Expatriates Forums in Croatia

Hit TV Show seeking Americans looking to buy in Dubrovnik!

TV producer US — Wed Sep 09, 2009 8:38 pm

Author: TV producer US

Posted: Wed Sep 09, 2009 8:38 pm

Hi ! My name is Robert Fielder and I'm one of the producers of "A Place in the Sun - U.S.". This is a tremendously popular UK show, now being made in the United States about Americans purchasing property abroad. "A Place in the Sun - U.S." will be filming in and around the Dubrovnik area at the end of September and early October. We are currently searching for Americans looking to buy property in Dubrovnik and or real estate agents with American clients looking to buy there to be featured on our show. Air travel and accommodations will be provided. If you'd like to be featured on our program please get in touch with me at your earliest convience.
Thank you for your assistance.

Robert Fielder
Segment Producer
"A Place in the Sun" - US
Handbook Productions
310-727-2640
rfielder@handbookproductions

WORK IN CROATIA / CROATIA EMPLOYMENT GUIDE

Croatia Info — Thu May 17, 2007 8:37 am

Author: Croatia Info

Posted: Thu May 17, 2007 8:37 am

WORK IN CROATIA

The Croatian economy has emerged from a mild recession at the turn of the millennium with tourism the main factor for improvement, but high unemployment remains the principal negative factor. Damage to infrastructure during the war has also made economic development difficult, as have coalition politics and trade union insistence on strict employment protection. However, the economic growth rate has been high since 2000, standing at 3.7% in 2004.

Service industries, especially tourism, account for over 60% of gross domestic product. Croatia’s rich cultural and historical heritage and its attractive coastline and islands attracted over ten million visitors in 2004.

The unemployment rate is high at around 13.8% in 2004, and with a high standard of education and vocational training, opportunities for immigrant workers are thought to be scarce. Teaching English as a Foreign Language (TEFL) is one of the few opportunities for EU nationals to find work in Croatia. Approach language schools directly if you are interested in teaching English as a foreign language (TEFL).

Some opportunities may exist for voluntary experience in conservation and work with refugees.

DOING BUSINESS IN CROATIA / CROATIA BUSINESS GUIDE

Croatia Info — Thu May 17, 2007 8:07 am

Author: Croatia Info

Posted: Thu May 17, 2007 8:07 am

DOING BUSINESS IN CROATIA

STARTING A BUSINESS

STANDARDIZED COMPANY
Legal Form: Limited Liability Company
Minimum Capital Requirement: 20,000
City: Zagreb

Registration Requirements:

Procedure 1. Visit the single access point (HITRO) at FINA (Financial Agency)

Time to complete: 1 day

Cost to complete: No charge for FINA services; other costs listed under relevant procedure

Comment:

1. A founder decides upon the name of the prospective company. The employees of FINA check whether the name is available.

2. The employees of FINA provide the prospective founder with the required information, forms and payment slips.

3. The founder deposits the founding capital (min HRK 20,000), and pays court fees (HRK 400), publication fee (HRK 810), State Office for Statistics (Drzavni zavod za statistiku) fees (HRK 55).

4. The founder provides the employees of FINA with information as to the main business activity for the purpose of registering the company with the State Office for Statistics (Drzavni zavod za statistiku)

Procedure 2. Notarise memorandum of association

Time to complete: 1 day

Cost to complete: HRK 4000

Comment: Cost depends on the number of founders and founding capital. The Notary Public drafts the Deed of Incorporation/ Articles of Association of the prospective company, the Application for the Court Registry and Statement on Acceptance of the Appointment as the Director. On other documents the Notary Public verifies the signatures.

