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2009-10-10T11:01:00.000-07:00

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How To Talk Like An Investor

2009-10-10T10:59:00.000-07:00

How To Talk Like An Investor

by Ryan Campbell, Investools.com (Contact Author | Biography)

When it comes to understanding the long and short of investing, most beginner investors must learn what seems like a new language. In fact, the phrase "the long and the short of it" originated in financial markets. In this article we discuss certain key terms that will help you better understand and communicate with other market participants. These terms are used in the equity, derivative, future, commodity and forex (or currency) markets. You will learn what buying, selling and shorting really mean to investors and how they can use certain terms interchangeably with more confusing words like bullish and bearish. To compound the issue, options traders add in a few other terms like writing a contract versus selling one. When you can communicate properly, you will be better informed and can make wise investment decisions.

The Long and the Short of It
The financial markets allow you to do a few things that are really common in everyday life and a few things that aren't. When you buy a car, you own that car. In the stock market, also known as the equity market, when you buy a stock, you own that stock. However, you are also said to be "long" on the stock or have a long position. Whether you are trading futures, currencies or commodities, if you are long on a position, it means you own it and hope it will increase in value. To close out of a long position, you sell it.

Shorting will likely seem somewhat foreign to most new investors because shorting a position in the equity market is selling stock you don't actually own. Brokerage firmsallow speculators to borrow shares of stock and sell them on the open market, with the commitment to eventually return the shares. The investor will then sell the stock at the day's price in the hope of buying it back at a lower price while pocketing the difference. Catalog companies and online retailers use this concept daily by selling a product at a higher price, and then quickly buying it from a supplier at a lower price. The term originates from the situation where a person tries to pay a bill but is "short" on funds.

You may be interested to know that some people consider shorting to be unpatriotic or "bad form." During theGreat Depression, John Pierpont Morgan (J.P. Morgan) was famous for the phrase, "Don't sell America short." He was attempting to influence short sellers from pushing stocks lower. (The debate against short selling rages on to this day. See Short Selling: Making The Ban and Questioning The Virtue Of The Short Sale.)

The Currency Caveat
When trading foreign currencies in the "spot" market (currencies and many commodities are traded in the futures or spot markets), you are usually long one currency and short another. This is because you are exchanging one currency for another and therefore, various world currencies trade in pairs. For instance, if you think the U.S. dollar is going to rise but the euro is going to fall, you could short the euro and be long on the dollar. If you feel the dollar is going to rise and the Japanese yen will fall, you could be long on the dollar and short on the yen. (Also check out our Forex Tutorial for more in-depth explanations.)

Sentiment Speak
Other terms that are often new to beginning investors are "bullish" and "bearish." The term bullish is used to describe a person's feeling that the market will go up, while bearish describes a person who feels the market will go down. The most common way people remember these terms is that a bull attacks by ducking its head and bringing its horns upward. A bear attacks by swiping its paws down. Chicago is the home of commodity and futures markets; these markets are so ingrained within the identity of the city that the professional basketball team is the Bulls and the professional football team is the Bears. In fact, the Chicago Cubs' mascot is a bear cub. Only the White Sox seem to be the odd one out in this correlation. (To learn more, seeThe Wall Street Animal Farm: Getting To Know The Lingo.)

It is also common for investors to use the terms "long" or "short" to describe their market sentiment. Instead of saying they are bullish on the market, investors may say they are long on the market. Similarly on the downside, investors may say they are short on the market instead of using the term bearish. Either term is acceptable when describing your market sentiment; if you are bearish, you may also say you are short; if you are bullish, you may also say you are long. It is important to remember that short and long usually imply that you have a certain position in whatever market you are trading, but as you can see, that isn't always the case.

Derivative Dialects
The derivative market is also known as the options market. Options are contracts in which one party agrees to buy or sell a certain security (security is a generic term for any financial product) at a set price and set time to another party. Options are very common in the equities market but are also used in the futures and commodities markets. The forex, or currency, market is known for very creative derivatives known as exotic options. For our purposes, we'll refer to options in the stock market since it is most investors' first introduction to derivatives.

Options come down to calls and puts; call options give the contract buyer the right to purchase stock shares at a set price on or before a set date. Usually another investor will sell a call contract, which means they believe the stock will stay flat or go down. The person who buys the call is long on the contract, whereas the person who sells the contract is short.

