A detail on forex market is being provided refering to global forex hours and the need of forex market. DAILY TURNOVER OF THE GLOBAL FOREIGN EXCHANGE. Indian forex market is also explaied with reference to usd inr movement. A brief technical analysis is also provided explaning the different chart types
For full text article go to : https://www.educorporatebridge.com/forex/forex-trading/ Have you ever wondered about the, import-export happening in the countries? Are you new to the concept of Forex Trading? Here is an article on forex trading which will explain you about the Forex Market like why Foreign Exchange happens? , different ways to trade forex, and risks involved in forex trading.
This presentation is a comprehensive presentation of Forex Market. It starts with the history of this market from Pre Gold period, Bretton wood till current floating exchange mechanism and in Indian perspective FERA and FEMA. It then gives you an idea on size, width and extent of this market and post that it covers forex exchange, quotes, and numerical. Finally, it covers few topics like Trade Finance, LIBOR, Balance of Payment & Currency Swaps
For full text article go to : https://www.educorporatebridge.com/forex/forex-trading/ Have you ever wondered about the, import-export happening in the countries? Are you new to the concept of Forex Trading? Here is an article on forex trading which will explain you about the Forex Market like why Foreign Exchange happens? , different ways to trade forex, and risks involved in forex trading.
This presentation is a comprehensive presentation of Forex Market. It starts with the history of this market from Pre Gold period, Bretton wood till current floating exchange mechanism and in Indian perspective FERA and FEMA. It then gives you an idea on size, width and extent of this market and post that it covers forex exchange, quotes, and numerical. Finally, it covers few topics like Trade Finance, LIBOR, Balance of Payment & Currency Swaps
Unit 2.2 Exchange Rate Quotations & Forex MarketsCharu Rastogi
This presentation deals with exchange rate quotations, common currency symbols, direct and indirect quotes, American terms, European terms, cross rates, Bid and Ask rates, Mid rate, Spread and its determinants, Spot markets, Forward Markets, Premium and Discounts, various practices of writing quotations, calculating broken period forward rates, Speculation and arbitrage, Forex futures and Currency Options.
Module - 1 :
The foreign exchange market, structure and organization- mechanics of currency trading
– types of transactions and settlement dates – exchange rate quotations and arbitrage – arbitrage with and without transaction costs – swaps and deposit markets – option forwards – forward swaps and swap positions – Interest rate parity theory.
The aim of this presentation is to help build a better understanding of Forex trading and guide you through the necessary steps needed to become a responsible and successful trader in the foreign exchange market.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
Currency Derivatives with HDFC securities is easy, seamless and online. Know the benefits of Trading in Currency Derivatives and How to trade in Currency Derivatives. More on HDFC securities.
Title: "Euro Currency Market"
Prepared by: Tehseen Khan
1: INTERNATIONAL FINANCIAL MARKET
. The foreign exchange market is a global decentralized market for the trading of currencies
. The main participants in this market are the larger international banks
.The foreign exchange market works through financial institutions, and it operates on several levels
2: EUROCURRENCY MARKET
A Eurocurrency market is a currency market that runs banking services by using foreign currencies set outside of the national market.
3: EUROBOND
A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued.
Unit 2.2 Exchange Rate Quotations & Forex MarketsCharu Rastogi
This presentation deals with exchange rate quotations, common currency symbols, direct and indirect quotes, American terms, European terms, cross rates, Bid and Ask rates, Mid rate, Spread and its determinants, Spot markets, Forward Markets, Premium and Discounts, various practices of writing quotations, calculating broken period forward rates, Speculation and arbitrage, Forex futures and Currency Options.
Module - 1 :
The foreign exchange market, structure and organization- mechanics of currency trading
– types of transactions and settlement dates – exchange rate quotations and arbitrage – arbitrage with and without transaction costs – swaps and deposit markets – option forwards – forward swaps and swap positions – Interest rate parity theory.
The aim of this presentation is to help build a better understanding of Forex trading and guide you through the necessary steps needed to become a responsible and successful trader in the foreign exchange market.
The foreign exchange market or forex market as it is often called is the market in which currencies are traded.
Currency Trading is the world’s largest market consisting of almost trillion in daily volumes
The market continues to rapidly grow. Not only is the forex market the largest market in the world, but it is also the most liquid, differentiating it from the other markets.
