FOREIGN EXCHANGE

CDC International also provides Foreign Exchange solutions through our network base that offers the most competitive exchange rates. Students are advised on the various options available to them for their foreign exchange requirements. Our experience indicates that students and parents favor FOREX card over Traveler’s Cheque or large sums of cash. We encourage you to seek further information about our partner vendors from our qualified counselors.

Currency Pairs: In forex trading, currencies are traded in pairs. Each pair consists of a base currency and a quote currency. For example, in the pair EUR/USD, the euro (EUR) is the base currency, and the US dollar (USD) is the quote currency.

Market Participants: Various participants engage in the forex market, including central banks, commercial banks, hedge funds, multinational corporations, and individual traders. Each has different objectives and strategies, contributing to market liquidity and volatility.

Liquidity and Volatility: Forex markets are highly liquid, meaning there’s a high volume of trading activity, allowing for easy execution of buy and sell orders. Volatility, or the degree of price fluctuations, is also significant in forex due to various factors like economic releases, geopolitical events, and market sentiment.

Exchange Rate Determination: Exchange rates are determined by supply and demand forces in the market. Factors influencing exchange rates include interest rates, inflation, geopolitical events, trade balances, and central bank policies.

Trading Instruments: Forex trading involves various instruments, including spot transactions, forward contracts, futures contracts, options, and exchange-traded funds (ETFs). Spot transactions involve the immediate exchange of currencies at the current exchange rate, while derivatives like forwards and futures allow traders to hedge against currency risk or speculate on future price movements.