Question: What are the salient features of foreign exchange market explain?

The features of the foreign exchange market include it’s high liquidity, transparency, dynamism, 24 hour operation, low transaction cost, and a large bias towards towards the US dollar.

What are the salient features of foreign exchange market?

The features of the Foreign Exchange Market are as follows:

  • High Liquidity. The foreign exchange market is the most easily liquefiable financial market in the whole world. …
  • Market Transparency. There is much clarity in this market. …
  • Dynamic Market. The foreign exchange market is a dynamic market structure. …
  • Operates 24 Hours.

What are the salient features of foreign exchange market in India?

Foreign Exchange Market In India

  • Foreign Exchange Market In India.
  • Features Of Foreign Exchange Market. …
  • 1) Low Trading Cost: …
  • 2) Trading Opportunity For 24 Hours, 5 Days A Week. …
  • 3) High Leverage. …
  • 4) Highly Transparent. …
  • 5) Accessibility Of Forex Market. …
  • 6) High Liquidity.

What is a foreign exchange market explain?

foreign exchange market (forex, or FX, market), institution for the exchange of one country’s currency with that of another country. Foreign exchange markets are actually made up of many different markets, because the trade between individual currencies—say, the euro and the U.S. dollar—each constitutes a market.

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What are the 3 types of foreign exchange market?

Types Of Foreign Exchange Market

  • The Spot Market. In the spot market, transactions involving currency pairs take place. …
  • Futures Market. …
  • Forward Market. …
  • Swap Market. …
  • Option Market.

What is foreign exchange market Class 12?

Foreign exchange market: It is the market where the national currencies are converted, exchanged or traded for one another. 4. Hedging function: Hedging function pertains to protecting against foreign exchange risks, where Hedging is an activity which is designed to minimize the risk of loss. 5.

What is foreign exchange market in India?

The FOREX market, also known as the Foreign Exchange Market, is a decentralized global marketplace for foreign currency trading. The FOREX market is an OTC (over-the-counter) market and foreign exchange rates are dictated by it. It also entails selling, purchasing, and exchanging currencies at market rates.

What are the functions of foreign exchange market Class 12?

Functions of Foreign Exchange Market:

  • Transfer function: It transfers the purchasing power between countries.
  • Credit function: It provides credit channels for foreign trade.
  • Hedging function: It protects against foreign exchange risks.

What type of market is the foreign exchange market?

The foreign exchange market is an over-the-counter (OTC) marketplace that determines the exchange rate for global currencies. It is, by far, the largest financial market in the world and is comprised of a global network of financial centers that transact 24 hours a day, closing only on the weekends.

What is the meaning of foreign exchange explain with example?

Foreign Exchange (forex or FX) is the trading of one currency for another. For example, one can swap the U.S. dollar for the euro. Foreign exchange transactions can take place on the foreign exchange market, also known as the forex market.

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What are the four different markets in a foreign exchange market?

Kinds of Foreign Exchange Market

  • Spot Markets.
  • Forward Markets.
  • Future Markets.
  • Option Markets.
  • Swaps Markets.