Foreign exchange market

Acronym: FX
A global distributed market for the trading of currencies. It provides the platform through which the money of one country is exchanged for that of another country and the rate of exchange between currencies is determined. The major players in the Forex Market are banks, commercial companies, central banks, investment management firms, hedge funds and retail forex brokers and investors. The foreign exchange market assists international trade and investment by enabling currency conversion. The foreign exchange market is unique in terms of its huge trading volume representing the largest asset class in the world leading to high liquidity.