Forex Market (Forex, FX) is a global decentralized market for trading exchange currencies. This includes all aspects of buy/sell and exchange currencies at current or determined prices.
In terms of trading volume, it is by far the largest market in the world.
The Most participants in this market are the International Banks. Worldwide Financial centers works as anchors of trading between a wide range of buyers and sellers.
Forex market does not determine the relative values of various currencies, but it does sets the current market price of one currency as demanded against other.
What is Forex?
Most foreign exchange merchants are banks, so the marketplace may also be called the “inter bank market” (a few insurance companies as well as other types of fiscal businesses are involved ).
Trades between foreign exchange dealers may be quite substantial, requiring countless millions of dollars. Due to the sovereignty problem when involving two currencies, Forex has small (if any) supervisory thing controlling its activities.
Forex: It’s all about the Exchange
If you’ve ever traveled overseas, then you’ve made a Forex transaction. Take a trip to England and you convert your euros into pounds.
When you do this, the Forex exchange rate between the two currencies, based on supply and demand, determines how many pounds you get for your euros. And the exchange rate fluctuates continuously.