The foreign exchange market is a massive global market where trillions of dollars are traded on a daily basis. The market is primarily conducted directly between counterparties rather than through a central clearing house. The market is made up of a wide variety of participants.
The market makers, or liquidity providers, are generally banks. The end users include; currency speculators, companies involved in import/export, fund managers with international portfolios and central banks. The market consists of a variety of 'instruments' or contracts but the big four are the 'spot' market, the 'forward' market, the 'swap' market and the 'currency options' market. The spot market is by far the most accessible and popular for private investors.
The market makers, or liquidity providers, are generally banks. The end users include; currency speculators, companies involved in import/export, fund managers with international portfolios and central banks. The market consists of a variety of 'instruments' or contracts but the big four are the 'spot' market, the 'forward' market, the 'swap' market and the 'currency options' market. The spot market is by far the most accessible and popular for private investors.
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