A Short Introduction To FOREX. Written by Adrian Pablo
FOREX is world’s largest and most liquid trading market. Many consider FOREX as best home business you can ever venture in. Even though regular people have had opportunity to take part in trading foreign currencies for profit (in same way banks and large corporations do) since 1998, it is just now becoming cool, hip, new "thing" to talk about at parties, business events, and other social gatherings. Even though it has been somewhat of a loosely guarded secret, every day more and more investors are turning to all-electronic world of FOREX trading for income and profit because of its numerous benefits & advantages over traditional trading vehicles, like stocks, bonds and commodities. But, still, whenever something seems new or is just becoming a part of social conversation, news articles, and water cooler gossip, misconceptions have to be overcome, mind has to be open and slate has to be clear for starting out fresh with CORRECT information. So, in this article, it is my attempt to give you some solid, but not over-detailed, information on just what heck "FX" (FOREX) means, what it is, and why it exists. As a successful trader said, Trading FOREX is like picking money up off floor. Not trading FOREX is like leaving it there for someone else to pick up." Others in industry have also said, Trading FOREX is like having an ATM machine on your own computer. Here's an explanation (one I feel you'll appreciate) of what FOREX is and how a bunch of traders, profit from it: The Foreign Exchange Market, also referred to "FOREX" or "FX" market, is spot (cash) market for currency. But, don't mistake FX as trading futures market, where you buy a contract to purchase a particular currency at a future price in time. What FX traders do is much less risky than trading currencies on futures market, much more profitable, and a lot easier, than trading stocks. So, you're probably wondering where it's at ... or ... how to access FX market? The answer is: FX Trading is not bound to any one trading floor and is not centralized on an exchange, as with stock and futures markets. The FX market is considered an Over-the-Counter (OTC) or 'Interbank' market, due to fact that entire market is run electronically, within a network of banks, continuously over a 24-hour period. Yes, if that's first time you've heard about an all-electronic market, I know this may sound somewhat intriguing to you. Here's what you are actually trading when you participate in Foreign Exchange (FOREX) market: Essentially, like large banks who use FX market to protect themselves from fluctuating exchange rate of different currencies, as an investor, what a FX trader is doing is simultaneously exchanging one countries currency for another. So, in actuality, they're electronically trading a currency-pair and price that is quoted to us is exchange rate between two currencies. In other words, simply quoted price is how many of one currency is worth 1 of other currency.
| | What Does My Credit Score Mean?Written by Don Blackhurst
Lenders are using credit scores more and more to make decisions about who they will lend to. The main developer of these scores is called Fair, Isaac Co (FICO), thus these scores are often called FICO scores. Scores range from 300-850 with a lower score indicating a higher chance of defaulting on a loan and a higher score representing a better chance that lender will get paid back. The national average score is approximately 680.Every lender sets up its own score cutoffs but generally speaking, you can expect to receive following treatments based on your score: 300-549: Extremely difficult to find any lender that will offer you credit. 550-619: You may be able to find credit, but very high interest rates and fees will likely apply. 620-679: You should be able to obtain credit, but you will probably be offered a higher interest rate. 680-749: You should have no problem getting credit and you will receive good interest rates and repayment terms. 750-850: Lenders are happy to offer you credit and provide you with their best rates and terms.
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