March 15, 2013

Foreign Exchange Volume

Factors that caused Foreign Exchange Volume Growth

Foreign exchange trading is generally conducted in a decentralized manner, with the exceptions of currency futures and options. Foreign exchange has experienced spectacular growth in volume ever since currencies were allowed to float freely against each other. While the daily turnover in 1977 was U.S. $5 billion, it increased to U.S. $600 billion in 1987, reached the U.S. $1 trillion mark in September 1992, and stabilized at around $1.5 trillion by the year 2000.

Main factors influence on this spectacular growth in volume are indicated below. For foreign exchange, currency volatility is a prime factor in the growth of volume. In fact, volatility is a sine qua non condition for trading. The only instruments that may be profitable under conditions of low volatility are currency options.

Interest Rate Volatility

Economic internationalization generated a significant impact on interest rates as well. Economics became much more interrelated and that exacerbated the need to change interest rates faster. Interest rates are generally changed in order to adjust the growth in the economy, and interest rate differentials have a substantial impact on exchange rates.

Business Internationalization

In recent decades the business world the competition has intensified, triggering a worldwide hunt for more markets and cheaper raw materials and labor. The pace of economic internationalization picked up even more in the 1990s, due to the fall of Communism in Europe and to up-and-down economic and financial development in both Southeast Asia and South America. These changes have been positive toward foreign exchange, since more transactional layers were added.

Increasing of Corporate Interest

A successful performance of a product or service overseas may be pulled down from the profit point of view by adverse foreign exchange conditions and vice versa. An accurate handling of the foreign exchange may enhance the overall international performance of a product or service. Proper handling of foreign exchange generally adds substantially to the rate of return. Therefore, interest in foreign exchange has increased in the past decade. Many corporations are using currencies not only for hedging, but also for capitalizing on opportunities that exist solely in the currency markets.

Increasing of Traders Sophistication

Advances in technology, computer software, and telecommunications and increased experience have increased the level of traders' sophistication. This enhanced traders' confidence in their ability to both generate profits and properly handle the exchange risks. Therefore, trading sophistication led toward volume increase.

Developments in Telecommunications

The introduction of automated dealing systems in the 1980s, of matching systems in the early 1990s, and of Internet trading in the late 1990s completely altered the way foreign exchange was conducted. The dealing systems are online computer systems that link banks on a one-to-one basis, while matching systems are electronic brokers. They are reliable and much faster, allowing traders to conduct more simultaneous trades. They are also safer, as traders are able to see the deals that they execute. The dealing systems had a major role in expanding the foreign exchange business due to their reliability, speed, and safety.

Computer and Programming development

Computers play a significant role at many stages of conducting foreign exchange. In addition to the dealing systems, matching systems simultaneously connect all traders around the world, electronically duplicating the brokers' market. The new office systems provide full accounting coverage, ticket writing, back office processing, and risk management implementation at a fraction of their previous cost. Advanced software makes it possible to generate all types of charts, augment them with sophisticated technical studies, and put them at traders' fingertips on a continuous basis at a rather limited cost.


  1. Great post. I used to be checking continuously this blog
    and I am impressed! Extremely useful information specially the ultimate part :) I deal with such info a
    lot. I was seeking this particular info for a long time.

    Thanks and good luck.

    my web site :: how to withdraw money from cedar finance

  2. Very great post. I simply stumbled upon your weblog and wished to say that I have truly enjoyed surfing around your blog posts.
    In any case I will be subscribing for your rss feed and I hope you write again soon!

    Also visit my page - binary options signals

  3. Hi there just wanted to give you a quick heads up. The
    words in your article seem to be running off the screen
    in Opera. I'm not sure if this is a format issue or something to do with internet browser compatibility but I figured I'd post to let you
    know. The style and design look great though!
    Hope you get the problem fixed soon. Kudos

    Here is my web page ... forex trading scams

  4. If some one desires to be updated with newest technologies after that he must be pay a quick visit this web site
    and be up to date all the time.

    My blog post :: binary trading options

  5. We're a gaggle of volunteers and starting a new scheme in our community. Your web site offered us with valuable information to work on. You have done an impressive process and our whole neighborhood might be thankful to you.

    my webpage ::

  6. Hi, i think that i saw you visited my site thus i came to “return the favor”.
    I'm attempting to find things to improve my website!I suppose its ok to use some of your ideas!!

