Expatriates Forums in Kenya

International Elearning Business Opportunity

amazingwealth — Sat Dec 06, 2008 1:57 am

Author: amazingwealth

Posted: Sat Dec 06, 2008 1:57 am

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Introducing Angola Trading Company

natachasamami — Sun Sep 14, 2008 8:32 pm

Author: natachasamami

Posted: Sun Sep 14, 2008 8:32 pm

Dear Sirs

JUVANA / JVN Lda group is established in 4 countries: Angola, Mauritania, Portugal and Poland.

Our business covers a wide range of activities, included:
- airline transport,
- trucks/cars,
- medical equipment (injector machine and cartridges for manufacture
flexible dental prosthesis, hospital clothes…)
- appareal & fashion: Spanish jeans fashion with high quality (STOCK
LIQUIDATION –all for 2,5 EUROS!!!!!), party dresses…
- fresh and frozen vegetables,
- feeding,
- drinks,
- brand products (Cocacola, Pringles, Toblerone , Redbull, Fructis Shampoo, corona beer…)
- office equipment,
- construction equipment,
- agriculture equipment (coffee and cocoa beans, vegetables, fruits…)
- breeding cattle / Livestock ( sheep, lamb, goat from Spain…),
- rubber,
- oil,
- electronic products,
- industrial valves ( gate valves, ball valves….)
- granite,
- Meat Halal (beef, lamb, chicken, buffalo…) & NO-Halal,
- ...and much more.

We are offering our services. In our site you will be able to find more
information about our products, addresses, telephone number, faxes….

Looking forward to hear from you soon please accept our best regards
Natacha Guimaraes
Product Manager
Skype : natacha116 (Portugal, Lisbon)

Spanish Jeans STOCK LIQUIDATION

natachasamami — Sun Sep 14, 2008 8:31 pm

Author: natachasamami

Posted: Sun Sep 14, 2008 8:31 pm

Dear Sir

JUVANA / JVN Lda group is established in 4 countries: Angola, Mauritania, Portugal and Poland.

Our business covers a wide range of activities, included: General Trading.

At this moment we are in Stock Liquidation of a High Cuality spanish
jeans, with ISO certificate, brand Cowest. Each pieces FOR ONLY 2,5
Euros EX-Spain.

They are differents sizes, colours, types... You can get more information about us and about this jeans in our website : (look in Stock).

The offer is only valid up to the end of the stock. They are 5200 pieces in the stock, and came in boxes of 20units (that make a total
of 260boxes).

In our website you can see photos of some models of this season. The
liquidation is for the seasons before, but the design is in the same line.

We can offer as well party and wedding dresses, and soon we will
expose in our website other articles that are available.

Thank you for your attention.
Best regards
Natacha Guimaraes
Product Manager
Skype: natacha116 (Portugal, Lisboa)

Livestock - Live Sheep, lamb and goat from Spain

natachasamami — Sun Sep 14, 2008 8:31 pm

Author: natachasamami

Posted: Sun Sep 14, 2008 8:31 pm

Dear Sir

The live sheep that we offer is named Sheep Manchega, is a high quality sheep, with a very good quality of meat.

We have for meat proporse (old sheep) and for breeding proporse (young sheep).

The price is to be negociated.

We can also offer other brands of sheeps, much more econmical. If you wish, you tell me your price idea and we can inform you about the animal that we can offer at your reference price.

Please visit our site to see some photos of our sheeps, and also other cattle and products that we can offer. The site is: ( you should look in Stock)

Thank you very much for your attention
Best regards
Natacha Guimaraes
Product Manager
Skype: natacha116 (Portugal, Lisbon)

DOING BUSINESS IN KENYA / KENYA BUSINESS GUIDE

Kenya Info — Tue Mar 13, 2007 9:21 am

Author: Kenya Info

Posted: Tue Mar 13, 2007 9:21 am

DOING BUSINESS IN KENYA

STARTING A BUSINESS

STANDARDIZED COMPANY
Legal Form: Private Corporation
Minimum Capital Requirement: 0
City: Nairobi

Registration Requirements:

Procedure 1. Obtain approval for the company name from the Registrar of Companies

Time to complete: 3 days

Cost to complete: KES 100 per name reservation

Comment: The reservation lasts 30 days but can be renewed for a similar period.

