Is it really possible for an individual to trade currencies. How can you compete with the institutions? What software would you use. What type of software do the institutions use?

This sounds really made up. Where can I learn more about trading Currencies?

There are millions of people around the world that make a living from trading the Forex. All you need to do is to get trained on how to do it. When you do, all your questions that you asked will have clear answers.

You should try www.londonstonetrading-fxsuccess.com. They train people worldwide and set them up with software, instant chat room, mentors etc. Also, if you decide it’s not for you, they offer all your money back. Pretty good. Good luck.

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http://www.amazon.com/Super-Imperialism-Origin-Fundamentals-Dominanc/dp/0745319890

read through the preface & introduction and have a few questions on how things work.

I have a question first…
1. What does a world reserve currency mean? Does it mean all countries use this as the mode of payment? I know oil for instance is in $ per barrel. Does it necessarily mean that all raw materials, fuels, ect will be traded in dollars? I presume that countries are free to choose, (but power and domination being a different story forcing oil producing nations to trade in $$ than gold or else). So how does it actually work in reality today, how do nations trade goods, raw materials, oil, ect…in what currency? Is it that some stuff are in $$ only while other stuff can be in any currency?

2. Now, Lets consider 2 nations A and the US. Nations buy and sell goods and services. So if nation A buys from the US, it in return pays to the US in their own currency. Similarly when it sells goods to the US they get paid in the US$ instead. So when a private company in nation A gets paid in US$, it is of no use for them, right? So how does it go about converting the cheque which is in US$?

3. From the book, I understand that nations produce and sell to one other and to the US, and in return from the US they get paid in US$. This US$$ is now sitting in central banks all over the world. Since this is pretty much useless the central banks *lend* this back to the US and buy treasury bonds. When bonds mature new bonds are issued. Instead of useless dollars they are now holding onto useless bonds which is never going to be paid & hence the enslavement of the planet by the $$ nation!!!
So my question here is, how and where from did the central banks get the dollars from? Guess this goes back to question (2). So if private companies trade stuff, and get paid in $$ what do they do with it? Secondly, what happens when nations sell raw materials/oil alone, as compared to something they produce like a software or a good from raw materials.

Basically am trying to understand the concept of ‘free lunch’. How on earth did central banks all over end up with US$ and Where did they get the dollars from?

OK, you’re dancing around the edges of real knowledge but you’re getting there. First, dismiss the notion that "nations" trade with each other. They do not. Many small individual companies trade with each other. One company is in the US, and the other company is in Country A. Some manufacturer in Country A sells its product to some importer in the US. (The notion of nations trading with each other is just an abstract macroeconomic construct that causes confusion to people who don’t really understand the underlying economic issues).

As private companies, they can choose to do business with each other in any currency they like. They could trade in goats if they wanted to. But as a practical matter, if a US company is involved, they will USUALLY agree to do trade in US dollars. Not always, but usually — especially if it’s a case of a large US corporation utilizing contract manufacturing overseas. And that’s just a result of the US being the dominant country and economy for many decades. We’re the big dog. That’s how things evolved.

Now, so this means a US corporation sends payment for goods in US dollars overseas to a supplier in, say, China. So some Chinese company lo and behold receives a big fat check in US dollars that it deposits into its bank. And you’re right, since the US dollar is not the local currency in China, what does the company do? The company has to make payroll and pay other expenses in China in Chinese Yuan (not dollars). And so that company may just exchange all those dollars for Yuan at its bank. That’s no mystery. You can run to your own nearest bank and exchange Mexican Pesos for dollars. That’s part of what a bank does.

What then does the bank do with dollars? It may use some for local currency exchange, for the next Chinese customer who needs dollars. What it doesn’t need, it filters up to the Chinese Central Bank. Hence a central bank is a collection point for US dollars and other foreign currencies. These are called "foreign reserves".

