A Study of Awareness About Forex Market at Dharwad

A STUDY OF AWERENESS ABOUT FOREX MARKET AT DHARWAD
A STUDY OF AWARENESS ABOUT FOREX MARKET

AT DHARWAD:
INTRODUCTION
The foreign exchange market is a global decentralized or over the counter market for the
trading of currencies. This market determines forex rates for every currency. It includes all
aspects of buying, selling and exchanging currencies at current or determined prices. In terms
of trading volume it is by far the largest market in the world.
As the forex markets provide good amount of returns with the help of speculation and
arbitrage techniques along with different kinds of hedging techniques like forwards swaps
options and futures to minimise the risk associated with forex market trading.
Basicaly the study is to know or check the people's knowledge and also their opinion about
the risk and return from the forex market at Dharwad. As Dharwad is a literate region where
most of the people are literate so they might have enough knowledge about forex market.
The main participants in this market are the larger international banks. Financial centres
around the world function as anchors of trading between a wide range of multiple types
of buyers and sellers around the clock, with the exception of week ends Since currencies are
always traded in pairs. This basic knowledge must to be known to the people which is being
expected by me before entering to the study which would be as a positive side of the study.
OBJECTIVE OF THE STUDY

1) To know the opinion about forex market at Dharwad
2) To know the knowledge about forex market at Dharwad.
3) To know the returns which they are getting.
4) To know about their techniques towards forex market risk.
STATEMENT OF THE PROBLEM

Statement of the problem is that more number of people at Dharwad might not be awared
much about forex markets which may lead to a research and are quite important for them if
they plan to travel outside the country or want to have another stream of income. Here
research methodologies like interview, questionnaire, observations are being used to address
the problem.
SCOPE
The study has been undertaken to know the level of awareness about forex market.
The study has to reveal in detail about the level of awareness about forex market at Dharwad.
JSS BANASHANKARI ARTS, COMMERCE AND S.K.GUBBI SCIENCE COLLEGE VIDYAGIRI DHARWAD.
LIMITATION
Following are the different limitations of the study-
 Smaller sample size may not give accurate results.
 Ignorant attitude of the respondants may lead to end the study with limited
information.
 Usage of limited tools and techniques.
 Respondants opinion may change in coming days hence the project has limited
validity.
RESEARCH METHODOLOGY
Data collection methods:
Primary data: Primary data is collected by approaching the people directly through
questionnaire at Dharwad.
Secondary data: Secondary information is collected from internet.
Tools and Techniques:

Questionnaire is the only technique has been used for the study to find the
level of awareness about forex market at Dharwad.
QUESTIONNAIRE:
Name:
Occupation:
Respected Sir/Madam
I SANJAY KARADI Student of JSS College Dharwad perceiving M.COM doing
project entitled “A STUDY OF AWARENESS ABOUT FOREX MARKET AT
DHARWAD” for fulfilment of the requirement for the award of degree (M.COM). So I
kindly request you to fill the questionnaire.
1) Do you know about forex market?

A. Yes B. No
2) Have you met any broker to know about forex market?

A. Yes B. No
. 3) Are you interested in forex market trading?

A. Yes B. No
. 4) Do you know what it is foreign exchange rate?

A. Yes. B. No
5) Have you traded at least once in forex market?

A. Yes. B. No
6) Which is the most famous forex market?

A) Sydney B) London C) New York D) France
7) Do you think that forex markets are profitable?

A. Yes B. No
8) Do you think forex trading is riskier?

A. Yes B. No
9) Which is the most stable currency in the world market?

A) US DOLLOR B) EURO C) INDIAN RUPEE D) POUND
10) Do you have any idea about different Hedging techniques?

