November 11, 2010

Size and liquidity of the market

The forex is unique in a number of respects:

  • trading volume,
  • the Estrema liquidity market,
  • the large number and variety of market players,
  • geographical decentralization,
  • during daily trading – 24 hours a day (except for the weekend)
  • the variety of factors that influence the exchange rates,

It appears from the study Triennial Central Bank Survey 2004 Bank for International Settlements, the average daily turnover on the markets forex traditional is estimated at 1.880 billions of dollars. Daily averages for April of different years, in billions of dollars are represented in the graph below:

Market turnover forex overall:

  • 621 billions of dollars spot
  • 1.260 billions of dollars in derivatives, referred
  • 208 billions of dollars in forward
  • 944 billions of dollars in forex swaps
  • 107 billions of dollars in FX options.

I futures contracts relative to forex were introduced into the 1972 to Chicago Mercantile Exchange and they are actively exchanged in connection with most of the other futures contracts. The volume of Forex futures volume has grown rapidly in recent years, which amounts to only 7% of the total volume of the marketforex, as reported by the Wall Street Journal Europe (5/5/06, p. 20).

The ten most active traders account for approximately 73% the volume of trade, as reported by the Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market and prices bid (purchase) that ask (sales). The bid/ask spread is the difference between the prices at which a bank or amarket maker is willing to sell (“ask“, the “offer“) and the price at which a market maker is willing to buy (“bid“) from a customer wholesale. This spread is minimal for currency pairs traded very, usually amounting to only 1-3 pip. For example, the ratio bid/ask between EUR / USD would 1,2200/1,2203. The minimum volume for the majority of transactions is usually 100.000 dollars.

These spread may not apply to retail customers of banks, which generally make a mark up on the relationship in bringing cases to 1,2100 / 1,2300 for transfers, the 1,2000 / 1,2400 for banknotes or the travelers cheques. Prices spot of market makers vary, but between EUR / USD usually do not exceed the 5 pip (ie 0,0005). The competition resulted in a significant narrowing of spread to major currencies, up to minimum ranging between 1 and 1,5 pip.

From

The forex is unique in a number of respects:

  • trading volume,
  • the Estrema liquidity market,
  • the large number and variety of market players,
  • geographical decentralization,
  • during daily trading – 24 hours a day (except for the weekend)
  • the variety of factors that influence the exchange rates,

It appears from the study Triennial Central Bank Survey 2004 Bank for International Settlements, the average daily turnover on the markets forex traditional is estimated at 1.880 billions of dollars. Daily averages for April of different years, in billions of dollars are represented in the graph below:

Market turnover forex overall:

  • 621 billions of dollars spot
  • 1.260 billions of dollars in derivatives, referred
  • 208 billions of dollars in forward
  • 944 billions of dollars in forex swaps
  • 107 billions of dollars in FX options.

I futures contracts relative to forex were introduced into the 1972 to Chicago Mercantile Exchange and they are actively exchanged in connection with most of the other futures contracts. The volume of Forex futures volume has grown rapidly in recent years, which amounts to only 7% of the total volume of the marketforex, as reported by the Wall Street Journal Europe (5/5/06, p. 20).

The ten most active traders account for approximately 73% the volume of trade, as reported by the Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market and prices bid (purchase) that ask (sales). The bid/ask spread is the difference between the prices at which a bank or amarket maker is willing to sell (“ask“, the “offer“) and the price at which a market maker is willing to buy (“bid“) from a customer wholesale. This spread is minimal for currency pairs traded very, usually amounting to only 1-3 pip. For example, the ratio bid/ask between EUR / USD would 1,2200/1,2203. The minimum volume for the majority of transactions is usually 100.000 dollars.

These spread may not apply to retail customers of banks, which generally make a mark up on the relationship in bringing cases to 1,2100 / 1,2300 for transfers, the 1,2000 / 1,2400 for banknotes or the travelers cheques. Prices spot of market makers vary, but between EUR / USD usually do not exceed the 5 pip (ie 0,0005). The competition resulted in a significant narrowing of spread to major currencies, up to minimum ranging between 1 and 1,5 pip.

From

The forex is unique in a number of respects:

  • trading volume,
  • the Estrema liquidity market,
  • the large number and variety of market players,
  • geographical decentralization,
  • during daily trading – 24 hours a day (except for the weekend)
  • the variety of factors that influence the exchange rates,

It appears from the study Triennial Central Bank Survey 2004 Bank for International Settlements, the average daily turnover on the markets forex traditional is estimated at 1.880 billions of dollars. Daily averages for April of different years, in billions of dollars are represented in the graph below:

Market turnover forex overall:

  • 621 billions of dollars spot
  • 1.260 billions of dollars in derivatives, referred
  • 208 billions of dollars in forward
  • 944 billions of dollars in forex swaps
  • 107 billions of dollars in FX options.

I futures contracts relative to forex were introduced into the 1972 to Chicago Mercantile Exchange and they are actively exchanged in connection with most of the other futures contracts. The volume of Forex futures volume has grown rapidly in recent years, which amounts to only 7% of the total volume of the marketforex, as reported by the Wall Street Journal Europe (5/5/06, p. 20).

The ten most active traders account for approximately 73% the volume of trade, as reported by the Wall Street Journal Europe, (2/9/06 p. 20). These large international banks continually provide the market and prices bid (purchase) that ask (sales). The bid/ask spread is the difference between the prices at which a bank or amarket maker is willing to sell (“ask“, the “offer“) and the price at which a market maker is willing to buy (“bid“) from a customer wholesale. This spread is minimal for currency pairs traded very, usually amounting to only 1-3 pip. For example, the ratio bid/ask between EUR / USD would 1,2200/1,2203. The minimum volume for the majority of transactions is usually 100.000 dollars.

These spread may not apply to retail customers of banks, which generally make a mark up on the relationship in bringing cases to 1,2100 / 1,2300 for transfers, the 1,2000 / 1,2400 for banknotes or the travelers cheques. Prices spot of market makers vary, but between EUR / USD usually do not exceed the 5 pip (ie 0,0005). The competition resulted in a significant narrowing of spread to major currencies, up to minimum ranging between 1 and 1,5 pip.

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