About Forex
The Foreign Exchange (FOREX) market
is a cash (or “spot”) interbank market established
in 1971 when floating exchange rates began to materialize. This market is the
arena in which the currency of one country is exchanged for those of another and
where settlements for international business are made.
The most important foreign
exchange activity is the spot business between the dollar and the four major
currencies (Euro, British Pound, Swiss Franc and Japanese Yen). Activity within
the market is created by six main groups: central banks, commercial banks, other
financial institutions, corporate customers, brokers and independent currency
traders who have established home-based businesses.
The Foreign Exchange Market, is a worldwide market for buying and selling
currencies. It handles a huge volume of transactions 24 hours a day, 5 days a
week. Daily exchanges are worth approximately $2.6 trillion (US dollars). In
comparison, the United States Treasury Bond market averages $300 billion a day,
and American stock markets exchange about $25 billion a day, you can see how
enormous the Foreign Exchange really is. It actually equates to more than three
times the total amount of the stock and futures markets combined. Unlike other
financial markets, the Forex market has no physical location and no central
exchange. It operates through a global network of banks, corporations and
individuals trading one currency for another. The lack of a physical exchange
enables the Forex market to operate on a 24-hour basis, spanning from
one zone to another in all the
major
financial centers.
The most popular currencies along with their
symbols are shown below:
Forex Market Summary
of Benefits:
