Tuesday, March 23, 2010

Forex currency market

Forex meanings instruments, such as paper currency, notes, and checks, used to make payments between countries.

FOREX - The forex is main thing foreign exchange market or currency market or forex is the market where one currency is traded for another. It is one of the largest markets in the world, including india.

Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.

In the foreign exchange market there is little or no 'inside information'. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time.

Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted AAA/BBB, where BBB is the ISO 4217 international three-letter code of the currency into which the price of one unit of AAA currency is expressed. For instance, EUR/USD is the price of the euro expressed in US dollars, as in 1 euro = 1.2045 dollar.

Forex is a business segment within SAFC, a division of the Sigma-Aldrich Corp. (SIAL) said it intends to invest $2 million or about 1.2 million pounds Sterling in expanding production of trimethylgallium or TMG at its Bromborough, Wirral, UK manufacturing plant. The investment, supported by Wirral Council and The Mersey Partnership or TMP, who helped secure additional funding of 300,000 pounds from the Northwest Regional Development Agency, is expected to enable SAFC Hitech to strengthen its position as a global supplier of TMG and satisfy the growing demand for the material in the production of high brightness LEDs or HBLEDs for use in applications such as backlighting in flat panel television sets and energy efficient lighting, Sigma-Aldrich noted. Geoff Irvine, VP, Business Development, SAFC Hitech commented.

by: www.hipowergentec.com

Monday, March 22, 2010

Forex Capital

Forex Capital Markets are foreign exchange markets, where currencies are bought and sold continuously for profits. The capital markets are in the world to change and are non-stop in the foreign exchange in cash. If its Sydney or Tokyo, is a dynamic for dealers and brokers for marketing within the computer screens and telephones for small changes can affect this trade.

Foreign exchange is determined by the benefits of buying and selling of foreign exchange.

Forex Capital Markets are foreign exchange markets, where currencies are bought and sold continuously for profits. The capital markets are in the world to change and are non-stop in the foreign exchange in cash. If its Sydney or Tokyo, is a dynamic for dealers and brokers for marketing within the computer screens and telephones for small changes can affect this trade.

Foreign exchange is determined by the benefits of buying and selling of foreign exchange. The currencies are always bought and sold in pairs. Let us take an example to clarify the evolution

A trader for trading in Euro / U.S. Dollar. (All figures are samples only) for the purchase of EUR 10,000 on January 1 when the EUR / USD from the 9600th Then he sells the euro from 1.1800 at the market. On 1 August. It is $ 11.800. Something cold currency transaction gain of $ 2200th

Like all currencies bought and sold couple must decide which of two currencies, which you do business in foreign po In this example the GBP is the currency and the dollar is the summons or in the currency counters. If you have euros (sale of U.S. Dollar), while in its decision on the fact that the EURO May enjoy in the future. Therefore by selling Euros in U.S. Dollar back to U.S. Dollar and thus more profit.

If your hypothesis is that the U.S. market value, then a SELL EUR / USD. Therefore good that the selling of euros (in conjunction with the purchase of USD). U.S. dollars can be sold at a later date into a profit.

FXCM Holdings LLC Releases Financial Data: Over $100 Million in Capital
FXCM Holdings LLC has made an unprecedented public release of its balance sheet and invites other firms within the forex industry to follow its example.
Highlights of the (unaudited) balance sheet include the following:
$129,449,027 In Capital (Assets Minus Liabilities)
$141,604,613 In Operating Cash (Excludes Client Funds)
Drew Niv, CEO of the global trading firm, commented: "FXCM is proud of our financial discipline and strong balance sheet. We believe clients should have the necessary information to make intelligent choices. By releasing this information, we hope to set an example for the entire forex industry."
Balance Sheet (Unaudited)
(Amounts in USD)

CUSTOMER CASH $353,609,924

OPERATING CASH $141,604,613

OTHER ASSETS $12,589,898

FIXED ASSETS $9,829,924

TOTAL ASSETS $517,634,359





FXCM CAPITAL $129,449,027


FXCM Holdings, LLC consists of FXCM Australia LTD., Forex Trading LLC, Forex Capital Markets LLC, Forex Capital Markets LTD, FXCM Asia LTD and FXCM DMCC.

