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Are you interested in learning more about Forex? Rich Dad Education offers online webinars. Register online >> http://bit.ly/ForexWeb
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FOREX:Cashflow With Currencies
The Cash Flow Quadrant and Rich Dad trademarks are owned by Rich Dad Operating Company, LLC and any such use is under license.
THE STRATEGIES SHOWN IN THE FOLLOWING SLIDES ARE RISKY AND SHOULD ONLY BE EXECUTED WITH PROPER EDUCATION ANDS INSTRUCTION.
Get to Know the Global Currency Market
• The global currency market is the largest and most liquid market in the world.
• The global currency market is known as:– Foreign Exchange
(Forex)
Understand the Forex Market
• Trade one foreign currency for another.
• Foreign currencies are traded in pairs.– Base Currency– Counter Currency or
“quote currency”• A currency quote
compares…– the relative value of the
base currency vs. quote currency.
Understand a Currency Quote
British Pound & U.S. Dollar
GBP / USD
U.S. Dollar
Quote Currency
British Pound
Base Currency
1 GBP costs $1.51 USD
Currencies fluctuate in fractions of a dollar called A “PIP”
(Price Interest Point)A PIP is the last decimal of a quote.
GBP/USD 1.5186
1.5188 … + 2 PIP’s
1.5184 … - 2 PIP’s
$ 1 . 5 1 8 6
Understand Forex: “PIP’s”
In 1997, over 80% of the world oil market was financed in USD.In 2008, less than 50% of the world oil market was financed in USD.
Dollar Demand
Dollar Supply
Price of Dollars
Commodity Prices
Inflation
Understand the Changing Value of the Dollar
How Big is the Forex Market?
• Over 4 Trillion U.S. Dollars change hands every day.– Forex dwarfs all other financial markets• U.S. Stock Market averages about $153 billion
daily • U.S. Bond Market averages about $800 billion
daily
• Add some perspective– Canada’s annual GDP in 2008• 1.5 trillion• Worlds 10th largest economy
The Financial Tip of a Lifetime
• Where are the current U.S. interest rates?– Federal Funds Rate
is .25
• Which way do you think U.S. interest rates will go from here?
How Do I Get Started?
Take one simple step.
Want More Information?
Sign up for the Forex FREE Webinar