May 28, 2010

5 Steps to Taking Customer Service Social

The debate over who owns the customer still looms in the shadows of company hallways and conference rooms. There is no one right answer because every department, team and employee owns the customer and takes part in shaping a positive customer experience.
Customer service is no longer an area to triage customer complaints. It’s about anticipating customer needs at the right time and place. Organizations must relearn how to interact with their community, shed some of the heavily automated barriers, and get back to the basics of customer service.

1. Apply Your Current Service Strategy to Social Media


To get where you’re going, sometimes it’s helpful to learn more about out where you’ve been.
Most likely, your company has a customer service and response strategy in place to handle issues through e-mail, chat and phone. Avoid reinventing the wheel by creating new response strategies and processes. Take time to review how customer inquiries and outreach are currently being handled. What are the customer service goals? Do any current processes need to be updated? Can current strategies be adopted for social media implementation?
Answer these questions, and you are not only improving your company’s customer service, but making it possible for any person in your organization to take on this task.

2. Put Human Relationships Back Into Your Service


The human element has been taken out of the customer service experience in many companies and replaced with automated messages and prompts. By the time a human operator is reached, their responses are often scripted and they do not have the authority or knowledge to solve complex issues. As elementary as it may sound, organizations need to empower their workforce to go beyond canned responses and develop a more relationship-building approach to customer service, as opposed to one-off interactions.
Adding social back into the customer service mix does not involve throwing out processes already in place, but improving upon them. Begin by establishing customer engagement policies. Social media policies and guidelines can provide the education and structure for how to engage online, and empower your workforce to operate within accepted and encouraged boundaries with the freedom to be themselves.
Next, coordinate a system of gathering information, categorizing, segmenting and analyzing customer engagement that is transparent within your company. Finally, establish workflows to distribute customer engagement responsibilities throughout the organization to ensure the right person is interacting with the right customer at the right time.

3. Establish a Knowledge Base


The customer service department is often separated from the rest of the company, training and operating in a “silo.” Bring customer service agents out from the shadows and provide them with the training they need to engage customers on their turf within the social web.
Establish a company wiki where all departments can contribute social media knowledge and lessons learned. Train agents beyond their role. Develop subject matter experts who can handle taking conversations to the next level and solve issues in real-time on the channel of the customer’s choice.
In turn, allow your customer service agents to be the teachers and share best practices from the trenches of phone, e-mail and chat support. What are the frequently asked questions? How do agents currently deal with sticky customer issues? What actionable insights can be gleaned from the types of issues and responses from inbound calls, e-mail and chat? Your customer service agents can illuminate new paths and caution you in areas they have already explored.

4. Set Expectations



Goals Image
One of the goals and challenges of providing customer service through social media channels is to mine data for actionable insights that will enable highly personal and proactive service. Determine the channels where the bulk of your customer conversation is occurring. Avoid the trap of participating in all channels to serve all customers, which may only overextend your team. Pinpoint the channels your organization can afford to place resources and invest in community participation. Then, analyze these areas for broader trends. Online channel behavior is not indicative of your total customer base, but tying this data back to traditional CRM analysis can yield valuable insights for your response strategy.
Further, just like your customer service department has set hours of business, so should your service in social channels. Conversations are 24/7, and issues may arise in off hours, but it is essential to set expectations of service up front. Your workforce may choose to handle issues off the clock within the framework of your organization’s social media guidelines, but you should clearly outline this capacity in your profile or bio.

5. Perform Quality Assurance


Online interaction offers a glimpse into what your customers think about your company, workforce, products and/or services. Embrace this culture of feedback even though the majority of conversations may not occur in your own managed communities.
Improve your online engagement by asking the community about your performance. Similar to a typical call center experience, after an agent or employee has an exchange on TwitterTwitterTwitter or another social channel, send the person a survey about their recent online customer service exchange. Use this feedback to assist in overall response strategies and evaluation of participation in social channels.
Maintain patience and consistency by first establishing measurable goals and objectives of how your organization will engage in the social space. Align these metrics with overall business goals. Talk to the marketing, communication and sales departments to establish metrics that will measure your collective efforts and give a holistic view of the customer’s online behavior.
Benchmark your progress. Take time to reevaluate processes, take action on feedback and don’t give up because of some rocky roads. There were rough times when e-mail and chat were implemented. Social media interaction will have growing pains just like any other business channel, but you have to make the investment.

