Foreign Exchange
Foreign Exchange and currency information for investors, traders and travellers. The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another.
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Foreign Exchange Market size and liquidity
The foreign exchange market is unique because of:
Its trading volumes,
The extreme liquidity of the market,
The large number of, and variety of, traders in the market,
Its geographical dispersion,
Its long trading hours: 24 hours a day (except on weekends),
The variety of factors that affect exchange rates.
The low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
Foreign exchange market trading how to learn ready and be able to trade in the fx exchange market.
Forex, Foreign currency exchange trading advisor for Forex investing. Brokerage details, spot markets, investment strategy, charts and trade advice.
Foreign Exchange is the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion.
Because foreign exchange is an OTC (Over-the-counter) market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 32.4% in April 2006.
Foreign Exchange Speculation
Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, many economists (e.g. Milton Friedman) have argued that speculators perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do. Other economists (e.g. Joseph Stiglitz) however, may consider this argument to be based more on politics and a free market philosophy than on economics.
Large hedge funds and other well capitalized "position traders" are the main professional speculators.
Currency speculation is considered a highly suspect activity in many countries. While investment in traditional financial instruments like bonds or stocks often is considered to contribute positively to economic growth by providing capital, currency speculation does not; according to this view, it is simply gambling that often interferes with economic policy. For example, in 1992, currency speculation forced the Central Bank of Sweden to raise interest rates for a few days to 500% per annum, and later to devalue the krona. Former Malaysian Prime Minister Mahathir Mohamad is one well known proponent of this view. He blamed the devaluation of the Malaysian ringgit in 1997 on George Soros and other speculators.
Gregory Millman reports on an opposing view, comparing speculators to "vigilantes" who simply help "enforce" international agreements and anticipate the effects of basic economic "laws" in order to profit.
Foreign exchange currency
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Foreign Exchange Economic factors
These include economic policy, disseminated by government agencies and central banks, economic conditions, generally revealed through economic reports, and other economic indicators.
Economic policy comprises government fiscal policy (budget/spending practices) and monetary policy (the means by which a government's central bank influences the supply and "cost" of money, which is reflected by the level of interest rates).
Economic conditions include: Government budget deficits or surpluses, Balance of trade levels and trends, Inflation levels and trends, Economic growth and health