What is “Foreign Exchange”?
Foreign exchange is the exchange of one nation’s currency for another. In other words it is the simultaneous buying of one currency and selling of another. 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, making it the largest and most liquid market in the world.
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 US$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?
