Foreign Currency Exchange (Forex) Trading
allows an investor to participate in profitable fluctuations of world currencies. Forex trading works by selecting pairs of currencies and then measuring profit or loss by the fluctuations of one one currency's market activity compared to the other. For example, fluctuations in the value of the $ U.S. Dollar are measured against another world currency such as the £ British Pound, € Eurodollar, ¥ Japanese Yen etc. Being able to discern price trends in market activity is the essence of all profitable trading and this is what makes foreign currencies so exciting, currencies are the world's 'best trending' market. This gives Forex investors a profit making edge that is unavailable in most other markets.Forex Trading is being called 'today's exciting new investment opportunity for the savvy investor'.
The reason is that the Forex Trading Market only began to emerge in 1978, when worldwide currencies were allowed to 'float' according to supply and demand, 7 years after the Gold Standard was abandoned. Up until 1995 Forex Trading was only available to banks and large multinational corporations but today, thanks to the proliferation of the computer and a new era of internet-based communication technologies, this highly profitable market is open to everyone.
The Forex Trading Market's growth has been unprecedented, explosive, and continues to be unequaled by any other trading market.Unlike traditional trading which brings buyers and sellers together in a central location (trading floors) in Forex Trading there is no need for a centralized location. Forex is a market where worldwide traders conduct business by high-speed
Internet connections with the Interbank Foreign Currency Exchange via Forex Clearinghouses (also called Forex Brokerage Firms). Forex has not only become the fastest growing trading market, but also the most profitable trading marketplace in the world.Simply stated, Forex is the most profitable because it is the world's largest marketplace. The Foreign Currency market as a whole accounts for over 1.2 trillion dollars of trading per day (as determined by the fourth Central Bank Survey of Foreign Exchange and Derivatives Market Activity, 1998. This figure is understood to be significantly higher today). To put this into perspective, on any given day the
Foreign Currency Exchange Market activity is vastly greater than the Stock Market. It is 75 times greater than the New York Stock Exchange where the average total daily value (using 1998 figures) of both foreign and domestic stocks is $16 billion, and much greater than the daily activity on the London Stock Exchange, with $11 billion.Furthermore, in addition to being the world's largest and most profitable market, The Foreign Currency Exchange Market is the world's most powerful and persistent trading market regardless of negative economic indicators.
This is because currencies 'trend' better than every other market due to their macro-economic nature. Unlike many commodities whose supply and demand fundamentals can literally change overnight (as we found in the sudden dot com 'market adjustment' and even more abruptly on September 11, 2001), currency fundamentals are much less random, and far more predictable.
This is well illustrated in the way interest rates are changed gradually and only in small increments.Other examples of fundamental predictability are illustrated by the following statistics. Of the $1.2 trillion day trading in Foreign Currency Exchange, 83% of spot foreign exchange activity and 95% of swap activity involves US Dollars. The Euro is the second most active currency at 37%. The Japanese Yen (24%) and the British Pound Sterling (10%) are ranked third and fourth. The Swiss Franc is 7%, and the Canadian and Australian Dollars account for 3%.Spot Forex is the type of forex trade in which self-traders concentrate most of their investment activity for reasons that are self-explanatory. By definition, a Spot Forex transaction is a currency trade transaction that has a settlement (liquidation) within a maximum of 2 working days following the closing of the trade. Therefore Spot Forex allows the self-trader high liquidity.
Another popular feature for well-advised Spot Forex self-traders is the strong profit potential from continual market fluctuations by buying a specific currency when it is weaker and selling it when it is stronger, and the continual pairing of strong currencies against weak ones. This potential for profit or loss is amplified by the effect of leverage.
Leverage is a term that describes what can be achieved when a smaller amount of money controls a much larger amount of money. With regards to Forex Trading for example, a leverage-factor of 100 can allow the trader to hold a 100,000 US Dollar position with a modest 1,000 US Dollar margin deposit.
Online Forex day trading focuses its investment activity largely on Spot Forex because of the 'risk manageability' of in-and-out trading plus the potential to generate excellent and highly liquid profits."Few financial industries generate as much excitement and profit as currency exchange.
Traders around the world enter trades for weeks, days or split seconds, generating explosive moves or steady flows, and money changes hands quickly at a staggering daily average of a trillion US dollars. Forex profitability is legendary.
George Soros of Quantum Fund realized a profit in excess of 1 billion dollars for a couple of days work in September 1992. Hans Hufschmid of Soloman Brothers, Inc. netted $28 million for 1993. Even by Wall Street standards, these numbers are heartstoppers".*Despite its high trading volume and its fundamental role in the world, the Forex Market is rarely in the media limelight because its method of trading transaction is less visible than the Floor of a Stock Exchange.
However, trading on the Foreign Currency Exchange Market is today surging into the public awareness, as flocks of internet traders are attracted by the market's inherent profitability and risk manageability. Add to this the absence of geographic or temporal boundaries and vibrantly active Forex market is open to all players.
Friday, June 22, 2007
BUYHING JEWELERY ONLINE
Buying Jewelry Online
What if she doesn't like it? What if you hate it? What if the shipment is lost?
We know. Many people have concerns about buying something as important as a diamond engagement ring (or any other diamond or expensive jewelry) online. You've taken the time to educate yourself about buying diamonds, now take the time to educate yourself about buying online -- because you'll generally find better prices and better selections at online Diamond Jewelry Stores.
Read the information below, use our checklists, and use our comparison chart of some of the top online Diamond Jewelry Stores to ensure that you not only select the right piece of jewelry, but also the right store.
Advantages of Buying Jewelry Online
When you're ready to make your next jewelry purchase, consider buying it online. The Internet offers a number of unique shopping advantages, whether you're a first-time purchaser or an e-shopping veteran:
Speed.
Make your selection. Enter your information. Then click a button. It's as easy as that. And all from your own computer.
Convenience.
Compare the online jewelry shopping experience with shopping at a mall jewelry store or department store: you rush to get there, fight traffic, vie for parking, get jostled by crowds, endure pushy salespeople, suffer long lines at the register…By the time you get home with your purchase, you're drained. And if you need to return the item, you can look forward to going through this hassle all over again.
Selection.
Online Diamond Jewelry Stores have the capacity to offer a much wider selection of merchandise for sale in one place than either a traditional store or catalog. This means you can uncover some truly unique jewelry items you won't find anywhere else.
Value.
Because an Internet retailer has lower inventory and other overhead costs than a bricks-and-mortar retailer, these savings can be passed on to you, the consumer, in the form of great deals on the latest merchandise.
Education.
The Internet is the world's largest storehouse of information. In the market for an engagement ring and want to learn about the 4Cs of diamonds? You'll find it here. Questions about how to clean your jewelry? It's all here. Want to learn how to judge quality, or discover the latest styles? You can do it all from your computer.
Even if you decide not to buy your jewelry online and opt for a traditional jewelry store or jewelry department, the Internet can still be a valuable resource. You can essentially do all your legwork - determine the style, quality and price you are willing to pay - before you even enter the store. So take advantage of it!
