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The development of the foreign exchange market and its market composition

{}Posted in2023/2/26 5:07:51 | 5Browse

(a) the role of the forexcashrebate Forex rebate for Exness place: 1. transfer the balance of foreign exchange funds 2. provide a means to avoid foreign exchange r ForexrebateforExnessk some companies or banks, because of forward foreign exchange f cashback forexger activities, in order to avoid losses due to forward exchange rate changes, can be forward foreign exchange forexrebates through the foreign exchange trading, so as to avoid foreign exchange risk 3. facilitate the central bank to stabilize the exchange rate operation due to International short-term capital flow will impact the national currency market, causing the inflow or outflow of the countrys currency exchange rate soaring or plummeting, need to intervene by the central bank, the central bank through a large number of foreign exchange market to throw or buy the currency exchange rate excessive rise cashbackforexexness fall, so that the exchange rate tends to stabilize (II) the development of the foreign exchange market review the history of the development of the international foreign exchange market, the international foreign exchange market has mainly experienced the following stages:. 1. Before the eighteenth century, the precious metals as the two countries exchange currency evaluation benchmark: 2. Gold standard system (TheGoldStandard) is the most systematic international payment system in human history (lnternationalPaymentSystem) 3. After the Second World War, it evolved into the International Monetary Fund as the center of the gold exchange wood position system ( GoldExchangeStandard) -------- Bretton Woods system 4. 1970 after the countries have changed to adopt the floating exchange rate system (FloatingExchangeRateSysten) to Jamaica some as a representative 5. MultipleCurrenciseReserveSystem) (C) the foreign exchange market composition of the foreign exchange market has three parts consisting of the first is the goods, the second is the market buyers and sellers, and finally the form of market organization 1. commodities ------- foreign exchange, as we have mentioned before 2. market participants -------- from the main body of foreign exchange transactions, the foreign exchange market is mainly By some of the participants in the composition of this: (1) foreign exchange banks: foreign exchange banks are designated or authorized by the Bank of China and the United Kingdom or the monetary authorities to operate foreign exchange business foreign exchange banks are usually commercial banks, can be specializing in foreign exchange of the countrys banks, but also foreign exchange business of the countrys banks or branches of foreign banks foreign exchange banks are the most important participants in the foreign exchange market, its foreign exchange transactions constitute The main part of the foreign exchange market activities (2) foreign exchange dealers: foreign exchange dealers refer to the purchase and sale of foreign bills of exchange trading companies or individuals, foreign exchange dealers use their own funds to buy and sell foreign exchange bills, from which the purchase and sale spread foreign exchange dealers are mostly trust companies, banks and other part-time institutions, but also companies and individuals specializing in this business (3) foreign exchange broker: foreign exchange broker is to facilitate foreign exchange transactions Intermediary it between foreign exchange banks, foreign exchange banks and other participants in the foreign exchange market, with cha foreign exchange trading business itself does not buy and sell foreign exchange, knowledge to connect foreign exchange buyers and sellers, to facilitate the transaction, and receive commissions from the foreign exchange broker must be approved by the central bank of the country to operate (4) Central Bank: the central bank is also the main participants in the foreign exchange market, but its participation in the foreign exchange market, the main The purpose is to maintain the exchange rate stability of the reasonable regulation of international reserve content, it through direct participation in the foreign exchange market trading, adjusting the foreign exchange market capital supply and demand, so that the exchange rate is maintained at a certain level or limit in a certain level of the central bank usually set up foreign exchange equalization fund, when the market demand for foreign exchange is too much, the exchange rate rose, selling foreign currency, to recover the cost; when the market is too much, the exchange rate fell, it bought Foreign currency, put the local currency Therefore, in a sense, the central bank is not only the participants in the foreign exchange market, but also the actual manipulation of the foreign exchange market (5) foreign exchange speculators: foreign exchange speculators foreign exchange trading is not out of the actual needs of international payments and receipts, but the use of a variety of financial instruments, in the exchange rate changes to pay a certain margin for pre-buying and pre-selling (6) the actual suppliers of foreign exchange and the actual demand for. Foreign exchange market on the timing of the supply and demand for foreign exchange is those who use the foreign exchange market to complete international trade or investment transactions of individuals or companies they include; importers, exporters, international investors, multinational companies or tourists, etc. 3. Market organization form ------- countries of the foreign exchange market, due to their long-term financial traditions and business habits, its foreign exchange transactions in different ways (1) the over-the-counter market The organization way this organization way no certain opening closing time, no specific trading places, the two sides of the transaction do not have to face-to-face transactions, only by telex, telegraph, telephone and other communication equipment mutual contact and contact, negotiation to reach a deal Britain, the United States, Canada, Switzerland and other countries of the foreign exchange market are to take this counter market organization way therefore, this way also known as the British and American system (2) exchange way this way There are fixed trading places, such as Germany, France, the Netherlands, Italy and other countries of the foreign exchange exchange, these foreign exchange transactions have a fixed business day and opening closing time, foreign exchange transactions of the participants in each business day business time concentrated in the exchange for trading because of the European mainland countries use this way to organize the foreign exchange market, it is also called this way for the continental system over-the-counter trading way is the foreign exchange market As long as the organization form this not only because the worlds two largest field foreign exchange market, the London foreign exchange market and the New York foreign exchange market is organized in this way, but also because the foreign exchange transaction itself has international because the foreign exchange transaction participants from all different countries, the transaction range is extremely wide, the transaction method is also increasingly complex, the cost of participation in the transaction is obviously higher than through modern communication facilities for the transaction Therefore, even the European countries, most of its local foreign exchange transactions and all international transactions are carried out in the form of over-the-counter transactions and the exchange market usually handles only a small part of the local spot transactions world foreign exchange market is composed of the international financial center of the foreign exchange market, which is a huge system of the current market about more than 30 foreign exchange market, the most important of which are London, New York Paris, Tokyo, Switzerland, Singapore, Hong Kong, etc., they have their own characteristics and are located in different countries and regions, and interconnected, forming a global unified foreign exchange market foreign exchange market is a cash interbank market or inter-dealer market, it is not the traditional impression of the physical market, there is no physical premises for trading, trading is carried out by telephone and through computer terminals around the world. The direct inter-bank market is with foreign exchange clearing dealers, their transactions constitute the overall foreign exchange transactions in large transactions, these transactions create the foreign exchange market transactions huge, but also make the foreign exchange market has become the most liquid market in general foreign exchange market: refers to the management of foreign currency and foreign currency-denominated instruments and other securities trading market is the main component of the financial market