Foreign exchange
Bnten.Men.Masr
Foreign Currency
Exchange Group ratesCurrency Currency exchange rate regime Fixed exchange rate rateFloating rateLinked Market foreign exchange market Futures exchange Retail forex ProductsCurrencyCurrency futureNon-deliverable forward exchange forex swapCurrency swapForeign options See alsoBureau de change / currency exchange office (Office) Exchange (Forex, FX, or currency market) is a decentralized world of-the-counter financial market trading currencies. Financial centers around the world to serve as a leading trading between a number of different types of buyers and sellers around the clock, except for weekends. Foreign exchange market determines the relative value of different currencies. [1] The main goal is to help the currency of international trade and investment by companies to convert one currency to another currency. For example, allow U.S. business to import British goods and to pay the pound, even if its income is in dollars. It supports the speculation, and it contributes to Carry trade where investors borrow low-yielding currencies and lend (invest in) a high yielding currency, and as (he claimed) may lead to loss of competitiveness in some countries. [2] The typical foreign exchange transaction, the purchaser of a single currency in payment of the amount in other currency. Modern foreign exchange market started in 1970 when the country gradually moved to floating exchange rate to the previous exchange rate regime, which remained fixed in the post Bretton Woods system. Foreign exchange market is unique because of its · Large turnover, the high liquidity ° geographical distribution · Continuous operation: 24 hours a day, except weekends, or trading from 20:15 GMT Saturday, until 22:00 GMT Friday Forum · various factors Currency · The low profit margins and profits of the public compared to other markets of fixed income · Use leverage to increase margins on the account size As such, it has been mentioned as a market near the ideal perfect competition, despite Central Banks to manipulate the market.[Citation needed] According to the Bank for International Settlements, [3] average daily turnover in foreign exchange markets of the world at about $ 3,980 billion, which was in April 2007. 3,210 billion dollar break-down is as follows: · 1,005 billion in spot transactions at the · 362 billion in outright forwards · 1,714 billion U.S. dollars in foreign exchange swaps · 129 billion estimated gaps reporting Contents [hide] • 1 market size and liquidity of the market participants · 2 Bankso o 2.1 2.2 2.3 Central Commercial companieso bankso 2.4 hedge funds as investment management speculatorso 2.5 firmso 2.6 Retail Non-Bank Foreign Exchange Currency brokerso 2.7 companieso 2.8 Money transfer / delivery company • 3 trading characteristics Discussion · 4 FX Rates determined by o 4.1 Political 4.2 Economic factorso conditionso 4.3 Market psychology · The 5 algorithmic trading in foreign Currency · financial instruments 6 o Spoto 6.1 6.2 6.3 Forwardo Futureo 6.4 Swapo 6.5 Alternative · 7 8 · speculation in forex risk aversion • 9 See also Notes • 10 ° 11 External links [Edit] market size and liquidity
Main foreign exchange market turnover, 1988-2007, measured in billions of dollars. FX is the largest and most liquid financial market in the world.Merchants include large banks, central banks, currency speculators, corporations, governments and other financial institutions. Average daily volume of global foreign exchange and related markets is constantly growing. Daily circulation was reported to the United States over 3,200 billion dollars in April 2007 Bank for International settlements. [3] Since then, the market continues to grow. According to the annual FX poll evromanis increased capacity further 41% between 2007 and 2008 [4]. Georgia to 3,980 billion U.S. dollars daily global turnover of trade in London at about 1,360 billion U.S. dollars, or 34.1% of the total, which is far away from London in the global foreign exchange center. The second and third place in accordance with the registered trade in New York 16.6%, and Tokyo, and recorded 6.0%. [5] In addition, the "traditional" turnover of 2,100 billion was traded in derivatives. Exchange-traded FX futures contracts were introduced in 1972 at Chicago Mercantile Exchange and are actively traded compared to most other futures contracts. Several other developed countries, as well as permit trading FX products (currency futures and currency futures options), their exchanges. All of these developed countries have already fully convertible capital accounts. Most newcomers do not allow the FX derivative products on exchanges, aimed at widespread control of capital accounts. But a few select new countries (eg, Korea, South Africa, India [1] [2]) has already successfully experimented with foreign exchange futures exchange, despite some control over the capital account. FX futures volume has grown rapidly in recent years and is about 7% of total exchange volume by, The Wall Street Journal in Europe (05/05/2006, p. 20). 