Currency markets are an areaeconomic relations, which are manifested in the performance of operations for the placement of temporarily available funds, investment of capital and purchase and sale of foreign currency. Here, the interests of purchasers of such funds and their sellers are coordinated. Currency markets perform such functions as credit, clearing, hedging and regulation of purchasing power. Their main participants are financial institutions, banks, government agencies, investors, importers and exporters. In this area, they have different needs, including such as transferring from one country to another purchasing opportunity, investing personal funds in different parts of the world and, of course, hedging positions. In all this need foreign exchange markets.
Before the start of work of local financial centersbrokers organize communication with partners from different corners of the world in order to exchange information about achievements, development trends and various significant events in those areas where trade is already being implemented. This information is supplemented with the help of economic data, technical analysis and a report on political conditions. This allows a much broader assessment of the situation in the market, and also contributes to the preparation for follow-up activities in this area.
Communication between brokers provides fundscomputer support, telephone lines and electronic communications. To perform their work in the financial institution's dealing rooms, high-speed information systems are simply irreplaceable. Prices in the market are able to change quickly due to their sensitivity. That is why banks should have an excellent relationship with their partners for the most rapid implementation of trade.
Modern currency markets have somethe main features to which you should pay attention: the continuity of the various operations, the extensive use of electronic means of communication, internationalization, unified technology, currency instability and credit risk insurance. At the same time, they are both a place of play and an object of close attention on the part of international financial organizations and highly developed countries in the sphere of industry.
The structure of the foreign exchange market will be more understandable if it is classified according to some criteria:
1) territory: world, regional and national markets;
2) functions: international trade services, investments, speculation, hedging;
3) application of courses: with one or more modes;
4) type of agreement on the term: markets for urgent or current operations;
5) regulatory tools: markets with currency restrictions and regulation or with a free education course.
But this is general information. In order to understand how to make money in the foreign exchange market, it is necessary to study in detail the most significant information about their activities and about the financial operations that they carry out.
</ p>
