|FOREX MARKET AND ITS SIGNIFICANCE|•
~The forex market is the world’s largest and most liquid financial market, with a daily trading volume exceeding $6 trillion. Its primary purpose is the exchange of one currency for another, serving various functions….
1•INTERNATIONAL TRADE :
~ Businesses and individuals use the forex market to exchange currencies for international trade transactions. Companies import and export goods and services, necessitating the conversion of one currency into another.
2•ARBITRAGE :
~ Arbitrage opportunities arise when currency prices differ across markets. Traders exploit these price discrepancies by simultaneously buying and selling the same currency in different markets to make a risk-free profit.
3•SPECULATION :
~ Traders and investors engage in forex markets to speculate on currency price movements. They aim to profit from price differentials between currencies or hedge against potential losses.
4•RISK MANAGEMENT :
~ Multinational corporations and financial institutions use forex to manage currency risk. Hedging strategies help protect against adverse currency movements that could impact earnings and cash flows.
Downlaod
