Publisher's Synopsis
The foreign exchange market, is referred to as the forex market or the FX market, is an international exchange where national currencies can be traded. Due to the global nature of trade, business, and finance, FX markets are frequently the biggest and most liquid asset markets on the planet.
Exchange rate pairs are used to compare currencies. The currency pair EUR/USD, for instance, is used to trade the euro against the dollar.
The foreign exchange market offers forwards, futures, options, and currency swaps in addition to spot (cash) trading.
Forex is used by market participants, among other things, to hedging against international currency and interest rate risk, to bet on geopolitical events, and to diversify portfolios.
