Foreign exchange is the largest financial market in the world. It is estimated that $3.2 trillion global average daily volume is traded across the world every day.
Decentralised Market
Unlike the equity or futures market, the forex market does not have a centralised exchange. Trading the forex market does not involve an exchange and is usually traded in over-the-counter market where buyers and sellers conduct currency transactions. Check out online sources and get information about top crypto decentralized exchanges available online.
Around-the-Clock 24 Hr Market
Forex market is opened 24 hour a day (about 6 days a week) where people from different time zones can participate.
Instant Liquidity
Trading the forex market is most liquid throughout the day. In other words, you can buy and sell currencies almost instantly whenever you want to. This liquidity provides investors and traders minimal risk because they can exit their investments as and when they want to without the possibility of not finding a potential buyer or seller for their transactions. Transactions Occurring in the Forex Market
Commercial Transactions
Building developers purchase raw material such as mineral ores from Australia and trading companies will import products from abroad and export out to other countries.
Both of these transactions require that the company first sell their currency in exchange for the foreign currency to purchase their products. Subsequently, exporting goods will mean that companies accept foreign currency in exchange for their goods. Thereafter, converting profits back to home currency.
