Forex Rupee Dollar
Forex is the only serious
FX was the operative word. While studying for an MBA in Information Systems and Finance, I came across the fine world currencies. What is a fancy term for Foreign Exchange. Of course, "money" is a curious word bit for him too.
There are many interesting features of the currency. But the place to capture my imagination is the fact that several participants are almost unwitting participants. Compare this with the stock market worldwide is a willing participant. In the foreign exchange market, there are players such as banks need to participate, as they have done to clear international transactions and international currency transactions.
This is the main driver of the possibility that the investor / operator is in this marketplace. As in any moderately sophisticated trading floor, the goal remains the same: find deals that can quickly turn into winning positions, usually within the day. This need for blocks in a single day is especially felt since there is a high cost of wear and margins need to be marked to market later of each trading day.
And I use that term loosely, like the sun never sets on the money market as the Earth rotates, there is a place somewhere the world who just found the sunrise at a given point in time. Anyway, there are some major markets, London is at its center, where foreign exchange deals are place in larger numbers.
Back to transactions related to the discussion: foreign exchange dealers are constantly searching situations in which the pigs, ie people who must trade in some way subsidize their trade and help them turn a neat little profit.
This piece of hope has made many a trader's life miserable, but at the same time, I know that instead of dozens of discipline to trade professionals have built a trading ordered small fortune in those dollars and pounds and yen and euros and rupees, and crosswalks, and only God knows what other currency.
But a dollar is a dollar. Are we talking about the United States dollar in America? Or is it the Down Under in Australia? Or is adorned with the lion roaring in Singapore?
One of my other sources of excitation is that the currency markets related to defy common logic that the man in the street would present. This does not mean exchange rates can not be forecasted. For example, I am writing this article at the end of 2007. I can bet that the Indian rupee will continue to rise for centuries against the U.S. dollar for the coming years, at least for the next three years.
If I'm so smart, why am not rich? Well, the rise will be so little for such a long period of time, I will not be able to do any real chance to trade based on my forecast. And if you're reading this, please note that I am not giving professional advice, but rather, thinking aloud.
This was supposed to be a beginner article on international currency trading, and I hope it served its purpose.
About the Author
Want to know more? I recommend the forex trading blog. Regularly updated Market Wrap helps make for some easy forex trading.
June 18, 2009 Weekly Forex Outlook