Decommissioning of U.S. credit and the resulting drop in stock markets around the world, enough to be afraid of investors. In this situation again raises the question of what to do after a crash.

It is recommended that the fear of a stock market crash will lead to completely liquidate our portfolio. Stocks and bonds are still paying dividends and interest. If we withdraw our money, permanently lose any chance of recovery.

If we are exposed, it is best to travel only 10% or 20% of the shares to bonds. Then you’ll feel a little calmer. Also, if you want peace, it is important to always invest in projects that are strong and durable in the long term.

Financial discipline is the best option in these cases. Investments in equipment are usually given long term, it is important to be disciplined not to make bad decisions before the current panic.

Constant financial problems, the decline in world markets, and all the problems currently affecting the global economy affect the national economy for all citizens.

The most concrete example of this product in job creation. The economic recovery of recent years has hardly been reflected in the creation of new jobs. Therefore, the current problems would only worsen the situation. At the same time, experts say that unemployment increases when the wage level tends to decrease.

Market downturn may also affect the decline in household consumption, and impairment of assets of a family. This is evidenced, for example, with falling prices in the housing sector.

Another area that reflects the market downturn is in pension funds. The fall of the investment of those funds on the stock market can affect the economy of the future retirees.

Finally, the crisis also affects international trade, especially since exports are dependent on demand from countries seriously affected by the crisis.

When firms have market power, sometimes they can earn more profits by practicing price discrimination. There is price discrimination when selling the same product with different prices for each consumer.

Consider the following example. You run a business selling personal finance program called success Middin and chief marketing officer, said:

Look, boss. Our market research shows that our buyers are of two kinds: there are customers who have no other choice but to use because they were used Middin our program to keep accounts, and new buyers who have used another program

Why not increase the prices they charge to existing customers and create a discount for new willingness to abandon our competitors? I create an account. If we increase the price of $ 20 to $ 30, but we made a $ 15 discount for people who have used other financial programs, make money.

You become interested in the suggestion and demand curves drawn in Figure 10-5. His research suggests that former clients have a more inelastic demand at the price of your new potential customers; because it changes the program has a high cost for new customers. If you plan to work and get the discount segment of the market, figures show that revenues will increase from $ 1,200 to $ 1,350 (to be sure you understand the analysis, using the data in Figure 10-5 to estimate prices and monopoly profits only if you set a monopoly price and if you carry a different price in each market).

Price discrimination is widely used today, particularly with properties that are not easily removed from low market prices at a higher price. Examples:

• Textbooks are the same sold cheaply in Europe and America. What makes the wholesalers to buy a lot overseas and lower prices in the market? A contingent of protection prohibiting the practice. However, as an American in particular, could also reduce the cost of the book we bought abroad via the Internet.

• Airlines capable of price discrimination (reviewed examples of “Airlines elastic” in Chapter 4). The market segments charge different prices for people who travel during peak hours or peak hours to those traveling for business

Identify an overview of how futures contracts are used and how it helps the business opportunities in the futures markets.

Welcome to our guide on currency futures contracts. Let’s start with the fact that the origin of the futures market is currently back in the history of the agricultural market in the nineteenth century. Meanwhile, farmers began selling contracts on agricultural produce in the future. This agreement is made, to anticipate market needs and stabilize supply and demand for agricultural off-season. Who would have thought that the currency futures market, began that long?

Futures market at that time, of course, involves more than agricultural products. The global market for all types of assets and commodities and financial instruments like bonds and currencies made. A futures contract that states a fixed price for delivery of certain liabilities.

If speculators are looking for business opportunities in the futures market, the product is not really necessary and there is no waiting for delivery. In fact, if the same futures contract traded on the value of the contract, the daily changes in line with the market value of assets.

In each of the forward exchange contracts, there are buyers and sellers. Buyers take a long position and short position of sellers. Currency futures contract set the purchase price, delivery and quantity. For example, a farmer has to offer a deal to a thousand bushels of wheat to a baker at a price set at $ 5 a bushel. If the daily price of wheat dropped to four dollars per bushel, farmers’ cash account with a thousand dollars (- $ 4 a bushel $ 1,000 x 5) credit. On the other side of the bakery has the same amount, $ 1,000 is required. The financial futures were performed each day.

Speculators in search of business opportunities should benefit now from the daily fluctuations in futures markets for the long positions if they believe that the buyer does not increase the price will be, or buy stock short positions if there is a decline in the price suggests.

Exchange markets have some advantages over the futures market in foreign markets. The foreign exchange market is more liquid, and market management seemed small because it is the largest financial market in the world with the largest number of daily exchanges. This means that forex is less delay (documents) to supplies and stop commands can be executed is easier when trading futures. We hope you find our articles informative and contracts before can now understand how it works.