Friday, June 19, 2009

My Sudden interest in Forex

While reading casually today afternoon,I got interested in discovering more about Forex and forex trading.It was really a nice feeling to discover that Foreign Exchange trading is one of the most traded activities in the banking circles.It involves intricate math calculations and happens across the week from Sunday to Friday 24hrs a day,thats remarkable.while other stock exchanges trading spells would hardly be 5 hrs.Just imagine the scope of volatility and excitement involved in trading Forex for 4times or more the time spent trading in any exchange that operates across the globe.
The total volumes traded according to some calculations indicate it to be over 2trillion dollars.
There are 3 broadly classified circles where trading occurs:
  • InterBank Circles where banks trade Forex under undisclosed bids and ask values which the general public has little idea of.
  • Money Remitting Agencies operating across the globe.These companies handled around 295bn$ alone in remittances to emerging markets like India,China,Philipines and Malaysia.These companies are interested in playing the trade bets simply because of the mass volume of funds .
  • The third can be identified as such companies that make payments in international locations.
No surprise that the financial consultants operating in the markets of singapore command consultancy rates to the tune of $700/hour.
To discuss the detail math involved in the trading of Forex here would be out of scope,but for those interested can visit this invaluable post in wikipedia foreign exchange markets.

Would try to keep posted on anything that comes up in mind.

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