A put option allows the contract buyer to sell stock at a set price before a set date. Like a call option, there is usually another investor willing to sell the option contract, which also means that investor believes the stock will either stay about the same price or rise in value. So the person who buys the option contract is long on the contract and the person who sold the contract is short.

Selling options while using the derivative dialect also gets more complicated because not only do they use the terms "sell" or "short" regarding the contract, option traders will also say they "wrote" a contract. Today, the contracts are standardized and no one really "writes" the contract, but the term is still very common. Covered calls are often one of the first option strategies investors learn; these involve the purchase of a stock and the sale of a call contract at the same time. The stock purchased acts as "collateral" in case the call is exercised by the option buyer and the seller can relinquish the shares while keeping the premium gained for selling the option. Because investors are buying a stock and selling a call at the same time, they use a "buy-write" order. (Refer to our Options Basics Tutorial to explore these topics in more detail.)

Market Double Talk
At this point, you may find yourself going back to reread some of the vocabulary that was just discussed. Let's do a quick recap. Investors will either say they are bullish, or long, on the market, or bearish, or short, on the market. If we are long one currency in the forex spot market, we are short another currency at the same time. This can be confusing but not nearly as confusing as the options market.

In the options market, we can say we are bullish on a stock and then short a put because while being bullish, we can either buy a call or sell a put. We can be bearish on a stock and be long on a put because if we are bearish, we can either buy a put or sell a call. This may also mean that we are short on the market by going long on a put or long the on market by shorting a call. You can imagine the linguistic laughter that comes from a group of option buyers talking to each other.

In many cases, and not just in the financial world, overcoming the language barrier will be one of the vital keys to success. Investing carries with it its own language barricades that must be broken down by translating the terms and subduing the syntax.

Take a look at our Investing 101 Special Feature to find more articles geared towards new investors.

by Ryan Campbell, (Contact Author | Biography)

Ryan Campbell, CMT has worked in the financial industry for approximately a decade. He has worked as a full-service broker, a banker and is currently a content producer for Investools.com. He writes a daily market commentary and develops courses on trading equities, options, futures and currencies. He has contributed as a columnist to other financial publications. Ryan is also an active member of the Market Technicians Association and was the recipient of its prestigious Chartered Market Technician designation. Investools® andthinkorswim® are wholly owned subsidiaries of TD AMERITRADE.

Financial Articles

2009-10-10T10:55:00.000-07:00

Financial Articles - Investing Basics

Check in here to learn the fundamentals of investing. From stocks to bonds to asset allocation strategies, everything is explained from the perspective of a new investor.

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Investing Basics Article Archive

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Whisper Numbers: Should You Listen?
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The Dangers Of Over-Diversification
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The REIT Way
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IFEMA

2009-10-10T10:52:00.000-07:00

International Foreign Exchange Master Agreement - IFEMA

What Does International Foreign Exchange Master Agreement - IFEMA Mean?
An agreement set forth by the Foreign Exchange Committee that reflects the best practices for transactions in the foreign exchange market. IFEMA was published in 1997 and sponsored by the British Bankers Association, Canadian Foreign Exchange Committee and the Tokyo Foreign Exchange Market Practices Committee.

Investopedia explains International Foreign Exchange Master Agreement - IFEMA
IFEMA is a standardized agreement between two parties for the exchange of currency. The agreement covers all facets of the transaction, providing detailed practices on the creation and settlement for a forex contract. In addition to the terms of a contract, IFEMA explains the consequences of default, force majeure or other unforeseen circumstances.

Related Terms

Default
Force Majeure
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Forex Tutorial: The Forex Market - In this online tutorial, beginners and experts alike can learn the ins and outs of the retail forex market.
Getting Started In Forex - Before entering this market, you should define what you need from your broker and from your strategy.
The Fundamentals Of Forex Fundamentals - Charting is not the only way to analyze the foreign-exchange market. Learn how to analyze the economic indicators.
A Primer On The Forex Market - Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
Getting Started in Foreign Exchange Futures - Learn how these futures are used for hedging and speculating, and how they are different from traditional futures.
Commodity Prices And Currency Movements - Find out which currencies are most affected by fluctuations in gold and oil prices and improve your trading.
Explosive Gains In Forex – Learn what makes the currency markets move with your exclusive free report!
FXCM - Learn to Trade Currency with Free Demo
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Free Introductory Forex Trading Guide from GFT - Everything a beginner needs to know before entering the exciting & fast-paced forex market – from how to choose a dealer to how to place an order

