Got a tricky question? Receive an answer from students like you! Try us!

Foreign Exchange Dealing Room - Essay Example

Only on StudentShare
Masters
Essay
Miscellaneous
Pages 40 (10040 words)

Summary

The foreign exchange is the value of the currency of one country determined in the currency of another country. It can also be defined as the relative price of two different currencies.
"The foreign exchange market is not a physical institution where the traders meet, transactions are made by telephone and computer rather than face to face" ( Winters Alan, 1991).

Extract of sample
Foreign Exchange Dealing Room


According to the world- wide central banking organization which is the Bank for International Settlements, the amount of daily trading done in the forex market is more than three trillion US Dollars. Thus the trading amount is so much that it is much larger than all of the US stock markets taken together. Here, trading from the whole world is done with or without the involvement of hard cash.
The trading begins in Sydney everyday, and moves first to Tokyo followed by London and then New York as the business day start in every financial sector. The exchange rates are shown around the world continuously on the computer.
The trading takes place when any trader quotes a price for any currency on his machine, and then anyone in the word willing to trade at that particular price can reply to that message and trade. ...
Download paper
Not exactly what you need?

Related Essays

Functions of The Foreign Exchange Dealing Room
Additionally, there is also needs to assess on what are so special in the foreign exchange market, which can simply explains its interesting aspects before reaching to its functions, with referencing attach to Citibank.…
11 pages (2761 words)
Foreign Exchange Risk Analysis
The policies in china resulted in a successful market economy and indigenous private sector. This resulted increase of foreign trade and inward investments. The high growth recorded in China regarding economic activity and manufacturing, prompted many companies to export to establish manufacturing units in China.1…
8 pages (2008 words)
Foreign Exchange Market Intervention
Author also note, though, an obvious experiential puzzle concerning the secrecy of much intervention and propose an additional way in which intervention may be effectual but which has so far conventional little concentration in the literature, namely from side to side its role in remedying a harmonization failure in the foreign exchange market (Adams, Donald and Dale W., 2003).…
10 pages (2510 words)
Foreign Exchange Market
So the more dollar exchanged the greater the value of the peso has. The value of each currency is not really fixed; it may start with a bigger value at the beginning of the day and may decrease as the day ends.…
2 pages (502 words)