forex

The Higher Institute of Management
Administration and Computer Engineering
EME Project in:
Business English
On the following subject:
Presented and sustained publicly by:
Najoua Fermouche
Soufiane Rouichi
Cedric Belfort
Oumou Touré
In front of a jury composed of:
 Madam Najoua Souad Lagmiri
Educational director of within the Higher Institute of Management,
Administration and Computer Engineering
 Madam Zineb Bahji
Professor of English within the Higher Institute of Management, Administration
and Computer Engineering
College year: 2019-2020
Exchange market

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Table of contents:
Acknowledgment ___________________________________________________________ 3
Introduction _______________________________________________________________ 4
Part I. Introduction to Exchange Market _______________________________________ 5
1. Definition of forex: __________________________________________________________ 5
2. Forex factors: ______________________________________________________________ 5
3. Benefits of Using the Forex Market _____________________________________________ 5
Part II. Functioning of foreign exchange market _______________________________ 7
1. functions of foreign exchange market ___________________________________________ 7
2. Influencing factors on forex ___________________________________________________ 8
3. How the currency market works : ______________________________________________ 9
Part III. Risks and suggestions______________________________________________ 11
Conclusion ________________________________________________________________ 14
Bibliography ______________________________________________________________ 15

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Acknowledgment
We would like to express our gratitude to our director, Ms. Lagmiri Najoua
Souad. We thank her for having supervised, guided, helped and advised us.
We extend our sincere thanks to all the professors, contributors and all the
people who by their words, their writings, their advice and their critics guided
our reflections and agreed to meet us and to answer our questions during our
research.
To all of these stakeholders, we present our thanks, respect and gratitude.

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Introduction
As part of our training in 3rd year management and business administration at ISMAGI,
an end of module project was requested by the administration of our institute, this project
which is for us a test and a first experience in group work as well as in the development and
implementation of a project report at the end of the module. Therewith, we are going to
proceed with a general introduction to the project in question which will allow us to have a
global idea on the subject tackled.
The foreign exchange market has existed in its current form, known as the floating
exchange rate regime, since March 1973 and the abandonment of the fixity of the exchange
rates of the various currencies compared to the dollar standard resulting from the Bretton
Woods agreements in 1944.
There are several types of Forex orders: simple orders, namely market orders, limit
orders and stop orders and finally combined orders, namely OCO or If Done orders .
As Forex trading was not done on an organized market but on an interbank market, the
only way for individuals before the 2000s to invest in exchange rates was to go through a
banking institution. However, with minimum transaction amounts around one million euros,
few investors had access to this market. Since the 2000s and the implementation of the MiFID
directive , all investors, individuals and professionals, can then trade on the foreign exchange
market for lower amounts through brokers. This market has grown strongly in recent years
thanks to the Internet.
Thus, our work will be divided into three chapters. First we will talk about the
introduction to the foreign exchange market then we will talk how forex works and finally we
will talk about the risks associated with forex

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Part I. Introduction to Exchange Market
1. Definition of forex:
The foreign exchange market (also known as forex, FX or the currency market) is an
over-the-counter (OTC) global marketplace that determines the exchange rate for currencies
around the world. Participants are able to buy, sell, exchange and speculate on currencies.
Foreign exchange markets are made up of banks, forex dealers, commercial companies,
central banks, investment management firms, hedge funds, retail forex dealers and investors.
2. Forex factors:
In general, any individual carrying out a transaction directly or indirectly affecting the
Forex market is considered to be a full player in this market, whether he is involved
voluntarily or not. We will review here the main players present in the Forex market.
• Central banks and governments. ...
• Banking establishments. ...
• Hedge Funds. ...
• Import / export managers
3. Benefits of Using the Forex Market
There are some key factors that differentiate the forex market from others, like the stock
market.
• There are fewer rules, which mean investors aren't held to the strict standards or
regulations found in other markets.
• There are no clearing houses and no central bodies that oversee the forex market.
• Most investors won't have to pay the traditional fees or commissions that you would
on another market.