There is no central marketplace for the exchange of currency, but instead the trading is conducted over-the-counter.
This decentralization of the market allows traders to choose from a number of different dealers to make trades with and allows for comparison of prices. Typically, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass that on to their clients.
The spot currency market is open twenty-four hours a day, five days a week, with currencies being traded around the world in all of the major financial centers.
All trades that take place in the foreign exchange market involve the buying of one currency and the selling of another currency simultaneously. This is because the value of one currency is determined by its comparison to another currency.
The first currency of a currency pair is called the “base currency,” while the second currency is called the counter currency. The currency pair shows how much of the counter currency is needed to purchase one unit of the base currency.
Currency pairs can be thought of as a single unit that can be bought or sold. When purchasing a currency pair, the base currency is being bought, while the counter currency is being sold.
Forex Capital Markets (FXCM) is an online currency trading firm that offers a free demo account to traders who are new and interested in the foreign exchange market.
It allows you to experience every step of currency trading including choosing currency pairs, deciding how much risk to take, tracking the time and dates of placed trades, deciding how long to stay in the trade, and when to exit the trade. It also allows the placing of stop and limit orders on trades.
Information about trading and specifically about how to use the online trading platform can be found on the FXCM webpage. In addition, FXCM offers FREE interactive online seminars that are extremely useful to both new and experienced currency traders.
Characteristics of foreign exchange
Its huge trading volume representing the largest asset class in the world leading to high liquidity;
Its geographical dispersion;
Its continuous operation: 24 hours a day except weekends, i.e., trading from 20:15 GMT on Sunday until 22:00 GMT Friday;
The variety of factors that affect exchange rates;
The low margins of relative profit compared with other markets of fixed income;
The use of leverage to enhance profit and loss margins and with respect to account size.
Currency Derivatives with HDFC securities is easy, seamless and online. Know the benefits of Trading in Currency Derivatives and How to trade in Currency Derivatives. More on HDFC securities.
Title: "Euro Currency Market"
Prepared by: Tehseen Khan
1: INTERNATIONAL FINANCIAL MARKET
. The foreign exchange market is a global decentralized market for the trading of currencies
. The main participants in this market are the larger international banks
.The foreign exchange market works through financial institutions, and it operates on several levels
2: EUROCURRENCY MARKET
A Eurocurrency market is a currency market that runs banking services by using foreign currencies set outside of the national market.
3: EUROBOND
A Eurobond is an international bond that is denominated in a currency not native to the country where it is issued.
Basic of currency market for beginners currency evolution and Indian currency market. Traiding in Indian currency market Knowledge regarding currency market knowledge of currency market
Currency Derivatives are available on four currency pairs viz. US Dollars (USD), Euro (EUR), Great Britain Pound (GBP) and Japanese Yen (JPY). Cross Currency ...
The trading of one currency for another or system of converting one national currency into another (Rupee for Dollar)
An exchange rate is the price of a currency (value of one currency relative to the other)
It is essential for the trading between nations
For Example: how many Indian rupees does it take to buy one US dollar?
If the exchange rate is 71, it means Rs. 71 are needed to buy 1 USD
Foreign Exchange Market
Dear All,
In this mail we had shown details about Foreign Exchange Market.
What is Foreign Exchange Market etc. It will be helpful you to get an knowledge about foreign Exchange market.
It will be helpful you for school/ college projects for students as well as other persons.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
5. Need of Forex Market
• All international trade (export/import) transactions are
essentially of two types:
(1) The transfer of merchandise, services and portfolio products, and
(2) The exchange of currencies.
• When buying goods from one country, you have to pay for it in
that country’s currency.
• Therefore they must exchange the domestic (home) currency
for an appropriate value of the other country’s currency & as
such the issue for a rate at which the conversion takes place
arises, thus known as the Foreign Exchange Rate.
6. • It is the value of one currency in terms of another.
For one unit of the home currency, how many units of the foreign
currency you will get.
• The rate at which exports and imports of a nation are converted
into the domestic or foreign currency at a given point of time.
Meaning of Forex Rate
7. Any financial transaction
that involves more than
one currency is a
foreign exchange
transaction.
