The market is the main place for trading.
Unlike the stock market, which is closed every day, trading hours are limited.
The foreign exchange market is a 24-hour trading system with no time limit.
What are the main foreign exchange markets?
Let’s introduce the World Eight.
1. London Foreign Exchange Market The London Foreign Exchange Market is operated by the London branches of banks and foreign banks, other non-bank financial institutions engaged in foreign exchange business and the Bank of England.
Almost 100 of the world’s largest commercial banks have branches in London.
They provide clients with a variety of foreign exchange services and conduct large foreign exchange transactions with each other.
2. The New York Foreign Exchange Market The New York Foreign Exchange Market is not only the center of the foreign exchange business in the United States, but also one of the most important markets in the world.
It is the second largest in the world in terms of daily trading volume and the clearing centre for global transactions.
3. Tokyo Foreign Exchange Market The Tokyo Foreign Exchange market has developed along with the development of Japan’s foreign trade and economy, which is related to the process of Japan’s financial liberalization and internationalization.
The Tokyo foreign exchange market is relatively homogeneous, with dollar swaps still the biggest trade because most of Japan’s trade is denominated in dollars, while most of Japan’s overseas assets are.
Later, due to slow growth, the growth rate of Yen-dollar trade decreased and Yen-dollar trade increased substantially.
Japan is a typical export processing country, so the Tokyo market is greatly affected by the centralized collection and payment of import and export trade.
In other words, the market has a distinct seasonality.
In addition, since the Japanese business community is used to settling accounts at the end of the month and during the corporate settlement period, the export time is relatively concentrated.
4. Singapore Foreign Exchange Market The Singapore foreign exchange market has grown with the development of the Asian dollar market.
It is the fourth largest foreign exchange market in the world, second only to Tokyo in average daily trading volume.
Singapore’s foreign exchange market is an invisible one.
It usually opens at 8 a.m. and closes at 3 p.m.
Hong Kong Foreign Exchange Trading Market Hong Kong is the fifth largest foreign exchange trading center in the world.
Markets open each day at 9 a.m., but many financial institutions have market indications half an hour earlier.
By 5 p.m., banks had leveled their books for the day and would do little new trading.
Generally speaking, the market can be considered closed at 5:00 PM.
But in fact, after the Hong Kong foreign exchange market closed, many institutions continued to trade in London and then New York.
6. Zurich Foreign Exchange Market There are no foreign exchange brokers in the Zurich Foreign Exchange Market and all foreign exchange transactions are conducted directly between banks.
In foreign exchange trading, transactions are mainly carried out against the US dollar, and other currencies are cross-traded through the US dollar.
Therefore, the Swiss franc to the US dollar is the main exchange rate in the Zurich foreign Exchange market, and the Swiss franc to other currencies is converted in US dollars.
7. Frankfurt Foreign Exchange Market The Frankfurt Foreign Exchange Market is the home of the German Central Bank (Bundesbank) and is divided into a pricing market and a general market.
The fixing market is handled by officially appointed foreign exchange brokers.
They belong to five exchanges: Frankfurt, Dusseldorf, Hamburg, Munich and Berlin.
They receive foreign exchange transactions from banks. If the transactions are not balanced, the exchange rate will continue to change until the buying and selling exchange rates are equal.
At about 12:45 a.m., the Bundesbank sent a person to the Frankfurt foreign exchange market to determine the official price of the mark.
The main business of the central bank’s intervention in the foreign exchange market is transactions between dollars and euros, of which 70 per cent is spot foreign exchange and 30 per cent is forward foreign exchange.
Sometimes foreign currencies intervene in exchange rate changes between foreign currencies.
In addition to coordinating foreign exchange transactions with local banks, foreign exchange brokers also contact national foreign exchange markets at all times to facilitate foreign exchange transactions between Germany and the rest of the world.
Currencies traded in the Frankfurt Foreign Exchange market include the US dollar, Swiss franc, Euro, etc.
8. Paris Foreign Exchange Market The Paris Foreign Exchange market is a market for foreign exchange transactions between foreign exchange banks, foreign exchange brokers and their clients in Paris.
The Paris foreign exchange market is a combination of tangible and intangible markets.
Transactions in the physical market are limited to determining the open exchange rate at which clients trade, or to adjusting their differences, and the volume of business is small.
Most real transactions take place in invisible markets.
Accordingly, the Paris foreign exchange market is divided into two parts: one is the daily pricing market.
That is, the daily exchange rate of the franc against the major national currencies is determined by selling foreign currency at the Paris Foreign Exchange.
The other part is the general foreign exchange market, where banks trade by telephone or telex at prices set by the pricing market.
The main trading currencies are US dollar, British pound, Belgian franc, etc.
Because French banks are limited to trading between francs and foreign currencies, French banks are very active with each other.
The Paris foreign exchange market includes spot transactions, forward transactions and adjustment transactions.
The dollar tumbled and oil prices rose to a four-week high as the emergency authorisation of COVID-19 oral drugs returned risk taking sentiment.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
