|
|
Subject:
Forex
Category: Business and Money > Finance Asked by: michel123-ga List Price: $2.00 |
Posted:
08 Sep 2006 09:01 PDT
Expires: 08 Oct 2006 09:01 PDT Question ID: 763411 |
It is known that the Forex daily volume is about $1.5 trillion. Question: Does this amount include leverage, or is it the 'real money' traded volume ? If it includes leverage, what is the real traded amount ? |
|
There is no answer at this time. |
|
Subject:
Re: Forex
From: myoarin-ga on 08 Sep 2006 17:28 PDT |
That is the real money traded, but perhaps you need to understand the most forex transactions are "day trading" by financial institutions, buying and selling individual contracts for many millions of dollars, but at the end of the day, their "open position" - whether they are long or short in their home currency - is very much smaller. Does that help? |
Subject:
Re: Forex
From: michel123-ga on 09 Sep 2006 01:25 PDT |
Dear Myoarin, Thanks for your comment. Do you have an idea of how much average "open position" total margin volume is at the end of the day ?? |
Subject:
Re: Forex
From: myoarin-ga on 09 Sep 2006 03:43 PDT |
Hi Michel, The open position allowed by management varies depending on the size* of the bank and management's risk attitude when setting the limit that the dealers have to stay within, otherwise they need to get approval for having exceeded the limit. However, with global institutions and 24 hour trading around the world, the open position in a bank's operation on one continent can passed on - say, from Europe to USA - so that the NY office can cover the open position in Europe. *Size: An open position (also for derivatives) is included in balance sheet risk ratios that are set by local bank law and other directives. CHeers, Myoarin |
If you feel that you have found inappropriate content, please let us know by emailing us at answers-support@google.com with the question ID listed above. Thank you. |
Search Google Answers for |
Google Home - Answers FAQ - Terms of Service - Privacy Policy |