Finance

INTERNATIONAL MANAGERIAL FINANCE

Currency Trade

Currency Market

Currency market is a worldwide decentralized market. Participants in this market are mainly the larger international banks. Due to the different geographic global financial center, the major global foreign exchange market due to the time difference of relationship, as day and night, 24 hours of continuous operation of the huge market. Wellington, Sydney, Tokyo, Hong Kong, Frankfurt, London, New York and other major foreign exchange markets closely, to provide investors with no barriers of time and space, the ideal place for investment. Only on weekends and major holidays of countries, the foreign exchange market was closed. EBS and Reuters processing 3000 are two major inter-bank foreign exchange trading platform. Foreign exchange market determines the relative value of different currencies. Its size has far exceeded other financial commodity stocks, futures and other market, wealth transfer size is getting bigger, faster and faster speed.

Trading Features

The main trading center in New York, London, Tokyo, Hong Kong and Singapore are important although the center as well.

Exchange rate fluctuations is usually caused by actual monetary flows, and changes caused by the gross domestic product (GDP) growth, inflation (purchasing power parity theory), interest rates (interest rate parity, Domestic Fisher changes expected due to currency movements In fact, the international Fisher effect), budget and trade deficits or surpluses, large cross-border M & A deals and other macroeconomic conditions. Major news is released publicly, often at the scheduled times, so many people have access to the same information at the same time. However, the large banks have an important advantage; they can see their customers' order flow.

Foreign exchange market using the levers for margin trading can become a major advantage relative to the stock exchange market. High trading volume, high liquidity, high price...