chapter3 foreign exchange market.pptVIP免费

HuangzhiyongHuangzhiyongNanjingUniversityofFinance&Economicshzy196896@sina.comTel：84028239Chapter3Theforeignexchangemarket•MaincontentsThischapterexamineshowtheforeignexchangemarketisorganized,howexchangeratesarequotedandhowtradesareactuallymade.一、Thebasicsofcurrencytrading（一）Foreignexchange–istheactoftradingdifferentnation’smoneys.–Alsoreferstoholdingsofforeigncurrencies.（二）Anexchangerate–Isthepriceofonenation’smoneyintermsofanothernation’smoney.Anexchangerate（一）Basicconception•BigfigureandSmallfigure:USD1=RMB￥7.6025/7.6078•TheBid-Ask(Offer)Spread•BasicPoints•Reading:–1.7300/10FigureTen–1.4990/00NinetyTheFigureAnexchangerate•DirectandIndirectQuotation–Directquote-thenumberofunitsofdomesticcurrencyforoneunitofforeigncurrency.e.g.RMB7.5608/USD–Indirectquote-thenumberofunitsofforeigncurrencyforoneunitofdomesticcurrency.e.g.USD0.1323/RMB•Dollarquotation：Usethedollarasthebasiccurrency.Anexchangerate•Thespotexchangerate–Thepriceof“immediate”exchange.(exchangeordeliveryintwoworkingdaysaftertheexchangeisagreed)•Theforwardexchangerate–Thepricesetnowforanexchangethatwilltakeplacesometimeinthefuture.Suchas30,90,180daysfromnow.Figure3.1ExchangeRateQuotations,May31,2011（三）TheforeignexchangemarketStructureDecentralised'interbank'marketIsnotasinglegatheringplacewheretradersshoutbuyandsellordersateachother.Itisatwo-tieredmarket:Interbankmarket(Wholesale)andClientmarket(Retail)Mainparticipants:CentralBanks,commercialandinvestmentbanks,hedgefunds,corporations&privatespeculators•Thefree-floatingcurrencysystemarosefromthecollapseoftheBrettonWoodsagreementin1971•Onlinetradingbeganinthemidtolate1990'sFOREIGNMARKETSInterbankMarketClientMarket•TradingHours–24hourmarket–Sunday5pmESTthroughFriday4pmEST.–TradingbeginsintheAsia-PacificregionfollowedbytheMiddleEast,Europe,andAmerica•Size–Oneofthelargestfinancialmarketsintheworld–$3.2trillionaveragedailyturnover,equivalentto:•Morethan10timestheaveragedailyturnoverofglobalequit...