Procedure 3. Deposit incorporation documents at FINA for registration at the Commercial Court

Time to complete: 16 days (1 day for filing, 15 days for processing at the Commercial Court)

Cost to complete: HRK 400 (court fee) + HRK 810 (publication fee)

Comment: All required incorporation documents are submitted to employees of FINA who then submits them to the competent Commercial Court. This procedure can also be done directly at the Commercial Court. The Commercial Court registers the company with the court register in accordance with the Companies Act (Zakon o trgovackim drustvima). Registration is done based on the application form and documents required by law to be submitted. If all the conditions prescribed by law are fulfilled, the Court is obliged to register a company. Before the company is entered into the register, it may operate as "provisional company", upon adoption of the memorandum of association. The company automatically becomes a member of the Chamber of Commerce at registration. In April 2005, by amending the Court Register Act, the documentation requirements were reduced. Three different documents are not longer required; namely, the founder/s of the company do(es) not have to give a statement related to previous unsettled debts. It is also not necessary to submit a certificate of the Tax Office and Health and Pensions Insurance Funds with that respect.

The court forwards the registration data to the Official Gazette (Narodne Novine) of the Republic of Croatia and the daily newspaper (Vjesnik). According to the changes of Company law (effective as of 01 January 2004), it's obligatory only to have the registration data published in the Official Gazette, but the company can choose to publish the incorporation of company on the Vjesnik with a fee of HRK450.

In April 2005, by amending the Court Register Act (Zakon o izmjenama i dopunama Zakona o sudskom registru, Official Gazette 54/05), the statutory term of 15 days for deciding on any company registration, including registration of incorporation in the Court Register, has been introduced. No statutory term has been provided until that time. Further, the amended Act also introduced statutory term of eight days for amending and completing documents, after the court invites to execute such amendment or completion. The intention was to expedite registration of any kind in the Court Register.

Procedure 4. Have official seal made

Time to complete: 1 day

Cost to complete: HRK 150

Comment: Official seals are readily available throughout Croatia at special seal-making shops. A copy of the court decision on registration of incorporation should be presented in order to have the seal made. The seal itself contains the name of the company and the address of the official seat. The seal should be used on all official documents (including invoices, receipts and so on) issued by the company.

Procedure 5. Register with Statistical Office for activity code and matriculation number

Time to complete: 1 day

Cost to complete: HRK 55

Comment: The Company has to obtain Statistical File Number with the State Office for Statistics (Drzavni zavod za statistiku), in a form of "Information on classification of the business entity pursuant to the National Classification of Activities". The Statistical File Number can be obtained personally (in which case the procedure is completed on the same day) or by mail (in which case the procedure takes 2 weeks) or at the HITRO.HR centres. If given the appropriate Special Power of Attorney, FINA registers the company with the State Office for Statistics (Drzavni zavod za statistiku) and obtains the Statistical File Number in a form of "Information on classification of the business entity pursuant to the National Classification of Activities".

Procedure 6. Open a bank account

Time to complete: 2 days

Cost to complete: HRK 175

Comment: The Company has to open the Croatian Kuna (HRK) account with a bank operating in Croatia. One bank enables opening an account at HITRO.HR centres. Whether any fee is charged depends on the particular bank's business policy.

Procedure 7. Obtain Municipal certificate that environment and workplace safety laws are observed (Zupanijski Ured)

Time to complete: 20 days

Cost to complete: HRK 70 (revenue stamp) + HRK 200-300 (cost of each report depending on type of company's business activity)

Comment: Local authorities are entitled to levy a business names tax of HRK180-520 (with a maximum up to HRK 2,000). Zagreb local tax is 18%.

Procedure 8. Register with Porezna uprava (Tax Authority) for VAT and employee income tax withdrawals

Time to complete: 1 day

Cost to complete: no charge

Comment: Upon registration of the company with the Commercial Court Register and fulfilling the obligations with the State Bureau of Statistics, the company needs to register with the competent Tax Authority according to the registered seat of the company. Information is inserted directly into the computer system along with the entry into the register of corporate profit taxpayers. This procedure includes submitting the documents obtained from the Court Register and the State Bureau of Statistics.

The company whose total annual income exceeds HRK 85,000 must register itself as the entity within the VAT system of taxation to the competent Tax Authority, based on the Company's registered seat.

