Investing in Bitcoin: Is there still time or is it already too late?

It would not be Bitcoin without all the drama and unprecedented growth in particular. The question is whether this seemingly infinite growth could last forever. Probably not, although being a deflationary currency, there is some potential for it. 

In reality, the thing that sets the price of Bitcoin more than any technical factor is the demand. Neither forks nor fees matter. What does matter is the large number of people interested in Bitcoin, which can be illustrated by the daily Coinbase user growth of about 100 000 new accounts. Therefore, it is no wonder that Bitcoin’s value reaches $7000.

The rapid growth of Bitcoin

Many people think that the recent growth rate is at its peak. However, this perception is false. Bitcoin experienced the steepest increase in value in 2011 after being introduced to crypto exchanges. 

In a few months, its price skyrocketed 350 times (from $0,10 to $35) and later fell to $2. The second bubble swelled in 2013 when Bitcoin’s value soared 100 times (from $11 to $1100). The next year its price decreased by 80% to roughly $200.




And we are getting to the year of 2017. At the beginning of the year, the exchange rate fluctuated around $1000. Over the course of the year, it has risen “only” about ten times. Although the current situation brings about media and public attention, the past growth of Bitcoin was significantly steeper.

Traditional investment using Bitcoin exchange

The concept of investing in Bitcoin is simple. You make the purchase, wait until its value rises and finally sell the coins for profit. Bitcoins and other cryptocurrencies can be bought through bitcoinmats or Bitcoin exchanges. 

Coinmate is a popular trading platform in the many European countries that allows its users to buy and sell Bitcoins using Pound, dollar or euro. One of the foreign exchanges worth mentioning is Coinbase where you can get an additional $10 when your investment in Bitcoin, Ethereum or Litecoin exceeds $100.

Bitcoin keeps surpassing its own records. Though it is true that a growth has been repeatedly accompanied by a steep decline, Bitcoin has always found its way back and reached its all-time high. 

Accordingly, anyone in a long-term possession of Bitcoin has profited from this development. However, in times of decreasing value, many people panic and start selling their Bitcoins which they later regret.

Main disadvantages of a long-term investment

There are a few disadvantages of Bitcoin purchase and long-term possession. Firstly, you have to endure and get through the times when Bitcoin value drops. Secondly, you have to make sure your digital coins are safely stored to minimize the risk of cyber-theft. 

However, if you decide to trade cryptocurrencies using CFD, you do not have to be worried about any of that. Another great thing about CFD is that it allows you to make money even when the Bitcoin price is going down.

CFD is a trading tool offering the possibility to profit from cryptocurrencies without really buying them. CFD can be traded using digital platforms of CFD brokers. The licensed broker Plus500 enables you to trade ten different cryptocurrencies including Bitcoin. 

It supports the 21 languages and has very tight spreads. Furthermore, the broker provides a free demo account that you can access and try a risk-free trading.

The FAQs of Currency Trading

Exchange Money Conversion to Foreign Currency (Photo credit: epSos.de)

Trading currency in the foreign exchange market is literally a trillion dollar business. And it used to be only large financial institutions and very wealthy people could take part in the trade. Now, with the advent of the internet, the average person can trade on the market with the click of a button. If you’re interested in getting started in trading currency, here are some frequently asked questions that might help you get going.

What is the Forex?

“Forex” is a moniker for the foreign exchange market. You may also see FX.

What is a liquid market?

You will often hear the Forex referred to as the most liquid market in the world. A liquid market is one filled with liquid assets, or assets that can be sold instantly with almost no loss in value. You car, for example, is not a very liquid asset. Although you could probably sell it very quickly, you would have to lower the price. In order to find a suitable buyer willing to pay a suitable price, you’d likely have to wait a while.

In the Forex, because currency is such a massive asset, it can be traded almost instantly. The sheer size of the Forex (it’s a worldwide market) also means that no key players or institutions, no matter how large, can control the price of currency. This makes the Forex the most stable market in the world.

Who trades in the foreign exchange market?

Like I said, it used to be mostly large financial institutions, central banks, hedge funds, international corporations, and massively wealthy people who traded on the Forex. Now more and more individual people are able to take part. 

How is money traded on the market? Is physical money traded?

