Role Of Commerical Bank In Forex Market

(1) They facilitate transactions between two parties, such as companies wishing to
exchange currencies (consumers), and

(2) They speculate by buying and selling currencies. The banks take positions in certain
currencies because they believe they will be worth more (if “buying long”) or less (if
“selling short”) in the future. It has been estimated that international banks generate up to
70% of their revenues from currency speculation. Other speculators include many of the
worlds’ most successful traders, such as George Soros.

The Forex market is so large and is composed of so many participants, that no one player,
even the government central banks, can control the market. In comparison to the daily
trading volume averages of the $300 billion in the U.S. Treasury Bond market and the
approximately $100 billion exchanged in the U.S. stock markets, the FOREX is huge, and
has grown in excess of $1.5 trillion daily. It is easy to see why trading Forex online has
become such an attractive prospect for those ‘would be’ professional investors.
If we are being honest the word ‘market’ is not entirely true for Foreign Exchange since
there is no one central location for trading activity. Whilst most of the trade volume is
performed through around 300 large international banks, there are millions of trades
being executed all around the globe both online and over the telephone.

Defination Of Forex And History

Forex is derived from the words Foreign Exchange and is also occasionally referred to as ‘Spot FX’ or simply ‘FX’.

As a simple definition, Forex trading is the exchange of currencies at varying exchange
rates, which result in profit (or loss) for those who participate as traders.
Forex is derived from the words Foreign Exchange and is also occasionally referred to as ‘Spot FX’ or simply ‘FX’. As a simple definition, Forex trading is the exchange of
currencies at varying exchange rates, which result in profit (or loss) for those who
participate as traders.

The History

Established in 1971 when floating exchange rates began to materialize, the Forex market
has enjoyed huge growth, particularly since the Internet advanced to a level that enables
trade to be made easily 24 hours a day. More recently, the minimum deposit level for an
account has fallen below the $100 mark meaning currency trading is now possible by
people from all walks of life.

Historically, the FOREX interbank market was not available for small speculators. With a
previous minimum transaction size and often-stringent financial requirements, the small
trader was excluded from participation in this market. But today market maker brokers
are allowed to break down the large interbank units and offer small traders the
opportunity to buy or sell any number of these smaller units (lots).

Defination Of Forex

Forex is derived from the words Foreign Exchange and is also occasionally referred to as
‘Spot FX’ or simply ‘FX’.
As a simple definition, Forex trading is the exchange of currencies at varying exchange
rates, which result in profit (or loss) for those who participate as traders.
Forex is derived from the words Foreign Exchange and is also occasionally referred to as
‘Spot FX’ or simply ‘FX’. As a simple definition, Forex trading is the exchange of
currencies at varying exchange rates, which result in profit (or loss) for those who
participate as traders.

What Is Forex?

The market

The currency trading (FOREX) market is the biggest and the fastest growing market on
earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than
the NASDAQ daily turnover.
FOREX is one of the latest crazes to sweep the world. Unlike the stock market which is
often ruled by those with inside knowledge, FOREX gives everyone an equal footing,
you can make good money even with very little experience.
FOREX is a thrill ride that just has to be experienced!

So, I'm not trading in companies?

No, The Forex goods (or merchandise) are the currencies of various countries. You buy
Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That's all.
No expert knowledge of an industry is needed, that is the beauty of FOREX, thousands
can be made whether you are 18 or 80!
How does one profit in Forex?

Very simple and obvious: buy cheap and sell for more! The profit is generated from the
fluctuations (changes) in the currency exchange market.

The nice thing about the FOREX market, is that regular daily fluctuations, say - around
1%, are multiplied by 100! That gives you absolutely massive earning potential!
If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the
last 4 hours, your profit will be 60% on your investment! Such can happen in one
business day, or in a few hours, even minutes!

Moreover, you cannot lose more than your "margin"! You may profit unlimited amounts,
but you never lose more than what you initially risked and invested.

How do I start?

We recommend you read this e-book in full and digest all of the information that we will
give you. Our advice and information is based upon years of trading in Forex and in this
guide we aim to give you enough information to allow you to get started in currency
trading.
By carrying on reading you will learn about all of the fundamentals you need to know to
be a successful trader and we will also educate you on what to look for in choosing a
broker, training course, strategy service or even a piece of analysis software.
What’s more we have even tried the best of these services and unfortunately some of the
worst, we will tell you what these services are later so that you do not waste money on
products that simply do not live up to their promises.
So there we have it, you can start currency trading by reading this e-book and if you wish,
following our advice.

How do I trade Forex?


You select the pair of currencies with which you wish to make a Forex deal. You
determine the volume (the amount of the deal). You deposit the "margin" (collateral
needed to facilitate the deal. Usually - only a very small portion of the whole deal, say:
1% or 1:100).

Before you finally activate the deal, you can still "freeze" it for a few seconds (only
available at selected brokers). That enables you to either change the terms, or accept it as
is, or altogether regret the whole idea.

When your Forex deal is running, you can monitor its status and check scenarios online,
whenever you wish. You may change some terms in the deal, or close it. Ultimately, you
remain in control, only you can decide when the time is right to cash in your profit!
Some Forex brokers will even let you determine a "take-profit" rate, with which the deal
will close automatically for you, when and if such rate occurs in the market. Meaning:
you do not have to stay near your computer waiting for the right moment, you can go to
work, go shopping, or even got to the beach while the money is rolling in!

Vietnam Central Bank Sets USD/VND Exchange Rate At 16,972 But High For Gold shop

Vietnam's central bank set the dollar's exchange rate a tad higher at VND16,972 Wednesday.

The state-owned Vietcombank sold higher at VND17,481, compared with VND17,480 Tuesday.

Gold shops sold higher at VND17,540, compared with VND17,520 Tuesday.

Dealers said they expect the exchange rate to rise towards the weekend on speculations that dollar supply will be low this year.

State media said Tuesday remittances into Vietnam will decline in 2009 due to the ongoing economic slowdown. Remittances into the country rose 19.4% to $8 billion in 2008.

Australian Dollar Raise on ratail sales

Australian retail sales were surprisingly firm in

November for a second month running, as falling borrowing costs

and lower petrol prices helped offset economic uncertainty and

slumping household wealth.

Sales of new houses in Australia slipped in November as fears

of recession and tightening credit overshadowed falling interest

rates, an industry survey showed on Wednesday.

* The Australian dollar firmed after retail sales in

November were stronger than expected, but was soon pegged back as

some analysts warned the data masked weak sales at departmental

stores and of household goods.

* Aussie hit a high of $0.7228 after the data, but later

eased to $0.7213, and compared to $0.7111 seen here late on

Tuesday.

* The local dollar was also firm near recent highs struck

against other major currencies as investors hoped an aggressive

stimulus package from the Obama administration in the U.S. would

push the global economy and world financial markets into a quick

recovery.

* U.S. President-elect Barack Obama's stimulus package, which

may include tax cuts worth $310 billion, helped push Asian stock

markets higher on Wednesday, pointing to an improvement in

investors' appetite for riskier investments.

* The Aussie was firm around 67.73 yen, but dipped

from a near two-month high of 68.25 yen struck offshore.

* Against the euro, the Aussie traded around

0.5350 euros, compared to a near two-month high of 0.5372 euros

struck offshore.