May 14, 2012

Understanding the Difference Between Currency Futures and Spot Forex Trading

Forex is the largest market in the world in terms of the total cash value traded. Any person, company or country may participate in the market. Forex investors may engage in currency futures as well as trade in the spot forex market. The difference between these two investment options is minor as explained below.

The introduction of Forex futures occurred at the Chicago Mercantile Exchange in 1972. Forex futures also referred to as currency futures serve two primary purposes as financial instruments. First, they can be used by companies or individuals to remove the exchange rate risk inherent in international transactions. Second, they can be used by investors to speculate and profit from currency exchange rate fluctuations. Continue reading →

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May 5, 2012

Britons unaware of effect of inflation on savings

Many people do not know how inflation affects their medium-term finances, it has been said.

The majority of Britons are unaware about the effect inflation is having on their money stored in savings accounts such as ISAs in the wake of the global economic downturn.

That is according to Justin Modray of online resource Candid Money, who has noted that there seems to be a general lack of understanding among consumers with regard to how this figure impacts on their personal finances.

Mr Modray explained that while many people grasp the influence of inflation on everyday essentials such as gas and electric due to the clear rises in pricing it is causing, they are not yet considering how this will affect them in the longer term. Continue reading →

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April 28, 2012

Application Of Automated Financial Risk Management Procedures

Risk management is a crucial issue for the financial survival of institutions. Poor portfolio risk management continues to be a significant pain point for financial institutions large and small. Unpredictable nature of the markets calls for risk to be assessed and managed in the most efficient manner and on an ongoing basis. Major financial and economic risk drivers include shareholders, regulators, FASB, SEC as well as rating agencies. Legislation such as the Basel Capital Accord II, the Patriot Act, and the Sarbanes/Oxley Act has made it even more essential for money managers to be able to deliberately understand, manage and assess risk.

Assessing risk in connection with managing diverse and complex financial assets is a very complicated process, which requires sophisticated tools. Automating financial risk management procedures is a great way to establish an ongoing system that is capable of accessing numerous data points, thus providing a thorough analysis. Continue reading →

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