Foreign currency trading market is a market where traded currencies of different economy. Here, currencies bought and sold against each other. This commercial market is the largest market in the world, such as over one billion thousands of dollars traded on one day.
The foreign currency trading market is an OTC, over-the-counter derivatives markets, as it has no central localisation or Office where the negotiation process.The market is a global distribution network of interconnected traders that contains the number of banks which have telephone and Internet, the world's foreign exchange trading process is incredibly possible due to the development in the field of electronics.
Why study foreign trade?
The volume of external trade is large, like almost all the countries of the world trade in goods and services.They borrow and lend certain products also invest and donate to accept help from other countries for the improvement and promotion of the economy. Foreign trade is an activity, which helps countries to get good and distributed in other countries.Negotiation between the two countries is equal to domestic transactions.
However, the system of currency used in domestic trade is the same, but in the case of foreign trade, the currencies differ.Therefore, there is a lot of computation involved in pricing of the currencies listed in foreign trade procedure. therefore, to study the techniques and intelligence related to foreign trade is required to reduce risk in business confidence.
Currency Trading on the market can be divided into two parts, on the market of retail and wholesale market in the retail market, travelers swap their currencies to another, these currencies exchanged for notes or traveller's cheques; the amount of work and of its turnover in this market is small, but the difference between the purchase and selling price.
On the other hand, the wholesale market, which is also popular as inter-bank market is a market where the transaction is large amounts, as part of buyers are present in large numbers.
0 comments:
Post a Comment