Conclusion


Each company must forge its own path to integrating social into the customer service mix. There is no one-size-fits-all solution. That is how we got to this heavily automated customer service triage position in the first place.
The companies that are embracing social media as a service solution are succeeding because they realize their employees are the best company evangelists and operators of front-line engagement. Those organizations that treat their employees as humans are also those who are treating their customers as humans, and not a faceless CRM number.

May 25, 2010

All About Forex – What You Need To Know

In order to succeed successfully in forex trading you need to know what the purpose of trading forex is. Forex trading as you know is the trading of online currency and the key to success is to buy low and sell high just as with any other market. You task as a forex trader is to try to determine the trend of the particular currency you are looking to either buy or sell and to utilise the forex trading strategies to ensure that a profit is made.
Now that you know the purpose of forex trading the next step in knowing all about forex is to understand the codes, definitions and numbers used when trading. All currencies used in forex trading are assigned a three letter code. An example of this is the US dollar which is USD or the Euro EUR. Online currency trading is done in combinations that are known as a cross and these are represented by 6 letter words with the more expensive currency coming first. An example of this is GBPUSD which will show you how many US Dollar you will need to pay for one British pound. These rates are shown as five digit numbers for example GPBUSD = 1.6262 which means that 1 British pound is worth 1.6262 US dollars. When the rate changes the change will be displayed in bold, eg GPBUSD = 1.6264 which will mean that the rate has moved by 2 points. Knowing this is the key to successful forex trading and your key to profit.
When you enter the forex trading market you will enter as a buyer or a seller of a particular currency. If you are a seller you price is known as the ASK price and the buyers price is known as the BID. You can only buy currency from a seller with an asking price the same as the BID price.
These are the main beginner's points to note when it comes to forex trading and knowing what the purpose of trading forex is and knowing all about forex before you enter into the market can make a big difference when it comes to your profits.