Threads in Forum

2009-10-10T10:51:00.000-07:00

RatingThread / Thread Starter	Last Post	Replies	Views
Sticky: FXDrive Contest: The Official Forum mayday	10-07-2009 03:33 PM by slombardi	1	70
Sticky: Forex Club TV mayday	07-27-2009 02:51 PM by mayday	0	612
Cant deal with Rumus pda on samsung omnia sgh i900 ngj874	10-06-2009 02:05 PM by mayday	1	50
Forex Club’s NEW Office in Chinatown mayday	09-30-2009 09:13 AM by mayday	0	72
Fibonacci theory for forex strategy fxburton	09-28-2009 09:06 PM by lefty1154	6	1,461
Bank Information sahilshaikh	09-23-2009 09:01 AM by sahilshaikh	2	165
Withdraw Funds & SWIFT / ABA pandeminijus	09-09-2009 04:08 PM by mayday	4	482
Withdrawal Problems??!!! sahilshaikh	09-09-2009 03:57 PM by mayday	1	243
W-8BEN Form sahilshaikh	09-09-2009 08:20 AM by mayday	3	251
Can I open a live account without problem? auh	08-21-2009 10:39 AM by mayday	1	310
gatorhead bailout digitalrascal	07-29-2009 11:56 PM by digitalrascal	0	522
withdrawals karibean	07-22-2009 07:52 AM by FxClub_support	1	821
unable to change information in "my fxclub" bealeplatypus	07-19-2009 02:03 AM by FxClub_support	1	609
what does it mean ............ lzh007	07-15-2009 08:11 AM by slombardi	3	687
USDCAD !!! fm2034	07-09-2009 12:35 AM by FxClub_support	1	692
Fraudulence slombardi	07-05-2009 04:47 AM by Gabrijel	8	1,558
does express platform have linux version? lzh007	07-01-2009 11:08 PM by FxClub_support	1	626
can we put order in express platform? lzh007	06-29-2009 09:47 AM by FxClub_support	4	833
Fibonacci expansion ( 1 2) branac	06-29-2009 08:34 AM by TXFX	10	3,297
Fees !!! ( 1 2) fm2034	06-24-2009 08:02 AM by TXFX	13	1,662
corporate account ducreme16	06-22-2009 09:21 AM by mayday	1	605
after my account is closed....... lzh007	06-19-2009 08:17 AM by mayday	3	818

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Market Research

2009-10-10T10:50:00.001-07:00

Market Research


Senior foreign exchange correspondent Nicholas Hastings reports our Dow Jones news with an insight found nowhere else in the industry. Read his daily articles for ideas of where currencies will move.	Autochartist, one of the most advanced signal tracking software on the market, offers Forex Club customers a daily article with a detailed account of a powerful forming trend.	Forex Club is proud to offer you Forex Factory's daily economic calendar. By making a study of the calendar and its events, you can ensure that you'll be on the right side of every trade.

The Yen's Advance Is Far from Over.
The yen's relentless rise will continue. Despite the installation of a new administration in Tokyo, despite renewed threats of market intervention and despite fears about Japan's growth prospects, there is little reason to expect a reverse.

AUD/USD Swing Entry Setup and Timing
Lines and levels which will dictate an entry is part of any trade. Determining when the trade will trigger also plays an important role in trading.

Forex Club is proud to offer you Forex Factory's daily economic calendar. By making a study of the calendar and its events, you can ensure that you'll be on the right side of every trade.

Account Opening

2009-10-10T10:49:00.001-07:00

Opening an Account

Step 1: Submit Account Application

Opening an Account
To open an account, simply fill out an application. It only takes a few minutes. Most applications are processed on the same business day. At Forex Club, we strictly adhere to the "know your customer" principles, rules and procedures established by the CFTC and National Futures Association, making it mandatory for all clients to submit an application. Who knows, signing up may be the greatest decision of your life. You'll never know unless you sign up, right?