What to Look for When Selecting an Online Store Customer Service You may take advantage of shopping online in order to avoid salespeople, but what if you want to ask a question or you change your mind about the stone color? Does the online store where you shop have a telephone number where you can speak to Customer Service? If so, what hours are they available -- be sure to verify timezones.
Return Policy Read the site's Return Policy and read it carefully. Some sites claim a 30-day return policy, but if you read carefully, returns of many items require a "re-stocking" fee. Know what the policy is before you buy.
Generally, any item that has been engraved or in any other way "personalized" will not qualify for the store's Return Policy.
We strongly recommend only shopping at sites with a minimum 30-Day Return Policy.
And if a store doesn't have it's Return Policy posted somewhere on the site, click on to the next web site and never look back.
Manner of Shipment
It might not be critical for small pieces of costume jewelry, but if you buy a $4,000.00 engagement ring online, you want to know that the store where you made your purchase ships using insured carriers (e.g., FedEx, UPS) and that all shipments are insured for the full value of their contents.
Lost/Damaged Shipments Policy
What is the store policy for items lost or damaged in shipment? If the store uses insured carriers and insures its shipments, they should be more than willing to replace or refund any item lost or damaged in shipment.
Diamond Certificates
Diamond certificates come from a variety of labs. We recommend buying from sites that provide either AGS or GIA (two of the world's top labs) certificates. Some online stores offer their own certificates or certificates from other labs.
And while we recommend AGS/GIA certification, we recognize that not all purchases require certification (most preset diamonds do not come with AGS or GIA certification) and some lovely diamonds can be bought without certification. Remember, certification doesn't change the quality of the diamond (although and AGS or GIA certificate can add to the value), it certifies the specifications of the diamond.
Secure Transactions Today, most web sites, guarantee that all personal information you provide for payment or registration purposes is automatically encrypted by the latest security software.
This eliminates the risk of data interception, manipulation or recipient impersonation by unauthorized parties.
Privacy Policy Most web sites today that collect any personal data (even "just" an email address) have their "privacy policy" posted. Review the privacy policy to confirm that your private information will not be sold to other companies, specifically "marketing" companies or "partners with similar products."
What if she doesn't like it? What if you hate it? What if the shipment is lost?
We know. Many people have concerns about buying something as important as a diamond engagement ring (or any other diamond or expensive jewelry) online. You've taken the time to educate yourself about buying diamonds, now take the time to educate yourself about buying online -- because you'll generally find better prices and better selections at online Diamond Jewelry Stores.
Read the information below, use our checklists, and use our comparison chart of some of the top online Diamond Jewelry Stores to ensure that you not only select the right piece of jewelry, but also the right store.
Advantages of Buying Jewelry Online
When you're ready to make your next jewelry purchase, consider buying it online. The Internet offers a number of unique shopping advantages, whether you're a first-time purchaser or an e-shopping veteran:
Speed.
Make your selection. Enter your information. Then click a button. It's as easy as that. And all from your own computer.
Convenience.
Compare the online jewelry shopping experience with shopping at a mall jewelry store or department store: you rush to get there, fight traffic, vie for parking, get jostled by crowds, endure pushy salespeople, suffer long lines at the register…By the time you get home with your purchase, you're drained. And if you need to return the item, you can look forward to going through this hassle all over again.
Selection.
Online Diamond Jewelry Stores have the capacity to offer a much wider selection of merchandise for sale in one place than either a traditional store or catalog. This means you can uncover some truly unique jewelry items you won't find anywhere else.
Value.
Because an Internet retailer has lower inventory and other overhead costs than a bricks-and-mortar retailer, these savings can be passed on to you, the consumer, in the form of great deals on the latest merchandise.
Education.
The Internet is the world's largest storehouse of information. In the market for an engagement ring and want to learn about the 4Cs of diamonds? You'll find it here. Questions about how to clean your jewelry? It's all here. Want to learn how to judge quality, or discover the latest styles? You can do it all from your computer.
Even if you decide not to buy your jewelry online and opt for a traditional jewelry store or jewelry department, the Internet can still be a valuable resource. You can essentially do all your legwork - determine the style, quality and price you are willing to pay - before you even enter the store. So take advantage of it!
What to Look for When Selecting an Online Store Customer Service You may take advantage of shopping online in order to avoid salespeople, but what if you want to ask a question or you change your mind about the stone color? Does the online store where you shop have a telephone number where you can speak to Customer Service? If so, what hours are they available -- be sure to verify timezones.
Return Policy Read the site's Return Policy and read it carefully. Some sites claim a 30-day return policy, but if you read carefully, returns of many items require a "re-stocking" fee. Know what the policy is before you buy.
Generally, any item that has been engraved or in any other way "personalized" will not qualify for the store's Return Policy.
We strongly recommend only shopping at sites with a minimum 30-Day Return Policy.
And if a store doesn't have it's Return Policy posted somewhere on the site, click on to the next web site and never look back.
Manner of Shipment
It might not be critical for small pieces of costume jewelry, but if you buy a $4,000.00 engagement ring online, you want to know that the store where you made your purchase ships using insured carriers (e.g., FedEx, UPS) and that all shipments are insured for the full value of their contents.
Lost/Damaged Shipments Policy
What is the store policy for items lost or damaged in shipment? If the store uses insured carriers and insures its shipments, they should be more than willing to replace or refund any item lost or damaged in shipment.
Diamond Certificates
Diamond certificates come from a variety of labs. We recommend buying from sites that provide either AGS or GIA (two of the world's top labs) certificates. Some online stores offer their own certificates or certificates from other labs.
And while we recommend AGS/GIA certification, we recognize that not all purchases require certification (most preset diamonds do not come with AGS or GIA certification) and some lovely diamonds can be bought without certification. Remember, certification doesn't change the quality of the diamond (although and AGS or GIA certificate can add to the value), it certifies the specifications of the diamond.
Secure Transactions Today, most web sites, guarantee that all personal information you provide for payment or registration purposes is automatically encrypted by the latest security software.
This eliminates the risk of data interception, manipulation or recipient impersonation by unauthorized parties.
Privacy Policy Most web sites today that collect any personal data (even "just" an email address) have their "privacy policy" posted. Review the privacy policy to confirm that your private information will not be sold to other companies, specifically "marketing" companies or "partners with similar products."
FOREX TRADE
LiteForex offers revolutionary trading technology for beginner traders, and lets you start trading in the Forex market depositing just ONE DOLLAR! Your deposit appears in US cents on the Lite group accounts, so you feel like you are trading the same amount in US Dollars. This new technology allows Forex beginners to learn Forex in a REAL life situation with minimal investment!LiteForex also offers competitive trading conditions for Forex professionals all around the world, and provides a dedicated Forex trading server and experienced customer support as well as analysis of Forex market and a professional affiliate program.With more than 75,000 serviced users, 18,000 unique and live Forex trading accounts, 100 new traders every day, and more than 600,000 live orders every month, LiteForex is one of the most popular and fastest growing Forex companies in the world.
