Online Stock Trading Made Easy
Currency Trading Software: Lights, Camera, Action! The foreign currency trading market has some of the ―largest‖ characteristics in terms of commercial trade. The currency trading market is so far the largest market in the investment industry, with an average international foreign exchange trading volume of $1.9 trillion daily, according to the April 2004 statistics of the Bank for International Settlements (BIS) study. It is composite of the following components: •
1,300 billion dollars worth of derivatives (the generic term for currency trading
investment from which its pay-offs over time are derived from the performance of assets and other factors such as interest and exchange rates or various indices); •
1,000 billion dollars worth of Forex swaps (over the counter short-term interest rate
derivative instrument) •
600 billion dollars in spot transactions
•
200 billion dollars in forward contract (a contract between two parties to either buy or sell
an asset at an predetermined future point in time); and •
100 billion dollars worth of Forex option (an option wherein the owner has the right but
not the responsibility of exchanging money denominated on a certain currency into another one are a pre-agreed rate of exchange within a specified date). Another ―largest‖ of the currency trading is in terms of the nature of participants on different currency trades. The trading includes large banking institutions, central banks, multinational corporations, various national governments, currency speculators, and other financial institutions and markets. Add to it the small retail traders which are also a part of the growing currency trading market.
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