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Foreign Exchange, also known as "FX" or "Forex,"
refers to the worldwide market for national currencies. Currencies of one nation are exchanged for that of another by central
banks, major corporations, brokerages, and individual traders. At any given time, prices.
Since all transactions are
for sale sale/purchase of currency, the Forex market is the most liquid in the world; it is also the world's largest financial
market, with a daily turnover in excess of $1.5 trillion. In comparison, the New York Stock Exchange averaged only $38 billion
of dollar volume per day for 2003.
Unlike the NYSE, the Foreign Exchange market has no central marketplace ("exchange")
or trading floor where most transactions occur. Instead, trading occurs through a network of players and intermediaries spread
throughout the world. This type of market-one that lacks a centralized exchange-is called an OTC, or "Over the Counter" market.
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