Importance of Stop Loss in Trading

1.4 Modern to post-modern
1.4.1 After WWII
1.4.2 Markets close
1.4.3 After 1973
2 Market size and liquidity
3 Market participants

3.1 Commercial companies
3.2 Central banks
3.3 Foreign exchange fixing
3.4 Hedge funds as speculators
3.5 Investment management firms
3.6 Retail foreign exchange traders
3.7 Non-bank foreign exchange companies

3.8 Money transfer/remittance companies and bureaux de change
4 Trading characteristics
5 Determinants of exchange rates
5.1 Economic factors
5.2 Political conditions
5.3 Market psychology

6 Financial instruments
6.1 Spot
6.2 Forward
6.3 Swap
6.4 Future
6.5 Option
7 Speculation
8 Risk aversion
9 Carry trade
10 Forex signals
11 See also
12 References
13 External links
History[edit]

Ancient[edit]
Currency trading and exchange first occurred in ancient times.[6] Money-changing people, people helping others to change money and also taking a commission or charging a fee were living in the times of the Talmudic writings (Biblical times). These people (sometimes called "kollybist?s") used city-stalls, at feast times the temples Court of the Gentiles instead.[7] Money-changers were also in more recent ancient times silver-smiths and/or gold-smiths.[8]

During the fourth century, the Byzantium government kept a monopoly on the exchange of currency.[9]

Currency and exchange was also a vital and crucial element of trade during the ancient world so that people could buy and sell items like food, pottery and raw materials.[10] If a Greek coin held more gold than an Egyptian coin due to its size or content, then a merchant could barter fewer Greek gold coins for more Egyptian ones, or for more material goods. This is why the vast majority of world currencies are derivatives of a universally recognized standard like silver and gold.

During the 1920s, the Kleinwort family were known to be the leaders of the foreign exchange market; while Japheth, Montagu & Co., and Seligman still warrant recognition as significant FX traders.[29]

After WWII[edit]
After WWII, the Bretton Woods Accord was signed allowing currencies to fluctuate within a range of 1% to the currencies par.[30] In Japan the law was changed during 1954 by the Foreign Exchange Bank Law, so, the Bank of Tokyo was to become, because of this, the centre of foreign exchange by September of that year. Between 1954 and 1959 Japanese law was made to allow the inclusion of many more Occidental currencies in Japanese forex.[31]

U.S. President Richard Nixon is credited with ending the Bretton Woods Accord and fixed rates of exchange, eventually bringing about a free-floating currency system. After the ceasing of the enactment of the "Bretton Woods Accord" during 1971,[32] the Smithsonian Agreement allowed trading to range to 2%. During 1961–62, the amount of foreign operations by the U.S. Federal Reserve was relatively low.[33][34] Those involved in controlling exchange rates found the boundaries of the Agreement were not realistic and so ceased this in March 1973, when sometime afterward none of the major currencies were maintained with a capacity for conversion to gold, organisations relied instead on reserves of currency.[35][36] During 1970 to 1973 the amount of trades occurring in the market increased three-fold.[37][38][39] At some time (according to Gandolfo during February–March 1973) some of the markets' were "split", so a two tier currency market was subsequently introduced, with dual currency rates. This was abolished during March 1974.[40][41][42]

Reuter
On 1 January 1981 (as part of changes beginning during 1978 [53]) the Bank of China allowed certain domestic "enterprises" to participate in foreign exchange trading.[54] Sometime during the months of 1981 the South Korean government ended forex controls and allowed free trade to occur for the first time. During 1988 the countries government accepted the IMF quota for international trade.[55]

Intervention by European banks especially the Bundesbank influenced the forex market, on February the 27th 1985 particularly.[56] The greatest proportion of all trades world-wide during 1987 were within the United Kingdom, slightly over one quarter, with the U.S. of America the nation with the second most places involved in trading.[57]

During 1991 the republic of Iran changed international agreements with some countries from oil-barter to foreign exchange.[58]

ld. Traders include large banks, central banks, institutional investors, currency speculators, corporations, governments, other financial institutions, and retail investors. The average daily turnover in the global foreign exchange and related markets is continuously growing. According to the 2010 Triennial Central Bank Survey, coordinated by the Bank for International Settlements, average daily turnover was US$3.98 trillion in April 2010 (vs $1.7 trillion in 1998).[4] Of this $3.98 trillion, $1.5 trillion was spot transactions and $2.5 trillion was traded in outright forwards, swaps and other derivatives.

In April 2010, trading in the United Kingdom accounted for 36.7% of the total, making it by far the most important centre for foreign exchange trading. Trading in the United States accounted for 17.9% and Japan accounted for 6.2%.[59]

In April 2013, for the first time, Singapore surpassed Japan in average daily foreign-exchange trading volume with $383 billion per day. So the rank became: the United Kingdom (41%), the United States (19%), Singapore (5.7)%, Japan (5.6%) and Hong Kong (4.1%).[60]

Turnover of exchange-traded foreign exchange futures and options have grown rapidly in recent years, reaching $166 billion in April 2010 (double the turnover recorded in April 2007). Exchange-traded currency derivatives represent 4% of OTC foreign exchange turnover. Foreign exchange futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.

r
Most developed countries permit the trading of derivative products (like futures and options on futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Some governments of emerging economies do not allow foreign exchange derivative products on their exchanges because they have capital controls. The use of derivatives is growing in many emerging economies.[61] Countries such as Korea, South Africa, and India have established currency futures exchanges, despite having some capital controls.

Top 10 currency traders [62]
% of overall volume, May 2014
Rank Name Market share
1 United States Citi 16.04%
2 Germany Deutsche Bank 15.67%
3 United Kingdom Barclays Investment Bank 10.91%
4 Switzerland UBS AG 10.88%
5 United Kingdom HSBC 7.12%

6 United States JPMorgan 5.55%
7 United States Bank of America Merrill Lynch 4.38%
8 United Kingdom Royal Bank of Scotland 3.25%
9 France BNP Paribas 3.10%
10 United States Goldman Sachs 2.53%
Foreign exchange trading increased by 20% between April 2007 and April 2010 and has more than doubled since 2004.[63] The increase in turnover is due to a number of factors: the growing importance of foreign exchange as an asset class, the increased trading activity of high-frequency traders, and the emergence of retail investors as an important market segment. The growth of electronic execution and the diverse selection of execution venues has lowered transaction costs, increased market liquidity, and attracted greater participation from many customer types. In particular, electronic trading via online portals has made it easier for retail traders to trade in the foreign exchange market. By 2010, retail trading is estimated to account for up to 10% of spot turnover, or $150 billion per day (see retail foreign exchange platform).

Foreign exchange is an over-the-counter market where brokers/dealers negotiate directly with one another, so there is no central exchange or clearing house. The biggest geographic trading center is the United Kingdom, primarily London, which according to TheCityUK estimates has increased its share of global turnover in traditional transactions from 34.6% in April 2007 to 36.7% in April 2010. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. For instance, when the International Monetary Fund calculates the value of its special drawing rights every day, they use the London market prices at noon that day.

Market participants[edit]
Financial markets
Philippine-stock-market-board.jpg
Public market
Ex

G han bhai jan ap ke bat sahe ha or man ap ke at s eagree krta hon g han bhai jan stop loss bhot he ahm ha forex trading man or is ko hum ko traning man he sekh lena cy q k es ke wja se hum bhot bry loss se bach skty han

change
Securities
Bond market
Bond valuation
Corporate bond
Fixed income
Government bond
High-yield debt
Municipal bond
Securitization
Stock market
Common stock
Preferred stock
Re