10 currency traders [6]% of the total volume in May, 2010 Name the title of market 1 Deutsche Bank 18,06% 2 UBS ag 11.30% 3 Barclays Capital 11.08% 4 Citi 7,69% 5 Royal Bank of Scotland 6.50% 6 "JPMorgan 6,35% 7 HSBC 4.55% 8 Credit Suisse 4.44% 9 Goldman Sachs 4,28% 10 Morgan Stanley 2,91% Currency trading has increased by 38% from April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the importance of increased foreign currency, asset class as an increase in fund management assets, particularly hedge funds and pension funds. Different in different places, made it easy for retail trade on the exchange. In 2006, retail sales of about 2% of the total FX market volume of the average daily trading volume of more than U.S. $ 50-60 billion (see retail platforms) [7]. Because the OTC currency market, where brokers / dealers negotiating directly with each other, there is no central exchange or clearing house. The biggest geographic trading center in the UK, primarily London, which according to estimates IFSL has increased its share of world turnover in traditional transactions from 31.3% in April 2004, 34.1% in April 2007. Due to London's dominance in the market, in particular currency 's quoted price is usually the London market. For example, the International Monetary Fund when calculating the significance of the SDR each day they spend at the market price of London the afternoon of the day. Ten most active traders account for 77% by revenue, 2010 - Research FX evromanis. [8] This large international banks continually provide the market with both bid (buy) and ask (sell) prices. Tender / ask spread is the difference between the price of the bank or market maker will sell ("ask" or "offer") and a price taker on the market will buy ("bid") from the wholesale and retail customers. User will purchase from the market maker on the highest "ask" price and sell at lower "bid" price, which refuses to "spread" the cost of completion of the transaction. The distribution of the minimum traded currency pairs are usually 0-3 point. For example, bid ask quote of EURUSD may be 1.2200/1.2203 on wholesale brokers. The minimum trade size is usually about 100,000 units of base currency, which is a standard "lot". The spread may not apply to retail customers at banks, which routinely mark up the difference to say the program 1.2100/1.2300, 1.2000/1.2400, or let's say for the money or travelers checks. Spot prices on the market makers vary, but the EURUSD is usually no more than 3 point wide (ie 0.0003). Competition has increased significantly in a large transactions, and apply shrink large gallery couples, as small as 1 or 2 by birt. [Edit] Market participants Financial markets Public Market Exchange, organized marketSecurities Bond market Real incomeCorporate peasant government bonds, municipal bonds, bonds valuationHigh rate debt Stock market StockPreferred common share of stock stockRegistered shareVoting Stock Exchange Derivatives market SecuritizationHybrid security of credit derivative futures exchange OTC, non-organized Place marketForwardsSwapsOptions Foreign Currency Exchange rateCurrency Other markets MarketReinsurance marketCommodity money market real estate Trade Practical ParticipantsClearing houseFinancial Regulation Serial bank finance and banking, corporate finance Personal finance Public Finance v • d • e In contrast, the stock market, foreign exchange market is divided on the level of access. The upper is the inter-bank market, which consists of the largest commercial banks and securities dealers.The interbank market, are applied, which differs from the bid and offer prices, Razor sharp and usually unavailable and not known to players outside the inner circle. Difference between the Bid and offer prices broadens (0 / 1 1-2 Icon that point some currencies such as Euro). This is because the volume. If the trader can guarantee large number of transactions for large amounts, they can call for a small difference between the Bid and ask prices is known as a better spread. Levels of access that make up the foreign exchange market determines the magnitude of the "Line" (the amount by which they operate). Top tier inter-bank market is 53% of all transactions. After that is usually relatively small banks, large multinational corporations, then (a hedge risk and pay employees in different countries), large hedge funds and some retail FX-metal market makers. According to Galati and Melvin ", pension funds, insurance companies, common funds and other institutional investors have played an important role in the financial markets in general and FX markets in particular, from the beginning of 2000."(2004) In addition, he said, "hedge funds has increased significantly over the period 2001-2004 in terms of both number and total size" Central banks also participate in the currency market, currency straightening their economic needs. [Edit] Banks Interbank market caters to the majority of commercial turnover and large amounts of speculative trading every day. Large bank may trade billions of dollars every day. Some of this trading is conducted on behalf of customers, but much is conducted by their own desks, trading his own account. Until recently, foreign exchange broker, a large number of business support interbank trading and matching anonymous counterparts with a small fee. But today, a big part of the company moved to a more efficient electronic systems. Brokerage Squawk Box allows traders hearing on the interbank trading and is heard in most trading rooms but turnover is considerably less than a few years ago. [Edit] Commercial enterprises An important part of this market comes from the financial activities of companies looking for foreign exchange to pay for goods or services. Commercial companies often trade is quite small compared to banks or speculators and their trade is often a little short-term market interest rates. However, an important factor in long-term trade in the direction of currency exchange rate. Some multinational companies can be unpredictable impact when very large positions are covered due to exposures that are not generally known other market participants. [Edit] Banks National central banks play an important role in foreign exchange markets. They