No. Most often money is simply traded virtually. In fact, there is no centralized market in the Forex. Trades take place between traders all over the world through the internet. The Forex is open 24 hours a day, five days a week (closed on the weekends), across all time zones. This means that as the market closes in the U.S., it’s opening somewhere else in the world, so the market is active at every point in the day.

How do you make money in the Forex?

Currencies are usually traded in pairs on the Forex. To make money, you basically have to correctly predict which currencies will gain and lose value. For instance, one popular pair of currencies is the U.S. dollar and the euro. Currently, the exchange rate between the dollar and the euro is .73 dollars to one euro. That means it takes about 1.3 dollars to equal one euro. In order to make money in the Forex, you would have to predict when the dollar would reevaluate or when the euro would devaluate, and buy currency accordingly.

What currencies are traded on the market?

Although some retail traders deal in less-known currencies, the most popular currency pairs are:

• EUR/USD (euro/dollar)
• USD/JPY (dollar/Japanese yen)
• GBP/USD (British pound/dollar)
• USD/CHF (dollar/Swiss franc)

As well as the three “commodity pairs.” The commodity pairs are so called because they are from countries that include a large amount of commodities. That means these pairs are highly correlated to changes in commodity prices. They are:

• AUD/USD (Australian dollar/U.S. dollar
• USD/CAD (U.S. dollar/Canadian dollar)
• NZD/USD (New Zealand dollar/U.S. dollar)
• 
  

What is “leverage” in the Forex?

Leverage is using borrowed capital to get a higher return on your investment. Let me unpack that phrase for you. Basically, leverage is borrowing money in order to trade more than you have. If you have a mortgage on your home, you are already leveraged.

In the Forex, there are often many high leverage opportunities, sometimes up to a 100:1 ratio. That means if you had a dollar in the Forex, you’d be able to leverage that dollar to trade one hundred dollars. If you have a thousand dollars, that amount goes up to one hundred thousand. This high leveraging makes it easier to trade large amounts of currency and keep the market moving.

What is carry trading?

To understand carry trading, you have to understand that each central bank determines the interest rate on currencies. Carry trading is all about funding the purchase of a currency with a high interest rate with a currency with a low interest rate.

For example, in 2005, many people bought New Zealand dollars (whose interest rate was 7.25%) with the Japanese yen (whose interest rate was 0%). In this interaction, because there was such a huge difference in the interest rates between the two currencies, carry traders were making money in the trade alone, without having to wait for the money to gain value. 

What does “long” and “short” mean in foreign exchange?

Because currencies are traded in pairs in the Forex, you are often “long” one currency and “short” another. For instance, if a person traded 100,000 dollars for yen, she would be “short” the dollars she just traded, but “long” the yen she received.

This is just the beginning of the Forex! It’s a very complex, but exciting market. If you’re interested in learning more about the trade, I’d visit Investopedia, as they have a lot of great resources about the fundamentals of the Forex.

Mary Kremer writes content for Dinar Daddy, the number one source of information for trading the Iraqi dinar.

50 Plus Travelers Going on Vacation: Planning Ahead for Cash Purchases

Traveling can be stressful. There are a lot of plans that have to be made, reservations, itineraries, not to mention saving up and setting a budget. If you’re going outside the country all those things can get even more complex, and at the same time you have to add on concerns about passports and customs and so forth. Whether it’s a family vacation or a business visit, anything you can do to simplify your life when that trip comes up is a good idea. One of the things that make the biggest difference is planning ahead for your money. Here are a few ways to be prepared when it comes to your wallet.

Make exchanges before you go whenever possible

Foreign exchange is tricky. Every market plays a role in how much one currency is worth as compared to another. Those rates are constantly changing, and it can be pretty difficult to keep track and make sure you’re making smart moves even without the added stress of traveling. If possible, you should plan ahead and exchange some currency before it’s time to leave. In most cases you’ll be able to use your credit card, at least at an ATM, or find someplace with decent rates for currency exchange. Some places, especially if they’re popular tourist areas, may just accept your US dollars. But why bother with the hassle if a little planning ahead can save you?

This plan gets a lot more complicated if your trip is taking you through multiple countries who don’t share a common currency. You don’t want to be carrying too much cash around, even if it is from a variety of countries. While you may want to plan on exchanging most of your cash as you go, it’s still a good idea to have a little of each, just in case you find yourself in a tight spot somewhere, say you can’t find an ATM that will accept your card.

