Money is indispensable and non-negotiable commodity in life. It dictates the flow of human living in the world. Without money, life is often difficult for human beings to live. It helps to create freedom. Having said so much, people do not understand the fact that money is only important to run life without any problems. It is not life. Many forget this fact and run behind money and hence miss their present life. What is the point in wasting age at which one can enjoy? It is important to earn money and also to spend it wisely. Some people earn for the sake of saving and some earn for spending. Some are ready to spend the important hours of their life working. It is indeed right that all the things we use in our lives have monetary value directly or indirectly. Money can buy health and can keep one away from poverty. Money was not invented until the 18th century. Earlier than this century, goods were exchanged for goods. For example: people exchanged sugar for wheat and maize for barley. This way they give what they have in excess to get what they want. Before money was even invented, barter system was prominent all over the world. Later when money was invented, people had to get their goods for money.
Money was not in the form as it is now. It started from coin age were brass, gold and silver coins were used to buy goods and supplies. Later paper was used to make currency. This made money spread all over the world. Though each country followed separate currencies. People became greedy as to hide their supplies and during food shortage they sold them for unaffordable prices. This is when money became important. Money crept its way within poor and rich people. People started to know the importance of money. People from the same family started to work to earn more and support their families. Money became important to them than their families. This is when people started to move to various places for work leaving their families behind. Money is needed for hassle free normal life, but it is not the only thing to worry about. People should understand the fact that money is essential for living but relationships are more important. Working in abroad and sending money to the family is growing nowadays. They convert their currency of the country they are working for to the currency of the country they are sending to. Through this they are able to send what their family wants in spite of the distance.
Foreign exchange market
As mentioned earlier, people working in various countries send in their savings through currency to their families by converting them. This conversion is what is called foreign exchange. It is also used by business people who want to convert a huge quantity of one currency to huge quantity of another currency. It all happens with biding. Foreign exchange also called as Forex shortly revolves around this conversion and biding. It is a market in which currencies are traded. The market exceeds a sum of 5 trillion a day and continues to be the most liquid of financial markets globally. Geographically London has the largest share of the foreign market with nearly 40 percent of all the transactions taking place. It has the strongest infrastructure which is mainly the reason for the expansion of forex market in London. Forex is the backbone of international trade and investment payments globally. In forex market, currencies have certain bids which hare fixed. These bids do change depending on the economic status of the countries. These bid rates are fixed by the national banks of the countries. It is critical to support imports and exports as it is important to know the demand for goods and supplies. Without the ability to trade and do business with different currencies, global economic status would suffer. Investors also use forex markets. Those who are working with diversification benefits need to buy and sell currencies, foreign assets and securities. Forex happens over-the-counter. Trading takes place between the dealers and investors. In order to involve in forex and trade, one has to gain knowledge on it. Knowledge in forex before trading helps in increasing the potential for success, mentoring, benefitting from rewards. There is no unified yet centrally specified area for forex. Forex starts from national banks. These banks do the negotiations with respect to the currency biding which then is followed by smaller banks and then large corporate companies. Forex can also be used by private and individuals through non-bank foreign exchange market which offers currency exchange and international payments.
People who are involved in forex 24/7 can get the help of forex simulation. This simulator is a program or application that duplicates some or all the features of stock and shares, so the investor can practice on investment payments and international currencies without financial risk. The simulator also has biddings on certain currencies which keep changing now and then. Investors can contact dealers through simulators and can have a rough idea on the currency biding and market revenue. There are also many games that are related to forex and money trading. Playing them will make investors confident on their biding and money. They can also learn more about the potential stock traders and future stock brokers and how to stock. One way in which the investors can learn forex better, is through forex simulator. It is more like a prototype which can be used for learning and practicing purposes. It is good for beginners, but it is also essential to get in touch with real dealers and other investors to know their mark, as sometimes forex simulator can be misleading giving the beginners inaccurate information. It is better to have a good knowledge on them before using them. There are many forex companies in India, one of which is the western Union money transfer. These units are located in airports and locations of tourist’s attraction so that it is easy for them to exchange currencies.