Indian Foreign Trade Policy


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Indian Foreign Trade Policy

  1. 1. Foreign Exchange Market<br /> By:<br />Michelle Rodrigues<br />
  2. 2. FOREX: What Is It?<br />FOREX, an acronym for Foreign Exchange, is the largest <br />financial market in the world.<br /> With an estimated $1.5 trillion in currencies traded daily, Forex provides income to millions of traders and large banks worldwide.<br />The foreign exchange market, or the &quot;FX&quot; market, is where the buying and selling of different currencies takes place.<br /> There are three main centers of trading, which handle the majority of allFX transactions—United Kingdom, United States, and Japan.<br />
  3. 3. FOREX : Why?<br />The Purpose of Forex :<br />The foreign exchange market is the mechanism by which <br />currencies are valued relative to one another, and exchanged.<br />The exchange rate is determined through the interaction of <br /> market forces dealing with supply and demand. <br /> Foreign Exchange Traders generate profits, or losses, by <br />speculating whether a currency will rise or fall in value in <br />comparison to another currency.<br />
  4. 4. History<br />The history of stock exchanges can be traced to 12th century France, when the first brokers are believed to have developed, trading in debt and government securities.<br />Unofficial stock markets existed across Europe through the 1600s, where brokers would meet outside or in coffee houses to make trades.<br />The Amsterdam Stock Exchange, created in 1602, became the first official stock exchange when it began trading shares of the Dutch East India Company. <br />
  5. 5. Major Players<br />The main players on the foreign exchange<br />market are : <br />Banksand other financial institutions<br /> Brokers<br /> Customers<br /> Firms<br />Central banks<br />
  6. 6. Major Currencies<br />In the FOREX market most trading takes place in only a few currencies:<br />The U.S. Dollar ($)<br /> European Currency Unit (€) <br /> Japanese Yen (¥)<br />British Pound Sterling (£)<br /> Swiss Franc (Sf)<br />Canadian Dollar (Can$) and<br />The Australian and New Zealand Dollars, to a lesser extent.<br />
  7. 7. Currency Terminology<br />
  8. 8. Types of Accounts<br />Live Account:<br /> Live account is for those people who are ready to explore and experiment with the real world of Currency Trading.<br />Practice Account:<br /> - Practice Account is a great way to get started and learning <br /> the fact, features and specifics of the Forex Market.<br /> - It gives you the best way to learn and practice trading for <br /> free, with no risk of losing money involved.<br />
  9. 9. Business Hours<br /> A 24 Hour Market<br /> The Timings of the Major financial centers:<br />
  10. 10. Types of Transactions<br />
  11. 11. Contd…..<br />
  12. 12. Advantages of Forex Trading <br />
  13. 13. Disadvantages of Forex Trading<br />
  14. 14. Aspects of Forex Trading <br />Although good instincts and speculatory skills are invaluable to any trader, there are also other, more scientific indicators that traders use to decide whether they will buy or sell a certain currency. <br /> These are found by :<br /> Fundamental analysis<br /> Technical analysis<br />A trader may utilize both technical and fundamental analysis before making any forex trades. <br />
  15. 15. Fundamental Analysis<br /> Fundamental Factors include economic and political events (i.e. elections, wars) that occur worldwide. <br /> A trader that makes his or her market decisions in response to these releases and events is using fundamental analysis.<br />Fundamental factors: <br />GDP<br /> GNP<br /> Interest rates<br /> Inflation<br />
  16. 16. Technical Analysis<br /> A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security&apos;s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. <br />A technical analysis is founded on three suppositions:<br /> Movement of the market considers everything.<br /> Movement of prices is purposeful.<br /> History repeats itself.<br />
  17. 17. Thank you<br />