Foreign Exchange Market

The foreign exchange market, also known as the forex market, is the market where participants trade currencies. Traders usually do this for speculative purposes, while companies usually use it for hedging or business operations. Market participants include banks, funds, businesses, central banks and traders.

The currency market is considered to be the largest and one of the most liquid financial markets in the world, processing trillions of dollars worth of transactions each day.

The foreign exchange markets isn’t dominated by a single market exchange, but involves a global network of computers and brokers from around the world.  Forex brokers usually offer high leverage but forex trading is usually a bad idea for novice investors who proceed to lose their shirt in it, as it is highly speculative.