FOREX MARKET

abhishreshthaa

Abhijeet S
FOREIGN EXCHANGE MARKET

A market where currencies are exchanged in order to buy products or invest in securities denominated in a foreign currency

OTC market


WHAT DOES EX RATE MEANS ?

Meaning

  • An exchange rate is the number of units of one currency that can be exchanged for one unit of another currency
  • E.g. Rs.48 = $1


REGIMES IN EXCHANGE RATE

  • Gold Exchange Standard System

  • Bretton Woods System

  • Flexible Exchange Rate System


WHO ARE THE PARTICIPANTS IN FOREX MARKET

  • Customers (Non Bank entities)

  • Banks

  • Speculators

  • Arbitragers
 
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