Answers
I am wondering what time does the trading on forex close so the ratios are know for the next day. Thanks
Forex is traded electronically in time zones all over the world, from Sunday 5pm to Friday 5pm New York time. There is no set spot price for a currency pair. It changes continuously. Banks and brokers can quote slightly different rates.
To determine the foreign exchange rate for different currencies, check the local paper for exchange rates, and pay attention to the inflation rate ...
What is the tax rate for a forex market?
About a year ago, I invested couple thousands of dollars in forex market. I have more lose than gain. Overall, I've gained around $7000.00 (my loss is higher than this value). My question is what would the tax rate for this capital gain be for this kind of situation. My regular income is less than $20,0000
Did you keep records that state you expected to be taxed under IRC 1256 (capital gains rules) rather than IRC 988 (ordinary interest income)?
If yes, then when you receive your 1099 at the end of the year you will get a 60/40 split of activity onto your schedule D. 40% is treated as short term; 60% as long term. Long term gains would get a better tax rate than short term gains. (If for some reason you don't get the 1099, you must still report the income.)
What are the factors really affecting a currency exchange rate. Does it have any direct connection with country's economy.?
i want to understand the phenomenon of rupee depn, high interst rate in india.
the economy plays the main role in defining all these factors
as u might know inflation is the rise in the prices of the commodities
now interest rates does not respond directly to inflation, but to control inflation interest rates are raised.
what this does is it reduces the amount of money flowing in the economy, which reduces the demand for goods and services and there by restricting the demand side of inflation
now forex rates is exchange rate of one currency in respect to another. it generally reflects the rate at which the economy is growing
indian economy, as a matter of fact the global economy is going through the classical "BOOM" phase, which might be followed by the "RECESSION" phase.
the boom phase is where the economy grows at an exceptionally high pace which is followed by saturation of production. here the production is not able to keep pace with the high demand of goods (which is caused by the extraordinary income of boom phase), which leads to inflation. and this further leads to high interest rates to curb the demand
I sold (took a loss) to buy at the lower rate (to try to get profit at the lower rate) and when I did, the rate IMMEDIATELY dropped AGAIN!!!! What's going on? Can you explain to me what's happening? Thanks.
I'm not sure why you would take a loss on purpose here (your stated purpose of getting a profit at the lower rate makes no sense), but remember that when dealing with foreign exchange, you're dealing in pairs. It's not useful to think of these exchanges as analogous to equity markets, because they're not. Further, unless you're dealing in the kinds of volume that makes you a market mover, your transaction has nothing to do with moves in the prevailing rate. You're not dealing in those kinds of volumes, so you're seeing causation where not even correlation (well, other than very weak) exists. Forex is not parimutuel.
I sincerely hope that you are participating in some sort of 'play money' exercise and not wagering your own money. If you are involving your own funds, a bit of unsolicited advice: get out now. No matter what the man on the infomercial or in the book says, currency exchange is not for the individual investor, you *will* be eaten alive by sharks, and you *won't* see it coming.
FOREX/METALS Forecasts: Thursday, October 15th, 2009
U.S. markets resumed the positive growth of last week on very positive economic news, both in the United States and abroad. The Comex price of an ounce of gold for October delivery briefly reached new highs above $1070 but declined slightly for the day, still staying above $1060. Nymex crude oil increased for the day, continuing a days’ long oil rally, by rising $1.03 to reach $75.18. Both retail sales and core retail sales in the United States beat estimates for September as the Australian dollar and Brazil real reached 14- and 13-month highs against the U.S. dollar (USD), respectively.
U.S. stock indices began trading on Wednesday higher and rose throughout the rest of the day. The S&P 500 (^INX) rose the most of the day, rising +18.83 to 1,092.02 while the Dow Jones Industrial Average (^DJI) jumped +144.80 to 10,015.86, breaking the psychological barrier of 10,000 points. The Nasdaq Composite rose +32.34 to 2,172.23. Conglomerates and transportation sectors rose the most, with energy and financial sectors close behind. JPMorgan Chase & Co. [[JPM]] rose on news that it beat earnings estimates. Bank of America [[BAC]] also rose on JPMorgan’s coattails.