A. Yes B. No
INDUSTRIAL PROFILE
Industry profile:
History:
Ancient
Currency trading and exchange first occurred in ancient times. Money-changers were living
in the Holy Land in the times of the Talmudic writings. These people used city stalls, and at
feast times the Temple's Court of the Gentiles instead. Money-changers were also the
silversmiths and/or goldsmiths of more recent ancient times.
Medieval and later
During the 15th century, the Medici family were required to open banks at foreign locations
in order to exchange currencies to act on behalf of textile merchants. To facilitate trade, the
bank created the account book which contained two columned entries showing amounts of
foreign and local currencies; information pertaining to the keeping of an account with a
foreign bank. During the 17th (or 18th) century, Amsterdam maintained an active Forex
market. In 1704, foreign exchange took place between agents acting in the interests of
the Kingdom of England and the County of Holland.
Early modern
Alex. Brown & Sons traded foreign currencies around 1850 and was a leading currency
trader in the USA. In 1880, J.M. do Espírito Santo de Silva applied for and was given
permission to engage in a foreign exchange trading business. The year 1880 is considered by
at least one source to be the beginning of modern foreign exchange: the gold standard began
in that year. Prior to the First World War, there was a much more limited control of
international trade. Motivated by the onset of war, countries abandoned the gold standard
monetary system.
Modern to post-modern
From 1899 to 1913, holdings of countries' foreign exchange increased at an annual rate of
10.8%, while holdings of gold increased at an annual rate of 6.3% between 1903 and 1913.At
the end of 1913, nearly half of the world's foreign exchange was conducted using the pound
sterling The number of foreign banks operating within the boundaries of London increased
from 3 in 1860, to 71 in 1913. In 1902, there were just two London foreign exchange
brokers. At the start of the 20th century, trades in currencies was most active in Paris, New
York City and Berlin; Britain remained largely uninvolved until 1914. Between 1919 and
1922, the number of foreign exchange brokers in London increased to 17 and in 1924, there
were 40 firms operating for the purposes of exchange. During the 1920s,
the Kleinwort family were known as the leaders of the foreign exchange market, while
Japheth, Montagu & Co. and Seligman still warrant recognition as significant FX traders. The
trade in London began to resemble its modern manifestation. By 1928, Forex trade was
integral to the financial functioning of the city. Continental exchange controls, plus other
factors in Europe and Latin America, hampered any attempt at wholesale prosperity from
trade for those of 1930s London.
After World War II
In 1944, the Bretton Woods Accord was signed, allowing currencies to fluctuate within a
range of ±1% from the currency's par exchange rate. In Japan, the Foreign Exchange Bank
Law was introduced in 1954. As a result, the Bank of Tokyo became the centre of foreign
exchange by September 1954. Between 1954 and 1959, Japanese law was changed to allow
foreign exchange dealings in many more Western currencies.
U.S. President, Richard Nixon is credited with ending the Bretton Woods Accord and fixed
rates of exchange, eventually resulting in a free-floating currency system. After the Accord
ended in 1971, the Smithsonian Agreement allowed rates to fluctuate by up to ±2%. In 1961–
62, the volume of foreign operations by the U.S. Federal Reserve was relatively low. Those
involved in controlling exchange rates found the boundaries of the Agreement were not
realistic and so ceased this in March 1973, when sometime afterward none of the major
currencies were maintained with a capacity for conversion to gold, organizations relied
instead on reserves of currency. From 1970 to 1973, the volume of trading in the market
increased three-fold. At some time some of the markets were "split", and a two-tier currency
market was subsequently introduced, with dual currency rates. This was abolished in March
1974.
Reuters introduced computer monitors during June 1973, replacing the telephones and telex
used previously for trading quotes.
Markets close
Due to the ultimate ineffectiveness of the Bretton Woods Accord and the European Joint
Float, the forex markets were forced to close sometime during 1972 and March 1973. The
largest purchase of US dollars in the history of 1976 was when the West German government
achieved an almost 3 billion dollar acquisition This event indicated the impossibility of
balancing of exchange rates by the measures of control used at the time, and the monetary
system and the foreign exchange markets in West Germany and other countries within
Europe closed for two weeks.
After 1973
In developed nations, the state control of the foreign exchange trading ended in 1973 when
complete floating and relatively free market conditions of modern times began. Other sources
claim that the first time a currency pair was traded by U.S. retail customers was during 1982,
with additional currency pairs becoming available by the next year. On 1 January 1981, as
part of changes beginning during 1978, the People's Bank of China allowed certain domestic
"enterprises" to participate in foreign exchange trading. Sometime during 1981, the South
Korean government ended Forex controls and allowed free trade to occur for the first time.
During 1988, the country's government accepted the IMF quota for international trade.
STRUCTURE OF FOREX MARKET
Structure of a typical forex market is as shown below-
But the structure of the forex market is rather unique because major volumes of transactions
are done in Over-The-Counter (OTC) market which is independent of any centralized system
(exchange) as in the case of stock markets.
FEATURES OF FOREX MARKET