Most important
characteristic of a
foreign exchange
transaction is that it
involves Foreign
Exchange Risk.
What is a Foreign Exchange Transaction ?
8. Global Forex Market
• Largest market in the world
• Global average daily turnover above $5.0 trillion
• More than 90% of the turnover is speculative
• 40% of volume is Spot whereas 60% Forwards &
Swaps
• OTC Market lot ranges from $ 0.5 to $ 5 Mio
• The increase was driven by the 48% growth in
turnover of spot transactions, which represent
37% of foreign exchange market turnover. Spot
turnover rose to more than $4 trillion in April
2011 from $1.0 trillion in April 2007
• The higher global foreign exchange market
turnover from 2010 is largely due to the increased
trading activity of non-reporting banks, hedge
funds, pension funds, mutual funds, insurance
companies and central banks, among others
Source: Bank of International Settlements Triennial Survey
10. Snapshot
1944 Bretton Woods Accord implemented to stabilize currency rates in wake of World
War II; USD becomes benchmark currency.
1971 Smithsonian Agreement supersedes Bretton Woods Accord, allowing greater
fluctuations in currencies.
August 15,
1971
US unilaterally terminated convertibility of the dollar to gold. Referred to as
the Nixon shock, this created the situation in which the USD became the sole
backing of currencies and a reserve currency for the member states.
1973 Smithsonian Agreement fails and sparks the dawn of the age of the Free-Float
system.
1978 Formation of European Monetary System for gaining independence from the U.S.
Dollar.
1985 Plaza Accord – US Dollar Devaluation
1992 George Soros vs British Pound
1993 European Monetary System fails; evolution of Free-Float Foreign Exchange
system
1994-95 The Mexican Peso Collapse
Market HistoryMajor Events in International Forex
11. Snapshot
1997 Asian Currency Crisis
1998 Russian Default – LTCM Crisis
1999 European legacy currencies (French franc, German mark, etc.) cease trading as
EURO becomes the single Euro-zone currency
2001 Argentina Economic Crisis
2009 Zimbabwe Dollar – The Inflation Nation
2011 Greece Default – Fall of Euro
2013 Taper Tantrum
2016 Brexit
Market HistoryMajor Events in International Forex
12. Major Currencies
Most traded currencies
Rank Currency (Nicknames) Code (Symbol) % daily turnover
(April 2010)
% daily turnover
(April 2016)
1 United States dollar
(Greenback)
USD ($) 84.9% 87.6%
2 Euro (Single) EUR (€) 39.1% 31.4%
3 Japanese Yen (Jappy) JPY (¥) 19.0% 21.6%
4 Pound Sterling (Cable) GBP (£) 12.9% 12.8%
5 Australian Dollar (Aussie) AUD ($) 7.4% 6.9%
6 Swiss Franc (Swissy) CHF (Fr) 6.4% 4.8%
7 Canadian Dollar (Loonie) CAD ($) 5.3% 5.1%
8 Hong Kong Dollar HKD ($) 2.4% 1.7%
15 Indian Rupee INR (`) 0.9% 1.1%
Other 21.7% 27.0%
Total % (100% for buyer and 100% for seller) 200%
14. Features of Forex Market
• 24-hour trading, 5 days a week with continuous access to global dealers.
• Increase in international trade.
• An enormous liquid market making it easy to exchange most currencies.
• Volatile markets offering profit opportunities for speculators and
opportunities for hedgers.
• Recognized instruments (Forwards, Futures, Options and Interest Rate
Derivatives) for controlling risk exposure.
• The ability to make profit in rising or falling markets.
• Bigger role for BRIC economies and the other emerging markets in the
global trade.
• The market share of the 23 emerging market currencies increased to
14.0% in April 2010 from 12.3% in April, 2009.
15. Price Discovery
• Satellite based : Real time on-screen display of information on
currencies and news events
• Major information vendors
-Reuters
-Bloomberg
• Through voice broker
• Dealing
-Over phone
-Over Reuters dealing system
-Over EBS
-Once deal done, dealer writes the deal on a deal slip / inputs
into online system and attaches proof of deal.
