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August 15 2013

FAQ: What is the best Foreign Exchange (Forex) platform out there?

FAQ: What is the best Foreign Exchange (Forex) platform out there?

I’m thinking of going into the Forex market but I’m doing my research first. Which one do you think is the best and why?

www.goldsenze.com Answer:

It’s not depend on platform its depend on best quotas means not repeat quotas. Platform doesn’t matter the thing matter is price movement where its headed.

look one for that offers low spreads.

If you traded in the Forex market before or if you’re still trading now, you may have heard the term Forex broker a lot of times. However, as an individual t…

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July 26 2013

FAQ: In the day-to-day foreign exchange market what type of market participant demands the euro?

Q&A: In the day-to-day foreign exchange market what type of market participant demands the euro?

1. In the day-to-day foreign exchange market what type of market participant demands the euro? What type of market participant supplies the euro?

2. For few months, prior to your vacation trip to Germany, you find that the exchange rate for your U.S. dollar has decreased relative to the euro. If you were a U.S. citizen or resident, are you pleased?? Explain

3. Explain why a currency appreciation does not improve a nation’s balance of trade

Answer:

(1) Daily turnover in ForEx markets is over $ 4 trillion. About 40% of that, or $ 1.6 trillion is in euro trades.

http://en.wikipedia.org/wiki/Foreign_exchange_market

With a world annual GDP of about $ 61 trillion and so a daily GDP of about $ 0.16 trillion, the daily euro trade is about 10 times what is needed to actually buy the entire world GDP.

That means that at least 90% of the euro trades are for pure speculation – not for real hedging or use.

(3) If by “improve a nation’s balance of trade” you mean “increase exports and decrease imports”, the currency appreciation does not. But if you mean “bring exports and imports back into balance”, then when you have a trade surplus, it does improve the balance.

(2) If your currency is weaker, it means the other country’s products are more expensive.

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  3. FAQ: What is the best Foreign Exchange (forex) Platform trading in 2009?
  4. Can someone explain the ForEx market in laymen’s for me? – goldsenze

July 19 2013

Q&A: How can I enter the Foreign Exchange Market?

FAQ: How can I enter the Foreign Exchange Market?

I would like to enter the Foreign Exchange Market but I realy know very little about it. Does anyone know where I could get some accurate information (e.g.: websites)? Are there any good books I should take a look at? What about the Forex programs advertised on the television? Are they worth looking at or are they just a waste of money?

goldsenze.com Answer:

Enter a web search for “forex trading” and a number of sites will come up that do currency trading.

Interactive Brokers will set up an account for you to do currency trading.

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May 04 2013

Question: When selling foreign stock how does the IRS require Forex gain/losses to be calculated?

FAQ: When selling foreign stock how does the IRS require Forex gain/losses to be calculated?

I have most of my investments in Canadian and Australian stock.

My broker is IB but their end of year profit/loss calculations often makes no sense, so I must calculate gain/loss for tax accounting. I think their calculations make no sense because I transferred stock in from Etrade during 2008 and I think IB cannot calculate the original basis correctly.

Let’s use this as a scenario:

I bought Canadian dollars back in ’08, so each thousand US$ got me 1200 Canadian dollars.
I bought 100 shares of Canadian stock for $ 20 Canadian

A month ago I sold the 100 shares of Canadian Stock for $ 40 Canadian so I have a long term capital gain of $ 2000 (Canadian)

But at the time of sale $ 1000 US received $ 1002 Canadian. Therefore I have made a gain in the increased value of Canadian dollars I now receive relative to the value when I purchased the Canadian dollars.

Do I calculate the Capital gain and then do a separate calculation for the forex gain and if so would you please do a set of calculations to show the numbers?

Or (by IRS rules) do I simply ignore the forex gain/loss until I repatriate those Canadian dollars back into US$ .

Note (I have been reporting capital gains using a double set of calculations and now I’m wondering if I’ve been doing it wrong).

Note: I am not repatriating the Canadian by converting it to US$ , I simply leave it in my account as C$ . So I wonder now if by calculating forex gains (since I bought my Can$ in ’08 and the US$ has dropped against the C$ since then this means that all stock sales have a forex gain.

www.goldsenze.com Answer:

For puposes of schedule D and the form 8949, you convert the proceeds and basis to their US equivalents using the exchange rate on those days.

Using your numbers, you paid $ 16.67 per share. ($ 20 / 1200 * 1000)
You sold at $ 39.92 ($ 40 / 1002 * 1000) and have a gain of $ 23.25 per share.

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