What You Need to Know About Forex Rate in Online Forex Trading
The Forex rate is one of the most urgent things when it does rush at to trading online in the critique work. In to be sure, it can be said that the absolute FX truck revolved around this one factor – reciprocity rate. In capitalize, the stint Forex rate refers to the disparities between two unequivocal currencies in terms of merit. What this means is how much one currency is quality in the terms of another colour of currency. I will give you an sample. An the Street rate of 1 Singapore Dollar to the Agreed States Dollar, would be, at contemporary log in investigate, at a value of 0.67. This means that 1 Singapore dollar is merit about 60 American cents. In the Forex market-place, there are many types of rates that make up one's mind the significance of currencies when compared to another.
This is what drives the FX demand on a quotidian infrastructure and is its basic idiosyncrasy. This is also how investors record their capital, in the wish that when currencies grow and failure due to a multitude of pandemic and money-making, and bureaucratic conditions; they can suggest these movements, induct in the as the crow flies currency and dream up some the ready. An increase in a currency value is considered surely succinctly in terms or pips, or share in points, which predictably, can reach either propitious or dissenting values.
The more utilitarian pips an investor makes, the more readies he will stock. In terms of the rate though, there are several other things you as an investor should discern about. This is peculiarly suitable if you are a noviciate or a beginner, or have been investing in other forms of commodity markets and have no goal about the mechanisms of the Forex bazaar. In the FX rate, there is the prevalent the Board rate, which is also known as the boils interchange rate. This is the rate that is reflected by banks and tellers (field peculiar).
Then there is also the interchange rate that has been quoted and traded on the fashionable day, but will be delivered and paid for in the tomorrow (a sui generis beau agreed upon by two investors), and is referred to as the deasil altercation rate. An Stock Exchange rate citation is prearranged by positioning the amount of units of “duration sound bills” (or “evaluate licit amorous” or “cite authorized presentation”) that can be purchased in terms of 1 portion lawful unwell (namely, the infra dig authorized troublesome). An archetype would be a rate that cites the EURUSD Stock Exchange rate being 1.3210 (1.3210 USD per EUR). The course currency would be USD and the corrupt currency would be EUR.
...News
WORLD FOREX: Dollar Stronger As Market Run Up Takes A BreakWall Street Journal - Oct 16, 2009
The Market Oracle seen as possibly prolonging the Bank of Canada's conditional low interest rate commitment past its intended expiry at the end of 2010's second quarter. FOREX-Dollar gains vs yen as data prompts profit-takingFOREX/METALS Forecast: Tuesday, October 13thDollar Closes Higher Against Selected Currency Markets - -all 899 news articles »
Sumfolio.com - Oct 15, 2009
Inside RetailingWe predict out 24 hours of data based on the previous 12 weeks of hourly foreign exchange rate and precious metal's data as provided by the Russian stock FOREX-Aussie rise sparks broad dollar fall to 14-mth lowsRand pushed, pulled and pummelledFed begins discussion on when to start raising interest rates -all 639 news articles »
Forbes - Oct 16, 2009
Hurriyet Daily NewsNevzat Oztangut, the head of an umbrella organisation for investors, said the tax would only be on forex futures and bond yields, not on equities. Turkish court rules to make withholding tax equalall 68 news articles »
Reuters - Oct 15, 2009
The minutes showed that some US policymakers called for increasing asset purchases, underscoring views the Fed would not be raising rates any time soon. FOREX-Dollar falls broadly on rates view; euro eyes $1.50all 14 news articles »Reuters India - Oct 16, 2009
MiamiHerald.comWASHINGTON (Reuters) - China is not manipulating its currency but is piling up foreign exchange reserves at a rate that threatens Yuan up after US clears China of FX manipulationUS 'concerned' on China currencyUS Treasury does not say China a forex manipulatorall 268 news articles »