What are you really selling or buying in the currency market?

The short answer is nothing. The retail FX market is purely a speculative market. No physical exchange of currencies ever takes place. All trades exist simply as computer entries and are netted out depending on market price. For dollar-denominated accounts, all profits or losses are calculated in dollars and recorded as such on the trader’s account.

The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations who need to trade currencies continually (for example, for payroll, payment for costs of goods and services from foreign vendors, and merger and acquisition activity). However, these day-to-day corporate needs comprise only about 20% of the market volume. Fully 80% of trades in the currency market are speculative in nature, put on by large financial institutions, multi-billion dollar hedge funds and even individuals who want to express their opinions on the economic and geopolitical events of the day.

Meaning of Trading in Pairs

Because currencies always trade in pairs, when a trader makes a trade he or she is always long one currency and short the other. For example, if a trader sells one standard lot (equivalent to 100,000 units) of EUR/USD, she would, in essence, have exchanged euros for dollars and would now be short euro and long dollars. To better understand this dynamic, let’s use a concrete example. If you went into an electronics store and purchased a computer for $1,000, what would you be doing? You would be exchanging your dollars for a computer. You would basically be short $1,000 and long 1 computer. The store would be long $1,000 but now short 1 computer in its inventory. The exact same principle applies to the FX market, except that no physical exchange takes place. While all transactions are simply computer entries, the consequences are no less real.
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Forex Trading, meaning Currency Trading, is a world wide, little known market, which will become the most popular source of income for investors in the very near future. It is open for banks, rich investors and small ones alike and, depending on the sum of money they are willing to risk, the earnings demonstrate this is the best way to start getting rich.

Why choose currency trading over stock, real estate or futures trading? The currency trading advantages are speed, liquidity, commission-free transactions, increased safety, short-term trading and great earnings. Let’s study each of these advantages in other trading systems:
-Speed: Currency trading is instant due to a large amount of transactions while future trading implies a longer time to trade certain commodities, agricultural products, financial instruments and goods (contracts need to be written and signed)
-Stock traders must pay brokers a certain fee for each transaction made. The brokerage fee is available for all futures transactions, but not in the case of currency trading. In currency trading brokers earn money by studying and profiting from the difference of price between sold and bought currencies.
-Liquidity: The currency market is opened non-stop, anywhere in the world giving currency traders the chance to trade whenever they find the opportune moment and prices. This is a characteristic attributed only to currency trading.
-Safety: while other trading systems are based on speculation, on the fluctuation of price, on slippage and market gaps, currency trading is controlled with the help of built in safeguards that limit slip-ups.
-Short term trading, like currency trading, is more efficient for profit making than long term trading. Day trading does not increase speculation, risk and does not imply that the broker’s commission will reduce any profit made.
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A way of winnig huge profits.
Currency exchange is the trading of one currency against another. Professionals refer to this as foreign exchange, but may also use the acronyms Forex or FX.

Currency exchange is necessary in numerous circumstances. Consumers typically come into contact with currency exchange when they travel. They go to a bank or currency exchange bureau to convert their “home currency into , the currency of the country they intend to travel to.
They may also purchase goods in a foreign country or via the Internet with their credit card, in which case they will find that the amount they paid in the foreign currency will have been converted to their home currency on their credit card statement.

Although each such currency exchange is a relatively small transaction, the aggregate of all such transactions is significant. Businesses typically have to convert currencies when they conduct business outside their home country. They exportin goods to another country and receive payment in the currency of that foreign country, then the payment must often be converted back to the home currency.

Similarly, if they have to import goods or services, then businesses will often have to pay in a foreign currency, requiring them to first convert their home currency into the foreign currency. Large companies convert huge amounts of currency each year. The timing of when they convert can have a large affect on their balance sheet and bottom line.Investors and speculators require currency exchange whenever they trade in any foreign investment, be that equities, bonds, bank deposits, or real estate.
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The most important rule in planning a youth fundraiser is to make sure that everybody has fun!

These ideas will work well for a youth group, a church young people’s group, non-profit group or a youth sports (e.g. football, baseball) group.

Here are seven ideas to get your fundraising started:-

Sales -if you type in “youth fundraiser” on any search engine you’ll find offers to sell cookie dough, pizza cards, scratch cards, candles, sports goods and plenty more. Depending on the age of the children and the type of group, the locality, consider which of these are likely to be well received in your area. Using existing contacts with family, neighbours and friends alone can be quite profitable.

Car wash – this can be a profitable way to raise funds. It will need good planning. A great free guide to organising a successful car wash event is available from www.carwashguys.com, called “How to run a successful car wash fundraiser” and is written by Lance Winslow.

Fundraising auction – clear out the garage, spring clean the house, ask for donations – and then auction!. Publicise your auction well in advance around the neighbourhood, invite friends and family, have a printed list of auction items and get someone you trust to run the actual auction itself for you.

Sponsored event – such as a walk, sleepover, or 24 hour sports event – your young people will have their own ideas as to what they’d like to do!

Photos – arrange for a photographer to come for a day or evening. Book a time slot for families, children, publicise the event. Arrange a good level of commission on all photographs purchased and ensure plenty of flyers are available to distribute.

Website advertising – does your group have a website? Could you set up a free blog to keep people informed? If so, consider selling advertising space to local suppliers who may be interested – e.g. the local sports shop.

Dance/Disco/Live Music/Barbeque/Casino event – any event that will work for your locality. Obviously, some church youth groups might find a casino night inappropriate. However, most of these are suitable for young people to help to arrange and to attend.
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