With that being said though, try to budget as close as possible. If you have a lot of cash left over after your trip, you’re going to pay to exchange it back into US dollars. Pull out as close to what you will need as possible, and if you are going on another trip any time soon, save the extra instead of exchanging back and forth.

Learn to recognize the currency you’ll be using

Another advantage of exchanging some cash beforehand is that you can get to know it. When you’re already in an unfamiliar place, likely with an unfamiliar language, adding to that trying to count unfamiliar money is just a nightmare. Most of us completely take for granted how well we know our currency. We can tell how much a bill or a coin is worth with a quick glance. You could probably tell me a value just by seeing the president.

If you don’t have a feel for the currency, you run a few risks. First, you might just be embarrassed taking so long to count it out. Second, it makes it a lot easier for someone with less than honest leanings to take advantage of you. Third, you don’t want to accept counterfeit bills, and tourists are the perfect target for that type of scheme.

Try to get a feel for how much things cost

While you’re busy keeping track of how much your cash represents, there’s another easy way for you to be scammed. You have a pretty good idea how much something is worth in US Dollars. You wouldn’t pay $20 for an ice cream cone, even in Disneyland. That is a real risk if you don’t have some intuition about the currency you’re working with though. You’ll be so busy making sure you counted right, you may not notice that you were charged a fortune. At the same time, don’t let them charge you in US Dollars either. In that case, they can use any exchange rate they want. Even if it seems reasonable, it may be anything but.

As of this writing, $1 US is equal to:

• 101.55 Yen
• 13.16 Mexican Pesos
• 0.72 Euro
• 0.60 British Pounds

Keep in mind these numbers fluctuate constantly, so look up the current exchange rate before your trip. Getting an idea of what to expect can keep you safer, and likely save you quite a bit.

A Reliable E-Currency Exchanger For Your Online Business

Investing Online? Look For The Best E-currency Exchanger

Finding a reputed and established e-currency exchanger that can offer the best services is very important, especially if you are involved with online investing. To put it simply, it’s one of the most crucial aspects to consider when you are involved with a business where you send/receive money online.

When you have an online business that helps you make a pretty good amount of profit and also growing at a rapid pace, you have to look for an e-currency exchanger so that you can receive the funds/amount in your country’s currency. However, it’s not really an easy task to find a reputed e-currency exchanger who can help you get the amount within a short span of time.

Understanding The Concept Of E-Currency

To put it simply, depositing and withdrawing amount/business online is definitely a daunting task. Although there are many e-currency exchanging companies out there in the market, you cannot trust everyone. Therefore, you need to be a little careful while choosing the e-currency exchange
company for your online business.

E-currency is one of the best ways to get the funds in your personal account. Though some of the people decide to choose the bank wire, but it can be an expensive option. Moreover, banks take a lot of time to deposit the funds.

Now, you simply don’t need to worry because it’s the e-currency service providers who can easily transfer the funds to your personal account easily. They make use of a payment processor to transfer the funds in your currency. You have to choose the currency depending on the present location where you are living or kind of client you are dealing with.

Submit Your Identity Proof/Address

Just like any other bank or financial institution, e-currency exchangers ask the consumers to submit some form of verification before carrying out any kind of investment. Therefore, you have to submit the identity proof along with a utility bill which will prove the residential address.

Some of the e-currency providers may also ask you to provide some other details. Normally, most of the providers ask you to submit the scanned documents so that the process can be completed more quickly and easily. Once you have set up the account, it becomes easy for you to deposit and withdraw the amount easily.

Of course, nothing is free in this world. Depending on the amount of transaction, there is a specific amount which will be charged. It’s advisable to do some online research when you are looking for e-currency providers so that you can find the best one which will meet all your needs.

Conclusion
If you want to know about e-currency exchange provider, there are many good websites which can give you some excellent tips to find the best provider. You should read Daily Released reviews or client-testimonials of the different e-currency websites before making any choice. No matter the kind of online business you are involved; keep all these tips in mind to find a reliable e-currency exchange provider. For more information you can click this link www.paymentbase.com.

Why Dealer Transparency Is Key When Making a Foreign Exchange Deal

When looking to make an exchange or payment worth hundreds of thousands of pounds, there is no doubt that transparency should be everything when it comes down to your chosen broker or exchange company.