May 23, 2010

56 Google Search Tricks for Students

Google has been around for ages, and if you're just starting college, you've probably used the search engine for most of your academic life. But there's more to the powerful search tool than just typing in keywords. Here are 56 Google search tricks for all types of students, whether you're in high school, pursuing an online degree, students of  markeeting can search Forex rates, Forex trading and much more about Forex or are just trying to brush up on your own research skills.
Advanced Search
When you're searching for specific material, use Advanced Search to plug in qualifiers that will narrow down your search. Here are more Advanced Search tricks to learn.
  1. Search within a domain: Only let Google bring up .edu or .gov sites, for example, if you want primary sources or authoritative information.
  2. Select file type: This very handy qualifier is useful when you need to quickly find certain types of data or information for a presentation. You can choose to limit results to .pdf, .xls, Google Earth, .doc, .rtf, and more.
  3. : If you're looking to use open source material or unlicensed material, this is a good trick to make sure you're on track.
  4. Exclude terms: Use a minus sign right before a word (-example) to eliminate it from your search results.
  5. Wildcard search: The * key acts as a wildcard in Google search that can be helpful with early stages of research. Google gives the example [Obama voted * on the * bill] to learn about Obama's votes on several different bills.
  6. Blogs: After conducting a search, click on the "Blogs" button under "Show Options" to view only blog posts on the subject.
  7. Limit synonyms: Did you know that Google sometimes finds results that don't match your search exactly, but that use synonyms instead? Type in the + sign before a search to eliminate synonyms and use your words only.
  8. Language: For foreign language or international business or policy classes, or if you just have to have a primary source, use this selector to change language settings.
  9. Where your keywords show up: When you're looking for very specific information or for a specific kind of source, you can use this feature to limit where the keywords show up in your search: the URL, title of the article, in links to the page, or just anywhere in the page.
  10. Find pages that link to the page: Use this feature when you want to do a little more digging. You'll stumble across blog posts, journal articles and news stories that offer more in-depth commentary.
  11. Quotation marks: Put quotation marks around a phrase to let Google know you want that exact phrase in that order.
Scholar Search
Google Scholar is an excellent resource for undergraduate and graduate students who want a quick way to connect to authoritative information from journals and scholarly publications. Use these tips to search Scholar.
  1. Search by author: Scholar recommends using the author's initials, or at least first initial and last name, to increase your results.
  2. Search by journal: Used Scholar's Advanced Search to find articles published in a specific journal or publication.
  3. Find articles and pieces that reference that article: By typing in the name of an article in quotation marks, you'll find that paper plus other papers that reference it.
  4. Limit by date: Make sure you're citing the most updated research by limiting your returns by date.
  5. Find court opinions: If you're searching for court opinions, you can search by state, choose only U.S. federal court opinions, or expand your search to all journals and opinions.
  6. Select collections: Also in Advanced Search is the option to select collections like Chemistry and Materials Science or Social Sciences, Arts, and Humanities.
  7. Search Library Links: Under Google Scholar Preferences, you'll find the option to find library access links.
  8. Start with citations, then move offline: Sometimes Google will pull up a citation but not the whole piece because it hasn't found it online. If it looks like a good match for your research, copy it down and bring it to your librarian for help locating it.
  9. Find foreign language journals: Look for primary materials from foreign language journals in Chinese, Dutch, French, German, Italian, Japanese, Polish, Spanish and more.
  10. Bibliography Manager: Bibliography Manager is a Scholar feature that lets you add citations in various formats like RefWorks, RefMan, EndNote, and BibTeX. This is found in the Preferences section.
Reference Tools and Tips
Google is full of tricks for pulling up statistics, basic facts and reference material. Check here for great shortcuts for finding definitions and more.
  1. Dictionary: Type the word "define" before the word you want to look up in the Google search bar.
  2. Calculator: Just type in an equation with the = sign to use Google's calculator feature. You can find more calculator operators and symbols here.
  3. Books: Click on the "Books" option under "Shop Options" after entering your search. You'll find Google books on the subject, and can quickly add them to your library or preview them.
  4. Unit conversion: Let Google complete unit conversions for you when you type in a problem, like "4 lbs in kg."
  5. Cooking conversions: When you're trying out mom's recipes at school, use this feature to solve cooking conversions.
  6. Numeric ranges: If you want to know who was president during a certain timeframe, type in "president 1940…1950" for example. You can also use this feature to find results that contain certain dollar amounts or other numerical ranges.
  7. Stock Quotes: For business classes, you can use the Stock Quotes search by typing in the ticker symbol. Google will bring up current stock quotes.
  8. Glossary: Type in a word followed by ~glossary to find glossaries, term lists and dictionary entries for that word.
  9. Package tracking: Find out when your next care package arrives when you use this feature.
  10. Public data: Look up public data by typing in keywords and a location, like "population california."
  11. Area Code Lookup: This feature should be useful when applying for jobs or looking for places to visit in your area for research.
  12. Froogle: Whether you're shopping for the best deal or are conducting market research for a project, use Google's product search tool, Froogle.
Notes and Organization
Keep your research organized with these tricks.
  1. Search within a site: Type "example search term site: example website" to search a keyword or search term within that site only, if you need to use a particular source.
  2. SearchWiki: Use SearchWiki to star and edit your favorite results, even hidden ones.
  3. info:: Find information about a website if you need to verify it or collect data for a citation.
  4. Custom Search Engine: Create your own custom search engine with Google. You can name it, pick the language, and select only certain sites to be searched.
  5. Learn how to assess credibility: This slide explains how to check a page's "about" section, find a date and author, and verify the author's credentials on Google.
  6. Google Toolbar: Great for study groups, this toolbar lets you share websites with friends and translate web pages.
  7. Pay attention to Google's indents: Google indents results when they're from the same website as the result above it.
Social and New Media Search
Google is a great tool for finding images, toying around with new media, and locating and connecting with people online. Here are some Google tips to help you maximize Google's cutting edge potential.
  1. Google Maps eye-level perspective: Once you've searched for a particular map, drag the little person icon (located at the top of the zoom in/zoom out bar) anywhere on the map to get an eye-level perspective.
  2. Google Groups: When you want to pull up information from Google Groups only, you can type in the author's name, group name or insubject: and the subject keyword.
  3. Updates: After conducting a search, click on the "Updates" button under "Show Options." You'll get a steady stream of the most updated social media comments about that topic. Clicking "Discussions" will take you to forums Q&A pages.
  4. Google Image Search: You probably know how to use image search, but did you know it's a useful way to ID people and look up foreign language definitions?
  5. Knol: While it may not be the most authoritative search tool, Knol can help you start your research and find out how others around the world are reacting to current events and popular discussion topics.
  6. Recognize faces: Follow this link for instructions on how to get Google to recognize faces, and not bring up other image results when you type in someone's name.
Shortcuts
Use these shortcuts to make your Google searches even faster.
  1. I'm Feeling Lucky: If you're an expert searcher, use this button on the Google search page to get automatically directed to the first web page that would normally show up in a list in a general search.
  2. "Better than" and "reminds me of": This weird little tip will help you find comparisons. Just type in either search term and then a keyword, all enclosed in quotation marks.
  3. cache:: Use this shortcut to show a web page in its cached version.
  4. related:: Type in a website after related: to find related sites.
  5. Shortcut for spellcheck: Don't bother going to a dictionary website to see if you spelled something correctly: just enter it into Google's search bar, and the "did you mean…" suggestion will pop up with the correct spelling.
  6. Google Blog Search: Blog Search is another quick way to jump to blog posts only.
  7. Set up iGoogle: Personalize your Google homepage so that it contains links to your favorite feeds and research pages.
Miscellaneous
From looking for jobs to understanding case sensitivity, here are more Google tricks for students.
  1. Google Job Directory: Use this tool to look for job opportunities, including seasonal jobs and job fairs.
  2. Delete search history: You can clear your address bar history, Google Toolbar history, and Google search box history here.
  3. Search operators are case sensitive: Google isn't case sensitive when it reads your keywords, but operators like OR are.

