Forex Trading Tips

Kim L asked:


Suppose that the United Kingdom devalues the pound. If both exports and imports are written in terms of pounds, then the United Kingdom balance of trade ___________ during a currency contract period.
a. is unaffected
b. falls for a while before increasing
c. worsens
d. improves

Kris asked:


I’m considering investing into foreign currency. What are the steps I should take to start from scratch and begin investing?

I never invested before so personal experience and tips would be greatly appreciated.

Chubbs20 asked:


I have heard that if you trade coins in at a bank from or to canadian or american currency, you just get the same amount of currency back, no exchange rate, is this true?

vintagevhs1028 asked:


So I read a chart on what is called the Big Mac Index: it shows the converted price of a Big Mac is 58% less than what it should be in China because of the Chinese governments setting of currency exchange rates fixed to the dollar and not based on the market.

The article implies that this has badly hurt the U.S. economy because the exchange rate has led to greater trade deficits because of the exchange rate and it also says that this has resulted in lower wages in American.

What do you think of this?

John M asked:


if you borrow in a low interest rate currency, such as the yen and convert it into a currency with a high interest rate, such as british pounds, is that not a guaranteed way to make money, as long as you can be fairly sure that there will not be a massive change in the exchange rate.

i know that theres no such thing as risk free profit, so i was wondering what the catch is to doing this, as i cant see it.

Jimmy J asked:


We all base our lives around making these paper-wannabe bills, but is there a different way we could function? Would we set up personal trades like they did in small communities? No, because we have a large population. Could we set up a communist-type society where we trade with other countries for their resources with our resources and give out a sort of rationing that people would work for by harvesting our resources? What would that rationing be? For freedom, we’d have to be able to get whatever we wanted with our rations. But isn’t that currency?
Any ideas on a society without currency and how it would work with our massive populations?

Hipeopleiamhyper! asked:


22.Endurance, cunning, physcial strength, and courage were the ideal characteristics of - A. Confucian officials B. Buddhist priest C. Japanese samurai D. Hindu governors

16. The wars with Carhage (264-246 B.C.) gave the Roman Empire control of A. North Africa B. Asia Minor C. Northern Europre D. Middle East

18. Which shows the importance of the Mongols placed on improving trade contacts with other civilizations? A. the conquest of Constantinople B. establishment of caravan routes C. construction of large merchant fleets D. creation of a national currency

This is my homework but it is stuff to help prepare me for state testing and this is from previous years so this isnt in my book, I tried googling these but wasnt successful. Please help. If you dont no do not guess. Thanks!
I dont need 22 anymore. The first poster said C and when I re-read the question I wend DUH!! Thanks! I re-read the other two and still dont no. Thanks so much!
#18 I am not sure if it is B or C. I know that it is not A or D because they do not relate at all. I am not sure because both ways are means of transportation. I am leaning more towards C because merhancts trade. Agree or am I wrong? 22 and 16 I have answers for now. Please just help with 18!

Joe asked:


Attack those you need most and attempt to imbue them with unearned guilt! We’ve seen this game before, Mr. Commie-Thug Dictator; or shall we call you Mr. Wen?

Chinese Premier Wen Jiaboa took to the Davos stage yesterday to attack the US and the West; it borders on comical. But sadly, the elite gathered at Davos are foolish enough to lap it up like the simpering capitalist dogs Mr. Wen believes they represent, and for the most part he is probably right.

It is too fresh that Mr. Wen attacks the system that has helped his country pull millions from poverty and allowed for the transition of the Commies to represent a new happy face to the world even though their underlying intention of complete control of everything they touch, no matter how they must cheat and steal to achieve this goal, has never changed.
This proves Chinese disrespect to world and west again.It proves enough china is only about violating human right and creating financial crisis in world.hat has changed is the degree to which the Western business elites have been duped into thinking this is a regime they can really do business with. Which goes to the rotting core of the leadership of our multinational companies and political elites in the West; again Mr. Wen exploits this well. Think of the big hedge fund investments of the former politicos who along with the first-tier Western multinationals who hold vast Chinese asset investments. It is very much in their interest to pretend dealing with China is free trade. Interesting this same crowd represents the major funding for “think” tanks that get so much press and ink in order to spout the mantra of “free trade.” Lies flow from both sides - indeed.