Take your first step to financial freedom – Enter the Forex world!
Open a Live Forex Account »
LiteForex is a service mark and division of Straighthold Investment Group, Inc. - an independent market maker based on a MetaTrader 4, a very powerful and popular Forex trading platform, known throughout the world.
Take your first step to financial freedom – Enter the Forex world!
Open a Live Forex Account »
LiteForex is a service mark and division of Straighthold Investment Group, Inc. - an independent market maker based on a MetaTrader 4, a very powerful and popular Forex trading platform, known throughout the world.
INTERNATIONAL TRADE
Definitions
Balance of payments · Current account (Balance of trade) · Capital account · Foreign exchange reserves · Sovereign wealth fund · Net Capital Outflow · Comparative advantage · Absolute advantage · Import substitution · International trade
Organizations and policies
World Trade Organization · International Monetary Fund · World Bank Group · International Trade Centre · Trade bloc · Free trade zone · Trade barrier · Import quota · Tariff
Schools of thought
Free trade · Balanced trade · Mercantilism · Protectionism
Related issues
Globalization · Outsourcing · Trade justice · Fair trade
Definitions
Balance of payments · Current account (Balance of trade) · Capital account · Foreign exchange reserves · Sovereign wealth fund · Net Capital Outflow · Comparative advantage · Absolute advantage · Import substitution · International trade
Organizations and policies
World Trade Organization · International Monetary Fund · World Bank Group · International Trade Centre · Trade bloc · Free trade zone · Trade barrier · Import quota · Tariff
Schools of thought
Free trade · Balanced trade · Mercantilism · Protectionism
Related issues
Globalization · Outsourcing · Trade justice · Fair trade
International trade theory
Several different models have been proposed to predict patterns of trade and to analyze the effects of trade policies such as tariffs.
Ricardian model
The Ricardian model focuses on comparative advantage and is perhaps the most important concept in international trade theory. In a Ricardian model, countries specialize in producing what they produce best. Unlike other models, the Ricardian framework predicts that countries will fully specialize instead of producing a broad array of goods. Also, the Ricardian model does not directly consider factor endowments, such as the relative amounts of labor and capital within a country.
Heckscher-Ohlin model
The Heckscher-Ohlin model was produced as an alternative to the Ricardian model of basic comparative advantage. Despite its greater complexity it did not prove much more accurate in its predictions. However from a theoretical point of view it did provide an elegant solution by incorporating the neoclassical price mechanism into international trade theory.
The theory argues that the pattern of international trade is determined by differences in factor endowments. It predicts that countries will export those goods that make intensive use of locally abundant factors and will import goods that make intensive use of factors that are locally scarce. Empirical problems with the H-O model, known as the Leontief paradox, were exposed in empirical tests by Wassily Leontief who found that the United States tended to export labor intensive goods despite having a capital abundance.
Specific Factors
In this model, labour mobility between industries is possible while capital is immobile between industries in the short-run. The specific factors name refers to the given that in the short-run specific factors of production, such as physical capital, are not easily transferable between industries. The theory suggests that if there is an increase in the price of a good, the owners of the factor of production specific to that good will profit in real terms. Additionally, owners of opposing specific factors of production (i.e. labour and capital) are likely to have opposing agendas when lobbying for controls over immigration of labour. Conversely, both owners of capital and labour profit in real terms from an increase in the capital endowment. This model is ideal for particular industries. This model is ideal for understanding income distribution but awkward for discussing the pattern of trade.
Gravity model
The Gravity model of trade presents a more empirical analysis of trading patterns rather than the more theoretical models discussed above. The gravity model, in its basic form, predicts trade based on the distance between countries and the interaction of the countries' economic sizes. The model mimics the Newtonian law of gravity which also considers distance and physical size between two objects. The model has been proven to be empirically strong through econometric analysis. Other factors such as income level, diplomatic relationships between countries, and trade policies are also included in expanded versions of the model.
Regulation of international trade
Traditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief in Mercantilism most nations had high tariffs and many restrictions on international trade. In the 19th century, especially in Britain, a belief in free trade became paramount and this view has dominated thinking among western nations for most of the time since then. In the years since the Second World War multilateral treaties like the GATT and World Trade Organization have attempted to create a globally regulated trade structure.
Free trade is usually most strongly supported by the most economically powerful nations in the world, though they often engage in selective protectionism for those industries which are politically important domestically, such as the protective tariffs applied to agriculture and textiles by the United States and Europe. The Netherlands and the United Kingdom were both strong advocates of free trade when they were economically dominant, today the United States, the United Kingdom, Australia and Japan are its greatest proponents. However, many other countries (such as India, China and Russia) are increasingly becoming advocates of free trade as they become more economically powerful themselves. As tariff levels fall there is also an increasing willingness to negotiate non tariff measures, including foreign direct investment, procurement and trade facilitation. The latter looks at the transaction cost associated with meeting trade and customs procedures.
Traditionally agricultural interests are usually in favour of free trade while manufacturing sectors often support protectionism. This has changed somewhat in recent years, however. In fact, agricultural lobbies, particularly in the United States, Europe and Japan, are chiefly responsible for particular rules in the major international trade treaties which allow for more protectionist measures in agriculture than for most other goods and services.
During recessions there is often strong domestic pressure to increase tariffs to protect domestic industries. This occurred around the world during the Great Depression leading to a collapse in world trade that many believe seriously deepened the depression.
The regulation of international trade is done through the World Trade Organization at the global level, and through several other regional arrangements such as MERCOSUR in South America, NAFTA between the United States, Canada and Mexico, and the European Union between 27 independent states. The 2005 Buenos Aires talks on the planned establishment of the Free Trade Area of the Americas (FTAA) failed largely due to opposition from the populations of Latin American nations. Similar agreements such as the MAI (Multilateral Agreement on Investment) have also failed in recent years.
Risks in international trade
The risks that exist in international trade can be divided into two major groups:
Economic risks
Risk of insolvency of the buyer,
Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due date
Risk of non-acceptance
Surrendering economic sovereignty
Political risks
Risk of cancellation or non-renewal of export or import licences
War risks
Risk of expropriation or confiscation of the importer's company
Risk of the imposition of an import ban after the shipment of the goods
Transfer risk - imposition of exchange controls by the importer's country or foreign currency shortages
Surrendering political sovereignty
GOL D TRADE
Home Engagement Ring Guide Precious Metals Guide Online Quiz
Precious Metals Guide
Gold Gold Quality Gold's purity is measured in karats. The term "karat" harks back to the ancient bazaars where "carob" beans were used to weigh precious metals. 24 karat is pure gold, but its purity means it is more expensive and less durable than gold that is alloyed with other metals. Different alloys are used in jewelry for greater strength, durability and color range.
The karatage of the jewelry will tell you what percentage of gold it contains: 24 karat is 100 percent, 18 karat is 75 percent, and 14 karat is 58 percent gold. When comparing gold jewelry, the higher the number of karats, the greater the value.
