What You Should Know About Forex Trading

By Jean Dirlin

Perhaps you have just heard about Forex trading or you have an interest in finding your own place for investing and want to know more about the currency marketplace. The foreign exchange market may seem a bit intimidating when you are first starting out. With a little study and participation, you find that Forex trading is so popular since it offers a very straightforward approach.

Understanding what happens when currencies travel between businesses is the most essential aspect of understanding Forex trading. For example, let us say you have someone with goods they want to sell in a foreign country. Upon getting to that particular country, you find that you will have to trade your countries currency for that of the local currency. You will not be able to spend your local money while in a foreign country.

The Forex market is safe and straightforward, since you can buy and sell various currencies daily for that day's worth on the market. Various aspects of the foreign exchange market determine pricing. It involves two traders exchanging two different currencies of equal amounts.

Alternatively, the forwards market and the futures market are transactions of contracts that present a future date for completing specific currencies with specific price per unit. Since these are speculative markets, it is easier to lose rather than win a great deal of money.

When dealing in the forwards market, both traders figure their own terms between themselves. When dealing in the futures market both traders will exchange future contract that have a basis in the information of each public commodities market.

The transfer of money from country to country makes up the world's largest and in many ways, most liquid financial market. It is even larger than the stock market; with the Forex market, you'll find that there are more than 2000 billion US dollars trade every day.

Trading on the Forex has become so trendy since there is no real central location for dealing. You do not need to be in a metropolis area to trade on the Forex. The majority of trading occurs over the counter or OTC from any online computer. You can do Forex trading from home.

Are you interested in the Forex market? The liquidity and the volatility of the Forex market can bring about great rewards and great losses, so it is important to know where you stand. Take some time to really figure out what your options might be and what your place in these exchanges might do for you. - 23217

About the Author:

Author: Jean Dirlin - A Forex Active Trader Live Forex Trading Strategies & Signals Learn to trade currency like a Pro - Real Traders Real Trades Real Success

History of T-Strips

By Brandon Hillman

T-Strip are a great investment tool if you know what they are. The term STRIP is an acronym which stands for "Separate Trading of Registered Interest and Principal Securities." T Strips are U.S. Treasury securities that are issues by the Treasury for zero-coupon securities which have a maturity period over one year. The STRIPS program gives investors much more flexiblity in how they trade for the securities.



How It All Began

People call then T-STRIPS due to the fact that they are issued by the Treasury. The background behind the start of T-Bill trading took a path closely related to the dawn of the computer age. In the era of break dancing, rubics cube, and parachute pants, there was a new method of investing that was being born on the technological backbone of new computer software and hardware. T-Strip trading was much different than the old style coupon tearing of the old style zero coupon bonds. The US Treasury made the new form official by passing out identifications for the new STRIPS called a CUSIP code.

Under this program, the financial entity can provide the Treasury with standard treasury note or treasury bond that can be stripped. Not naked! :-) ..but stripped into individual instruments of cash flow. At this point the securities are returned to the financial entity. The United Treasury also makes sure that all the parts of a T-Strip are tagged so that the reconstitution of them later can happen without the danger of synthetic bonds never issued by the Treasury.

For example, a 10-year note which is issued will be stripped into 20 interest payments, two for each year or semi-annually for 10 years and one principal payment which will be due at its maturity date. All twenty interest payments plus the single principal payment are converted to STRIPS, each of them will then become a separate security. The new separate securities are then identified as coupon strips for the interest payments and principal strips for the principal payment. Jointly they are called Treasury STRIPS.

These Treasury STRIPS are separate zero-coupon securities. Nothing is different about them at all from the zero-coupon securities. As a matter of fact, to an investor, there is not a difference between a coupon strip and principal strip, although in reality the Treasury STRIPS are not identical. In the example given, all twenty one coupons have a unique identifying number called the CUSIP number.

The STRIPS program mandates that all the disaggregated or "stripped" securities be kept in a book-entry system for easier tracking and transfer efficiency; this is the purpose of the said CUSIP number. Now, all the coupons can be traded and held individually.

T Strips Are Risk Free

It is important to know that STRIPS are not issued or sold directly to investors. In order to but U.S Treasury STRIPS, you need to use officially licensed financial institutions and U.S. government securities brokers and dealers. There are options in how the maturity of the STRIPS occur over the period of the investment. It can be from ten to thirty years. STRIPS are highly popular with investors who want to be sure they receive a known payment amount on a specific future date, because it is a very safe investment.

Treasury STRIPS allows liquidity in the marketplace because it provides investors with many maturity tochose from. Like other zero-coupon instruments STRIPS can be used to acheive a wide range of objectives because they are known to have cash-flow values at a known future date. They are appealing to investors with their own opinions regarding interest rates, because prices of STRIPS are especially sensitive to changes in interest rates.

Treasury STRIPS are much more popular in economic times like today when the short-term interest rates are at their lowest. Investors don't intend to invest so much in short term bank rates and reinvesting bond proceeds are also out of favor. It is during times of like this, when the rock solid foundation of T-Strips combined with the full backing of the U.S. government that investors flock to the solid investments provided by zero-coupon securities in the form of T-strips. - 23217

About the Author:

Looking for Treasury strips? Contact http://www.wallstreetcapitalfinancing.com at 1-877-278-7823 for more information. Also have MTN's, BG's, & offering Business Loan.

