Business 1

Forex

2008-11-20T07:17:00.000-08:00

Forex

A forex scam is any trading scheme used to defraud individual traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market. Currency trading "has become the fraud du jour," according to Michael Dunn of the U.S. Commodity Futures Trading Commission. But "the market has long been plagued by swindlers preying on the gullible," according to the New York Times . "The average individual foreign-exchange-trading victim loses about $15,000, according to CFTC records" according to The Wall Street Journal. The North American Securities Administrators Association says that "off-exchange forex trading by retail investors is at best extremely risky, and at worst, outright fraud."“In a typical case, investors may be promised tens of thousands of dollars in profits in just a few weeks or months, with an initial investment of only $5,000. Often, the investor’s money is never actually placed in the market through a legitimate dealer, but simply diverted – stolen – for the personal benefit of the con artists.”In August, 2008 the CFTC set up a special task force to deal with growing foreign exchange fraud.The forex market is a zero-sum game , meaning that whatever one trader gains, another loses, except that brokerage commissions and other transaction costs are subtracted from the results of all traders, technically making forex a "negative-sum" game.These scams might include churning of customer accounts for the purpose of generating commissions, selling software that is supposed to guide the customer to large profits, improperly managed "managed accounts", false advertising, Ponzi schemes and outright fraud. It also refers to any retail forex broker who indicates that trading foreign exchange is a low risk, high profit investment. The U.S. Commodity Futures Trading Commission (CFTC), which loosely regulates the foreign exchange market in the United States, has noted an increase in the amount of unscrupulous activity in the non-bank foreign exchange industry.An official of the National Futures Association was quoted as saying, "Retail forex trading has increased dramatically over the past few years. Unfortunately, the amount of forex fraud has also increased dramatically..." Between 2001 and 2006 the U.S. Commodity Futures Trading Commission has prosecuted more than 80 cases involving the defrauding of more than 23,000 customers who lost $350 million. From 2001 to 2007, about 26,000 people lost $460 million in forex frauds. CNN quoted Godfried De Vidts, President of the Financial Markets Association, a European body, as saying, "Banks have a duty to protect their customers and they should make sure customers understand what they are doing. Now if people go online, on non-bank portals, how is this control being done?"

Not beating the marketThe foreign exchange market is a zero sum game in which there are many experienced well-capitalized professional traders (e.g. working for banks) who can devote their attention full time to trading. An inexperienced retail trader will have a significant information disadvantage compared to these traders.Although it is possible for a few experts to successfully arbitrage the market for an unusually large return, this does not mean that a larger number could earn the same returns even given the same tools, techniques and data sources.

This is because the arbitrages are essentially drawn from a pool of finite size; although information about how to capture arbitrages is a nonrival good, the arbritrages themselves are a rival good. (To draw an analogy, the total amount of buried treasure on an island is the same, regardless of how many treasure hunters have bought copies of a treasure map.)Retail traders are - almost by definition - undercapitalized. Thus they are subject to the problem of gambler's ruin. In a fair game (one with no information advantages) between two players that continues until one trader goes bankrupt, the player with the lower amount of capital has a higher probability of going bankrupt first. Since the retail speculator is effectively playing against the market as a whole - which has nearly infinite capital - he will almost certainly go bankrupt.The retail trader always pays the bid/ask spread which makes his odds of winning less than those of a fair game. Additional costs may include margin interest, or if a spot position is kept open for more than one day the trade may be "resettled" each day, each time costing the full bid/ask spread.According to the Wall Street Journal (Currency Markets Draw Speculation, Fraud July 26, 2005) "Even people running the trading shops warn clients against trying to time the market. 'If 15% of day traders are profitable,' says Drew Niv, chief executive of FXCM, 'I'd be surprised.' Paul Belogour, the Managing Director of a Boston based retail forex trader, was quoted by the Financial Times as saying, "Trading foreign exchange is an excellent way for investors to find out how tough the markets really are. But I say to customers: if this is money you have worked hard for – that you cannot afford to lose – never, never invest in foreign exchange."The use of high leverageBy offering high leverage, the market maker encourages traders to trade extremely large positions. This increases the trading volume cleared by the market maker and increases his profits, but increases the risk that the trader will receive a margin call. While professional currency dealers (banks, hedge funds) never use more than 10:1 leverage, retail clients are generally offered leverage between 50:1 and 200:1A self-regulating body for the foreign exchange market, the National Futures Association, warns traders in a forex training presentation of the risk in trading currency. “As stated at the beginning of this program, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all customers. The only funds that should ever be used to speculate in foreign currency trading, or any type of highly speculative investment, are funds that represent risk capital; in other words, funds you can afford to lose without affecting your financial situation.

