Assignment 5. Complete the following utterances

1. Forex trading is the process of____________________.

2. The main participants in the forex market are_____________.

3. Competitive prices given by market-makers to individual forex traders are based on ___________________.

4. Unlike any of the other financial markets, forex speculators can respond to currency fluctuations caused by________ at the time they occur, _________________.

5. The bid is the price at which____________________.

6. The offer price is the price at which _________________.

7. The spread is a difference between__________________.

8. The unit of price change in the bid/offer prices of a currency pair is called a _________.

9. The prices and spreads quoted by primary market-makers are more appealing to individual forex traders than prices quoted by banking institutions, because______________________________________.

Assignment 6. FOREX vs. Stock Market. Listen to the program about the benefits the FOREX market offers above the traditional stock markets. Enumerate the benefits and provide appropriate explanations.

Fill in the blanks in the following excerpts:

Lower trading costs

These spreads are very ____, and ________than stock trading fees. At your currency trader’s place, there’s no fee to close a position, _______, set limit orders, _______, etc. In the stock market, most brokers _____for many of these extra orders. Simply put, _________ are much lower in the forex market.

Greater liquidity

The forex market is a 1.9-trillion-dollar-a-day market. That greatly ______the dollar volume of the US __________ combined. These means that traders in the currency market have an easier time exiting and entering the forex market, since there are many more buyers and sellers.