Markets - Insurance - InsuranceMarkets - Basics - Definitions - Glossary

http://www.1mtx.com/markets-trades/en/index.php?language=en&menu=MARKETS&punkt=Insurance&punkt2=Insurance%20Markets&index=Basics#Insurance%20MarketsBasics The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is over US$ 3 trillion. Foreign Exchange Markets : Basics The foreign exchange market (currency or forex or FX or 4x) is by far the largest financial market in the world: Average daily turnover is estimated at $3,210 billion. Definitions - Terms: A B C D E F 'The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions...' Latest Updates... Daily Update: ? Foreign Exchange Rates (Federal Reserve USA) Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. Market size and liquidity The foreign exchange market is unique because of: (1) its trading volumes; (2) the extreme liquidity of the market; (3) the large number of, and variety of, traders in the market; (4) its geographical dispersion; (5) its long trading hours: 24 hours a day (except on weekends); (6) the variety of factors that affect exchange rates; (7) the low margins of profit compared with other markets of fixed income. Overall turnover, including non-traditional foreign exchange derivatives and products traded on exchanges, averaged around $2.9 trillion a day. This was more than ten times the size of the combined daily turnover on all the world’s equity markets. Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues such as internet trading platforms has also made it easier for retail traders to trade in the foreign exchange market. »...more (Foreign Exchange 2007: International Financial Services, London; IFSL.org). Foreign Exchange Market (Currency or Forex or FX) Names - Terms - Definitions A B C D E F ...more, see » CURRENCY GLOSSARY: Definitions - Countries - Codes » A - Z excerpts below » Alan Greenspan Alan Greenspan Dr. Greenspan was the Chairman of the Board of Governors of the Federal Reserve System from 1987 to 2006. Dr. Greenspan also served as Chairman of the Federal Open Market Committee (FOMC), the Fed's principal monetary policymaking body. American Currency Quotation A direct quotation in the foreign exchange markets whereby the value of the American dollar is stated as a per unit measure of a foreign currency. anchor currency A reserve currency (or anchor currency) is a currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. It also tends to be the international pricing currency for products traded on a global market, such as oil, gold, etc. More recently, however, nations especially in Asia, have been stockpiling reserves in an effort to strengthen export competitiveness by weakening their own currencies, and also to contain quick and large inflows of capital, and buffer against financial crisis such as the Asian financial crisis. »...more (Reserve currency) Balance of Trade (BOT) The largest component of a country's balance of payments. It is the difference between exports and imports. Debit items include imports, foreign aid, domestic spending abroad and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy, and foreign investments in the domestic economy. CAD The ISO code* for the Canadian Dollar, the currency of Canada. »...more 1 Canadian Dollar = 100 Cent Capital Account The net result of public and private international investment flowing in and out of a country. Cash and Carry Trade A trading strategy that involves the simultaneous trading of two similar securities in order to recognize an arbitrage profit. Also known as "basis trading" or "buying the basis." Central Bank A central bank, reserve bank or monetary authority, is an entity responsible for the monetary policy of its country or of a group of member states, such as the European Central Bank (ECB) in the European Union or the Federal Reserve in the United States of America. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized loan interest rates, and acting as a "bailout" lender of last resort to the banking sector during times of financial crisis (private banks often being integral to the national financial system). »...more (Activities and Responsibilities, Monetary Policy, etc.) Convertibility 1. Convertibility is the quality of money which is officially backed by government reserves of a precious metal, probably the gold standard. Under convertibility, currency is seen as more reliable and less prone to exchange-rate fluctuations (though gold, of course, also changes in value). The Bretton Woods Institutions were set up partially to allow countries to peg their currencies to the US dollar instead of their own gold reserves; the U.S. eventually abandoned the gold standard, and thus convertibility, in 1971. 2. It can also refer to the convertibility of one currency into another. Some countries pass laws restricting the legal exchange rates or requiring permits to exchange more than a certain amount. Thus, those countries' currencies are not fully convertible. Country Basket A derivative security designed to mimic the major index of an international exchange. Currency Money circulated within an economy, including coins and paper notes. Currency pair A currency pair depicts a quotation of two different currencies. The first currency in the pair is the base currency. The second currency in the pair is labelled quote currency or counter currency. Such a quotation depicts how many units of the counter currency are needed to buy one unit of the base currency. For example the quotation EUR/USD 1.2500 means that one euro is exchanged for 1.25 US dollar. If the quote moves from EUR/USD 1.2500 to EUR/USD 1.2510, the euro is getting stronger and the dollar weaker. On the other hand if the EUR/USD quote moves from 1.2500 to 1.2490 the euro is getting weaker while the dollar is getting stronger. »...more (Majors - Cross Rates - Pips - Pip Value - Spread) Currency Basket A selected group of currencies whose weighted average is used as a measure of the value or the amount of an obligation. currency market (Currency trading) The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex markets currently exceeds US$1.9 trillion. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. »...more (Market size and liquidity) »...more (Trading characteristics) »...more (Determinants of FX Rates) Dear Money A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Devaluation Lowering the value of a country's currency compared to the value of a commodity or to the value of another country's currency. ECB ...The Eutotower, the ECB Headquarter situated in Frankfurt/Germany.... The European Central Bank (ECB) (also in other languages) is one of the world's most important central banks, responsible for monetary policy covering the 13 member countries of the Eurozone. The ECB was established on 1 June 1998 and its headquarters are located in Frankfurt, Germany. »...more (Powers and objectives) EUR EUR is the ISO code* for the Euro. The Euro (currency sign: € ) is the official currency of the Eurozone (also known as the Euro Area), which consists of the European states of Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Slovenia and Spain. It is the single currency for more than 317 million Europeans. Including areas using currencies pegged to the Euro, the Euro affects more than 480 million people worldwide. With more than € 610 billion in circulation as of December 2006 (equivalent to US$ 802 billion at the exchange rates at the time), the Euro has surpassed the U.S. Dollar in terms of combined value of cash in circulation. 