Forex market - Study guides, Revision notes & Summaries

What are the most popular financial instruments for retail traders? - ANSWER-Retail forex, spot FX, currency futures, currency options, currency exchange-traded funds (or ETFs), forex CFDs, forex spread betting Define "financial instrument". - ANSWER-Financial instruments are different ways to invest or speculate in currencies. What are 'futures'? - ANSWER-contracts to buy or sell at a specific date in the future at a price specified today. details the price at which a curren...

functions of foreign exchange market - ANSWER--transfer purchasing power between countries -obtain/provide credit of international trade transactions -minimize exposure to the risks of exchange rate changes dimensions of foreign exchange market - ANSWER-1. structure 2. transactions 3. size 4. methods of stating exchange rates, quotations and changes in exchange rates three major trading sessions - ANSWER--Asian session (Tokyo) -European session (London) -North American session...

Beat The Market Maker Strategy (BTMM) E-BOOK 1

Forex trading - ANSWER-1. Simultaneous exchanging of one currency for another 2. No physical location or central exchange 24hr trading Customers - ANSWER-1. Corporation, hedge funds, mutual funds, pension funds, central banks 2. Trade with a dealer Dealers - ANSWER-1. Mostly large banks take customer orders 2. Make markets from owned inventory Inter dealer market - ANSWER-1. Direct dealing - dealer to dealer (Phone, electronically) 2. Indirectly (Inter dealer brokers (phone, electro...

The primary role of financial markets is to [blank1] the flow of funds from individuals and businesses - Answer-facilitate Which informational form takes all information contained in past price movements is reflected in current market prices? a)Weak Form b)Semi Strong Form c)Strong Form - Answer-a)Weak Form If you have private information, under which informational form can you make excess returns? a)Semi Strong Form b)Weak Form c)Strong Form - Answer-a)Semi Strong Form The o...

EUR - ANSWER-Euro USD - ANSWER-US dollar GBP - ANSWER-British pound JPY - ANSWER-Japanese yen CHF - ANSWER-Swiss Franc AUD - ANSWER-Australian dollar CAD - ANSWER-Canadian dollar NZD - ANSWER-New Zealand dollar 7 liquid pairs - ANSWER-EUR/USD , GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD, USD/CAD When is forex "open"? - ANSWER-Forex is run electronically within a network of banks 24 hours , 5 days a week What is forex? - ANSWER-foreign exchange market More in de...

How to Make Money Trading Forex - ANSWER-In the forex market, you buy or sell currencies. The object of forex trading is to exchange one currency for another in the expectation that the price will change. More specifically, that the currency you bought will increase in value compared to the one you sold. How to Make Money Trading Forex - ANSWER-*EUR 10,000 x 1.18 = US $11,800 ** EUR 10,000 x 1.25 = US $12,500 For example, the EUR/USD exchange rate indicates how many euros can purchase one U...

Forex - ANSWER-Foreign Exchange (FOREX) refers to the foreign exchange market. It is the over-the-counter market in which the foreign currencies of the world are traded. It is considered the largest and most liquid market in the world. Pair - ANSWER-A currency pair is the quotation and pricing structure of the currencies traded in the forex market; the value of a currency is a rate and is determined by its comparison to another currency. The first listed currency of a currency pair is called ...

Trading view - ANSWER-Free, analysis, info, etc, chart markup. When to trade forex - ANSWER-4 sessions, market overlaps Sydney session - ANSWER-5pm-2am. Marks the start of the trading day, smallest and calmest session to trade, Tokyo session - ANSWER-7pm-4am. Starts the second trading session of the day, 3rd largest trading center in the world, JPY makes its move and is the 3rd most traded currency pair in the world (6% of total forex transactions), Asian session - ANSWER-5pm-4am. Sy...

Currency Futures - ANSWER-contracts to buy or sell amounts of specified currency at some future date Currency Options - ANSWER-The option or the right, but not the obligation, to exchange a specific amount of currency on a specific future date and at a specific agreed-on rate Downside of Currency Options - ANSWER-limited hours and lower liquidity Currency ETFs(Exchange Traded Funds) - ANSWER-ETFs are created and managed by financial institutions who buy and hold currencies in a fund. Th...