I have been studying forex for 6 months and trading for 3.
I understand the concept of risk aversion/risk appetite.
Stocks become unattractive, demand for safe haven currency rises.
I understand this concept, however I am not clear on how this works.
It seems when asian markets dive the yen immediately gains strength.
What general transactions are taking place in the banking system to cause the yen to gain strenght. When I sell a stock, the money from the sale is held in my brokerage account. Not sure how this would affect the value of the dollar.
Please explain
Chris