• Inside information (rarely occurs)
17. Indian FX Market
• Market participants
RBI Authorized dealers
Corporates
Brokers
Banks
Foreign Institutional Investors
• Liquidity
Enough two way liquidity for spot transactions upto USD 50 Mio (1 deal)
Average deal size USD 1 Mio.
Swap liquidity declines beyond 6 months
Forward prices actively traded till 1 year
Many banks offer USD hedge for corporate for up to even 7 years
• Market timings
9 a.m. to 5 p.m. (Monday to Friday) for INR transactions.
Offshore Market
Non Deliverable Forwards (NDF) markets are very active and useful in
regards with INR.
18. 1540 - 1545
Sher Shah
Suri
introduces
the silver
Rupayya
Bank of
Hindostan
made the
earliest rupee
notes issues
in the year
1770
1770
19th century
Gold Standard
used throughout
the world led to
the “Fall of the
Rupee”
1935
RBI commences
Operations as
a banker to the
central
government
1966 - 1971
Rupee pegged
to the US Dollar
1991
India faces
balance of
payment crisis;
pledges gold to
shore up
reserves. Rupee
devalued
1993
Exchange rate
becomes
market
determined
2000
Foreign
Exchange
Management
Act replaces
FERA
2002
Clearing
Corporation of
India Limited
commences
clearing and
settlement in
government
securities
2009
Rupee
depreciates to
52.17 during
the market
crash
(31/3/2009)
2011
Inflation, Flows,
Domestic issues
a concern…
Rupee in the
range of 44-54
20. Reserve Bank of India
The Reserve Bank is the umbrella network for numerous activities, all related to the nation’s
financial sector, encompassing and extending beyond the functions of a typical central bank.
Monetary Authority - Formulates, implements and monitors the monetary policy, announced
twice a year.
Issuer of Currency - Maintaining an adequate supply of currency
Banker and Debt Manager to Government
Banker to Banks - Providing liquidity in the markets
Regulator of the Banking System - Ensuring bank penetration and safety of depositors’ funds
Manager of Foreign Exchange - Ensuring stability of interest and exchange rates
Regulator and Supervisor of the Payment and Settlement Systems
Developmental Role - Development of financial institutions and markets.
RBI intervention in currency markets is solely to deliver low volatility in the exchange rates, and
not to take a view on the rate or direction of the Indian rupee in relation to other currencies
The Reserve Bank’s Department of External Investments and Operations (DEIO) invests the
country’s foreign exchange reserves built up by purchase of foreign currency from the market. In
investing its foreign assets, the Reserve Bank is guided by three principles: safety, liquidity and
return.
22. Forex Arithmetic
Type of quotes (Tom, Spot, Forward)
Spot Rate
Two way Quote
Bid-Ask
Spread
Currency Pairs
Quote Style
Spot Rate Calculations
Instruments in FX Market
Forward Contracts
Interest Rate Parity
Calculation of Annualized Premium
23. Trade Date Spot
Forward/Futures
TomCash
Types of Quotes
•Inter-bank rates are always quoted on spot basis
•Spot rate is adjusted for value cash and tom
transactions as per prevailing call money rates (cost
of holding USD)
•USD/INR futures are quoted for month end largely
linked to month end premium rates
24. Spot Rate
Rate of exchange for immediate settlement
It is settled on the “Second” working day
Saturday and Sunday are holidays
Eg: SPOT rate: $ 64.35-64.36 supposing you have
1,00,000 dollar received on Thursday the bank
will settle 1,00,000*64.35 = 64,35,000 on the
following Monday.
25. Two way quote
BID QUOTE and ASK QUOTE
Ex: $ - 64.00/64.10
64.00 - bid(buying) - (Bank point of view)
64.10 - ask(selling) - (Bank point of view)
If you want to sell $, you will get 64.00
If you want to buy $ you will get 64.10.
26. Bid and Ask
The bank’s quote of Bid and Ask is from the banker’s
perspective.
Bid = Buy
Ask = Sell
Eg. USD/INR = 64.50-64.55
If the Bid rate for USD is 64.50 it means that the bank is
ready to buy 1$ for 64.50
If the ask rate is for USD is 64.55, it means that the bank is
(asking if someone will buy) selling 1$ for 64.55.
