Market size and liquidity
The Forex market is the most
liquid financial market in the world. Suppliers and the big banks,
institutional investors, the Central Bank, to speculate on currencies,
economics, politics, financial institutions and retail investors. The average
daily volume Forex and related markets grow Global. 2010 triennial Central Bank
survey from the Bank of international settlements of average daily turnover in
April 2010 (against $. 001 $ 1,700.998) $ 3.98 billion. [Time, swaps and other
derivatives, contracts were exchanged 4] 3.98 billion dollars, 1.5 billion
transactions and $ 9223372 trillion in bar.
In April 2010 the trade in the
United Kingdom, for a total of 36.7%, therefore is the most important center of
foreign currency for the time being. United we were 17.9%, Japan 6.2% of sales.
[60]
In April 2013, the first
Singapore exceeds the daily volume average daily $ 383 billion in commercial
transactions of Japan. Then, became the area. United Kingdom (41%), Japan
(5.6%), United States of America (19%) and Singapore (5.7) and Hong Kong (4.1%)
The stock market traded currency
options and futures contracts on developing fast in recent years reached $ 166
million in April 2010 (two sales recorded in April 2007). Foreign exchange
market trading derivatives on behalf of OTC foreign exchange trading volume of
4%. Introduced in 1972 trade futures contracts on currencies at the Chicago
Mercantile Exchange and active, more future recruitment.
Most developed countries in sound
Exchange allows the sale of products (such as futures and options on futures
contracts). These developed countries have fully convertible capital accounts.
To act, because they have no control over the capital of a new Government is
not in the products of their currency. Derivatives, which in many developing
countries. [62] in Korea, India and South Africa and another group of
countries, although some of the exchange rate and capital controls of
derivatives.
To 20% from April 2007 through
April 2010, the foreign exchange trading has since 2004 has increased by three
times. [63] the increase in sales is explained by several factors: the
increasing importance of change as an asset, operators of high frequency
category increased exchange and small investors are an important part of the
market. Growth of electronic execution and choice of the place of performance,
you can reduce market liquidity by increasing transaction costs to attract
greater participation by different types of customers. In particular electronic
commerce through retailers easy foreign exchange markets online portals. In
2010, 10% should reach the daily volume of trading or US $ 150 billion (see
below: amendments to the retailer).
On the currency market, the
broker/dealer, is to negotiate, then there are no changes or clearing house.
Geography is the largest center of trade of the United Kingdom, especially
London, and London trade turnover is estimated with 34.6 percent of the shares
in April 2007 from 36.7% in April 2010. London takes a dominant position in the
market, because the currency quotes in particular are generally market price
for London. For example, when you calculate the overtime rights of the
International Monetary Fund drawing value every day, and refer to the London
market at noon.
