Indeed, foreign exchange market is the biggest financial market in the world. As a matter of fact, the market for currencies is several times greater than the stock market.

The forex or foreign currency exchange market is the place where one country’s currency is exchanged for another country’s currency.

It has several different attributes that may come as a astonishment for novel traders. Read this article till the end to find out answers to your queries.

What Is Currency exchange rate and how it drives the currency trading market?

A currency exchange rate is the value paid for one currency in exchange for another and the rate, on which this exchange is done, actually drives the forex market.

All most all the countries in the entire globe deal in currency trading in some or the other way.

But….not all can do the trading.

Then, Who Trades in foreign currency?

There are several players in the forex or foreign currency trading market that time to time sell and buy currency.

To name a few, here is a small list of major players that play this game on higher level:

  • Banks
  • Central Banks
  • Investment Managers and Hedge Funds
  • Corporations
  • Individual Investors

How Foreign currency TRADING Shapes A Business?

The resulting cooperation of the several types of forex dealers is an extremely liquid, global market that influences business round the world.

Exchange rate motions are one factor in inflation, global commercial earnings and the total amount of payments consideration for every single country.

Click on this link to find out more about how the trading is done of currency within two different countries.

Bottom Line

There’s a reason forex is the major market on earth – it empowers everyone from central finance institutions to retail buyers to possibly see gains from money fluctuations related to the global market.

There are many strategies you can use to operate and hedge currencies, including the take trade, which illustrates how forex players impact the global overall economy.

Overall, traders can reap the benefits of knowing who deals forex and just why they certainly so.