What is the Foreign Exchange Market?

With nearly $4 trillion in average daily volume, the Forex markets are a massive part of the securities business. The buying and selling of currencies has always been a large part of a bank's trading accounts, often accounting for greater than 10% of their business over the year. In the past five years, with the sinking of the dollar versus foreign currencies (especially versus the Euro), many individual investors have come to these markets.

This is not a physical exchange, rather this is an organization of computer trading systems that link all of the biggest banks and others.


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