My epic padlet by Nguyen Thi Thu Trang K17 HL https://padlet.com/trangntths171429/kie0ct24gisnocya en-us 2023-10-25 11:00:21 UTC 2023-10-25 11:55:20 UTC hello@padlet.com CHAPTER 5 nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762733218 2023-10-25 11:28:07 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762733218 Function and Structure of the FX Market nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762734223 2023-10-25 11:29:05 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762734223 The Spot Market nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762734428 2023-10-25 11:29:15 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762734428 The Forward Market nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762734629 2023-10-25 11:29:29 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762734629 nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762739146 Foreign exchange market is a worldwide linkage of bank currency traders, nonbank dealers, and FX brokers, who assist in trades, connected to one another via a network of telephones, computer terminals, and automated dealing systems.

]]> 2023-10-25 11:33:27 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762739146 nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762739888 The structure of the foreign exchange market is an outgrowth of one of the primary functions of a commercial banker: to assist clients in the conduct of international commerce.

]]> 2023-10-25 11:34:10 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762739888 nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762740943 FX market participants:

  • International banks

  • Banks customer

  • Nonbank dealers

  • FX brokers

  • Central banks

]]> 2023-10-25 11:35:13 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762740943 Correspondent Banking Relationships nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762744703 International commercial banks communicate with one another with:

  • SWIFT

  • CHIPS

  • ECHO Exchange Clearing House Limited


]]> 2023-10-25 11:38:40 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762744703 nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762745630 The spot market involves almost the immediate purchase or sale of foreign exchange.

]]> 2023-10-25 11:39:31 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762745630 Spot Rate Quotations nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762746330 (1) Direct quotation

◦ the U.S. dollar equivalent

(2) Indirect Quotation

◦ the price of a U.S. dollar in the foreign currency

]]> 2023-10-25 11:40:10 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762746330 Cross-Exchange Rate Quotations nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762747484 A cross-exchange rate is an exchange rate between a currency pair where neither currency is the U.S. dollar.


]]> 2023-10-25 11:41:06 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762747484 nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762749113 2023-10-25 11:42:23 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762749113 nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762749590 2023-10-25 11:42:42 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762749590 The Bid-Ask Spread nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762752257

  • Bid price: the price a dealer is willing to pay you for something.

    • Ask price: the amount the dealer wants you to pay for the thing.

    • Bid-ask spread: the difference between the bid and ask prices.

    ]]>     2023-10-25 11:44:52 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762752257     nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762753473 2023-10-25 11:45:44 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762753473 Triangular Arbitrage nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762755645 Triangular arbitrage is the process of trading out of the U.S. dollar into a second currency, then trading it for a third currency, which is in turn traded for U.S. dollars.

    ]]>     2023-10-25 11:47:26 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762755645     nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762757364 A forward contract is an agreement to buy or sell an asset in the future at prices agreed upon today.

    ]]>     2023-10-25 11:48:57 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762757364     Long and Short Forward Positions nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762759025 ❖ If you have agreed to sell FX forward => you are short.

    ❖ If you have agreed to buy FX forward => you are long.


    ]]>     2023-10-25 11:50:16 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762759025     Forward Cross-Exchange Rate nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762760300 2023-10-25 11:51:19 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762760300 Forward Premium nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762763581 2023-10-25 11:54:02 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762763581 Swap Transactions nhungvhhs171090 https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762764850 A forward swap transaction is the simultaneous sale (or purchase) of spot foreign exchange against a forward purchase (or sale) of approximately an equal amount of the foreign currency.

    ]]>     2023-10-25 11:55:04 UTC https://padlet.com/trangntths171429/kie0ct24gisnocya/wish/2762764850