Day Trading

Currency trading represents the system of financial - currency relationship through which is performed selling and buying currency, effectively or in account as well as selling and buying devices (bill of exchange and notes of hands expressed in foreign currency.

This activity of selling - buying currency / devices represents a specific kind of trade, and in this case, currency is treated like merchandise.

This currency trading must also be represented by the institutions: 1. Banks authorized to take part in this specific trade (the certification is performed by a central bank) 2. Certified exchange houses 3. Other currency trading institutions certified on this purpose.

The outcome of currency trading is a price (foreign currency price) which depends on the conditions of requirement and offer existent on the market and this price can be limited from the legal point of view.

Currency trading must respect national rules, for example currency trading in India is different from currency trading in France, for example, but apart from these national currency trading markets which have a specific legislation, also appear situations in which currency trading markets have international character, serving the interests of some areas (economic areas of great interest: Frankfurt, Tokyo, London, New York).

These currency trade markets represent exceptions from national rules (they are not regulated), fact which makes them attractive.

Sometimes on the currency trading market, transactions result from proper economic activities.

Thus there are: currency trading speculation-it represents the selling / purchasing operation which does not have a proper economic base, and it is created only on the purpose of getting profit (which sometimes are not deserved), therefore are speculated currency trading differences which appear during different periods of time, in different places.

The winner is the one who appreciates the best the trend of the currency trade. currency trading arbitrage - operation similar to value speculation, with the difference that it is realized by banks (only by banks) and the values which circulate are much bigger.

State intervention - it is as well an operation which signifies selling and purchasing high amounts of currency on the purpose of maintaining the currency of the national money. The state intervention must be realized in correlation with financial - currency trading policy of the state and with the economic and social development of the country.

Currency trading role Currency trading role is determined firstly by the possibilities offered to the attendants for economic exchanges in order to choose and obtain credit means and the most convenient payment.

Factors which condition currency trading evolution:

1. Liberalization tendency of world trade - it leads to economic chances between states, which lead to a more important role of currency trade

2. International credit rate increase in the volume of external trade transactions 3. Increasing some national currency rate in the assemble of economic exchanges 4. Increase of cash penury (especially for countries in economic progress).

International currency trade markets become a sign of international economic exchanges and anybody can notice that it becomes more and more unpredictable. amassment.

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