Forex Made Easy » currency

Q&A: Can someone explain to me the difference in effects between currency devaluation and internal inflation?

admin — Tue, 07 Feb 2012 08:47:20 +0000

Question by : Can someone explain to me the difference in effects between currency devaluation and internal inflation?
When I say currency devaluation I mean with respect to our trade deficits with other countries and interest rates.

With inflation, I mean an increase in the money supply.

Thanks in advance!

Best answer:

Answer by Anjaree
A currency devaluation will increase exports which cause aggregate demand to shift to the right.It is a main cause of a demand-pull inflation internally.This will also have a chain effect to cause institutional equation,a push to raise wage in organizations.

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How can I trade on currency rupee dollar?

admin — Mon, 06 Feb 2012 16:48:24 +0000

Question by rotkark: How can I trade on currency rupee dollar?

Best answer:

Answer by Hgh
travel

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Q&A: Give it how many days before the Euro currency comes to a total collapse?

admin — Sat, 04 Feb 2012 00:47:23 +0000

Question by : Give it how many days before the Euro currency comes to a total collapse?
Everyday you read something bad about Europe.

What will be the impact of a total currency collapse? Will it lead to internal wars between European countries? Will America stay immune from these trends? Can America do without trading with Europe?

Best answer:

Answer by Scott Stevenson
While I don’t think we’re going to see war between the countries that have used the Euro, I personally will be surprised if Jan 1, 2013 rolls around and there isn’t at least a plan in place for countries to return to their former currencies.

The US will still be able to trade with the Eurozone countries even if they go back to their marks, francs, and lira. We traded with them just fine before the Euro, so there’s no reason to think we wouldn’t be able to trade with them afterwards.

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Is it possible to buy USD then use USD to buy another currency?

admin — Fri, 03 Feb 2012 20:47:31 +0000

Question by : Is it possible to buy USD then use USD to buy another currency?
Ok, so just say I live in Australia and I want other currencies to trade other than AUD/USD. can I buy USD then buy Euro for example.

So from AUD/USD then use the USD to buy EUROS.

Thanks

Best answer:

Answer by rtfm
Well, yeah, but then you’d be paying double the conversion rates. Why not just use your AUD to buy the EUR?

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What are the risks or advantages of owning the Swedish Krona? Investors what about trading this currency?

admin — Thu, 02 Feb 2012 00:49:43 +0000

Question by : What are the risks or advantages of owning the Swedish Krona? Investors what about trading this currency?

thanks for both the answers so far.

The ETF symbol is FXS, it trades around $ 150 a share; pays a dividend but as David said is VERY illiquid, low volume.

To follow up, wanted to ask about Sweden’s Monetary Policy, how it may influence the Krona, and what is the relation of the Krona to the Euro and Gold? – TY
thanks for both the answers so far.

The ETF symbol is FXS, it trades around $ 150 a share; pays a dividend but as David said is VERY illiquid, low volume.

To follow up, wanted to ask about Sweden’s Monetary Policy, how it may influence the Krona, and what is the relation of the Krona to the Euro and Gold? – TY

Best answer:

Answer by Ryan
both Scandinavian countries look as though they are on the up, but with the euro crises and there seems to be a bad news coming out of the US. I wouldnt invest in them.

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How is the value of currency weighed and calculated relative to other currencies.?

admin — Wed, 01 Feb 2012 16:48:14 +0000

Question by Wouldn’t you know it: How is the value of currency weighed and calculated relative to other currencies.?
In terms a layman can understand, please explain how the value of currency is determined relative to other currencies? You answer doesn’t have to be terrible complex as I wouldn’t understand the answer anyways. Each day money is gained and lost forex trading. How is the value of each currency determined? Why would a pound be worth more than an American dollar today, but 5 months from now its relative value could shrink or grow. What changes occur that would cause the rise and fall of values between currencies?

Best answer:

Answer by Jeremy
Currency value is determine by the purchasers of the currency. These are primarily travelers, governments and Forex traders. FOREX stands for Foreign Exchange. There are many factors that currency traders, governments and businesses take into consideration in determining the fair market value of a currency.