Procedure 9. Register with Croatian Pension Insurance Fund (Hrvatski zavod za mirovinsko osiguranjem, HZMO) or FINA

Time to complete: 1 day

Cost to complete: no charge

Comment: The company needs to register with the Croation Pension Insurance Fund within 15 days of incorporation. Companies must also register its employees within 15 days from the date of employment agreements. This procedure requires submitting certain documents regarding the Company (Decision on the entry of the company in the Commercial Court Register) and filling in official forms. No fees are required. If all the required documents are submitted, this procedure is completed on the same day. It can be done by mail, but first the company must collect the necessary forms from the authority. The procedure may be completed before the competent HZMO office or at the HITRO.HR centres.

Procedure 10. Register with Croatian Health Insurance Fund (Hrvatski zavod za zdravstveno osiguranje, HZZO) or FINA

Time to complete: 1 day

Cost to complete: no charge

Comment: The company needs to register itself with HZZO. The companies also needs to register its employees within 15 days as of the date of the execution of the Employment Agreements. Together with the registration of the company's first employee a company must register itself as a compulsory contributions payer. This procedure also requires submitting certain documents regarding the Company (i.e. Decision on the inscription) and filling in official forms. No fees are required. It can be completed within one day, if all the required documents are submitted. It can be done by mail, but first the company must collect the necessary forms from the authority. The procedure may be completed before the competent HZZO office or with HITRO.HR centres.

FORMS OF BUSINESS ORGANISATION

1. Public limited liability company
2. Partnership
3. Joint stock company

Foreign entities are allowed to establish the following types of companies, either alone or with domestic legal entities: public limited liability companies, limited partnerships, joint stock companies and silent partnerships. Foreign persons may acquire shares and ownership stakes in existing joint stock and limited liability companies.

TAXATION

Corporate tax
Profit tax rate: 20%

Resident companies pay tax on worldwide income, with a credit for foreign tax paid; non-resident companies pay tax only on Croatian-source income. An entity is resident for tax purposes if its legal seat or place of effective management and control is in Croatia. Profit tax is imposed at a flat rate of 20%. Dividends received by resident shareholders are exempt from profit tax.

Individual tax
Progressive rates rising to 45%

Resident individuals pay tax on worldwide income; non-resident individuals pay tax only on Croatian-source income. Income tax is payable at progressive rates rising to 45%, increased by surcharges imposed by the local governments. Dividends received by individuals are exempt from personal income tax. Individual entrepreneurs are subject to the profit tax if total revenue exceeds HRK 2m or if certain other conditions are satisfied.

Capital gains
Not subject to taxation

Capital gains derived by an individual are not subject to taxation in Croatia. However, capital gains derived by a legal entity are subject to profit tax. Gains derived by individuals from the sale of immovable property are subject to a 25% flat rate tax unless the property was owned for more than three years or the taxpayer lived in the property before the sale. Gains on intellectual property rights are also subject to the 25% flat rate tax.

Indirect tax
Standard rate: 22%

Value-added tax (VAT) applies to most transactions. Exports, basic foodstuffs, and certain agricultural and fishing products are zero-rated. Exemptions include housing rents and financial, insurance and medical services.

Registration is compulsory for businesses with an annual turnover above HRK 85,000, and voluntary registration is possible below this amount.

Tax administration and compliance
Tax year: Corporations: accounting year ; Individuals: calendar year

Companies make monthly advance payments of tax, based on the previous year’s tax return. The tax return must be filed within four months of the end of the period. Employment income is taxed by monthly payments. Individuals that receive non-employment income must file a tax return by February 28th following the tax year.

Additional tax information

Withholding taxes: Dividends 0%, Interest 15%, Royalties 15%. Rates may be reduced by double tax treaties.

Tax treaties: Croatia has signed more than 25 double tax treaties, and also applies nine treaties concluded by the former Yugoslavia.

Dividends: Not taxable.

Revenue protection: There are transfer-pricing and thin-capitalisation rules.

Groups: There is no provision for group treatment.

Incentives: Investment incentives; free zones; areas of special national concern; entities carrying out research and development activities; international shipping activities; mountainous areas of Croatia.

