Nicola Mining Inc. Corporate Presentation April 2024
Foreign Exchange Market Guide
1.
2. FOREIGN EXCHANGE MARKET
Forex currency market is a global decentralized
market for the trading of currencies
Its an OTC (over the counter) market as there is no
physical place is functioning throughout 24 hours .
largest foreign exchange market is in London,
followed by the New York, Tokyo, Zurich and
Frankfurt
8. EXCHANGE RATE MECHANISM
Exchange Rates are quoted in two methods:
Direct method
US$ 1 = ₹ 67.03
Indirect method
₹100 = US$ 1.49
9. DERIVATIVES
Derivatives are used to reduce exposure to changes in
foreign exchange rates, interest rates, or stock indexes
.
Parties wishing to manage their risk are called
hedgers.
Derivative products –
- Forward Contract
- FX Options- Call & Put
- Swaps
- Futures