The foreign exchange market, commonly referred to as Forex or FX, is a global decentralized marketplace where national currencies are bought and sold. It is the largest financial market in the world, with a daily trading volume exceeding $6 trillion, making it highly liquid and active 24 hours a day as it operates across major financial centers in different time zones, including London, New York, Tokyo, and Sydney. Forex involves a wide range of participants, such as banks, financial institutions, corporations, governments, and individual traders.
Currencies are traded in pairs, with the value of one currency being quoted relative to another, such as the Euro to US Dollar (EUR/USD) pair. Forex trading is conducted either over-the-counter (OTC) through a network of banks or via electronic trading platforms. Market participants engage in Forex trading for various reasons including speculation, hedging against currency risk, or to exchange currencies for international trade and investment. The Forex market is influenced by a vast array of factors, including economic indicators, geopolitical events, interest rates, and market sentiment, making it complex and volatile, yet potentially profitable for knowledgeable traders and investors.
No responses yet