Europeans have long embraced 18-karat gold as their metal of choice, and with good reason. Its rich yellow color, luxurious look and feel have an extraordinarily sensual appeal; many
European women treat 18-karat gold like a second skin, even wearing it to the beach!
Today, women in the U.S. and around the globe are "trading up" and treating themselves to the beauty and opulence of 18-karat gold.
Karat Marks When buying gold jewelry, always look for the karat mark. All other things being equal, the higher the karat, the more expensive the piece. In the United States, 14-karat gold, or 583 parts pure gold, is the most common degree of fineness. Nothing less than 10 karats can legally be marked or sold as gold jewelry in the U.S. However, lower karatages, such as 8-karat gold and 9-karat gold, are popular in other countries.
18-karat gold is 18/24ths, or three-quarters pure gold, and jewelry of this fineness is marked 18k or 750, the European designation meaning 75% gold.
Always look for the karat mark or "k" that appears on the back of the piece. By U.S. law, if a karat mark appears you should also see the manufacturer's trademark to assure you that the karat marking is accurate. The country of origin should also appear.
In addition to the karat mark, every piece of gold jewelry should be stamped with a hallmark or trademark of its maker, and sometimes its country of origin. These designations assure you that you are buying genuine karat gold jewelry. Heavier pieces contain more gold.
Gold Types Gold Filled, also called Gold Overlay, refers to a layer of at least 10-karat gold that has been permanently bonded by heat and pressure to one or more surfaces of the support metal, then rolled or drawn to a prescribed thickness. The karat gold must be at least 1/ 10 of the total weight.
Gold Plate means that a layer of plating of 10-karat gold or better has been bonded to a base metal. The karat gold content may be less than 1/20, but it must be properly identified by weight in terms of total metal content.
Gold Leaf is just gold plating that's been pounded and applied by hand.
Gold Colors Yellow gold is alloyed with silver and copper. It is the most frequently used type of gold there is. Malleable, ductile, and generally non-corrosive, it has a high melting point and is not susceptible to compression.
White gold is alloyed with a large percentage of silver, or a selection of other white metals. The percentage of gold naturally varies, according to the amount of other metal used. White gold is highly reflective and not subject to tarnish. The ancient term for it was Electrum. Its use predates that of Palladium and Platinum.
Rose gold is alloyed with copper, and perhaps silver. The proportions are about one part of copper to three parts of 24-karat gold.
Gold Pricing Gold pricing is based on a number of factors, including karatage, gram weight, design and craftsmanship. The karatage and gram weight tell you how much gold is in a piece, but don't rely on these alone to determine price. Remember, a price based solely on gram weight does not reflect the work that has gone into the piece.
Other important factors to consider are the jewelry's construction and design. The techniques of construction can make a piece more durable and flexible for added comfort. A well-made piece in a classic design will give you years of wear and enjoyment and, if cared for properly, will last a lifetime. Unique design, intricate details, gemstones or a special clasp may add to the price.
Gold jewelry is mainly produced by machine. Any additional hand finishing or textural interest raises the cost. Similar looking pieces may have vastly different price tags. This is because different pieces may have specific characteristics that make them unique. So look carefully to notice any differences and similarities. Often, it's these small details that give you pleasure through the years that you enjoy a piece of jewelry, and ensure that your children will also enjoy it.
Gold Care Gold is durable, sturdy, dependable, and makes an ideal setting for your precious diamond jewelry. However, to get a lifetime of enjoyment from your jewelry, be sure to keep it clean and safe.
Do not wear jewelry during rough work or when handling harsh chemicals.
Store it in a fabric-lined box away from other pieces to preserve it from getting scratched.
Finally, check the diamond settings periodically for any damage to the gold prongs or bezels. If you see a loose prong, or if the setting looks out of line, bring it to a professional jeweler for repair at once.
Balance of payments · Current account (Balance of trade) · Capital account · Foreign exchange reserves · Sovereign wealth fund · Net Capital Outflow · Comparative advantage · Absolute advantage · Import substitution · International trade
Organizations and policies
World Trade Organization · International Monetary Fund · World Bank Group · International Trade Centre · Trade bloc · Free trade zone · Trade barrier · Import quota · Tariff
Schools of thought
Free trade · Balanced trade · Mercantilism · Protectionism
Related issues
Globalization · Outsourcing · Trade justice · Fair trade
Definitions
Balance of payments · Current account (Balance of trade) · Capital account · Foreign exchange reserves · Sovereign wealth fund · Net Capital Outflow · Comparative advantage · Absolute advantage · Import substitution · International trade
Organizations and policies
World Trade Organization · International Monetary Fund · World Bank Group · International Trade Centre · Trade bloc · Free trade zone · Trade barrier · Import quota · Tariff
Schools of thought
Free trade · Balanced trade · Mercantilism · Protectionism
Related issues
Globalization · Outsourcing · Trade justice · Fair trade
International trade theory
Several different models have been proposed to predict patterns of trade and to analyze the effects of trade policies such as tariffs.
Ricardian model
The Ricardian model focuses on comparative advantage and is perhaps the most important concept in international trade theory. In a Ricardian model, countries specialize in producing what they produce best. Unlike other models, the Ricardian framework predicts that countries will fully specialize instead of producing a broad array of goods. Also, the Ricardian model does not directly consider factor endowments, such as the relative amounts of labor and capital within a country.
Heckscher-Ohlin model
The Heckscher-Ohlin model was produced as an alternative to the Ricardian model of basic comparative advantage. Despite its greater complexity it did not prove much more accurate in its predictions. However from a theoretical point of view it did provide an elegant solution by incorporating the neoclassical price mechanism into international trade theory.
The theory argues that the pattern of international trade is determined by differences in factor endowments. It predicts that countries will export those goods that make intensive use of locally abundant factors and will import goods that make intensive use of factors that are locally scarce. Empirical problems with the H-O model, known as the Leontief paradox, were exposed in empirical tests by Wassily Leontief who found that the United States tended to export labor intensive goods despite having a capital abundance.
Specific Factors
In this model, labour mobility between industries is possible while capital is immobile between industries in the short-run. The specific factors name refers to the given that in the short-run specific factors of production, such as physical capital, are not easily transferable between industries. The theory suggests that if there is an increase in the price of a good, the owners of the factor of production specific to that good will profit in real terms. Additionally, owners of opposing specific factors of production (i.e. labour and capital) are likely to have opposing agendas when lobbying for controls over immigration of labour. Conversely, both owners of capital and labour profit in real terms from an increase in the capital endowment. This model is ideal for particular industries. This model is ideal for understanding income distribution but awkward for discussing the pattern of trade.
Gravity model
The Gravity model of trade presents a more empirical analysis of trading patterns rather than the more theoretical models discussed above. The gravity model, in its basic form, predicts trade based on the distance between countries and the interaction of the countries' economic sizes. The model mimics the Newtonian law of gravity which also considers distance and physical size between two objects. The model has been proven to be empirically strong through econometric analysis. Other factors such as income level, diplomatic relationships between countries, and trade policies are also included in expanded versions of the model.