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2008-11-15T18:26:00.000-08:00

Education

Education encompasses both the teaching and learning of knowledge, proper conduct, and technical competency. It thus focuses on the cultivation of skills, trades or professions, as well as mental, moral and aesthetic development.[1] Formal education consists of systematic instruction, teaching and training by professional teachers. This consists of the application of pedagogy and the development of curricula. In a liberal education tradition, teachers draw on many different disciplines for their lessons, including psychology, philosophy, linguistics, biology, and sociology. Teachers in specialized professions such as astrophysics, law, or zoology may teach only in a narrow area, usually as professors at institutions of higher learning. There is much specialist instruction in fields of trade for those who want specific skills, such as required to be a pilot, for example. Finally, there is an array of educational opportunity in the informal sphere- for this reason; society subsidizes institutions such as museums and libraries. Informal education also includes knowledge and skills learned and refined during the course of life, including education that comes from experience in practicing a profession. The right to education has been described as a fundamental human right: since 1952, Article 2 of the first Protocol to the European Convention on Human Rights obliges all signatory parties to guarantee the right to education. At world level, the United Nations' International Covenant on Economic, Social and Cultural Rights of 1966 guarantees this right under its Article 13.

Higher education Main article: Higher education

The University of Cambridge is an institute of higher learning. Higher education, also called tertiary, third stage, or post secondary education, is the non-compulsory educational level that follows the completion of a school providing a secondary education, such as a high school, secondary school, or gymnasium[citation needed]. Tertiary education is normally taken to include undergraduate and postgraduate education, as well as vocational education and training. Colleges and universities are the main institutions that provide tertiary education. Collectively, these are sometimes known as tertiary institutions. Tertiary education generally results in the receipt of certificates, diplomas, or academic degrees. Higher education includes teaching, research and social services activities of universities, and within the realm of teaching, it includes both the undergraduate level (sometimes referred to as tertiary education) and the graduate (or postgraduate) level (sometimes referred to as graduate school). Higher education in that country generally involves work towards a degree-level or foundation degree qualification. In most developed countries a high proportion of the population (up to 50%) now enter higher education at some time in their lives. Higher education is therefore very important to national economies, both as a significant industry in its own right, and as a source of trained and educated personnel for the rest of the economy.[citation needed]

Alternative education
Main article: Alternative education Alternative education, also known as non-traditional education or educational alternative, is a broad term that may be used to refer to all forms of education outside of traditional education (for all age groups and levels of education). This may include not only forms of education designed for students with special needs (ranging from teenage pregnancy to intellectual disability), but also forms of education designed for a general audience and employing alternative educational philosophies and methods. Alternatives of the latter type are often the result of education reform and are rooted in various philosophies that are commonly fundamentally different from those of traditional compulsory education. While some have strong political, scholarly, or philosophical orientations, others are more informal associations of teachers and students dissatisfied with certain aspects of traditional education[citation needed]. These alternatives, which include charter schools, alternative schools, independent schools, and home-based learning vary widely, but often emphasize the value of small class size, close relationships between students and teachers, and a sense of community.

Indigenous education
Increasingly, the inclusion of indigenous models of education (methods and content) as an alternative within the scope of formal and non-formal education systems, has come to represent a significant factor contributing to the success of those members of indigenous communities who choose to access these systems, both as students/learners and as teachers/instructors. As an educational method, the inclusion of indigenous ways of knowing, learning, instructing, teaching and training, has been viewed by many critical and postmodern scholars as important for ensuring that students/learners and teachers/instructors (whether indigenous or non-indigenous) are able to benefit from education in a culturally sensitive manner that draws upon, utilizes, promotes and enhances awareness of indigenous traditions. For indigenous students/learners and teachers/instructors, the inclusion of these methods often enhances educational effectiveness, success and learning outcomes by providing education that adheres to their own inherent perspectives, experiences and worldview. For non-indigenous students/learners and teachers/instructors, education using such methods often has the effect of raising awareness of the individual traditions and collective experience of surrounding indigenous communities and peoples, thereby promoting greater respect for and appreciation of the cultural realities of these communities and peoples. In terms of educational content, the inclusion of indigenous knowledge, traditions, perspectives, worldviews and conceptions within curricula, instructional materials and textbooks/coursebooks has been shown to have largely the same effects as the inclusion of indigenous methods in education. Indigenous students/learners and teachers/instructors benefit from enhanced academic effectiveness, success and learning outcomes, while non-indigenous students/learners and teachers/instructors often have greater awareness, respect, and appreciation for indigenous communities and peoples in consequence of the content that is shared during the course of educational pursuits. A prime example of how indigenous methods and content can be used to promote the above outcomes is demonstrated within higher education in Canada. Due to certain jurisdictions' focus on enhancing academic success for Aboriginal learners and promoting the values of multiculturalism in society, the inclusion of indigenous methods and content in education is often seen as an important obligation and duty of both governmental and educational authorities.

Emotional/Human education
As academic education is more and more the norm and standard, companies and individuals are looking less at normal education as to what is deemed a good solid educated person/worker. Most well-educated and successful entrepreneurs have high communication skills with humanistic and warm "emotional intelligence". In certain places, especially in the United States, the term alternative may largely refer to forms of education catering to "at risk" students, as it is, for example, in this definition drafted by the Massachusetts Department of Education.