    Feel free to visit my blog post :: get free money now

  7. Its like you read my mind! You appear to know so much about this, like you wrote the book in it
    or something. I think that you can do with a few pics to drive the message home a little bit, but other than that, this is great blog.

    A fantastic read. I will definitely be back.

    Review my webpage ... Free virtapay

  8. Heya i'm for the first time here. I came across this board and I find It really useful & it helped me out a lot. I hope to give something back and help others like you helped me.

    Also visit my web site ...

  9. fantastic issues altogether, you simply gained a new reader.

    What would you recommend about your put up that you made a few days in
    the past? Any sure?

    my web-site :: legal ecstasy

  10. Right here is the perfect webpage for anуone ωho would like tо
    find out about this tοpic. Υou realizе a whole lot its almost
    hard to arguе with yοu (not that Ι ρеrsonally will need to�HaHa).
    Yοu ceгtainly put a brand neω spin on a subјect that's been discussed for a long time. Excellent stuff, just wonderful!

    Here is my homepage ... premature ejaculation pills

  11. It's going to be end of mine day, however before end I am reading this enormous article to increase my know-how.

    my blog post :: Legal Ecstasy

  12. Thanks for sharing your thoughts on forex trading blog. Regards

    Also visit my blog post ::

  13. I want to to thank you for this fantastic read!! I definitely loved every little bit of it.
    I've got you book-marked to look at new stuff you post…

    Review my blog post ::

  14. Good article! We are linking to this particularly great post on our site.
    Keep up the good writing.

    Also visit my site ::

  15. Good article! We are linking to this particularly great post on our site.
    Keep up the good writing.

    My blog post

  16. Good article. I'm dealing with some of these issues as well..

    Feel free to visit my web-site:

  17. You made some decent points there. I checked on the internet to learn
    more about the issue and found most people will go along with your views on this site.

    My weblog :: forex analysis

  18. Hi, yeah this post is in fact fastidious and I have learned lot of things from it about blogging.

    Here is my web site:

  19. My brother recommended I may like this web site.
    He was entirely right. This publish truly made my day.
    You can not believe simply how a lot time I had spent for this
    information! Thank you!

    Here is my homepage how to make quick money online

  20. Hello there I am so delighted I found your website, I really found you by error,
    while I was researching on Digg for something else, Anyhow I am here now and would
    just like to say thanks a lot for a remarkable post and a all
    round interesting blog (I also love the theme/design), I don’t have time to
    read through it all at the moment but I have saved it and also
    included your RSS feeds, so when I have time I will be back to read
    more, Please do keep up the awesome work.

    Look into my homepage;

  21. Hello, of course this article is genuinely pleasant and I have learned lot of things from it concerning blogging.

    Also visit my blog post; mix software Free

  22. Good blog you have here.. It's difficult to find quality writing like yours these days. I truly appreciate people like you! Take care!!

    Feel free to visit my homepage

  23. Hey there! I'm at work browsing your blog from my new apple iphone! Just wanted to say I love reading your blog and look forward to all your posts! Keep up the superb work!

    My page :: make money online

  24. I was recommended this blog by my cousin. I'm not sure whether this post is written by him as no one else know such detailed about my trouble. You're wonderful!

    Also visit my web site ::

  25. This post presents clear idea in support of the new visitors of blogging, that genuinely
    how to do blogging.

    my web page:

  26. Yes! Finally someone writes about forex trading system.

    Feel free to visit my blog :: how to Make Money online

  27. Hello, Neat post. There is an issue along with your web
    site in web explorer, may test this? IE still is the marketplace chief and a huge element of folks will pass over your
    fantastic writing because of this problem.

    Here is my website ... please click the next page

  28. I'm not sure why but this website is loading very slow for me. Is anyone else having this problem or is it a issue on my end? I'll check back later
    on and see if the problem still exists.

    My weblog:

  29. Have you ever considered writing an ebook or guest
    authoring on other sites? I have a blog based on the same information you discuss and would really like to have you
    share some stories/information. I know my readers would value your work.

    If you are even remotely interested, feel free to send me an e mail.

    my website ... forex trading forum

  30. After going over a number of the articles on your blog,
    I really appreciate your technique of writing a blog.
    I saved it to my bookmark webpage list and will be checking
    back soon. Please check out my website as well and tell me your opinion.

    Also visit my blog: gagnerdelargentfacilement

  31. I absolutely love your blog and find almost all
    of your post's to be just what I'm looking for.

    can you offer guest writers to write content for you personally?

