Forex market in brief summarry

2. FOREIGN EXCHANGE MARKET
 Forex currency market is a global decentralized
market for the trading of currencies
 Its an OTC (over the counter) market as there is no
physical place is functioning throughout 24 hours .
 largest foreign exchange market is in London,
followed by the New York, Tokyo, Zurich and
Frankfurt

3. source-easyfxupdates.blogspot.com

4. FOREIGN EXCHANGE RESERVES OF
INDIA
 India’s total foreign exchange reserves touched $360 billion
by end March 2016, up by $18 billion

5. NEED FOR FOREIGN EXCHANGE
Monetary policy instrument
Exchange rate instrument
Liquidity buffer
Reduce vulnerability to external factors
Stability and confidence in financial
markets
Subsidiary revenue

6. TYPES OF FOREX
MARKETS
Merchant Market
-Spot & Forward transaction
Inter-Bank Market
International Market

7. PARTICIPANTS
PARTICIPANTS
CUSTOMERS
COMMERCIAL
BANK
CENTRAL BANK
EXCHANGE
BROKERS
OVERSEAS
FOREX MARKET
SPECULATORS

8. EXCHANGE RATE MECHANISM
Exchange Rates are quoted in two methods:
 Direct method
US$ 1 = ₹ 67.03
 Indirect method
₹100 = US$ 1.49

9. DERIVATIVES
 Derivatives are used to reduce exposure to changes in
foreign exchange rates, interest rates, or stock indexes
.
 Parties wishing to manage their risk are called
hedgers.
 Derivative products –
- Forward Contract
- FX Options- Call & Put
- Swaps
- Futures

11. KARRON MANWANI