are trying to control money supply, inflation and / or interest in, and often have official or unofficial target rates of their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be of central banks to buy when the price is very low and sell when the price is very high, which means that the profits of their trade with more precise information.However, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses like other traders would, and certainly not conclusive evidence that they make a profit trading. Mere expectation or rumor of the National Bank's intervention might be enough to stabilize the currency but aggressive intervention might be used in several countries, each year a dirty float currency regime. Central banks do not always achieve their goals. Common resources, the market can easily overwhelm any central bank. [9] Such was the scenario a few seem 1992-93 ERM collapse, and in recent times in South Asia. [Edit] hedge funds, as speculators Approximately 70% to 90% [citation needed] speculative foreign exchange transactions. In other words, the person or organization that bought or sold currency has no plan to actually take the supply of currency at the end, but they were only discussing about the movement that currency. Hedge funds have gained reputation of an aggressive currency speculation since 1996. They control billions of dollars in investments and billions more may be a loan and, therefore, may overwhelm intervention by central banks to support almost any currency if the economic basis in fact hedge funds in favor. [Edit] Investment Firms Investment companies (who usually manage a large accounts on behalf of clients such as pension funds and the donations), use the foreign exchange market to facilitate transactions in foreign securities. For example, investment manager of the international stock portfolio, buy a few pairs to sell foreign currency to pay foreign securities purchases. Some investment management firms have more speculative specialist currency overlay operations, which manages money for clients exposures, which aims to bring profits and reduce risk. The number of this type of specialist firms is quite small, many have a large amount of assets under management (AUM) and hence can generate large trades. [Edit] Retail foreign exchange broker Retail (individuals) is a growing share of this market, as the size and importance. Currently, they participate indirectly through brokers or banks. Retail brokers are also mainly controlled and regulated by the United States, as the CFTC and NFA were previously subject to periodic foreign currency scams. [10] [11] to address the issue that started the NFA and CFTC (2009 year) from imposing stricter requirements, particularly the amount of Net Capitalization required of its members. As a result of many small and perhaps questionable brokers are now gone. There are two main types of private FX brokers offer the possibility of speculative currency trading: brokers and dealers or market makers. Brokers serve as the agent and the customer in the broader FX market, which is looking for the best price on the retail market and to act on behalf of retail customers. They accused the commission or to increase the price beyond the mining market.Dealers or market makers, on the contrary, are usually the main retail customers against the deal and they are ready to quote price agreed upon - a client can not act on this price. Assessing the suitability of currency trading service, the customer must consider the consequences if it acts on the main or agent.When the service acts as an agent, the consumer is usually assured of the best known value of the internal FX dealer price.When the service acts as a basic, no commission is paid, but the price offered may not be the best on the market, because the provider takes the other side of the transaction, will be a conflict of interest. [Edit] Non-Bank Foreign Exchange Companies Non-bank foreign exchange companies offer currency exchange and international payments to individuals and companies. This is also known as foreign exchange brokers, but different, that they do not offer speculative trading but currency exchange with payments.This is usually a physical delivery of cash to a bank account. Send money home offers a thorough comparison of all the services offered by the major non-bank foreign exchange companies. Presumably, the United Kingdom, 14% of cash transfers / payments [12] is a means of foreign exchange companies. [13] The company's selling point is that usually offer better rates or cheaper payments than the customer's bank. These companies differ from Money Transfer / delivery company, they generally offer higher quality service. [Edit] Money transfer / delivery company Money transfer companies / transfer companies performing high-volume low-value transfers generally economic migrants to return home. In 2007, Aite Group estimated that there were 369 billion dollars in remittances (8% increase over year ago). The four largest markets (India, China, Mexico and the Philippines) to 95 billion dollars. The largest and most well-known provider is Western Union, with 345,000 employees worldwide, the United Arab Emirates Currency and Financial Services Ltd [edit] [Edit] Trading characteristics Most traded currencies [3] Currency distribution of reported FX market turnover The title of ISO 4217 currency code (Symbol)% daily share (April 2007) 1 and the U.S. Dollar U.S. Dollar ($) 86.3% Euro 2 Euro (€) 37.0% 3 Japanese yen JPY (¥) 17.0% 4 Pound Sterling Pound Sterling (£) 15.0% 5 Swiss Franc CHF (fr) 6.8% 6 Australian Dollar AUD ($) 6.7% 7 Canadian Dollar (CAD $) 4.2% 8-9 Swedish