Radka Hlavnová

 (FX Market, Forex Market,Currency market)  Is a form of exchange for the global trading of international currencies  An exchange market is a highly organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are sold and bought.  The market in which participants are able to buy, sell, exchange and speculate on currencies.

 Market participants: Foreign exchange markets are made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. Firms: exporters and importers Banks: short position, long position Governments/monetary authorities: Market interventions

 Non-banking entitities: business transactions and hedging  Banks: foreign exchange dealers  Arbitrageurs: profit seeking from variations in rates in different markets  Speculators: profit seeking from movements in exchange rates

 Exchanges can be subdivided: by objects sold:  stock exchange or securities exchange stock exchange  commodities exchange commodities exchange  foreign exchange market foreign exchange market by type of trade:  Spot market (immediate delivery, rates at the time of transaction)  Forward market (Contract for future delivery)  Derivatives Markets: Futures and Options

 American investor need to firstly exchange USD for EUR  The return of the investment depends:  Not only on the performance of the stocks  Also on the development on the FX Market (HEDGING) (In order to make a responsible decision a lot of new information must be collected and analyzed) -different techniques of foreign exchange trading - Important issue of risk and liquidity management

 FX market had existed long before international porfolio investments became as widespread as today  The forex market is considered to be the largest financial market in the world.  It is important to realize that the foreign exchange market is not a single exchange, but is constructed of a global network of computers that connects participants from all parts of the world.  The average daily turnover in the global foreign exchange and related markets is continuously growing

 FX market is related to export/import activities (Czech Republic- EUR/CZK exchange rate, tourism,foreign direct investments etc)  Payments of services, foreign direct investments, porfolio investments, exchange rate speculations etc.

 New York  London  Tokyo  Hong Kong  Singapore

Top 10 currency traders % of overall volume, May 2012 RankNameMarket share 1 Deutsche Bank 14.57% 2 Citi 12.26% 3 Barclays Investment BankBarclays Investment Bank 10.95% 4 UBS AG 10.48% 5 HSBC 6.72% 6 JPMorgan 6.6% 7 Royal Bank of ScotlandRoyal Bank of Scotland 5.86% 8 Credit Suisse 4.68% 9 Morgan Stanley 3.52% 10 Goldman Sachs 3.12% ^^ Source: Euromoney FX survey FX survey 2012: The Euromoney FX survey is the largest global poll of foreign exchange service providers.'FX survey 2012

 Witzany J.,International Financial Markets, VŠE., 2010  reign-exchange-markets.asp#axzz28hv9q4nL