FOREX:Cashflow With Currencies

The Cash Flow Quadrant and Rich Dad trademarks are owned by Rich Dad Operating Company, LLC and any such use is under license.

THE STRATEGIES SHOWN IN THE FOLLOWING SLIDES ARE RISKY AND SHOULD ONLY BE EXECUTED WITH PROPER EDUCATION ANDS INSTRUCTION.

Get to Know the Global Currency Market

• The global currency market is the largest and most liquid market in the world.

• The global currency market is known as:– Foreign Exchange

(Forex)

Understand the Forex Market

• Trade one foreign currency for another.

• Foreign currencies are traded in pairs.– Base Currency– Counter Currency or

“quote currency”• A currency quote

compares…– the relative value of the

base currency vs. quote currency.

Understand a Currency Quote

British Pound & U.S. Dollar

GBP / USD

U.S. Dollar

Quote Currency

British Pound

Base Currency

1 GBP costs $1.51 USD

Currencies fluctuate in fractions of a dollar called A “PIP”

(Price Interest Point)A PIP is the last decimal of a quote.

GBP/USD 1.5186

1.5188 … + 2 PIP’s

1.5184 … - 2 PIP’s

$ 1 . 5 1 8 6

Understand Forex: “PIP’s”

In 1997, over 80% of the world oil market was financed in USD.In 2008, less than 50% of the world oil market was financed in USD.

Dollar Demand

Dollar Supply

Price of Dollars

Commodity Prices

Inflation

Understand the Changing Value of the Dollar

How Big is the Forex Market?

• Over 4 Trillion U.S. Dollars change hands every day.– Forex dwarfs all other financial markets• U.S. Stock Market averages about $153 billion

daily • U.S. Bond Market averages about $800 billion

daily

• Add some perspective– Canada’s annual GDP in 2008• 1.5 trillion• Worlds 10th largest economy

The Financial Tip of a Lifetime

• Where are the current U.S. interest rates?– Federal Funds Rate

is .25

• Which way do you think U.S. interest rates will go from here?

How Do I Get Started?

Take one simple step.

Want More Information?

Sign up for the Forex FREE Webinar