Question
-
forex market depends on which factors?
5 Answers
<p><br>In Forex, believe it or not, HOW price moves is usually not a matter of how much money a bank trader has (because FX swap markets allow banks to continue funding their positions). It’s all due to a combination of individual will and whose price is or is not impeded by an opposing force. For example, bidders can easily take price higher on low volume for as long as there are no willing offerers on the way up. Likewise, offerers can easily take price lower on low volume for as long as there are no willing bidders on the way …</p>
4 Views
<p><br>News reports- Commercial banks and other investors tend to want to put their capital into economies that have a strong outlook. So, if a positive piece of news hits the markets about a certain region, it will encourage investment and increase demand for that region’s currency. Unless there is a parallel increase in supply for the currency, the disparity between supply and demand will cause its price to increase. Similarly, a piece of negative news can cause investment to decrease and lower a currency’s price. This is why currencies tend to reflect the reported economic health of the region they …</p>
3 Views
<p><br>Because the forex market is huge and involves a lot of currencies, it gets heavily influenced by the economy of the countries. There are other metrics such as global trade, geopolitics, and socio-economic factors that also contribute to its change. By analysing such parameters, a trader can make better trading decisions. This is called fundamental analysis. It gives traders a general idea how the price movement could behave.</p>
2 Views
<p><br>Supply and demand. Free market principles. If there are more buyers than sellers for a currency, price goes up. If there are more sellers than buyers, price goes down. That in turn is influenced by market sentiment to a high degree, though other, realer factors apply. Too many to list. This is the subject of macroeconomics.</p>
1 View
<p><br>Forex market is influenced mainly by exchange rates, demand & supply factors, interest rate differentials, Liquidity providers, commission charged by brokers etc.</p>
Please select pages to share
shared