Other taxes: Inheritance and gift tax, Firm tax, Advertising tax, Local surcharges, Consumption tax, Public utilities tax, Excise taxes, Tax on transfer of immovable property, Taxes on luxury goods.

Financial Advisors services, Offshore Fund - Know More

admin — Mon Feb 05, 2007 4:42 am

Author: admin

Posted: Mon Feb 05, 2007 4:42 am

Financial Advisors services, Offshore Fund - Know More

Dear members & guests

Due to the continuous marketing approach of our expatriate community by multiple financial planners services company, Allo' Expat has decided to provided you with some usefull imformation on the Expat Offshore Banking issue. Hope you'll invest wisely..... in the future

Financial Advisors - who are they?

Q1 - How do I get the best offshore financial advice?

The best offshore financial advice is probably given by Independent Financial Advisors. Independent financial advisors (or IFA's, as they are sometimes called) advise their clients on savings, investments and pensions. They may also provide Savings Plans for offshore investing to their clients.

When counselling a client, the best offshore financial advisors should complete the following steps:

* Step 1 - collect detailed information about a client's financial circumstances and requirements ? be they for retirement planning, retirement income, expat investment, or another purpose.

* Step 2 - check all the offshore tax havens for the best offshore plans.

* Step 3 - provide impartial advice as to which plan(s) best meet their client's needs (in the form of a written report).

* Step 4 - arrange for a client to buy the chosen offshore plan(s) on the best terms available.

You may want to complete your own research to ensure you know the right questions to ask your advisor.

When all these stages are completed, you can be confident you have received the best offshore financial advice.

Q2 - What is a Certified Financial Advisor?

Financial advisors may need a license to practice, issued by the Financial Services Regulator in their Country. Only these advisors may be called 'Certified Financial Advisors'.

It may be a condition that prospective certified financial advisors show their Regulator that they are:

* competent to advise

* impartial in their advice

* independent of Providers

* covered by professional indemnity insurance.

So it is important to check that your financial advisor is listed under:

* Certified Financial Advisors, licensed to advise in the Country where you live and

* Independent Financial Advisors - advising on a wide range of offshore plans from a full list of providers.

Now you should feel confident you are receiving the best offshore financial advice.

Q3 - How are offshore financial advisors paid?

Independent financial advisors (IFA's) earn their living from commissions they receive from plan providers. This is their income for the offshore financial advice they give.

The commission that advisors (IFAs) receive from offshore financial advice cases may range from hundreds to thousands of dollars.

Good offshore financial advisors should not be influenced by the amount of commission they receive.

Some clients prefer to pay fees to their financial advisors for advice to ensure impartiality. When this occurs offshore financial advisors refund commission received from a plan provider either in cash or as an increased allocation of contributions invested.

Q4 -How do I find a list of Independent Financial Advisors (IFAs)?

Search the web! Try searching using the search words independent financial advisors or certified financial advisors PLUS the name of the Country in which you live.

Personal recommendations are always helpful - ask your friends if they would recommend their offshore financial advisors. Always check that a recommended advisor is both certified and independent.

Offshore Investing - What do that mean

Q1 - What is Offshore Investing or Offshore Investment?

When we talk about Offshore investing plan opportunities it is like the savings plans available in many countries, except these plans:

* Are registered in tax havens and are regulated by their Financial Services Authorities.

* Can be used for investing by non-residents of the tax havens.

* Are sometimes more tax efficient than or have other advantages over domestic savings plans.

Q2 - Why would expatriates choose offshore investing?

Expatriate investment in the savings plans catalogued here and offering offshore investing opprotunities might be appropriate when:

* No local or Home Country tax free regular savings plans are available.

* No local or Home Country tax free lump sum investment plans are available.

* An expatriate is planning to retire to a third country.

If you fit any of these categories of expatriates you should investigate the offshore plans researched by Offshore Boffin and consult your Financial Advisor.

Q3 - Are there other people who might benefit from Offshore Invesment?

Yes. People who are not living abroad might find offshore investment attractive in the following circumstances:

* They have more cash available for savings than can be invested tax free in their resident countries' investment plans (perhaps because the amount they can invest each year is capped).

