Expatriates Forums in Moldova

TRADING ON LINE Coaching in Moldova

Miky — Fri May 01, 2009 7:28 pm

Author: Miky

Posted: Fri May 01, 2009 7:28 pm

We have solid experience in ONE to ONE Trading On Line coaching and our coaching sessions are also on-line, via the internet.

We use a state-of-the-art remote-learning platform in which is possible to share audio, video, trading platform and desktop documents like trading charts.
In this way you can learn how to trade better and better from your home or office. Coaching plans can be completely personalized to reach concrete individual goals.
We are looking for private investors in Moldova interested in improving their Trading On Line results, on a pay per sessions basis.
michele.castorina@t-online.hu

SELL iPod touch video 80gb,60gb,30gb, Ipod nano 2GB,4gb,8gb

mobyleswistel — Thu Feb 19, 2009 12:13 am

Author: mobyleswistel

Posted: Thu Feb 19, 2009 12:13 am

We sell all major brandnew of Mobile phones, Apple Iphone,Itouch,HTC TyTN II,Mp3 player and Video Games consoles, Notebooks and Laptops at a good competitive bestprice. for more information you are free free to contact us.

Sell Sony Plasma TV, LCD Monitor, HDTV, LCD Flat Panel

mobyleswistel — Thu Feb 19, 2009 12:01 am

Author: mobyleswistel

Posted: Thu Feb 19, 2009 12:01 am

We sell all major brandnew of Mobile phones, Apple Iphone,Itouch,HTC TyTN II,Mp3 player and Video Games consoles, Notebooks and Laptops at a good competitive bestprice. for more information you are free free to contact us.

Sell New HTC Touch 3G,HTC Touch Diamond blue angel etc

mobyleswistel — Wed Feb 18, 2009 11:57 pm

Author: mobyleswistel

Posted: Wed Feb 18, 2009 11:57 pm

We sell all major brandnew of Mobile phones, Apple Iphone,Itouch,HTC TyTN II,Mp3 player and Video Games consoles, Notebooks and Laptops at a good competitive bestprice. for more information you are free free to contact us.

SELL SONY PLAYSTATION 3 60gb & 80gb (PAL/NTSC),SONY PSP

mobyleswistel — Wed Feb 18, 2009 11:53 pm

Author: mobyleswistel

Posted: Wed Feb 18, 2009 11:53 pm

We sell all major brandnew of Mobile phones, Apple Iphone,Itouch,HTC TyTN II,Mp3 player and Video Games consoles, Notebooks and Laptops at a good competitive bestprice. for more information you are free free to contact us.

SELL NOKIA N95 8gb,Nokia Nseries,N800, N90 and N70,N73,E70

mobyleswistel — Wed Feb 18, 2009 11:51 pm

Author: mobyleswistel

Posted: Wed Feb 18, 2009 11:51 pm

We sell all major brandnew of Mobile phones, Apple Iphone,Itouch,HTC TyTN II,Mp3 player and Video Games consoles, Notebooks and Laptops at a good competitive bestprice. for more information you are free free to contact us.

Sell Apple IPHONE iTOUCH 3G,16gb,8gb,4gb,3G 16gb,8gb

mobyleswistel — Wed Feb 18, 2009 11:43 pm

Author: mobyleswistel

Posted: Wed Feb 18, 2009 11:43 pm

We sell all major brandnew of Mobile phones, Apple Iphone,Itouch,HTC TyTN II,Mp3 player and Video Games consoles, Notebooks and Laptops at a good competitive bestprice. for more information you are free free to contact us.

join our unique investment club

dutchjobs — Sun Nov 30, 2008 7:42 pm

Author: dutchjobs

Posted: Sun Nov 30, 2008 7:42 pm

Dear reader,

In these times of economic and financial crisis, there are alway great opportunities for making a very good return on investment capital.

We are looking for serious members to expand our investment community within Eastern Europe and the rest of the world.

Want to know more?

Just send us an email if you would like to have more information or give us a call if you wish to make an appointment.
0032 497 545587

Kind regards,
Bodhi
independent Bridge member

DOING BUSINESS IN MOLDOVA / MOLDOVA BUSINESS GUIDE

Moldova Info — Thu May 10, 2007 11:03 am

Author: Moldova Info

Posted: Thu May 10, 2007 11:03 am

DOING BUSINESS IN MOLDOVA

STARTING A BUSINESS

STANDARDIZED COMPANY
Legal Form: Limited Liability Company (HH)
Minimum Capital Requirement: 5,400
City: Chisinau

Registration Requirements:

Procedure 1. File all the documents with the State Registration Chamber for the registration of the company; Obtain IDNO number

Time to complete: 15 days

Cost to complete: MDL 574 + 0.5%*capital + MDL 250 stamp fee

Comment: File Registration applications; name and address of the founders and the directors (copies of the passport/identity card); Documents confirming the legal address of the company (right establishing documents: ownership certificate, contracts of lease or guarantee of the future lease or other); documents confirming the payment of state taxes and fees. As a rule, all other documents are filled in by Registration Chamber employees.

