The Aztec currency is in the top 10 of the most exchanged in the world and is extremely attractive to the traders, despite the volatility.
Donald Trump may lead to slowing global trade or foreign direct investment in Mexico, but will not stop the attractiveness of the Mexican peso for international investors , even with the ingredient of volatility, said Darren M. Jer, CEO and co-founder of MarketFactory , a technology firm that provides efficiency and speed to the international currency market. “Volatility still add more liquidity to the Mexican peso, will attract more traders and one of the reasons why the Mexican peso is in the top 10 traded currencies is the quality of the country as an exporter of goods , ” he explained.
In an interview with El Financiero he explained that the volatility that has added to the foreign exchange markets the presence of Trump is attractive for professional traders, because it is the way in which they make money.
In general, currencies are exchanged for three reasons: foreign direct investment , global trade and speculation, and the latter is always the largest because people need liquidity. “Trump could slow foreign direct investment in Mexico, reduce global trade but the secular market, driven by speculation, is increasing,” he said.
EFFICIENT OPERATIONS According to MarketFactory
Data, in 2016 all stock markets as a whole, Europe , Asia, America, South America, handled $ 114 trillion, compared to the exchange market where the volume of transactions reached 1.3 trillion dollars. As currencies are the largest of all financial markets, technology plays an important role, because there is no single place to buy or sell currencies, it is a highly fragmented market.
“With better technology you can prevent risks and capture more opportunities. MarketFactory’s API allows you to manage the difference between more than 50 currency trading sites and that banks, brokers and funds market instantaneously in markets around the world with just one touch, “he said. He explained that this system reduces the differential by making the market more efficient which allows lower fees so that the final consumer has a direct benefit.