The notion of financial investments the foreign exchange market

Currently, the term "financial investment" has no clear-cut interpretation for the currency market in economic literature. There is no consensus as to whether the investment-governmental speculation, especially on the OTC market? Are all the trading operations carried out with different objectives and investment? In scientific literature, there are three approaches to defining "financial investments": 1) financial investment is an investment of investors' private or borrowed funds in financial instruments (financial assets and liabilities) for a specific purpose, which is usually "to get the desired level of expected returns with lower expected risk" or "to achieve another useful effect"; 2) financial investment is an investment by means of the transactions purchase/sale of financial instruments in the investment market, including the foreign exchange market; 3) financial investments as an economic category and as a process can also mean "cumulative investment movement, different forms and levels", which is implemented through the a mechanism inherent in the investment market. All the approaches are focused on a particular aspect. We studied the essential features of financial investment companies. It was found that six features are more attributed to the financial investment in the foreign exchange market. These are liquid assets, presence of a risk, a source of income (profit), the stated object of market relations (the object of purchase/sale), facility management, the active form of involvement of capital in economic process. The author proposed to add the following characteristics to the list: target and underlying asset as well as the form and object of investment, the need for management of the investment process. Based on the analysis of the essence of the concepts "international foreign exchange market" and "trading" carried out by the author in earlier works, a definition of financial investment in the foreign exchange market in the broadest sense was formulated. According to this definition, financial investment in the currency market is a set economic relations among market participants connected with the formation, distribution and use of private and borrowed financial resources arising in the course of their investment in the form of the transactions of purchase/sale of financial instruments with different underlying assets (foreign currency, interest rate gold), implemented under a minute figure to generate an income or another benefit. Thus, all trading transactions on the foreign exchange market with different targets, the result of which are an income or another useful benefit shall be considered as an investment of financial resources in liquid assets.

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