1)It has huge trading volume, representing the largest asset class in the world leading to
high liquidity.
2)It has geographical dispersion.
3)It has continuous operation: 24 hours a day except for weekends, i.e., trading from
22:00 GMT on Sunday (Sydney) until 22:00 GMT Friday (New York);
4) The variety of factors that affect exchange rates.
5) The low margins of relative profit compared with other markets of fixed income; and
6) The use of leverage to enhance profit and loss margins and with respect to account size.
MARKET PARTICIPANTS
Commercial companies
An important part of the foreign exchange market comes from the financial activities of
companies seeking foreign exchange to pay for goods or services. Commercial companies
often trade fairly small amounts compared to those of banks or speculators, and their trades
often have a little short-term impact on market rates. Nevertheless, trade flows are an
important factor in the long-term direction of a currency's exchange rate. Some multinational
corporations (MNCs) can have an unpredictable impact when very large positions are
covered due to exposures that are not widely known by other market participants.
Central banks
National central banks play an important role in the foreign exchange markets. They try to
control the money supply, inflation, and/or interest rates and often have official or unofficial
target rates for their currencies. They can use their often substantial foreign exchange
reserves to stabilize the market. Nevertheless, the effectiveness of central bank "stabilizing
speculation" is doubtful because central banks do not go bankrupt if they make large losses as
other traders would. There is also no convincing evidence that they actually make a profit
from trading.
Foreign exchange fixing
Foreign exchange fixing is the daily monetary exchange rate fixed by the national bank of
each country. The idea is that central banks use the fixing time and exchange rate to evaluate
the behaviour of their currency. Fixing exchange rates reflect the real value of equilibrium in
the market. Banks, dealers, and traders use fixing rates as a market trend indicator. The mere
expectation of a central bank foreign exchange intervention might be enough to stabilize the
currency. However, aggressive intervention might be used several times each year in
countries with a dirty float currency regime. Central banks do not always achieve their
objectives. The combined resources of the market can easily overwhelm any central
bank. Several scenarios of this nature were seen in the 1992–93 European Exchange Rate
Mechanism collapse, and in more recent times in Asia.
Investment management firms
Investment management firms (who typically manage large accounts on behalf of customers
such as pension funds and endowments) use the foreign exchange market to facilitate
transactions in foreign securities. For example, an investment manager bearing an
international equity portfolio needs to purchase and sell several pairs of foreign currencies to
pay for foreign securities purchases.
Some investment management firms also have more speculative specialist currency
overlay operations, which manage clients' currency exposures with the aim of generating
profits as well as limiting risk. While the number of this type of specialist firms is quite
small, many have a large value of assets under management and can, therefore, generate large
trades.
Retail foreign exchange traders
Individual retail speculative traders constitute a growing segment of this market. Currently,
they participate indirectly through brokers or banks. Retail brokers, while largely controlled
and regulated in the US by the Commodity Futures Trading Commission and National
Futures Association, have previously been subjected to periodic foreign exchange fraud.. To
deal with the issue, in 2010 the NFA required its members that deal in the Forex markets to
register as such Forex CTA instead of a CTA. Those NFA members that would traditionally
be subject to minimum net capital requirements, FCMs and IBs, are subject to greater
minimum net capital requirements if they deal in Forex. A number of the foreign exchange
brokers operate from the UK under Financial Services Authority regulations where foreign
exchange trading using margin is part of the wider over-the-counter derivatives trading
industry that includes contracts for difference and financial spread betting.
Non-bank foreign exchange companies
Non-bank foreign exchange companies offer currency exchange and international payments
to private individuals and companies. These are also known as "foreign exchange brokers"
but are distinct in that they do not offer speculative trading but rather currency exchange with
payments (i.e., there is usually a physical delivery of currency to a bank account).
It is estimated that in the UK, 14% of currency transfers/payments are made via Foreign
Exchange Companies. These companies' selling point is usually that they will offer better
exchange rates or cheaper payments than the customer's bank. These companies differ from
Money Transfer/Remittance Companies in that they generally offer higher-value services.
The volume of transactions done through Foreign Exchange Companies in India amounts to
about US$2 billion per day This does not compete favourably with any well-developed
foreign exchange market of international repute, but with the entry of online Foreign
Exchange Companies the market is steadily growing. Around 25% of currency
transfers/payments in India are made via non-bank Foreign Exchange Companies. Most of
these companies use the USP of better exchange rates than the banks. They are regulated
by FEDAI and any transaction in foreign Exchange is governed by the Foreign Exchange
Management Act, 1999 (FEMA).
Money transfer/remittance companies and bureaux de change
Money transfer companies/remittance companies perform high-volume low-value transfers

generally by economic migrants back to their home country. In 2007, the Aite
Group estimated that there were $369 billion of remittances (an increase of 8% on the
previous year). The four largest foreign markets (India, China, Mexico, and the Philippines)
receive $95 billion. The largest and best-known provider is Western Union with 345,000
agents globally, followed by UAE Exchange. Bureaux de change or currency transfer
companies provide low-value foreign exchange services for travellers. These are typically
located at airports and stations or at tourist locations and allow physical notes to be
exchanged from one currency to another. They access foreign exchange markets via banks or
non-bank foreign exchange.
HEDGING TECHNIQUES
Hedging with Forwards

