The Foreign Exchange Market is the largest financial market in the world. It has no central exchange location. It has 3 times larger size of the stock and futures markets. It consists of selling and buying of currencies operated via electronic network of central bank corporations and different investors and brokers.
The major currencies are:
USD — United States Dollar
AUD — Australia dollar
JPY — Japan Yen
CHF — Switzerland franc
GBP — Great Britain pound
EUR — Euro members Euro
CAD — Canadian dollar
Mostly 2 types of investors are concerned in the Forex market.
1. Hedgers
2. Speculator
The first type of investors is the hedgers who are involved in International trades. They work to defend their investment in a transaction from currency fluctuations.
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