* They may live in countries which do not have domestic tax free savings plans.

* They live in countries which are not suitable long-term investment environments for political or economic reasons.

* They wish to limit the effects of inheritance tac on their estates.

Q4 - Is there safe offshore investing?

The answer is that All investors should remember that the value of ALL their investments can go down as well as up!

Safe offshore investing is more likely by choosing plans:

* From politically stable tax havens - the quality of tax havens varies.

* From well-regulated tax havens - the tax havens whose savings plans are catalogued here all regulate their financial services companies to avoid 'fly-by-night' companies.

* From reputable investment management and life assurance companies - whilst past performance is not always a guide to the future, the companies whose savings plans are listed here are all well-known names.

* Investing in 'mutual' or 'collective' funds. these funds are based on a simple idea. If a large number of investors pool their savings in - for example - an equity fund, the larger fund can be invested in shares in many companies, spreading each individual's risk.

For expat investment - and others - to be successful the best offshore investment opportunities must be found. For that you'll need a good Financial Advisors.

FX Currency Trading / FX Forex Trading Online - Know More

admin — Mon Feb 05, 2007 4:40 am

Author: admin

Posted: Mon Feb 05, 2007 4:40 am

Forex Trading / FX Trading

Foreign Exchange
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as bull market to better acquaint you with some of the risks and opportunities in the largest and most liquid market in the world.

As an additional aid for those who are new to Forex, there is also a glossary at the bottom of this text which explains some of the terms used in connection with currency trading.

Overview
Foreign exchange , forex or just Forex are all terms used to describe the trading of the world's many currencies. The forex market is the largest market in the world, with trades amounting to more than $1.5 trillion every day. This is more than one hundred times the daily trading on the NYSE (New York Stock Exchange) . Most forex trading is speculative , with only a few percent of market activity representing governments' and companies' fundamental currency conversion needs.

Unlike trading on the stock market, the forex market is not carried out by a central exchange, but on the "interbank" market , which is thought of as an OTC (over the counter ) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the forex market is a 24-hour market.

Trading Forex
A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.). The most commonly traded currencies are the so-called "majors" - EURUSD, USDJPY, USDCHF and GBPUSD.

The most important forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled "immediately" or on the spot. In practice this means within two banking days.

Trading on Margin
Trading on margin means that you can buy and sell assets that represent more value than the capital in your account. Forex trading is usually done with relatively little margin since currency exchange rate fluctuations tend to be less than one or two percent on any given day. To take an example, a margin of 2.0% means you can trade up to $500,000 even though you only have $10,000 in your account. In terms of leverage this corresponds to 50:1, because 50 times $10,000 is $500,000, or put another way, $10,000 is 2.0% of $500.000. Using this much leverage gives you the possibility to make profits very quickly, but there is also a greater risk of incurring large losses and even being completely wiped out. Therefore, it is inadvisable to maximise your leveraging as the risks can be very high. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.

Why trade Forex?

24 hour trading
One of the major advantages of trading forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.
Superior liquidity
The forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and low spreads . The liquidity comes mainly from large and smaller banks that provide liquidity to investors, companies, institutions and other currency market players.
No commissions
The fact that forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis. Trading the "majors" is also cheaper than trading other crosss because of the high level of liquidity. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.
50:1 Leverage
With a minimum account of USD 10,000, for example, you can trade up to USD 500,000. The USD 10,000 is posted on margin as a guarantee for the future performance of your position.
Profit potential in falling markets
Since the market is constantly moving, there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the U.S. dollar gets stronger against the Euro and vice versa. So, if you think the EURUSD will decline (that is, that the Euro will weaken versus the dollar), you would sell EUR now and then later you buy Euro back at a lower price and take your profits. The opposite trading scenario would occur if the EURUSD appreciates .