Hedging refers to managing risk to an extent that makes it bearable. In international
trade and dealings foreign exchange play an important role. Fluctuations in the
foreign exchange rate can have significant impact on business decisions and
outcomes. Many international trade and business dealings are shelved or become
unworthy due to significant exchange rate risk embedded in them. Historically, the
foremost instrument used for exchange rate risk management is the forward contract.
Forward contracts are customized agreements between two parties to fix the exchange rate
for a future transaction. This simple arrangement would easily eliminate exchange rate risk,
but it has some shortcomings, particularly getting a counter party who would agree to fix the
future rate for the amount and time period in question may not be easy.
Hedging with Futures
Noting the shortcomings of the forward market, particularly the need and the
difficulty in finding a counter party, the futures market came into existence. The
futures market basically solves some of the shortcomings of the forward market. A
currency futures contract is an agreement between two parties – a buyer and a seller –
to buy or sell a particular currency at a future date, at a particular exchange rate that is
fixed or agreed upon today. This sounds a lot like the forward contract. In fact the
futures contract is similar to the forward contract but is much more liquid. It is liquid
because it is traded in an organized exchange future market.
Hedging using Options
A currency option may be defined as a contract between two parties – a buyer and a
seller - whereby the buyer of the option has the right but not the obligation, to buy
or sell a specified currency at a specified exchange rate, at or before a specified date,
from the seller of the option. While the buyer of option enjoys a right but not
obligation, the seller of the option nevertheless has an obligation in the event the
buyer exercises the given right. There are two types of options:
• Call options – gives the buyer the right to buy a specified currency at a specified
exchange rate, at or before a specified date.
• Put options – gives the buyer the right to sell a specified currency at a specified
exchange rate, at or before a specified date.
Hedging using Swaps
A currency swap, sometimes referred to as a cross-currency swap, involves the exchange of

interest – and sometimes of principal – in one currency for the same in another currency.
Interest payments are exchanged at fixed dates through the life of the contract. It is
considered to be a foreign exchange transaction and is not required by law to be shown on
a company's balance sheet
The Point of Currency Swaps
Currency swaps were originally done to get around exchange controls, governmental
limitations on the purchase and/or sale of currencies. Although nations with weak and/or
developing economies generally use foreign exchange controls to limit speculation against
their currencies, most developed economies have eliminated controls nowadays.
So swaps are now done most commonly to hedge long-term investments and to change the
interest rate exposure of the two parties. Companies doing business abroad often use currency
swaps to get more favourable loan rates in the local currency than they could if they
borrowed money from a bank in that country.
Company profile:
Hotforex.Com:
over1,500,000
Live Accounts Opened
more than200+
Employees Globally
over25
Industry Awards
more than27
Supported Languages
Hot Forex is an award winning forex and commodities broker, providing trading services and
facilities to both retail and institutional clients. Through its policy of providing the best
possible trading conditions to its clients and allowing both scalpers and traders using expert
unrestricted access to its liquidity, HotForex has positioned itself as the forex broker of
choice for traders worldwide.
Hot Forex offers various accounts types, trading software and tools to facilitate individuals
and institutional customers to trade Forex and Derivatives online. All
Retail, Affiliates and White Label clients have the opportunity to access various spreads and
liquidity via state of the art automated trading platforms. HotForex provides an unparalleled
variety of account options that clients can select to enjoy a tailored trading experience that
perfectly suits their needs. Coupled with superior trading conditions and lightning fast
execution, Hot Forex provides all the tools and services needed for clients of any level to
realise their trading ambitions.
Not just a mission, it's a promise
“ Our Mission is To Provide the Best Customer Service to our Clients by maintaining a
Superb Client Centric Culture. In this way we will achieve our Vision of maintaining our
position as a Market Leader known for our Superior Customer Services.
XM.COM:
BIG. FAIR. HUMAN.
Trade Forex with XM. Trade with a Big, Fair and Human Broker.
Big, Established and Experienced With over 2,500,000 clients since it was founded in
2009, XM has grown to a large and well established international investment firm and has
become a true industry leader.Our extensive experience combined with support for well
over 30 languages, makes XM the broker of choice for traders of all levels, anywhere.
We have the expertise and the resources to help everybody realize their investment
goals, like only a big broker can.
 Over 2,500,000 clients

