Foreign language
Currency transactions
. There are three ways to spend money: first - on wine second - on women third - to make money work on you. The first two are
Категория: Английский языкАнглийский язык

Foreign language

1. Foreign language

2. Currency transactions

3. . There are three ways to spend money: first - on wine second - on women third - to make money work on you. The first two are

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4. Contents

1. Currency transactions.
2. Function.
3. Currency market participants.
4. Currency risk.
5. Conclusion.
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1. Currency transactions.
Foreign exchange market is a system of economic
relations between banks and their customers
regarding the purchase and sale of foreign currency.
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Currency transactions are transactions with foreign currency on the
territory of the country and abroad.
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The currency market is functioning in two areas:
• transactions are made on an exchange;
• transactions of purchase-sale of foreign currency are made on the
interbank market, when banks enter into a relationship without going
through the exchange.
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2. Function
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Function is the practical manifestation of the economic entity in the global
currency market.
The main functions of the global currency market: commercial value,
information, regulatory, speculative.


• The commercial function is the provision of plots of foreign and national
• Value function — the establishment of this level of the exchange rate whereby
world foreign exchange market and the economic system as a whole will be
in equilibrium.
• An information function — providing the participants with the currency market
information about its functioning.
• Regulatory function — the organization of the global currency market in
accordance with national and international laws.
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3. Currency market participants
Participants in the global currency market — legal entities and
individuals that conduct operations in the global currency
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In order to participate in the transactions on the world currency market
participants of this market are divided into five groups: entrepreneurs,
hedgers, speculators, brokers and currency regulation bodies.
Entrepreneurs are participants of the currency market to ensure
exchange operations. This category of participants is primary in relation
to other
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Hedgers are participants of the currency market, insuring
currency risk when making foreign exchange
Speculators are participants in the global currency
market, carrying out the bulk of transactions in currency
The intermediaries specialize in providing services for
currency trading.


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Brokers is stock brokers, trade currency for the
account and on behalf of clients.
Dealers operate on the currency market on its own
behalf and at own expense.


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4. Currency risk
Currency risk is the risk of foreign exchange losses in the
purchase and sale of currencies.


For protection from foreign exchange losses in operations of sale and
purchase of foreign currencies using hedging, which is a variety of
methods and techniques of foreign exchange risk insurance losses.
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5. Conclusion
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Thus, we examined the nature, content types the foreign
exchange market. The term "currency transaction" is used to
denote the entire set of transactions in which there is a change of
ownership to currency valuables. The need for a standardized
infrastructure for circulation of currency values, leads to the
creation of foreign exchange markets.
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