What Is Forex?
The foreign exchange market is the "place" where currencies are traded. Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. If you are living in the U.S. and want to buy cheese from France, either you or the company that you buy the cheese from has to pay the French for the cheese in euros (EUR). This means that the U.S. importer would have to exchange the equivalent value of U.S. dollars (USD) into euros. The same goes for traveling. A French tourist in Egypt can't pay in euros to see the pyramids because it's not the locally accepted currency. As such, the tourist has to exchange the euros for the local currency, in this case the Egyptian pound, at the current exchange rate.
The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world. It dwarfs other markets in size, even the stock market, with an average traded value of around U.S. $2,000 billion per day. (The total volume changes all the time, but as of August 2012, the Bank for International Settlements (BIS) reported that the forex market traded in excess of U.S. $4.9 trillion per day.)
One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.
Spot Market and the Forwards and Futures Markets
There are actually three ways that institutions, corporations and individuals trade forex: the spot market, the forwards market and the futures market. The forex trading in the spot market always has been the largest market because it is the "underlying" real asset that the forwards and futures markets are based on. In the past, the futures market was the most popular venue for traders because it was available to individual investors for a longer period of time. However, with the advent of electronic trading, the spot market has witnessed a huge surge in activity and now surpasses the futures market as the preferred trading market for individual investors and speculators. When people refer to the forex market, they usually are referring to the spot market. The forwards and futures markets tend to be more popular with companies that need to hedge their foreign exchange risks out to a specific date in the future.
What is the spot market?
More specifically, the spot market is where currencies are bought and sold according to the current price. That price, determined by supply and demand, is a reflection of many things, including current interest rates, economic performance, sentiment towards ongoing political situations (both locally and internationally), as well as the perception of the future performance of one currency against another. When a deal is finalized, this is known as a "spot deal". It is a bilateral transaction by which one party delivers an agreed-upon currency amount to the counter party and receives a specified amount of another currency at the agreed-upon exchange rate value. After a position is closed, the settlement is in cash. Although the spot market is commonly known as one that deals with transactions in the present (rather than the future), these trades actually take two days for settlement.
What are the forwards and futures markets?
Unlike the spot market, the forwards and futures markets do not trade actual currencies. Instead they deal in contracts that represent claims to a certain currency type, a specific price per unit and a future date for settlement.
In the forwards market, contracts are bought and sold OTC between two parties, who determine the terms of the agreement between themselves.
In the futures market, futures contracts are bought and sold based upon a standard size and settlement date on public commodities markets, such as the Chicago Mercantile Exchange. In the U.S., the National Futures Association regulates the futures market. Futures contracts have specific details, including the number of units being traded, delivery and settlement dates, and minimum price increments that cannot be customized. The exchange acts as a counterpart to the trader, providing clearance and settlement.
Both types of contracts are binding and are typically settled for cash for the exchange in question upon expiry, although contracts can also be bought and sold before they expire. The forwards and futures markets can offer protection against risk when trading currencies. Usually, big international corporations use these markets in order to hedge against future exchange rate fluctuations, but speculators take part in these markets as well. (For a more in-depth introduction to futures, see Futures Fundamentals.)
Note that you'll see the terms: FX, forex, foreign-exchange market and currency market. These terms are synonymous and all refer to the forex market.
Read more: Forex Tutorial: What is Forex Trading? https://www.investopedia.com/university/forexmarket/forex1.asp#ixzz525bWN7J6
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Reasons Why Your Small Business Need Business Cards
Did you know that business cards date back in the 17thCentury? They first appeared in England whereby they were used to promote trade and give directions to business places. To date, they are still considered as one of the brilliant investments a company can use for promotional purposes. Does this sound exaggerated? Some businessmen have a wrong notion about this tool- that it is only for established career people such as doctors and lawyers. However, even the smallest businesses should have official cards. They portray self-assurance and can help your venture move a notch higher.The idea of minimizing your services into a few concise statements sounds a little overwhelming. Note that the card is not all about print. You must get the wording right if you want it to turn into a success. Regardless of what your business does, there are countless ways a card can enhance your venture. Let us explore reasons you must design business cards for your small enterprise.
1. To show credibility
Attaching your contacts on a card for your small business is a good way of telling people that they can trust you because you are honest and reliable. People normally question the credibility of a business that doesn’t have cards and it is easier to forget such a business. So, you need a professional card to prove your credibility.
2. To form a network
If you are a social person, you understand the importance of introducing yourself to new people. A true business person lets other people know what she/he does. If you attend conventions, you want to give out something that will make other people remember your business, and you can achieve this through cards. You never know, the person you meet today can turn out to be your potential client. That’s why you must be ready all the time with several cards on hand. You need to take advantage of any networking opportunity that presents itself. Don’t be like the uninformed businessman who mumbles something like, “Well, I deal with almost any kind of business.”
3. To promote your business
As mentioned before, a business card is a great marketing tool. It introduces your business to both the design and words. If you create an attractive card, your audience will want to hang on to it. It is the physical object that keeps your business from just being a name.
4. To distinguish your venture
It puts a face to your business and simply sets you apart, making your business to upstage the competitors. The first impression of a good business card can create a long-lasting memory on somebody. It reflects the aim of your business so that people can see how different you are. These days, you can control how your card looks, thanks to the modern printing technology. And the good thing is that you can always bargain for a reduced price from a printing company, especially if you print in large volumes. If you ever feel like your small business isn’t taking a clear route, you can always make it look more certain by presenting ideas on a business card. All you need is to think what impression you want the card to make.
5. For convenience
A business card is not a brochure or pamphlet. The most popular size of a professional design is 3.5” by 2”. Who wouldn’t carry such a small document? It is easier to hand it over, to display it on your store counter, or even enclose it in a letter.
6. To pave way for a new opportunity
Your business card is the roadmap to splendid opportunities. It can land you in a new partnership or job or better yet boost your sales. When you give it out to people, you are adding more contacts to your business profile and you are looking forward to benefiting from that. Along the way, someone will turn into your long-term customer.
7. To show preparedness
Giving out your business contacts on a piece of paper or phone doesn’t give a good picture. What if there is no pen around or if the phone battery dies? However, a card is more professional and most people would want to do business with an organized individual. A card is a good sign that you are always ready as a business person; that you are prepared for anything in life.
A business card is a great staple for your business’ professionalism. This promotional tool has the power to give you new connections from industry events to new clients. Wouldn’t you feel more confident about yourself and your business too? Besides, it can take your social networking abilities to a higher level. A good point to note is that you need to perfect the design. Learn all about print and the most attractive materials for a business card. You cannot afford not to have it!