 Traders from 196 countries
 25+ secure payment methods
 16 full feature trading platforms
 More than 30 languages supported
 24/5 personal customer service
Our management visited over 120 cities around the world to connect with our clients and
partners, because we believe in the value of real human interaction on a face to face basis.
We have hosted hundreds of seminars around the world to educate traders, enabling them to
make better trading decisions. Over the years, traders have embraced XM for our refreshing
approach to customer service and outstanding support. As a result, XM enjoys a high level of
client retention.
XM fosters a sustainable workforce development through a wide spectrum of cultures, and
approaches your needs with openness to cultural, national, ethnic and religious diversity. Our
advanced trading platforms and flexible trading conditions suit a diverse global clientele. Our
expertise is derived from extensive experience and in-depth knowledge of the global financial
markets. We are dedicated to delivering superior services in currency trading, along with
CFDs, equity indices, precious metals, and energies.
The operational philosophy we follow is simple: by ensuring client satisfaction, we earn their
loyalty. Our reputation is linked to our credibility, both of which stem from our ability to
service our clients in the way that they expect and deserve. By monitoring industry trends and
keeping up to date with the latest technologies, we remain ready to adapt to the needs of our
clients as they become more sophisticated and more demanding. We have never made any
compromises in factors that can affect client performance, which is why we offer tight
spreads and the best execution.
Awards
• Best FX Broke Europe 2018 - World Finance
• Best Forex Execution Broker 2017 - Shares
FXTM:
FXTM is an acronym for ForexTime.com, which is a new platform to the world of forex
investing, having only arrived on the scene in 2012 as the brainchild of Andrew Dashin, who
is the founder of Alpari, a well known line of brokerage companies.
Andrew Dashin has been devoting his time to developing forex trading in Europe and the
United States since 1998. His newest venture is Forex Time which he designed to
monopolize on every other market.
The FXTM forex broker is owned and operated by its holding company FT Global Services
Ltd and is based in Cyprus and Belize where it is overseen by the strict financial regulatory
agency known as the Cyprus Securities Exchange Commission in Cyprus and by
the International Financial Services Commission (IFSC) in Belize. In South
Africa, FOREXTIME’s financial activities are overseen and regulated by the Financial
Service Board (FSB).
In addition to offering the most popular forex pairs for trading, FXTM forex broker provides
options on a variety of financial assets and instruments that include Contracts for Difference
(CFDs) and Exchange Traded Funds (ETFs) on spot metals, stocks, commodities and
indices.
The broker has quickly become one of the fastest growing brokers in the industry with offices
around the world and headquarters in the Forex time Tower in Cyprus. The firm plans to
open a new office in the heart of Europe’s trading capital of London, UK.
Awards:
Forex Broker of the Year2017, Best FX Broker Asia, Best Customer Service Global, Forex
Broker Firm of the Year Europe, Best Online Forex Trading Company Nigeria.
Headquarters
Limassol, Limassol
Year Founded
2012
Company Type
Privately Held
Size
51-200 employees
Multi bank Group:

