Reading Foreign Exchange Quotes

By Bart Icles

The foreign exchange market can overwhelm a lot of people. Having a good grasp of foreign exchange trading can help you a lot in starting your foreign exchange venture. After having substantial knowledge of the basics of the foreign exchange market, you can start working on learning how to buy and sell currencies.

Learning how to read foreign exchange quotes in spot markets is a basic step in foreign exchange trading. A currency is quoted in relation to another currency, wherein the value of one currency is shown through the value of another. A foreign exchange quote typically looks like this: USD/EUR = 0.7076. This reads that one US dollar is equivalent to 0.7076 Euros. The currency on the left side of the slash is the base currency and the one on the right is the quote or counter currency. When taken together, this is what foreign exchange market players refer to as a currency pair.

Normally, currencies are traded in the foreign exchange market with the US dollar as the base currency. When a quote does not indicate the US dollar as one of its components, it is called a cross currency. An example of a cross currency pair is EUR/JPY, wherein the quote will indicate how much Japanese yen does one Euro cost. Cross currencies can open new opportunities in the foreign exchange market. However, you should take note that cross currencies are not as actively traded than pairs that include the US dollar.

Currencies can be quoted in two ways: directly and indirectly. Direct currency quotes are simply currency pairs wherein the domestic currency is the base currency. In contrast, indirect currency quotes are those where the domestic currency is the quoted or counter currency. For example, you are looking at the Euro as the domestic currency and the US dollar as the foreign currency. The direct currency quote for this pair should read EUR/USD, and its indirect currency quote is USD/EUR.

You should also be familiar with the bidding and asking prices in the foreign exchange market. Currency pairs are traded with bid and ask prices, wherein the bid price is they buying price and the ask price is the selling price in relation to the base currency. In buying a currency pair, the ask price is the amount of quoted currency that need to be paid to buy one unit of the base currency. The bid price on the other hand is the amount of quoted currency that can be bought with one unit of the base currency.

Two other terms that you also need to be familiar with are spreads and pips. Spreads refer to the difference between the bid price and the ask price. A pip is the smallest movement that a currency price can make. In a currency pair that reads USD/EUR = 0.7076/03, the spread is 0.0003 or 3 pips. A change of three pips would result to 0.7079 from 0.7076. - 23199

About the Author:

Your forex training software starts with a desire to learn and a drive to become a great trader. Using the best forex training takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

American Gold Buffalo Coins - Is Proof Or Circulated the Better Investment Vehicle?

By Christina Goldman

You may be confused about investing in the American Gold Buffalo Coins that are either proof or circulated. Is there really any difference between the two types? Since you may be new to investing in gold bullion coins, here are some facts to clear up things for you:

The term circulated implies the coin has already signs of wear since it has been used in commerce. The term evidence, on the other hand, suggests that the coin went thru a special minting process of polish and die treatment so making the coin appear a little different.

This scenario gives a speculator some stable investments he will be able to definitely count on. The coins are made of 99.9% gold or an equivalent of 24K. Since Gold is considered recession-proof, backers are guaranteed of a worthwhile investment even in they are caught in the middle of a finance instability.

The emergence of web purchases has reached these gold coins already and it would be best to grasp the true gold coins from the gold covered chocolate coins. These American Buffalo Gold evidence coins have a "W" on the front side. This indicates that the coin is indeed an explanation edition. Each of these evidence coins are warranted by the US state for its gold content and purity.

When you invest in the American Buffalo Gold explanation coin, you can simply liquidate it to cash since they're widely accepted and traded across all markets. Coin buyers, collectors and financiers alike know good value when they discover one so they are rushing to get as many explanation coins as they can.

In the future, you can definitely be rewarded for choosing to invest in the evidence copy of the American Buffalo Gold Coins. The sale attractiveness of these American Buffalo Gold Proof Coins are increasing considerably amidst the bear market and the fall of the US economy. - 23199

About the Author:

You can find fabulous prices and selection on the gorgeous 2008 American Buffalo One Ounce Gold Proof Coin at: http://GoldBuffaloProof.com

How To Judge An Offer When Your House Is On The Market

By Doc Schmyz

So you decided to sell your home, you have picked the a real estate agent, and have listed your home. You have held several open houses and got some interest and you have finally received an offer. How do you tell if this is a good offer or not? Of course, your agent will help in that department, but, remember, they are there to sell your home they don't have any idea what will work for you and your family.

First thing to look at is the buyer's financing. Are they able to get a loan or are they just hoping to qualify? The best case scenario would be that they are pre-approved which means that a bank/lender has taken a look at their income, credit, and down payment and has agreed that they would qualify for a certain amount of financing. This is a good indication that the loan will go through. Sometimes, the offer will not include that the loan is pre-approved, but if the buyer really wants the home, they will include a letter of pre-approval to help your selection along. As a buyer, you or your agent has the right to contact the bank and make sure the information presented is correct and that the bank has verified income, employment, and down payment funds.

Next, you should consider if the buyer has put down a substantial down payment. The larger amount, the better for the sale to go through. The more money the seller has invested in the contract, the less likely they will be to back out. If the amount of money put down is not sufficient for your liking, then you have the right to ask for more.

