Category: INVEST

An Introduction To Currency Trading

Every company that is expanding its operations into other countries knows the importance of a reliable and efficient way of raising funds in foreign currencies. A company buying a plant or establishing a branch office in another country needs to have cash available in that country’s currency. And since the amount is in millions of dollars, banks usually facilitate the transaction.

There are, however, alternatives to banks for foreign currency exchange needs. Independent brokers do currency-trading Forex brokers can customize their services and offer more flexibility to their clients. They do not get commissions for their service.

If you are looking for a credible Forex broker, check out the Forex Dealer Members list. The list features members that have a wide network of clients in several countries and a vast experience in Forex trading. Although most forex brokers are legitimate operators, extra care must still be taken against dubious operators. They are the ones that usually offer exaggerated return on investments. As currency trading is based on wise projections, it is advisable to trust only experienced brokers who use mathematical methods and analyses.

Success in currency trading is anchored on the keen ability of the broker to guide you on when to buy or sell the currencies. Accurate projections are based on careful analyses of factors that affect the values of the world’s legal tenders or currencies. Like other commodities, currencies are also bought and sold according to the law of supply and demand. The Forex broker must be aware of the implications of certain factors on the economy and financial performance of a country to predict accurate results. For example, the trader must be able to read how a rise in unemployment can affect the currency exchange rate against the dollar. Other factors include the political situation of the country, or as it in the world today, the country’s foreign relations standing the United States. Investors also look at the policies of the governments on terrorism, disaster and calamity response, and the record of economic growth of the country.

An Explanation of Forex Trading

Forex trading means the simultaneous buying of one currency, and selling of another. The currency of one country is exchanged for that of another. The currencies are always traded in pairs such as US Dollar/Japanese Yen (USD/JPY), Euro/US Dollar (EUR/USD), Great Britain Pound/US Dollar (GBP/USD).

More than 80% of daily forex trading involves major currencies like Australian Dollar (AUD), British Pound, Canadian Dollar (CAD), Japanese Yen, Swiss Franc (CHF), and the US Dollar. Forex Trading is not centralized on an exchange. It is a 24-hour market, and trading moves from major banking centers like Wellington, Sydney, Japan, London and New York – in that order.

In Forex Trading, there is a bid price and an ask price, and the difference of the two is called the spread. The bid is the price at which buyers are willing to buy, and the ask is the price that sellers are willing to sell at any given time. The prices are always 5 digit numbers, irrespective of where the decimal point is placed. For example, EUR/USD has a bid price of 1.2641 and an ask price of 1.2644, thereby yielding a 3 pip spread. In another example, the USD/JPY bid price is 107.09 and ask price is 107.12.

A transaction takes place when one currency is on the up, and another is going down. Choosing the right currency will ensure a profit.

Margin is collateral for a position. If the market moves downward, the forex trader will ask the investor for additional funds by way of a “margin call”. In case of insufficient funds, the trader will close the open positions immediately.

A “long” position is one in which the investor buys a currency at one price, with the expectation of selling it later at a higher price. A short position is one in which the investor sells a currency with the expectation of buying it back at a lower price, expecting the currency to fall. Every forex trading position taken means that the investor has gone long in one currency, and short in the other.

A Guide To Options Trading

The exchange of stocks between two willing buyers and sellers is called options trading. Stock markets are places where the trading of stocks can be done conveniently by shareholders or their brokers. You can trade the shares either in a brick-and-mortar stock exchange, or visit a more quiet and sophisticated virtual one. While the former resembles a chaotic marketplace, the latter is a relatively calmer place, consisting of a network of computers which manages the ever-fluctuating market electronically.

There are two types of markets where stocks are traded. First is the primary market, where stocks are created, and the second is the secondary market, comprising investors who trade in previously issued shares without the interference of the companies who run them. In any case, the companies do not play any part where trading of the shares are concerned.

Founded in 1792, the New York Stock Exchange is the most renowned exchange in the world. It boasts of prestigious names like Citigroup, Coca-Cola, Gillette and similar large players in America. It is one of the first places where trade was accomplished in person. In this listed exchange, orders flow in via brokerage firms and go up to floor brokers who then trade the stocks. After the deal is made, the details of the agreement is returned to the firm, who is responsible to inform the individual about the day’s proceedings.

NASDAQ is another popular exchange, where the trading is done using computers. Companies like Microsoft, Cisco and Intel patronize this place, making it a tough competitor of the NYSE. The American Stock Exchange is the third largest trading house of share in America. Earlier it used to play second only to the New York Stock Exchange, but the position is now occupied by NASDAQ, pushing AMEX to the third place. The trading done here is in small–cap stocks and derivatives.

Stock exchanges can now be found in almost every corner of the globe, showing the popularity and success of stocks and options trading.

A Guide To Foreign Currency Trading

While foreign currency trading offers its rewards, especially when you are able to trade in major currencies like the US dollars and Euro, caution against advertisements and brokers that offer instant riches must be observed.

There is move to regulate foreign currency traders. Unfortunately, not all in the industry are registered. Not entirely illegal, many unregistered brokers populate the financial markets. Extra precaution is suggested for individuals and companies when they deal with forex brokers.

