homework help! why doesn't a forward market exist for all currencies?
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Some people in different places are under control by a dictator, which does not allow that, so if they have a job that is what they are assigned to and can't change.
300695
So i guess you know what forex trading is.\n\nFutures and options and forwrds, the easiest, are a kind of derivatives. Derivatives are a financial instrument whose value derives form the value of other, more basic underlying assets.\n\nNow, forwards are contracts in which the price of a commodity or currency is set for the future. It has to do with expectations of the market, and how the market thinks, based on information today, the price of those commodities or currencies will be in a certain date.\nLets say the exchange rate of mexican pesos for us dollars today is $11.09. That´s the spot exchange rate. Now, lets say you and i agree that in june 2006, im your gonna sell me american dollars at an exchange rate of $11.1828. If my expectation is the peso will be higher, im gonna make a deal with you. So, the future of the pedo, for june 2006 will be $11.1828. Imagine our deal, but not made between us, but between thousands of dealers, in the Chicago MArket.\nCompanies use futures a lot as a way to protect themselves. I believe in english its called hedging. If an american firm sells water tanks to a firm in France, but the payment isnt due untill 45 days later, both companies would like to agree to make the exchange of euros for us dollars at a future exchange rate. That way they now exactly how much they owe or get. The same with commodity prices. A future of the price of oil is nothing more than a contract agreeing on the future price of the transaction. Funny thing is, you and i can agree on an oils future contract, where im selling and your buying, but the barrel of oil is never transacted. What we do is, lets say the future price of oil for august is $73 usd. im selling, you are buying, and we agree on that price. Come august 31st, the real price of oil is $78 usd. since you are buying, you win $5 bucks per barrel right? And i lose % per barrel... so instead of giving you a barrel of oil you cannot even store, i just give you $5 per barrel. _If the real price had been $65, i would have won $8 per barrel, and you lose $8 per barrel.\n\nThe same with futures. MAjor difference with forwards is that an exchange of assets is required. Contracts are pretty much standarized. The delivery, kind and quality of product, etc is all defined. Largest exchanges are made in the Chicago Board Trade. Futures include a los of prodcts... live cattle, sugar, coffee, gold, cooper, aluminium, etc.\n\nOptions are a little bit harder. There are 2 basic type of options: call options, giving the holder the right, option, to buy an asset at a certain date at a certain price. Put options, giving the holder the right, option, to sell an asset at a certain date at a certain price. For example, lets say i buy a call option to buy in 3 months stock of yahoo. The actual price is, just an example, $10 bucks, and my call option gives me the option to buy at $12. The price to buy that option for 1 share of yahoo is worth $1. If 3 months pass, and the price of the stock is $11, i certainly wont take my option to buy the stock and lose $1, the initial investment on the option. But if the real price is $15, im going to take my option, buy the stock at $12 and sell it at $15, earning $2. \nJust be careful cause there are american options and european options... european options can only be excersied at the end of the contract, ehile american options can be excercised whenever in the life of the option.
1001109
There are so many, try www.fxstreet.com and www.xpresstrade.com
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There would be two problems - getting readers that count the foreign currency, and getting up-to-date conversion rates sent to it, so that you con't get cheated by currency rates changing.\n\nYou'd have to set it up so that it either gets an update once per day, say, or like an ATM, it would 'phone home' for every transaction to verify rates.  A daily update would be more efficient.\n\nAnother problem would be displaying the prices.  You'd need a touch-screen with a menu system, first showing a menu of currencies accepted, and then the items for sale (so that you can display the menu in the currency of choice)  If the item menu displays the prices in several different currencies at once, it would be too cumbersome.\n\nHer's another option - say you are returning from Europe with a few Euros here, a few pounds there, some Rials, and a few Rands.  It would be cool to select an item and just start feeding in all those different currencies until the item is paid for, and it spits out change in Dollars or something.  This would make displaying prices difficult, since you are using several currencies to pay for an item, but this would be a valuable thing to have in airports around the world.\n\nInteresting idea.
