Currency trading statistics

 What is the statistics behind currency trading?

There are many ways to trade in currency market in all over the world. Now I am going to discuss only future and option in the currency market this is call currency derivatives. While trade is international currency are national, as international transactions are called in global currency it is usually e they are bought and sold for one another this is called currency trading.

Exchange rate of currency

There are many factor affect the exchange rate of a currency. Supply and demand for the country's currency in the international foreign exchange market.according to economics theory the demand and supply dynamics is principally influenced by factors like interest rate inflation rate balanced and economic and political scenario in the country. Rise in export earning of a country increases foreign exchange supply similarly a rise in import increases demand there are are objective region but there are many subjective reason to some of the subjective region are directional point of market participants expectations of national economic performance confidence in a country's economic .

Future contract

Currency future are one of the most traded future contracts.it is agreements to buy and sale and asset at a specific price at a specified date in the future. It is traded on a regulated exchange and agreement to buy or sell a specified quantity of an underlying currency e on a specified date in the future at a specified rate.

Currency derivatives

Strong correlations of foreign exchange has to interest rate equity floor and commodity will translate to opportunity to trade currency future independently or in conjunctions with equity commodity live gold or etc

The export exchange rate refer to the 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 the specific future. The main differences between FX spot and forward price is that a forward price reflects the interest rate differential of the respective currencies for the specified future date.

Forwarded price =sport price+/-forward points.

Forward points combined the benefit or disadvantage of trading the specific currency for the specific time.

Contract expiration

contract expiration date for each contract shall be the last working day of the month excluding Saturday.the last trading day for each contract shall be to working day period to the contract expiration date. The settlement will be fixed based on the reserve Bank of country.

In India the National stock exchange (NSE) group which has broad you trading in in equity, interest rate commodities and currency bring you trading in currency future and option.

Arbitrageurs

Arbitrageurs get the opportunity of trading in currency future by simultaneous purchase and sale in two different market taking advantage of price difference shall between the market.

Investors

All those interested in taking a view on appreciation for depreciation of exchange rate in the long and short term can participate in the MCX-SX currency future.

Example

if one expect depreciation of Indian rupee against the US dollar then he can hold on long means by position in USDINR contact for returns. If other expect appreciation he can sale contract if he see appreciations of the Indian rupees.

A host of benefitsare available to a wide range of financial Market participants including wages exporters importers corporates and banks investors and arbitrators on mcx-sx.