Foreign Exchange (Forex)

  • Foreign exchange, also known as forex, is the conversion of one country's currency into another.
  • The value of any particular currency is determined by market forces related to trade, investment, tourism, and geo-political risk.
  • Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank for International Settlements (BIS).
  • The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands 24 hours every day.
  • Forwards and futures are another way to participate in the forex market.
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