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    Monthly Archives: September 2017

    Some Important Features of Currency

    Currency is regarded as the major aspect of any trading. The overall finance is backed by the currency. The value of one country’s currency in respect of any other country’s currency is an important aspect whenever any individual is preparing to go to any foreign country or for other purposes. So, it is essential to know about the exchange rate.

    Domestic Currency and Foreign Currency

    The paper currency is involved with a rich history in India. During the rule of British East India Company, it was issued firstly. RBI is associated with a different department that is known as issue department. The liabilities and assets of the issue department are retained separately from that of Banking Department.  Basically, the expression exchange rate is involved with two components. One is the domestic currency and another is a foreign currency. They may be quoted indirectly or directly. In case of the direct quotation, the foreign currency’s unit price is represented in a form of that domestic currency and for indirect quotation, the domestic currency’s unit price is demonstrated as foreign currency.

    The particular rate is associated with a particular base currency along with a counter currency. Whenever it is a question of the direct quotation, the base currency is a foreign currency and the counter currency is a domestic currency and it is completely reverse in the indirect quotation. In most of the exchange rates, the US Dollar is considered as a base currency and some other currencies are regarded as a counter currency. But, some exceptions are there in this particular rule like the Commonwealth and euro currencies like the New Zealand dollar, Australian dollar, and British pound.

    Currency Conversion

    There are lots of websites that are providing the opportunity of converting various currencies so that you can get some idea about the value of your country’s currency. The rates for exchanging the currencies for most of the currencies are basically represented to the four places following the decimal. It’s exception is Japanese yen currency quotation that is associated with the quote of two places succeeding the decimal. The rates of exchange may be fixed or floating and can be of spot rate, forward or current rate type.

    The Finance of any country is involved with various factor in which each and every factors are equally important. If you want to know about currencies and its involved attributes in detail, then you can follow any popular finance related website.

     

    Tips to be a Successful Forex Trader!

    The Term Forex is made from two words those are Foreign Exchange and this means trading of currencies from different countries against each other. Simply one needs help when he/she wants to buy anything from other countries she has to pay in that country’s currency. The forex market is open for 24 hours and five days in a week.

    For all of its charts and stats, trading is an art other than Science. Like an art, it also requires some talent and skills. The best it can be learned by regular practicing with discipline. Here are some great tips which can make you a successful forex trader:-

     

    • Choose a simple and compatible trading style

     

    Make sure you have a definite goal. It is imperative that you must keep an idea about the goal in your mind. So, check that your method has an ability to make you achieve your goal or not. Everybody has a different style of trading. It is not just a process of money making but you should have some interest in forex trading.

    • Choose a good broker

    It is very important to choose a good broker who will provide you a trading platform which will make you do the analysis you require. Spend a good time to choose a broker and research well. There are various online firms which provide some good broker so check out. Understand all the policies of broker and make sure that your trading platform is suitable. Make sure you get the best of both.

     

    • Keep a proper record

     

    This is the most helpful step. As one cannot remember the details of every transaction so keeping a printed record is very beneficial. Mark the important records including the reasons for your decision. This will make you improve your results by learning from previous mistakes.

     

    • Proper time management

     

    Be regular but don’t be often in checking the information related to market that means information like charts and stats. Identify the opportunity very fast. Check the daily chart and weekly chart as well as compare them. Wait for the perfect time and don’t be so fast. Take some proper time before indulging in any transaction.

     

    • Calculate the expectancy

     

    You should always analyze your previous transactions. Forex Analytics is very important as it checks your mistakes and evaluates the difference in performance and expectations. Check what the percent of your success is. It will surely help you a lot in making transaction.

    These tips are really helpful and you must try these.