Radka Hlavnová. Foreign exchange market. (FX Market, Forex Market, Currency market) Is a form of exchange for the global trading of international currencies
(FX Market, Forex Market,Currency market)
Is a form of exchange for the global trading of international currencies
An exchangemarketis a highly organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.
The market in which participants are able to buy, sell, exchange and speculate on currencies.Foreign Exchange Market
Foreign exchange markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors.
Firms: exporters and importers
Banks: shortposition, longposition
Non-bankingentitities: businesstransactions and hedging
Arbitrageurs: profit seekingfromvariations in ratesindifferentmarkets
Speculators: profit seekingfrommovements in exchangeratesClassificationofparticipants
by objects sold:
by type of trade:
(In order to make a responsibledecisionalotof new informationmustbecollected and analyzed)
- Importantissueof risk and liquiditymanagement
FX market had existedlongbeforeinternationalporfolioinvestmentsbecameaswidespreadastoday
The forex market is considered to be the largest financial market in the world.
It is important to realize that the foreign exchange market is not a single exchange, but is constructed of a global network of computers that connects participants from all parts of the world.
The average daily turnover in the global foreign exchange and related markets is continuously growing
FX marketisrelated to export/import activities
(CzechRepublic- EUR/CZK exchange rate, tourism,foreigndirectinvestmentsetc)
Paymentsofservices, foreigndirectinvestments, porfolioinvestments, exchange rate speculationsetc.
SingaporeTHE MAIN TRADING CENTRES
^ Source: Euromoney FX survey FX survey 2012: The Euromoney FX survey is the largest global poll of foreign exchange service providers.'
WitzanyJ.,InternationalFinancialMarkets, VŠE., 2010