The United States has passed a federal law, the Commodity Futures Modernization Act of 2000 that gives authority to the commission to investigate suspicions of frauds in the transactions.

Frauds in Forex trading have telltale signs and you must be aware of these. Be wary of schemes that offer quick riches. An experienced Forex brokers will tell you currency trading is not a risk free business and only those with real analytical methods can succeed in the field. And, even when projections seem sound, there is no way of telling exactly how strong a currency will hold out against many factors. So watch out for those who promise large profits no matter the economic condition is.

Most brokers ask for margin investments. If you are not fully aware of how this works, do not venture into it. You may be losing s more than you earn in the long run. Beware also of the “interbank market” service that brokers may offer. In reality, only large banks, corporations and investment institutions have access to this loose network of currency traders.

To be sure about the credibility of the brokers you are getting, study their profiles and company background seriously and extensively. Stick with a shortlist of firms that are registered with the regulatory commission on commodity futures.

A Guide To Bail Bonds

Insurance companies provide bail bonds through a bail bondsman, who acts as an agent for a company to secure the release of an accused defendant pending trail. Generally, the rate charged by the bondsman is ten percent of the amount of bond. In return, defendants are required to put up collateral, like a second deed of trust or the mortgage of one’s house. After a final decision has been made on the case, the bail bond is “exonerated” and it is returned to the insurance company. In cases wherein the person under trial absconds or does not appear in court, the bonds get forfeited unless the defendant returns. A bail bond also acts like a financial guarantee to the court that the defendant would appear before the law each and every time the court orders.

A bail bond is valid for a period of one year, and if the case goes beyond this period, an additional premium has to be produced in order to keep the bail bond working. Additionally, bail bonds can be posted at most courts and jails. Most jails around the world accept bail bonds 24 hours a day, 7 days a week, 365 of the year. There are different types of release options that one can choose from, including cash option, security bond, property bond, own recognizance and citation release. It is a judge or a magistrate who sets the bail amount, depending on the law of a particular state.

According to industry experts, there are a few things that one needs to take care of before hiring the bail bond agent. One should only hire a licensed bail agent, and prior to any bail transaction one should ask for the bail agent’s license and identification. The person hiring the agent should also make sure that the bail agent charges only legal rates. It should also be made sure that copies of all signed contracts and agreements are also asked for.

A Guide To Asset Management Software

Asset management is the management of a company’s assets by a team dedicated entirely for this purpose. The company’s assets, apart from its capital portfolios, also involve its infrastructure, plant, property, and human resources.

Now, consider a scenario in which these assets have to be managed manually. These will involve some disadvantages. First of all, the chances of human error increase, not to mention the consumption of the time of the professionals involved. This in turn means waste of resources and also the resulting inefficiencies that slow down business returns.

The answer to this problem lies in asset management software. The software is designed to keep a track of the company’s assets, provide for analysis, and thereby prove an effective tool in managing a company’s resources. In other words, asset management software helps to keep track, monitor and analyze business processes and resources. It automates the work processes that were previously manually done. This, in turn, helps to speed up the work and minimize errors.

Another advantage is that people who are involved in manual file management can be diverted to more productive work. Also, skilled professionals will save time in searching for required data. This results in the optimum utilization of resources, thereby adding to the productivity of the company.

As said, asset management involves the management of all assets in a company by a professional team. Now, to manage these assets, the team first of all needs to know what the assets of a company are. This is where the role of the asset management software comes in.

The software can keep a track of an asset. This includes its initial purchase value, running costs, service costs, depreciated value, and upgrades. The team can then use this information to assess the present value of the asset. The information can also help the company charge individual departments for the usage of that asset. The current value and condition of an asset can also help the procurement department of a company in that the people can decide whether the asset is in a usable condition, needs upgrades, or needs to be replaced altogether.

Asset management software is an effective tool for a company to manage its assets, analyze data and arrive at business decisions. The asset data is placed in a central easy to access repositories. The individual departments can access it through the company’s intranet. The accurate data, accessed at a click of the mouse, can lead to more effective decisions and also a better management of a company’s assets.

A Guide To Affordable Term Life Insurance

Term life insurance provides you with a more affordable opportunity to ensure you mortgage payments in the unfortunate event of your death. Even though they are offered for a limited time-period, but you can always match them up with your mortgage payment cycles of 10 or 20-year contracts. For the budget conscious, this definitely seems to be a smarter alternative for a low cost death benefit.

Insurance companies offer cheap term life insurance policies with different contract time periods, conversion credit during the first five years and transferable waiver of premium.

Affordable alternatives are available through comparison-shopping at various online insurance intermediaries’ websites. Other than being a cheaper option, term life insurance is better in other aspects when compared to a mortgage life insurance. There are much personalization options available for a term life insurance policy. The proceeds from a term life insurance go directly to the beneficiaries instead of the lender, so the money can be used by your dependents as desired which could be even to pay off other debts. Term life insurance also pays a death benefit. According to NAIC (National Association of Insurance Commissioners), the companies pay almost 90 cents to the dollar in benefits for term life insurance policies. Typically the whole life insurance will be 2 to 3 times costlier than a term life insurance.