Important Forex Trading Terms

Spread
The spread is the difference between the price that you can sell currency at ( Bid ) and the price you can buy currency at ( Ask ). The spread on majors is usually 5 pips under normal market conditions. For more information on the trading conditions at Saxo Bank, go to the Account Summary on your Client Station and open the section entitled "Trading Conditions" found in the top right-hand corner of the Account Summary.
Pips
A pip is the smallest unit by which a cross price quote changes. When trading forex you will often hear that there is a 5-pip spread when you trade the majors. This spread is revealed when you compare the bid and the ask price, for example EURUSD is quoted at a bid price of 0.9875 and an ask price of 0.9880. The difference is USD 0.0005, which is equal to 5 "pips". On a contract or position, the value of a pip can easily be calculated. You know that the EURUSD is quoted with four decimals, so all you have to do is the cancel-out the four zeros on the amount you trade and you will have one pip. Thus, on a EURUSD 100,000 contract, one pip is USD 10. On a USDJPY 100,000 contract, one pip is equal to 1000 yen, because USDJPY is quoted with only two decimals.

Trading Scenario - Trading Rising Prices
If you believe that the Euro will strengthen against the dollar you'll want to buy Euro now and sell it back later at a higher price.

You buy Euro	We quote EURUSD at Bid 0.9875 and Ask 0.9880, which means that you can sell 1 Euro for 0.9875 USD or buy 1 Euro for 0.9880 USD. In this example you buy Euro 100,000, at the quote price of 0.9880 (ask price) per Euro.
The market turns	Later the market turns in favour of the Euro and the EURUSD is now quoted at Bid 0.9894 and Ask 0.9899.
Now you want to sell your Euro and get the profit	You sell Euro at a Bid price of 0.9894.
The profit is calculated as follows:	Sell price-buy price x size of trade (0.9894 minus 0.9880) multiplied by 100.000 = $140 Profit (Note that the profit or loss is always expressed in the secondary currency )

Trading Scenario - Trading Falling Prices
If, on the other hand, you believe that the Euro will weaken against the dollar, you'll want to sell EURUSD.

You sell Euro	We quote EURUSD at a Bid price of 0.9875 and Ask price of 0.9880 and you decide to sellEuro 100,000 at a Bid price of 0.9875.
The market moves in your favour	The Euro weakens against the dollar and the EURUSD is now quoted at bid 0.9744 and ask 0.9749.
Now you buy back your Euro	You buy EUR at an ask price of 0.9749.
Your Profit/loss is then	Sell price-buy price x size of trade (0.9875 minus 0.9749) multiplied by 100.000 = $ 1260 Profit

Remember that trading EUR 100,000 as we have done in our examples, does not mean that you have to put up Euro 100,000 yourself. It means that you have to deposit 2.0% of Euro 100,000, which is Euro 2,000 on margin as a guarantee for the future performance of your position.

Further Reading
To see how you can trade the forex market and benefit from our toolbox of information and live quotes, please proceed to our Forex Quick Start found under the Trading menu on the toolbar, under Forex.