Regulation of international trade
Traditionally trade was regulated through bilateral treaties between two nations. For centuries under the belief in Mercantilism most nations had high tariffs and many restrictions on international trade. In the 19th century, especially in Britain, a belief in free trade became paramount and this view has dominated thinking among western nations for most of the time since then. In the years since the Second World War multilateral treaties like the GATT and World Trade Organization have attempted to create a globally regulated trade structure.
Free trade is usually most strongly supported by the most economically powerful nations in the world, though they often engage in selective protectionism for those industries which are politically important domestically, such as the protective tariffs applied to agriculture and textiles by the United States and Europe. The Netherlands and the United Kingdom were both strong advocates of free trade when they were economically dominant, today the United States, the United Kingdom, Australia and Japan are its greatest proponents. However, many other countries (such as India, China and Russia) are increasingly becoming advocates of free trade as they become more economically powerful themselves. As tariff levels fall there is also an increasing willingness to negotiate non tariff measures, including foreign direct investment, procurement and trade facilitation. The latter looks at the transaction cost associated with meeting trade and customs procedures.
Traditionally agricultural interests are usually in favour of free trade while manufacturing sectors often support protectionism. This has changed somewhat in recent years, however. In fact, agricultural lobbies, particularly in the United States, Europe and Japan, are chiefly responsible for particular rules in the major international trade treaties which allow for more protectionist measures in agriculture than for most other goods and services.
During recessions there is often strong domestic pressure to increase tariffs to protect domestic industries. This occurred around the world during the Great Depression leading to a collapse in world trade that many believe seriously deepened the depression.
The regulation of international trade is done through the World Trade Organization at the global level, and through several other regional arrangements such as MERCOSUR in South America, NAFTA between the United States, Canada and Mexico, and the European Union between 27 independent states. The 2005 Buenos Aires talks on the planned establishment of the Free Trade Area of the Americas (FTAA) failed largely due to opposition from the populations of Latin American nations. Similar agreements such as the MAI (Multilateral Agreement on Investment) have also failed in recent years.
Risks in international trade
The risks that exist in international trade can be divided into two major groups:
Economic risks
Risk of insolvency of the buyer,
Risk of protracted default - the failure of the buyer to pay the amount due within six months after the due date
Risk of non-acceptance
Surrendering economic sovereignty
Political risks
Risk of cancellation or non-renewal of export or import licences
War risks
Risk of expropriation or confiscation of the importer's company
Risk of the imposition of an import ban after the shipment of the goods
Transfer risk - imposition of exchange controls by the importer's country or foreign currency shortages
Surrendering political sovereignty
GOL D TRADE
Home Engagement Ring Guide Precious Metals Guide Online Quiz
Precious Metals Guide
Gold Gold Quality Gold's purity is measured in karats. The term "karat" harks back to the ancient bazaars where "carob" beans were used to weigh precious metals. 24 karat is pure gold, but its purity means it is more expensive and less durable than gold that is alloyed with other metals. Different alloys are used in jewelry for greater strength, durability and color range.
The karatage of the jewelry will tell you what percentage of gold it contains: 24 karat is 100 percent, 18 karat is 75 percent, and 14 karat is 58 percent gold. When comparing gold jewelry, the higher the number of karats, the greater the value.
Europeans have long embraced 18-karat gold as their metal of choice, and with good reason. Its rich yellow color, luxurious look and feel have an extraordinarily sensual appeal; many
European women treat 18-karat gold like a second skin, even wearing it to the beach!
Today, women in the U.S. and around the globe are "trading up" and treating themselves to the beauty and opulence of 18-karat gold.
Karat Marks When buying gold jewelry, always look for the karat mark. All other things being equal, the higher the karat, the more expensive the piece. In the United States, 14-karat gold, or 583 parts pure gold, is the most common degree of fineness. Nothing less than 10 karats can legally be marked or sold as gold jewelry in the U.S. However, lower karatages, such as 8-karat gold and 9-karat gold, are popular in other countries.
18-karat gold is 18/24ths, or three-quarters pure gold, and jewelry of this fineness is marked 18k or 750, the European designation meaning 75% gold.
Always look for the karat mark or "k" that appears on the back of the piece. By U.S. law, if a karat mark appears you should also see the manufacturer's trademark to assure you that the karat marking is accurate. The country of origin should also appear.
In addition to the karat mark, every piece of gold jewelry should be stamped with a hallmark or trademark of its maker, and sometimes its country of origin. These designations assure you that you are buying genuine karat gold jewelry. Heavier pieces contain more gold.
Gold Types Gold Filled, also called Gold Overlay, refers to a layer of at least 10-karat gold that has been permanently bonded by heat and pressure to one or more surfaces of the support metal, then rolled or drawn to a prescribed thickness. The karat gold must be at least 1/ 10 of the total weight.
Gold Plate means that a layer of plating of 10-karat gold or better has been bonded to a base metal. The karat gold content may be less than 1/20, but it must be properly identified by weight in terms of total metal content.
Gold Leaf is just gold plating that's been pounded and applied by hand.
Gold Colors Yellow gold is alloyed with silver and copper. It is the most frequently used type of gold there is. Malleable, ductile, and generally non-corrosive, it has a high melting point and is not susceptible to compression.
White gold is alloyed with a large percentage of silver, or a selection of other white metals. The percentage of gold naturally varies, according to the amount of other metal used. White gold is highly reflective and not subject to tarnish. The ancient term for it was Electrum. Its use predates that of Palladium and Platinum.
Rose gold is alloyed with copper, and perhaps silver. The proportions are about one part of copper to three parts of 24-karat gold.
Gold Pricing Gold pricing is based on a number of factors, including karatage, gram weight, design and craftsmanship. The karatage and gram weight tell you how much gold is in a piece, but don't rely on these alone to determine price. Remember, a price based solely on gram weight does not reflect the work that has gone into the piece.
Other important factors to consider are the jewelry's construction and design. The techniques of construction can make a piece more durable and flexible for added comfort. A well-made piece in a classic design will give you years of wear and enjoyment and, if cared for properly, will last a lifetime. Unique design, intricate details, gemstones or a special clasp may add to the price.
Gold jewelry is mainly produced by machine. Any additional hand finishing or textural interest raises the cost. Similar looking pieces may have vastly different price tags. This is because different pieces may have specific characteristics that make them unique. So look carefully to notice any differences and similarities. Often, it's these small details that give you pleasure through the years that you enjoy a piece of jewelry, and ensure that your children will also enjoy it.
Gold Care Gold is durable, sturdy, dependable, and makes an ideal setting for your precious diamond jewelry. However, to get a lifetime of enjoyment from your jewelry, be sure to keep it clean and safe.
Do not wear jewelry during rough work or when handling harsh chemicals.
Store it in a fabric-lined box away from other pieces to preserve it from getting scratched.
