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> Currencies do not have (>10% of volume of transactions) investors, they have (>90% of volume of transactions) users. Are you sure about your numbers? from t
by chollida1 14y ago
> Currencies do not have (>10% of volume of transactions) investors, they have (>90% of volume of transactions) users.
Are you sure about your numbers?
from the fx exchange wikipdeia page:
> As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks. According to the Bank for International Settlements,[3] as of April 2010, average daily turnover in global foreign exchange markets is estimated at $3.98 trillion, a growth of approximately 20% over the $3.21 trillion daily volume as of April 2007. Some firms specializing on foreign exchange market had put the average daily turnover in excess of US$4 trillion.[4]
If you are right that less than 10% of fx transactions are traders and there is 4 trillion in fx trades a day then there must be 36 trillion in non trader transactions a day.
That seems a bit high to me:) I think if anything you've got your values transposed:)
- Locke1689 14y agoWhy does 36 trillion seem high? Sounds about right, especially since some of the forex trades are for legitimate currency changing, not speculation.
- chollida1 14y agoMostly based on the Wikipedia estimate of 69 trillion as the world wide GDP. Though as I said, it's also very much a gut feel:)
- Locke1689 14y agoYou should look a little more into what GDP means. The "money" you see is very much the tip of the iceberg.
- chollida1 14y ago> You should look a little more into what GDP means. The "money" you see is very much the tip of the iceberg. :) I work in finance. I'm well aware of what GDP means. I appreciate you trying though:)