Archive for July, 2009

Oriental trading post

Wednesday, July 22nd, 2009

The oriental trading post is a place where different people come together to exchange their goods and services for a price. The route that is travelled between trading posts is referred to as trade route. These posts were considered as joint-spots for people for exchanging their goods and news of their home town.

The trading posts have a direct reference to the history of currency. As from the ancient of trading post history, there always occurred a need to have something as a medium of exchange. A medium to pay, for buying a good. Soon the barter system bud as medium to exchange goods. Eventually trade coins were discovered and were innovated and produced with metals like silver, gold and copper. And soon were brought into use as an exchange medium.

Today trade is even being done across nations which have a positive impact on the countries GDP (gross domestic product). There has been a marked growth in the field of economic, political, industrialisation, advanced transportations and outsourcings etc, have doubled the significance of international trade.

There are very few restrictions by the government while trading with different countries, except for a small amount of taxes known as tariffs. These tariffs are usually charged on imports and often charges tariffs on exports of trading post. Thus all these restrictions are referred to as trade barriers.

There are various organisations that provide free trade areas, these are:

1) European free trade association: it was established on May 3, 1960. The EFTA convention was signed on 4th January 1960 in Stockholm by seven states. And liberalised trade among member states. This development of the EFTA states ensured the modernisation of their convention and ensured further expansion and liberalisation of trade among their neighbouring countries as well as with the rest of the world.

2) Free trade areas of America: the FTAA was proposed to minimise the trade barriers among the countries in America. In the last round of talks which was held among 34 nations in November.

3) North America free trade agreement: it is created by the governments of the United States, Mexico and Canada. It was reckoned as a trilateral trade bloc. This agreement was proposed in January 1st 1994 and superseded the U.S-Canada free agreement.

4) Union of South American nations: it was constituted on May 23, 2008 during the third summit of the heads of the state in Brazil. This agreement too supported free trade posting in many countries like the Quito, Ecuador, Cochabamba and Bolivia.

5) South Asian free trade association: this came to act on January 1, 2006. In this agreement pact seven Asian countries have come together to lower down tariffs. It was signed during the 12th summit of the SAARC (south Asian association for regional cooperation). Thus India provided a pact that strengthened economic ties, reduced tariffs and promoted free trades.

Thus, the trade government has provided a common platform for oriental trading posts to meet their diversified needs.

Ways to efficient trading

Wednesday, July 8th, 2009

Billions of people trade everyday in the ‘Foreign exchange’ or ‘FX’, which is the largest market in the world. It trades USD 3 trillion every day and the currencies they deal include the currencies of the world like the euro/US dollar, Pound, Yen etc. It’s not like trading in the stock market as, forex market is not conducted by a central exchange but on the interbank market, which is thought of as an OTC (over the country). The trading takes place for 24 hours which allows people to trade anytime they want to. FX can be done either through telephone or via other mediums of electronic media like internet.
You can make the concept of forex trading easy by trading online. Trading online is a very easy method of trading as; a user can perform the task of trading by sitting at home only. Many traders have become shareholders while trading online. Online trading also allows a user to keep a check on his/ her account whenever one wants to. This type of trading enables a user to do it as a part time as well as a full time. No worries if, you have modest amount of money to invest, you can even start with that much of money too. Internet not only makes forex trading easy, its fees and commissions are comparatively lesser.
Various other advantages of forex market are:-
- A trader has infinite earning potential- This means if the trader has an ability to earn a large amount while trading then he can earn a lot.
- Forex market never sleeps
- Transparency- This market is transparent as anyone can search for the information related to forex real time news and analysis. On just a single click, one will be presented with thousands of results.
- Investment is low initially- If an investor is new, he can start with a minimum cost of ($300.00) as well. This is a very good option for a novice and it will also provide him the time to learn.
- No exchange fee or commission
- Leverage- A trader here is permitted to trade foreign currencies on a highly leveraged basis upto 100 times their investment.
- Profit in both rising and falling market- There is an equal opportunity of making profit whether the market is falling or rising. As, in a market if the value of one currency is going down, the other will rise up.

It involves a lot of risk to trade in the market. Therefore, it is advised that before having proper knowledge, one should not deal in FX trading. IT is necessary for a trader to understand the forex system properly for a trader. You can also take the expert’s advice before investing or doing a forex course can also help you a lot. It is very necessary for a trader to read books, articles and check the news and updates regularly to keep a track on what’s happening in the trading world.