27. Spread
ASK MINUS BID = SPREAD
Eg. 64-65
SPREAD = 64 - 65 = 1
Factors: a) Stability of the exchange rate
b) Depth of the market - Volume of
transaction
High volume (deep market) - narrow spread
Low volume (thin market) - wider spread
28. Currency Pairs
Base currency
The first currency quoted in a currency pair on forex. It is
sometimes referred to as the "primary currency".
Quoted currency
It's the second currency quoted in a currency pair. It is
sometimes referred to as the "secondary currency" or
"counter currency".
Eg.
USD /
INR
Base Currency
Quoted Currency
1 USD = 64.00 INR
29. Quote Style
Exchange rate quotes, as the price of one currency in terms of
another, come in two forms:
A “direct” quotation is the amount of domestic currency
(if you are in India or Japan) per unit of foreign
currency and
An “indirect” quotation is the amount of foreign currency
per unit of domestic currency (if you are in Europe or
London).
31. Problem
An Indian would like to have Travelers Cheques :
GBP - STERLING 90.70-91.25
Explain the quote
Compute the spread
How much would you pay for purchasing 250 pounds?
If you have a balance of pounds 23 in Travelers Cheques ,
how many rupees would you receive if the bank in India
quotes 89.65-91.92?
32. Answer
Bank buys at 90.70 and Ask rate is 91.25
Spread = 0.55
250*91.25 = 22812.50
23*89.65 = 2061.95
Note: In practice all forex transactions are rounded off to a
rupee i.e. 2062
35. Forward Contract
Contract to sell or buy a currency at a rate agreed
today; for delivery at a pre-determined future date or
time period
Difference between the spot and the forward rate is
called Forward Points, Swap Points, or Forward
Margin.
Outright forward rate = spot rate +/- forward points
Forward rate is the rate which neutralizes the effect of
differences in the interest rates in a given currency
pair (Except for USD/INR, which is purely on basis of
Demand And Supply)
Executed as an “Over-the-Counter” (OTC) contract with
counterparty
Participants are mainly corporates and banks having
underlying exposure in the currency.
36. Interest Parity Principle
Between two freely convertible currencies, the difference between
the spot rate and the forward rate is determined by the interest rate
differential between the two currencies.
Spot : 1EUR = 1.2625 USD
6m Interest Rates : USD 5.5% ; EUR 3.0%
6m Forward 1 EUR = 1.2782 USD
Spot Rate * Interest Rate Differential * Forward Period
100 * No. of months in the year
(1.2625*(5.50-3.0)*6)/(100*12) = 0.0157
37. Cont.
Borrow 1 Euro at 3.0% Int. payable 0.015
Sell 1 Euro against 1.2625 USD Spot
Invest 1.2625 USD at 5.50% Int. receivable 0.035
To eliminate arbitrage today’s 6m forward should be such that
USD 1.2975 = Euro 1.0150
1 Euro = (1.2975/1.0150) = USD 1.2782
38. Features of IPP
Currency with low interest rate will be at a premium
Currency with high interest rate will be at a discount
Forward rate is no indication of future spot rate
40. Exercise
The United States Dollar is selling in India at Rs.64.50.
If the interest rate for 6 month borrowing in India is
7% per annum and the corresponding rate in USA is
2%.
1.Do you expect US dollar to be at premium or at discount in
the Indian forward market?
2.What is expected 6 month forward rate for United States
Dollar in India?
3. What is the rate of forward premium or discount?
41. Solution
Borrow in US at 2% and invest in India
Differential interest rate = (7% - 2%) = 5%
Since US interest rate is low dollar is at premium.
Forward rate = 64.50(1+[0.05x6/12]) = Rs.66.11
43. Fundamental and Technical
Fundamental analysis maintains that markets may mis-
price a security in the short run but that the "correct"
price will eventually be reached.
It studies the “Cause”.
Technical Analysis maintains that all information is
reflected already in the price. Trends 'are your friend'
and sentiment changes predate and predict trend
changes, price chart patterns. Their price predictions
are only extrapolations from historical price patterns.
It studies the “Effect”.
