forex market instruments ppt

most common instruments traded in the foreign exchange market are the following: Spot Currency Transactions (Spot, market These trades are commonly known in English as Foreign Exchange Spot Trading. Retail Exchange Market Peoplemay need to exchange currencies ina number of r Eg Fluctuations in exchange ratesA market based exchange rate will changewhenever the values of either of the twocomponent currencies change. So, keep your overall exposure limited, it keeps you for the long haul for tradingThe bottom line Trading is about opportunities, you must take action while the opportunities arise. Flexible Exchange Rate SystemFlexible exchange rate or floating exchangerates change freely and are determined bytrading in the forex market. Online forex CFD trading with Online currency trading, fast and secure, no commissions, 1 200 leverage, mini accounts from100 Free demo account for. Unlike options trades, Futures transactions are not traded in Over The Counter markets. Direct"tion is also called home currency"tion. Foreign Exchange, market, karishma sharma (2K12A27) anuj garg (2K12A13) ankit sapra (2K12A55) gunja kumari (2K12A22) J prateek kundu (2K12A26) shrutika dhawan (2K12A53). Spot and forward rates are different.

Market : (Current, market ) Spot market for foreign exchange is that market which handles only spot transaction or current transactions. Under floating exchange rate, the value of the currency is decided by supply and demand factors. Meaning of Foreign ExchangeThe term Foreign exchange implies two things: a)foreigncurrency and b) exchange rate Foreign exchange generally refers to foreign currency, eg for india it is dollar, euro, yen, etc the other part of foreign exchange is exchange rate which is the price. Jay Molina International Trade Theory : Absolute Advantage Theory Machiraju Presentations Pvt.

Besides, transfer of funds form one country to another, speculation is an important dimension of foreign exchange market. The intersection of supply curve and demand curve gives the equilibrium price Modern theory also called balance of payments theory of foreign exchange. The main currency used for forex trading is the US dollar. Today there are companies that specialize in providing services of participation and support to private operators in the. Affected by the fiscal policy of the government. Its geographical dispersion; Its continuous operation: 24 hours a day except weekends,.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday. Characteristics of foreign exchange Its huge trading volume representing the largest asset class in the world leading to high liquidity. Relative form of PPP This theory describes the link between the changes in spot exchange rate and in the price levels over a period of time. Direct and indirectexchange rates Direct method - Under this, a given number of units of local currency per unit of foreign currency is"d. Meaning : According to this theory,the price levels and the changes in these price levels in different countries determine the exchanges rates of these countries currencies. 1) Absoulte purchasing power parity. 6 Forex Financial Instruments to Understand By: Justin Stewart: What is the definition of a financial instrument where the forex market is concerned.

forex market instruments ppt

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