Monday, 25 April 2011

Foreign Exchange Markets

For every product there is a need of market like wise foreign exchange also needs a market for its trading. Forex market is a market where you can exchange different currencies with each other. The market where the rate are low attracting buyers and the marker where the rate prevails at high level attract sellers.
Financial markets also play a role of foreign currency trading. One of the basic functions of financial markets is to assist trading between different currencies. Business conducted in these markets included conversion of one currency into other country currency. Businessmen need foreign currency as they have to trade with other countries. They pay foreign currency to exporting country and earn in their own currency.
Different type of exchange rates prevails in different markets. Fix exchange rate and floating exchange rates are the most witnessed types in the markets. Forex trading is required for those who want to invest in foreign currency if their home currency is in depreciation mood. People invest in foreign currency and earn due to depreciation of home currency. The volume of trading in Foreign exchange markets depends upon the fluctuation in the exchange rate. More the fluctuation more will be the market volume

1 comment:

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