Resources

Euro: the currency of the EU15.12.2015

Considering the importance, Euro (EUR) is inferior only to US dollar, and is the second most popular currency among traders. This currency plays a primary or secondary role in many countries. After euro was introduced, from the turnover went out such powerful European currencies as the German mark, French franc or Dutch guilder: 17 countries of the 27 EU members have created a Eurozone where Euro became the official currency. Now it is the official currency of 19 countries of 28 EU Member States. Code: EUR Sign: € Banknotes: 5, 10, 20, 50, 100, 200, 500 Coins: cents – 1, 2, 5, 10, 20, 50, and also €1 and €2 Some countries kept their independent currencies, such as Great Britain, Sweden or Denmark. Switzerland remained outside the EU, and keeps its monetary sovereignty, using the Swiss franc (CHF). To become a member of the European Union, the states had to fulfill stringent requirements on financial criteria, including inflation level and budget deficit. In ad...

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The impact of oil markets on Forex trading30.11.2015

The Forex market, as you may know, is the largest market in the world, in which take place transactions on purchase and sale of foreign currencies. The daily trading volume of this market can reach one and a half trillion dollars. The difference between Forex and other markets is that it has no physical location and central exchange. Its operation is through a network of banks, corporations and individual traders who are provided by Forex brokers. Any speculator, who has experience in the Forex market, understands that there should be a balance so that the financial markets could function optimally. We know that Forex market has a certain relationship with other markets. The international currency market is linked with commodity, stock and metals markets. The reasons for this dependence are in the fact that all the material, which is something that you can buy or sell, is connected with currency. In addition, all currencies are dependent on the material and commodity values. Forecas...

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Japanese Yen24.11.2015

Japanese Yen - JPY (Jap. 円) is the monetary unit of Japan, one of the major reserve currencies of the world. It is divided into 100 sen and its international code is JPY. The symbol of the yen is ¥. It was used from 1869-1871 years in the form of silver and gold coins. Now you can find coins of 1, 5, 10, 50, 100, and 500 yen and banknotes of 1000, 2000, 5000, and 10 000 yen. History of yen The currency, written with the hieroglyph «円», comes from China and in Chinese it is called "yuan". In the Chinese Qing Empire one of the currencies was silver, which were in circulation in the form of ingots. However, in the 18th century, the Chinese began to import Spanish and Mexican silver coins, which were called "silver" (Chin. 银 円) or "Western Yuan" (Chin. 洋 円). Subsequently, in Hong Kong, the British began to produce local silver coins, Hong Kong dollars, which in Chinese were called "Hong Kong Yuan". The currency began to be present in Japan, where the "Yuan" so...

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World Stock Exchanges21.11.2015

The stock market - market of stocks, bonds and securities – also securities market, is an integral part of the capital market. The stock market is about the market in which are traded securities which are either admitted for trading on any stock exchange, or those that are traded on the OTC market (Over The Counter). Stock market is an abstract concept, designed to determine the set of actions and mechanisms that provide opportunities for trading in stocks, bonds, derivatives and other financial securities. Do not confuse the concept of the financial market with the concept of stock exchange as an organization that provides a place for trading deals, and where buyers and sellers of securities come together. Here are the most popular stock exchanges: NYSE - The New York Stock Exchange is the largest in the world and a major stock exchange in the United States. It serves as a symbol of USA financial power and the whole financial industry. Here you can define the Dow Jones (the w...

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Commodity Prices and Volatility30.10.2015

The world commodity prices are characterized by cyclical moves and volatility, creating significant price risk for producers and consumers. There should be implemented special methods of price risk management in order to avoid negative consequences. The main distinguishing feature of the first characteristic - price cycles, is about the sharp transition from the rising phase to the phase of decline in prices. This feature is a major problem for price risk management. There is an asymmetry in the price cycle: for most commodities the decline phase lasts longer than phase of recovery. There is no stable form for the rising phase or the decay phase. For most commodities, the probability of rising phase closure as well as the finish of the decline phase is regardless of its length. The turn-around can happen at any time, regardless of the duration of the phase. The second major particularity of world commodity prices is volatility. Under the volatility you should understand the short-ter...

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