FX volumes hit three year high in South Korea

FX volumes continue to show strength as South Korean banks' foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term trading volume hit a near 3-year high in the second quarter, the central bank announced.

The daily average foreign exchange turnover for banks amounted to $47.9 billion in the second quarter, up 3.5 percent from the previous quarter, the Bank of Korea (BOK) said in a statement. The second-quarter figure was the largest since 50.6 billion dollars in the third quarter of 2008.

The daily turnover of spots reached 20 billion dollars on average during the April-June period, up 8.7 percent from three months earlier. The rise in spots was attributed to foreign fund inflow into local bonds and stocks, according to the BOK.

The trading volume of foreign exchange products such as forwards, Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term and options remained unchanged at 27.9 billion dollars over the cited period. The increase in foreign exchange products was bolstered by rising short positions of domestic exporters in foreign exchange forwards and offshore traders' long positions in non-deliverable forwards (NDF), the BOK said.

Local banks posted 22.6 billion dollars in the daily foreign exchange turnover during the second quarter, while the trading volume for foreign banks' Seoul branches reaching 25.4 billion dollars.

South Korea has been slow to gain momentum in the retail FX market. Local investors are inclined to trade in the liquid KOSPI futures or WON futures on the domestic exchange.

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