Part IV: The Forex Exchange and Derivatives Market in the Euro Area.  

The Foreign Exchange Market is the Financial Market that almost 20% of adults in the world identify as “the largest” Financial Market behind the Stock Exchange.

In reality, this is not at all true: at European level, it is a market that has shrunk due to the disappearance of national currencies when the euro was introduced in 1999.

Even on a global scale, this market is very small: it is five times smaller than the Interest Rate Market.

First remark: the Eurozone does not publish any statistics on the subject.

I am therefore obliged to go through the BIS statistics to show you the importance of the Eurozone in this global market.

Second remark: I describe the techniques used in this foreign exchange market to carry out a multitude of operations whose purpose is not to sell or buy currencies. It’s so much more complex   than just foreign exchange transactions. In this complex market, dailyflows reach sums that the ordinary citizen cannot even “measure”: here, we are talking about daily exchanges in trillions of dollars (dollar equivalents).

Third remark: the foreign exchange market is an obligatory (and practical) point of passage for High Finance that can circulate our economies at the speed of light.

This post explains the foreign exchange techniques used and the hidden objectives of these operations: this is why I chose the title: “Foreign Exchange and Derivatives Markets”.

you have to hang on to understand all this but, rest assured, I will come back with other tickets.

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