Geography The foreign exchange market spans the globe,with prices moving and currencies trading somewhere every hour of every business day. Major world trading starts each morning in Sydney and Tokyo. Then moves west to Hong Kong and Singapore. Continuing to Europe and finishing on the West Coast of the US
Geography The foreign exchange market spans the globe, with prices moving and currencies trading somewhere every hour of every business day. Major world trading starts each morning in Sydney and Tokyo. Then moves west to Hong Kong and Singapore. Continuing to Europe and finishing on the West Coast of the US
Exhibit 6.1 Measuring Foreign Exchange Market Activity:Average Electronic Conversions Per Hour 25,000 20,000 15,000 10,000 5,000 Greenwich Mean Time 0 ■■■■ 123456789101112131415161718192021222324 10A.M. Europe Americas Afternoon Tokyo in Tokyo Opening Open in Americas Opens Lunch Asia London 6P.M. in Tokyo Closing Closing in NY Source:Federal Reserve Bank of New York,"The Foreign Exchange Market in the United States,"2001,http://www.ny.frb.org
Exhibit 6.1 Measuring Foreign Exchange Market Activity: Average Electronic Conversions Per Hour
Functions of the Foreign Exchange Market transfer purchasing power between countries; --International buying/selling of goods, services,and assets. obtain or provide credit for international trade transactions,and minimize exposure to the risks of exchange rate changes. --The FX market provides instruments utilized in hedging
Functions of the Foreign Exchange Market transfer purchasing power between countries; --International buying/selling of goods, services, and assets. obtain or provide credit for international trade transactions, and minimize exposure to the risks of exchange rate changes. --The FX market provides instruments utilized in hedging
Market Level The foreign exchange market consists of two tiers: 的 the interbank or wholesale market (multiples of $1MM US or equivalent in transaction size), and the client or retail market (specific,smaller amounts)
Market Level The foreign exchange market consists of two tiers: the interbank or wholesale market (multiples of $1MM US or equivalent in transaction size), and the client or retail market (specific, smaller amounts)
Market Participants Five broad categories of participants operate within these two tiers; bank and nonbank foreign exchange dealers, individuals and firms conducting international business, speculators, arbitragers, central banks and treasuries
Market Participants Five broad categories of participants operate within these two tiers; bank and nonbank foreign exchange dealers, individuals and firms conducting international business, speculators, arbitragers, central banks and treasuries