The project undertaken is based on the study of foreign exchange market and risk management in general as well as in the forex market.FOREIGN EXCHANGE MARKET: Foreign exchange market is a market where foreign currencies are bought & sold.
Foreign exchange market is a system facilitating mechanism through which one country’s currency can be exchanged for the currencies of another country.
The purpose of foreign exchange market is to permit transfers of purchasing power denominated in one currency to another i.e. to trade one currency for another.
The project covers various trading areas of forex market such as, spot market, forward market, derivatives, currency futures, currency swaps etc. It helps in understanding various trend patterns and trend lines. What considerations are kept in mind while trading in forex market and why one should enter such market is studied under this project.
Another part of this project covers Risk Management in general as well as in forex market. Risk Management is the process of measuring, or assessing risk and then developing strategies to manage the risk. In general, the strategies employed include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk.
A person has to face risk whether he’s in business or is entering the forex market.So, he uses various strategies and methods to overcome that risk.
The data used in this project has been collected from websites based on related topics and various books of forex market and risk management. The information displayed may be limited,as each and every aspect related with the project that is provided by the avilable sources might not be complete in all respects.
