Fx Forex Trading

The foreign exchange (Forex) is the conversion of one currency into another currency at a specific rate known as the foreign exchange rate.

Foreign Exchange

The foreign exchange market is a global decentralized or OTC (over-the-counter) market for the trading of currencies. It is usually called as Forex, FX, or currency market. This market determines foreign exchange rates for the currency of every country, including all aspects of buying, selling and exchanging currencies at current or determined prices. It is the largest market by trading volume, followed by the credit market.

The value of any currency is determined by market forces based on trade, investment, tourism, and geo-political risk. Foreign exchange is handled globally between banks and all transactions are supported by the Bank for International Settlements (BIS). The foreign exchange market does not set a currency's absolute value but rather determines its relative value by setting the market price of one currency if paid for with another. So, the exchange rates are generally referred to as 1 USD = x CAD, 1 JPY = x INR etc.