Companies
An important part of this market comes from the financial activities of companies seeking foreign exchange
to pay for goods and services. Commercial companies often trade fairly small amounts compared to banks and their trades often have little short term impact on market rates. Nevertheless trade flow are an important factor in the long term direction of a currency exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposure that is not widely known by other market participants.
to pay for goods and services. Commercial companies often trade fairly small amounts compared to banks and their trades often have little short term impact on market rates. Nevertheless trade flow are an important factor in the long term direction of a currency exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposure that is not widely known by other market participants.
No comments:
Post a Comment