Forex Exchange Info, Tips & Resources

weng asked:


I have invested on forex market for a while and frequently heard about carry trade. As i know, this term means to buy in like Euro/Yen pair to profit from the difference between the two currency’s interest rate. The diffence in this pair’s interest rate is 3.5% now, but what about the GBD/USD pair which has only o.25% in difference?

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Pilot777 asked:


This paragraph from a website and i want to understand it in street words , please tell me what is saying here in simple words :

“Because you’re not buying anything physical, this kind of trading can be confusing. Think of buying a currency as buying a share in a particular country. When you buy, say, Japanese Yen, you are in effect buying a share in the Japanese economy, as the price of the currency is a direct reflection of what the market thinks about the current and future health of the Japanese economy.

In general, the exchange rate of a currency versus other currencies is a reflection of the condition of that country’s economy, compared to the other countries’ economies. “

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westphalia1 asked:


I opened a Bank stock trading account ( a custody account) in Iceland in June 2006. Purpose is to trade securities on the Iceland stock exchange. My deposit into the account was $191.00 (middle of June). In the middle of August my initial deposit was worth $209.00 I am not exactly sure what the interest rate might be but it is high. Regardless of how i approach my new brokerage account the underlying asset will be the currency (Iceland ISK). The custody account gave me the option of currecies to convert my US dollars from-To ISK or GBP or Denmark Krona, a few others. Any suggestions as to how i might play this account to my advantage to make a continuous profit just from the currency? Without trading stocks on that exchange? Thanks

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