Characteristics of Foreign Exchange Trading

Characteristics of Foreign Exchange Trading

With the transaction outside the stock exchange (over the counter) as the traditional market of foreign exchange trading, a lot of foreign exchange markets relate to each other where different currencies traded, so it does not directly mean that "there is no single exchange rate of the dollar but the rate varies depending on what bank or market where the transaction ". However, in practice the difference is often very thin.

6 Ranked Top Traded Currencies 

The Rating                         ISO 4217 currency code         symbol

1 United States dollar                        USD                             $

2 Eurozone euro                                 EUR                             €

3 Japanese yen                                  JPY                              ¥

4 British pounds                                 GBP                             £

5 Swiss franc                                      CHF                             Fr

6 Australian dollars                            AUD                            $

Very few or even no "insider trading" (insider trading) that occur in the foreign exchange market. Fluctuations in currency exchange rates are usually caused by actual monetary flows as market expectations of monetary flows caused by changes in the growth of Gross Domestic Product (GDP / GDP), inflation, interest rates, budget and trade deficits or surpluses, mergers and acquisitions and other macroeconomic conditions. Major news is released publicly, so that many people can access the news at the same time. However, the large banks have an important value that they can see the current movement of "order" currency from customers.

Currencies are traded with one another and each currency pair is a separate product such as EUR / USD, USD / JPY, GBP / USD and others. Factors that affect a currency such as the USD will also affect the market value of the EUR / USD, USD / JPY and GBP / USD. (To be continued)