Foreign exchange market graph,binary option signals franco,currency markets hours,list of best forex traders in the world - Test Out

30.12.2013 admin
A foreign exchange market displays the quantity of a specific currency available in a market and the value of that specific currency against a foreign currency. Opposite to the supply curve, the demand curve of the foreign exchange market is the amount of money desired by exchangers at the bank. It is easiest to imagine a foreign exchange market as an imaginary bank in the middle of nowhere. In this situation, the supply of the consumer’s currency is increasing as he deposits his currency into the bank in exchange for the other currency. When the value of a currency rises (appreciates), it can be exchanged for a higher quantity of foreign currency. When the value of a currency decreases (depreciates), it can be exchanged for a smaller quantity of another currency.

When dealing with foreign exchange markets, the title of the graph should be the specific currency graphed.
At this bank, all currencies of the world are stored and used to exchange for other currencies. Consequently, the foreign currency can now be exchanged for a smaller quantity of the domestic currency. The citizens of the economy with the appreciating currency will begin to buy more foreign goods and place a higher quantity of their currency in the “invisible bank”. As the value of the currency appreciates more and more, citizens will buy increasing amounts of foreign goods.
The x-axis of the graph is simply the quantity of the currency while the y-axis is the value of the market’s currency.

Thus when the value of a currency increases, the quantity of that currency in the “invisible market” or foreign exchange market increases.
Lastly, the supply and demand lines of the market can be labeled as “S” and “D” respectively.

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