Futures Versus Forex (Foreign Exchange Market) By: Jeff Slokum Todays current futures market is quite unlike the futures of the 19th century. Todays future market is a worldwide one that includes manufactured goods, financial currencies and treasury bonds, and agricultural products. When you speculate on futures it is not the actual good that is speculated upon rather it is the contract for the goods that is traded as value. Every futures contract includes a buyer and a seller. The following is an example of a futures speculation: A farmer agrees to deliver 1000 bushels of corn to a baker at a price of $5.00 a bushel. If the daily price of corn futures falls to $4.00 a bushel, the farmer's account is credited with $1000 ($5.00 - $4.00 X 1000 bushels) and the baker's account is debited by the same amount. Futures accounts are settled every day. Using the above as an example this is how the contract settlement would play out: If the price of corn futures is still at $4.00 the farmer will have made $1000 on the futures contract and the baker will have lost an equal amount. However, the baker can now purchase corn on the open market at $4.00 a bushel - $1000 less than the original contract, so the amount he lost on the futures contract is made up by the cheaper cost of corn. Also, the farmer must sell his corn on the open market for $4.00 a bushel, less than what he anticipated when entering the futures contract, but the profit generated by the futures contract makes up the difference. Speculators profit by daily fluctuations in the futures market by choosing to buy from the seller (buying short) or from the buyer (buying long). The FOREX market has advantages over the futures market. FOREX is the largest financial market in the world. It is a liquid market and stop orders can be executed more easily and with less slippage than in other markets. The FOREX market is open 5 days a week, 24 hours a day. Traders can take advantages of opportunities as they become available. FOREX transactions are usually instantly executed. FOREX transactions are commission free. Brokers earn money on the spread. Some investors feel that due to built in safeguards that FOREX trading is safer than futures trading. About the Author: This article provided courtesy of http://www.forex-report.com

Inside Finance Importance Of Bonding   Let's discuss about the importance of bonding. What actions set up the rest of the dominos to trigger the current hard market? In an attempt to generate more premium, bonding companies used very loose underwriting practices. These loose underwriting guidelines allowed for contractors to be approved for bonds they should not qualify for. The sureties were not only writing bonds for contractors that do not qualify, they also wrote bonds that should not be written even for the best contractors. Maintenance bonds exceeding 5 years were much more common; these days anything over 3 years is pretty much unheard of. To put it simply, the sureties grew too hungry for business and wrote what they should not have and got burnt because of it. Importance Of Critical Illness Cover   One of the fastest growing insurance product is called critical illness cover. Critical illness insurance pays out a tax free lump sum to policy holders if they are diagnosed with a serious illness which is covered by their critical illness plan. Policyholders can use this money in any way that they wish such as for medical care or to cover living costs that they cannot otherwise meet owing to loss of income. Options For Tax Preparation   Taxpayers also have the option of employing an accountant to prepare and file their taxes. Many individuals who have complicated financial records are likely to hire the services of an accountant because accountants are not only trained in tax preparation, but bookkeeping as well. When choosing a tax accountant to do business with taxpayers are encouraged to ask an accountant about their qualifications or relevant business experience. There are two main types of accountants. One is a person that may just have previous accounting experience and then there are certified public accountants (CPAs). Pre Approval - Mortgage   Let's discuss about mortgage pre approval. A pre-approved mortgage is a must in a competitive housing market. It also gives you an idea of what you can afford to buy as you look at houses. Online home loan lenders allow you to compare rates and quickly complete the process. Credit Card Without Credit History   There is a possibility to get the credit card without any credit history. It seems totally unfair but this is the reality. It's just the way things work in the world of consumer credit.