tailieunhanh - Forex Trading Using Intermarket Analysis_2

Tham khảo tài liệu 'forex trading using intermarket analysis_2', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | trade secrets been mentioned often as a potential successor to the . dollar as a benchmark currency. FOREX TRADING MOTIVES In this free-floating environment forex trading volumes have increased remarkably in recent years as banks other financial institutions brokers hedge funds multinational corporations individuals and even central banks have become participants often employing increasingly sophisticated trading strategies. There are three main reasons to get involved in the forex market To convert profits in foreign currencies into a domestic currency to bring gains back home. This applies primarily to international corporations that do business on a global basis and whose bottom line may depend to a great extent on how well they handle their forex transactions. To hedge exposure to risk from changes in forex values. If corporate treasurers are concerned about exchange rate risk between the time a deal is made a product is delivered and payment is made they may want to lock in a profit with a forex position at a favorable rate rather than take the risk of losing money just because currency values might change. A . pension fund may also hedge its exchange rate risk by using a currency overlay program traded by an outside money manager. To speculate on changes in currency values. Although there is a growing awareness of the usefulness of forex trading in commercial transactions in global markets speculation is probably the primary reason for most forex trading today. There is no way to quantify how much of the forex trading volume is for speculation but 14 forex trading using intermarket analysis it has been estimated that more than 95 percent of all forex trading is for speculative purposes and has nothing to do with commercial transactions. THREE MAIN VENUES OF FOREX TRADING INTERBANK MARKET FOR THE BIG BOYS The greatest share of forex trading takes place in the interbank market in the form of currency swaps forwards and other sophisticated transactions. .