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What is FOREX?
FOREX (Foreign Exchange Market)
Foreign Exchange Market is the arena where a nation's currency isexchanged for that of another at a mutually agreed rate. FOREXmarket has been formed in 70th, when international trade haschanged from system of fixed rates to system of floating rates ofexchange.
In fact, every national currency is merchandise, like wheat oresugar, the same medium of exchange, like gold and silver. Sincethe world changes every year faster and faster, that economicconditions of every single country (labor productivity, inflation,unemployment and so on.) depend on level of development ofanother countries more and more, and this, in turn, impacts onvalue of its currency regarding currencies of another countries.This is the main reason of the process of rate fluctuations.
New to Forex Guide
Forex is an abbreviation of Foreign Exchange. Like it pronounces Forex is the simultaneous buying and selling of a currency pair. Many currency pairs are available for trading (practically all) but traders rely most on some pairs which are called majors. These currencies are called majors because liquidity is major for these pairs and this means that you can sell or buy any of these pairs whenever you like because a lot of these money are in circulation worldwide.
Forex is a physical occurrence in the global economic system. A tourist traveling from Europe to USA exchanges euros to dollars and becomes a potential trader of Forex. Usa companies need to exchange US dollars before exporting to Europe or Japan. Every currency pair has a price which is determined by the law of demand and supply globally. If the demand for a currency is high then it gains in value. If the supply for a currency is high then it loses in value. Today, Forex liquidity is more than 3 trillion dollars daily.
“How To” Start Trading The Forex Market? (Part 5)
What are *PIPS* ?
Currencies are traded on a price/ point (pip) system. Each currency pair has its own pip value.
When you see a FOREX price quote, you'll see something listed like this:
EUR/USD 1.2210/13
Explanation:
a) If you want to BUY the EUR/USD ( meaning you BUY EUROS and SELL US$ ) you buy 100,000 EUROS and you SELL 122,130 US$, or in other words you receive 122,130 US$ for 100,000 EUROS.
B) If you want to SELL the EUR/USD ( meaning you SELL EUROS and BUY US$ ) you buy 122,100 US$ and sell 100,000 EUROS, or in other words you receive 100,000 EUROS for 122,100 US$.
Meat Buying Basics - Part 1
This article is aimed at giving some basic data to anyone who buys, cooks, or eats meat. I?ve tried to make it easily understandable, and yet give enough information to help anyone have better meat at a much lower cost.
The whole subject of meat is little understood by most people. A walk down any meat counter makes that very obvious to me. I?m often amazed to see some cut of meat ?seasoned,? or ?marinated,? for sale at $1 or $2 per pound more than exactly the same cut, but without the dime?s worth of seasoning making it look, ?oven ready.? Anyone could accomplish exactly the same effect by using the seasonings they probably have at home, yet they?ll pay $3. or $4.00 more for that ?seasoned,? 3 lb. piece of meat without really giving it any thought.
SPX & USD Relationship
The FOMC has raised the Fed Funds Rate 25 basis points (or 1/4%) at every meeting, since mid-2004, from an accommodative 1% to a possibly neutral 5%. It's widely expected the FOMC will tighten again on June 29th and there's uncertainty if further tightening will take place this year.
The first chart is a five-year weekly chart of SPX to USD (red line and right scale) and SPX (blue line and left scale). The chart shows the SPX to USD ratio and SPX are highly positively correlated, although there's some spurious correlation. The MACD indicator, above the price chart, has a negative divergence and bearish crossover, which may indicate SPX direction.