Step 2 : Fund your account

	CREDIT CARD
	Simply log in to MY FXBANK, click "Deposit Funds" and input your card information and your funds will appear in your account in minutes. A processing fee of 2.24% to 2.59% will be charged to your Visa or Master Card, depending on the card. Deposits made with Discover Cards will not be charged a processing fee. If you deposit before the closing of a weekly trading session, the money will reach your account immediately, as long as your transaction clears. The end of the weekly trading session occurs at 21:00GMT on Fridays, except for holidays. LOGIN TO MY FXBANK

	ONLINE CHECK
	Forex Club's US customers now have the option of depositing funds into their account via Checks. Write your trading account number on each check. Please note that check transactions are deposited to accounts only after they clear our bank. Use our convenient online check option to make a deposit by check: Online Check You can also mail your check to our office address: Forex Club Financial Co, Inc. 1200 South Ave. Suite 203 Staten Island NY 10314 Attn: Financial Dept.

	BANK WIRE
	Funds sent via bank wire will be deposited to your trading account as soon as they reach our bank. Forex Club does not charge any fees, but it is not responsible for any fees charged by processing banks.

	MONEY ORDER
	Money Orders are the one of the safest ways to send your funds through the mail. Money Orders can be sent to Forex Club Financial Company, 1200 South Ave. Suite 203, Staten Island NY 10314. Click to see how to write money order

Market Signals

2009-10-10T10:48:00.001-07:00

Market Signals

click to install the software

Market Signals are used by traders to estimate where price will move. By analyzing past “trends”, or the general direction of movement for prices, our Autochartist software will supply you with Market Signals.

	Identify quality trading opportunities and emerging trends in real-time
	Software uses years of data to identify present trends
	Powerful and yet easy use
	Full version available absolutely free for Forex Club customers with deposits of $500 or more
	Free Demo version of software is limited to 15 signals per day and comes with our free demo account

Our technical chart patterns are based on the theory of market psychology, which has been researched, developed and trusted since the 1930's. The software strictly adheres to this theory when identifying patterns and notifies you as patterns are forming. Below is an example of how the software works.

As you can see, it identifies a pattern and tells you how strong it is.

Want to learn even more about Autochartist? Check out their online tutorials!

Tutorial 1: How to trade chart patterns using Autochartis
Tutorial 2: Scanning the markets for set ups while using Autochartist
Tutorial 3: Designing your own scans, or customizing settings on the Autochartist platform
Tutorial 4: Interpreting chart patterns and how to optimize this information to make better trading decisions
Tutorial 5: Continuation versus reversal patterns identified by the Autochartist platform
Tutorial 6: Trends and market stages: Identifying the best pattern with which to trade

Forex Guid Line

2009-10-10T10:46:00.000-07:00

Guide to Forex

STOP
The signs of the road are easy to read. No matter where you are in the world, chances are pretty good that you’d know what to do at a red octagonal sign or a green light. We combined forex learning with the rules of the road to give you a fun and easy way to learn the basics of forex trading. Driving a car can be exciting, fun and, if you’re not doing it properly, very dangerous. Just like forex trading. If you’re ready to learn, have a seat, fasten your belt and enjoy our Forex Ed lessons.

HOW THE ROAD WAS PAVED

THE BASIC MECHANICS BEHIND A TRADE

HOW TO GET THERE SAFELY

KEEPING YOUR EYES ON THE ROAD

LOOK
Yellow means look. Take a look around and see why Forex Club’s platforms and advantages are unique and beneficial to you.

SIGN UP FOR FOREX ED CLASSES

RIDE WITH COMFORT

TRADE WITH THE BEST SAFETY FEATURES

TRADE
The light’s green! It’s time for you to put the pedal to the metal and get en route to your forex career.

THE VEHICLES

FUELING YOUR RIDE

ALL THE DIRECTION YOU NEED

GETTING YOURSELF A SYSTEM

Alliance and Webmaster Currency Tools

2009-10-10T10:20:00.000-07:00

Alliance and Webmaster Currency Tools

'Free and easy' currency content tools for your web site

They don't say 'content is king' of the Internet without good reason! Regularly updated content is a key to keeping your visitors coming back to your website time and time again. With this mind, OzForex has developed a free content syndication service specifically designed to provide valuable, quality content to third party websites.

Our large range of foreign exchange and currency tools can now be added to your website to increase your visitor loyalty. They are also an important tool in the purchasing journey of your customers, as they help answer price questions at that moment when they are ready to buy. Add as many as you like to increase your sales and provide a better service for your online traffic.