Glossary

Appreciation	Anincrease in the value of a currency.
Ask	Theprice at which you can buy. Traders also speak of an ask price,the price requested. This usually indicates the lowest price aseller will accept.
Basecurrency	Thecurrency that the investor buys or sells (i.e. EUR in EURUSD).
Bear	Someonewho believes prices are heading down. A bear market is one inwhich there is a sustained fall in prices and which does not looklike it will recover quickly.
Bid	Theprice at which you can sell. Traders also speak of a bid price,the price offered. This usually indicates the top price apurchaser will pay.
Bid/Ask	TheBid rate is the rate at which you sell. The Ask (or offer) rate isthe rate at which you can buy.
Bull	Someonewho is optimistic about the market. A bull market is characterisedby enthusiastic and sustained buying.
cross	Whentrading currencies, the investor buys one currency againstanother. These two currencies form the cross: for example, EURUSD.
Crossrate	Anexchange rate that is calculated from two other exchange rates.
Depreciation/decline	Afall in the value of a currency.
Exchangerate	Whatone currency is worth in terms of another, for example the $Amight be worth 58 US cents or 70 yen. Currencies traded freely onforeign-exchange markets have a spot rate (applying to tradessettled 'spot', ie, two working days hence) and a forward rate.Countries can determine their exchange rates in a variety of ways:a floating exchange rate system where the currency finds its ownlevel in the market; a crawling or flexible peg system which is acombination of an officially fixed rate and frequent smalladjustments which in theory work against a build-up of speculationabout a revaluation or devaluation; a fixed exchange-rate systemwhere the value of the currency is set by the government and/orthe central bank.
EURUSD	Meansthat you trade EUR against dollars. If you buy Euro you pay indollars and if you sell Euro you receive dollars.
FX,Forex, Foreign Exchange	Allnames for the transaction of one currency for another, e.g. youbuy �100.00 with $150.25 or sell $150.25 for �100.00.
Interbank	Short-term(often overnight) borrowing and lending between banks, as distinctfrom banks' business with their corporate clients or otherfinancial institutions.
Interestrate differential	Theyield spread between two otherwise comparable debt instrumentsdenominated in different currencies.
Leverage(gearing)	Inthis case leverage means that the investor only funds part of theamount traded.
Long	Tobuy.
Longposition	Aposition that increases its value if market prices increase.
Liquid(-ity)	Thecapacity to be converted easily and with minimum loss into cash.Ultra-short-dated treasury notes are an example of a liquidinvestment. A liquid market is one in which there is enoughactivity to satisfy both buyers and sellers.
Margin	Theinitial amount or deposit required when entering into a position.Margin is a guarantee for future performance.
NYSE	Acomputerised system providing brokers with the prices of sharesand securities traded on the New York stock exchange and over thecounter. The quotes are published in real-time.
Openposition	Aposition in a currency that has not yet been offset. For example,if you have bought 100,000 USDJPY, you have an open position inUSDJPY until you offset it by selling 100,000 USDJPY.
"Overthe counter"	Whentrading takes place directly between two parties, rather than onan exchange.
Pips	Apip is the smallest unit by which a cross price quote changes. Soif EURUSD bid is now quoted at 0.9767 and it moves up 2 pips, itwill now be quoted at 0.9769.
Position	Money-market,futures, foreign-exchange and sharemarket traders talk of 'takinga position' which simply means buying or selling one currencycross. 'Position' can also refer to a trader'scash/securities/currencies balance, whether he or she is short ofcash, has money to lend, is overbought or oversold in a currency,etc.
Risk	Tryingto control outcomes to a known or predictable range of gains orlosses. Risk management involves a set of steps which begin with asound understanding of one's business and the exposures or risksthat have to be covered to protect the value of that business.Then an assessment should be made of the types of variables thatcan affect the business and how best to protect against unwelcomeoutcomes. Consideration must also be given to the preferred riskprofile - whether one is risk- averse or fairly aggressive inapproach. This also involves deciding which instruments to use tomanage risk, and whether a natural hedge exists that can be used.Once undertaken, a risk-management strategy should be continuallyassessed for effectiveness and cost.
Secondarycurrency (variable currency or counter currency)	Thecurrency that the investor trades the base currency against (i.e.USD in EURUSD).
Shortposition	Aposition that benefits from a decline in market prices.
Short	Tosell.
Speculative	Buyingand selling in the hope of making a profit, rather than doing sofor some fundamental business-related need.
Spot	ASpot rate is the current market price of an asset.
Spotmarket	Thepart of the market calling for spot settlement of transactions.The precise meaning of 'spot' will depend on local custom for acommodity, security or currency. In the UK, US and Australianforeign-exchange markets, 'spot' means delivery two working dayshence.
Spread	Thedifference between the bid and the ask rate.

Today'sForex News
ForbesBreaking News	BloombergNews
YahooCurrency News	NikkeiNews
GoogleBusiness News	KyodoNews
ReutersFinancial News

Live Updates
Live Forex Quotes and Charts

Forex Market Information

Federal Reserve Banks' "All About the Foreign Exchange Markets in the United States"

Forex Related Sites

Economic Calendars

Central Banks & Regulatory Agencies

News