scholarly journals The Creation of the Convenient Investment Strategy in Forex

2019 ◽  
Vol 5 (1) ◽  
pp. 80
Author(s):  
Daniela Majerčáková ◽  
Michal Greguš
Keyword(s):  
Financial Markets ◽  
Financial Market ◽  
Foreign Exchange Market ◽  
Foreign Currency ◽  
Investment Strategy ◽  
Business Strategies ◽  
Exchange Market ◽  
Foreign Countries ◽  
The World ◽  
Unpredictable Environment

Forex that belongs into the biggest and the most widespread financial markets in the world has the daily turnover that is assessed to more than 5 trillion USD. This fact is at the same time a temptation for investors and attracts them to trade in this market. Only the small percentage from this daily turnover is made of the business of governments and companies, that purchade in foreign countries or need to exchange foreign currency for the domestic one. The majority consists of the speculative business. Speculative business is based on the expectations of a speculator on the future rise or fll of exchange rate, that he plans to earn money on. In this case, we are talking about the market with unpredictable environment. It is controlled by the crowd of people who create the most extensive financial market of the world by their mutual purchasing and selling foreign currencies. The aim of this paper is to create the convenient investment strategy on the basis of the analysis of foreign exchange market. We have used the description for the fulfillment of this aim and consequently we have focused on business strategies as the fundamental and technical analysis and its use in the real trading. We have described the development of trading in the chosen market and period by means of fictitious account on the platform Metatrader4. Consequently, we have analysed the influence of the particular factors on the results of investing in Forex

scholarly journals HEDGING CURRENCY RISKS IN INTERNATIONAL BUSINESS USING THE OPPORTUNITIES OF THE INTERNATIONAL FOREIGN EXCHANGE MARKET

2021 ◽  
Author(s):  
Olena Liegostaieva
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
International Business ◽  
Foreign Exchange Market ◽  
Foreign Currency ◽  
Exchange Market ◽  
Currency Risk ◽  
Exchange Rate Fluctuations ◽  
Current Value ◽  
Financial Result

The article is devoted to the study of currency risk hedging in international business. The article notes that the international foreign exchange market is the largest and fastest growing of all world markets. The characteristic features of the international currency market are substantiated and offered. It is also noted that foreign exchange transactions provide economic ties between participants located on different sides of state borders: settlements between firms from different countries for the supply of goods and services, foreign investment, international tourism and business travel. It is determined that hedging of currency risks is the protection of funds from the unfavorable movement of exchange rates, and is carried out in fixing the current value of funds by concluding an agreement on the foreign exchange market. When hedging, the risk of exchange rate changes disappears, and this makes it possible to forecast the company's activities and see the financial result, which is not distorted by exchange rate fluctuations, which will allow you to determine product prices, calculate profits, etc. The main difference between hedging and other types of transactions is that its purpose is not to generate additional profits, but to reduce the risk of potential losses, as risk reduction is almost always necessary to pay, hedging, of course, involves additional costs. Hedging is a way to improve business planning. An enterprise wishing to use this service shall pledge the specified amount, from which losses on its positions will be deducted. In today's conditions, thanks to the foreign exchange market, there is a very reliable way to hedge currency risk. This method is to fix the current value of funds by concluding agreements in this market. With hedging, the company eliminates the risk of exchange rate fluctuations, and this allows you to forecast activities and see the financial result, which is not changed by exchange rate fluctuations. Allows you to pre-determine product prices, determine profits, etc. Thus, the principle of hedging in international business is to open a currency position in a foreign currency account for future transactions to convert funds.

Global markets as global conversations

2007 ◽  
Vol 27 (5-6) ◽  
Author(s):  
Karin Knorr Cetina
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Global Market ◽  
Global Markets ◽  
Economic Aspects ◽  
Exchange Market ◽  
Conversational Interaction ◽  
Interaction System ◽  
Streaming Flow

AbstractFinancial markets are one of the most iconic and influential structures of our time. The foreign exchange market in particular is also the most genuinely global market—and the largest market worldwide, with an average daily turnover of 1.8 trillion US dollars. The foreign exchange market is also structurally like a massive conversational interaction system; many of its transactions are conducted through electronically mediated ‘conversations’. Transactions not conducted through conversations but through an electronic broker also display a sequential turn-taking structure. In this paper, I analyze the streaming ‘flow’ architecture of this market in terms of its sequential structures and their technological and economic aspects. I also specify and analyze several types of texted sequences that articulate and illustrate the response-based interaction system of this market. I argue that informational sequences are particularly important; the informational liquidity of this market sustains and supports the market's economic liquidity.

