Do You Know Where We Exchange Our Currencies?

The foreign-exchange-market is a global, worldwide decentralized financial market for trading currencies. Financial centers are the places which enable trading among different buyers and sellers round the clock. The foreign-exchange-market determines the relative values for different currencies.

Forex is the acronym for foreign exchange. Its also known as FX, here one can buy currency and simultaneously sell another currency. It is the over the counter market. It is the global financial market place, we can buy and sell the currencies easily.

Forex market is the world traded market, trading 24 hours in a day. Foreign-exchange market's one day average turnover is nearly $3.2 trillions. In this market, currency is traded in pairs, like Euro-US dollar (EUR-USD) or US dollar-Japanese Yen (USD-JPY) etc. There is no centralized exchange for forex. All the transaction happen through phone or electronic networks.

Forex trade market is the largest and unique market because,

• its huge trading volume represents the largest asset class in the world
• its geographical widespread
• its continuous operation, 24 hours a day except the weekends
• variety of factors that effect the exchange rate
• lower margins and better profits compared to other trade market

Hence, forex market helps in exchange of our currency with various global currencies.