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Forex Tradeing
Wednesday, December 16, 2009
1. Economic policy
Economic policy comprises government fiscal policy (budget/spending practices)
and monetary policy (the means by which a government's central bank influences the supply
and "cost" of money, which is reflected by the level of interest rates).
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Forex The Foreign Exchange Market
Market size and liquidity
Market participants
Banks
Commercial companies
Central banks
Hedge funds as speculators
Investment management firms
Retail foreign exchange brokers
Non-bank foreign exchange companies
Money transfer/remittance companie
Trading characteristics
Determinants of FX rates
Economic factors
1. Economic policy
2. Economic conditions include:
Political conditions
Market psychology
Long-term trends
Economic numbers
Algorithmic trading in foreign exchange
Spot transaction
Forward transaction.
Foreign currency futures
currency swap
Foreign exchange option
Exchange-traded fund
Speculation
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