Foreign Exchange (Forex, FX) is the most liquid market in the world with an estimated daily average of over $4 trillion traded. With over 36% of Foreign Exchange transactions accounted for in the UK, FX Squared Ltd are strategically placed in the middle of London. A number of factors can affect the fluctuations throughout the currency markets; Political Conditions, Economic Factors and Market Psychology are three of the key elements.
The Foreign Exchange market is unique due to:
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Its huge trading volume, leading to high liquidity |
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Its geographical dispersion |
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Its continuous operation: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday |
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The variety of factors that affect exchange rates |
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The low margins of relative profit compared with other markets of fixed income |
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The use of leverage to enhance profit margins with respect to account size |
In 2010 the following figures were documented:
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$1.490 trillion in spot transactions |
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$475 billion in outright forwards |
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$1.765 trillion in foreign exchange swaps |
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$43 billion currency swaps |
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$207 billion in options and other products |
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