Pursuant to the new order of registration of the companies, the Minutes of the founders' meeting; The Charter and the Contract on incorporation of the company; shall be drafted by the State Registration Chamber, but the founders can revise them before signing and ask for additional provisions to be included. They also shall provide the Chamber with the information regarding the share capital of the company, list of activities and other additional information that the founders may wish to have included into the constitutive acts. Lately the State Registration Chamber has also combined the Charter and the Contract on incorporation into one document named Constitutive Act, which is issued to the company upon the completion of the registration procedure, instead of the Charter and the Contract on incorporation. The Constitutive Act can be authenticated by the State Registrar, who is the State Registration Chamber representative, if all founders or their representatives will sign the Act in presence of the State Registrar. The Constitutive Act after being drafted by the Chamber may also be signed by the founders outside the Chamber, in such case the constitutive act shall be authenticated by the notary and then submitted to the Chamber. State Registration Chamber will verify the company name with the National Terminology Centre on its conformity with the legislation on languages.

The state taxes and fees include:
i. the state fee for registration - 250 lei
ii. the fee for preparation (editing) of the incorporation documents - 108 lei
iii. the fee for consultation - 27 lei
iv. the fee for verification of the name - 39 lei
iv.v. the fee for certification of the signatures by the state registrar - 36 lei
v.vi. the fee for statistic codes - 12 lei
vi.vii. the fee for publication - 54 lei
vii.viii. the fee for the extract (for permanent bank account) - 36 lei
viii.ix. stamp fee - 0.5% of the capital
ix.x. fee for the official stamp of the company - 352700 lei.

The State Registration Chamber also makes up the registration with the Department of Statistics for a Statistical Code.

The term of registration may be reduced up to:
1-4 working. 3 days with additional payment of 358 lei;
4 days with additional payment of 268.5 lei
5-9 working days with additional payment of 179 lei

The State Registration Chamber issues to the founders the Registration Form and this Form shall be registered and signed with the local Fiscal Inspectorate. The State Registration Chamber performs this procedure independently; therefore this procedure shall be completed by the founders only if the State Registration Chamber requires to do so.

As a step to implement the initiative to create a unique "State Register of legal entities", the government introduced a unique state identification number for enterprises and organisations on 14 July 2003. All enterprises and organisations are required to apply for the unique state identification number (IDNO) at the territorial offices of the State Registration Chamber.

In order to obtain the IDNO the following documents shall be presented by already registered companies: state registration certificate, certificate of the fiscal code attribution, certificate of the statistical code attribution. All the newly registering enterprises companies receive the IDNO upon registration. It was expected that beginning with the January 1, 2005, all enterprises should have the new Registration Certificate and should only use IDNO instead.

Procedure 2*. Open a temporary bank account and deposit at least 40% of the registered capital of the company; pay the registration fee

Time to complete: 1 day, included in the previous procedure

Cost to complete: no charge

Procedure 3*. Obtain the Registration Certificate and Constitutive Act; obtain an official stamp from the Department of Information Technologies

Time to complete: 1 day, included in the procedure 1

Cost to complete: no additional charge (these costs are covered by the charges listed in Procedure 1)

Comment: The Company files to the Registrar the certificate from the bank confirming the transfer by the founders of their capital contributions into the temporary bank account. Company files the order for the company stamp at the same time with the submittal of documents for registration. Subsequently, the stamp shall be issued on the day of company registration, together with the registration certificate and other documents.

Procedure 4. Register with the local Fiscal Inspectorates of the Ministry of Finance for VAT

Time to complete: 1-3 days

Cost to complete: no charge

Comment: Only the company that intends to sell VAT taxable goods and/or services for an amount exceeding 200 000 lei during 12 consecutive months is obliged to register with the local Fiscal Inspectorate in order to obtain VAT code. VAT code is different from the IDNO.

Procedure 5. Register the company with the Statistics Department of Republic of Moldova

Time to complete: 1 day

Cost to complete: MDL 12

Comment: After the registration is completed, the company shall register with the Statistics Department of Moldova. The Department will attribute to the company the Statistics Code according to the activities established in the Constitutive Act of the company as to be practiced by the company, as well as the territorial location of the company.

Procedure 6. A notary certifies the company's bank account signature cards required for the conversion of bank account

Time to complete: 1 day

Cost to complete: MDL 90-150

Comment: This procedure consists in the certification of the signature sample cards for the bank. The cards must contain in a mandatory fashion the signatures of the director and of the chief-accountant.