After you have registered with a larger foreign exchange provider, the usual process is for one of their dealers to ring up and negotiate a transaction over the phone.

Without actually seeing the figures and rates at hand however, this can get confusing, and you may not actually be getting the best deal.

In fact, some brokers even calculate their rates on the status of the customer, meaning that depending on who you are, or how big your business is, you may be paying more than others.

Companies such as www.4xcurrency.com calculate their rates as a percentage away from the inter-bank rate and according to the size of the trade; so that everyone gets the same exchange rate.

Choosing the right broker is therefore imperative if you are looking to save your business as much money as possible.

Ideally, you should be able to see the exchange rate on a computer screen before you make a deal, so you can compare the price you receive with other providers. Often this will be streamed to your computer via the broker’s exchange system.

If it is done correctly, this means that you should be able to view currency rates in the exact same manner as large corporations and foreign exchange traders; allowing you to make the right payment at the right time, with maximum ease and security.

In addition to this, some brokers even back up their deals so that you will always get the agreed amount of foreign currency at the time of when the deal is made. This is bonding, even if the rate of exchange changes overnight or when the transaction is fully complete.

But what about bank exchanges?

Though bank exchanges offer great security, the truth is that the primary business of a bank is not in foreign exchange, so you shall probably be given a lesser rate and charged for the exchange that you are about to make. In fact, some banks impose fees of up to £30 - £40 per exchange.

Not only that, but if you go with a specialised broker, it is far more likely that they will spend the time and effort into making sure that their clients are given the best rates possible.

Though transparency can vary between individual banks, it is generally held that they do offer a good level of clarity when making an exchange, even if the bank charges more than a broker.

The Internet’s Role in Forex Trading

The investment market has been expanding its client base steadily for many years now. Individuals from any and every occupation and background can participate in a range of trades including stock exchange, real estate, currency trade etc. Out of these the last one i.e. the currency trade or foreign exchange is the investment market which has garnered the most popularity in recent times. This new found popularity is not unfounded as foreign exchange can lead to high pay outs and is accessible to all participants via the Internet at any time. The massive participation of this market has resulted in a daily transaction of about 4 trillion USD. 

The most important factor which can help a trader to transact successfully with considerable profits in this market, is the Internet. It is this online world which has skyrocketed the market’s popularity by throwing it open to everyone, everywhere. Apart from this factor, there are also a number of forex market related benefits that are available to us, because of the Internet.

Following are listed a few such benefits:

• Research – Foreign exchange is a currency trade involving pairs of currencies from various nations e.g. currency pairs USD/GBP, USD/JPYen, USD/Euro, GBP/Euro etc. (most popular being the USD/EUR). Therefore, it is imperative that we know the major economical trends of the nations whose currencies we deal with. Here the importance of research cannot be stressed enough. It is through effective and optimum research that we can analyze all those national and international indicators that affect the currencies we trade. Thus, proper research will lead to sound analysis and accurate decision making, thereby enabling us to maximize our profit while limiting our losses. And since the Internet makes news from the remotest parts of the world available to us at the click of a finger, it is the most potent source for such research.
• Leveling the field – As mentioned above, foreign exchange as an investment market is available to one and all. There is no particular body governing or regulating the trade, hence direct participation without any middleman or forex broker is possible. Also, due to the sheer amount of money and number of players involved, it is not possible for any person or business entity to monopolize the entire market. The Internet further makes the process obstacle free and levels the field for all traders as it makes all the required information including research materials, training programs, rules and procedures available to one and all.
• Practice makes perfect – This involves one of the best forex related services provided via Internet i.e. demo account. A demo account is a virtual currency trading account through which you can invest virtual cash till you’re confident in yourself and have narrowed down on a particular trading strategy. These accounts are offered by many websites like teletrade (they offer it for free). All you have to do is to fill out the necessary details and download the relevant software (in the case of teletrade it is Meta Trade 4 or 5), and you’re ready for practice.

As mentioned earlier, the information stock of the Internet is inexhaustible, hence for further information on the subject you can look up the other available websites specializing in this field.

Author’s Bio – Alisa Martin is an investment advisor. She also regularly writes for teletrade and other popular forex and investment related websites.

Tips to make money online by investing in forex market

Foreign exchange market, also referred to as forex market, forex capital market, currency exchange market or fx, deals in currencies from all around the globe. The market permits financial institutions including banks to trade different currency denominations in an easy way. The best thing about forex trading is that it can be done online. 