If the dictator commie thug wasn’t so busy making sure any real dissent in his own country was stifled and the proper threats to the state dealt with, maybe he and his gang would have provided more domestic choices for his own people with all their wealth gained from dealing with the system he now supposedly finds so repugnant.

My musing on a bit of Wen self-dialogue; it might go something like this:

Heck, if we create a real domestic market it might increase citizens’ political power; we can’t have that … well, not yet.

We just don’t quite have enough internet monitoring equipment and software from Cisco, Yahoo, Microsoft, and Google (and other assorted tier-one western companies) to control 100%–but those dupes keep upgrading our ability to electronically enslave our people, so soon we can create a domestic market with Chinese “character.”

But since we are not there yet, let’s continue to play the export model game that has enriched us so well. You know the game: invite all the Western companies in to produce in China. We make it a quid pro quo - in order to gain access to our vast consumer market we make those greedy dupes produce here and transfer technology to us. We treat them pretty good and gain access to hundreds of billions worth of technology funded by Western shareholders. And of course we outright steal the gold teeth from all the second- and third-tier manufacturers we invite into the country. Those clowns don’t have well-funded think tanks to tell their story. No, instead those think tank dupes will continue to spout the mantra of “free trade” as we steal technology and jobs and hollow out Western manufacturing to boot. Gosh this is too easy. Wen’s call for global action should be seen for what it is: China has milked the export model for years (granted low cost final goods have benefited to a degree, but recycling excess reserves is what created the asset bubbles and led Mr. Consumer to over indebtedness - it was not the other way around) and it is now crashing before their eyes; they’ve stolen Western technology for years to boost export prowess; they have suppressed their currency for years to make its final goods even cheaper in order to keep the export machine humming; and we all know China’s enrichment was built on the backs of the blue collar workers in all industrialized nations. We have allowed for the hollowing out Western manufacturing so the power elites and the heads of our multinationals can enrich themselves through China.

filipino_learning_french asked:


Hi… I need expertise’s advice… I am a college student here in Manila, Philippines. And I start discovering about currency speculation, a year ago. I know that it can deliver you profits but also to have great losses.

I started speculating the US dollar by exchanging my philippine peso savings into it. However, since i fall in love with Canada and the U.K., i shifted to Canadian Dollar “loonie” and British Pound Sterling. Until this financial crisis battered and devaluate my pesos.

I don’t wanna lose my bills, but I’m in doubt because of the declining value of those currencies.

About a year a go… 1 pound is 94 pesos; now it is 71.5; and it reached as low as 64!!!

for the loonie, they are almost the same with value the USD, with little centavos difference (when converted to pesos) and it reached one time that Canadian dollar surges and worth a little with the USD.

Last year it is 1 LOONIE is 44.60 pesos

now it is 40.14 and it bottom upto 36.10 for the past few months.

I KNOW that loonie is a commodity currency, and it depends on the price of gold,silver, copper and of course OIL!

how about the british pounds? aside from the foreign trade of Britain of pounds, where? in the financial sector of the banks?

If i were you, what we’ll you do? Last year, i do not mind the little changes because of the very little fluctuation. Only now that i realized that even 0.0001 fluctuation in the currency rate affects much on the value. Especially when it deals with larger quantity of foreign currency..

for now, i have Canadian: $200
and 100 pounds.

do i need to stop this, shift to other currency? or what?

i am in a long term speculation, since this is my savings.

please enlighten me…
as of now, i have

$200; (Canadian dollar)

£100; (U.K. Pound)

Curio asked:


I guess Iraq supposedly was telling us they were going to start trading in Euros instead of USD!
Why did the Bush Administration not just introduce a new competing currency instead of going to War?
AZ…I am asking a question, how does that convert to a belief? This is a dialog not a statement of belief!