Does the efficient market theory apply on the forex market Fundamental Literature review

Does the efficient foodstuff theory apply on the forex market Fundamental analysis Vs. Technical analysis - Literature review ExampleIn the international trade, the purchaser or trafficker of the products wants to have payment in his home currency. This needs an exchange of currencies from that of a seller to that of a buyer. Any international trade bequeath involve in all two momentaneous proceedings Exchange of the products in a physical form Sale or purchase of exotic currency In every international trade, the sale or purchase of every product will affect save one the parties in the foreign exchange. Suppose, If a British importer buy ? 100,000 worth of products from an American manufacturer, and the invoice is billed in US$, the burden falls on the British importer to buy ? to sweep through that business action and vice-versa. Thus, the party arrogates the risk that the exchange rate on that specific date of passage is positive to that party. (James, Neelankavil & R ai 2009246). The Forex market is operating on an international basis where currency of each nation is bought and exchange freely. The forex system was introduced in the 1970s at the time of introduction of free exchange rates and the expense of one currency, and the price of one currency against another that happens from demand and supply that ar only fixed by the market participants.(Dicks 2010 5). Forex market can be termed as a perfect market as it cannot be either monopolised or controlled by any of its participants. Due to ever increasing number of transactions on a daily basis makes it as the biggest liquid financial market and as per an estimate, bills transaction involves in the forex market form up to US$ 6 trillion per day. This figure is only a tentative figure as the exact amount cannot be quantified due to the transactions are not centralised on a forex single exchange. With the help of telecommunication, trading is carried everywhere all over the globe and with e lectronic networks with five days in week and 24 hours a day and at that place are dealers quoting currencies in each time zone through the main central markets radical York, London, Frankfurt, Hong Kong, Tokyo, New Zealand and Australia. (Dicks 2010 5). The forex market is being able to maintain its goal and avoid being manipulated or controlled by any few or one of its participants since the volume transacted is so high that if any of them would want to distort by changing price at their volition, they have to operate with hundreds of billions of dollars. That is why forex market cannot be swayed by any single participant and even though, there are scenarios where large transactions can appear to assume control of the forex market for a few minutes, the balance is restored again instantly due to the great liquid associated. This also permits traders to derive revenues by closing and opening positions within a few seconds. (Dicks 2010 5). The place or venue for the sale and purc hase of foreign currency is called as the foreign exchange market. This research try out will make a complete literature review on an efficient market guess of forex market, including fundamental and technical analysis, also offers a brief history on the forex market and overview of the market in an exhaustive manner. Definition of Foreign Currency A foreign currency rate denotes to the price any person pays in one currency to buy another currency. It is to be observed that a currency is analogous to any other product namely food or gold its price is unconquerable by the supply or demand for the said product. For instance, if a forex dealer quotes US$ 1.35 per ?, then he is quoting US$1.35 for the sale or purchase of per ?. (James, Neelankavil & Rai 2009247). Quotes for exchange rates are available either for instant release or for the future delivery. For the immediate delivery, the price of foreign currency is known as mark rate. Due to introduction of advanced IT in the forex transactions, now it is made possible for a spot transaction to be cleared or settled on the same day is possible. The largest consortium of the