what is foreign exchange market
Answers
Answer:
Foreign exchange refers to the exchange of one currency for some other currency. In a typical foreign exchange transaction, a party purchases some quantity of one currency by paying with some quantity of another currency. The foreign exchange market indicates a market in which the various participants are able to buy, sell, exchange and speculate on currencies depending upon their rates. They various components and participants that make up foreign exchange market include banks, commercial companies, hedge funds, investors, central banks, retail foreign exchange brokers and investment management firms. The market mainly determines the foreign exchange rate. The foreign exchange market assists international trade and investments by enabling currency conversion There are various features and characteristics that make foreign exchange market unique and attractive
Answer:
The foreign exchange market is a global destrentalized or o er the counter for the trading currencies.