ECONOMICS
FOREIGN CURRENCY MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -The forex market is available for trading 24 hours a day except for weekends. The forex market is decentralized and driven by local sessions, four in particular-Sydney, Tokyo, London, and New York.
Detailed explanation-2: -A foreign exchange short position in FX forward markets is a commitment to sell a specified amount of one currency against payment in another currency at a fixed future date, known as the value date, at a specified exchange rate.
Detailed explanation-3: -Turnover in foreign exchange markets. Turnover in OTC FX markets averaged $7.5 trillion per day in April 2022 (Graph 1, left-hand panel, and Table 1).
Detailed explanation-4: -The daily cut-off is the time that forex dealers set that distinguishes the end of one trading day from the beginning of the next. The cut-off is important to establish for record keeping purposes and for interest credits or debits, since forex markets often trade 24 hours a day.