Презентация на тему Forex

(Money for Capital)

Machine (PC, Laptop, Internet Connection)

Method (Trading System,

Platform)

to as the Forex or FX market) is the

largest financial market in the world, with the equivalent of over $3.2 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined.

at a centralized location (i.e., the stock exchange), the

worldwide Forex market does not have a central location. It is a global electronic network of banks, financial institutions and individual Forex traders, all involved in the buying and selling of national currencies.

Cost
Uncorrelated to the Stock Market
Inter-bank Market
No one can

corner the Market

zones are that of Sydney, Tokyo, London, and New

York. Therefore, traders must consider which players are in the market, since in the modern interconnected financial world, events that occur at any hour, in any part of the globe, can affect some or all parts of the investment community.

to an actual stock exchange. Forex is an over-the-counter

(OTC) or off-exchange market.

investment and commercial banks, money portfolio managers, money brokers,

large corporations, and very few private traders.

is determined through the interaction of market forces dealing

with supply and demand.
The value of a currency, in the simplest explanation, is a reflection of the condition of that country's economy with respect to other major economies.

affect supply and demand are interest rates and the

strength of the originating country’s economy as a whole. Fundamental indicators, such as foreign investment, PPI, CPI, GDP, and the trade balance, echo the overall health of the economy, and alter the supply and demand for that currency.

Dollar ($),
2. European Currency Unit (€),
3. Japanese Yen

(¥),
4. British Pound Sterling (£),
5. Swiss Franc (Sf),
6. Canadian Dollar (Can$),
7. Australian
8. New Zealand Dollars.

Crosses
EUR/CHF
EUR/JPY
GBP/JPY
EUR/GBP

:

GBP/USD ; USD/CHF ; EUR/USD

- first listed currency

is the ‘ BASE’ currency – basis for buy or sell transaction.
- second listed currency is called the ‘Counter’ or ‘Quote’ currency.


E.g. A trader places a buy GBP/USD order. The action that takes place is the trader sell the USD and buy GBP.

role by keeping inflation low and steady by controlling

money supply.

Restore the order in the market in the event of excessive currency rate volatility.
.

and huge amounts of speculative trading on a daily

basis.
Bank trading are:
1. On behalf of the bank customers.
2. Proprietary trading where bank dealers trade bank capital to make a profit.

large FOREX broker facilitate interbank trading and matching for

a fee. The internet revolution has forced this business to move to electronic system.

Customer Brokers
- These are brokers that handle retail trades.
- They are the main driver for the increasing use of internet.
- The business is growing fast and very competitive, they provide
dealing services, analysis and advice to customers.

Commercial Companies
- Companies engaged in international trade they use currency market as a means of protecting themselves from unfavorable moves in the market.

largest portion of the FOREX daily volume is from

investors and speculators.
A decade ago, this group are only the big and well funded traders. Since internet revolution, the field has changed that small investors can participate and take advantage of the same tools as big traders.

Investment where the fund manager is authorized
to use derivative

and borrowing with the aim of having higher return. They are well known for aggressive currency speculation in the recent years.

Buy
Sell

Traders

generate profits, or losses, by speculating whether a currency will rise or fall in value in comparison to another currency.
A trader would buy the currency which is anticipated to gain in value, or sell the currency which is anticipated to lose value against another currency.

ought to happen in a market
Factors involved in price

analysis:
1. Supply and demand 2. Seasonal cycles 3. Weather 4. Government policy

Technical analysis

Focuses on what actually happens in a market
Charts are based on market action involving:
1. Price 2. Volume 3. History

data with the goal of determining future movements in

a financial market.

along with its inflation and interest rates, impact the

price of the nation's currency. Traders that use fundamental analysis can speculate on currency price movements by paying attention to the world news, economic reports, and indicators issued by the government.

identify buying and selling opportunities. Over long historical periods,

currency behavior has produced trends and patterns that are identifiable.

trading work? A complete transaction is the buying of

one currency and selling of another at the same time.