Currency Exchange Introduction

[vickiormindyb]

My friend thinks this video is so self-explanatory that just about ANYbody ought to be able to comprehend it, which didn't make ME that happy, b/c I just BARELY understand it.

He sure knows how to bolster someone's courage. : / : D

[michaelteter]

What Khan has done is fantastic, but oh how I wish he would get someone else to do the speaking!

[lucasB823]

@michaelteter why? I like Khan talking!

[gerarddanford]

Khan is great. More B-School stuff at academybridge

[zooeyrong]

well explained... you're good!



[Chonch95]

QUIT REPEATING YOURSELF SOOOOO MUUUUCCHHH!!!!

[BaesstroHazBeats]

@Chonch95 This guy makes hundreds of videos to educate people... for free. Screw off.

[TheKmanOfSmash]

@Chonch95 Do you even understand the process of how learning works? When introduced to a concept that is foreign to you, you'll have a better chance of retaining the information if certain points are repeated to you than if it's just said once. That's just common sense. I love it when Sal repeats himself. It feels as if he's a human who is really trying to help me and is not just some robot behind a screen. If you don't like the way in which he teaches, go make your own videos. Simple.

[Chonch95]

@TheKmanOfSmash I know what you mean, bro. But I'm not talking about that. Like from the very beginning he repeats things OVER AND OVER as he's writing it down. It just makes me want to scrape something. "Let's say the exchange rate is 10... 10 Yuan... 10 Yuan per USD. 10 Yuan is equal to 1 USD. 1 USD." BLEH!!!

[TheKmanOfSmash]

@Chonch95 Well, I personally don't see how that's annoying, but everyone has their pet peeves. But understand that Sal is just one person. In adjusting the way he teaches to better suit your learning style, he may be taking away the experience of others. He cant please everyone but what he can do is please the majority. From what I've seen, nearly everyone loves the way Sal teaches. You're just part of the minority Sal can't please at the expense of said majority. No hard feelings, bro

[TheBorkka]

good stuff

[missionfilex]

According to interest parity theory,when the forward discount (or premium) exactly offsets the interest rate differantial,then the forward rate is said be interest parity.

The Interest Parity Theorem;

R(domestic)-R(foreign)=[(forwa­rd exchange rate)-(spot exchange rate)]/(spot exchange rate)

so

Forward(DC/FC)=Spot(DC/FC)・[1+­r(domestic)]/[1+r(foreign)]

[vickiormindyb]

My friend, Rob, did this - something with it - when he first started working at the World Trade Center, but I can't understand what he did with it b/c he won't explain it so's I can understand it.

He said something about converting money when people come into the country, but I thought you went to a bank or the American embassy to do that.

I'm pretty dang confused about what he did. I understand the Hedge Fund Advisor better than the job he did when he first started working there.

[alebeau4106]

You are incredible. I've been looking this stuff up for a few weeks but have understood nothing ;(. Your video makes the principles so easy to understand.

Thanks so much for posting this ! I can't express this enough.

--AL

[dealerbuttons]

isn't it yuan needS to be converted:)

[whartanto2]

Wouldn't the Chinese government just print an extra 1000 Yuan and release it in the market to keep the exchange rate fixed?

[thetopgun4you]

@whartanto2 It dosent work that way, If it would, every country would do that which leads to money surplus, eventually no value for money.

[Creolebway]

getting confused with indirect/direct and spread bid-ask exchanges and how to calculate

[vickiormindyb]

My newest friend on Facebook named money as one of his interests.

It sounded funny when I first read it.

[ragaplus]

lol

[Random0rants0eco0yay]

pronouce YUan as

Say UN very fast.

[paulceltics]

WON! LOL

[okpapereat]

no... the won is the currency of North Korean and its pronounce yun mun bi in cantonese...

[dreemLight]

Person A ccepts. it's accepts

[GuyGroovey]

thought it's pronounced "YOU-an"

[Jotto999]

@GuyGroovey Yeah me too, for months I've been thinking it was "you-anne". Hehehe.

[kimdachi]

Fantastic. Easily understood. Been wondering about this topic for some time. Appreciate the good work.

[vickiormindyb]

It's not simple to understand in terms of what we're doing w/ World Trade exchange rates and why it's important to work w/ them.

My friend won't tell me what he did w/ them, and I'm not going to try to guess what he was doing, b/c I'll be dead wrong 9 out of 10 times.

[trollwarlord3]

it's should be YUAN, not WAN !!!

[vickiormindyb]

My friend acted like this was supposed to be so easy to understand.

He goes 'What's so hard to understand about this? It's as straight as an arrow.'

I said 'Well how am I supposed to know? I never heard of it until I watched this video.'

I FELT like saying 'Excuse me, Mr. Wall Street. Math hasn't ever been my strong suit.'

Lucky I didn't say that.

He has a New Yorker's temper, which I go out of my way to avoid. So far I've succeeded, and hope to continue that streak.

