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Forex Markets or Foreign Exchange markets are one of the most unique and extraordinary financial trading markets in the world today. The forex market is a market in which currencies of all countries throughout the world are traded. The foreign exchange market is unique in many ways. First of all, it is the largest trading market in the world as almost $2 trillion is exchanged daily in the market. Also, the market is known for its extreme liquidity, which means that a large number of trades can occur without affecting price. The foreign exchange market is also unique because unalike many of the traditional markets, the foreign exchange market is international and thus is open at all times of the day on weekdays and only closed on weekends. Also, since the market is international, there is not one trade centre where all foreign exchange transactions are conducted, but rather many trade centres across the world. Some of the larger foreign exchange trade centres are in London, New York, Tokyo, and other major cities throughout the world.
In the foreign exchange markets the most commonly traded form of currency is the American dollar followed by the Euro and then the Japanese Yen. In a study conducted by the Bank for International Settlements or BIS, it was found that the US dollar was used in 89% of the transactions conducted in the Foreign Exchange Market, while the Euro was used 37% of all transactions and the yen was used in 20% of all transactions. In the Forex Markets, banks are the primary traders. In most cases banks usually trade to gain money for themselves; however, in certain cases banks have been found to make trades in the foreign exchange market or its clients. The Foreign Exchange market is the largest exchange market in the world today and is unique from all the other trading markets in various parts of the world.
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