The Forex Market – A Global Decentralised Market for the Trading of Currencies

Also known as the currency market, the foreign exchange market plays a very important role in the global currency market. Growing at a fast pace, there are a number of traders involved in this type of trade. There are a number of market participants which are involved in this type of trade krw exchange.

Some of the major players in the field include commercial banks, security dealers, smaller banks, retail market makers, commercial companies and national central banks. This market is also known as the most liquid financial market in the world and the US Dollar exchange rate is known to play a very critical role in the Indian forex markets and trade that occurs in the country.

This rate is not only carefully monitored and analysed, but also impacts the return rate of an investor’s portfolio, growth of certain sectors, profitability of firms; besides the many other determinants of the economy.

Some of the different traders include corporations, large banks, institutional investors, currency spectators, central banks, retail investors and other financial institutions.

On a daily basis foreign exchange fixing occurs which refers to the daily monetary exchange rate that is fixed by the national bank of a country. Also known as pegged exchange rate or the Tag of a particular Rate, this type of exchange rate regime occurs at the time when the currency’s value remains fixed against the value of a single, particular currency/currencies or even to the value of a value; for example-gold.

One of the most important factors playing a role when trading the forex (FX) markets is risk management. It is very important to have good money management to be considered a good trader the exchange rate plays a very important role in the trading relationship between two different countries and it is this value which determines the actual returns of the portfolio holding the bulk of the investment.

However, one of the impending and consistent problems that is a cause of deep concern is the persistent decline of the Indian Rupee. When there is any form of depreciation that occurs, it also leads to imports becoming even more expensive. This is extremely important and is an alarming issue for India as it heavily relies on oil as a major import from other countries.