Forex Tutorial: What is Currency Trading? What's Forex?

The currency market is that the "place" where monies are traded. Currencies are crucial to the majority of people round the world, if or not they realize it or not, because monies will need to be traded so as to run foreign exchange and business.
If you're dwelling inside the U.S. and wish to purchase cheese in France, either you or the business which you purchase the cheese out of needs to cover the French to the cheese at Euros (EUR). This usually means that the U.S. importer could need to swap the equal worth of U.S. dollars (2500) to Euros. The same holds for travel.
A French tourist in Egypt cannot cover in Euros to observe that the pyramids as it is perhaps not the locally accepted money. Therefore, the tourist needs to swap the Euros to your local money, in this event the Egyptian pound, even at the present exchange rate. The will need to swap monies could be the principal reason why the currency market is the largest, most liquid financial market on earth. It dwarfs other niches in dimension, although the stock exchange, using a typical traded price of approximately U.S. 00 billion each day. (the sum entire volume varies all of the time, however at August 2012, the Bank for International Settlements (BIS) reported that the currency market traded at excess of U.S. .9 trillion daily) 1 unique facet of the global market is that there isn't any central market place for forex. Rather, money trading has been conducted electronically over the counter (OTC), meaning that most trades occur via computer networks between dealers round the planet, as opposed to using a single centralized market.
The industry is available twenty four hours each day, five 5 days weekly, and monies are traded worldwide from the significant financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - around nearly every time zone. This usually means that if the trading day at the U.S. finishes, the foreign exchange market starts afresh in Tokyo and Hong Kong.

Joint Venture

Definition: Joint Venture can be described as a business arrangement, wherein two or more independent firms come together to form a legally independent undertaking, for a stipulated period, to fulfil a specific purpose such as accomplishing a task, activity or project. In other words, it is a temporary partnership, established for a definite purpose, which…

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Process Analysis

Definition: Process Analysis can be understood as the rational breakdown of the production process into different phases, that turns input into output. It refers to the full-fledged analysis of the business process, which incorporates a series of logically linked routine activities, that uses the resources of the organization, to transform an object, with the aim…

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Job Satisfaction

Definition: Job Satisfaction, as the name suggests, is the feeling of contentment or a sense of accomplishment, which an employee derives from his/her job. It is a result of appraisal that causes one to attain their job values or meet out their basic needs. It helps in determining, to what extent a person likes or…

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Licensing

Definition: Licensing is defined as a business arrangement, wherein a company authorizes another company by issuing a license to temporarily access its intellectual property rights, i.e. manufacturing process, brand name, copyright, trademark, patent, technology, trade secret, etc. for adequate consideration and under specified conditions. The firm that permits another firm to use its intangible assets…

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Strategic Management

Definition: The term ‘strategic management’ is used to denote a branch of management that is concerned with the development of strategic vision, setting out objectives, formulating and implementing strategies and introducing corrective measures for the deviations (if any) to reach the organization’s strategic intent. It has two-fold objectives: To gain competitive advantage, with an aim…

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Retailing

Definition: Retailing is a distribution process, in which all the activities involved in selling the merchandise directly to the final consumer (i.e. the one who intends to use the product) are included. It encompasses sale of goods and services from a point of purchase to the end user, who is going to use that product.…

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Cost of Capital

Definition: As it is evident from the name, cost of capital refers to the weighted average cost of various capital components, i.e. sources of finance, employed by the firm such as equity, preference or debt. In finer terms, it is the rate of return, that must be received by the firm on its investment projects,…

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Accrual Concept

Definition: The accrual concept is one of three basic accounting concept, others are going concern and consistency. As per this concept, the recognition of the transactions and events as and when they arise, i.e. on mercantile basis, rather than on cash basis in which the transaction is recorded in the books of accounts when the…

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Differentiation Strategy

Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market. It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. Differentiation…

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Environmental Analysis

Definition: Environmental Analysis is described as the process which examines all the components, internal or external, that has an influence on the performance of the organization. The internal components indicate the strengths and weakness of the business entity whereas the external components represent the opportunities and threats outside the organization. To perform environmental analysis, a constant…

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