Where to Learn About Foreign Exchange?

The foreign exchange, known as forex for short, is the virtual exchange of international currency. Whenever a transaction occurs that requires changing currencies, whether from US dollars to Japanese yen or any other available currency, the foreign exchange is used. Unlike stock markets, forex trading is done using computers rather than in-person encounters.

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Forex trading is a complicated process that can net high earnings for those well-versed in the technique. Take courses and classes if you’re interested in learning about trading on the foreign exchange.

International Economics Courses

While most colleges don’t have courses dedicated to forex, there are classes you can take that will give you a good understanding of the methods, terminology and history of foreign currency and trade. Look for classes in international or foreign economics.

While forex works with currencies from all over the world, you could also take economics courses from specific countries such as Germany or China if you want to specialize in these areas. International business courses also go a long way to help your understanding of currency trading.

Forex Seminars

Many companies that employ international workers host forex seminars onsite. Contact the Human Resources department of your employer to see if they offer seminars or separate classes that teach how Forex professionals learn to trade. Large financial corporations often offer these seminars on a yearly or biannual basis to keep employees abreast of new developments.

Online Courses and Webinars

Many websites offer courses in trading on the foreign exchange. For instance, Forex.com offers regular webinars on subjects such as introductions to forex and live trading sessions. When you’re perusing possible websites for learning forex, determine if the company is reputable. Read their reviews on the Better Business Bureau website to see feedback before paying for a course.

Finance Books

For those who learn better on their own, pick out a few forex books to learn more about the subject. Books such as Currency Trading for Dummies by Brian Dolan and Forex Revolution by Peter Rosenstreich lay down the basics of forex. For best results, pair this method with college courses or online webinars to increase your knowledge of the foreign exchange.

Certification Exams

Although not required to trade on the foreign exchange, a global financial certification can show off everything that you’ve learned in your courses. For instance, a CFA certification, also known as a chartered financial analyst certification, shows that you have the skills necessary in global finance.

There are many ways in which you can learn more about forex trading. To become an expert in the industry, all you need is the determination to learn more about trading and how the theories and concepts apply to practical uses.

A Rundown of Inflation History in the Last Decade

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The last decade has seen lots of major financial changes occur around the world, including impacts on inflation. To evaluate the history of inflation within the last decade, you must review the Consumer Price Index (CPI) for every year to determine how spending levels have changed. CPI is used to measure price level changes on all services and consumer goods purchased by households over a period of time.

The percentage changes in CPI from year to year are then used to measure the rate of inflation. Review the information below to gain a basic rundown on how to determine inflation history for the last decade.

Understanding CPI

  • CPI originated in the year 1919 by the United States Bureau of Labor Statistics, and is used to measure the amount of spending on consumer goods and services and the fluctuations of prices on the same goods and services.
  • CPI is updated on a monthly basis, so you can review the changes in CPI on a monthly basis, and then use the average CPI for all 12 months of a year to determine the yearly CPI, or the CPI for A decade of Currency Rates and Inflation.
  • CPI is split into two separate groups: CPI-W and CPI-U. CPI-W calculates the amount of money spent on goods and services by clerical and service workers, laborers, and salespersons. CPI-U calculates the spending habits for approximately 80% of all urban households.
  • The CPI currently evaluates the price changes on about 80,000 different consumer goods and services used and purchased by households.
  • The types of household goods and services used to calculate and determine CPI include food and beverages, apparel, housing, transportation, medical care, recreation, education and communication, and other miscellaneous goods and services such as funeral costs and haircuts.
  • Find a source that displays annual CPI numbers to review a decade of currency rates and inflation. Any reliable source will use CPI information provided by the United States Bureau of Labor Statistics.
  • Review the CPI average for every year in the decade to determine the changes in inflation for that specific time period. For example, if you were to measure the changes in inflation from the years 2000 to 2010, you would find that the average inflation rates for each year were 3.38% and 1.64%, respectively.

Determining Inflation Rates for the Last Decade

Examining inflation throughout a decade is an ideal way to measure economic growth and changes; however, your experience with inflation as an individual may be different depending on your methods for spending money.

Which economic tools do you use to measure CPI and inflation for your economy? Share your tips with us in the comments section below.

Currency Terminology to Look Out For