A central bank may do various things with its foreign reserves. The China Central Bank for example may contact the US central bank (The Federal Reserve) to swap Dollars for Yuan. They both have the others’ currency, so they swap to settle accounts. OR, the central bank may use its foreign reserves on the foreign-exchange markets to buy or sell its own currency or other currencies, in order to manipulate the value of its currency. This is common for a China, which tries to keep the Yuan at a certain value relative to the US dollar. The only way it can achieve a target value for its currency is by participating in the ForEx market itself.

OR the central bank may wish to simply hold on to the Dollars for future use. But it doesn’t want to hold useless, idle raw currency — stuff it under the mattress. The bank prefers to get some return on investment, so as a cash management strategy it buys short term US Treasury bonds, so as to get interest payments. Also doing so is a way to deploy US dollars without distorting the currency-exchange rate of the dollar versus other currencies. If you exchanged those dollars for any other currency or assets denominated in another currency, you start affecting the value of the dollar itself.

Now you’ve got that much but you greatly misunderstand by thinking the bonds are "useless" and won’t be redeemed. They certainly will be. All US bonds are redeemed for cash dollars upon maturity. The Treasury does NOT pay out new bonds to redeem old bonds. It ALWAYS pays cash in US dollars. Treasury does sell new bonds at auction to roll over debt, but that means selling new bonds to OTHER bond-buyers, in return for the cash used to redeem maturing bonds. And of course a central bank owning Treasuries can always just resell them on the bond market if they want US dollars in cash again.

Back to reserve currency. That means that any nation’s central bank is apt to keep US dollars on hand, because they’ll be useful in the future. Whereas, Mexican pesos or Canadian dollars, not so much. Therefore lots of foreign central banks keep dollars (or US Treasury Bonds) on hand. It also means when there is no better alternative, two foreign companies engaged in international trade may resort to using US dollars as a convenient medium of exchange — but that’s a voluntary choice, they are not required to. It also means that certain commodities that trade internationally (like oil) are usually traded among foreign trade partners in US dollars. Again, it’s a convenient solution as the universal currency on the planet, for two companies from different countries trading with each other.

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My biggest problems are Marketing, Market-Making, and maybe tweaks in the monetary policy. I also need maybe a place where the currency can be traded for goods, like maybe I can give online retailers payoffs for accepting my currency as payment.

I was also thinking of issuing bonds, payed for with dollars and payed back with units of my currency.

I have $400,000 and would like to know how I could start with that amount, or maybe raise more, and with software and websites and marketing ideas, how to store the gold, and attach that value to the currency.

Thanks for help and suggestions in advance!

I’m going to try and answer this for you, but I think Yahoo Answers is a little out of its league for this type of question. You should probably seek advice from an economist and specialised lawyer.

Firstly, my opinion is that your inflation rate is too high. And you should also consider converting it to an annual percentage rate so that it can be easily compared to other investments.

What you have is a novel idea. It made me think a little, and I wonder why there is currently no universal or worldly currency (i.e. one that is accepted as legal tender in every country). I think the Euro is the closest to this that we have… Some time in the future, I believe this to be inevitable, however, I’m not sure if a single person, or even company could pull it off. It’s perhaps something best suited to the IMF.

Anyway, back on topic… You have to be careful about your ‘suggested exchange rate’ idea. Baically, this figure equates to the value of one’s investment, much like a stock, and how it is derived or controlled will be of critical essence in the success or failure of your idea.

In regards to the above paragraph, perhaps you could float a company, and sell off a fixed number of units to your company. This would not be your virtual currency as such; just ownership to the idea. That would eliminate the need to sell off bonds, which you should not do, unless it is for the specific purpose of raising capital.

As for the marletplace, it won’t be likely that any retail shop would accept the currency if it were subject to any type of fluctuations. They want to be able to bank it for a specific amount, otherwise, it would play havoc with their pricing strategies. I know that particular statement is not an answer, but it is food for thought, as you need to consider the ramifications of that issue.