Finally, check the diamond settings periodically for any damage to the gold prongs or bezels. If you see a loose prong, or if the setting looks out of line, bring it to a professional jeweler for repair at once.
Monday, June 18, 2007
A Guide for Investors
Introduction
Information is the investor's best tool when it comes to investing wisely. But accurate information about "microcap stocks" — low-priced stocks issued by the smallest of companies — may be difficult to find. Many microcap companies do not file financial reports with the SEC, so it's hard for investors to get the facts about the company's management, products, services, and finances. When reliable information is scarce, fraudsters can easily spread false information about microcap companies, making profits while creating losses for unsuspecting investors.
In the battle against microcap fraud, the SEC has toughened its rules and taken actions against wrongdoers, but we can't stop every microcap fraud. We need your help in winning the battle. Before you consider investing in a microcap company, arm yourself first with information. This alert tells you about microcap stocks, how to find information, what "red flags" to consider, and where to turn if you run into trouble.
What Is a Microcap Stock?
The term "microcap stock" applies to companies with low or "micro" capitalizations, meaning the total value of the company's stock. Microcap companies typically have limited assets. For example, in cases where the SEC suspended trading in microcap stocks, the average company had only $6 million in net tangible assets — and nearly half had less than $1.25 million. Microcap stocks tend to be low priced and trade in low volumes.
Where Do Microcap Stocks Trade?
Many microcap stocks trade in the "over-the-counter" (OTC) market and are quoted on OTC systems, such as the OTC Bulletin Board (OTCBB) or the "Pink Sheets."
OTC Bulletin Board The OTCBB is an electronic quotation system that displays real-time quotes, last-sale prices, and volume information for many OTC securities that are not listed on the Nasdaq Stock Market or a national securities exchange. Brokers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. Although the NASD oversees the OTCBB, the OTCBB is not part of the Nasdaq Stock Market. Fraudsters often claim that an OTCBB company is a Nasdaq company to mislead investors into thinking that the company is bigger than it is.
The "Pink Sheets" The Pink Sheets — named for the color of paper on which they've historically been printed — are listings of price quotes for companies that trade in the over-the-counter market (OTC market). "Market makers" — the brokers who commit to buying and selling the securities of OTC issuers-can use the pink sheets to publish bid and ask prices. A company named Pink Sheets LLC, formerly known as the National Quotation Bureau, publishes the pink sheets in both hard copy and electronic format. Pink Sheets LLC is not registered with the SEC as a stock exchange, nor does the SEC regulate its activities.
How Are Microcap Stocks Different From Other Stocks?
Lack of Public Information The biggest difference between a microcap stock and other stocks is the amount of reliable, publicly available information about the company. Larger public companies file reports with the SEC that any investor can get for free from the SEC's website. Professional stock analysts regularly research and write about larger public companies, and it's easy to find their stock prices in the newspaper. In contrast, information about microcap companies can be extremely difficult to find, making them more vulnerable to investment fraud schemes.
No Minimum Listing Standards Companies that trade their stocks on major exchanges and in the Nasdaq Stock Market must meet minimum listing standards. For example, they must have minimum amounts of net assets and minimum numbers of shareholders. In contrast, companies on the OTCBB or the Pink Sheets do not have to meet any minimum standards.
Risk While all investments involve risk, microcap stocks are among the most risky. Many microcap companies tend to be new and have no proven track record. Some of these companies have no assets or operations. Others have products and services that are still in development or have yet to be tested in the market. Another risk that pertains to microcap stocks involves the low volumes of trades. Because microcap stocks trade in low volumes, any size of trade can have a large percentage impact on the price of the stock.
What's So Important About Public Information?
Many of the microcap companies that don't file reports with the SEC are legitimate businesses with real products or services. But the lack of reliable, readily available information about some microcap companies can open the door to fraud. It's easier for fraudsters to manipulate a stock when there's little or no information available about the company.
Microcap fraud depends on spreading false information. Here's how some fraudsters carry out their scams:
E-mail Spam Fraudsters distribute junk e-mail or "spam" over the Internet to spread false information quickly and cheaply about a microcap company to thousands of potential investors. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing.
Internet Fraud Fraudsters often use aliases on Internet bulletin boards and chat rooms to hide their identities and post messages urging investors to buy stock in microcap companies based on supposedly "inside" information about impending developments at the companies. For more information about Internet fraud and on-line investing, read Internet Fraud and What You Need to Know About Trading in Fast Moving Markets.
Paid Promoters Some microcap companies pay stock promoters to recommend or "tout" the microcap stock in supposedly independent and unbiased investment newsletters, research reports, or radio and television shows. Paid promoters are generally behind the unsolicited "junk" faxes you may receive, touting a microcap company. The federal securities laws require the newsletters to disclose who paid them, the amount, and the type of payment. But many fraudsters fail to do so and mislead investors into believing they are receiving independent advice.
"Boiler Rooms" and Cold Calling Dishonest brokers set up "boiler rooms" where a small army of high-pressure salespeople use banks of telephones to make cold calls to as many potential investors as possible. These strangers hound investors to buy "house stocks" — stocks that the firm buys or sells as a market maker or has in its inventory. To learn more about cold calling, read Cold Calling Alert.
Questionable Press Releases Fraudsters often issue press releases that contain exaggerations or lies about the microcap company's sales, acquisitions, revenue projections, or new products or services. These fraudulent press releases are then disseminated through legitimate financial news portals on the Internet.
What If I Run Into Trouble?
Act promptly! By law, you only have a limited time to take legal action. Follow these steps to solve your problem:
Talk to your broker and explain the problem. What happened? Who said what, and when? Were communications clear? What did the broker tell you? Did you take notes about what your broker said at the time? If so, what do your notes say? Note: If you believe your broker engaged in unauthorized transactions or other serious frauds, be sure to put your complaint in writing right away and send it to the firm. Your written complaint may be the only way to prove that you complained to the firm about unauthorized transactions. For more information about unauthorized transactions, please read our "Fast Answer" on that topic.
If your broker can't resolve your problem, then talk to the broker's branch manager.
If the problem is still not resolved, put your complaint in writing and send it to the compliance department at the firm's main office. Explain your problem clearly, and tell the firm how you want it resolved. Ask the compliance office to respond to you in writing within 30 days.
If you're still not satisfied, then send a letter to your state securities regulator and attach copies of any letters you've sent already to the firm. Or send your complaint to the SEC using our online complaint
Information is the investor's best tool when it comes to investing wisely. But accurate information about "microcap stocks" — low-priced stocks issued by the smallest of companies — may be difficult to find. Many microcap companies do not file financial reports with the SEC, so it's hard for investors to get the facts about the company's management, products, services, and finances. When reliable information is scarce, fraudsters can easily spread false information about microcap companies, making profits while creating losses for unsuspecting investors.