Multi Bank Group is one of the leading Forex & CFD brokers worldwide. Founded in the
USA in 2005, Multi Bank was one of the first in the foreign exchange industry to launch a
fully transparent electronic Forex and Financial Derivatives Exchange.
Since its inception, Multi Bank has evolved into one of the largest online financial derivatives
providers. Combining prime liquidity, cutting edge technology and first-class customer
service, Multi Bank delivers advanced trading platforms and tight pricing in online ﬁnancial
products, including forex, metals, shares, indices, commodities and cryptocurrencies CFDs.
Multi Bank Group boasts a daily trading volume in excess of US$ 4.6 billion and provides
services to an extensive client-base of over 320,000 customers from across 90 countries
worldwide.
Multi Bank Group is headquartered in Hong Kong and maintains over 15 offices around the
world including in Europe, Asia, Middle East and Latin America. The Group and its
subsidiaries are licensed and regulated worldwide through relevant authorities including
ASIC in Australia, FCA in the UK, Bafin in Germany, FMA in Austria, CNMV in Spain,
FSC in the BVI, CIMA in the Caymans, and RAK in the UAE.
This means clients can trade with full confidence while enjoying complete security of funds,
including segregated accounts, the most favourable trading conditions, including leverage up
to 500:1 on our wide range of 1,000+ products, the tightest spreads in the industry starting
from 0.1 pips, and 100% ECN platform.
It provide traders with access to trade from over 45 forex pairs, and over 1,000 CFD products
including metals, shares, indices, commodities and cryptocurrencies.
Cutting-Edge Trading Platforms.
ECN Technology:
All trades flow through ECN, enabling direct access to over 20 Interbank trading
prices.
Awards & Recognitions:
Multi Bank has been honoured with over 40 awards from financial media and
publications, including “Best FX & CFD Broker (Europe & Asia) 2019” from International
Investor Magazine, “ECN Broker of the Year (Europe) 2019” and “Best Forex Platform
MENA 2019” from International Business Magazine and “Best Financial Derivatives Broker
2019” from Global Banking & Finance Review.
Superior Trading Experience:
Multi Bank provides a wide range of advanced trading tools to help traders manage
their trading.
Highest Security of Funds:
In addition to strict compliance with financial regulations, MultiBank provides fully
segregated accounts for clients’ funds, and provides additional measures to secure clients’
funds through custodial bank facilities, funds guarantee and other measures.
IG Group:
IG Group is a UK-based company providing trading in financial derivatives such as contracts
for difference and financial spread betting and, as of 2014, stockbroking to retail traders.
While the majority of the company's activities are based in the UK, the company has
expanded internationally. IG is regulated by the FCA, the UK's financial authority body. It is
listed on the London Stock Exchange and is a constituent of the FTSE 250.
Type
Public Limited Company

Traded as
LSE: IGG
Industry
Financial Services
Founded
1974
Headquarters
London, UK
Key people
Andy Green, (Chairman)
June Felix, (CEO)
Services
Online Forex trading, CFDs, spread betting, shares trading
Revenue
£590.2 million (2018)[1]
Operating income
£281.1 million (2018)[1]
Net income
£226.4 million (2018)[1]
Subsidiaries
Nadex
Daily FX
Website
www.iggroup.com
www.ig.com
Operations
In 2012, IG Group consolidated its business in the UK under one brand, IG. IG Group is now,
therefore, the sole trading name of the operating companies.IG Index, which offers spread
betting on financial markets as well as binary options under the supervision of the Financial
Conduct Authority in the UK.IG Markets, which offers CFDs on a similar range of financial
markets. IG Markets Limited is authorised by the Financial Conduct Authority in the UK.
Central Banks of all countries participate in the Forex market to some extent. Most of the
times, this participation is official. Although many times Central Banks do participate in the
market by covert means. This is because every Central Bank has a target range within which
they would like to see their currency fluctuate. If the currency falls out of the given range,
Central Banks conduct open market operations to bring it back in range.

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A STUDY OF AWERENESS ABOUT FOREX MARKET AT DHARWAD

A STUDY OF AWARENESS ABOUT FOREX MARKET

OBJECTIVE OF THE STUDY

STATEMENT OF THE PROBLEM

Tools and Techniques:

1) Do you know about forex market?

2) Have you met any broker to know about forex market?

. 3) Are you interested in forex market trading?

. 4) Do you know what it is foreign exchange rate?

5) Have you traded at least once in forex market?

6) Which is the most famous forex market?

7) Do you think that forex markets are profitable?

8) Do you think forex trading is riskier?

9) Which is the most stable currency in the world market?

10) Do you have any idea about different Hedging techniques?

Medieval and later

After World War II

STRUCTURE OF FOREX MARKET

Structure of a typical forex market is as shown below-

FEATURES OF FOREX MARKET

2)It has geographical dispersion.

4) The variety of factors that affect exchange rates.

Foreign exchange fixing

Investment management firms

Retail foreign exchange traders

Non-bank foreign exchange companies

Money transfer/remittance companies and bureaux de change

Money transfer companies/remittance companies perform high-volume low-value transfers

Hedging with Forwards

Hedging with Futures

Hedging using Options

Hedging using Swaps

A currency swap, sometimes referred to as a cross-currency swap, involves the exchange of

The Point of Currency Swaps

 Over 2,500,000 clients

• Best Forex Execution Broker 2017 - Shares

Multi bank Group:

Public Limited Company

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