An Analytical Study on Forex Markets

Research Report submitted to Entrepreneurship Development Institute of

India in partial fulfilment of the requirements for the award of

Post Graduate Diploma in Business Management

Submitted by

Sreeraj.S
Register No. : 16JJEPG1024

Under the guidance of

Dr. Manita Deepak Shah

Professor

Jain College

Bangalore

Entrepreneurship Development Institute of India

Ahmedabad
2017
DECLARATION

I hereby declare that the research entitled ”ANALYTICAL

STUDY OF FOREX MARKETS” submitted to Entrepreneurship
Development Institute of India in partial fulfilment of the
requirements for the award of PGDBM, is a record of
independent research work carried out by me under the
supervision and guidance of Dr. Manita Deepak Shah,
Professor, Jain College, Bangalore. This work has not been
submitted previously to any College/University.

Bangalore

September __ _ , 2017 Sreeraj.S

Dr. Manita Deepak Shah

Professor

Jain College

Bangalore
CERTIFICATE

I certify that this research entitled “ANALYTICAL STUDY ON FOREX

MARKETS” submitted to Entrepreneurship Development Institute of
India in partial fulfilment of the requirements for the award of PGDBM, is
a record of independent research work carried out by Mr. Sreeraj.S
under my supervision and guidance. This work has not formed the basis
for the award of any Degree and has not been submitted previously to
any other College/University.

Bangalore Dr. Manita Deepak Shah

September __, 2017 Research Mentor

ACKNOWLEDGEMENT

I am deeply indebted to Dr. Easwaran Iyer, Director, Department of

M.B.A and my research guide Dr. Manita Deepak Shah, Professor, Jain
College for their invaluable and constant guidance throughout the course
of my research work. Their exhaustive knowledge has enabled me to
find solutions to the problems faced and has facilitated me in achieving
goals easily.

I would also like to thank Mr. Magesh and Mr. Gopal Krishna,
Directors, J Wings, Bangalore for mentoring me throughout the research
work. I am also thankful to Dr. Chenraj Roychand, Chairman, Jain
Group of Institutions for allowing and aiding in the successful completion
of the research.

I would like to thank all the people who gave their valuable time and
answered the questionnaire. I am also thankful to my peers who
supported me throughout my research work.

I wish to extend my heartfelt thanks to all the Staff members and Non-
teaching staff members of the department of M.B.A Jain College
Bangalore who gave me the moral support and encouragement during
the course of my research.

Sreeraj.S
EXECUTIVE SUMMARY

Today, the Foreign Exchange market (referred to as the “Forex” or “FX”

market) is the largest financial market in the world, with a daily average
turnover of over US$ 5.3 trillion, making it a largest and liquid in the world.
Foreign Currency is simultaneous buying of one currency and Selling of
another. Currencies always are traded in pairs, for Ex: GBP/USD or CHF/USD
etc.

Until recently, forex trading in the currency market had been the domain of
large financial institutions, corporations, central banks, hedge funds and
extremely wealthy individuals. The emergence of the Internet has changed all
of this, and now it is possible for average investors to buy and sale currencies
easily with the click of a mouse through online broking accounts. A true 24-
hour market, Forex trading begins each day in Sydney, and moves around the
globe as the business day begins in each financial center followed below:

SYDNEY TOKYO INDIA LONDON NEW YORK

SYDNEY

Note: It is to be informed that more than 85% of International transaction

takes place in US$, hence, it plays vital role in determining/speculating
currency markets.

For example, a popular pair that is widely traded is the EUR/USD.The

EUR/USD is the European Dollar, also known as the EURO, and the USD,
which is the US Dollar. When the Euro becomes worth more money in dollars,
the pair goes up, when it becomes worth less money in dollars, the pair drops
in value.

All of this trading is done through forex brokers. A forex brokerage is an

intermediary that takes on your trade and puts it on the open market. Foreign
exchange trading is not done through any centralized market, so all forex
broker rates may not be exactly the same at the same time. Forex brokers
deal with networks of banks and the trading is carried out electronically within
fractions of a second when orders are placed.

One thing that really adds to the fun is that forex brokers offer forex leverage
to help you in your trading. Trading with leverage is basically the forex broker
allowing you to trade more on the market than what you actually have in your
account. This is an advantage for them because they collect fees based on
the size of the trades that you make. The larger the trade, the larger the fee.
Every time you make a trade with a forex broker they collect what they call the
spread, i.e. in forex trading there are two prices on a currency pair at any
given time. There is the ask price and the bid price. The spread is the
difference between those two prices.

For example: if you made a long trade, you would pay the bid price on the
pair. When you close or "sell" that trade, you would close at the asking price.
The spread is the constant difference between the bid price and the ask price.
 Contents Pages

Chapter 1. Introduction

1.1 About Foreign Exchange Market 1

1.2 Types of Transactions 4

1.3 Types of Charts 6

1.4 Types of Candle sticks 8

1.5 Types of Analysis 11

1.6 Forex Terminologies 17

Chapter 2. Industry and Company Profile

2.1 Industry Profile 20

2.2 Company Profile 24

Chapter 3. Research Methodology

 Research problem 27-29

 Scope of the Research
 Research Objective
 Methodology
 Data Collection
 Selection of Sample
 Plan of Analysis
 Limitations of the study
Chapter 4. Data Analysis 30-55

Chapter 5. Key Findings 56-58

Chapter 6. Conclusions & Recommendations 59-61

Bibliography and Appendices -

CHAPTER – 1

INTRODUCTION
 CHAPTER – 2

INDUSTRY AND COMPANY

 CHAPTER – 3

RESEARCH METHODOLOGY
 CHAPTER – 4

DATA ANALYSIS
CHAPTER – 5

KEY FINDINGS
 CHAPTER – 6

CONCLUSION &
RECOMMENDATION
 Bibliography

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 International Forex Broker available from http://gbcfx.com/
 National Stock exchange available from https://www.nseindia.com/
 Bombay Stock exchange available from http://www.bseindia.com/
 Daily int. news and Articles on forex available from
https://www.investing.com/
 American Stock market coverage available from
http://www.nasdaq.com/

 Analyst respective calls sometimes available from

http://www.actionforex.com/

 Calculation of Pivot points and Support/Resistance available

http://www.shubhlaxmicommodity.com/

 An Introduction to the Foreign Exchange Markets, Published in 2008

By CreativeBusinesses.com, Inc.

 Technical Analysis in the Foreign Exchange Market, Published in 2011

By Christopher J. Neely and Paul A. Weller

 Technical Analysis in Forex- A Strategy for Individual Trader in Intra-

Day Trading, Published in 2009 By Miikka Linden

 How To Trade Forex On News Releases, Published in 2011 By Kathy

Lien

 Websites:
 www.forex.com
 www.forexfactory.com
 www.babypips.com
 www.forexpros.com
 www.dailyfx.com