krona SEK (kr) 2.8% 8-9 Hong Kong dollar HKD ($) 2.8% 10 Norwegian krone NOK (kr) 2.2% 11 New Zealand dollar NZD ($) 1.9% 12 Mexican Peso MXN ($) 1.3% 13 Singapore Dollar SGD ($) 1.2% 14 South Korean won KRW (₩) 1.1% Other 14.5% Total 200% There is no federal or central market is cleared most of FX trading, and the border is very little regulation. Due to-the-counter (OTC) nature of currency markets, there is but a number of interconnected marketplaces, where different currency instruments are traded.This implies that a single currency but also a number of different rates (prices), depending on what bank or market Maker is a trade and where it is. In practice, tariffs are often very close, otherwise they could be used by arbitrageurs instantaneously. Due to London's dominance in the market, in particular currency 's quoted price is usually the London market. A joint venture of the Chicago Commodity Exchange and Reuters, which Fxmarketspace opened in 2007 and strove, but the role of the central market clearing mechanism. [Edit] The main trading center in London, but in New York, Tokyo, Hong Kong and Singapore as well as all the important centers. Banks all over the world participate. Currency trading happens continuously throughout the day, as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends. Changes in exchange for Rates usually caused by actual monetary flows as well as expectations of changes in monetary flows caused by changes in gross domestic product (GDP), inflation (Purchasing Power Parity Theory), interest (interest parity, domestic Fisher effect International Fisher effect), budget and trade deficits or surpluses, Great border M & transactions, and other macroeconomic conditions. Important in public, often scheduled dates, so many people have the same news at the same time. But the big banks have an important advantage, they can see their clients' orders. Currencies are traded against each other. Each currency pair in which the individual is a commercial product is traditionally celebrated XXXYYY or XXX / YYY, where XXX and YYY is the ISO 4217 international three-letter currency code involved. The first currency (XXX) is the main currency is linked to any other currency quoted in (YYY), which is called the counter currency (or quote currency). For example, quote EURUSD (Euro / US dollar) price of Euro 1.5465 U.S. dollars, expressed as means 1 Euro = 1.5465 U.S. dollars. Historically, the main currency was the strongest currency creation of the couple. However, when the euro was created, ordered, the European Central Bank, it has always been the main currency of any Mating. Factors that will affect both XXX and XXXYYY XXXZZZ. This causes positive currency correlation and XXXYYY XXXZZZ. Place on the market, according to the study of bis most traded products: · EURUSD: 27% · USDJPY: 13% · GBPUSD (also called cable): 12% And the U.S. currency was involved in 86.3% operations, after the Euro (37.0%), yen (17.0%) and sterling (15.0%) (see table).Volume percentages of all individual currencies add to 200% because each transaction consists of two currencies. Trade has increased significantly since the euro currency since January 1999 he created, how long before the foreign exchange market will remain dollar-oriented is an open debate. Until recently, trade and non-euro European currencies would zzz usually involved two trades: EURUSD and USDZZZ. The only exception to this is the EURJPY, which is determined by the currency pair traded on the interbank spot market. The dollar has eroded 2008 years, the interest of reference using the Euro currency for goods prices (as oil) and a larger proportion of foreign reserves by banks has increased sharply. Producing operations in the country's currency, AUD, NZD, CAD, also increased. [Edit] defined by FX Rates See also: rate After the theories explains the fluctuations in FX rates floating exchange rate regime (in a fixed exchange rate regime, FX rates are set by the Government): (A) the international parity conditions: Relative Purchasing Power Parity, interest parity, domestic Fisher effect International Fisher effect. However, above a certain logical theories to explain fluctuations in exchange rates, but it is uncertain theories because they are loaded with assumptions based on [such as the free movement of goods, services and capital], who rarely refers to real life. (B) the balance of payments model (see course): This model, however, focuses mainly tradable goods and services, ignoring the growing role of global capital flows. Can not provide any explanation of continuous assessment of U.S. dollars during 1980 and most of 1990 amid increasing U.S. current account deficit. (C) asset market model (see course): views of the currency, which is an important asset class investment portfolio construction. Most asset prices influence people's desire to maintain the volume of assets, which in turn depends on their expectations of the future value of these assets. Asset market model of exchange rate determination that the exchange rate between two currencies is the price that just balances relative supply and demand of assets denominated in those currencies. " No model so far to explain the management of FX price levels and volatility in longer time horizons. A short period (less days) algorithm can be designed forecasting prices. Large and small institutions and individual professional traders do not comply with the profits from it. It is clear from above models, many of the macroeconomic factors that influence rates, and in the end, currency prices as a result of dual forces of demand and offer.
ليست هناك تعليقات:
إرسال تعليق