Procedure 2. Stamp the Memorandum and Articles and a Statement of the Nominal Capital

Time to complete: 14 days

Cost to complete: 1% of nominal capital + KES 2,005, stamp duty on Memorandum and Articles of Association

Comment: With effect from 1st January 2005 the Kenya Revenue Authority (KRA) took over the collection of stamp duty from the Ministry of Lands and Housing. As an administrative requirement the KRA now requires the Personal Identification Numbers of the parties on whose behalf documents to be stamped with duty are submitted. Documents have to be first assessed by the stamp duty office before payment can be processed by the KRA's specified banks. The process has lengthened to about 2 weeks as the Stamp Duty office has to receive confirmation of payment from the bank after clearance of funds. Bank handling charges of Shs 100 per transaction are also payable.

Procedure 3*. Pay stamp duty at bank

Time to complete: 1 day (included in the previous procedure)

Cost to complete: KES 100 bank commission

Procedure 4. Declaration of Compliance (Form 208) is signed before a Commissioner of Oaths / notary public

Time to complete: 1 day

Cost to complete: KES 200

Comment: The Advocate incorporating is required to sign a Company Form 208 which accompanies the documents to be submitted to the Registrar of Companies. This form is a Declaration of Compliance with the requirements of the Companies Act.

Procedure 5. File deed and details with the Registrar of Companies at the Attorney General's Chambers in Nairobi

Time to complete: 21 days

Cost to complete: see comments

Comment: Submit stamped Memorandum and Articles of Association, particulars of directors and secretary (Form 201), statement of capital, notice of proposed registered office (Form 203), declaration of compliance (Form 208) and the prescribed registration fees. Registration fees are: Kshs2,200 for the first Kshs100,000 and Kshs120 for every Kshs20,000 after the first Kshs.100,000 subject to a maximum of Kshs.60,000. Filing fee for 3 forms is Kshs.600. It takes 20-25 days to get the approval.

Procedure 6. Register with the Tax Department for a PIN

Time to complete: 1 day

Cost to complete: no charge

Comment: The PIN is valid also for VAT, PAYE, and local service tax. File certificate of registration and a copy of the Memorandum and Articles of Association.

Procedure 7. Register with the VAT office

Time to complete: 1 day

Cost to complete: no charge

Comment: VAT office is in the Times Tower building.

Procedure 8. Apply for a business permit

Time to complete: 1 day

Cost to complete: see comments

Comment: The fee varies by type of business, number of employees and size of business premise. Fee is payable to Nairobi City Council, Licensing Department. The City Council will issue business permit. Cost: Kshs 5,000 (medium trader, shop or retail service from 5-20 employees and/or premises from 50-300 sqm fair location)

Procedure 9. Apply for a trading / operational license

Time to complete: 7 days

Cost to complete: no charge

Comment: The trade license is free, issued by the Ministry of Trade on production of a copy of the business permit. The requirement for obtaining a trade license from the Ministry is often overlooked because the City Council is enforcing the issue of business permits. Nevertheless, the required for trade licenses is still in the statute.

Procedure 10. Register with the National Social Security Fund (NSSF)

Time to complete: 1 day

Cost to complete: no charge

Comment: NSSF provides the employee with a lump-sum retirement benefit. Historically, the rate of return paid by the State is considerably less than that achieved by private schemes but participation is mandatory. The employer pays a standard contribution of approximately 1% of salary subject to a maximum of Shs.400 per month. One half of the contribution is deductible from the employee's salary. The precise amount of the contribution (where less than the maximum) is determined by reference to salary bands.

Procedure 11. Register with the National Hospital Insurance Fund (NHIF)

Time to complete: 1 day

Cost to complete: no charge

Comment: The employee contributes a fixed sum to the NHIF, which must be deducted by the employer from the employees' salary. The maximum contribution is Shs.320 per month. The contributions are used to offset the costs of medical treatment but they only cover a fraction of actual costs. Hence, most companies put in place medical insurance cover for employees.

