Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to conduct foreign trade and business. The foreign exchange market is where currencies are traded. Market participants use forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among several other reasons. For example, EUR/USD.įorex markets exist as spot (cash) markets as well as derivatives markets offering forwards, futures, options, and currency swaps. The foreign exchange (also known as FX or forex) market is a global marketplace for exchanging national currencies against one another.īecause of the worldwide reach of trade, commerce, and finance, forex markets tend to be the largest and most liquid asset markets in the world.Ĭurrencies trade against each other as exchange rate pairs. According to a recent triennial report from the Bank for International Settlements (a global bank for national central banks), the average was more than $5.1 trillion in daily forex trading volume.1 Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism. Forex is a portmanteau of foreign currency and exchange.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |