INTERNATIONAL BANKING & FINANCE

International Banking & Finance



Executive Summary

We have done our online trading on foreign exchange rates (currencies exchange) by selecting the top four currencies which are USD, AUD, CAD and GBP. The total amount which we invested was 50,000 AUD. The snapshots, shown in the appendix, provide all the rise and fall of our currencies that we traded. In some transactions we have suffered some losses but in the others we have experienced abnormal profits. By constantly observing the market for more than 2 days, we began our trading and carefully selected the four currencies that were to be traded. Apart from the easy-Forex portal, we have searched from various resources and finance journals related to the Forex exchange rates of various countries.

International Banking & Finance

Introduction

The purpose of the paper is to analyze the impact of investing in various currencies. As per our assignment, we were allotted a lump sum amount of 50,000 AUD. The trading was done on easy Forex portal that was accessed from http://www.easy-forex.com.au. The online trading account was beneficial for the sake of understanding the international currency exchange market. There are many reasons that people are never motivated to invest in trading because first of all they dont the hassle of going various places for trading and the second reason being the handling of all those paper certificates. These paper certificates are distributed to the investors when they are trading. Both of these issues are eliminated through the help of online trading.

The online trading makes the investor's transaction paperless and making the investors be in the market through the access of internet. They don't have to move from one exchange to another in order to invest their money. A virtual stock exchange is open in front of them through which they can trade from anyplace. The investor have the option to buy sell hold or any other option they find it suitable, any time, even the late hours of the night. The hassle of contacting the broker every time is disliked by many of the investors. Whether it be investor's home, office or any other place, they are ready to look at their portfolio performance and watch the fluctuation of their commodities just by accessing through internet. Online trading removes many hassles from the investor's perspective. The investors just have to transfer initial mount of fund to open their account from their bank account. Then all the transactions are automatically adjusted in the investor's account (Smith, 2002, pp. 45).

Advantages of Investing in Foreign Currency Market

People looking to make new investments often think of the gigantic investment vehicles such as the NASDAQ, Dow Jones, and S & P 500 that require hefty financial capital in order to make monetary gains. A new investment can be just as quickly and easily made in foreign exchange investing, also known as a Forex investment or a currency investment. The foreign currency market is unique in having several advantages over the other types of investments like ...