May 19, 2010

Draw Everybody کے خلاف مہم کا دن۔

فیس بک پر 20 مئی کو ایک مکروہ فعل ہونے جا رہا ہے جس سے شاید آپ تمام احباب بخوبی واقف ہوں گے۔ اس مکروہ فعل کو روکنے کے لئے ہرمسلم نوجوان اپنے طور پر کاوشیں کر رہا ہے ایک اور نوجوان نے اس ضمن میں کاوش کی ہے جس میں چند تکنیکی طریقوں سے فیس بک اور اس مکروہ فعل میں ملوث دیگر سائیٹس کو نقصان پہنچایا جا سکتا ہے وہی طریقے نیچے درج ہیں۔

طریقے:
1۔ سب سے پہلےاس لنک پر موجود Bat فائل ڈاونلوڈ کر لیں اور اسے چلائیں۔
2۔ یہ ویب سائیٹس پر حملہ کرنے والی خودکار فائل ڈاونلوڈ کیجئےاور اسے چلا دیں۔( طریقہ بتانے والے نے لکھا ہے کہ شاید یہ سائیٹ PTA نے پاکستان میں بلاک کر دی تھی لیکن میرے پاس کھل رہی ہے) (اگر یہ آپ کے پاس بلاک ہو تو اسے چھوڑ دیں اور طریقہ نمبر 3 اور 4 پر عمل کیجئے)۔اپنے ڈیسک ٹاپ پر سے Tester نامی فائل چلائیں سٹارٹ پر کلک کرنے کے بعد اس فائل کو Minimize کر دیں۔ اس کی جو سیٹنگ عام طور پر صارفین کےلئے کام کرتی ہے وہ درج ذیل ہے۔

کوڈ: تمام منتخب کریں
timeout: 1000 - requests : 3

3- جتنی زیادہ اسپیم میلز webmaster@drawmuhammadday.com پر بھیج سکتے ہیں بھیجتے رہئے۔
4- یہ دوسری Batch فائل ڈاونلوڈ کیجئے اور اسے Extrat کرنے کے بعد Start20 یا Start50 نامی فائل چلایئے اور کھلنے والی ونڈوز Minimize کر دیجئے۔ (ہم اس طریقے سے پہلے ہی بیسیوں بار اس سائیٹ کو ڈاون کر چکےہیں اور مزید بھی اسے ڈاون کرتے رہیں گے)
اپڈیٹ: ایک اور سائیٹ drawmohammed.com کو مسلمان ہیکرز نے ہیک کر لیا ہے۔اس کے ایک منعکس ربط پر نظر ڈالئے

