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Presentation On Foreign Exchange Market: Presented By: Sharanabaswa Patil

The document provides an overview of the foreign exchange market. It discusses that the market is worldwide with transactions occurring continuously across different time zones. All major commercial banks and their traders participate in the market, facilitating trades between clients. In addition to banks, hedgers seeking to mitigate risk and speculators taking open positions also engage in the market.

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Hemanth Kumar
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36 views5 pages

Presentation On Foreign Exchange Market: Presented By: Sharanabaswa Patil

The document provides an overview of the foreign exchange market. It discusses that the market is worldwide with transactions occurring continuously across different time zones. All major commercial banks and their traders participate in the market, facilitating trades between clients. In addition to banks, hedgers seeking to mitigate risk and speculators taking open positions also engage in the market.

Uploaded by

Hemanth Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Presentation on Foreign Exchange Market

Presented by : Sharanabaswa Patil

Nature of Foreign Exchange Market


Foreign exchange market is widespread throughout the globe, market participants are specialists, transactions involve immense volume and involvement of variety of transactions. Widespread geographically : foreign exchange market is widespread geographically. Foreign exchange transactions take place in all the countries in the world and in all geographically areas in each country.

All Time Operations : foreign exchange market carries the transactions 24 hrs a day and 365 days a year. In fact, foreign exchange transactions take place every minute in one or the part of the world. All the trading centers work 24 hours a day in view of varying time zones in various countries.

Market Participants :
Who are the Market Participants ? 1) Traders/Brokers : traders are mostly commercial banks who buy foreign exchange at a bid price and sell at a higher price called ask price and thus make a profit. Traders lso include the employess of commercial banks who buy and sell foreign exchange on behalf of their employers. 2) Hedgers : the foreign exchange hedgers are those who limit their potential losses by locking in a guaranteed foreign exchange positions. Many firms engage in foreign exchange hedging.

3) Speculators : Speculator in foreign exchange market is the one who take an open position. The speculator may have foreign currency on-hand or may have promised to deliver foreign currency in a future date. If speculator is in long position, the individual is betting that the price will go up. In contrast, if the speculator is in short position, the individual is betting that the price will go down.

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