How do Stock Prices Change?

By Robbin Carols

There are basically two main ways to profit from buying stocks. First, many corporations pay dividends to their shareholders. They may pay 50 cents per quarter for each share you own. This is not required of a corporation, so you may or may not be paid dividends.

Capital gains are another way to profit from stock purchases. You buy the stock at one price and at a future time, whether it's in an hour or in 20 years, you sell it for a higher price. After you take the difference, the amount you sold it for over the amount you paid is a capital gain.

Investors are usually hoping to make capital gains when they buy shares of stock. People who are in or nearing retirement may prefer high dividend paying stocks that are stable for a source of income, but for others, dividends aren't where they expect to make most of the money.

In order to make capital gains, the stock price has to go up. The stock price can go up or down. It varies from day to day. How can you know it will go up and how exactly does it change?

Do you remember the principle of supply and demand that you learned in your high school economics class? It is a basic term that explains the change in stock prices just as the change in prices of any other goods or services.

When the supply increases and the demand stays the same, the price will decrease. When the demand increases and the supply stays the same, the price increases. They vary inversely and the price adjusts along with them.

With stocks, if a lot of people want to buy a particular stock and not enough people are selling, they will have to raise the price to accommodate for it. If there are more people looking to sell than people willing to buy, they will need to decrease the price to get people to buy.

If you understand how this works, you can better understand how to make money with stocks. You want to buy stocks that you think a lot of people will be buying in the future so that the price goes up. - 23217

About the Author:

Do you want to know how do stocks work? Find out if you should choose the stock market or bond market to invest in.

The Eisenhower Silver Dollar - A Silver Coin Fit For A President

By Christina Goldman

Investors who prefer very big coins will be attracted to the Eisenhower Silver Dollar. Its edge is receded which, in itself, is not exceptional, and is much like any general coin of its family. But its diameter of 38.1 mm make this silver dollar a delight for collectors of over-sized coins.

Greatness is of course the imbued trait of this coin as it was minted from 1971 to 1978 to honor the 34th President of the United States, also a five-star general whose fabled World War II exploits have been immortalized in many books, both civilian and military tomes at that.

Other coins have been minted in honor of President Eisenhower, and which are totally different from the Eisenhower Silver Dollar. A $1 Eisenhower commemorative coin was minted in 1990 and another will come out in 2015 under the Presidential $1 Coin Program.

The Eisenhower Silver Dollar bears the design of Frank Gasparro who likewise rendered the coins reverse side with the Apollo 11 insignia, an icon to mark the moon landing in 1969. That was also the year that President Eisenhower also died, so this silver dollar has some sort of an alpha-omega interpretation.

The Eisenhower Silver Dollar did not see much circulation owing perhaps to its cumbersome size. However, it was minted again to mark the US bicentennial in 1976. This commemorative coin was designed by Dennis Williams who added the Liberty Bell to the reverse while maintaining the Apollo 11 tribute with the image of the moon. This one maintained the original size of 38.1 mm, however.

Significantly, the Eisenhower dollar was the last mintage to have base metal content proportionate to lower coin denominations. Its cupronickel content for instance is ten times that of the Roosevelt dime, four times that of the Washington quarter, and twice of the Kennedy half dollar. - 23217

About the Author:

You'll find great selection and terrific prices on the impressive Eisenhower Silver Dollar at: http://SilverDollarCoins.net/

CFD Trading - CFD Trading Tips

By cfdreport

In today's economy as we all face a world wide recession we are all seeking ways of generating more income. There is one market that is recession proof and that can make you so much money. CFD Trading! CFD trading is the fastest growing market in the world simply because of the hours it is open and the liquidity that it offers. Every day it is turning over billions and billions of dollars on the CFD Market, how much of that are you currently making?

So how can you get involved and how can you make money?

The first step that you need to do is get yourself educated, start learning the skills required to become a successful CFD trader. The best place to get yourself educated is at the CFD FX REPORT they have a host of free articles that will help build your knowledge and assist you to become a great trader.

They will also help you with step 2 finding a great CFD broker as they have reviewed all the best CFD brokers and have come up with who they believe to be the best broker in the market. This is save you a lot of time and money.

How to Win at CFD Trading:

The way to win in CFD trading is to understand the keys to success are: A simple system, you have learned, understand, have confidence in and can apply with discipline, to seek long term gains. It's a combination of mindset and method and you need to understand that you need to lose short term and keep your losses small, to win long term and stay on course.

The myths that you simply make money with no effort by following others, will have no losses and it's easy to make money, leave traders unprepared for the reality of the brutal world of trading.

If however you understand this article and you can see through the myths and know what is required to win, no other venture will reward you with such fantastic gains for your effort. - 23217

About the Author:

The CFD FX REPORT is a real time trading tool that offers clients free trading reports, with trading ideas, stock market and forex market education as well helping them with. Also if you are looking for a Forex Broker, then feel free to visit our broker section as we recently reviewed all the forex brokers and have found the best on the market.