Two analytical models
46. Market
Forces
behind
exchange
Rates
Current A/c
Deficit
Fx Reserves
RBI
Intervention
Political
Stability &
Economic
Performance
Large reserves
Indicates the
backing a
currency has &
repay of foreign
debt
To smoothen the
disorderly market
For or Against
currency
Capital inflows
into the country
Strengthens
Weakens
Strengthens
Spends more on
foreign trade than
its earning
/borrows capital
Excess Demand
for foreign
currency
Weakens
Strengthens
49. Principles of Technical Analysis
•The current price discounts everything
•Patterns exist
•History repeats itself
•Averages should confirm
50. Technical
Over different time periods and many markets:
• Technical can be used from 1 minute charts to intra-year
charts, making it very versatile.
•The larger time dimension gives us the direction, while
the shorter time frame the timing.
•The study of Monthly, Weekly, Daily and even 4 hourly
charts give a rounded view.
•It can be used to study any market.
51. Technical
Hourly QEUR= 01:00 18/01/2008 - 06:00 28/01/2008 (GMT)
SMA, QEUR=, Bid(Last), 63
04:00 28/01/2008, 1.4682
Cndl, QEUR=, Bid
04:00 28/01/2008, 1.4674, 1.4675, 1.4666, 1.4668
Price
USD
.1234
1.44
1.444
1.448
1.452
1.456
1.46
1.464
1.468
1.472
1.476
01:00 09:00 17:00 20:00 01:00 09:00 17:00 01:00 09:00 17:00 01:00 09:00 17:00 01:00 09:00 17:00 01:00 09:00 17:00 20:00 01:00
18 Jan 08 21 Jan 08 22 Jan 08 23 Jan 08 24 Jan 08 25 Jan 08
1 Hr
4 Hours QEUR= 16:00 02/01/2008 - 04:00 29/01/2008 (GMT)
SMA, QEUR=, Bid(Last), 63
04:00 28/01/2008, 1.4668
Cndl, QEUR=, Bid
04:00 28/01/2008, 1.469, 1.4702, 1.4662, 1.4665
Price
USD
.1234
1.44
1.445
1.45
1.455
1.46
1.465
1.47
1.475
1.48
1.485
03 04 06 07 08 09 10 11 13 14 15 16 17 18 20 21 22 23 24 25 27 28 29
January 2008
4 Hr
Daily QEUR= 22/08/2007 - 05/02/2008 (GMT)
SMA, QEUR=, Bid(Last), 63
28/01/2008, 1.4639
Cndl, QEUR=, Bid
28/01/2008, 1.468, 1.4708, 1.4662, 1.4666
Price
USD
.1234
1.35
1.36
1.37
1.38
1.39
1.4
1.41
1.42
1.43
1.44
1.45
1.46
1.47
1.48
27 03 10 17 24 01 08 15 22 29 05 12 19 26 03 10 17 24 31 07 14 21 28 04
Aug 07 September 2007 October 2007 November 2007 December 2007 January 2008
Daily
Weekly QEUR= 04/12/2005 - 16/03/2008 (GMT)
Cndl, QEUR=, Bid
03/02/2008, 1.468, 1.4708, 1.4662, 1.4667
Price
USD
.1234
1.2
1.23
1.26
1.29
1.32
1.35
1.38
1.41
1.44
1.47
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Q4 05 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008
Weekly
Over different time periods:
52. VOLUMECANDLESTICKBARLINE CANDLESTICKBAR VOLUMELINE
Chart types
Daily QEUR= 4/6/2010 - 7/27/2010 (BOM)
Price
USD
1.17
1.2
1.23
1.26
1.29
1.32
1.35
12 19 26 03 10 17 24 31 07 14 21 28 05 12 19 26
Apr 10 May 10 Jun 10 Jul 10
Open
Close
High
Low
Volume seen increasing in
the direction of the trend.
