Know About FOREX

1. KNOW ABOUT FOREX From THOMAS COOK

2. What is FOREIGN EXCHANGE ? • The term Foreign Exchange implies two things: a)foreign currency b)exchange rate • It is the mechanism by which the currency of one country gets converted into the currency of another country • The conversion of currency is done by banks or authorised organizations like Kohlberg Kravis Roberts (KKR), Carlyle, Travelex, etc.,who deal in foreign exchange

3. Foreign Exchange Market • Foreign exchange market is that market in which national currencies are traded • The major participants in this market are commercial banks, forex brokers, authorized dealers and the monetary authorities • Besides transfer of funds from one country to another, speculation is also an important dimension of foreign exchange market • It’s where money in one currency is exchanged for another

4. Terms Related to Foreign Exchange • Foreign exchange reserves- holdings of other countries' currencies • Foreign exchange controls- controls imposed by a government on the purchase/sale of foreign currencies • Retail foreign exchange platform- speculative trading of foreign exchange by individuals using electronic trading platforms • Foreign exchange risk- arises from the change in price of one currency against another • International trade- the exchange of goods and services across national boundaries • Foreign exchange company- a broker that offers currency exchange and international payments • Bureau de change- a business whose customers exchange one currency for another • Currency pair- the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market • Digital currency exchanger- market makers which exchange fiat currency for electronic money

5. Factors Influencing Exchange Rates As with any market, the forex market is driven by supply and demand: • If buyers exceed sellers, prices go up • If sellers outnumber buyers, prices go down The following factors can influence exchange rates: • National economic performance • Central bank policy • Interest rates • Trade balances – imports and exports • Political factors – such as elections and policy changes • Market sentiment – expectations and rumors • Unforeseen events – terrorism and natural disasters Despite all these factors, the global forex market is more stable than stock markets; exchange rates change slowly and by small amounts

6. Buying and Selling Exchange rates are quoted as two way quotes – for purchase and for sale transactions by the Bank

7. Why is Thomas Cook Best in This Field? • Best online rates • Doorstep delivery and branch pick up options • Pay small amount and block currency • Multiple payment options • 24hr delivery in major cities

8. Products and Services Offered by Thomas Cook • Currency Notes • Travellers Cheque • Borderless Prepaid Card • Holiday Money • Business Trips • Student Travel

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