MEASURING SHOCK IN FINANCIAL MARKETS

2000 ◽  
Vol 03 (03) ◽  
pp. 347-355 ◽  
Author(s):  
GILLES O. ZUMBACH ◽  
MICHEL M. DACOROGNA ◽  
JØRGEN L. OLSEN ◽  
RICHARD B. OLSEN
Keyword(s):  
Financial Markets ◽  
High Frequency ◽  
Foreign Exchange Market ◽  
Exchange Market ◽  
Time Intervals ◽  
Event Scale ◽  
Time Horizons ◽  
Richter Scale ◽  
Market Shocks ◽  
Short Time

Analogous to the Richter scale for earthquakes, we introduce the Scale of Market Shocks (SMS), an "event" scale to quantify the size of shocks in financial markets. It is based on price volatilities and computed by integrating volatilities over time horizons ranging from 1 hour to 42 days. The SMS is computed using quality high frequency market data and can be constructed for any market. We compute the SMS for the foreign exchange market. For two major FX rates, we study the relation between SMS peaks and major "world events". We measure also the correlation between the Scale of Market Shocks index and the size of the subsequent price movements and show a high correlation for short time intervals.

Analyzing the Influences of Passive Investment Strategies on Financial Markets via Agent-Based Modeling

2008 ◽  
pp. 224-238 ◽  
Author(s):  
Hiroshi Takahashi ◽  
Satoru Takahashi ◽  
Takao Terano
Keyword(s):  
Asset Pricing ◽  
Financial Markets ◽  
Financial Market ◽  
Investment Strategy ◽  
Agent Based Modeling ◽  
Investment Strategies ◽  
Agent Based Model ◽  
Efficient Market ◽  
Agent Based ◽  
Price Fluctuations

This chapter develops an agent-based model to analyze microscopic and macroscopic links between investor behaviors and price fluctuations in a financial market. This analysis focuses on the effects of Passive Investment Strategy in a financial market. From the extensive analyses, we have found that (1) Passive Investment Strategy is valid in a realistic efficient market, however, it could have bad influences such as instability of market and inadequate asset pricing deviations, and (2) under certain assumptions, Passive Investment Strategy and Active Investment Strategy could coexist in a Financial Market.

‘Indian Stock Market Volatility’: A Study of Inter-linkages and Spillover Effects

2019 ◽  
Vol 18 (2_suppl) ◽  
pp. S183-S212 ◽  
Author(s):  
Suparna Nandy (Pal) ◽  
Arup Kr. Chattopadhyay
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Volatility Spillover ◽  
Exchange Market ◽  
Causality Test ◽  
Asymmetric Volatility ◽  
Indian Stock Market ◽  
Domestic Stock

The article attempts to examine interdependence between Indian stock market and other domestic financial markets, namely, foreign exchange market, bullion market, money market, and also Foreign Institutional Investor (FII) trade and foreign stock markets comprising one regional stock market represented by Nikkei of Japan and other stock market for the rest of the world represented by Standard & Poor’s (S&P) 500 of the USA. Attempts are also made to examine asymmetric volatility spillover, first, between the Indian stock market and other domestic financial markets and second, between the Indian stock market and global stock markets (represented by Nikkei and S&P 500) along with the foreign exchange market. To measure linear interdependence among multiple time series of financial markets multivariate Vector Autoregression (VAR) analysis, Granger causality test, impulse response function and variance decomposition techniques are used. For estima-ting the volatility spillover among the aforesaid markets Dynamic Conditional Correlation-Multivriate-Threshold Autoregressive Condi-tional Heteroscedastic (DCC-MV-TARCH) (1, 1) model is applied on daily data for a quite long period of time from 01 April 1996 to 31 March 2012. The results of multi­variate VAR analysis, Granger causality test, variance decomposition analysis and impulse response function estimation establish significant interdependence between domestic stock market and different other financial markets in India and abroad. The results of DCC-MV-TARCH (1, 1) model estimation further show signi- ficant asymmetric volatility spillover between the domestic stock market and the foreign exchange market and also from the domestic stock market to bullion market and changes in gross volume of FII trade. We also find (a) both way asymmetric volatility spillover between the domestic stock market and the Asian stock market and (b) its unidirectional movement from the world stock market to the domestic stock market. The results of the study may help market regulators in setting regulatory policies considering the inter-linkages and pattern of volatility spillovers across different financial markets. JEL Classification: G15, G17

scholarly journals COMPUTATION INTELLIGENCE BASED DAILY ALGORITHMIC STRATEGIES FOR TRADING IN THE FOREIGN EXCHANGE MARKET

2018 ◽  
Author(s):  
Nijolė Maknickienė ◽  
Ieva Kekytė ◽  
Algirdas Maknickas
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Processing Unit ◽  
Exchange Market ◽  
Data Prediction ◽  
Open Source Framework ◽  
Market State ◽  
Port Systems ◽  
Graphical Processing

