Chapter 6 The Foreign Exchange Market Exercises Ⅰ. Answer the following questions in English. 1. How many common methods to express a foreign exchange rate? Answer:There are two common methods to express a foreign exchange rate. 2. What is usefulness of settling account? Answer:Business people will pay and recieive different currencies.Therefore, they must convert the currencies that they received into the currencies that they could buy commodities. 3. How does stop order work? Answer: Stop orders can be used to enter the market on momentuma or to limit the potential loss of a position. 4. What do you think about single currency system? Is it possible to establish single currency system in the world now? Answer：I think a single currency system，it means no foreign exchange market， no foreign exchange rates，no foreign exchange． It is no possible to establish single currency system in the world now. Because in our world of mainly national currencies，the foreign exchange market plays the indispensable role of providing the essential machinery for making payments across borders，transferring funds and purchasing power from one currency to another，and determining that singularly important price， the exchange rate． 5. What is limit order? Answer: A limit is an order to buy or sell a currency at a specified price or better. 6. How to make money for many traders through foreign exchange market? Answer：(一)You should have trading currencies with a strategy. (1) Currency Trading is Only For Part of Your Investment Money (2)You Must Limit Your Losses in Currency Trading (3)Know the Trends of the Foreign Currency Market Before Trading （二）Decide What Type of Currency Trader You Will be. (1)Trade currendes in multiple lots (2)Lose the urge to trade currencies every day (3)Stick to your trading plan

Ⅱ.Fill in the each blank with an appropriate word or expression. l. The currency trader should also decide the time __frame__ that he will be using to trade in order to determine which trend will be the most important. 2. The bid is the price at which dealers are willing to __buy__ dollars (base currency) in terms of yen (quote currency) and users of our trading platform can __sell__ dollars in terms of yen. 3. The order remains active until the end of the trading day (5:00 PM EST), unless it is __executed__ or canceled by the trader. 4. A GTC order remains active until it is canceled by the currency trader or until the order is executed. It is the __trade’s__ responsibility to __cancel__ a GTC order. 5. The Foreign Exchange Market is where the majority of buying and selling of world __currencies__ takes place. 6. When placing a limit order, the trader also specifies the__duration__ for which the order is to remain active while it is not executed. Ⅲ.Translate the following sentences into English. 1. 外汇交易市场，也称为“Forex”或“FX”市场，是世界上最大的金融市场，平 均每天超过1兆美元的资金在当中周转——相当于美国所有证券市场交易 额总和的30倍。 Translation: The Foreign Exchange market, is also called “Forex” or “FX” market.It is The largest financial market in the world with trading volumes surpass USD 1 million on Average day --the equivalent of turnover trading securities market 30 times the sum of the forehead. 2. “外汇交易”是同时买入一对货币组合中的一种货币而卖出另外一种货币 外汇是以货币对形式交易，例如欧元/美元(EUR／USD)或美元/日元(USD/ JPY)。 Translation: "Foreign exchange" transaction involves the simultaneous buying One currency and selling of another. Foreign exchange trade with “currency pair”,such as the euro/dollar (EUR/USD) or dollar/yen (USD /JPY). 3. 外汇交易市场是一个24小时全球交易市场，市场交易每天从悉尼开始，并 且随着地球的转动，全球每个金融中心的营业日将依次开始，首先是东京, 然后是伦敦和纽约。 Translation:The Forex market is a 24-hour globle trading market,it is begin to Sydeny and following the earth’s turning. Every globle financial center will work in turn. At first is tokyo, and then London and New York. 4. 外汇交易投资者可以对无论是白天或者晚上发生的经济、社会和政治事件 而导致的外汇波动而随时反应。 Translation: Foreign exchange trading investors can no matter it's day or night happened to the economic, social and political events in currency fluctuations and response at any time. 5. 外汇交易市场是一个超柜台(OTC) 或“银行内部”交易市场，因为事实 上外汇交易是交易双方通过电话或者一个电子交易网络而达成的，外汇交 易不像股票和期货交易市场那样，不是集中在某一个交易所里进行的。 Translation: The foreign exchange market is over the counter (OTC) or interbank market, because in fact foreign exchange is traded through telephone lines or electronic trading networks and achieve, foreign exchange trading is not like the stock and futures market, it is not focused on a trading in exchange. 6. 在外汇交易中您会看到一个两边的报价，由买价与卖价组成，买价是在此 价格上您拟卖掉基础货币(同时买进相反货币)。卖价是这个价格，在此价 格上您可以买进基准货币时卖掉相反货币。 Translation: In the trading of foreign currency you will see a on both sides of the offer, the bid price and ask price, bid price is the price you sell to base currency (at the same time buy counter currency). Ask price is the price you buy base currency and sell counter