foreign exchange market

(redirected from Forex market)
Also found in: Dictionary.
Related to Forex market: Forex Trading

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 ?
Before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience and risk appetite.
The wholesale Secondary Market Intervention Sales (SMIS), of the inter-bank Forex market, saw it auctioning $100m and also intervening in the Small and Medium Enterprises (SMEs) and invisible segments, with the amount of $50 million and $45million respectively.
Investment need to be made in Forex market after acquiring knowledge about market condition.
The HotForex App features daily market analysis, a traders' board, client positions, Forex market news, live quotes on forex, commodities, stocks and indices, and trading calculators.
The apex bank is expected to keep its key interest rate at 11 percent per annum due to volatility on the forex markets traditional for December-January period, Alexander Kalinin, president of OPORA-Russia, said on Wednesday.
Fortress Prime, which launched its operations in the month of September, 2014 expects to enhance its profitability and strengthen its balance sheet during the first quarter of 2015 due to continued growth in its forex trading client base in combination withhighertrading volume as a result of increase in forex market volatility.
6bn in November 2014 by the UK, US and Swiss authorities after they were found guilty of trying to rig the forex market for a number of years.
3 trillion daily global forex market which has been growing in double digits year over year since 2004, says Fortress Prime, a leading clearing house in the Middle East and Asia and an international provider of institutional trading liquidity.
In the UK, the Serious Fraud Office (SFO) and the Financial Conduct Authority (FCA) have both launched investigations into the alleged manipulation of the PS3trillion-a-day forex market.
The Forex market was closed on Friday, August 15, on account of "Independence Day".
Other regulators around the world are scrutinising firms over the potential manipulation of the PS3 trillion-aday forex market.
e Financial Conduct Authority (FCA) said in October it had joined other regulators around the world in scrutinising rms over the potential manipulation of the PS3 trillion-a-day forex market.