资源描述:
《the foreign exchange market》由会员上传分享,免费在线阅读,更多相关内容在工程资料-天天文库。
1、ChapterChapter22TheForeignExchangeMarketWhetheryouareaDutchexportersellingGoudacheesetoaU.S.supermarketfordol-larsoraU.S.mutualfundinvestinginMexicanstocks,youwillneedtofindawaytoexchangeforeigncurrencyintoyourowncurrencyandviceversa.Theseexchangesofmon-iesoccurint
2、heforeignexchangemarket.Becausedifferentcountriesusedifferentkindsofmoney,theglobalizationprocessofthepast30years,describedinChapter1,hasledtospectaculargrowthinthevolumestradedonthismarket.Thischapterintroducestheinstitutionalstructurethatallowscorporations,banks,
3、internationalinvestors,andtouriststoconvertonemoneyintoanothermoney.Wediscussthesizeoftheforeignexchangemarket,whereitislocated,andwhotheimportantmarketparticipantsare.Wethenexamineindetailhowpricesarequotedintheforeignexchangemarket,andindoingso,weencountertheimpo
4、rtantconceptofarbitrage.Arbitrageprofitsareearnedwhensomeonebuyssomethingatalowpriceandsellsitforahigherpricewithoutbearinganyrisk.Atthecoreoftheforeignexchangemarketaretradersatlargefinancialinstitutions.Westudyhowthesepeopletradewithoneanother,andweconsiderthecle
5、aringmechanismsbywhichfundsaretransferredacrosscountriesandtherisksthesefundtransfersentail.Wealsoexaminehowforeignexchangetraderstrytoprofitbybuyingforeignmoneyatalowpriceandsellingitatahighprice.Finally,thechapterintroducesthetermsusedtodiscussmovementsinexchange
6、rates.Developingtheabilitytousethesetermscorrectlymakesiteasiertodiscusstherisksinvolvedindoingbusinessinanincreasinglyglobalmarketplace.2.1THEORGANIZATIONOFTHEFOREIGNEXCHANGEMARKETTheforeignexchange(sometimesabbreviated“forex”)markettypicallyconjuresupimagesofahec
7、tictradingroom,fullofcomputersandinformationnetworks,withtraderstalkingexcit-edlyontelephones.Thisimageisarealityonthetradingfloorsoftheworld’smajorbanksandotherfinancialinstitutionsthatmakeuptheinterbankmarket.Itmayhelptothinkoftheinterbankmarketasthewholesalepart
8、oftheforexmarketwherebanksmanageinventoriesofcurrencies.Thereisalsoalesshecticretailsideoftheforexmarket,wherethecustomersoftheforeignexchangedea