[vickiormindyb]

The yellow man reminds me of Fred Astaire; the top hat does. Or a banker.

My friend used to be a banker but he didn't have a top hat and he's not portly, like some bankers are.

I asked him why he stopped being a banker, and he said "Because I worked for Bank Of America."

No idea what he's referring to.

He likes doing whatever a broker does.

[vickiormindyb]

Does anyone know why it's a hot topic?

[vickiormindyb]

My friend used to do something w/ world trade exchanges and wrote reports about them. But he worked w/ World Trade from 1995 to 2000, not now, and he won't talk about what he did. He has a knack for making himself crystal clear, so I control my extreme curiosity.

He used to work at One World Trade Center which, in a related way, is how I met him.

From 2000 to Sep-2001, he did something w/ hedge funds profiles.

I wish I were capable of doing his job. I want his earning potential.

[UndeadTheta]

lol the guy with the mustache and the hat :)

[MyChuck12345]

Never mind...I just found the "Show Playlist" button.

[MyChuck12345]

I know that this is the first video in the series about currency exchange. You've added at least six additional videos but there isn't a playlist to tell the order in which they should be watched. I can tell how old each video is by the date that the video is posted, but without a time stamp it 's very difficult to determine the order when multiple videos are posted on a given day. Help!

[jazerazo]

Wow!! that was so simple... no fancy terminology was needed at all to explain the basis of the currency exchange process... Thanks again!!

[boeing747200lr]

Sal, as usual, you continue to overwhelm me!!. Thanks you so much.

[etzel33]

Cool setup. Looking forward to the follow up vids

[Zalzal019]

This is very simple to understand, thanks!

[nadzTube]

Hey guys check out my video I think I kinda go more into the mechanics of foreign exchange than in this video, although Sal of course explains better and I got used to his voice :)

In my video I explain in simple terms how trade between countries has impact on currency exchange rates.

Here it is: /watch?v=Gnk62dJWd94

[amyntazoe]

The demand for the dollar is down.

[amyntazoe]

Why would you not use the exact exchange rate? Now would of been a great time!

[combatpoo]

So thats why the Chinese Treasury is stockpiling on US Dollars.

[JoesMonkeyLand]

You're an AMAZING teacher. I'm 12 and I can understand this.

[gxryd3r]

So as a country, we shouldn't be printing too much of paper currency or the value of the currency will go down. Is that right?

[JoesMonkeyLand]

@gxryd3r Yes, but as long as the inflation (making more money) is not to fast, we will still have enough money. For example, if by next year $1 now is equal to $10 then, then nobody will have enough money. But if it takes 20 years for that to happen, then people will have been keeping up, and it ends with a good outcome. The simple answer: Yes.

[MarvelsofaLifetime]

@gxryd3r If the supply of a currency increases, then yes, the demand for it will, likewise, decrease as well. As far as I can tell, the chief component that drives demand on a currency, is when the demand for it exceeds its supply (as exemplified in this video); because the thing is, when this happens, we can increase the price of the currency (because its demand went up) so that we can compensate for its low supply. Mere words only explain this process so well :c

[PhilipK100]

I can't wait for the next video.... Looking forward to your explanation of how Businesses trade internationally, how Holiday makers also influence currency prices and how the prices of products and services rise due to increase in cost and exchange rate of Foreign goods! You're a top dude Sal

[Waranle]

Thank you Sal

[OnlyIfYouSayPlease]

You're awesome :)

[91jgphonecall]

intresting, i had no idea!

[naughtydevil02]

that was so awesome!!!:D

[dakszi]

Hi Sal,

Great topic! I would love to hear about the forex system as well.

[purplepick1]

Do you upload a video everyday? THANK YOU!

[rrayoflight]

Sir

your videos are great but it's not necessary to write whatever you say in that slow

personal-handwriting manner which takes too much time.Just a little faster would be better.

[velocity73R]

@rrayoflight

Disagree, the writing helps to cement the idea in the viewers mind. If he was just to say it, and not write it, the viewer would start to drift off, much like in a classroom setting where the teacher might go off on a tangent only to lose their students attention, as well, there train of thought. He knows what he is doing and he's got a great way of explaining things, don't bring him down to the lowest denomination = typical teacher.

[zackboomer]

@rrayoflight It is much easier to understand the concepts when you are both hearing the words and seeing them on the page

[fighter91]

@rrayoflight wrong!

[thisisnotanick]

@rrayoflight How dare he not specifically tailor his videos to you!

[jonasianbuddy]

woah, i never thought about currency like that. i'm taking economics right now and i'm so glad i watched this video because my teacher is horrible and i'm sure i wouldn't have understood it as clearly.

[THECOMMENTER10000]

Salman Khan should be awarded a Nobel Prize

[saltkrakan1994]

@THECOMMENTER10000 if there was one in "education"...

[noxure]

@saltkrakan1994 He can get the Nobel peace prize, he's more deserving than others who got it and/or nobody is going to be insulted for a change. :-)