Foreign Exchange Market
The Foreign Exchange Market, or Forex, is a global platform where currencies are bought and sold. It operates 24/5, allowing participants—such as banks, companies, and individuals—to exchange one currency for another based on current rates. These rates fluctuate due to factors like economic data, interest rates, and geopolitical events. The Forex market is crucial for international trade, investment, and tourism, as it enables seamless currency conversion, helping businesses and travelers transact across borders. In essence, it facilitates global commerce by determining how much of one currency is needed to purchase another.
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The foreign exchange market (Forex) is a global platform where currencies are traded. It operates 24/5, allowing individuals, businesses, and governments to buy, sell, or exchange currencies at current or determined prices. The Forex market determines the value of different currencies based on supply and demand. For example, if many people want to buy euros with dollars, the euro's value increases. Forex influences international trade, tourism costs, and investment decisions, making it essential for the global economy. It's the largest and most liquid financial market, with daily transactions exceeding $6 trillion.