Understanding Financial Markets of Europe

Understanding Financial Markets of Europe

Financial and commercial transactions in the currency market are worth huge sums. However, it far outnumbers the amount that is speculated on. It is evident that understanding Financial Markets allows you to enjoy vast majority of the trading volume hovers around speculation.

These include traders conducting buying and selling in expense management apps for making both short term and long term gains. People who need to purchase foreign currency also keep a tab of the state of the market conditions.

Two major factors of Financial markets

It has been estimated that more than 90% of the regular trade volume is based on speculation. The index of the depth and breadth of the market implies that the liquidity of the Forex market does not find an equivalent in any of the global financial market.

Trading in the London and European market begins at a time when the Asian markets have already had half of their daily transactions. Business Investment in UK and other financial centres of the European continent contribute almost half of the global trading volume.

Financial markets in UK

Two major factors of Financial markets

  • Data
  • Accuracy


The European trading session overlaps both the North American trading session and the Asian trading session. This implies that liquidity and market interest are at its peak during the session.


The data and news that filters out of the Eurozone such as United Kingdom, Switzerland and other European countries is released during the wee hours of the European session. As a result, there is active trading following the release of this information.

functions of financial markets


Each currency market goes by its own market trading conventions and has its own jargon. If you are new to the market and have just started out with online currency exchange, then you will obviously need some time to become familiar with the terminology and get used to the constant fluctuations in the market.

However, at the end of the day you will discover that almost all the markets operate pretty much by similar conventions.

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