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Unfortunately, the three currencies that you mention aren't exactly high demand. Currency exchanges pay less for them because they are harder to sell. It also depends on where you are - The airport currency exchange in Miami or Orlando would give you a pretty good rate, but the currency exchange at Los Angeles airport probably won't because it's a lot harder for them to sell.\nWhere are you? I would base a specific reply on that information.
592497
I'd be wary of any "seminars" on FOREX (Currency Trading).  I am currently learning about this.  I started about 2 months ago and expect that in 6 months to a year I'll be ready to start investing (after some very intensive reading and an on-line course that I've taken).\n\nWhat I've learned so far includes;\n9 out of 10 that try to trade currency, fail!\nMost trades (by those that survive) lose money. \n\nThere are many 'scams" out there right now in OPTIONS, METALS etc.  I wouldn't be surprised if they're out there in FOREX.  THIS IS AN "UNREGULATED" market (although it is the biggest in the world). If they tell you that you can make ridiculous amounts of money... Ask yourself.... why isn't everyone in the world doing it?\n\nSend me an email. I'm interested in their "rap". If I see any obvious negatives... I'll let you know!\n\nBTW: typical charges for trading are;\nA.   No commissions or fees (at all)!!!!\nB.   Spreads on major currency's are 2 or 3 pips on some like the EUR/USD. 4 or 5 on some of the others.
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http://www.gocurrency.com/currency-trading.htm
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If you like this kind of market try\nFOREX:\n\nhttp://www.rapid-forex-method.com
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MSN.COM has information.  I did a graph of the Euro as an example.  However, most people who play with Forex lose money.  Watch out for the scammers. (See Link 3)
448054
Because the size and power of every economy is different, there were still exchange rates when the Euro took over, but it was fixed at a certain point for every country and then diluted into the new currency. It really wouldn't be fair to dilute the buying power of the U.S. dollar or Japanese Yen by pegging its value to that of the Mexican Peso.
468903
where you echange different types of currency
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www.fxcm.com is very famous as it is a market maker, so has to fullfill all the orders placed.\n\nI am running a blow which you can visit to get more info -\n\nhttp://the-forex-trading.blogspot.com
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The market forces. In free market societies, interest rates, purchase parity of a basket of goods, and a premium for innovation and security would establish currencies values. Thus, the market establishes the rates.\nIn other societies, the government enters the market or simply fixes or freezes any transaction. Ex. China.
151471
Doesn't exist (in U.S., at least).  Ask your neighborhood bank and you'll be quoted a competitive (i.e. close to highest you'll get) rate.  As for money markets, that's considered "cash" too, like a bank, and won't yield you more than a couple of points above your bank.\n\nGo to www.motleyfool.com to get great, always revised information and a good self-education in all things money.
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Love to assist.... but your question is not specific enough.\n(US Stock Market, Great Britain Stock Market, Japan Stock Market, FOREX Market, Commodities Market (and which commodity?), etc.....
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This is a question which requires lengthy answer, here it is not possible.\n\nStock market is the place where companies float their shares for public purchase.\n\nIndividuals from the public visualize the market condition with that of business of a company. If the general guess is for a better prospects, public price of the shairs will go up and if prospects are not good, the public price of shairs will go down.\n\nThe price of currency of a country is fixed with respect to international economic standing of that country. With changes in economic role on international level the currency value changes accordingly.\n\nTo fix price of a currency by a country involves lot of considerations. For example if one country increases its currency value with respect to other countries, cost price of exports will increase and so it will face more competition and so is the reverse. There are many such factors. This is why it is not free will to adjust value of a currency.\n\nGold is a raw material with minimum chances to depreciate. Oil is the biggest raw material now a days. These and few other raw materials directly control the international business and so they affect the value of currency.
264593
Can you please clarify your question so we can answer you better?\n\nForex is used by a lot of people - from business to tourists. There is currently a revolution happening with home traders trading forex for a profit...