Import & Export - Companies who Import or Export goods are buying them in one currency and selling
them in another currency.
Speculation - The FX rate between two currencies varies so the traders can benefit by buying currency at
one rate and selling it at more favourable rate. Speculation makes up by far the largest proportion of
trading in the FX market.
Hedging - Hedging eliminates potential profits or losses. This involves executing an FX transaction which
will exactly offset the profit or loss of the foreign asset caused by the changes in the FX market.
London in the world's largest FX trading centre, followed by New York, Singapore then Hong Kong.
Trading starts in Asian working day followed by London and New York.
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Now Global Groups of Companies Inc. introducing MoneyGram International Money Transfer Services.
Customer can send and Receive Money to anywhere in the World within Minutes.
The money markets and foreign exchange markets are the largest markets in the world today. According
to the Bank for International Settlements, which monitors activity in the world's money markets and
foreign exchange markets, over US$1.4 trillion (US$1,400,000,000,000) is traded on average every single
day.
Foreign Exchange markets allow market participant to exchange one currency for another. One
counterparty buys a specified currency from the other counterparty in exchange for another currency. The
relative amount of the two currencies is determined by the foreign exchange rate between those two
currencies.
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