    I wouldn't mind producing a post or elaborating on most of the subjects you write about here. Again, awesome web log!

    Stop by my web blog ... commentgagnerdelargent

  32. I absolutely love your blog and find almost all of your post's to be just what I'm looking for.
    can you offer guest writers to write content for you personally?
    I wouldn't mind producing a post or elaborating on most of the subjects you write about here. Again, awesome web log!

    Visit my blog; commentgagnerdelargent

  33. I drop a comment when I like a post on a site or if I have
    something to valuable to contribute to the discussion.
    Usually it is caused by the sincerness displayed in the article I read.
    And after this article "Foreign Exchange Volume".
    I was excited enough to drop a commenta response :-) I do
    have 2 questions for you if you usually do not mind.
    Could it be just me or do some of the remarks look like coming from brain dead
    visitors? :-P And, if you are posting on other online social sites, I would like to keep up with you.
    Could you make a list the complete urls of all
    your communal pages like your twitter feed, Facebook page or linkedin profile?

    Feel free to surf to my blog post

  34. Hey there! This post couldn't be written any better! Reading this post reminds me of my old room mate! He always kept talking about this. I will forward this article to him. Fairly certain he will have a good read. Thanks for sharing!

    my blog - binary option trading

  35. Hi there! Would you mind if I share your blog with my zynga group?

    There's a lot of folks that I think would really appreciate your content. Please let me know. Thank you

    Look at my site ... Cedar Finince

  36. Hi there! Do you use Twitter? I'd like to follow you if that would be okay. I'm definitely enjoying
    your blog and look forward to new updates.

    Feel free to visit my weblog faresoldi

  37. Thanks for finally talking about > "Foreign Exchange Volume" < Liked it!

    Visit my blog :: can you get
    your money back from cedar finance

  38. I'm extremely pleased to uncover this page. I want to to thank you for ones time due to this fantastic read!! I definitely really liked every part of it and I have you book-marked to look at new information on your web site.

    My website :: cedar finance review

  39. Write more, thats all I have to say. Literally, it seems
    as though you relied on the video to make your point.

    You obviously know what youre talking about, why throw away your intelligence on just posting videos to your weblog when you could be giving
    us something enlightening to read?

    Feel free to visit my page - trading options

  40. I don't leave a bunch of remarks, however i did a few searching and wound up here "Foreign Exchange Volume". And I do have a couple of questions for you if it's allright.
    Is it only me or does it give the impression like some of the comments look as if they are written by brain dead visitors?
    :-P And, if you are posting on additional online
    social sites, I'd like to keep up with everything new you have to post. Would you list of every one of all your community sites like your twitter feed, Facebook page or linkedin profile?

    Feel free to surf to my webpage -

  41. Hey just wanted to give you a quick heads up. The words
    in your post seem to be running off the screen in Safari.
    I'm not sure if this is a formatting issue or something to do with browser compatibility but I thought I'd post to let you know.
    The style and design look great though! Hope you get the problem resolved
    soon. Many thanks

    Also visit my page ... 24/7 contact info for cedar

  42. Magnificent beat ! I would like to apprentice
    whilst you amend your web site, how could i subscribe for a weblog website?
    The account helped me a appropriate deal. I had been tiny bit familiar of this your broadcast offered brilliant clear idea

    My website;

  43. Hello, I read your new stuff daily. Your writing style is
    awesome, keep it up!

    Look into my website :: what is the best way to make money

  44. This is my first time go to see at here and i am really happy to read all at one place.

    My website -

  45. What's up to all, it's genuinely a good for me to pay a visit this site, it
    consists of helpful Information.

    Here is my web blog

  46. This design is spectacular! You obviously know how to keep a reader amused.

    Between your wit and your videos, I was almost moved to start my own blog
    (well, almost...HaHa!) Excellent job. I really loved what you had
    to say, and more than that, how you presented it. Too cool!

    My website ...

  47. Howdy! This article couldn't be written any better! Reading through this post reminds me of my previous roommate! He continually kept talking about this. I'll send this information to
    him. Pretty sure he'll have a very good read. Thank you for sharing!

    my site: How To Make Money Online Fast

  48. Good post. I absolutely love this site.
    Stick with it!

    My homepage; Runescape Money

  49. I know thіs sіte оffeгѕ quаlity dеpenԁing рoѕts and
    other information, is there any otheг web ρage whіch
    givеs thesе κinds of information іn quality?

    my blog post: premature ejaculation pills

  50. I always emailed this weblog post page to all my contacts, because
    if like to read it then my contacts will too.

    Check out my blog post ... auto click ptc sitesmake money with ptc sites

  51. Simply desire to say your article is as astonishing.
    The clarity to your post is just cool and i could think you are a professional on this subject.
    Fine with your permission let me to grasp your RSS feed to keep up to
    date with drawing close post. Thanks 1,000,000 and please keep up the rewarding work.

