Foreign exchange market

foreign exchangeforexcurrency exchangecurrency marketcurrency tradingforeign exchange tradingcurrency marketsFXcurrenciesexchange
The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies.wikipedia
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Currency

currenciesforeign currencycoinage
The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies.
These various currencies are recognized as stores of value and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies.

Exchange rate

exchange ratesreal exchange rateforeign exchange rate
This market determines the foreign exchange rate.
Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers, and where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday.

Euro

EUReuros
For example, it permits a business in the United States to import goods from European Union member states, especially Eurozone members, and pay Euros, even though its income is in United States dollars.
The euro is the second largest and second most traded currency in the foreign exchange market after the United States dollar.

Interbank foreign exchange market

interbank marketinter-bank marketinterbank
Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the "interbank market" (although a few insurance companies and other kinds of financial firms are involved). At the top is the interbank foreign exchange market, which is made up of the largest commercial banks and securities dealers.
The interbank market is the top-level foreign exchange market where banks exchange different currencies.

Central bank

central bankscentral bankingcentral banking system
As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks.
managing the country's foreign exchange and gold reserves and the Government bonds

Floating exchange rate

floatfloatedfloating
Countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed per the Bretton Woods system.
A floating exchange rate (also called a fluctuating or flexible exchange rate) is a type of exchange-rate regime in which a currency's value is allowed to fluctuate in response to foreign-exchange market mechanisms.

Currency intervention

currency manipulationintervention in the foreign exchange marketintervene in the foreign exchange market
As such, it has been referred to as the market closest to the ideal of perfect competition, notwithstanding currency intervention by central banks.
Policymakers may intervene in foreign exchange markets in order to advance a variety of economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability.

Exchange-rate regime

exchange rate regimeexchange rate policyexchange rate
Countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed per the Bretton Woods system.
An exchange-rate regime is the way an authority manages its currency in relation to other currencies and the foreign exchange market.

Financial centre

financial centerfinancial centresfinancial capital
Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends.
London is the largest centre for derivatives markets, foreign exchange markets, money markets, issuance of international debt securities, international insurance, trading in gold, silver and base metals through the London bullion market and London Metal Exchange, and international bank lending.

Pound sterling

£poundspounds sterling
At the end of 1913, nearly half of the world's foreign exchange was conducted using the pound sterling.
Sterling is the third most-traded currency in the foreign exchange market, after the United States dollar, and the euro.

The Bank of Tokyo

Bank of TokyoThe Bank of Tokyo, Ltd.
As a result, the Bank of Tokyo became the center of foreign exchange by September 1954.
The Bank of Tokyo, Ltd. was a Japanese foreign exchange bank that operated from 1946 to 1996.

Leverage (finance)

leverageleveragedfinancial leverage
the use of leverage to enhance profit and loss margins and with respect to account size.
On the other hand, the extreme level of leverage afforded in forex trading presents relatively low risk per unit due to its relative stability when compared with other markets.

Bank for International Settlements

BISBank for International Settlements (BIS)Bank of International Settlements
According to the Bank for International Settlements, the preliminary global results from the 2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Markets Activity show that trading in foreign exchange markets averaged $5.09 trillion per day in April 2016.
While monetary policy is determined by most sovereign nations, it is subject to central and private banking scrutiny and potentially to speculation that affects foreign exchange rates and especially the fate of export economies.

Hong Kong

🇭🇰HKGHong Kong SAR
So the order became: United Kingdom (41%), United States (19%), Singapore (6%), Japan (6%) and Hong Kong (4%).
It is the world's seventh-largest trading entity, and its legal tender (the Hong Kong dollar) is the world's 13th-most-traded currency.

United States dollar

$US$USD
For example, it permits a business in the United States to import goods from European Union member states, especially Eurozone members, and pay Euros, even though its income is in United States dollars.
The last peg was $42.22 per ounce before the U.S. dollar was allowed to freely float on currency markets.

Electronic trading

screen-based tradingeTradinge-trading
The growth of electronic execution and the diverse selection of execution venues has lowered transaction costs, increased market liquidity, and attracted greater participation from many customer types.
Electronic or scripless trading, sometimes called e-trading or paperless trading is a method of trading securities (such as stocks, and bonds), foreign exchange or financial derivatives electronically.

Investment banking

investment bankinvestment bankerinvestment banks
At the top is the interbank foreign exchange market, which is made up of the largest commercial banks and securities dealers.
An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services (fixed income instruments, currencies, and commodities).

Alex. Brown & Sons

Alex BrownAlexander BrownBT Alex Brown
Alex. Brown & Sons traded foreign currencies around 1850 and was a leading currency trader in the USA.
Brown and Sons, Inc. By the 1820s, Alexander Brown had expanded his business interests into sterling exchange and international trade, including tobacco and cotton.

Percentage in point

pippips
The difference between the bid and ask prices widens (for example from 0 to 1 pip to 1–2 pips for currencies such as the EUR) as you go down the levels of access.
In finance, specifically in foreign exchange markets, a percentage in point or price interest point (pip) is a unit of change in an exchange rate of a currency pair.

Citigroup

CitiCiticorpCitiFinancial
Markets & Securities Services includes investor services and direct custody and clearing, hedge fund and private equity servicing, and issuer businesses. It provides financial products through underwriting, sales & trading of a range of investment assets. Products offered include servicing of equities, commodities, credit, futures, foreign exchange (FX), emerging markets, G10 rates, municipals, prime finance/brokerage services, and securitized markets, such as collateralized debt obligations and mortgage-backed securities. Its Citi Research team provides equity and fixed income research, company, sector, economic and geographic market analysis, and product-specific analysis for Citi's individual and institutional clients. Its flagship research reports include the following: Portfolio Strategist, Bond Market Roundup, U.S. Economics Weekly, International Market Roundup, Global Economic Outlook & Strategy and the Global Equity Strategist.

XTX Markets

XTX Markets is a currency trading and market maker company.

Futures contract

futuresfutures tradingfutures contracts
Foreign exchange futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are traded more than to most other futures contracts.
Foreign exchange market – see Currency future

High-frequency trading

high-frequency tradershigh frequency tradingHFT
The increase in turnover is due to a number of factors: the growing importance of foreign exchange as an asset class, the increased trading activity of high-frequency traders, and the emergence of retail investors as an important market segment.
Statistical arbitrage at high frequencies is actively used in all liquid securities, including equities, bonds, futures, foreign exchange, etc. Such strategies may also involve classical arbitrage strategies, such as covered interest rate parity in the foreign exchange market, which gives a relationship between the prices of a domestic bond, a bond denominated in a foreign currency, the spot price of the currency, and the price of a forward contract on the currency.

Carry (investment)

carry tradecarrycarry trades
It also supports direct speculation and evaluation relative to the value of currencies and the carry trade speculation, based on the differential interest rate between two currencies.
There is some substantial mathematical evidence in macroeconomics that larger economies have more immunity to the disruptive aspects of the carry trade mainly due to the sheer quantity of their existing currency compared to the limited amount used for FOREX carry trades, but the collapse of the carry trade in 2008 is often blamed within Japan for a rapid appreciation of the yen.

Foreign exchange fraud

forex scamillegal currency exchange
Retail brokers, while largely controlled and regulated in the US by the Commodity Futures Trading Commission and National Futures Association, have previously been subjected to periodic foreign exchange fraud.
Foreign exchange fraud is any trading scheme used to defraud traders by convincing them that they can expect to gain a high profit by trading in the foreign exchange market.