Foreign Exchange Dealing Room Essay Example | Topics and Well Written Essays - 10000 words

Foreign switch over Dealing Room - Essay ExampleAccording to the world- wide central banking organization which is the Bank for internationalist Settlements, the amount of daily trading done in the forex market is more than three trillion US Dollars. Thus the trading amount is so much that it is much larger than all of the US contrast markets paying backn together. Here, trading from the whole world is done with or without the involvement of hard cash.The trading begins in Sydney everyday, and moves first to Tokyo followed by London and past New York as the business day get in every financial sector. The exchange rates are shown around the world continuously on the computer.The trading takes place when any trader quotes a price for any currency on his machine, and then anyone in the word willing to trade at that particular price can reply to that meaning and trade. Thus the buyer and sellers can be from any country and virtually trade with other without creation present at an y particular. The trading takes place between three continents which makes it possible to react or change any decision by any trader regarding his trading activity any termination or activity. The value of a particular currency relative to other currencies is influenced by many factors that the main factor affecting it is pure supply and demand of the market. If the demand rises or supply falls, it results in price rise or price fall respectively. 1. DEALING ROOM-ORGANIZATIONAL STRUCTUREIts organization consists of two tiers that is to say the retail tier and the wholesale tier.In the retail tier, trading in forex is done by the sensitive agents whereas in the wholesale tier, the dealings between dispersed and diverse banks and big financial institutions , multinational corporations take place. In the forex market, the traders and the individuals have different access code levels unlike the stock market, where every client can access the same price of stocks like the other part icipants or individuals. Whereas in the forex market, on the top level, there is the biggest investing banking firms like Citi and Deutsche Bank. At this level, where the difference between