A study on emergence and growth of euro currency market

INTRODUCTION A Market is where things are bought and sold. Currencies and financial claims are bought and sold in the financial market. About half a trillion dollars worth of financial transactions is taken place every day. In addition, Financial Markets Trade Claims - promise to pay in future - and a variety of contingent contracts, where payments or exchanges depend on some future event. Claims include stocks and bonds, mortgage loans, bank deposits, and many other instruments, whereas contingent contracts include Futures and Options, letters of Credit, and Forward Contracts, among other things.The Financial Market became Global when the buyers and sellers of certain Financial Instruments readily Trade beyond their national boundaries. Some instruments, like Euro Dollar, have been designed specifically to trade internationally.