Be sure to look for special conditions within the contract that you cannot meet or control. For example :If a buyer must sell his home first before purchasing your home.This condition requires you to factor in other questions. Does he have any offers on his home now or any approved buyers? He does have his house listed with an agent, doesn't he? If there are any clauses that you do not understand, you must clarify them in writing.

One other thing that you must realize in the real estate contract you will receive is there are dates and deadlines that must be reviewed. There is a certain rhythm for things to happen. For instance, there should be an inspection, appraisal, loan approval, and the closing date. These items should not have excessive time allotted to each by the buyer. For example, the closing date must allow time for the bank process to be completed including the underwriting, appraisal, and paperwork. The inspection date should be close to the contract date to allow time for any problems to be resolved quickly by the seller so the contract can be completed.

Any of the above mentioned items can void your contract. Be sure you understand all that is being asked of you, make sure the terms listed and set in all the documents make sense to you, before you complete the sale. - 23199

About the Author:

Doc Schmyz has invested all over the US. He built a free website shares Real estate investing information for all over the US. Find Real estate investing information by state

Forex Trade - A Short Definition

By Bart Icles

Forex, Foreign exchange, or plain FX are the terms used to describe the trading of the word's currencies. Forex market is the world's biggest market with trade deals exceeding 3 trillion dollars a day, 24/7. Trading in Forex in general is done speculatively. Unlike stock trading, it is not conducted by a central exchange, but on five major trading centers around the world namely: New York, Frankfurt, London, Tokyo, and Sydney. Forex trading takes place between two counterparts either from telephone or on electronic networks all over the world.

Currency trade is the buying and selling of one currency to another. This currency combination is called a "cross", e.g. the US dollar/ther Euro, or the GB pound/Japanese yen. Most commonly traded currencies are aptly named majors: EURUSD, USDJPY, GBPUSD, USDCHF. Spot market is the most important Forex market as it has the largest volume. This is termed so because traders are settled immediately or are "on the spot".

The major advantages of trading Forex is the opportunity to trade in a 24/7 basis, which offers traders to react instantly to major developments currently affecting the market. With its liquidity, Forex trades can always be done with a steady stream of buyers and sellers. With this, price stability and narrow spreads, especially that of the major currencies is greatly ensured. The liquidity is mainly derived from banks that provided liquidity to investors, institutions, companies, and other market players.

No commissions are often done in trading which makes an enticing come-on for investors who deal on a frequent basis. Due to its high level of liquidity, trading the "majors" is cheaper than trading the "cross".

Whatever the relation of one currency to another is, there are always trading opportunities to be had because of the constant movement of the market. Trading currencies involves pitting one currency with another. Take an example of the major currencies EUROUSD. If this declines, it means that either the USD is getting stronger than the EURO, or the USD is weakening against it. So, if a trader sees that this happening ( EURO will weaken vs the dollar), he would sell EURO now and buy back at a other time at a lower price, or vice versa.

Forex trading is very risky, yet also full of potential. Risk management should be one of the most important aspects a trader has to consider in order to stay successfully in the business. - 23199

About the Author:

Forex investing starts with a desire to learn and a drive to become a great trader. Learning forex software takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Getting to the Truths of Stock Trading

By W. Alan Gay

There are a lot of wrong ideas buzzing around about the field of stock trading that arouse new trader's doubts and keep others from pursuing the field at all. As a prosperous trader for more than 15 years, I am inclined to take a more affirmative attitude and focus on the universal truths that exist in the field of stock trading. Here are just a few.

1. You will be successful at stock trading if you can keep your trades consistently low risk over time. Sure, you might miss out on some of those too good to be true, windfall trades that all the movies are centered around. However, you will find that, over time, searching for those dream come true trades more often than not results in a fantastic loss that ends up deteriorating the portfolio you worked so hard to accumulate. Better to keep your trades lower risk and steadily profitable over time if you are serious about making money at stock trading.

2. Trading does not have to take all day to be a lucrative profession. It does not have to be a nine to five job. However, please don't get the wrong impression. I'm not implying that stock trading is another make money while you sleep angle. It takes work and commitment to master the procedures needed to accomplish success at stock trading. But, by using GAP trading capably, I trade for two to four hours per day, plus one more hour of prep time. And, I earn a great living. With the right process, this success story can be yours as well.

3. The experiences of other successful traders who have "gone before" you can speed up your success tremendously. Don't start from scratch because it will take you 10 or more years and a lot of money to make all the mistakes others have already made. It is just smart business to use the knowledge of others. How many times do we hear "don't reinvent the wheel", then turn around and do just that? Instead, read books by successful traders, take classes, find mentors, and use the wisdom of others to make your road more pleasurable and secure.

Stock trading is often portrayed as mysterious and hard for "regular guys" to understand. Take it from a "regular guy", that perception is not right. With the right systems in place and a working knowledge of the basic truths of stock trading, anyone can be successful. - 23199

About the Author:

W. Alan Gay has been a day trader and coach for fifteen years. His free report describes Alan's journey to becoming successful at trading stocks and gives useful techniques he and his students have used to repeatedly trade successfully. Click to obtain a free copy of his report and learn more about how you could be trading stocks successfully in as little as fourteen days.