Successful trading in financial markets is not possible without a support system that manages the preparation of the data, prediction system, and risk management and evaluates the trading efficien-cy. Selected orthogonal data was used to predict exchange rates by applying recurrent neural network (RNN) software based on the open source framework Keras and the graphical processing unit (GPU) NVIDIA GTX1070 to accelerate RNN learning. The newly developed software on the GPU predicted ten high-low distributions in approximately 90 minutes. This paper compares different daily algorith-mic trading strategies based on four methods of portfolio creation: split equally, optimisation, orthogonality, and maximal expectations. Each investigated portfolio has opportunities and limita-tions dependent on market state and behaviour of investors, and the efficiencies of the trading sup-port systems for investors in foreign exchange market were tested in a demo FOREX market in real time and compared with similar results obtained for risk-free rates.

scholarly journals Investment strategy for 2021: market fluctuations in an uneven recovery

2021 ◽  
Vol 14 (1) ◽  
pp. 92-98
Author(s):  
A. A. Gafurov ◽  
E. I. Kulikova
Keyword(s):  
Financial Markets ◽  
Investment Strategy ◽  
Comparison Analysis ◽  
Economic Sectors ◽  
Significant Growth ◽  
The World ◽  
Analysis And Synthesis ◽  
Asset Classes

The purpose of this article is to study the prospects for investment in 2021, both in Russia and abroad. The task is to analyze the macroeconomic situation and financial markets in the world, as well as different sectors of economies with potentially attractive prospects for recovery and development. The methods used in the article are comparison, analysis and synthesis. As a result of the study, economic sectors, asset classes and issuers are identified that can demonstrate significant growth in 2021.

scholarly journals Spatial-Temporal Analysis the Dynamics of Changes on the Foreign Exchange Market: an Empirical Estimates from Ukraine

2020 ◽  
Vol 1 (2) ◽  
pp. 1-6
Author(s):  
Oleg Vasiurenko ◽  
Vyacheslav Lyashenko ◽  
Valeria Baranova ◽  
Zhanna Deineko
Keyword(s):  
Financial Markets ◽  
Foreign Exchange ◽  
Emerging Economies ◽  
Foreign Exchange Market ◽  
Temporal Analysis ◽  
Wavelet Coherence ◽  
Exchange Market ◽  
Empirical Estimates ◽  
Market Trends ◽  
Spatial Temporal Analysis

The foreign exchange market plays an important role in the formation and development of financial markets. This market is of particular importance for emerging economies. To understand market trends (to understand and develop a strategy for its development), it is necessary to analyze historical data. It is also important to use different methods to carry out this analysis. Based on this, the paper analyzes the foreign exchange market in Ukraine for the period 2014-2018. For this analysis, the wavelet coherence methodology is used. This made it possible to assess the development of the foreign exchange market in Ukraine.

scholarly journals The equilibrium model of demand and supply at the Ukrainian Interbank Foreign Exchange Market: disclosure of problematic aspects

2017 ◽  
Vol 12 (4) ◽  
pp. 31-43 ◽  
Author(s):  
Anzhela Kuznyetsova ◽  
Nataliia Misiats ◽  
Olha Klishchuk
Keyword(s):  
Foreign Exchange ◽  
Equilibrium Model ◽  
Foreign Exchange Market ◽  
Inflation Targeting ◽  
Foreign Currency ◽  
Gap Analysis ◽  
Exchange Market ◽  
Demand And Supply ◽  
Trade Offs ◽  
The One

This article is devoted to building of the equilibrium model between demand and supply on foreign currency at the Ukrainian Interbank Foreign Exchange Market (non-cash share). The authors discussed that appeared trade-offs are a product of established current foreign arrangement, administrative measures provided by the National Bank of Ukraine and range of fundamental variables, which are traditionally significant for Ukrainian economy. By means of FAVAR modeling model of demand and supply equlibrium on non-cash foreign currency was built on empirical data of Ukrainian Interbank Foreign Exchange Market, splitted into the periods, proposed by the authors. Next, it was discussed disconnection properties in the model and shown log-linearized specification of the one. The efficiency of fulfillment hypothesis on decointegrating of the fundamental variables' time series has been provided in form of critical statistics values. Also, instrument of GAP analysis of deviation from equilibrium state was proposed and the further analysis of a regulation style of monetary authority was provided. In conclusion, it was summarized that increased share of the cash out of the banks has significantly jeopardized the price stability in Ukraine and the NBU interventions would become more effective if the flexible foreign exchange rate will be accompanied with flexible regime of inflation targeting.

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