foreign exchange market

(redirected from Forex brokerage)
Also found in: Dictionary.

Foreign exchange market

Largely banks that serve firms and consumers who may wish to buy or sell various currencies.

Foreign Exchange Market

A market for the trading of currencies. For example, one may buy dollars or sell pounds on a forex market. Foreign exchange is one the largest and most liquid markets in the world. Trading occurs over-the-counter, and most of the major players are governments, banks, and speculators. Forex markets are often used in hedging strategies.

foreign exchange market

a MARKET engaged in the buying and selling of FOREIGN CURRENCIES. Such a market is required because each country involved in INTERNATIONAL TRADE and investment has its own domestic currency and this needs to be exchanged for other currencies in order to finance trade and capital transactions. This function is undertaken by a network of private foreign exchange dealers and a country's monetary authorities acting through its central banks.

The foreign exchange market by its very nature is multinational in scope. The leading centres for foreign exchange dealings are London, New York and Tokyo.

Foreign currencies can be transacted on a ‘spot'basis for immediate delivery (see SPOT MARKET), or can be bought and sold for future delivery (see FORWARD MARKET). Some two-thirds of London's foreign exchange dealings in 2000 were spot transactions.

The foreign exchange market may be left unregulated by governments, with EXCHANGE RATES between currencies being determined by the free interplay of the forces of demand and supply (see FLOATING EXCHANGE RATE SYSTEM), or they may be subjected to support buying and selling by countries' central banks in order to fix them at particular rates (see FIXED EXCHANGE RATE SYSTEM).

foreign exchange market

a MARKET engaged in the buying and selling of FOREIGN CURRENCIES. Such a market is required because each country involved in INTERNATIONAL TRADE and FOREIGN INVESTMENT has its own domestic currency, and this needs to be exchanged for other currencies in order to finance trade and capital transactions. This function is undertaken by a network of private foreign exchange dealers and a country's monetary authorities acting through its central banks.

The foreign exchange market, by its very nature, is multinational in scope. The leading centres for foreign exchange dealings are London, New York and Tokyo.

Foreign currencies can be transacted on a ‘spot’ basis for immediate delivery (see SPOT MARKET) or can be bought and sold for future delivery (see FUTURES MARKET). Some two-thirds of London's foreign exchange dealings in 2004 were spot transactions.

The foreign exchange market may be left unregulated by governments, with EXCHANGE RATES between currencies being determined by the free interplay of the forces of demand and supply (see FLOATING EXCHANGE RATE SYSTEM), or they may be subjected to support-buying and selling by countries’ CENTRAL BANKS in order to fix them at particular rates. See FIXED EXCHANGE RATE SYSTEM, TOBIN TAX.

References in periodicals archive ?
Capital Trust Markets is an online Forex brokerage firm, headquartered in New Zealand.
Since FXCM already had $150 million on the balance sheet, it now has about $200 million in cash, which is no small amount in the retail forex brokerage industry.
ADS Securities, a leading forex brokerage in the Middle East, said it has started trading the USDCHN currency pair (US Dollar/ Chinese Renminbi).
FXOpen is one of the Forex brokerage companies having the lead in the industry.
Registered in New Zealand, FXOptimax is an STP/Non Dealing Desk international Forex brokerage company dedicated to providing excellent online Forex trading services and exceptional trading conditions.
FXOpen, one of the leading forex brokerage companies, will participate and act as the exclusive main sponsor at an upcoming major forex and investment summit in Abu Dhabi.
8220;Ask an expert” feature enables traders to receive free answers to questions about any aspect of the trading industry from Forex-Metal's highly professional staff, experienced in different spheres of forex brokerage business.
FX Solutions has been focusing exclusively on delivering excellent Forex brokerage services, including accurate price discovery, platform stability and customer service since its founding in 2001.
Forex4you, a leading in online Forex brokerage firm, has taken into account most of the problems created due to strict conditions of online Forex accounts.
This recognition marks the second time in two weeks IBFX has been honored as a top Forex brokerage and serves as the culminating event of a record-breaking year for the company.
His new job assignment extends to creating and designing new and potential foreign exchange products to meet the escalating demands for foreign exchange investment opportunities and to support the new trading service of the firm, the Forex Brokerage Trading Service Division of the firm.