What is Foreign Exchange Market?

Foreign Exchange Trading (also known as Forex or FX) is the largest financial market in the world. It It refers to the global OTC market of the buying and selling of world currencies from traders, investment, institutions and banks.

The foreign exchange market is a "spot exchange" market (also known as the spot market). The two sides of the transaction are carried out through telephone and electronic trading systems, rather than on specified trading institution. The time difference will closely link the business hours of foreign exchange exchanges in different regions, making the trading uninterrupted.

Transactions are conducted through the "interbank market", an online channel through which currencies are traded 24 hours a day and 5 days a week. The foreign exchange market is one of the largest trading markets, with an estimated daily trading volume of more than US $5 trillion.

National Currency Exchange

Foreign exchange transaction is the exchange of one country's currency with another. Unlike other financial markets, the foreign exchange market does not have a specific location or a central exchange centre. Instead, it is formed through electronic networks between banks, enterprises and individuals. "Foreign exchange trading" is to buy one currency in a pair of currencies and sell another at the same time. Foreign exchange is traded in currency pairs, such as EUR / USD or USD / JPY.

Country Transaction Currency and Code

Currency Code Symbol
US Dollar USD $
Euro EUR € 
Japanese Yen JPY ¥
British Pound GBP £
Australian Dollar AUD $
Canadian Dollar CAD $
Swiss Franc CHF Fr
Danish Krone DKK Kr
Indonesian Rupiah IDR Rp
Israelu New Shekel ILS ₪ 
United Arab Emirates Dirham AED د.إ 
Malaysian Ringgit MYR RM
China Renmenbi CNY ¥
Hong Kong Dollar HKD $
New Zealand Dollar NZD $
Swedish Krona SEK kr
Korean Won KRW
Singapore Dollar SGD $
Norwegian Krone NOK kr
Polish Zloty PLN
Hungarian Florint HUF Ft
Chilean Peso CLP CLP$ 
Colombian Peso COP COL$
Romanian Leu RON L
Mexican Peso MXN $
Indian Rupee INR
Russian Ruble RUB
South Africa Rand ZAR R
Turkish Lira TRY
Brazillain Real BRL R $
Taiwan Dollar TWD NT $
Thai Bath THB ฿
Czech Koruna CZK
Philippine Peso PHP
Saudi Riyal SAR