How the Market Work
Unlike any other market, the foreign exchange market does not have any central clearinghouse where buyers and sellers meet to make a transaction. Instead, international banks known as “interbanks” help set the price for currencies around the globe.
Firms on the Forex Market
In the last article we showed you how foreign exchange participants do not place trades on a centralized market. Instead, each individual person and entity is essentially a little piece of a larger market.
Forex Market Size: Massive.
The foreign exchange market is the largest market by total nominal value of all things traded. Each day, some $4 trillion in value trades hands between governments, institutional investors, corporations, and individual traders who trade world currencies between themselves.
Other markets find it hard to compete against the foreign exchange market’s massive size. The chart below shows the total value of the foreign exchange market versus several other financial markets:
Subscribe to:
Posts (Atom)