However, before investing hard earned dollars in the forex market, one should consider some essential information about the market to understand how he or she can make noteworthy profits through this investment tool. Here are the factors to take care of before having a jump start in the market.

• Have a clear concept – At the outset, one must have a clear concept about what is forex market and how to trade in it. Foreign exchange market allows a trader to buy a certain amount of a particular currency paying the exact amount of currency from another country. The motto is obviously to purchase at a low and sell at a high price. This is same as the procedure followed in the stock market. For instance, if a trader believes that Euro is going to rise in terms of value, he can buy particular amount of Euro through forex market using American dollar or any other currency of his choice. 
• Understand the worthiness of forex – One must understand that forex trading is not as popular as stock trading. According to many economists, foreign exchange trading is nothing but currency speculation. Some of them even call this as a type of gambling. But that doesn’t make any sense as even buying bonds or stocks depends on sheer speculation. Nevertheless, before actively participating in online forex trading, a wise investor must open a free demo account with any forex trading website and gather hands on experience in the subject and about the market. A trader can operate virtual transaction through such an account for as long as thirty days. Trading in the forex market can be done online through a forex broker or forex mini account. Such an account can be created by signing up for an online trade account with reputed forex brokerage companies like FXCM, FX Solutions and GFT Forex. Taking a course on forex trading may come handy in order to trade successfully in the forex market and ensure minimum loss as well. Participating in mock forex trading can also come handy to gather experience. 
• Know the scams – To conclude, one must understand what is genuine and what is not. The beginners often get confused with promises like ‘forex made easy’, ‘make huge profit in forex’ etc. These are often misleading or even scam. One should study the market and know the basics of forex trading before he invests his hard earned money in it. He may also participate in seminars or webinars related to forex trading to enhance his ability to make more dollars by trading in the foreign exchange market. 

These are some good and helpful forex trading tips that come really handy especially for the newbie in the market. If you were looking for foreign exchange try here https://www.hsbc.com.au/1/2/personal/foreign-exchange/getrate

Forex Basics

International Currency Money for Forex Trading (Photo credit: epSos.de)

The Internet and advent of electronic funds transfer in the early 90s made the world’s forex markets readily accessible. Today, the forex is one of the largest securities market in the world. Different players contribute to its market volume including individual investors, and huge hedge funds among others. Forex trading continues for 24hours as traders try to profit from changes in currency exchange rates. 

Basically, forex trading is quite simple because it involves buying one currency with another. If a trader buys a currency with another and the exchange rates of the two currencies move in the favour of the trader, the forex trader can buy back the original currency at a profit.

Trading in the forex market is based on a bid/ask system. The difference between a seller’s asking price and the buyer’s bid is called a spread. The smallest increment in the exchange rate is known as a pip and is usually one one-hundredth of the US cent. Commissions are not charged by forex brokers. However, brokers mark-up spreads to 3-20 pips and keep it as their fee.

Forex trading is all about exchange rates. To monitor changes in currency exchange rates, traders need to analyse forex charts, which show trading activities within a certain timeframe. There are several types of forex charts but the most common are bar charts and candlestick. Traders should have proper understanding of these charts to spot trends and make smart trading decisions.

How to read a Forex Chart

• Locate a chart to analyse. Charts can be found online or in specific forex markets
• Find the range. Charts are a reflection of short and long term trading. Forex trade beginners can easily read charts with a range of at least a day but not more than one week. 
• Identify the chart type. Bar charts have price ranges indicated with vertical bars while candlestick charts have vertical rectangles. Line graphs do not have bars or rectangles. Charts come in different forms and traders can switch to candlestick or bar charts for easy interpretation. 
• Locate open and close prices on horizontal “pegs” in a bar chart and top and bottom of rectangles on a candlestick. When the open rate is lower than the close rate, the rate has an upwards trend and the opposite is true. 
• Look at the chart as a whole. It will have groups of bars with different colors moving up or down indicating upward and downward trends respectively.

Common Mistakes in Forex Trading

Lack of knowledge
Forex trading is complex. There are many factors that affect currency markets including interest rates, inflation, elections, wars and money supply among others. These cause currencies in affected regions to swing up or down. Traders without knowledge of the countries whose currencies they trade in can make poor trade decisions.

