Anatomy of Forex Market 2015

Anatomy of the FOREX MARKET Opportunities are endless, According to OTC Derivatives Market and Global Bank Surveys, Almost $5.3 Trillion per day averaged in trading during 2013. whereas growth rate in volume is about 20%. Statistically on a fixed price the daily turnover will be double by 2020. It comprises of spot transactions, outright forwards, exchange & currency swaps and options. The 24 hour operation comes with a geographical dispersion and high liquidity for the trader where giving him an option of using leverage to enhance profit and loss margins. TRILLION $5.3 PER DAY Source King M.R, & Rime, D. 12010L The $4 trillion question: What explains FX growth since 2007 suvey? BIS Quarterly Review. Dec. pp. 27-42. Spot Forex Volume By Country Source: 2010 Tr iennial Central Bank Survey Japan 5.6% USA Brazil 2.9% 19% Singapore 5.7% Others 21.7% Hong Kong 4.1% UK 41% In April 2010 the daily average Forex Market turnover topped $5.3 trillion. 85% of this volume was largely down to high-frequency traders, banks and retail invesors trading online. This was 20% higher than in 2007. Following the bankruptcy of lehman broth- ers many financial institutions experienced a sharp rise in volatility and drop in liquidi- ty. With limited market liquidity many investors across various asset classes turned to the forex market to hedge risk. 2008 Lehman's Collapse Barclasys FX Liquidity Index GBPUSD USDJPY EURUSD Average Trade Size Algorithmic (Automated) trading has shown strong growth form 2% in 2004 up to 45% in 2010. This has boosted the growth of multibank platforms. 100 98% 28% 80 55% 60 Automated Trading Manual Trading 72% 40 45% 2005 Average Number of Trades 2006 20 Algorithmic High Frequency Trading in pushing Forex Market turnover higher. Evidence of the increase can be seen with the rise of trade frequency and the reduction in trade size. 2012 2013 2014 Automated Trading Manual Trading Growth of algorithmic frading Evidence of high-frequency trading Sources: CME: EBS: Greenwich Associates Sources: Survey by New York FX Committee CMS сapital market solutions #CM4X original source: https://books.google.ae/books?id=LGjpE0dEEswC&printsec=frontcover&hl=ar&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false http://idei.fr/sites/default/files/medias/doc/conf/euronext_ercbiais_anrdeclerck_0413/programme/vega_chaboud_chiquoine_hjalmarsson_paper_hft.pdf http://www.bis.org/press/p130905.htm http://www.bloomberg.com/news/2013-09-05/singapore-overtakes-japan-as-asia-s-biggest-foreign-exchange-hub.html Risk Warning : All financial products tra ded on margin carryahigh degree of risk to your capital. They arenot suited to all investors andyou can losemore than your initial deposit. Please ensure that you fully understand therisks involvedand seek independent advice if necessary