56. Basic Concepts of Trend
There are three trends
UP
DOWN
SIDEWAYS
There are three decisions
GO LONG
GO SHORT
STAY OUT OF THE MARKET
57. Short-term and Longer-term trends
A trend has three classifications
MAJOR
INTERMEDIATE
NEAR-TERM
Broadly three time horizons
LONGER THAN A YEAR
ONE TO THREE MONTHS
ONE WEEK TO ONE MONTH
58. Three Stages of a Trend
BULL MARKET
Accumulation
Big Move
Excess
Distribution
Big Move
Despair
BEAR MARKET
59. Don’t BUCK the Trend
the trend is your FRIEND
RESISTANCE
SUPPORT
60. Trendline
simple is powerful: drawing is an art
19 26 5
March
12 19 26 2
April
9 16 23 30
May
7 14 21 28 4
June
11 18 25 2
July
9 16 23
115.0
115.5
116.0
116.5
117.0
117.5
118.0
118.5
119.0
119.5
120.0
120.5
121.0
121.5
122.0
122.5
123.0
123.5
124.0
124.5
US Dollar - Japanese Yen (106.790, 106.960, 106.010, 106.580, -0.14000)
JPY= Daily
Alert when price
line is broken
How the price adheres to the
trendline:
61. The Psychology of
Support and Resistance
RESISTANCE
SUPPORT
Longs HAPPY but regret for
not having bought more.
Looks to add on to long
positions if the market dips
back
Shorts UNHAPPY as they are
on the wrong side of the
market and hope for a dip
back so they can get out at
breakeven
Uncommitted: Those who
have never had a position look to
buy on dips
Stale bulls who got out and now
regret it and look to reinstate
longs where they sold them
62. Support becoming Resistance
30 6
August
13 20 27 3 10
September
17 24 1
October
8 15 22 29 5
November
12 19 26 3 10
December
17 24 31
2008
7
1.080
1.085
1.090
1.095
1.100
1.105
1.110
1.115
1.120
1.125
1.130
1.135
1.140
1.145
1.150
1.155
1.160
1.165
1.170
1.175
1.180
1.185
1.190
1.195
1.200
1.205
1.210
1.215
1.220
1.225
1.230
US Dollar - Swiss Franc (1.09470, 1.09650, 1.09020, 1.09110, -0.00540)
Support
Resistance
CHF= Daily
Final stop for CHF
63. Moving Average
The two most popular types of moving averages are the Simple Moving Average (SMA),
the Exponential Moving Average (EMA)
12
February
19 26 5
March
12 19 26 2 9
April
16 23 30 7
May
14 21 28 4
June
11 18 25 2
July
9 16 23 30 6
August
13 20 27 3 10 17
September
24 1 8
October
15 22 29 5 12
November
19 26 3 10 17
December
24 31 7
2008
14 21 28 4 11
February
0.645
0.650
0.655
0.660
0.665
0.670
0.675
0.680
0.685
0.690
0.695
0.700
0.705
0.710
0.715
0.720
0.725
0.730
0.735
0.740
0.745
0.750
0.755
0.760
0.765
0.770
0.775
0.780
0.785
0.790
0.795
0.800
0.805
0.810
0.815
0.820
0.825New Zealand Dollar - US Dollar (0.77000, 0.77380, 0.76700, 0.77380, +0.00610)
Moving Average
Bollinger Bands
Oscillators-RSI
Oscillators-MACD
Oscillators-Stochastics
64. Moving Average
Moving Average
Bollinger Bands
Oscillators-RSI
Oscillators-MACD
Oscillators-Stochastics
Daily QEUR= 1/23/2009 - 8/16/2010 (BOM)
Cndl, QEUR=, 7/19/2010, 1.2893, 1.2991, 1.2868, 1.2957 SMA, QEUR=, 7/19/2010, 1.2541Price
USD
1.2
1.25
1.3
1.35
1.4
1.45
1.5
F M A M J J A S O N D J F M A M J J A
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10
Golden Cross
Dead Cross
65. Bollinger Bands
13 20 27 3 10
September
17 24 1
October
8 15 22 29 5
November
12 19 26 3 10
December
17 24 31
2008
7 14 21 28 4
February
11
-1.0
-0.5
0.0
0.5
1.0
1.5
0.660
0.665
0.670
0.675
0.680
0.685
0.690
0.695
0.700
0.705
0.710
0.715
0.720
0.725
0.730
0.735
0.740
0.745
0.750
0.755
0.760
0.765
Euro Dollar-British Pound (0.74000, 0.74360, 0.73920, 0.74220, +0.00210)
Band Narrowing a trigger in the
direction of trend
Close below mid
point- signal for
dip for lower band
John Bollinger, a long-time technician of the markets developed the technique of using moving averages with two trading
bands, not unlike using envelopes on either side of a moving average. Unlike using a percentage calculation from a
normal moving average, Bollinger Bands simply add and subtract a standard deviation calculation.
