Currency Market
First, the term is
The Forex market forex market for international transactions is where it would be built.
In most markets, there is no specific physical location, while foreign exchange markets, provided that both parties agree to participate in a certain price. But it meant that the price is also here, as in other markets and the question why is an exchange ratio, trade name and one coin from another, or several other currencies through the convergence of the exchange offer.
Import demand in foreign currencies (peseta Exchange imported) and (foreign loans) based on the following factors:
-Scales in or income.
-For the prize.
-Investments within.
-Differential benefits.
-The balance of payments.
-Delivery of foreign currency exports and capital, which depends on:
-Global and International Business Performance.
For the prize.
differential benefits.
-The quality and competitiveness of domestic production.
This is how the exchange rate in Libreville, fully determined, but it is not true, he had to explain various theories of their formation.
II. functions and characteristics of money market instruments
The Forex market:
-For us, the transfer of purchasing power.
-The financing of international operations.
-Provide, through their Forex trading tools and hedge-interest rates.
In addition, we found that the Forex market has the following properties:
-This information can be transferred quickly to market (efficiency) of all players in real time.
Product-homogeneidade: money. It really should be the Act of uniform price means that the same product for the same price, regardless of where you make the transaction. This is made possible through arbitration.
-Great transparency and integrity, there's plenty of supply and demand, perfect for the market almost perfect.
Active participants in the Forex market can be divided into stream including central banks, financial institutions, brokers, and agents of change, large international companies and other financial intermediaries, and indirectly, as a non-financial institutions, investors, institutions and individuals.
III. types of operations in the foreign exchange market should be
The operations for the Forex market.
The operations are money in the local currency market and stains everything in Exchange for a currency at a certain price and then the relative amount of money available to make no more than two working days (Saturdays only not taken into account) and it occurs after surgery.
Technically speaking, if called, date of payment and the value placed on it, are two consecutive days, the operation was successful and manage practical reasons.
The Forex market is a global market, so you have the temporary differences between the different time zone difficulties to overcome, so that the delivery date or the day cannot be at work the next day.
-the trading parameters: the money market for the supply of its operations came into effect more than two days to be called after each transaction. unusual spot price and currency or another date (forward), the impact the diversion of two main factors:
(A) in their respective currencies spread
B) trend up or down its currency
Usually compensate for the difference in interest rates and foreign exchange effects. Other times, however, when some recovery for loss of market value or currency is immediately before it was known, is already on the long-term price will be based on market expectations in a given currency, dragged for interest rates.
We have already mentioned, usually the price near future cash or spot price or, if it happens, rising futures prices, you can check out the site, a high premium on foreign exchange transactions should be short term if the price is higher than the futures price is high, some would say, is the currency at a discount. In General, a weak currency is high or low on these trading bonus.
These bonuses of various interests of money for a certain period of time.
directly (totally) long-term trading operation time can be divided into, easy change of date in the future, including, usually by non-financial corporations and safe sex buy exchange rate used; and term involved or satchel selling and money to buy or sell or funds and the Bank and Caisse d ' Epargne, faults and other currency trading out at maturity.
They also include the Exchange model for working days dealing with the next party, while the second part is a cash transaction with Tom or name change-. Is the last action on futures and currencies in different times and places, such as Exchange to buy or sell and collect this kind of transaction, including funds of two different currencies, although moved deadline.
--The future: these fees are negotiated under direct contract under the standard form in the organized market, instead of relying on the functioning of the Office.
Trading options: among them, the holder or the buyer the right but not the obligation, to these operations, as well as another editor or the seller to buy or sell a currency. These rental options market organized and unorganized, differentiation, including contractual terms or market.