The man as part of nature and society have needs that are essential to be covered. The fall of the feudal and mercantilism systems allowed that from their mistakes, what is now known as capitalism was born. This is the system that governs us today and with it, a system of exchange of goods was established since currency have been established as a tool for access to consumer goods.
The refinement of the capitalist system produced that currency not only works as the mean to access to goods for the satisfaction of needs, but now it’s used to invest in foreign currencies. Investing in currencies is a very profitable activity, but develop it implicates running some risks.
The money market is very volatile, and invest in currencies is considered a high-risk sport is not suitable for people with a tendency to have heart problems, because fluctuations in the exchange markets can be fatal.
As everyone knows the world will dance the rhythm imposed by the United States, and a week ago the northern country lowered the money costs and anchored the rate of interest at 4.25%. Thus investing in dollar currencies will not leave as much profit as in previous years. This decision responds to a deceleration of economic activity in the United States marked by indicators of it. Meanwhile, across the Atlantic, the economy enjoys a very good health leaving a very conducive scenario to investing in currencies, the euro at the moment pays 4% interest to those who choose to make an investment in that currency, but the peculiarity is that by now there wasn’t even one day in which it has slowed his increase in value.
Which are the possibilities of investment that the stock market gives us counter parties with forex?. In the financial world there is a word that is repeated constantly “Financial Assets,” What are we meaning by this expression?. A financial asset is the name given to the holder of such right, while his counterpart is a financial liability, held by the debtor. Which are the financial assets par excellence?. Undoubtedly bonds and shares are the most traded and popular. Which are the risks of this type of investment?. The bonds, for example, are a very useful financial asset and the market value of a bond depends on two variables: First of the expectations of payment of the bond, in case of an increase of risk, the price of the bond falls. The risk is different according to whoever issued the bond. As for the government, the risk of payment increases as much as the government maintains budgetary problems. So in view of the announcement of an increase in the financial deficit bonds tend to depress prices. The actions are another of the assets that are not traded in Fx (forex), but they do in the stock market. The return on the shares is simply the winnings of the company. If the firm have looses, the shares have a zero return. In Fx (forex) these situations do not occur. Here earn money is a constant as the possibilities of increasing your profits through various pairs leaves no room to loose. Obviously there are always risks and it must be said but Fx (forex) market is more stable than the stock market because it doesn’t depend on political decisions. For example, if we have shares of Repsol, a barrel of oil increases daily and the government decides to implement tax deductions for exports to control prices in the domestic market, this will make our actions fall performance despite the increase is in the oil. Fx (forex) although is on standby to the political and economic measures have a much more marked independence and therefore does not suffer the consequences.
The activities that man carried over along his history have been characterized by developing of an own language that differentiate them from other tasks. Since Bretton Woods treaty was finished and the free flotation of the dollar was set out, regulated only by supply and demand, investment in foreign currency has become a very popular activity and have had reached sectors which years ago look on the purchase and sale of money unfavourably. The inversion in currencies has it’s own language and that is necessary to understand in order to maintain a smooth communication with the operators. Here we will develop some concepts for you to get familiarized with the market vocabulary. Agent: someone who acts as principal or counterpart of a currencies investment or transaction, place the buy and sell order. Mark to Market (End of Day): The operators represent their positions by two ways: accrual or adjustment to the market. A system that is based on the accrued represents only the cash flow, when they occur, therefore, they only show a profit or a loss. The Mark to Market method assesses the operator registry at the end of each working day using the closing market rates or re valuating rates . All gains or losses that occur in currencies investing are recorded. Fundamental analysis: In currencies investment this analysis is based on the observation of the economic and political data in order to determine future movements in the financial market. Increasing exchange rate: When you invest in foreign exchange it’s said that a currency is increasing it’s exchange rate when the price increases in response to market demand, an increase in an asset value.
What is currency? In recent years this term has been popularized and is no longer part of the language used by financial experts. To make it clear what currency is, we can define it as the monetary unit of a country. After the economic crisis of 1929 all capitalists currencies became currency paper, this caused that all currencies were volatile and were tied to the crises, to problems such as inflation that takes away purchasing power to the currency. The currencies of the capitalist countries are divided into convertible to other currencies, limited convertibility and closed, or currencies that can be used within the borders of a country. The currency convertibility is something relatively new seeing that until 1958, convertible currencies were only the American dollar, the Swiss franc and the Portuguese escudo. Since then most of the currencies became convertible. In the capitalist world, the currency used for most of the international transactions, is the dollar, nevertheless, the fall in world domination by the power of the north has caused that the dollar currency suffers a fall especially in the last years. The diversification of currency for the payment of international transactions is a clear example of the economy globalization and the collapse of the United States, since in recent years the German mark, the French franc and the Italian lyre have been popularized for international payments. The equation is simple, as the strength of the United States in the economy in the capitalist world comes down, the positions of the fundamental capitalist currency will significantly weaken ; North American dollar and other currencies gain ground.
Just as the most famous Internet search engines, gives you the possibility to choose about what do you
wish to receive information at your e-mail,forex alerts have a similar objective.
Both Google and other search engines, ask to their users to enter in the alerts system the person or item
which they want to receive updated information that goes emerging.
Forex alerts is useful to : to know which is the best time to make a negotiation.
Many of the people involved in the exchange market, they do this from work therefore can not be 24 hours
pending of the changes that the currencies may suffer, or do not have a person or broker to conduct the
negotiations.
For that reason the market has created forex alerts, thus a group of people specialized in the exchange
market send an alert to users on their cell phones, where they inform them which currencies are better
positioned to negotiate on that time, or when there is any extraordinary situation that they can not let it
pass.
To use the forex alerts system, you only need a cell phone where they will send you alerts.
Besides this, it is always convenient to have a computer or that the same phone has Internet connection so that you can confirm the validity of the warning, if it is worth investing or you prefer to miss that opportunity.
The exchange market is prepared for you to generate profit and has all the necessary tools to offer you, such as forex alerts, so that you can carry out successful businesses.