The GDP (Gross Domestic Product) report is released quarterly. It is a strong indicator of the current economic climate, and foreign exchange traders, investors and currency brokers watch it closely to see what the impact will be on their trading accounts.
In many ways, the foreign exchange has much in common with the stock exchange. Market trends, bulls and bears are all terms which are freely bandied about – terms which leave the uninitiated scratching their heads in bewilderment. What does it all mean?
If you listened to foreign investors a year ago, you may well have thought the days of sterling were numbered. Certainly, currency brokers were keeping a close eye on the performance of the dollar and the Euro – both of which kicked off 2009 performing strongly on the foreign exchange. The same couldn’t be said …
Foreign currency brokers make a profit by setting a spread – this is the difference between the bid and the ask price of a foreign currency – i.e. the price it is bought at and the price it is sold at. Currency pairs are quoted as a base currency against a counter, or quote currency.
Foreign exchange brokers make a profit from currency exchange by setting a spread – this is the difference between what a foreign currency can be bought at, and what it can be sold at. Brokers make a profit due to the constant shifting of values between currencies. To the untrained eye, these movements look small. …
The largest online brokers are called investment banks, though they have very little to do with the commercial banking system. The brokerage giants have a tremendous influence on foreign exchange, so it’s worth taking a look at how they operate – and why coming to independent brokers like us at Pure FX is still the …
We at Pure FX routinely engage in foreign currency exchange on behalf of our customers – online currency brokerage is one of the fastest growing areas of e-commerce. Many who once made their living on the stock exchange are switching to this more lucrative method of investment and speculation.
We at Pure FX try to make things as simple as possible for our clients. Foreign currency trading has its own language, which can often be a closed book to non-traders. Here, we explain some of the terms you might hear being used:
We at Pure FX work constantly to get our clients the best exchange rates. However, foreign exchange can be a complex puzzle to many people. Here, we will explain a little more about how foreign exchange works.
When independent brokers begin trading on the foreign exchange market, we need to know who the major players are – in other words, who has the major impact on foreign currency exchange, and who establishes the trends. This is what is meant by the Forex establishment – and it is constantly changing.