Procedure 7. Convert the company's temporary bank account to a permanent one

Time to complete: 1 day

Cost to complete: no charge

Comment: Need to present to the bank the notary-certified copies of the Certificate of Registration, incorporation documents, excerpt for the bank confirming the director, notarised signature cards, and a copy of the enterprise's stamp. The notary certification of the whole package of documents costs up to 180 lei, based on the calculation of 6 lei per one page.

Procedure 8. Obtain the permission from the State Inspectorate of Labour

Time to complete: 7 days

Cost to complete: no charge

Comment: In accordance with the Decree of the Government of the Republic of Moldova # 75 dated February 2, 1999 all the economic agents are obliged to obtain the permission of the Sate Inspectorate of Labour. The permission is issued on the basis of an expert's decision. All the costs and expenses of the expert's examination are born by the economic agent (the amount of the stated costs and expenses is not stable and may very from one company to another); in order to obtain such permissions, at least one employee of the new company - usually the manager or the human resource specialist - must attend special paid training courses for a few weeks). As a matter of practice, the newly registered company starts operations without this permissions, and obtains it in due course.

Procedure 9. Register the company with the Social Security Fund

Time to complete: 1 day

Cost to complete: no charge

Comment: Starting with 2003 every company should receive the individual social security number for each employee. The Law of the Republic of Moldova #383-XV as of November 11, 2004 "On the State Social Security Budget 2005" states that in order to follow this requirement the company should fill in the questionnaire for each employee and to present it along with the copy of a passport to the National Social Security Fund within 10 days from the moment of registration or from the moment of signing the labour contract. Later on, the company should present the report every 3 months to the National Social Security Fund.

Procedure 10. Register the company with the National Medical Insurance Company

Time to complete: 2 days

Cost to complete: no charge

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

FORMS OF BUSINESS ORGANISATION

1. Joint stock company
2. Limited liability company
3. Joint venture

Joint stock companies and limited liability companies are the most common forms of business organisation for investors in Moldova. Shareholders have limited liability and Moldovan legislation with regard to these types of entities is well developed.

TAXATION

Corporate tax
Main rate: 15%

Resident companies are taxed on their worldwide income; non-resident companies are taxed only on their Moldovan-source income. An entity is treated as resident if it is established or managed in Moldova. The corporate tax rate is 15%. Dividends paid to resident entities are subject to a final withholding tax of 15%. Profits of partnership are allocated to the partners for tax purposes.

Individual tax
Progressive rates to 20%

Resident individuals are taxed on their worldwide income; non-residents are taxed only on their Moldovan-source income. An individual is resident in Moldova if that individual permanently resides there or is present for 183 days in a calendar year. Income is taxed at progressive rates up to a top rate of 20% on annual income exceeding MDL 21,000. Resident individuals are exempt from tax on interest from bank deposits and on dividends from Moldovan companies.

Capital gains
Taxed as income

Capital gains of companies are taxed as ordinary income, but only 50% of the gain is taken into account for tax purposes. Capital gains derived by individuals are treated as income, but a deduction (equal to MDL 10,000 for each year after 1997) is available on the disposition of a private residence provided the individual lived in the dwelling for at least three years before the alienation.

Indirect tax
VAT standard rate: 20%

Value-added tax (VAT) applies to most transactions at a standard rate of 20%. A lower rate of 8% applies to certain basic food products, and a 5% rate applies to supplies of natural and liquefied gas. The zero rate applies to exports, electricity for private consumption and construction of housing financed by a mortgage. Exemptions include dwellings, educational services, certain financial services, services in relation to intellectual property, books and periodicals.

Registration is compulsory for entities with a taxable turnover exceeding MDL 200,000.

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

Companies with tax liabilities above a minimum level must pay tax in four quarterly instalments during the year, with each instalment calculated as 25% of the liability for the current year or previous year. A self-assessment return is due by March 31st following the end of the tax year. Employment income of individuals is taxed by withholding. Individuals with other types of income must submit a self-assessment tax return by March 31st following the year-end. A final tax payment is due with the return.

Additional tax information

Withholding taxes: Dividends and Interest 10%, Royalties 15%. Rates may be reduced by an applicable tax treaty.

Tax treaties: Moldova has concluded more than 28 tax treaties.

Dividends: Dividends paid to resident legal entities are subject to a withholding tax of 15%.

Revenue protection: There are thin-capitalisation rules.

Groups: There is no provision for group taxation.

Incentives: Small businesses; farm enterprises; free-trade zones; investors.

Other taxes: Area development levy, Customs duties, Excise duty, Land tax, Levy on border crossing (as from January 1st 2006), Natural resources tax, Private tax, Tax on buildings.

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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