Market Overview

CHART AND NEWS

The foreign exchange market exists in a place where currencies are traded. Many of you may not be aware but in terms of the value of cash traded; this market is considered to be the biggest market worldwide. This includes the trading between currency traders, central banks, governments, international companies and the other financial institutions and markets. It is believed that the trade that takes place each day in this market all around the world is more than three trillion dollars.

As per a survey that was conducted in the year 2007, thirty percent of the transactions in the Forex market consisted of interbank transactions; twenty-three percent of the transactions were carried out between a non-financial organization and a dealer; and forty-three percent of the transactions were undertaken between a fund manager and a dealer.

You will find that when it comes to this kind of market there is no individual Forex market. It is because there are many currency markets that sell on the over-the-counter basis; you will find that there are several market places that are interrelated and here, the currencies are bought and sold.

The change or fluctuations in the rates of exchange are generally a result of the expected changes in flow of money and the actual flow of money and these are generally caused by the growth of GDP, rate of interest, inflation, etc.