Currency Trading In Closer Detail

currency trading

Though forex currency trading is the biggest financial marketplace in the world, it is comparatively unknown terrain to retail traders. Until the internet became popular few years ago, FX was chiefly the area of big financial organizations, MNC’s and hedge funds. But with changing times individual investors are more knowledgeable in this relatively grey area.

Read on to find the most asked questions on foreign exchange and currency trading.

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Ringgit To Remain Weak As Forex Reserves Drop

ringgit forex reserves drop

The Malaysian currency is expected to remain weak due to potential outflow of foreign capital due to the volatility caused by the Eurozone crisis, said RHB Research Institute today.

The research house said that the ringgit depreciated by 4.6 per cent against the US dollar in May as compared with a gain of 1.1 per cent in April in line with a drop in foreign exchange reserves as investors turned risk averse and reduced their exposure to Asian assets.

Malaysia’s foreign exchange reserves declined by US$0.1 billion or RM0.3 billion in the second half of May to US$136 billion (RM417 billion), after growing by US$0.2 billion or RM0.6 billion in the first half of May.

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Japan And China To Launch Direct Currency Trading

Direct Currency Trading

Japan and China said on Tuesday they will start direct currency trading this week, marking the first time Beijing has let a major unit other than the dollar swap with the yuan.

The move, which will scrap the US currency as an intermediary unit, comes as China introduces measures as part of a long-term goal to internationalize its currency and rival the dollar as the world’s benchmark.

The yuan-yen trade — part of a wider deal reached last year between Beijing and Tokyo to forge closer ties — will also be allowed to move in a wider range than the narrow band at which the dollar and yuan change hands, Dow Jones Newswires and the Nikkei business daily reported.

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What Is Forex Spread Betting?

forex spread betting

The concept of spread betting is not new one, the traditional meaning of this taken as a wager upon the happening or outcome of certain event or happening. Spread can be seen as the number of possible out comes that might happen.

In recent years the spread betting is quite popular, there are large sums amounting to millions being stipulated in such agreements. Today, it is huge business, more then three trillion dollars change hands here each day.

The forex spread betting is normally done with a platform; here you invest in certain value of currency with for example the GBP/Euro. The market is huge so your investment gets picked up by the other direction in matter of seconds, you can invest for long time or just be out in matter of seconds.

The platforms make their money by investing with you; if the loss is there they transfer it whole to the investor. You can also start to learn more and practice by investing in the demo Spread Betting account too.

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