Finance of International Trade
Foreign Exchange in International Trade
Article:
Ups and downs of forex trading (Straits Times, 5 Jun 2011 )
Ups and downs of forex trading
Lorna Tan, Senior Correspondent
1704 words
5 June 2011
Straits Times
STIMES
English
(c) 2011 Singapore Press Holdings Limited
There is plenty of potential in the market but be aware of the pitfalls
The pursuit of financial freedom has led many retail investors to consider foreign exchange trading.
Online forex trading has seen a tremendous growth in popularity and its appeal is easy to understand.
The forex market is the largest and most liquid of financial markets. It is available 24 hours a day, seven days a week. It is recession-proof and requires a small cash outlay and easy execution.
Ms Marion Lang, head of sales and marketing at forex trading services Oanda Asia Pacific, highlighted that global activity in the sector often exceeds US$4 trillion (S$5 trillion) a day. Over US$1.5 trillion of the total involves spot trading, which refers to the buying of one currency with a different currency for immediate delivery.
Although there are numerous currency pairs in the forex market, the more liquid and active pairs are EUR/USD, USD/JPY and GBP/USD.
Currently, Singapore is the fourth-largest forex market in the world. It is easy to spot advertisements here marketing forex seminars and workshops.
The danger arises when retail investors are taken in by the hyped-up promotions that characterise forex trading as a get-rich-quick activity, said financial experts and the Consumers Association of Singapore (Case).
Mr Seah Seng Choon, Case 's executive director, said it has received inquiries and complaints about forex programmes.
There were 13 last year and as of the end of April, it has received six cases so far this year. They range from complaints about pressure selling to alleged misrepresentation on the cost and benefits of the programmes as well as the existence of a particular overseas forex training
Article:
Ups and downs of forex trading (Straits Times, 5 Jun 2011 )
Ups and downs of forex trading
Lorna Tan, Senior Correspondent
1704 words
5 June 2011
Straits Times
STIMES
English
(c) 2011 Singapore Press Holdings Limited
There is plenty of potential in the market but be aware of the pitfalls
The pursuit of financial freedom has led many retail investors to consider foreign exchange trading.
Online forex trading has seen a tremendous growth in popularity and its appeal is easy to understand.
The forex market is the largest and most liquid of financial markets. It is available 24 hours a day, seven days a week. It is recession-proof and requires a small cash outlay and easy execution.
Ms Marion Lang, head of sales and marketing at forex trading services Oanda Asia Pacific, highlighted that global activity in the sector often exceeds US$4 trillion (S$5 trillion) a day. Over US$1.5 trillion of the total involves spot trading, which refers to the buying of one currency with a different currency for immediate delivery.
Although there are numerous currency pairs in the forex market, the more liquid and active pairs are EUR/USD, USD/JPY and GBP/USD.
Currently, Singapore is the fourth-largest forex market in the world. It is easy to spot advertisements here marketing forex seminars and workshops.
The danger arises when retail investors are taken in by the hyped-up promotions that characterise forex trading as a get-rich-quick activity, said financial experts and the Consumers Association of Singapore (Case).
Mr Seah Seng Choon, Case 's executive director, said it has received inquiries and complaints about forex programmes.
There were 13 last year and as of the end of April, it has received six cases so far this year. They range from complaints about pressure selling to alleged misrepresentation on the cost and benefits of the programmes as well as the existence of a particular overseas forex training
References: http://global.factiva.com.libwww3.np.edu.sg/aa/?ref=STIMES0020110604e76500001&pp=1&fcpil=en&napc=S&sa_from= Floating Exchange Rate. (2011). Wikipedia. Retrieved June 26, 2011, from http://en.wikipedia.org/wiki/Floating_exchange_rate Margaretts, S. (n.d.). The effect of exchange rates. Retrieved from http://www.revisionguru.co.uk/economics/exports.htm Currency swap. (n.d.). Retrieved from http://www.investopedia.com/terms/c/currencyswap.asp#axzz1QMzhlW6E