|
|
|
|
|
|
 |
 |
 |
 |
 |
|
|
| RATE |
BID |
ASK |
| EUR/USD |
1.2607 |
1.2610
|
| USD/JPY |
95.390 |
95.430
|
| GBP/USD |
1.4981 |
1.4986
|
| USD/CHF |
1.2202 |
1.2208
|
| AUD/USD |
0.6264 |
0.6268
|
| USD/CAD |
1.2768 |
1.2773
|
|
|
|
 |
|
 |
|
|
|
|
|
|
What is FOREX? |
|
The Foreign Exchange marketplace, often abbreviated 'FX' and called 'the FOREX,' involves the trading of one currency for another at a set ratio called the 'exchange rate.' The FOREX market does not have a single physical location, since trading occurs over the telephone and through computer terminals at hundreds of locations worldwide. In this electronically-linked market, which provides the backbone of all international capital transactions, millions of dollars are moved from one currency to another during every second of every day. The Foreign Exchange is also the world's largest liquid market: The FOREX is believed to trade in excess of $1.5 trillion per day, which is equivalent to two months of trade on the New York Stock Exchange.
|
|
What Influences the FOREX Market? |
|
Relative value of the individual currencies influences the adjustment of global prices. The Purchasing Power Parity (PPP), which is the ebb and flow of capital between nations, is the central factor that determines market momentum. Many factors can influence the direction of market prices. Inflation, changing interest rates, faith in a given country's economics, predicted solvency, political unrest - combinations of all these and more stimulate reactionary buying and selling in the FOREX market. Speculation, the buying and selling of currency based on the above, in conjunction with anticipated events, drives continual market change.
|
|
|
All of these relative currency fluctuations provide an opportunity for positive financial gain. At FINWORLD INC, our mandate is to keep you - and your portfolio -on the cutting edge of the global FOREX marketplace.
|
|
|
ECONOMIC INDICATORS
|
|
LEADING INDICATORS
|
* Trade deficits
* Gross National Product
* Industrial Production
* Unemployment Rate
* Business Inventories
|
|
* Consumer Price Index
* Producer Price Index
* Retail Sales
* Personal Income
* Prime Rate
* Discount Rate
* Federal Funds Rate
|
|
|
|
|
|
|
|
Trade Deficits
- When the export value of goods is smaller than the import value. This results in a weaker currency.
|
|
|
Gross National Product (GNP)
- The total economic output of a country, the higher the GNP the better for the country.
|
|
|
Industrial Production
- The output of an economy. The higher the figure, the stronger the economy, thus the stronger the currency.
|
|
|
Unemployment Rate
- The percentage of unemployed workers within the total population. The higher the statistic, the weaker the currency.
|
|
|
Business Inventories
- When inventories, or unsold output is high, it means the economy is slowing down, and the currency will get weaker.
|
|
|
|
|
|
|
Consumer Price Index (CPI)
- Average price of consumer goods.
|
|
|
Producer Price Index (PPI)
- Average cost of producer's to produce goods.
|
|
|
Retail Sales (RS)
- Reflects consumer purchasing power.
|
|
|
Personal Income
- Shows the change in average real income.
|
|
|
Prime Rate
- Interest rate charged to highly reputable customers.
|
|
|
Discount Rate
- Interest charged by central banks to commercial bank.
|
|
|
Federal Funds Rate
- Interbank rate for borrowing reserves to meet margin requirements.
|
|
|
|
|
|
Liquidity |
|
The efficiency of any market is determined by its liquidity. Without a doubt, the cash Forex Market is the most liquid market. Liquidity is a powerful attraction to any investor as it suggests the freedom to open and close a position at will.
|
|
Leverage |
|
Forex investors are permitted to trade foreign currencies on a highly leverage basis - up to 20 times their initial investment in the case of FINWORLD INC. An investment of $10,000 USD would permit one to trade up to $200,000 USD worth of any currency.
|
|
24 Hour Access |
|
A substantial attraction for participants in the cash Forex market is the 24 hour nature of the market. The only breaks in the market occur during a brief period over the weekend. An individual can react to news when it breaks, rather then waiting for the opening bell when everyone else has the same information, as in the case in many markets. High liquidity and 24 hour trading allow market participants to exit or open a new position regardless of the hour
|
|
Trendiness |
|
Over long historical periods currencies have shown substance and identifiable trends. Trends are typically an attraction for investment professionals as they can provide longer-term position taking opportunities. Each individual currency offers unique historical pattern of trends providing investment managers diversification opportunities within the Forex Market.
|
|
Never a Bear Market |
|
Another advantage of the Forex market is that there is no bear market, per se. Currencies are traded in pairs. Every position involves the selling of one currency and the buying of another. The potential for profit exists as long as there is movement in the exchange rate or price. One side of the pair is always gaining, and provided the investors picks the right side, a potential for profit always exist.
|
|
|
|
|
|
 |
|
| FINWORLD INC. CANADA |
|
| 130, Kingstreet, suite 1800, Toronto, Ontario, M5X 1E3, Canada |
|
 +1 416 860 6213
 info@finworld-inc.com
|
|
| Business hour - Monday to Friday - from 8:00 AM to 2:00 PM - Eastern Time |
|
| Copyright 2006, Finworld Inc., All right reserved. |
|
|
|
|
