DESIGN AND IMPLEMENTATION OF ONLINE STOCK EXCHANGE RESEARCH PORTAL A CASE STUDY OF FIRST BANK ENUGU

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ABSTRACT

            Information technology has done a lot in the field of banking work. A lot of tools have been developed to assist in the banking sector. This project work is concern in the design and implementation of online stock exchange research portal used in first bank of Nigeria Enugu branch.

            Foreign exchange involves changing different currency to a particular currency. This has been previously done by manual method. But this project is aimed at automating our foreign exchange system to make the work easier. This is possible because of the advance improvement in information technology as pertaining programming language; because this is achieved by the help of visual basic programming language.

TABLE OF CONTENT

Title page                                                                                                        i

Approval page                                                                                     ii

Dedication                                                                                                      iii

Acknowledgement                                                                                          iv

Abstract                                                                                                          v

Table of content                                                                                             

Chapter one

1.0       Introduction                                                                                        1

  1. statement of the problem                                                                    2
    1. Purpose of study                                                                                 3
    1. Aims and objective of the study                                                         3
    1. Scope of study                                                                                    4
    1. Constraints                                                                                          4
    1. Assumptions                                                                           5
    1. Definition of terms.                                                                5

Chapter two

  • Literature review                                                                                 7

Chapter three

  • Description and analysis of the existing system                     10
    • Method of data collection                                                      11
    • Objective of the existing system                                             11       
    • Organizational chart                                                                12
    • Input/process/output analysis                                                  13       
    • Information flow diagram                                                      15

Chapter four

Design of new system                                                                         16

  • Output specification and design                                                         16
    • Input specification and design                                                            17
    • File design                                                                                           17
    • Procedure chat                                                                                    19
    • System flowchart                                                                                20       

Chapter five

5.0       Implementation                                                                                   22

  • Program design                                                                                   22
    • Program flowcharts                                                                 24
    • Pseudo code                                                                                        25

Chapter six

  • Documentation                                                                                   27

Chapter seven

Summary, recommendation and conclusion                                       29

  • Summary                                                                                             29
    • Recommendation                                                                                29
    • Conclusion                                                                                          30

CHAPTER ONE

INTRODUCTION

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is the largest and most liquid financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The average daily trade in the global forex and related markets currently is almost US$ 4 trillion.[1]

The foreign exchange market is unique because of

  • its trading volumes,
  • the extreme liquidity of the market,
  • the large number of, and variety of, traders in the market,
  • its geographical dispersion,
  • its long trading hours: 24 hours a day except on weekends (from 5pm EST on Sunday until 4pm EST Friday),
  • the variety of factors that affect exchange rates.
  • the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
  • the use of leverage

Market participants

Unlike a stock market, where all participants have access to the same prices, the forex market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. As you descend the levels of access, the difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the forex market are determined by the size of the “line” (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail forex market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the forex market to align currencies to their economic needs.

Banks

The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank’s own account.

Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

Commercial companies

An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency’s exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

Central banks

National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high — that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank “stabilizing speculation” is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.

The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank.[4] Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.

  1. 1.1              STATEMENT OF THE PROBLEM

Although exchange rates are affected by many factors, in the end, currency prices are a result of supply and demand forces. The world’s currency markets can be viewed as a huge melting pot: in a large and ever-changing mix of current events, supply and demand factors are constantly shifting, and the price of one currency in relation to another shifts accordingly. No other market encompasses (and distills) as much of what is going on in the world at any given time as foreign exchange.

Supply and demand for any given currency, and thus its value, are not influenced by any single element, but rather by several. These elements generally fall into three categories: economic factors, political conditions and market psychology. This lead to the development of computerized online stock exchange research portal.

DESIGN AND IMPLEMENTATION OF ONLINE STOCK EXCHANGE RESEARCH PORTAL A CASE STUDY OF FIRST BANK ENUGU