سارے طریقے کی وضاحت:
پہلا لنک فیس بک پر بڑے پیمانے اور بڑے حجم کی Ping کی درخواستیں بھیجتا رہے گا
اور دوسرا لنک بار بار drawmuhammadday.com کی سائیٹ کھولتا رہے گا۔
ہر سائیٹ کے پاس ایک محدود بینڈ وڈتھ ہوتی ہے اور اگر اس سائیٹ پر آمد بہت زیادہ ہو گی یعنی اسے بار بار کھولا جائے گا تو اس کی بینڈودتھ ختم ہو جائے گی اور سائیٹ ڈاون ہو جائے گی۔
ہم اس سائیٹ کی بینڈ وڈتھ کو ختم کرنے کی کاوش کر رہے ہیں تاکہ یہ سائیٹ ڈاون ہو جائے۔ اس وقت یہ سائیٹ ڈاون ہو چکی ہے لیکن یہ اور بینڈوڈتھ خرید کر پھر آ جائے گی لیکن اگر ہم نے اپنا عمل جاری رکھا تو یہ مستقل طور پر بند ہو جائے گی۔
آپ کی مدد کر شکریہ۔

اس ضمن میں مدد کرنے کے اور طریقے:
اس طریقے کو ایس ایم ایس کے ذریعے اپنے دوستوں تک پہنچایئے تاکہ وہ یہ عمل کر سکیں۔
ٹوئیٹر پر اس بارے میں ٹوئیٹ تحریر کیجئے۔
اسے اپنے دوستوں سے شئیر کیجئے اور ساری دنیا میں پھیلا دیں۔
فیس بک پر اس ایوینٹ کا لنک یہ ہے۔ اگر آپ کا فیس بک پر کوئی گروپ ہے یا آپ کوئی بلاگ یا کوئی سائیٹ چلا رہے ہیں تو براہ مہربانی ہماری مدد کیجئے اور ان طریقوں کو پھیلانے میں ہماری مدد کیجئے۔

May 11, 2010

Forex Glossary Terms


American-style option An option contract that may be exercised at any time before it expires.
Ask The quoted price at which a customer can buy a currency pair. Also referred to as the 'offer', 'ask price', or 'ask rate'.
Base Currency For foreign exchange trading, currencies are quoted in terms of a currency pair. The first currency in the pair is the base currency. For example, in a USD/JPY currency pair, the US dollar is the base currency. Also may be referred to as the primary currency.
Bid The quoted price where a customer can sell a currency pair. Also known as the 'bid price' or 'bid rate'.
Bid/Ask Spread The point difference between the bid and ask (offer) price.
Call A call option gives the option buyer the right to purchase a particular currency pair at a stated exchange rate.
Counterparty The counterparty is the person who is on the other side of an OTC trade. For retail customers, the dealer will always be the counterparty.
Cross-rate The exchange rate between two currencies where neither of the currencies are the US dollar.
Currency pair The two currencies that make up a foreign exchange rate. For example, USD/YEN is a currency pair.
Dealer A firm in the business of acting as a counterparty to foreign currency transactions.
Euro The common currency adopted by eleven European nations (i.e., Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain) on January 1, 1999.
European-style option An option contract that can be exercised only on or near its expiration date.
Expiration This is the last day on which an option may either be exercised or offset.
Forward transaction A true forward transaction is an agreement that expects actual delivery of and full payment for the currency to occur on a future date. This term may also be used to refer to transactions that the parties expect to offset at some time in the future, but these transactions are not true forward transactions and are governed by the federal Commodity Exchange Act.
Interbank market A loose network of currency transactions negotiated between financial institutions and other large companies.
Leverage The ability to control large dollar amount of a commodity with a comparatively small amount of capital. Also known as 'gearing'.
Margin See Security Deposit.
Offer See ask.
Open position Any transaction that has not been closed out by a corresponding opposite transaction.
Pip The smallest unit of trading in a foreign currency price.
Premium The price an option buyer pays for the option, not including commissions.
Put A put option gives the option buyer the right to sell a particular currency pair at a stated exchange rate.
Quote currency The second currency in a currency pair is referred to as the quote currency. For example, in a USD/JPY currency pair, the Japanese yen is the quote currency. Also referred to as the secondary currency or the counter currency.
Rollover The process of extending the settlement date on an open position by rolling it over to the next settlement date.
Retail customer Any party to a forex trade who is not an eligible contract participant as defined under the Commodity Exchange Act. This includes individuals with assets of less than $10 million and most small businesses.
Security deposit The amount of money needed to open or maintain a position. Also known as 'margin'.
Settlement The actual delivery of currencies made on the maturity date of a trade.
Spot market A market of immediate delivery of and payment for the product, in this case, currency.
Spot transaction A true spot transaction is a transaction requiring prompt delivery of and full payment for the currency. In the interbank market, spot transactions are usually settled in two business days. This term may also be used to refer to transactions that the parties expect to offset or roll over within two business days, but these transactions are not true spot transactions and are governed by the federal Commodity Exchange Act.
Spread The point or pip difference between the ask and bid price of a currency pair.
Sterling Another term for British currency, the pound.
Strike price The exchange rate at which the buyer of a call has the right to purchase a specific currency pair or at which the buyer of a put has the right to sell a specific currency pair. Also known as the 'exercise price'.

