Forex trading involves trading in currency pairs. There’re a number of attributes to consider, including buy and sell rates, liquidity, and offshore financial centres. Large lot sizes may discourage some traders. Fortunately, there are many ways to participate in the forex market without having to put up a large sum of money upfront. Leverage, or […]
An Exemplary Monetary Co-operation Scenario
An example of monetary co-operation is the Plaza Accord. This agreement between nations in the 1950s paved the way for the Bretton Woods system and the International Monetary Fund. It also laid the groundwork for the creation of global integrated capital markets. However, despite its benefits, the system has been plagued by problems. Plaza Accord […]
How to Deal with Your First Time in Forex Trading?
If you’re considering getting into forex trading, there are a few things you should do before you jump in. First, you should understand what forex trading is all about. Then, you need to learn about risk management and technical analysis. Finally, you should follow a trend. Learn about forex trading There exist a number of […]
The Volume of Foreign Exchange Market Transactions
The FX market is one amongst the largest markets in the world, with $6.6 trillion in trade daily. The top-tier interbank market does account for 51% of the global market’s transactions. This market is dominated by large multinational corporations that must hedge their risks and pay their employees in different countries. Some retail market makers […]
How does an Investment Manager Participate in the Foreign Exchange Market?
There are many facets to the role of an investment manager as a participant in the foreign exchange market. From speculative traders to huge, professional market participants, investment managers purchase and sell currencies. Some also engage in speculative currency trades. And some hedge funds also engage in this activity. Regardless of their role, they all […]
Microstructure of Currency Markets
The foreign exchange market turns out to be the largest financial market in the world. Conventional macroeconomic theories do not account for why people trade in foreign exchange, and they do not explain the short-run determinants of the exchange rate. In the absence of a detailed model of the determinants of short-term fluctuations, it is […]