Why bother Registering?

OzForex is always improving and updating the services and products that we provide. Sometimes this means slightly altering the format of information or the methods used to retrieve it. We will always notify registered users when we are about to make such a change and will provide you with clear instructions on what you need to do to ensure that your service is not interrupted. Unfortunately we cannot guarantee this to people who choose to use these products and services but decide not to register.

Live Rate Tiles	FREE!	Launch Sample
FX Charts	FREE!	Launch Sample
Currency Converters	FREE!	Launch Sample
Commentary Feeds	FREE!	Launch Sample
Major Currency Pair Box	FREE!	Launch Sample

Here's 7 great reasons why you should join now!

FREE to join and use - pay absolutely nothing
Live service provided around the clock - 24/7/365
Huge range of flexible and powerful options
Simple copy and paste HTML, or brand with your site design
Unlimited usage on your site
Tools hosted on our site's server, ready for your use
Strength of a leading global foreign exchange and currency provider behind you

Why are so many other webmasters using our tools?

A dynamic source of corporate foreign exchange data - great for FX traders
They provide local prices for online shops & ecommerce stores - don't lose sales
It's a great service to assist travellers - who tell their friends
Online customer loyalty device - high stickiness means repeat visits
Notification of new tools and content modifications - no more broken pages
Fresh live content without ongoing maintenance - too easy!
It's FREE - there's absolutely nothing to lose... so join no

Margin Foreign Eexchange

2009-10-10T10:18:00.000-07:00

Margin FX

If you are interested in foreign exchange margin trading, we suggest contacting CMC Markets for FX Contracts for Difference (CFDs).

FX CFD trading is the simultaneous buying of one currency and selling of another. FX CFDs are traded on margin, which means that you only allocate a small proportion of the value of the position but gain full exposure to the market - increasing your profit (and loss) potential.

CMC Markets offer tight dealing spreads over Spot and Forward FX CFDs.

Visit CMC Markets to find out more about their services or to open an account.

Open a CMC Markets account

OzForex does not provide any form of margin trading facilities and cannot offer any advice or information in relation to foreign exchange margin trading.

Disclosure of Referral Commission Payments: OzForex has a referral agreement with CMC pursuant to which OzForex is paid a referral fee by CMC in relation to clients referred by OzForex. The amount of the referral commission will depend on the type of contract entered into. In the case of a foreign exchange CFD, for example, if a client entered into an AUD/GBP spot transaction for AUD$100,000 OzForex would be paid a commission of GBP1.25. (ie: 100,000 * 0.25 pips = GBP 1.25).

Foreign Excange for Individuals

2009-10-10T10:17:00.000-07:00

Foreign Exchange for Individuals

Whether emigrating, buying a holiday home or purchasing goods from overseas, you can make very significant savings on your transactions using OzForex versus a bank.

You will also benefit from our expertise in managing the hidden risks caused by exchange rate fluctuations which can seriously impact your outcomes.

For example if you are emigrating and the currency you have depreciates you will have less capital to get started in your new life. OzForex offers simple solutions that enable you to mitigate this risk.

Each client is assigned a dedicated forex dealer who will provide information on market trends and clearly explain how you can manage your risk and achieve the best rates.

OzForex offers a completely transparent service where you can compare our rates versus wholesale rates, and against your bank. Using OzForex is a breeze - simply follow these steps to transact:

Register with OzForex
Login and request a live (and dealable) rate
Confirm your rate, deal and payee details with OzForex
Transfer payment to OzForex
OzForex transfers your funds to the beneficiary

** Please note: OzForex does not deal in cash or travellers cheques. OzForex does not accept payment by credit card, cash or cheque. OzForex does not provide transfer of funds to the Philippines, Russia, Indonesia, Malaysia and a range of other countries. The minimum transfer size is AUD$2,000 or equivalent.

There is no obligation or cost to REGISTER so why not check out our live rates and compare them with what you currently receive?

Next Steps:

Frequently Asked Questions
Register for Live Quotes

Related Information:

Forward Hedging Guide
What are Limit Orders?
Available Payment Types
Supported Currencies
Minimum Amounts
Contact Us for More Information

Foreign Excange for Business

2009-10-10T10:15:00.000-07:00

Foreign Exchange for Business

OzForex offers excellent rates on foreign exchange for businesses. Whenever you make a purchase or sale which involves a foreign currency, OzForex can save you money through better exchange rates and low (or often no) fees. OzForex offers an easy and convenient system to view live rates, store your beneficiary details, lock in deals and view details of past transactions.