1 Euro = 100 Cents EURIBOR The rate of interest at which panel banks borrow funds from other panel banks, in marketable size, in the EU interbank market. Eurodollar U.S. dollar-denominated deposits at foreign banks or foreign branches of American banks. By locating outside of the United States, Eurodollars escape regulation by the Federal Reserve Board. Euroland The Eurozone (also called Euro Area, Eurosystem or Euroland) is the subset of European Union member states which have adopted the Euro, creating a currency union. The European Central Bank is responsible for monetary policy within the zone. ...more, see Eurozone Eurozone The Eurozone (also called Euro Area, Eurosystem or Euroland) is the subset of European Union member states which have adopted the Euro, creating a currency union. The European Central Bank is responsible for monetary policy within the zone. »...more (Current Eurozone) Exchange Rate The exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. The foreign exchange market is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. »...more (Quotations) »...more (Nominal and real exchange rates) »...more (Asset market model - Fluctuations in exchange rates) Federal Reserve Bank The banks in the USA that carry out Fed operations, including controlling the money supply and regulating member banks. There are 12 District Feds, headquartered in Boston, New York, Philadelphia, Cleveland, St. Louis, San Francisco, Richmond, Atlanta, Chicago, Minneapolis, Kansas City, and Dallas. »...website Foreign exchange market (Forex Market FX Market) The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex markets currently exceeds US$1.9 trillion. Retail traders (individuals) are a small fraction of this market and may only participate indirectly through brokers or banks. »...more (Market size and liquidity) »...more (Trading characteristics) »...more (Determinants of FX Rates) foreign- exchange rate (FX rate) The exchange rate (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. The foreign exchange market is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date. »...more (Quotations) »...more (Nominal and real exchange rates) »...more (Asset market model - Fluctuations in exchange rates) Foreign exchange reserves Foreign exchange reserves (also called Forex reserves or International reserves) are the foreign currency deposits, gold, SDRs and IMF reserve position held by central banks and monetary authorities. These are assets of the central banks which are held in different reserve currencies such as the Dollar, euro and yen, and which are used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions. »...Levels ...see also, Reserves of foreign exchange and gold Forex - FX The foreign exchange market, where brokerage firms and banks are connected over an electronic network that allows them to convert the currencies of most countries. *ISO codes: The ISO 4217 is the international standard describing three letter codes (also known as the currency code) to define the names of currencies established by the International Organization for Standardization (ISO). The ISO 4217 code list is the established norm in banking and business all over the world for defining different currencies...»...currency codes ^ top Forex Market participants Unlike a stock market, where all participants have access to the same prices, the forex market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. »...more (Market participants: Banks - Commercial companies - Central banks - Investment management firms - Hedge funds - Retail forex brokers) "All About...The Foreign Exchange Market in the United States: Trading Foreign Exchange: A Changing Market in a Changing World Some Basic Concepts: Foreign Exchange, the Foreign Exchange Rate, Payment and Settlement Systems Structure of the Foreign Exchange Market The Main Participants in the Market Main Instruments: Over-the-Counter Market Main Instruments: Exchange-Traded Market How Dealers Conduct Foreign Exchange Operations Managing Risk in Foreign Exchange Trading Foreign Exchange Market Activities of the U.S. Treasury and the Federal Reserve Evolution of the International Monetary System The Determination of Exchange Rates Epilogue: What Lies Ahead?..." »...The New York Fed (Newyorkfed.org - website "BIS: The Bank for International Settlements (BIS) is an international organisation which fosters international monetary and financial cooperation and serves as a bank for central banks. ..." About BIS (BIS.org - website) Diversified Banks SECTOR Industry Group Industry Sub-Industry FINANCIALS Banks Commercial Banks Diversified Banks Commercial banks whose businesses are derived primarily from commercial lending operations and have significant business activity in retail banking and small and medium corporate lending. Excludes banks classified in the Regional Banks and Thrifts & Mortgage Finance sub-industries. Also excludes investment banks classified in the Investment Banking & Brokerage sub-industry. see also: » SECTORS » USA - Financial - YHOh758 Foreign Regional Banks (Companies, Quotes, News) » SECTORS » USA - Financial - YHOh757 Foreign Money Center Banks (Companies, Quotes, News) | Reports | Analysis | Opinions | Comments | The weak dollar is an advantage to Boeing, Airbus says. "Airbus staff 'deny dollar death' Employees of European plane maker Airbus have denied that the weak dollar is threatening the company's survival, a German newspaper report has said...The strength of the euro does create a problem but does not threaten the firm's existence, the firm's workers' council told the Berliner Zeitung..." Read more...» (BBC.co.uk - Business News - November 23, 2007) CURRENCY GLOSSARY: Definitions - Countries - Codes » A - Z A 100 piastre note from French Indochina (1954) An old 100 piastre note Take a break... Forex: the base currency 'Fibonacci Forex Trading' Forex market and its players ...just relax... ...The Federal Reserve System Eccles Building (Headquarters) situated on Constitution Avenue in Washington, DC.... The U.S. Fed, Washington ADVERTISEMENT ^ top Sources: Wikipedia.org; Nasdaq.com; SEC.gov; Others; IFSL.org; — 1MTX does not guarantee the accuracy of the contents of this site. 1MTX is not responsible for the content of external internet sites. 1MTX MARKETS Topics: © 1MTX - First Markets Trades Experts - 2008 [ HOME ]