The foreign exchange market
(currency, forex, or FX)
market is where currency
trading takes place. It is
where banks and other official
institutions facilitate the
buying and selling of foreign
currencies. FX transactions
typically involve one party
purchasing a quantity of one
currency in exchange for
paying a quantity of an
more

The foreign exchange market
(currency, forex, or FX)
market is where currency
trading takes place. It is
where banks and other official
institutions facilitate the
buying and selling of foreign
currencies. FX transactions
typically involve one party
purchasing a quantity of one
currency in exchange for
paying a quantity of another.
The foreign exchange market
that we see today started
evolving during the 1970s when
worldover countries gradually
switched to floating exchange
rate from their erstwhile
exchange rate regime, which
remained fixed as per the
Bretton Woods system till
1971.

Now, the FX market is one of
the largest and most liquid
financial markets in the
world, and includes trading
between large banks, central
banks, currency speculators,
corporations, governments, and
other institutions. The
average daily volume in the
global foreign exchange and
related markets is
continuously growing.
Traditional daily turnover was
reported to be over US$3.2
trillion in April 2007 by the
Bank for International
Settlements. Since then, the
market has continued to grow.
According to Euromoney's
annual FX Poll, volumes grew a
further 41% between 2007 and
2008.

The purpose of FX market is to
facilitate trade and
investment. The need for a
foreign exchange market arises
because of the presence of
multifarious international
currencies such as US Dollar,
Pound Sterling, etc., and the
need for trading in such
currencies.

Category Howto & DIY

Tags Foreign, exchange, market, currency, forex, FX, Trading, Exchange, rates, Currency, band, rate, regime, Fixed, Floating, Futures, Retail, future, Non-deliverable, forward, Forex, swap, option, official, institutions, facilitate, transactions, involve