Having access to dedicated analysts and dealers is out of the question for most small businesses. However, OzForex provides expert dealers to discuss your foreign exchange needs and to help formulate strategies to reduce your foreign exchange risk. The OzForex system is extremely transparent and allows you to view the interbank rate and the rate you will receive. There are no commissions or hidden fees.

For a fresh approach to your currency needs, call us now to speak to one of our foreign exchange specialists. Our toll free numbers are:

Canada 1800 680 0750
United Kingdom 0845 686 1950
Australia 1300 300 524
New Zealand 0800 161 868

Next Steps:

Frequently Asked Questions
Register for Live Quotes

Related Information:

Forward Hedging Guide
What are Limit Orders?
Available Payment Types
Supported Currencies
Minimum Amounts
Contact Us for More Information

IMF/World Bank support of military dictatorships

2009-09-19T10:34:00.001-07:00

The role of the Bretton Woods institutions has been controversial since the late Cold War period, as the IMF policy makers supported military dictatorships friendly to American and European corporations. Critics also claim that the IMF is generally apathetic or hostile to their views of democracy, human rights, and labor rights. The controversy has helped spark the Anti-globalization movement. Arguments in favor of the IMF say that economic stability is a precursor to democracy; however, critics highlight various examples in which democratized countries fell after receiving IMF loans.[16]
In the 1960s, the IMF and the World Bank supported the government of Brazil’s military dictator Castello Branco with tens of millions of dollars of loans and credit that were denied to previous democratically-elected governments.[17]
Countries that were or are under a Military dictatorship whilst being members of the IMF/World Bank (support from various sources in $ Billion):[18]

IMF

2009-09-19T10:31:00.000-07:00

The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments. It is an organization formed to stabilize international exchange rates and facilitate development.[2] It also offers highly leveraged loans mainly to poorer countries. Its headquarters are located in Washington, D.C., United States.
Contents[hide]
1 Organization and purpose
1.1 History
1.2 Today
2 Data dissemination systems
3 Membership qualifications
4 Members' quotas and voting power, and Board of Governors
5 Assistance and reforms
6 IMF/World Bank support of military dictatorships
7 Criticism
7.1 Impact on public health
7.2 Criticism from free-market advocates
7.3 Attempts to repair image
8 Managing Director
9 Media representation of the IMF
10 See also
11 Scams using the name of the IMF
12 References
13 Further references
14 External links

History

2009-09-19T10:30:00.000-07:00

Technically the predecessor to the ECB was the European Monetary Institute (EMI). However the ECB is the de facto descendant of the German Bundesbank in both design and importance. The EMI was established at the start of the second stage of the EU's Economic and Monetary Union (EMU) to handle the transitional issues of states adopting the euro and prepare for the creation of the ECB and European System of Central Banks (ESCB). The EMI itself took over from the earlier European Monetary Co-operation Fund (EMCF).[1]
The ECB formally replaced the EMI on 1 June 1998 by virtue of the Treaty on European Union (TEU, Treaty of Maastricht), however it did not exercise its full powers until the introduction of the euro on 1 January 1999, signalling the third stage of EMU. The bank was the final institution needed for EMU, as outlined by the EMU reports of Pierre Werner and President Jacques Delors.[1] It was established on 1 June 1998.[2]

Wim Duisenberg (1935-2005), first President of the ECB.
The first President of the Bank was Wim Duisenberg, the former president of the Dutch central bank and the European Monetary Institute. While Duisenberg had been the head of the EMI (taking over from Alexandre Lamfalussy of Belgium) just before the ECB came into existence, the French government wanted Jean-Claude Trichet, former head of French central bank, to be the ECB's first president. The French argued that since the ECB was to be located in Germany, its President should be French. This was opposed by the German, Dutch and Belgian governments who saw Duisenberg as a guarantor of a strong euro.[3] Tensions were abated by a gentleman's agreement in which Duisenberg would stand down before the end of his mandate, to be replaced by Trichet, an event which occurred in November 2003.
There had also been tension over the ECB's Executive Board, with the United Kingdom demanding a seat even though it had not joined the Single Currency. Under pressure from France three seats were assigned to the largest members, France, Germany, Italy and Spain. Despite such a system of appointment the board asserted its independence early on in resisting calls for interest rates and future candidates to it