Lack of discipline
One of the most important traits that forex traders should possess is money management skills. Traders with a plan on where to sell in case a trade is losing money can make higher profits.

Getting too complicated
Some people believe that the more complex an investment is, the more profitable it can be. This is not always the case with forex trading. Most traders who benefit from forex trading do the basics.

Greed
Some traders also believe they can make high returns every day. This makes them take huge risks in a bid to make more. Eventually, they lose all their money if they invested blindly.

With forex, traders can make huge profits on their investments but with the wrong decisions, they can also incur huge losses. Forex traders who learn the basics can avoid making blunders that will make them lose money.

If you want to learn more about Forex trading and want to understand those seemingly complicated currency charts, you can visit http://www.forexcharts.net/.

Different Financial Risk Types Explained

In an uncertain financial market, people with money to spare are always looking for investments with the perfect combination of low risks and high returns. 

Although no investment type is entirely without risk, by doing your research and trading wisely, you can still see big returns on your money. 

But which investment type is right for you? Here’s a quick guide to help you decide how to get the most out of your money. 

Share investment 

Investing in shares in generally seen as a long-term investment. It is extremely popular as the growth of shares normally out-performs inflation, giving you a greater return for your investment than a bank could.

When you buy shares in a company, you become a partial owner of that company. Depending on how many shares you have, you can vote in shareholder meetings and have a certain amount of say in the running of the company. 

If the value of that company goes up over time, so do the value of your shares. Therefore giving you a profit on your initial investment when it comes time to sell. 

Historically, investing in shares has produced some of the strongest after-tax investment returns over long periods of time. So if you’re looking for somewhere to put your money, this could be a great option. 

Two approaches can be taken when dealing with shares. You can either buy into a company and then hold on to your shares for many years. Or you can actively trade between companies, buying and selling shares as values fluctuate. 

Before you buy any shares, research potential investments as thoroughly as you can. Invest in the right company, and your money could be working for you for years to come but invest in the wrong company and it could be wiped out in an instant. 

Foreign exchange 

The foreign exchange market, also known as the Forex, FX and currency market is the name given to the market trading in foreign currencies.

Forex Money for International Curency (Photo credit: epSos.de)

Thanks to home computer programs and increased awareness of the Forex market, its popularity has grown massively over the last few years. In fact as of April 2010, average daily turnover in global foreign exchange markets was estimated at $3.98 trillion. 

To make money out of the Forex market, you have to buy and sell currency at the most opportune times. Exchange rates fluctuate constantly due to various factors; military action, natural disasters, and political activity all have an impact on market confidence and therefore the perceived value of currency. 

Trading in shares can be lucrative but risky 

Large companies can use this to their advantage by executing payments or purchases when currencies are at the right levels. Even the smallest change in rates can have a big impact on large transactions. 

Individuals can make money on a smaller scale by buying up one currency and then selling it when the exchange rates change. The margins are rarely massive, but it can give you a bit of extra cash in your pocket. 

Commodity trading 

Commodity trading refers to the trading of raw and primary products and the speculation on their values increasing or decreasing.
Raw and primary products include corn, milk, soybeans, sugar, precious metals and crude oil. Each product can only be traded in certain months of the year, so becoming familiar with the process is crucial before you start trading. 

Money can be made by speculating on crop performances. For example, if there is a bad crop of sugar the price of sugar will go up. So buying sugar before the price increase and then selling when it’s at its peak will give you a profit.

Geopolitical factors can also influence the commodities market. For example, political instability in the Middle East can drive up the cost of crude oil. Or military action in a coffee producing country could affect that year’s crop, also driving up the prices.

As with shares, commodity trading can be long term – buying a product at a low cost and waiting for the value to rise – or short term, where the products are sold high and then bought back lower. 

Dealing in commodities is like trying to predict the future 

Whether you invest money in shares, foreign currency or commodities, they all revolve around speculation, risk and luck. Outside factors can dramatically affect each market, changing the value of your investment over night.
So whichever market you decide to invest in, do your research, and study the market and most of all never invest more than you can afford to lose.

Tom Reynolds, financial analyst at currency brokers firm, Currency Index. He analyzes the changes in yields and financial markets on daily basis, creating predictions on how different financial risk will change in the future that helps the company to hedge its assets and secure their clients’ investments.