Foreign Exchange - Research Articles

  The foreign exchange market (also known as forex, FX or currency business) is a regional marketplace over-the-counter ( OTC) that sets the exchange rate for currencies worldwide. Participants will purchase, sell, transact and gamble on currencies. Foreign exchange markets consist of banks, forex dealers, trading firms, central banks, investment management firms , hedge funds, retail forex traders and investors. It is by far the biggest financial market in the world in terms of trading volume. In addition to providing a venue for the purchase , sale, exchange and speculation of currencies, the forex market also allows currency conversion for international settlements and investments. Currencies are often exchanged in pairs, and the "interest" of one currency in that pair is proportional to the other's interest.