Important Term Forex Trading 5

Important Term Forex Trading 5 : This article is a continuation of ongoing and Forex Trading 1,2,3,4 This is the last part of the Essential In Forex Trading Terms as follows: 


Euro Market and Euro Banking
Euro market (moving of money) happens when the currency in circulation and deposited outside the jurisdiction of the issuing country. That is, if the local currency traded outside of the U.S., the euro $ dollar. Furthermore Pound Euro cash in circulation outside the UK, which are outside Euro-yen Japan. Conceptually, for example, the euro money market and foreign exchange market.

Money market, either in the form of savings (deposits) and loans were in a country where the bank-based hardware. In the foreign exchange market, or Forex market, currencies into other currencies in which the Bank did. While in the euro market, savings (deposits) and loans in currencies other than the currency of the country where the bank's headquarters.

Euro Bank is a financial institution that accepts deposits and loans, while in another currency than the local currency in which the financial institution to open an office. EUR money market instruments, basically not much different from selling in the domestic derivatives market. To demonstrate that the euro market is fully segmented, habit, the word "euro" in the name of the tool, euro euro euro deposit market certificates of deposit, etc. are Euro loan.

Base Price and Counter
At the rate at which the USD and then there is an increase exchange rate, gives the feeling that the dollar appreciated (pink) and these other currencies depreciate (weaken). For example, if the exchange rate of USD / JPY from 120.01 to 123.01, USD says stronger (weaker JPY), because more time is needed to change the USD JPY. However, due to the exchange rate notation does not apply to British Pound (GBP) Australian Dollar (AUD) New Zealand Dollar (NZD) and the euro (EUR). Four currencies valued, has a base currency and USD is the second currency (or currencies). For example, if the GBP / USD is 1.4366, which is equivalent to $ 1.4336 USD. In four exchange rate, an increase in the rate of weight loss is USD (because it takes more dollars to the base currency or GBP, EUR, AUD or NZD) as falling currency weaken the mainstream media.

Depreciation and Amortization
Appreciation (or depreciation) is the change in the exchange rate of one currency against another currency through market mechanisms. If the exchange rate is reduced (or increased), the currency will be said. For example, Wine taster Wanda (wine) bottle of wine chose America Rothscild buy Chateau Lafitte 1961 (best year) to fill wine storage. If the price of wine in France is € 1000, the exchange rate is $ 1.19 per euro, the price of the wine, which is paid by Wanda is $ 1.19 ($ 1.19 x 1000 € / EUR).

Wanda moved people who bought two months for approximately $ million, € 40 per person. If the domestic price of € 1,000 remains Rothschild Lafitte, then the price will rise to $ 1.190 $ 1.400, but the price of the currency makes imported goods cheaper in this country. At a price of $ 1.19 per euro, will Dell computer for $ 2,000 $ 1,681 € programmer Pierre, if the exchange rate rises to $ 1.40 per euro, the computer only cost € 1,429.

Depreciation of the euro reduces the price of French goods in America, but raised the price of U.S. goods France. When the euro was $ 1.00, a bottle of wine to Lafite Wanda Rothscild only $ 1000 instead of $ 1.190 and a Dell computer that Pierre will be paid € 1681 € instead of 2000. Therefore it can be concluded if a country's currency to appreciate (relative value rose against other currencies), goods produced by foreign countries and foreign goods more expensive in the country is cheaper (assuming that prices in the internal market in both countries). Conversely, if the coin allows local producers to sell their products overseas and foreign products less competitive in the domestic market.

Futures market
Futures market is a special form of advanced market in the purchase and sale of foreign exchange transactions are made at authorized stores. Transactions with equity futures are standard transactions by a regulation or rules.

May be useful for all the essential items for Forex Trading 1, Forex Trading 2, Forex Trading 3, Forex Trading 4 and FX 5 of this paper. Happy Trading

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