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53. What country has experienced significant industrial growth in recent years due to increased foreign investment and decentralization of economic control? (Points : 2)
China
France
Canada
Russia

54. What are possible reasons for poverty within a developing nation? (Points : 2)
universal health care and lack of foreign assistance
high literacy rate and low mortality rate
trade barriers and high national debt
vast geographic distances and high GNP

55. What is the best explanation for why international relief agencies would speak to officials in Kenya concerning an ongoing drought in neighboring Somalia? (Points : 2)
Kenya could expect large numbers of people to enter Kenya in order to avoid famine.

Somali leaders could be planning to invade Kenya to add additional farmland to their nation.

With the threat of famine, Somalia’s government could fall and be replaced by communism.

Kenya would be obligated under international law to provide humanitarian relief to Somalia.

56. In a city experiencing rapid urbanization, which of the following organizations would be least likely to need additional workers? (Points : 2)
Office of Agricultural Planning
Board of Education
Bureau of Public Housing
Office of Urban Planning

57. Which group of people has had the biggest impact on globalization? (Points : 2)
entrepreneurs and educators

legislators and information technology specialists

information technology specialists and artists

legislators and journalists

58. Who might not welcome globalization? (Points : 2)
a business owner looking to expand into new markets
leaders in a communist nation with a command economy
educators interested in providing intellectual experiences for their students
bankers and financial consultants looking for profits from investments

59. In what way was the Columbian Exchange that occurred after Columbus landed in the New World an early form of globalization? (Points : 2)
The Columbian Exchange provided both with a new form of currency that became the basis for trade.
There was an exchange of people, ideas, and goods between the Old World and the New World.
Europeans gained information about plants and animals on another part of the planet.
The Columbian Exchange set the stage for early foreign policy agreements that are the foundation of globalization.

60. Which way has increased globalization changed women’s status in the world economy? (Points : 2)
Fewer women are receiving higher educations, resulting in less control within the home and society.

Women make up enough of many national assemblies to change economic policy in favor of women.

More women are being forced to do domestic and child-raising work, allowing them to earn more money.

More women are being educated which results in employment opportunities, leading to empowerment.

52. Brazil…b/c the can make quality techs that are cheap
53. china….this is obvious
54.trade bariers and national debt…which result in nations not having enough money to assist their citizen
55.Kenya could expect large numbers of people to enter Kenya in order to avoid famine….this is so b/c there are already huge somalian refugee camps
56.Office of Agricultural Planning….others will increase with increasing urbanization
57.legislators and information technology specialists…good example of each is WTO and microsoft
58. leaders in a communist nation with a command economy….b/c globalisation means the
communist govt have to give some freedom
59.
60. More women are being educated which results in employment opportunities, leading to empowerment….example is India where girls that know english can find jobs easily b/c of education they get

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I have done MMS in Finance and now from past 3 years I am working with one of the Stock Broking House in Mumbai. Now I want to switch from the current employer but confused to decide on where and which profile to select. In the current profile I am right now looking for Online(Internet) Trading. Also working as Business Analyst (Intermediary between Client and Software Development Team.And Training to internal employees of the company about the operations and products of Equity and Currency Online Trading… I have also cleared NCFM exams of Capital Market, Derivatives, DP,Mutual Fund and Investment Analysis and Portfolio Management.
Hence Now I am finding it difficult and also confused about what to do for betterment of future….Please advice and suggest something relevant job or some course which can be done for bright future.

Hi Deepak,

I understand that with such a varied experience, you are now finding it confusing to pick one domain as you change jobs. Your current job has allowed you to experience different aspects of your line of work, which is good, since you will now have a broader understanding of how things work in this field, what you like doing and match it with your capabilities in order to understand where you want to go next.

I would suggest that you objectively take a good look at your experience and what you enjoy doing most, and only then plan out the next switch. It will give you a clear understanding of where you would like to see yourself two, five and more years from now.

Hope this helps..Good luck!

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