Powers and objectives

2009-09-19T10:29:00.002-07:00

The primary objective of the ECB is to maintain price stability within the Eurozone, or in other words to keep inflation low. The Governing Council defined price stability as inflation (Harmonised Index of Consumer Prices) of below, but close to, 2%.[4]. Unlike for example the United States Federal Reserve Bank, the ECB has only one primary objective with other objectives subordinate to it.
The key tasks of the ECB are to define and implement the monetary policy for the Eurozone, to conduct foreign exchange operations, to take care of the foreign reserves of the European System of Central Banks and promote smooth operation of the money market infrastructure under the Target payments system.[5]
Furthermore, it has the exclusive right to authorise the issuance of euro banknotes. Member states can issue euro coins but the amount must be authorised by the ECB beforehand (upon the introduction of the euro, the ECB also had exclusive right to issue coins[5]). The bank must also co-operate within the EU and internationally with third bodies and entities. Finally it contributes to maintaining a stable financial system and monitoring the banking sector.[6] The latter can be seen, for example, in the bank's intervention during the 2007 credit crisis when it loaned billions of euros to banks to stabilise the financial system

Location

2009-09-19T10:29:00.001-07:00

The bank is based in Frankfurt, the largest financial centre in the Eurozone. Its location in the city is fixed by the Amsterdam Treaty along with other major institutions.[18] In the city, the bank currently occupies Frankfurt's Eurotower until its purpose-built headquarters are built.[19]
In 1999 an international architectural competition was launched by the bank to design a new building. It was won by a Vienna-based architectural office called Coop Himmelbau. The building will be approximately 180 metres (591 ft) tall (the present building is 148 m/486 ft) and will be accompanied by other secondary buildings on a landscaped site on the site of the former wholesale market (Grossmarkthalle) in the eastern part of Frankfurt am Main.

European Central Bank

2009-09-19T10:26:00.000-07:00

The European Central Bank (ECB) is one of the world's most important central banks, responsible for monetary policy covering the 16 member States of the Eurozone. It was established by the European Union (EU) in 1998 with its headquarters in Frankfurt, Germany.
Contents[hide]
1 History
2 Powers and objectives
2.1 Borrowing rate
3 Organisation
4 Independence and future
5 Location
6 See also
7 References
8 External links

Canada Currency

2009-09-18T13:52:00.000-07:00

Brazil Currency

2009-09-18T13:50:00.001-07:00

British West Africa Currency

2009-09-18T13:48:00.001-07:00

Australia Currency

2009-09-18T13:46:00.000-07:00

Pak Currency

2009-09-18T13:44:00.001-07:00

Forex Scam

2009-09-15T12:25:00.000-07:00

A forex (or foreign exchange) scam is any trading scheme used to defraud traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market. Currency trading "has become the fraud du jour" as of early 2008, according to Michael Dunn of the U.S. Commodity Futures Trading Commission.[1] But "the market has long been plagued by swindlers preying on the gullible," according to the New York Times.[2] "The average individual foreign-exchange-trading victim loses about $15,000, according to CFTC records" according to The Wall Street Journal.[3] The North American Securities Administrators Association says that "off-exchange forex trading by retail investors is at best extremely risky, and at worst, outright fraud."[4]
"In a typical case, investors may be promised tens of thousands of dollars in profits in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted – stolen – for the personal benefit of the con artists."[5]
In August, 2008 the CFTC set up a special task force to deal with growing foreign exchange fraud.”[6]
The forex market is a zero-sum game,[7] meaning that whatever one trader gains, another loses, except that brokerage commissions and other transaction costs are subtracted from the results of all traders, technically making forex a "negative-sum" game.
These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits,[8] improperly managed "managed accounts",[9] false advertising,[10] Ponzi schemes and outright fraud.[4][11] It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment.[12]
The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry.[13]
An official of the National Futures Association was quoted as saying, "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically."[14] Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $350 million. From 2001 to 2007, about 26,000 people lost $460 million in forex frauds.[1] CNN quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, "Banks have a duty to protect their customers and they should make sure customers understand what they are doing. Now if people go online, on non-bank portals