Fair mrket value is the price at which a willing buyer and a willing seller come together. The buyer must factor in many elements and considerations to try to accurately assess a currency’s value at any given time.

Factors affecting currency value are political situation and stability of the country, economic situation (jobs, unemployment, work ethic, infrastructure, inflation and direction of the economy), perception from outside, demographics, isolation vs. openness (for example China is becoming more open, more transparent and this helps. Cuba is very closed and isolated. Venezuela is becoming more isolated by some of its recent actions), natural resources, weather factors such as drought, tsunamis, earthquake and floods, war and conflicts.

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Best places to trade in one currency for another?

admin — Sat, 28 Jan 2012 08:48:30 +0000

Question by : Best places to trade in one currency for another?
Where do you go to trade one currency for another ?

Best answer:

Answer by mrs:)nick:)j:)jonas:)
currency exchange… duh

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what is the bottom line on currency trading?

admin — Sat, 28 Jan 2012 00:48:30 +0000

Question by Fredrick T: what is the bottom line on currency trading?
There are robotic programs but I understand they need a broker due to becoming less effective after time because new robots are introduced and other factors.
Having a physical address is also not often the case for the traders so a brokerage also works for that.
The thing is finding a reputable broker with straight forward and reasonable fees is elusive. Any general thoughts from experience ideas on this investment and estimates on the bottom line returns on investments greatly and kindly appreciated.
I do not know much about this at all. I do not know relevant specifics as intended by the industry that makes obstruction and mystifying part of their marketing plan. So in fact I “do not know what I am talking about” that is why I am asking for input; Thank you

Best answer:

Answer by Common Sense
What are you talking about???????

“There are robotic programs but I understand they need a broker due to becoming less effective after time because new robots are introduced and other factors.”

All trading changes all the time. The only traders that succeed are the ones prepared to change regularly. A person or a robot needs a broker. A robot will only work well if you have 3-5 years of highly successful trading experience. Robots don’t work well for many with 3-5 years of experience. They never work well for amateurs.

Brokers in FX are all bad. Your job is to find the least bad.

My favorites include;
GFT
InterbankFX

I believe InterbankFX allows robots. I’m not sure about GFT. The most important thing about a broker is the Platform & execution.

It takes (on average) 3-5 years to learn & be profitable in FX. Most people wipe out their accounts or simply quit in less than 12 months.

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Q&A: How does a country make a new currency?

admin — Fri, 27 Jan 2012 04:47:18 +0000

Question by johnny T: How does a country make a new currency?
lets say that your the leader of a poor country, but suddenly your country experiences a huge economic growth but your current currency is trading at 1000 per 1 US dollar, not to mention that your currency is easy to counterfeit due to lack of security which therefore forced the IMF to increase how much your currency is worth and you decide to get rid of the currency and create a new one, how exactly would you do it?

Best answer:

Answer by michinoku2001
Usually there is a “trade-in” period where people can say….go to the bank and exchange 1000 old bibobs for 1 newly printed doolie. Accounts get switched over automatically. Due to Gresham’s Law, it’s not all that hard to replace a currency with a new one. Just look at how Confederate or Newfoundland money trades above its face value, despite being “worthless”.

The old bibobs that get turned in are destroyed, therefore anyone who forgets to exchange their bibobs for doolies just has to wait a while and their bibobs will eventually be worth more than the old bibob/doolie exchange rate would have it. Even oddball currencies like playing cards signed by the governor, or occupation scripts, etc., are often worth much more than their face value now.

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Q&A: what is currency trading?

admin — Thu, 26 Jan 2012 00:48:05 +0000

Question by : what is currency trading?

Best answer:

Answer by smahadevan39
Currency dealing is buying and selling of various currencies.
Mostly the volume of currency is dealing is huge and good experience nd
ability to take quick decision is required. In currency dealing buying or selling may be
routed through three / four currencies to take advantage of difference in rate
instead of direct ( one to one) dealing.

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