Tag Archives | Forex Management

Characteristics of the Foreign Exchange Market | Forex Management

The following points highlight the top seven characteristics of foreign exchange market. The characteristics are: 1. Most Liquid Market in the World 2. Most Dynamic Market in the World 3. Twenty-Four Hour Market 4. Market Transparency 5. International Network of Dealers 6. Most Widely Traded Currency is the Dollar 7. "Over-The-Counter" Market with an "Exchange-Traded" Segment. Characteristic # 1. Most [...]

By |2017-11-14T06:26:55+05:30November 14, 2017|Foreign Exchange|Comments Off on Characteristics of the Foreign Exchange Market | Forex Management

Determination of Exchange Rates: 5 Approaches | Forex Management

The following points highlight the five main approaches used for determining exchange rates. The  approaches are: 1. The Purchasing Power Parity Approach 2. The Balance of Payments and the Internal-External Balance Approach 3. The Monetary Approach 4. The Portfolio Balance Approach 5. Interest Rate Parity. 1. The Purchasing Power Parity Approach: Purchasing Power Parity (PPP) theory holds that in the [...]

By |2017-11-14T06:26:55+05:30November 14, 2017|Exchange Rates|Comments Off on Determination of Exchange Rates: 5 Approaches | Forex Management

Participants of Foreign Exchange Market | Forex Management

The main participants in the foreign exchange market include foreign exchange dealers, financial and non-financial customers, central banks and brokers. Participant # 1. Foreign Exchange Dealers: Most commercial banks in the United States customarily have bought and sold foreign exchange for their customers as one of their standard financial services. But beginning at a very early stage in the development [...]

By |2017-11-14T06:26:55+05:30November 14, 2017|Foreign Exchange|Comments Off on Participants of Foreign Exchange Market | Forex Management
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