ESP t�ng hợp-comment

ESP t�ng hợp-comment - OUTLINE Topic: How...

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OUTLINE Topic : How foreign exchange trading developed through years. How international agreements today have shaped it and what its main functions are Reference and Research overview: 1. The development in the Foreign Exchange (FX) markets , Ma n f re d W ie bogen, Pre s iden t - AC I The F inan c ial Mar kets Assoc ia t ion , 2010 Its content: Provide the overview of foreign exchange trading through the world, the impact of the currency markets to institutional investors Its conclusion: The rapid growth was reported across the entire all instruments but it was particularly impressive in the FX swap market. Beside its development, there is low volatility and risk aversion in the markets 2. I. Fundamentals of foreign exchange trading 1. What is foreign exchange trading 1.1. Definition : the activities of buying or selling of foreign exchange, holding of currency positions, foreign exchange arbitrate and foreign exchange speculation on the foreign exchange market 1 1.2. Kinds of currency used in foreign trading: fiat money, bank notes, gold, and bank deposits which are from a foreign country or used as means of payment in international trading 2. How the foreign exchange markets work 2.1. The foreign exchange market (forex, FX, or currency market) is a global, worldwide decentralized financial market for trading currencies. The foreign exchange market determines the relative values of different currencies 2 2.2. Main Participants: Banks - Manage the foreign exchange risks of their bank and their clients. - Make profits through direct trade of currency and through managing their clients' trading positions Brokers - Matching buy and sell orders between clients. - Banks pay a fee to have these brokers handle their transactions. Central Banks - Monitor and test prices on the Forex, and have a great deal of sway with banks, brokers and other players in the Forex market. II. The development of foreign trading through years 1. In Ancient age: Currency trading has a long history 1 Dictionary of international trade 8th edition, Edward G. Hinkelman 2 Essentials of Foreign Exchange Trading, James Chan 1
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To be shaped after the international merchant bankers introduces bills
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This note was uploaded on 11/07/2011 for the course ESP ESP taught by Professor Huyen during the Spring '11 term at Thunderbird School of Global Management.

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ESP t�ng hợp-comment - OUTLINE Topic: How...

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