Bollinger Bands
Oscillators-RSI
Oscillators-MACD
Oscillators-Stochastics
Moving Average
66. Relative Strength Index
Is the market overbought or oversold, Oscillators help us determine that.
Overbought
Oversold
The Relative Strength Index (RSI) compares an instrument with its own past history. It measures the ratio of up-moves
to down-moves and normalises the result so it falls between 0 and 100.
Oscillators-RSI
Oscillators-MACD
Oscillators-Stochastics
Moving Average
Bollinger Bands
67. Convergence & Divergence
Moving Average
Daily Q=USD 20/07/2007 - 31/01/2008 (NYC)
SMA, Q=USD, Last Trade(Last), 63
29/01/2008, 76.167
Cndl, Q=USD, Last Trade
29/01/2008, 75.538, 75.604, 75.517, 75.59
Price
.123
75
76
77
78
79
80
MACDF, Q=USD, Last Trade(Last), 12, 26, 9, Exponential
29/01/2008, -0.057
Value
.123
-0.1
0
0.1
23 30 06 13 20 27 04 10 17 24 01 08 15 22 29 05 12 19 26 03 10 17 24 31 07 14 21 28
July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008
Positive divergence
USD Index=Daily
Oscillators-MACD
Oscillators-Stochastics
Moving Average
Bollinger Bands
Oscillators-RSI
68. Oscillators - Stochastics
Oscillators-Stochastics
Moving Average
Bollinger Bands
Oscillators-RSI
Developed by George C. Lane in the late 1950s, the
Stochastic Oscillator is a momentum indicator that
shows the location of the current close relative to
the high/low range over a set number of periods.
Closing levels that are consistently near the top of
the range indicate accumulation (buying pressure)
and those near the bottom of the range indicate
distribution (selling pressure). It is scaled between
0 and 100 like RSI.
Oscillators-MACD
70. Continuation Patterns
Symmetrical Triangle
Ascending Triangle
Descending Triangle
Flags
Rising Wedges
Falling Wedges
Symmetrical Triangle
Ascending Triangle
Sell on confirmation of
symmetrical triangle with a
down trend after failure and
lower close and a “triple top”.
100% projection target met
Daily QINR=IN 3/16/2010 - 8/2/2010 (BOM)
Price
44.5
45
45.5
46
46.5
47
16 01 16 03 17 01 16 01 16 02
Mar 10 Apr 10 May 10 Jun 10 Jul 10
Minimum Price
Objective
A
B
Height of the
Triangle (AB)
Breakout Point
Return to the Neckline
The upper resistance line acting as
support on dips after the breakout
C
71. Continuation Patterns
Symmetrical Triangle
Ascending Triangle
Descending Triangle
Flags
Rising Wedges
Falling Wedges
Descending Triangle
Flags
Examples of “falling” or
descending triangles
Bullish FlagW e e k ly QCHF= 6/28/2009 - 10/17/2010
P
/
J A S O N D J F M A M J J A S O
Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010
Break-out Point
Flag pole
“Price Objective”
Duplication of Flag pole
Usually occurs
after a sharp
curve
72. W e e k ly QINR=IN 12/28/2008 - 9/26/2010 (BOM)
Price
43
44
45
46
47
48
49
50
51
52
53
J F M A M J J A S O N D J F M A M J J A S
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Measuring technique
Price Objective from
the break-out point
Will act as a
Support
Breakout point - BUY
Symmetrical Triangle
Ascending Triangle
Descending Triangle
Flags
Rising Wedges
Falling Wedges
Rising Wedges
Falling Wedges
Continuation Patterns
A bearish wedge sloping upwards
against the prevailing downtrend.
Sell point
Downtrend
Daily QGBP= 2/2/2010 - 8/5/2010 (BOM)
Price
USD
1.42
1.44
1.46
1.48
1.5
1.52
1.54
16 01 16 01 16 03 17 01 16 01 16 02
Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10
Measuring technique
Price objective from the
breakout
Breakout point - SELL
Return to the Neckline
Buy Point
A Bullish Wedge sloping downwards
against the prevailing uptrend
Uptrend