tracks the price of an underlying asset, which can be stocks, forex, precious metals, or commodities. So, the trader speculates the price change and enters into a contract with the CFD Broker or Provider. The trader does not buy the underlying asset but anticipates the rise or fall in its price.

Traders profit from the rise or fall of the (underlying asset's) price if their prediction goes correct.

To understand this trading instrument better, I recommend you to read the recently published TraderMade Blog - What is CFD? Why Use CFD API? They have explained various aspects of CFD, using CFD Data API, and the importance of working with a reputed CFD data vendor.

How is foreign currency calculated using a Currency Converter?

Foreign currency is calculated using the average market value of the currency over a 24 hour period and then comparing that value to other currencies. This is why exchange rates can vary from day to day.

What sort of services does forex trading offer?

Forex trading relates to trading foreign currency for profit. It provides currency conversion to aid international trade and investment.

What are cash trading advantages?

you get a certain profit as an agent , else you get the money from fluctuations in global market and respective currencies

How can you profit from foreign exchange?

You can trade currency through forex and earn a lot of money by doing so.

Is Forex is possible to take it as a money making machine?

Forex is a very volatile business because of the leverage involved, which can cause undesireable results to your capital. It is not a money making machine no matter how fascinating most Forex agents paints it. Statistics put's it that 80 to 90 percent of traders are not successful.

What are foreign exchange rates and how are they determined?

Crudely, they can be thought of as "how much of currency X can I buy for one unit of currency Y" or vice versa.

How they're determined is complicated, but essentially eventually boil down into one of two ways:

"I can buy x grams of gold for $y, and sell x grams of gold for z yen/pounds/marks/euros/whatever, so $y = z whatevers"

The government issuing a currency specifies the exchange rate, which may or may not bear any relation whatsoever to the actual relative values of the currencies in terms of purchasing power. Governments that do this tend to be on the more dictatorial side, and generally don't allow their citizens to convert their pobble beads into dollars (or other foreign currency) ... the rate is one way; "20 pobble beads for 1 dollar," generally can only legally be done at highly-regulated locations (like branches of the national bank), and to change back, you have to go to the national bank and show a receipt proving you changed at least that many dollars into pobble beads in the first place.