WHY NON-TRADER LIKE YOU SHOULD UNDERSTAND AND LEARN FOREX MARKET? by Nipon Ekanarongpun

Some friends ask me why I keep on discussing forex and what it is to them? Well, that's is really what I expect from a non-traders to ask. Probably they are not yet educated the relevance of foreign exchange to their lives and how important for them to understand and learn forex market's behavior. I can't blame their finance teachers for sometimes forex subjects can be boring. I am sure most of you won't bother to learn how to understand those forex points that scrolling on your T.V. screens whenever you turn to business channels of your cable. Well hopefully this article could somehow bring enlightenment to every body, especially to those non-traders friends of mine and I wish them to get interested to learn forex market behavior as well.
Wee, change is constant and inevitable so thus your currency's values also change. Forex trading is happening non-stop all over the world and it involves every body including you. Though you are not a trader you still have to learn forex market behavior for every movement of foreign exchange market affects the value of the money that you have on your purse. For all you know, the value of a dollar you keep in your pocket just this morning may not have the same value when you decide to spend it this afternoon. This is because of the fluctuation of foreign exchange rate that is happening in the forex market. Speculators and bidders that which are usually forex investor or broker as well are the one responsible and doing these movements.

Forex traders use the dollar as the universal currency and as a basis where they calculate all the other currencies relative to this leading reserved.

Every one should learn forex market's behavior and rate for this is the indicator of how well your government is taking care of your country's economy. The forex bidding will depends on the strength of a country's economy and how feasible it will be to invest to said country. Mostly likely to be considered are issues such as good governance, national security and safety, the ability of government to fight corruptions, trustworthiness of it's leaders and progress rate of a nation.

If a country failed to show good impression in any of those categories, you can expect the foreign exchange rate of that country's currency to gain low points against the other countries rate. Thus, this may deprive possible foreign investors to put money investment on this country, which may result to lower job opportunities and income to this country's people.

It is also very important to all importers to learn forex market and understand its behavior. As importer, they all have to learn when or where to place a branch, send products and request for remittance of payments.

Any wrong timing decision an importer will make may cause him or her a realized loss on foreign exchange. Supposing an importer from United States send a product to Philippine branch for distribution. The value of that inventory will of course, is accounted and should also be paid in dollars. So if the exchange rate from the time they sent the inventory was $1.00USD is to 48.00Php, a $1,000.00USD worth of products should be collecting 48,000.00Php. But if the importer asks for remittance when the time the Philippine Peso raised its value against the dollar, for example, during the request of remittance of payment for the said inventory the exchange rate was $1USD is to 47.00Php then the $1,000.00 worth of inventory will only be paid of 47,000.00Php instead of 48,000.00Php which brings the 1,000.00Php difference to the importers realized loss due to foreign exchange.

But that could also be turn into the other way around. You see, to learn forex market behavior is not all about learning of its risk but also offers an opportunity for you to earn.