What is “Foreign Exchange”?
The Foreign Exchange market, also referred to as the “Forex” market, is the largest financial market in the world, with a daily average turnover of approximately US$1.2 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world’s currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.
The Foreign Exchange market, also referred to as the “Forex” or “FX” market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world’s currencies are on a floating exchange rate and are always traded in pairs, for example Euro/Dollar or Dollar/Yen.
The Foreign Exchange market, is also referred to as the “FOREX” or “Forex” or “Retail forex” or “FX”. Since 1999, Forex has been available to the retail traders. The Forex market is the world’s largest financial market with an average volume of $3.2 trillion per day. If you compare that to the $50 billion traded daily by the New York Stock Exchange you can easily see how enormous Forex really is. (Source: Bank for International Settlements, September 2007) Please note: In the off-exchange, also called the over-the-counter market, a retail customer trades directly with a counterparty and there is no exchange or central clearing house to support the transaction.
The Foreign Exchange market, also referred to as the “FOREX” market, is the largest financial market in the world, with a daily average turnover of approximately $1.5 trillion. Foreign Exchange is the simultaneous buying of one currency and selling of another. The world’s currencies are on a floating exchange rate and are always traded in pairs, for example EUR/USD or USD/JPY. Why haven’t I heard of Foreign Exchange? The answer is simple: the currency market was simply financially inaccessible to the general population of investors and traders, and the minimum account requirements were beyond the resources of the average investor. Since then, the situation has changed dramatically. Now under new bank regulations, instead of a minimum investment of $200K, accounts can be opened for $10 – $50K. Who are the participants in the FOREX Market? The FOREX market is called an ‘Interbank’ market due to the fact that historically it has been dominated by banks, including central banks, commercial
Foreign exchange is the simultaneous buying of one currency and selling of another. The world’s currencies are on a floating exchange rate and are always traded in pairs, for example Euro / Dollar or Dollar / Yen. With a daily average turnover of approximately $1.4 trillion, the foreign exchange market, also known as the “Forex” or “FX” market, is the largest financial market in the world.
Related Questions
- I want to make a booking online and to pay in foreign currency using my credit card. How will the foreign exchange rate be applied to my booking?
- For someone just starting to try forex trading, what trends or patterns would be most useful or fundamental to learn about and study first?
- Anyone interested in online foreign exchange for business?
