Forex Certificates: for the foreigners to be legal The term Foreign Exchange Certificates or FEC is commonly known as forex exam certificates. It can be called a kind of currency which is often used by the government as the surrogated currency of the country. But it is applicable only in those countries that have complied to subject their national currencies to exchange controls.
Foreign Exchange Certificates system has been introduced because in many countries it was illegal for the foreigners to keep the currency of that country. Forex certificates could be bought from the tourists’ origin country like one does for traveler’s cheques. In most of the cases, the exchange rate of the forex certificates is higher than the currency of the country itself. This rate is determined by the central bank of that country. The old forex certificates are bought and sold as collectibles. You can visit shopping websites like www.
One of these, of course, is studying for, and clearing, the Forex certification exam, without which you cannot become a licensed Forex trader, anywhere in the country. There is not, as yet, any single standardised test for all Forex traders. It should be noted, however, that personal trading on the foreign exchange market requires no qualifications, or certifications. L statements are the best certifications a Forex broker can possess. This is not to say, however, that proper qualifications go amiss. Forex certification, and aid in getting a good position in a prestigious brokerage. An appreciation of the various changes that occur in the global financial market, a solid knowledge of the development of theory and practice that explains and manages the financial risk created by these changes.
An understanding of the complex nature of Forex management that will enable them to conquer the foreign exchange market. The ability to identify and evaluate the risks attending trading, because of fluctuating exchange rates. The ability to evaluate and apply alternative methods in managing Forex trading – after all, the Forex broker lives by his wit and must always know how to manage an unprecedented situation. The ability to hedge Forex risks by using Forex derivatives, if and when so required. The ability to swiftly make short-term financial decisions – knowing when to invest and when to cut out are equally important in the dealings of the Forex trader, in whose life a minute’s hesitation could make a difference of millions of dollars. The ability to manage interest risk by using Forex derivatives, as also the ability to use bond market instruments and money market instruments. The ability to understand the linkages between the Forex market and the domestic money market, and use those connections to one’s benefit – the successful Forex trader concentrates almost exclusively on the currency of a single nation, closely studying its daily fate, and this knowledge helps him reap great profits.
The FTM course at ICAI, therefore, is probably the best Indian aspirants can hope for. Not only does it give the student a solid theoretical base – among the papers are the features, development and importance of the Forex market – but it also imparts practical skills which every player on the foreign exchange market requires, be he someone playing with their own funds for their own profit, or a certified broker, high-up on the employment ladder, gambling millions on the market. Some Trends FEC is a very popular concept in countries like Myanmar, China and Hong Kong. Sometimes, owing to certain factors, the price of FEC crosses the value of US Dollar. In Myanmar, this happened in January 2010 when Rangoon Foreign Exchange Market marked one US Dollar was equivalent to 1,010 Kyat while existing price of FEC was Kyat 1,025. Difference of 15 units of Kyat was something unprecedented. One of the reason speculated for this was its high demand in current market.