FinancialDistress幻灯片.pptVIP

32.2 Foreign Exchange Markets and Exchange Rates Without a doubt the foreign exchange market is the world’s largest financial market. In this market one country’s currency is traded for another’s. Most of the trading takes place in a few currencies. FOREX Market Participants The FOREX market is a two-tiered market: Interbank Market (Wholesale) About 700 banks worldwide stand ready to make a market in Foreign exchange. Nonbank dealers account for about 20% of the market. There are FX brokers who match buy and sell orders but do not carry inventory and FX specialists. Client Market (Retail) Mark