forex trading

Which of the following is NOT true regarding the market for foreign exchange? A) The market provides the physical and institutional structure through which the money of one country is exchanged for another. B) The rate of exchange is determined in the market. C) Foreign exchange transactions are physically completed in the foreign exchange market. D) All of the above are true. - ANSWER-D A/An ________ is an agreement between a buyer and seller that a fixed amount of one currency will be d...

Note 1 - ANSWER-The foreign exchange market — most often called the forex market, or simply the FX market — is the largest and most liquid of all international financial markets. Note 2 - ANSWER-Forex market is open around the clock from Sunday evening ET to Friday 5 p.m. ET Note 3 - ANSWER-Average daily currency trading volumes are now estimated to $5.3 trillion per day, according to the 2016 BIS survey of forex volumes. That's a mind-boggling number, isn't it? $5,300,000,000,000, t...

Foreign-exchange market (FEM) - ANSWER-the market where one country's money is traded for that of another country Exchange rate - ANSWER-the price of one country's money in terms of another Spot market - ANSWER-where currencies are traded "on the spot", that is, for immediate delivery Spot exchange rates - ANSWER-the price of foreign money for immediate delivery (within 2 working days) Bid price - ANSWER-the price dealers will pay to buy that currency at that particular moment in...

What is Forex? - ANSWER-The global market that allows one to trade two currencies against each other. True of False: If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit. - ANSWER-True. What is an Exchange Rate? - ANSWER-The relative price of two currencies from two different countries. FOREX, or "FX" stands for: - ANSWER-Foreign Exchange Market. True or False: FX market is a global, decentralized market where the wor...

What is the FOREX market? - ANSWER-Forex is short for foreign exchange. Forex is the exchange of one currency for another, at an agreed exchange price. Similar to the concept of stocks you want to buy a currency at one price and sell it at a higher price (or sell a currency at one price and buy it at a lower price) in order to make a profit. This market is the world's most traded market with an average turnover in excess of US$ 5.3 trillion per day and is open to major institutions and individu...

What are the most popular financial instruments for retail traders? - ANSWER-Retail forex, spot FX, currency futures, currency options, currency exchange-traded funds (or ETFs), forex CFDs, forex spread betting Define "financial instrument". - ANSWER-Financial instruments are different ways to invest or speculate in currencies. What are 'futures'? - ANSWER-contracts to buy or sell at a specific date in the future at a price specified today. details the price at which a curren...

functions of foreign exchange market - ANSWER--transfer purchasing power between countries -obtain/provide credit of international trade transactions -minimize exposure to the risks of exchange rate changes dimensions of foreign exchange market - ANSWER-1. structure 2. transactions 3. size 4. methods of stating exchange rates, quotations and changes in exchange rates three major trading sessions - ANSWER--Asian session (Tokyo) -European session (London) -North American session...

Appreciating/Depreciating Currency - ANSWER-Appreciation of currency = an increase in the value of a currency relative to other currencies. Depreciation = a decrease in the value of a currency in relation to other currencies. ex. A US dollar becomes tantamount to 20 Mexican pesos. (depreciation of peso, appreciation of USD) Balance of Payments Account - ANSWER-A summary of one country's transactions with other countries. Balance of Payments on Goods/Services - ANSWER-The difference be...

1) The record of international receipts and payments is called the A) U.S. official reserves. B) current account. C) balance of payments. D) official settlements account. E) capital and financial account - ANSWER-C) balance of payments. 2) The balance of payments accounts record all of the following EXCEPT the country's A) international trading. B) domestic investment. C) change in official reserves. D) international borrowing. E) international lending...

1. All of the following are TRUE regarding international trade EXCEPT a. Countries experience a trade deficit when imports are greater than exports b. Net exports will increase when that country's currency depreciates c. Exports are considered a debit in a country's balance of trade d. The balance of payment is a summary of a country's transactions with other countries e. The primary components of the balance of payments are the current account and the capital (financial) account - ANSW...