The currency market, FX or Forex market is the market in which the currencies of the different countries are traded. The volume of currencies traded daily exceeds 5 trillion dollars, which makes it the largest and most liquid financial market worldwide.

About 40% of all transactions take place in the London market, which makes it the world's largest currency market. The abolition in 1979 of all foreign exchange controls in Great Britain and the establishment of a solid infrastructure for the negotiation of the same contributed decisively to this.

The currency market is the backbone of international trade and investment globally. It is essential to facilitate import and export operations, providing adequate means of payment, financial resources, and enhancing additional levels of demand for goods and services. Without the ability to trade in different currencies, the prospects of companies would be limited and global economic growth would suffer.

Investors also use the forex market. Those who seek to benefit from international diversification need foreign exchange to buy and sell foreign goods and securities. Some investors see currencies as an asset class in itself, negotiating with them to generate alpha.

The negotiation takes place in a global environment between authorized agents (banks, called dealers, [[metatrader 4 iphone providers:https://www.atfx.com/gm/en/mt4-for-iphone/]]) to operate in these markets, environment or global network that connects buyers and sellers. The currencies are negotiated electronically and bilaterally, being an OTC market (over the counter, or without supervision). One of the challenges for investors is to identify where the market is when they want to negotiate a currency purchase and sale operation, due to the lack of transparency associated with the OTC markets such as this one.

References: https://www.youtube.com/watch?v=zytmecklTWs


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