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Currency Arbitrage Trading & Management offers a full range of quality services provided by our team of professional interactive brokers. With years of experience in foreign currency trading our interactive brokers are fully qualified to assist and direct all your Forex related queries. We operate demo accounts for investors in foreign currency trading that are new to the currency exchange arena. Mini- Forex accounts are also available to suit every budget. Our interactive brokers can be contacted for any reason on our 24-hour help line.
Currency Trading also referred to as Foreign Exchange, Forex, or FX, is the trading of one currency against another. The Currency Market is an inter-bank or inter-dealer market that was established in 1971 when floating exchange rates began to materialize. In addition, it is an Over-The-Counter market, meaning that transactions are conducted between two counter parties that agree to trade via the telephone or electronic network. Trading is thus not centralized, as is the case with many stock markets or as the case for currency futures or options, which trade on special exchanges. Currencies are traded every day for numerous reasons. For example:
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| Consumers |
| Typically come into contact with currency exchange when they travel. They go to a bank or currency exchange bureau to convert one currency (typically, their "home currency") into another (i.e. the currency of the country they intend to travel to) so they can pay for goods and services in the foreign country. |
| Businesses |
Typically have to convert currencies when they conduct business outside their home country. For example, if they export 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.
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| Commercial and Investment Banks |
| Trade currencies as a service for their commercial banking, deposit and lending customers. These institutions also generally participate in the currency market for hedging and proprietary trading purposes. |
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| Governments and central banks |
| Trade currencies to improve trading conditions or to intervene in an attempt to adjust economic or financial imbalances. Although they do not trade for speculative reasons, they are a non-profit organization; they often tend to be profitable, since they generally trade on a long-term basis. |
| Investors and speculators |
| Require currency exchange whenever they trade in any foreign investment, be that equities, bonds, bank deposits, or real estate. Investors and speculators also trade currencies directly in order to benefit from movements in the currency exchange markets. Speculators are often day traders, trying to take advantage of market movements in very short time periods; buying a currency and then selling it again may happen within hours or even minutes. |
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