    Also visit my homepage ...

  52. I am really impressed with your writing skills and
    also with the layout on your weblog. Is this a paid theme or did
    you customize it yourself? Either way keep up the excellent quality writing, it's rare to see a nice blog like this one nowadays.

    Here is my web site:

  53. If some one desires expert view on the topic of blogging and site-building after that
    i suggest him/her to pay a quick visit this web site, Keep up the fastidious job.

    Here is my site ... free money

  54. It's hard to find experienced people for this topic, however, you sound like you know what you're talking about!

    Here is my web site; make money fast online

  55. This web site really has all the info I
    needed concerning this subject and didn't know who to ask.

    Feel free to visit my site -

  56. Appreciate this post. Will try it out.

    My web site ... make money fast online

  57. I was curious if you ever thought of changing the page layout
    of your site? Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content so
    people could connect with it better. Youve got an awful lot of text for only having one or two images.
    Maybe you could space it out better?

    Feel free to visit my weblog;

  58. I do believe all the concepts you've presented on your post. They are very convincing and will certainly work. Still, the posts are too brief for newbies. Could you please extend them a bit from next time? Thank you for the post.

    Feel free to surf to my webpage; day trading strategies

  59. Hi, I do believe this is an excellent web site.
    I stumbledupon it ;) I will return once again since i have book marked it.
    Money and freedom is the greatest way to change, may
    you be rich and continue to guide other people.

    my web blog;

  60. Please let me know if you're looking for a writer for your site. You have some really good articles and I feel I would be a good asset. If you ever want to take some of the load off, I'd absolutely love
    to write some articles for your blog in exchange for a link back to mine.
    Please blast me an e-mail if interested. Thank

    Feel free to visit my homepage - make fast money online

  61. Good day! This is my first comment here so I just wanted to give a quick shout out and
    say I really enjoy reading your articles. Can you suggest any other
    blogs/websites/forums that deal with the same topics?
    Appreciate it!

    Also visit my weblog: play minecraft free

  62. Just want to say your article is as amazing.
    The clarity for your post is simply great and i can think you're an expert in this subject. Well with your permission allow me to snatch your RSS feed to stay up to date with coming near near post. Thank you a million and please carry on the enjoyable work.

    Stop by my web-site :: free microsoft Points

  63. Thanks foг the marvelous posting! І truly enjoyed readіng it,
    yοu coulԁ be a gгeat authοг.
    I will ensure that Ӏ bookmarκ your blog and maу сome back at ѕome point.

    I want to encourаge you сontinue your great
    wоrk, have а nіce аftеrnoοn!

    Cheсk out my ωеb site; cheap legal highs

  64. No matter if some one searches for his necessary thing, thus he/she wishes to be available that in detail, so that thing is maintained over here.

    Also visit my blog post ... youtube auto

  65. I am really loving the theme/design of your web site. Do you
    ever run into any internet browser compatibility problems?

    A couple of my blog audience have complained about my site not operating correctly
    in Explorer but looks great in Chrome. Do you have any solutions to help fix this issue?

    Also visit my web-site :: The Interlace

  66. Hi! Do you use Twitter? I'd like to follow you if that would be okay. I'm definitely enjoying your blog and
    look forward to new posts.

    my website:

  67. Saved as a favorite, I love your web site!

    Feel free to surf to my website - World Of Tanks Hack

  68. I like the valuable information you provide for your articles.
    I will bookmark your weblog and check once more here frequently.
    I'm fairly sure I will be informed plenty of new stuff proper here! Good luck for the following!

    Feel free to visit my homepage - 7zip download []

  69. Remarkable issues here. I am very happy to see your article.

    Thank you a lot and I'm having a look ahead to contact you. Will you kindly drop me a e-mail?

    my website; Minecraft Crack

  70. GPS robot [10x increase of the deposit sum]

    I just got done with a webinar with Mark and his partner, Antony, two days ago and it was GREAT.

    During the webinar Mark and Antony shared their stories to success and answered questions about their new release of the GPS Forex Robot that IS COMING OUT TODAY!