Procedure 12. Register for PAYE

Time to complete: 1 day

Cost to complete: no charge

Procedure 13. Make a company seal after a certificate of incorporation has been issued

Time to complete: 2 days

Cost to complete: KES 2500

Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).

FORMS OF BUSINESS ORGANISATION

The principal forms of business enterprises in Kenya are:
· Limited Company - private or public
· Branch of a foreign company
· Partnership
· Sole Proprietorship
· Joint Venture
· Co-operative Society

Limited Companies

The provisions concerning limited companies are contained in the Kenyan Companies Act of 1962 which is modelled closely on the UK Companies Act 1948 (with amendments).

Limited companies may be public or private. A private company is prohibited from inviting the general public to subscribe for its shares, it cannot have more than 50 members, and its shares are not freely transferable between members. A public company as its name suggests, may offer its shares to the general public. There is no maximum number of members and its shares are freely transferable. Such a company is the equivalent of a corporation in many other countries.

Partnerships

The law relating to partnerships is largely contained in the Partnership Act 1962. A partnership is restricted to a maximum of 20 persons, each of whom is jointly and separately liable for all debts incurred. If these numbers are exceeded the partnership must be registered under the Companies Act. A partnership may be formed by any kind of agreement. This need not be formal but is usually in writing. If the partnership does not trade under the names of the partners, these names must be registered under the Registration of the Business Names Act 1962. Partnership agreements do not have to be filed in any public registry nor do partnership financial statements have to be published. Partnerships are not required by law to appoint auditors although many larger partnerships do so in practice.

The death, resignation or retirement of any individual partner dissolves a partnership unless, as is usual, the partnership agreement provides otherwise.

A limited partnership may be formed. The same maximum number of partners applies but at least one partner must be a general partner who is liable for all the debts of the firm without a limit. A limited partner cannot take part in the management. Limited partnerships are governed by the Limited Partnership Act 1962 and under the Act, are subject to registration with the Registrar of Companies.

Branches of Foreign Companies

A company incorporated outside Kenya may carry on business in Kenya through a branch. In order to establish a branch the following documents and details must be submitted to the Registrar of Companies:
· a certified copy of the company's own Memorandum and Articles of Association or equivalent constitution documents
· a list containing the names, addresses, nationalities and occupation of its directors and company secretary
· a statement of existing mortgages and charges created by the company in Kenya, if any
· the names and addresses of one or more Kenyan residents who are authorised to accept legal notices on the company's behalf
· the address of the company's registered or principal office

Financial statements of a branch must be delivered to the Registrar of Companies. Under the Companies Act, there is no requirement for those financial statements to be audited but, in practice, an audit is usually performed since the tax authorities are reluctant to accept unaudited branch accounts for tax purposes.

Joint Ventures

Joint ventures with Government-owned agencies are encouraged. These may be conducted as a partnership or sometimes as limited companies in which all the parties are shareholders.

TAXATION

The resident corporate income tax rate tax in 2002 was 30%, reduced from 32.5% in 1998, and the rate for branches of foreign companies was 37.5%, down from 40%. The withholding tax on dividends payable to residents was 5%, down from 7.5%. On dividend income and interest income (except on bearer instruments) that is payable to non-residents, the withholding tax rates were 10% and 15%, respectively. These rates may be reduced or eliminated by the terms double tax treaties, which Kenya has with the United Kingdom, Germany, Denmark, Norway, and Sweden, Canada, India and Zambia. In 2002 the capital gains tax had been suspended but there was a compensating tax on companies which paid dividends out of untaxed profits. Various tax incentives are offered to companies which develop and/or operate in export processing zones (EPZs).

Income tax rates on individuals are graduated, rising to a top marginal rate of 30%, down from 35% in 1996. There is also a hospital insurance tax.

Since 1990, a value-added tax (VAT) has been applied to most goods and services. The standard rate was reduced from 16% to 15% as of June 1999, and the reduced rate 13% eliminated except for restaurants and hotel accommodations. Some domestic supplies of power are exempt from VAT. There are also local authority service taxes, and a hospital insurance tax.

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.

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