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Tag Archive: Currency


Guest Post :

A trader is well aware that binary options trading and Forex trading are two different types of trading, both of which can bring in blogsignificant amount of profit. These two types of trading are the most common types of trading practiced and are well known to all traders. However, there exist some differences between these two types of trading. As a trader, it is important for you to know the differences in order to make the right trading decisions in the future. Binary trading is a new way of making money within a short time. On the other hand, Forex is a highly profitable market that has been into the market for quite some time now.

Knowing the Differences:

Professional experience: Continue reading

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BITCOIN – The buzz

BITCOIN has been the buzz word these days after the crisis . What in the world is a BITCOIN?”images
Let’s start by looking at our current monetary system. In most countries, a small tiny banking elite exercises total control over that nation’s money supply. And we’re just supposed to trust them to be good guys.

Yet central bankers around the world have conjured trillions of dollars out of thin air, debasing the money’s value. It’s a concept any six-year old can understand. If money grew on trees, it wouldn’t be worth very much.
This is one of the key reasons why people buy gold. You can’t just conjure gold out of thin air. It takes years of exploration and investment to pull it out of the ground. In the information age, though, we have an alternative. Continue reading

SWAPS TYPES – (Back to school)

English: Currencies exchange logo Français : L...

Continue from my last post Swaps try to understand the types of swaps :

  1. Swap in transaction: In such transaction the base currency is bought for near delivery & sold for forward delivery
  2. Swap out transactions : In such transaction the base currency is sold for near delivery & bought for forward delivery.
  3. Forward Swaps: In such transactions both the purchase and Sell transactions Continue reading

A swap can be defined as simultaneously purchase and sale of equivalent amount of base currency for 2 different maturities, essentially its a simultaneously borrowing and lending of 2 currencies between 2 banks for specific period express in the form of purchase and sell transactions. The interest rate differential payable or receivables by one of the parties is factored into exchange rates applied for the 2 components of transactions. Therefore the difference between Continue reading

Bank

RISK is a four letter word and have many definitions in different aspects. In the financial context it can be described as the probability of not achieving targeted financial performance.

Although all the business carry risk but the international business carry few additional risk exchange rate and interest rate.
Among the various participants in the foreign market the risk is faced by end users who initiate the transactions a commercial banks who provide committed rates to their Continue reading

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