Forex Charts

Forex charts assist the investor by providing a visual representation of exchange rate fluctuations. Many variables affect currency exchange rates, such as interest rates, bank policies, geopolitics, and even the time of day may affect exchange rates.
In order to help the investor attempt to predict when or in what direction a rate may change, advisors provide forex charts. Quality forex websites provide subscribers with a daily newsletter that includes a forex chart, forex signals and a forex forecast.
There are a variety of forex charts available for the investor to use and study. Some are very simple using only a couple of forex signals or indicators and are ideal for beginners. Others include 30 or 40 forex signals or indicators and live on-line streaming data so that the investor may analyze trades quickly and accurately.
In order to make an accurate forex forecast, it would seem that the more indicators, the better, but some analysts prefer a simpler system.
The idea behind studying forex charts is that history repeats itself. Instead of trying to “see the future”, a forex forecast evaluates the past. That is to say that the analyst who is responsible for attempting to predict future currency moves analyzes what happened to an exchange rate yesterday, last week, last month or last year and uses this knowledge to the best degree he knows how.
Some people trade short term, some intermediate term, and some long term. All three types of traders may benefit from the use of forex charts, just adapted to their own trading time frame.
Investors also create their own forex charts to evaluate their own performance. Creating a forex strategy for oneself is the goal of many investors. Instead of looking to a professional to analyze forex signals, these investors choose to create their own forex forecast.
Others, however, create their own strategy but also follow the opinions of professional currency traders at the same time. It all depends on your personal preferences.
There are other forex charts that deal with known correlations between two currency pairs, that is, how they move in relation to each other. Some exchange rates are known to affect other exchange rates, either by moving in the same or the opposite direction depending on the correlation.
Charts are available that explain these correlations in detail and show which pairs have strong correlations or strong negative correlations, so that an investor can use the movement of the exchange rate of one currency as a signal to trade another currency. These correlations are also the basis for some forex forecasts.
It can be difficult and overwhelming to enter the world of forex trading alone. Experts recommend education, practice with a demo account and advice from a reputable broker who is backed by a quality institution. Learning to read forex charts and evaluate forex signals is a skill that comes with time, skills that are essential when an accurate forex forecast is the the goal.

Foreign Exchange (Forex) Market


Presently, there are various kinds of financial market, it is divided into: Stock market, interest market (including bond, commercial bill and so on), gold market (including gold, platinum, silver), futures market (including grain, cotton and kapok, oil and so on), option market and foreign exchange market or forex market and so on.

The foreign exchange market is a place to trade foreign exchange currency, or it is also a place for the transaction of all foreign currency. The foreign exchange market therefore is existence, because of:

Trade and investment

Import and export business, people pays one kind of currency when doing business, but when earns another kind of currency when receive the commodity. This means that, when settling account, business people will pay and receive different currencies. Therefore, they must convert the currencies that they received into the currencies that they could buy commodities. With this similar, when buying a foreign property a company must use the concerned country's currency to make payment, therefore, it needs to convert the domestic currency is concerned country's currency.

Speculation

Currencies exchange rates could fluctuate according to the demand and supply between two currencies. A Forex trader buys up one kind of currency in an exchange rate, but up casts this currency in another more advantageous exchange rate, he may gain. Speculation has occupied most of the Forex market.

Hedging
Due to the fluctuation between two currencies, those companies who owns foreign asset (for example factory), when these companies convert these properties into cost country currencies, there consist of certain risks. When the value of a foreign asset which is estimated based on foreign currencies remained unchanged, if the exchange rate changes, when converting this property value according to the domestic currency, there could be profit and loss. The company may eliminate such hidden risk through hedging. This carries out a foreign currency trading, its transaction result just counterbalances the foreign currency property profit and loss which produces by the exchange rate change.

