FOREX-Market size and liquidity

Currently, the currency market is one of the largest financial markets more liquid and the world. Merchants are large banks, central banks, currency speculators, companies, governments and other financial institutions. Daily flat-flat volume in the money market and related markets with robust global growth. Perputaran Daily reported that more than 3.2 trillion U.S. dollars U.S. in April 2007 by the Bank for Internacionales.Desde ago, the market has grown. According to the annual Euromoney FX Poll, 41% more volume to grow between 2007 and 2008.

Substitution total of 3.98 trillion U.S. dollar today, trading in London contributed around 1:36 trillion U.S. dollars, or 34.1% of the total, making London the center for global currency. In the second and third place respectively, with operations in New York, 16.6%, contributing 6.0% and Tokyo. In addition to "traditional interchange, 2.1 trillion U.S. dollars in listed derivatives.

FX OTC or contract term was introduced in 1972 on the Chicago Mercantile Exchange and listed companies active in the association with most of the contract term.

Some developed countries also allows FX trading products (such as currency futures and option term currency) in exchange. All developed countries have fully convertible capital account. Most developing countries do not allow products in FX trading in the light often check on the capital account. However, some countries appear to be targeted (eg Korea, South Africa, India) has been successful experiment with term foreign currency exchange, even though few have control over the balance of capital.

Term FX volume has grown rapidly in recent years and represents about 7% of the total volume of foreign exchange market, according to The Wall Street Journal Europe (5/5/06, case of 20).

Top 10 currency traders% of total volume, May 2009 Position Name Flats Market
1 Deutsche Bank 20.96%
2 UBS AG 14.58% 10.45%
3 Barclays Capital
4 Royal Bank of Scotland 8.19%
5 Citi 5% 7:32
6 JPMorgan 5.43%
7 HSBC 4.09%
8 Goldman Sachs 3.35%
9Credit Suisse 3:05
10 BNP Paribas 2.26%

Trade currency increased 38% between April 2005 and April 2006 and has more than doubled since 2001. This is mainly caused by increased importance as devisa asset classes and an increase in fund management assets, including hedge fund and fund Pensiun. Implementation of the various selection has made it easier for traders to trade in currency markets. In 2006, retailers of more than 2% of total Forex market with flat-flat daily trading volume of more than U.S. $ 50-60 million (see retail platform). Because foreign exchange is the OTC market where agents / distributors negotiate directly with one another, there is no central exchange or house Kliring. Center is geographically the largest expenditure the UK, especially London, which according to estimates by IFSL shares have increased global turnover in traditional transactions from 31.3% in April 2.004-34,1% in April 2007. Ten most active traders account for almost 80% of trade volume, according to Euromoney FX Poll 2008. Large international banks are continuously providing the market with a bid (buy) and ask (sell) prices. Purchase / sale is the difference between the price at which a bank or market maker will sell ( "ask" or "offer") and the price at which market makers will buy ( "bid") from wholesale customers. Expansion of this active for at least a listed currency pair, usually 0-3 pips. For example, the bid / ask quote of EUR / USD might be 1.2200/1.2203 on retail brokers. Quote minimum size for most transactions is usually 100,000 units of base currency, which is a standard "lot".

This margin does not happen to retail customers at banks, which typically make a difference to say the transfer to 1.2100/1.2300, 1.2000/1.2400 or say to notes or traveler's checks. Prices in the spot market makers vary, but on EUR / USD are usually no more than 3 pips wide (ie 0.0003). Competition with the much larger major operation, and reduce the pip spread on major pairs to as little as 1-2 pips