Expatriates Forums in Poland

looking for auditing or finance related jobs

zaabdoel — Wed Apr 01, 2009 10:39 am

Author: zaabdoel

Posted: Wed Apr 01, 2009 10:39 am

My solid background as a financial auditor and officer, financial consultant, partner in the solar panel business, and assistant controller for a multimillion European Program, has allowed me to hone my considerable skills that can be effectively utilized by your organization and makes me feel confident of the skill I can bring to your opening.

In addition of pursuing a financial job with more IT aspects included and for example the alignment between financial and with IT (systems), I completed the IT auditing study in December 2003. Because of the IT auditing study and consultancy work, my background also includes/knowledge of:
 Full spectrum of services, including strategic planning, S.W.O.T. analyses, cost-benefit analyses and financial reporting, Computer skills ( including Oracle Financial), project-, risk-, and performance management, working in teams as well as working solely, managing people, Analytical skills

 continuing pursuit of increased knowledge in finance and IT field

 Comprehensive consultation experience
At last, I traveled a lot to SE Asia (including living in Singapore and Malaysia for a few months), Canada and the US. I just came back from Spain, Alicante, where I worked and lived for about 2 years.

I prefer contract/freelance positions within IT or financial auditing preferably risk-, project- and performance management, but I will also consider other financial positions. Furthermore I prefer to work internationally or a job with international assignments. Available: 16th of March.

Hope to hear from you soon.

Quality English Publisher seeks reps

Safia — Wed Jan 21, 2009 7:20 am

Author: Safia

Posted: Wed Jan 21, 2009 7:20 am

Good

Welcome to join the China Import and Export Fair(Canton Fai)

Safia — Wed Jan 21, 2009 7:19 am

Author: Safia

Posted: Wed Jan 21, 2009 7:19 am

Nice

work in the netherlands

Safia — Wed Jan 21, 2009 7:18 am

Author: Safia

Posted: Wed Jan 21, 2009 7:18 am

Helpful info

join our unique investment club

Safia — Wed Jan 21, 2009 7:17 am

Author: Safia

Posted: Wed Jan 21, 2009 7:17 am

Nice

WORK IN POLAND / POLAND EMPLOYMENT GUIDE

Poland Info — Wed May 23, 2007 9:42 am

Author: Poland Info

Posted: Wed May 23, 2007 9:42 am

WORK IN POLAND

Poland has the largest economy in Central Europe, but also has very high unemployment, although this is falling. European Union (EU) membership should bring increased stability, but it is still currently an emerging economy.

The main challenges for the economy are high unemployment and a high budget deficit. In March 2006 unemployment was at 17.8%, although it is anticipated that this will drop to under 17% by the end of 2006. Unemployment is particularly high among the youngest and oldest workers. In the fourth quarter of 2005 the unemployment rate among people up to the age of 24 was given as 34.6% (Polish Ministry of Economy).

Polish wages are still generally very low and the cost of living is rising, but despite most Poles having relatively low incomes, they can still enjoy financial security and a stable lifestyle.

There are still relatively few expatriates working in Poland, and opportunities for the employment of foreign nationals in the country are very limited, unless they are posted there by a foreign company with a base in Poland. There is a need for business specialists and consultants in the work place. There are usually opportunities available for English language teachers in Poland.

If you do wish to look for work in Poland, you can find details of job vacancies in the Polish national and local press, and via the websites of Polish employment agencies.

EU nationals are eligible to use the Polish state employment service to look for work. To do so they need to register with an administrative district labour office as unemployed or as a jobseeker, providing qualification certificates and evidence of identity.

Daily Polish newspapers with regular job vacancy supplements include Gazeta Wyborcza, Rzeczpospolita and Zycie Warszawy. These mainly advertise jobs for managers, professional and office staff. Local newspapers are useful sources of information on vacancies for skilled and unskilled manual workers.

DOING BUSINESS IN POLAND / POLAND BUSINESS GUIDE

Poland Info — Wed May 23, 2007 8:27 am

Author: Poland Info

Posted: Wed May 23, 2007 8:27 am

DOING BUSINESS IN POLAND

STARTING A BUSINESS

STANDARDIZED COMPANY
Legal Form: Sp z.o.o. - Limited Liability Company
Minimum Capital Requirement: 50,000
City: Warsaw

Registration Requirements:

Procedure 1. Notarise company agreement

Time to complete: 1 day

Cost to complete: PLN 1,010 notary fee + 0.5% over PLN 60,000 + 22% on top of notary's fee (VAT) + 0.5% of share capital (civil law transaction tax)

Comment: Maximum notary cost cannot exceed six times the average monthly wage (i.e. 2,289.57 PLN x 6 = 13,737,42 PLN) plus VAT and civil transaction tax This agreement could be standard if the company has only one shareholder (or a shareholder with definite majority of votes at the Shareholders' Meeting), no need to be written by a lawyer. It must be then notarised. For setting up whole company (tax, social insurance, etc. included), a lawyer would normally ask for PLN5000 up to PLN25,000.