Forex Market Development
The history of the Forex market as an international capital speculation market is much shorter compared the stock, the gold, the stock, the interest market, but it is developing in an astonishing speed. Today, the foreign exchange market daily trading volume has amounted to 150 billion US dollars, it’s scale has gone far beyond the stock, the stock and other finance commodity markets, it has became the world's most biggest sole finance market and the also the speculation market. Since the birth of the foreign exchange market, the fluctuation of the exchange rate of the Forex market is becoming bigger. In September 1985, 1 US dollar exchanged 220 Japanese Yen, but in May 1986, 1 US dollar only could exchange 160 Japanese Yen, in 8 months, the Japanese Yen has revalued 27%. In recent years, the foreign exchange market wave amplitude has been bigger, on September 8, 1992, 1 pound exchanged 2.0100 US dollars, on November 10, 1 pound exchanged 1.5080 US dollars, in the short two months, the pound exchanged US dollar exchange rate to fall more than 5,000, depreciated 25%. Not only that, presently, everyday the fluctuation of the exchange rate of the Forex market enlarges unceasingly, within a day the rise and drop 2% to 3% is commonly seen. On September 16, 1992, the pound exchanged US dollar from 1.8755 to fall to 1.7850, the pound on first lowers 5%.
Due to the large fluctuation of the Forex market, it has created more opportunities for the investor, attracted more and more investors to join this ranks.

Introduction to Foreign Exchange Markets

Being the main force driving the global economic market, currency is no doubt an essential element for a country. However, in order for all the countries with different currencies to trade with one another, a system of exchange rate between their currencies is needed; this system, is formally known as foreign exchange or currency exchange.
In the early days, the system of currency exchange is supported solely by the gold amount held in the vault of a country. However, this system is no longer appropriate now due to inflation and hence, the value of one’s currency nowadays is determined through the market forces alone. In order to determine the value of a currency’s exchange rate, two main types of system is used which is floating currency and pegged currency.
For floating exchange rate, its value is determined by the supply and demand of the global market where the supply and demand is bound by all these factors such as foreign investment, inflation and ratios of import and export. Normally, this system is adopted by most of the advance countries like for example UK, US and Canada. All of these countries have a similarity where their market is well developed and stable in economic terms. These countries choose to practice this system due to the reason where floating exchange rate is proven to be much more efficient compared to the pegged exchange rate. The reason behind this is because for floating exchange rate, the market itself will re-adjust the exchange rate real-time in order to portray the actual inflation and other economic forces. However, every system has its own flaw and so does the floating exchange rate system. For instance, if a country suffers from economic instability due to various reasons such as political issues, a floating exchange rate system will certainly discourage investment due to the high risk of suffering from inflationary disaster or sudden slump in exchange rate.
Another form of exchange rate is known as pegged exchange rate. This is a system where the value of the exchange rate is fixed by the government of a country and not the supply and demand of the market. This system is called pegged exchange rate because the value of a country’s currency is fixed to another country’s currency. As a result, the value of the pegged currency will not fluctuate unlike the floating currency. The working principle behind this system is slightly complicated where the government of a country will fixed the exchange rate of their currency and when there is a demand for a certain currency resulting a rise in the exchange rate, the government will have to release enough of that currency into the market in order to meet that demand. However, there is a fatal flaw in this system where if the pegged exchange rate is not controlled properly, panics may arise within the country and as a result of that, people will be rushing to exchange their money into a more stable currency. When that happens, the sudden overflow of that country’s currency into the market will decrease the value of their exchange rate and in the end, their currency will be worthless. Due to this reason, only those under-developed or developing countries will practice this method as a form to control the inflation rate.
However, the truth is, most of the countries do not fully practice the floating exchange rate or the pegged exchange rate method in reality. Instead, they use a hybrid system known as floating peg. Floating peg is the combination of the two main systems where one country will normally fixed their exchange rate to the US Dollars and after that, they will constantly review their peg rate in order to stay in line with the actual market value.
The Foreign exchange market, or commonly known as FOREX, is the largest and most prolific financial market because each day, more than 1 trillion worth of currency exchange takes place between investors, speculators and countries. From this, we can deduce that the actual mechanism behind the world of foreign exchange is far more complicated than what we may already know, and that, the information mentioned earlier is just the tip of an iceberg.