Term life insurance offers the cheapest alternative to provide insurance coverage for your dependents. It has allowed individuals under budget-crunch situations to buy policies with larger payout amounts due to the limited term of the coverage. So, if you can renew your term life insurance regularly during your lifetime, you have actually found an affordable alternative to expensive whole life insurance.

A Comprehensive Forex Broker Register

A comprehensive forex broker list includes investment banks with dealing rooms, commercial banks with treasury operations, and online brokerages that serve a larger market. The investment banks with forex trading capabilities include Morgan Stanley, Merrill Lynch, Goldman Sachs, Salomon Smith Barney, Lehman Brothers, Credit Suisse First Boston, Deutsche Bank, JP Morgan, Prudential Securities and Bear Sterns.

Some of the brokerage services are not directly accessible for all customers. For example, inter-bank market dealers and treasury operations in commercial banks handle large customer orders themselves.

The top commercial banks in the Forex Broker List, having inter-bank and treasury operations, are JP Morgan Chase Bank, Bank of America, CitiBank, Wachovia Bank, Wells Fargo Bank, Fleet Bank, US Bank, HSBC Bank, Sun Trust Bank, Bank of New York, State Street, Chase Manhattan Bank, Key Bank, Branch Bank, PNC Bank, Lasalle Bank, South Trust Bank, MBNA America Bank, Fifth Third Bank.

The online forex broker list of smaller forex accounts sees new entrants almost on a daily basis.

The online forex broker list includes Forex Capital Markets, MG Financial Group, CMS Forex, Global Forex Trading, GCI Forex Direct, Forex.com, GAIN Capital, Real time Forex SA (Geneva), Global Forex, Commerce Bank and Trust, FX Solutions, Forex MHV, swissDirekt (Swiss), Goetz Financial Forex, NY Broker Borsentermin AG, Act Forex, Online Trader, Shield FX Online Currency Trading, Forex Trade Signals, CMC Group PLC, Foreign Currency Direct Limited (UK), FX Advantage, FXCM, Forex Millenium, ACM REFCO, REFCO Spot, Easy Forex, Online Forex Trading Inc., Lincoln Corporation, Global Trade Waves, Ltd., and CIBC FX Web Dealing.

1031 Tax Exchange

Tax Exchange refers mainly to Section 1031 of the Internal Revenue Service Code. It is also known as “1031 Tax Exchange.” This section outlines the tax status of “like-kind” real estate exchanges. It helps one in structuring the sale or disposition of real estate (including personal property) and the acquisition of similar real estate as a tax-deferred exchange transaction, in order to defer certain federal taxes and in many cases even capital gain and depreciation recapture taxes.

As far as the meaning of “like kind” is concerned, in the context of a 1031 exchange it means that when it comes to real estate, all forms are “like kind” to all other forms. In other words, an office building can be exchanged for a trailer park.

There are certain properties that are known as 1031 properties. To reap benefits according to Section 1031 in IRS, one can purchase any of these properties. A large number of real estate consultants and law firms also help the buyers in sorting out certain complex issues that are associated with Section 1031. The 1031 properties can also be viewed online. The exchanges under the Tax Exchange law can take place in virtual dealing rooms that are also operating on the web.

Several types of 1031 exchange methods are in use. These include reverse exchanges, simultaneous exchanges, and delayed exchanges. To complete a transaction under 1031 exchange, one needs a qualified intermediary (QI). So once an investor has made an exchange decision, it is advisable to contact a QI as soon as possible. The most difficult part of this transaction is to find a replacement property. However, large numbers of property owners are taking advantage of this tax benefit by reinvesting their sale proceeds from a property in a like-kind property.

1031 Tax Exchange Opportunities

The best thing about Section 1031 is that its benefits are available to large, medium, and small investors. The general misconception is that this section only provides opportunities to defer taxes on capital gains for owners of large commercial properties. But the fact is that if one has a qualified intermediary, then all kinds of investors can benefit from this section.

There is no dearth of real estate firms that provide an exhaustive list of 1031 properties. These firms generally also provide the services of a qualified intermediary. There are “simple gains” calculators available on the Internet that can help one to calculate the capital gains tax one would be able to save through the tax exchange transaction of a real estate property. Over the last one and one-half decades, there has been a phenomenal growth in transactions that qualify under the tax exchange laws. The IRS has also tried to make things easier by simplifying this law and plugging loopholes. Those who have lost out on the opportunity of utilizing this provision to save taxes can attend any of the seminars, which are regularly held in various cities to explain how to avail the opportunities under this section.

Prior to 1990, this section was quite complex and difficult to understand. But now, an individual can easily make out how this section operates. It is still advisable, however, that before you go for exchange you should consult your attorney or a qualified intermediary. There are certain issues pertaining to the partnerships, tenants-in-common, and transaction between spouses that need to be taken care of before you make a final decision.

However, large numbers of properties are now available in the markets that qualify under this section, and there are several firms that are exclusively dealing with the sale and purchase of such properties.