Procedure 2. Obtain "REGON" number (statistical number)

Time to complete: 1 day

Cost to complete: no charge

Comment: It takes half an hour if there is no queue. REGON - Rejestr urzędowy podmiotów Gospodarki Narodowej - Official Register of Entities of National Economy) is obtained at local statistical office (US - Urząd Statystyczny). The Regon number should be obtained prior to registration of the Company in the National Court Register within 14 days as from the date of the notarial deed.

Procedure 3. Deposit paid-in capital at the bank

Time to complete: 1 day

Cost to complete: no charge

Comment: To open a bank account a limited liability company has to provide the bank with the Founding Deed and a REGON certificate.

Procedure 4. File Articles of Association registration date, registration number with the Tax Office; Obtain tax identification number (NIP)

Time to complete: 24 days

Cost to complete: no charge

Comment: In order to obtain tax identification number (NIP), the Company must provide the following documents: notarial deed on setting up thereof, company's excerpt from the register, confirmation of assignment of "REGON" (statistical number), list of all agreements for bank account, agreement for office rental (or another document confirming legal title to the office/building where the company's activity shall be conducted), book-keeping agreement (if concluded). Some tax offices may request additional documentation (depending on the tax office).

Once the Company obtains a confirmation of its registration with the Tax Office it may benefit from VAT deductions and issue invoices for its contractors. Therefore it is strongly advised that the Company be registered with the Tax Office as soon as possible. The number is usually issued within a month.

Procedure 5*. Register for VAT

Time to complete: 1 day (simultaneous with procedure 4)

Cost to complete: PLN 152

Comment: The Company is required to register for the purposes of VAT by the date of conducting for the first time the business activity covered by VAT. The registration should be submitted with the Tax Office as referred to in Procedure 4. The Company is required to provide information concerning: its business name and legal form, "REGON" (statistical number), date of commencement of its business activity, address of its registered office.

If the Company is planning to conduct foreign trade activities within territory of European Union in the future, it would also be obliged to register as a VAT EU taxpayer. The Company should submit an application for registration as the VAT EU taxpayer before commencing its foreign trade activity within European Union. However, it should be noted that prior to registration as the VAT EU taxpayer, the Company should be registered as a regular VAT taxpayer.

Procedure 6*. Register in the Register of Entrepreneurs maintained by the National Court Register

Time to complete: 14 days (simultaneous with procedure 4)

Cost to complete: PLN 1,500 (PLN1000, registration fee + PLN500 publication cost)

Comment: Documents required for registration: (i) Articles of Association of the Company, (ii) representation of all Management Board members that the contributions towards the share capital have been made by all shareholders in full, (iii) shareholders' list, (iv) notarised specimens signature of all Management Board members (v) document confirming appointment of the members of corporate bodies (i.e. Management Board and supervisory body, if any).

At the Court the company obtains number and date of registration. The announcement on the company's registration is published in "Monitor Sadowy i Gospodarczy" court gazette. The text of announcement is prepared and forwarded for publication ex officio by the court.

On 14 November 2003 (with effect as of 1 January 2004) an amendment of Law on Economic Activity and some other laws was adopted by the Polish Parliament. In particular, the company may file together with its application to register the company at the State Court Register (Court of Registration) (i) an application to be registered in the register of economic entities (REGON) maintained by the State Statistical Office and (ii) application to receive a tax identification number (NIP) given by tax authorities. The court of registration is ex officio obliged to send the REGON application to the relevant State Statistical Office and NIP application to the tax office indicated by the applicant immediately and not later than 3 days after the entry to the court register has been made.

However, it is still advised for all companies to have their REGON and NIP applications filed separately as such bundled filing proves more time-consuming and, in practice, the Company may not carry on its activity prior to the registration in National Court Register and further obtaining of REGON and NIP number. In addition the court decides when subject documents are to be sent to the relevant authorities, which in some instances may result in unexpected extensions of the whole registration procedure. As a result, most companies choose to file the REGON and NIP applications directly.

New time limits have been introduced - the judge is required to issue a decision within 14 days; in case any hindrance from registration occurs the judge is obliged to issue a decisions within 7 days from the date such hindrance has been removed; in case the examination of the application requires an open hearing this has to be done not later than within a month. However, the time limit is not strictly binding.

On 21 August 2004, the Economic Freedom Act came into force. The Act foresees electronic registration, as well as the establishment of a "one-stop shop". It will allow entrepreneurs to apply for the NIP and REGON, and register with Social Insurance Office (ZUS) at one office. These systems are planned to be in place by early 2007.

Procedure 7. File amending application for "REGON" number with the Statistical Office

Time to complete: 1 day

Cost to complete: no charge

Comment: Once the company is registered with the National Court Register, it is required to file with the Statistical Office an "amending application" to update the company data (delete "in organization" next to the company name). Obtaining REGON number and NIP (tax) number before registration at court is not obligatory.

Procedure 8. Register the company at The National Sanitary Inspection

Time to complete: 1 day

Cost to complete: no charge

Comment: "Panstwowa Inspekcja Sanitarna" (National Sanitary Inspection) will be informed within 30 days of the commencement of business.

