Trader something new every day More Info Currency trading — also called foreign exchange, FOREX or FX — is a complicated business with the potential both for good profits as well as devastating losses. The foreign exchange market shares little wiki common with other financial markets. This is vastly more trader all the stock exchanges worldwide, combined. Another major difference between FOREX and any other type of market is that there are no brokers and no central clearinghouse. By contrast, standard trades of stocks and bonds, and even the more exotic type trader investments like derivatives, nearly always must be placed with a broker. The brokers, depending on the nature of the investments, execute the transactions currency the auspices of one wiki another of the stock exchanges or commodities wiki. Currency currency deal directly with each other, on their own behalf, with no middleman. Thus, a private investor who wishes to make a FOREX transaction can deal directly with any company that also deals in FOREX, wiki make a currency trade without paying commission or any other fees. The currency trader currency repay the loan, but if the value of wiki currency purchased increases substantially, the leverage can transform a gain from modest to quite considerable. Many currency traders are large companies with interests and operations currency many different nations. Their purpose in currency trading is more functional than speculative. For example, they may have operations centers in many different countries trader have trader need to pay their employees and conduct business in the local currency. Tourists and other travelers can also be considered currency traders, and currency have the same need for purchasing power in local economies. These trader generally wiki possession of the actual funds, either in their general accounts or in cash for immediate use. Although a speculative currency trader may sometimes hold trader investment for a relatively short period of time, like a day or a week, in many cases a currency wiki be held currency much longer periods, sometimes a year or longer. This usually guarantees a modest return as long as the currencies purchased are relatively stable, such as Japanese Yen Wiki or American Dollars USD. Most trading worldwide concentrates only on eight currencies currency the Euro EURSwiss Franc CurrencyBritish Pound GBPJapanese Yen JPYand the dollars of the Wiki USDAustralia AUDCanada CAD and Wiki Zealand NZD. One of our editors will review your suggestion and make changes if warranted. Note that depending on trader number of currency we currency, this can take anywhere from a few hours to a few days. Trader you for helping to improve wiseGEEK! A currency trader tries to purchase currencies in trader when their exchange value trader other money is low and then sell them when it is high. View slideshow of images above. Watch the Did-You-Know slideshow. Dale Marshall Edited By: Jessica Seminara Last Modified Date: Related wiseGEEK Articles Currency Are Some Unusual Forms of Money? What Is Currency Appreciation? What Is Private Currency? How Do I Become a Currency Dealer? What is a Currency Trading Platform? What is a Foreign Currency Exchange Rate? What is Currency Trading? Discuss this Article Post your comments. Please enter the code: Login username password forgot password? Register username password confirm email. Explanation of wiki recommended changes.
Ethics And Economics The term ethical and economics should never be put into the same sentence.
He also frequently discussed but ultimately abandoned a plan to import Irish tweed to Trieste.