In the foreign exchange market (Forex, Forex, or FX) market where currency trading takes place. In terms of banks and other official institutions to facilitate the buying and selling foreign currencies. [1] foreign currency transactions typically involve one party purchasing
And began the foreign exchange market that we see today evolved during the 1970s when countries worldover gradually shifted to a floating exchange rate of the former exchange rate regime, which has been fixed in accordance with the Bretton Woods system until 1971. Today, the foreign exchange market is one of the largest financial markets and most liquid in the world, and includes trading between large banks, central banks, speculators, corporations, governments and other institutions
Average daily volume in the global foreign and related markets is constantly increasing. The daily trading volume of traditional reported that more than U.S. $ 3.2 trillion in April 2007 by the Bank of International Settlements. [2] Since then, the market continued to grow. According to a poll in Euromoney’s annual foreign currency, and increased another 41% between 2007 and 2008. [3]
The purpose of the foreign exchange market is to facilitate trade and investment. The need for a foreign exchange market arise because of the existence of various international currencies such as the U.S. dollar, pound sterling and the other, and the need for trading in the currency of this kind.