Procedure 9. Register the company at the local Social Insurance Office (ZUS) for social insurance payments

Time to complete: 1 day

Cost to complete: no charge

Comment: All social insurance and similar registrations are performed in ZUS (Zaklad Ubezpieczen Spolecznych). Company has 7 days to register after hiring the first worker. Along with application, the Company should, inter alia, attach NIP number and REGON number decisions.

Although it is not required by law to have NIP number at the time of registration for ZUS, in practice the software system used in ZUS does not accept entries without NIP number.

Procedure 10. Register the company at The National Work Inspection

Time to complete: 1 day

Cost to complete: no charge

Comment: "Panstwowa Inspekcja Pracy" (National Work Inspection) will be informed within 30 days of the commencement of business (the State Labour Inspectorate takes the "commencement of business" to mean the date on which the first employee was hired), the company must inform the relevant labour inspector in writing of the location, type and scope of business.

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

FORMS OF BUSINESS ORGANISATION

1. Joint stock companies
2. Limited liability companies

Companies can take a variety of forms, including the joint stock company, limited liability company, limited joint stock partnership, registered partnership, limited partnership, professional partnership, sole proprietorship and civil-law partnership.

Foreign investors enjoy national treatment if they are permanent residents or nationals of a country where reciprocal treatment is provided to Polish firms.

The financial centre is the capital, Warsaw. Major banks are also located in Poznan, Katowice, Krakow and other large cities.

TAXATION

Corporate tax
Main rate: 19%

Resident companies are taxed on their worldwide income; non-resident companies are taxed only on income sourced in Poland. A company is resident in Poland if its legal seat or management office is situated in Poland. Tax is imposed at a rate of 19%.

Dividends paid to corporate and individual resident shareholders are subject to a withholding tax of 19%, unless the dividends are paid between members of a tax group or the dividends qualify for exemption under the EC Parent-Subsidiary Directive. A corporate group may be formed where there is a 95% shareholding, subject to certain conditions.

Individual tax
Progressive rates up to 40%

Under the Polish Personal Income Tax (PIT) Law, individuals may be subject to limited or unlimited tax liability in Poland. The tax status of an individual depends on whether the individual has a permanent residence in Poland (a place at which the person stays with an intention to remain permanently). Polish residents are taxed on worldwide income, whereas individuals with non-resident status are taxed only on Polish-source income.

Generally, personal income tax is levied at progressive rates of 19%, 30% and 40%. A flat rate tax of 19% applies to certain types of income such as dividends and interest. Under some conditions, an individual may elect to be taxed at a flat rate of 19% on business income.

Capital gains
Gains on disposal of business assets are taxed as income

Capital gains of companies and individuals from the disposal of business assets are taxed as income. Capital gains of individuals from the sale of shares are taxed at a 19% rate (separately from income). Income derived by an individual on the sale of a dwelling, other building or land not used for business purposes is subject to a 10% rate. Such gains may be exempt from taxation if the proceeds are used to purchase another asset within two years or if the sale takes place five years after the purchase or creation of the asset.

Indirect tax
VAT standard rate: 22% ; Lower rates: 7%, 3%

Value-added tax (VAT) applies to most transactions (supplies of goods and services) at a standard rate of 22%. Items subject to the reduced rate of 7% include food, books and newspapers, services relating to agriculture and forestry, and some healthcare products. A 3% rate applies to agricultural products and some unprocessed food products. Exports are zero-rated. Exemptions include financial services and services related to science, the development of technology (in certain cases) and certain cultural services.

Registration is compulsory for businesses with annual turnover above €10,000. Taxpayers from outside the EU that register for VAT in Poland must appoint a tax representative.

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

Companies make monthly advance tax payments, based either on the estimated liability for the current year or on one-twelfth of the liability disclosed in a return filed in the year preceding the tax year (simplified method). An annual tax return is due within three months of the end of the tax year, and a final payment of tax is due by the same date.

Employment income of individuals is taxed by withholding. Individuals earning other types of income may be required to make monthly advance payments, with a final payment due after the end of the tax year. The tax return is due by April 30th following the end of the tax year. VAT returns are due by the 25th day of the month (or quarter in some cases) following each subsequent month (or quarter respectively).

Additional tax information

Withholding taxes: Dividends 19%, Interest and Royalties 20% (for non-residents). Rates for non-residents may be reduced or eliminated under tax treaties and EC directives.

Tax treaties: Poland has concluded more than 80 tax treaties.

Dividends: Dividends are subject to a 19% final withholding tax.

Revenue protection: There is transfer-pricing, thin-capitalisation legislation and an anti-avoidance rule concerning mergers and divisions.

Groups: There is provision for group taxation.

Incentives: There are special economic zones.

Other taxes: Agricultural/forestry taxes, Import duties, Inheritance and gift tax, Local urban property tax, Market duty, Stamp duty, Civil law transactions tax, Excise duty, Transportation 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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