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O
R
E
X
PRESENTED
BY:
PRESENTED
CONSISTS OF:
• P ANKAJ KUMAR
• A RNAB SAHA
• S UMAN SWAMI
• AN INTRODUCTION TO FOREX:
• CHARACTERISTICS OF FOREX
MARKET:
• UNDERSTANDING FOREX
QUOTES:
• CONCLUSION:
AN INTRODUCTION TO FOREX:
“Forex" stands for foreign exchange; it's also known as FX. In a
forex trade, you buy one currency while simultaneously selling
another - that is, you're exchanging the sold currency for the
one you're buying. The foreign exchange market is an over-the-
counter market.
CHARACTERISTICS OF FOREX
MARKET:
1. Liquidity: The market is highly liquid with money on the table
round the clock (24/7/365) and your profiting from the market
then depends on your scheming ability.
When USD is the base currency and the quote goes up, that
means USD has strengthened in value and the other currency
has weakened. Rising quotes mean a US dollar can now buy
more of the other currency than before.
So you make the trade: to buy 100,000 Euros you pay 146,190
dollars (100,000 x 1.4619). Remember, at 1% margin, your
initial margin deposit would be approximately $1,461 for this
trade.
Now in the example, let's say that we once again buy EUR/USD
when trading at 1.4616/19. You buy 100,000 Euros you pay
146,190 dollars (100,000 x 1.4619).
CONCLUSION:
I. FOREX is a multi-functional commercial interface where real
business is executed through internet and performs several
vital functions, which allows international business to be a
reality.