EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is foreign exchange?
The Foreign Exchange is abbreviated Forex, and it refers to the global network of 24/7 currency trading which is the largest and most liquid market in the world economy.
Several of the largest Foreign Exchange markets are in London, New York, Singapore, and Tokyo, but there are other market centers and over-the-counter transactions which are part of what is known as the Forex. All currency exchanged for another currency is considered a Forex transaction, including currency exchanges by tourists at kiosks, but it gets much larger than that.
Futures, forwards, and derivatives on Forex are the primary instruments used, and trillions of dollars-worth of currency are traded on Forex every day, mostly between very large banking institutions. This dwarfs the daily trading volume of all stock exchanges combined.
Currency swaps and interest rate swaps are examples of large transactions, and these might be traded between large institutions or even the central banks of countries.
What if I Want to Retire Abroad?
What are Foreign Currency Effects?
What are Core Mutual Funds?
Core mutual funds represent the middle ground between Value and Growth, but are not the same as Blend funds
Is There Anything Else I Need to Know About Bonds?
The bond market is huge — actually larger than the stock market, if you can believe that — and there are literally...
What is a Coverdell ESA?
A Coverdell ESA is an account which can be used to save for educational expenses. They used to be called Educational IRAs
How Does a 401(k) Work?
Employees can either become participants in a 401(k) by voluntary enrollment or by automatic enrollment with opt-out
When are My IRA Withdrawals Penalty Free?
The surest way to make tax-free withdrawals is to wait until you are older than 59½, but there are a few other ways
What is the “efficient frontier”?
The “Efficient Frontier” is a modern portfolio theory tool, which demonstrates the best possible returns relative to risk
What is Intrinsic Value?
Intrinsic Value is the value of a security which is “built into it.” Both options and stocks have it, but it is different
What is an Accelerated Share Repurchase?
An Accelerated Share Repurchase (ASR) is a method where companies can buy back a significant amount of their shares
What is a Dividends Received Deduction?
A Dividends Received Deduction (DRD) is a tax deduction available to corporations when they are paid dividends from...
What is Gambling Income?
Winnings from gambling activity must be reported as income, and they will be subject to different kinds of taxes