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Foreign Exchange Market

C/F/131. Foreign Exchange Market

WORDS:
3400
DATE:
2006
PRICE:
39.99 GBP

This work analyzed the mechanics of the foreign exchange market. The average daily turnover of this market amounted to $1.9 trillion in 2004 making it the biggest and the most liquid financial market in the world. The first section of this paper gives account of the major market participants, geographical centres and the most important currencies of the foreign exchange market. Then the second section dissects different types of currency risk exposure. Finally, various hedging instruments are examined and several numerical examples are given. Overall, this work presents an interesting overview of the foreign exchange market.

 

KEYWORDS: Foreign Exchange, Euro, Dollar, Translation Risk, Transaction Risk, Economic Risk, Cur,

 
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