In the battle against microcap fraud, the SEC has toughened its rules and taken actions against wrongdoers, but we can't stop every microcap fraud. We need your help in winning the battle. Before you consider investing in a microcap company, arm yourself first with information. This alert tells you about microcap stocks, how to find information, what "red flags" to consider, and where to turn if you run into trouble.
What Is a Microcap Stock?
The term "microcap stock" applies to companies with low or "micro" capitalizations, meaning the total value of the company's stock. Microcap companies typically have limited assets. For example, in cases where the SEC suspended trading in microcap stocks, the average company had only $6 million in net tangible assets — and nearly half had less than $1.25 million. Microcap stocks tend to be low priced and trade in low volumes.
Where Do Microcap Stocks Trade?
Many microcap stocks trade in the "over-the-counter" (OTC) market and are quoted on OTC systems, such as the OTC Bulletin Board (OTCBB) or the "Pink Sheets."
OTC Bulletin Board The OTCBB is an electronic quotation system that displays real-time quotes, last-sale prices, and volume information for many OTC securities that are not listed on the Nasdaq Stock Market or a national securities exchange. Brokers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. Although the NASD oversees the OTCBB, the OTCBB is not part of the Nasdaq Stock Market. Fraudsters often claim that an OTCBB company is a Nasdaq company to mislead investors into thinking that the company is bigger than it is.
The "Pink Sheets" The Pink Sheets — named for the color of paper on which they've historically been printed — are listings of price quotes for companies that trade in the over-the-counter market (OTC market). "Market makers" — the brokers who commit to buying and selling the securities of OTC issuers-can use the pink sheets to publish bid and ask prices. A company named Pink Sheets LLC, formerly known as the National Quotation Bureau, publishes the pink sheets in both hard copy and electronic format. Pink Sheets LLC is not registered with the SEC as a stock exchange, nor does the SEC regulate its activities.
How Are Microcap Stocks Different From Other Stocks?
Lack of Public Information The biggest difference between a microcap stock and other stocks is the amount of reliable, publicly available information about the company. Larger public companies file reports with the SEC that any investor can get for free from the SEC's website. Professional stock analysts regularly research and write about larger public companies, and it's easy to find their stock prices in the newspaper. In contrast, information about microcap companies can be extremely difficult to find, making them more vulnerable to investment fraud schemes.
No Minimum Listing Standards Companies that trade their stocks on major exchanges and in the Nasdaq Stock Market must meet minimum listing standards. For example, they must have minimum amounts of net assets and minimum numbers of shareholders. In contrast, companies on the OTCBB or the Pink Sheets do not have to meet any minimum standards.
Risk While all investments involve risk, microcap stocks are among the most risky. Many microcap companies tend to be new and have no proven track record. Some of these companies have no assets or operations. Others have products and services that are still in development or have yet to be tested in the market. Another risk that pertains to microcap stocks involves the low volumes of trades. Because microcap stocks trade in low volumes, any size of trade can have a large percentage impact on the price of the stock.
What's So Important About Public Information?
Many of the microcap companies that don't file reports with the SEC are legitimate businesses with real products or services. But the lack of reliable, readily available information about some microcap companies can open the door to fraud. It's easier for fraudsters to manipulate a stock when there's little or no information available about the company.
Microcap fraud depends on spreading false information. Here's how some fraudsters carry out their scams:
E-mail Spam Fraudsters distribute junk e-mail or "spam" over the Internet to spread false information quickly and cheaply about a microcap company to thousands of potential investors. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing.
Internet Fraud Fraudsters often use aliases on Internet bulletin boards and chat rooms to hide their identities and post messages urging investors to buy stock in microcap companies based on supposedly "inside" information about impending developments at the companies. For more information about Internet fraud and on-line investing, read Internet Fraud and What You Need to Know About Trading in Fast Moving Markets.
Paid Promoters Some microcap companies pay stock promoters to recommend or "tout" the microcap stock in supposedly independent and unbiased investment newsletters, research reports, or radio and television shows. Paid promoters are generally behind the unsolicited "junk" faxes you may receive, touting a microcap company. The federal securities laws require the newsletters to disclose who paid them, the amount, and the type of payment. But many fraudsters fail to do so and mislead investors into believing they are receiving independent advice.
"Boiler Rooms" and Cold Calling Dishonest brokers set up "boiler rooms" where a small army of high-pressure salespeople use banks of telephones to make cold calls to as many potential investors as possible. These strangers hound investors to buy "house stocks" — stocks that the firm buys or sells as a market maker or has in its inventory. To learn more about cold calling, read Cold Calling Alert.
Questionable Press Releases Fraudsters often issue press releases that contain exaggerations or lies about the microcap company's sales, acquisitions, revenue projections, or new products or services. These fraudulent press releases are then disseminated through legitimate financial news portals on the Internet.
What If I Run Into Trouble?
Act promptly! By law, you only have a limited time to take legal action. Follow these steps to solve your problem:
Talk to your broker and explain the problem. What happened? Who said what, and when? Were communications clear? What did the broker tell you? Did you take notes about what your broker said at the time? If so, what do your notes say? Note: If you believe your broker engaged in unauthorized transactions or other serious frauds, be sure to put your complaint in writing right away and send it to the firm. Your written complaint may be the only way to prove that you complained to the firm about unauthorized transactions. For more information about unauthorized transactions, please read our "Fast Answer" on that topic.
If your broker can't resolve your problem, then talk to the broker's branch manager.
If the problem is still not resolved, put your complaint in writing and send it to the compliance department at the firm's main office. Explain your problem clearly, and tell the firm how you want it resolved. Ask the compliance office to respond to you in writing within 30 days.
If you're still not satisfied, then send a letter to your state securities regulator and attach copies of any letters you've sent already to the firm. Or send your complaint to the SEC using our online complaint
Sunday, June 17, 2007
Money Exchange
Money Exchange
We at XE.com have a simple mission: to facilitate global commerce. Since 1993, we have grown to become the world's most popular currency and foreign exchange (fx, or forex) site by developing the powerful and efficient currency services that the new global economy demands. In 2002, we launched XEtrade, our discount on-line foreign exchange payment system. In 2006, we launched XE.com Forex Speculation, our currency speculation service that allows you to buy and sell foreign exchange positions in real time. To meet the needs of currency traders, in early 2007 we launched XE.com Charts and Graphs, offering free to premium charting options.
Interested in foreign exchange ("forex") speculation? XE.com Forex Speculation enables you to rapidly buy and sell foreign exchange positions -- in real time!
What is Forex Speculation?
Forex speculation is betting that one currency will increase in value relative to another. Our online forex speculation platform allows you to buy and sell currencies with the objective of profiting when the rate of exchange between two currencies changes in your favor. Exchange rates fluctuate as a result of many factors, such as market news, current events, trade flows, and speculative activity all round the world.
How Does It Work?
If you think that a currency rate is going to change, you can buy or sell a currency pair with the intention of profiting from that change. For example, if you believe that the Euro will increase in value against the US Dollar, you will buy Euros with US Dollars. If the exchange rate rises, you will sell the Euros back, making a profit.