Forex Capital Markets LLC
is one of the largest Forex Dealer Members
Forex Capital Markets LLC (FXCM) is regulated as a Forex Dealer Member by the National Futures Association. Forex Dealer Members are U.S. registered Futures Commission Merchants that have greater than 35% of revenue from foreign exchange.

By : www.hipowergentec.com

Sunday, March 21, 2010

Market participants

Market participants

Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order.
Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of stock exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders.
Actual trades are based on an auction market model where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept anyask price or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place, on a first-come-first-served basis if there are multiple bidders or askers at a given price.
The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace (virtual or real). The exchanges provide real-time trading information on the listed securities, facilitating price discovery.

The New York Stock Exchange is a physical exchange, also referred to as a listed exchange — only stocks listed with the exchange may be traded. Orders enter by way of exchange members and flow down to a floor broker, who goes to the floor trading post specialist for that stock to trade the order. The specialist's job is to match buy and sell orders using open outcry. If a spread exists, no trade immediately takes place--in this case the specialist should use his/her own resources (money or stock) to close the difference after his/her judged time. Once a trade has been made the details are reported on the "tape" and sent back to the brokerage firm, which then notifies the investor who placed the order. Although there is a significant amount of human contact in this process, computers play an important role, especially for so-called "program trading".
The NASDAQ is a virtual listed exchange, where all of the trading is done over a computer network. The process is similar to the New York Stock Exchange. However, buyers and sellers are electronically matched. One or more NASDAQ market makers will always provide a bid and ask price at which they will always purchase or sell 'their' stock.
The Paris Bourse, now part of Euronext, is an order-driven, electronic stock exchange. It was automated in the late 1980s. Prior to the 1980s, it consisted of an open outcry exchange. Stockbrokers met on the trading floor or the Palais Brongniart. In 1986, the CATS trading system was introduced, and the order matching process was fully automated.
From time to time, active trading (especially in large blocks of securities) has moved away from the 'active' exchanges. Securities firms, led by UBS AG, Goldman Sachs Group Inc. and Credit Suisse Group, already steer 12 percent of U.S. security trades away from the exchanges to their internal systems. That share probably will increase to 18 percent by 2010 as more investment banks bypass the NYSE and NASDAQ and pair buyers and sellers of securities themselves, according to data compiled by Boston-based Aite Group LLC, a brokerage-industry consultant.
Now that computers have eliminated the need for trading floors like the Big Board's, the balance of power in equity markets is shifting. By bringing more orders in-house, where clients can move big blocks of stockanonymously, brokers pay the exchanges less in fees and capture a bigger share of the $11 billion a year that institutional investors pay in trading commissions as well as the surplus of the century had taken place.

Importance of stock market

Importance of stock market

Function and purpose

The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such asreal estate.
History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up and coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'ĂȘtre of central banks.
Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction.
The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment. In this way the financial system contributes to increased prosperity. An important aspect of modern financial markets, however, including the stock markets, is absolute discretion. For example, American stock markets see more unrestrained acceptance of any firm than in smaller markets. For example, Chinese firms that possesses little or no perceived value to American society profit American bankers on Wall Street, as they reap large commissions from the placement, as well as the Chinese company which yields funds to invest in China. However, these companies accrue no intrinsic value to the long-term stability of the American economy, but rather only short-term profits to American business men and the Chinese; although, when the foreign company has a presence in the new market, this can benefit the market's citizens. Conversely, there are very few large foreign corporations listed on the Toronto Stock Exchange TSX, Canada's largest stock exchange. This discretion has insulatedCanada to some degree to worldwide financial conditions. In order for the stock markets to truly facilitate economic growth via lower costs and better employment, great attention must be given to the foreign participants being allowed in.