Tag Archives: foreign currency

Positive And Negative Impacts Of Currency Conversion

Those familiar with forex trading and the foreign currency exchange market know that the value of a currency can go either way in seconds, allowing forex trades to be either profitable or loss inducing.

However, currency conversions have an impact on the entire economy and businesses and people around the world can gain profit or incur loses depending on the current foreign currency exchange rates.

Multi-national corporations can see their profits drop significantly if their home currency depreciates against other major world currencies. At present, the Euro is strong against the U.S. dollar and those America-based corporations that import raw materials from Euro-denominated territories have to pay higher price for these imports.

Other companies that do not import raw materials from Europe but have many workers on their payrolls that receive their wages in Euro will also suffer from the strong Euro and will see their wage costs go up, which in turn will affect their profits.

In contrast, companies whose primary business generates revenue in Euros, while paying their workers in U.S. dollars, will benefit from the weak greenback and will see their wage costs reduced. As a rule, U.S.-based exporters will benefit from the present situation because a currency conversion between a weak dollar and strong Euro creates increases demand for cheaper goods manufactured in the United States.

Individuals in the euro-zone are in strong position to buy foreign goods, property and to travel abroad in a scenario in which the Euro appreciates against the other major currencies. If the cost of a trip to Hawaii stood at USD 1,000 a year ago and the price is unchanged but meanwhile the Euro gained, say 15 percent, against the U.S. dollar, a European tourist will have to pay 15 percent less for his vacation. The same applies to buying property the price of which is denominated in U.S. dollars. Imported goods become more affordable to customers who are paid in Euros because their purchasing power increases while the price of U.S. dollar-denominated goods decreases.

Hence, businesses and individuals alike should try to protect themselves against currency conversion fluctuations. A good idea is to consult your forex broker or to find a reputable one who can advise you on expected currency moves. The foreign currency exchange market is highly volatile and it is hard to forecast the movement of a currency pair if you are not familiar with the fundamental factors determining the value of a currency. Your forex broker can also diversify your existing currency portfolio or to create one for you in order to protect you from incurring losses in case your home currency starts to depreciate.

If you are planning a trip abroad or intend to purchase foreign property your forexd ealercan advise you on the best time to conduct such a deal. In addition, some Forex brokers and dealers can offer you a better currency exchange rate compared to local high street banks.

Understanding how currency conversion works will allow you to take advantage of foreign currency exchange rate fluctuations and not only save money but also gain profit from the ever fluctuating exchange rates.

Milton Nichols writes articles relating to currency services. If you need to make a large or regular overseas payment consider the help of a currency exchange rate specialist.

Foreign Exchange Forward Contracts Explained


A Forward Contract allows you to take advantage of current market prices, without having to pay all the funds now. With contracts available up to 1 year, and open periods up to 180 days, one of our dedicated Foreign Currency Exchange Specialists will work with you to determine what the best strategy is for your needs. The contract rate is determined by the length of the contract, current spot rate and the interest rate conditions of the two countries (currencies). Many companies choose to lock in forward contracts to manage foreign currency exchange risk in the future.

Competing for business overseas? Forward contracts eliminate your exposure to volatile currency swings and provide you with security and peace of mind on your foreign payables and receivables. Buying a large piece of equipment in 6 months? Get into a forward contract today and know what your costs will be when it’s time to pay for the equipment.

For more information visit http://fx.olympiatrust.com/Corporate_forward.php
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FX Swap Regulation in Limbo - October 12th and Beyond

http://blog.numerix.com | www.numerix.com As the Oct. 12 deadline looms, our Numerix FX Derivatives expert sits down to discuss evolving regulation around FX Swaps. He breaks down reasons financial institutions are increasingly anxious about the new rules, despite some assurances from the Treasury Department that foreign exchange swaps would be exempt, as well as the logic for the potential FX Swap exemption and what these rules would mean going forward.
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Currency Swaps

More videos at http://facpub.stjohns.edu/~moyr/videoonyoutube.htm
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Members :: Treasury Consulting LLP Pleased to Present Video Titled – ” World of Foreign Exchange (FX) Swaps “. Video would be covering world of Foreign Exchange (FX) Swaps like Foreign Currency Swaps , Libor Swaps, Quanto Swaps , Local Currency Swaps. Video do cover $ Swaps, Reverse $ Swaps , Fixed Rate Swaps, Floating Rate Foreign Currency Swaps, Overnight Index Swaps (OIS) , CMT Swaps, CMT Spread Swaps, G Sec Swaps

You are most welcome to connect with us at 91-9899242978 (Handheld) , Rahul.magan@treasuryconsulting.in , Info@treasuryconsulting.in , Skype ID ~ Rahul5327 , Twitter @ Rahumagan8 or our website – www.treasuryconsulting.in
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Foreign Currency Exchange Broker


Forex, foreign currency exchange market is the largest financial business in the world. Forex is dealing with millions of dollars every day and the constant change of currency conversion rate is the main factor of this currency exchange trading industry. The trading is done between financial institutions, banks and governments and it was not open for the public for a long period of time, it has only a trade between high level institutions. Later Forex was launched to the public.

As an Individual, you can not trade directly in this market; you can only participate through foreign currency exchange broker or banks as they are the smallest element in the industry. Many companies start foreign exchange brokerage and in this industries you do not need to provide any commission after selling. The brokers make profit by helping their clients buy and sell contracts.

Using a foreign currency exchange broker means you get the most out of your foreign exchange transaction and the benefits are:

  • You get the best foreign currency exchange rates that is available
  • You get much better deal on foreign exchange than you would with any bank
  • You are not charged for a high commission fees and there are no other charges
  • Foreign exchange broker will help protect you from adverse exchange rate movements
  • It will guarantee you the fastest available international payments
  • It will provide you more proactive account management and better customer service
  • Foreign currency exchange broker will have unrivaled knowledge of currency markets and trends

What does exactly foreign currency trading broker do?

First you need to understand one thing that separates a foreign currency exchange broker from seller and buyers; they act as a mediator or link between buyers and sellers and they are not the ones that have the treaties. They are not the person who converges values ​​and they are not the ones in charge of keeping it as well.

He knows when the best is and when it would be the best time to sell and identify profitable ventures in the market. With growing technological and Internet software industries foreign currency exchange brokers are aware of new forex technology that makes the whole process of trading much efficient. This is also the reason why certain forex system has been purchased trough brokers. Some of them end up creating such a system based on the combination of their own knowledge and industry insight with old age forex trading methods.

Forex broker often starts like any typical forex interpreter. They used to be buyers and sellers themselves. You have to start from the bottom if you really want to become a forex broker. You must study it from the lower class and only that way you can understand what completely happened to a buyers and sellers and this is the only way to understand it completely. When you start from the bottom you need to find your way to rise up and be able to learn how to do it.

Today, in 2010 internet era anyone can enter into this foreign currency exchange market. This type of trade has become popular work from home business for many individuals. As you can enter into the foreign currency exchange market only trough brokers you are free from the hassle of actual selling and buying currencies. All you need to do is manage your forex exchange account with the broker and watch the industry and trade at the right time. If you are able to follow the change in the conversion rate and determine the currency that is about to increase in value, then you can make good money income from the forex.


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