Can I Use This System to Make International Payments?
No. With XE.com Forex Speculation, cashing out of the market always returns the funds to the original account, and in the same currency. For international payments, we offer XEtrade, our discount on-line foreign exchange payments system.
Is Forex Speculation For Everyone?
No. Currency speculation involves a high degree of risk, including the risk of losing your entire stake. Never speculate with money that you cannot afford to lose. Before deciding to sign up, please make sure you read the information on this site, including the Risk Warning section.
What Makes Forex Speculation Unique?
Forex is the world's largest market. With about two trillion US dollars in daily volume and 24-hour market action, it is a true "step above" the equities market for the serious trader.
Is It Hard to get Started?
No! Our free practice account enables you to experience forex speculation with absolutely no risk whatsoever. If you decide that XE.com Forex Speculation is appropriate for you, you can begin speculating with as little as $300 US Dollars!
What is Forex Speculation?
Forex speculation is betting that one currency will increase in value relative to another. Our online forex speculation platform allows you to buy and sell currencies with the objective of profiting when the rate of exchange between two currencies changes in your favor. Exchange rates fluctuate as a result of many factors, such as market news, current events, trade flows, and speculative activity all round the world.
How Does It Work?
If you think that a currency rate is going to change, you can buy or sell a currency pair with the intention of profiting from that change. For example, if you believe that the Euro will increase in value against the US Dollar, you will buy Euros with US Dollars. If the exchange rate rises, you will sell the Euros back, making a profit.
Can I Use This System to Make International Payments?
No. With XE.com Forex Speculation, cashing out of the market always returns the funds to the original account, and in the same currency. For international payments, we offer XEtrade, our discount on-line foreign exchange payments system.
Is Forex Speculation For Everyone?
No. Currency speculation involves a high degree of risk, including the risk of losing your entire stake. Never speculate with money that you cannot afford to lose. Before deciding to sign up, please make sure you read the information on this site, including the Risk Warning section.
What Makes Forex Speculation Unique?
Forex is the world's largest market. With about two trillion US dollars in daily volume and 24-hour market action, it is a true "step above" the equities market for the serious trader.
Is It Hard to get Started?
No! Our free practice account enables you to experience forex speculation with absolutely no risk whatsoever. If you decide that XE.com Forex Speculation is appropriate for you, you can begin speculating with as little as $300 US Dollars!
What Do Brokers in an Exchange Do?
What Do Brokers in an Exchange Do?
Probably the most important day—to–day activity that takes place in a commercial trade exchange is brokering the goods and services in the exchange. In other words, finding what clients need or want with businesses that can supply it on trade. Most exchanges employ individuals whose primary purpose is to do just that. They are referred to as brokers.
During the course of bringing businesses together to create trades, brokers also act as a resource and guide to their member – informing them on how to best utilize their trade credit and how to generate trade from new customers. Specialized knowledge of trade economics and ethics is a plus and can be obtained by studying and passing the Certified Trade Broker exam offered by the IRTA.
Things to ask your Trade Broker about:
Basic barter economics and member conduct
How to access the exchange’s Member Directory
On–line Services
Flyers to be included in the exchange’s regular mailings or e-mail communications
Networking events put on by the exchange to meet fellow members
Credit extension policies and procedures
Joining An Exchange
If you have determined that commercial barter is for you, then you should take the following steps:
First things first, make sure that your business is stable with cash flow. If your business is already experiencing cash flow problems, don’t assume that barter is going to solve them.
Locate an exchange nearest you. The IRTA Member Directory will enable you to search for IRTA member exchanges. Make sure you know why it is important for an exchange to be an IRTA Member Exchange or an IRTA Certified Exchange.
Develop a List of Wanted Goods or Services. Identify 10–12 items or services that you typically, and perhaps regularly, spend cash on. Show this list to the exchange you are considering and have them provide information on their availability.
Determine if you will be assigned a Trade Broker within the exchange.
Understand the fee structure of the exchange. Ask the exchange to go over any costs associated with becoming a member, maintaining membership annually, as well as the cost of trading within the exchange (transaction fees). Not all exchanges charge the same.
Determine with the exchange the anticipated demand for your product or service within the exchange membership. You want to know if you should be prepared for either a lot of requests from exchange members or infrequent requests. If the exchange does not believe that there will be reasonable demand for your product or service, you should think twice about joining.
Ask the exchange about their code of conduct and affiliations with organizations like the IRTA. Exchanges who participate in such organizations typically have a higher standard and work hard to protect their reputation within the industry. See “Why Join IRTA”.
If you have a product or service that can be sold to a global marketplace, ask the exchange what resources and affiliations they have to sell your goods in this way. For example, Universal Currency allows exchanges to access a worldwide barter marketplace.
Probably the most important day—to–day activity that takes place in a commercial trade exchange is brokering the goods and services in the exchange. In other words, finding what clients need or want with businesses that can supply it on trade. Most exchanges employ individuals whose primary purpose is to do just that. They are referred to as brokers.
During the course of bringing businesses together to create trades, brokers also act as a resource and guide to their member – informing them on how to best utilize their trade credit and how to generate trade from new customers. Specialized knowledge of trade economics and ethics is a plus and can be obtained by studying and passing the Certified Trade Broker exam offered by the IRTA.
Things to ask your Trade Broker about:
Basic barter economics and member conduct
How to access the exchange’s Member Directory
On–line Services
Flyers to be included in the exchange’s regular mailings or e-mail communications
Networking events put on by the exchange to meet fellow members
Credit extension policies and procedures
Joining An Exchange
If you have determined that commercial barter is for you, then you should take the following steps:
First things first, make sure that your business is stable with cash flow. If your business is already experiencing cash flow problems, don’t assume that barter is going to solve them.
Locate an exchange nearest you. The IRTA Member Directory will enable you to search for IRTA member exchanges. Make sure you know why it is important for an exchange to be an IRTA Member Exchange or an IRTA Certified Exchange.
Develop a List of Wanted Goods or Services. Identify 10–12 items or services that you typically, and perhaps regularly, spend cash on. Show this list to the exchange you are considering and have them provide information on their availability.
Determine if you will be assigned a Trade Broker within the exchange.
Understand the fee structure of the exchange. Ask the exchange to go over any costs associated with becoming a member, maintaining membership annually, as well as the cost of trading within the exchange (transaction fees). Not all exchanges charge the same.
Determine with the exchange the anticipated demand for your product or service within the exchange membership. You want to know if you should be prepared for either a lot of requests from exchange members or infrequent requests. If the exchange does not believe that there will be reasonable demand for your product or service, you should think twice about joining.
Ask the exchange about their code of conduct and affiliations with organizations like the IRTA. Exchanges who participate in such organizations typically have a higher standard and work hard to protect their reputation within the industry. See “Why Join IRTA”.
If you have a product or service that can be sold to a global marketplace, ask the exchange what resources and affiliations they have to sell your goods in this way. For example, Universal Currency allows exchanges to access a worldwide barter marketplace.
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