A foreign exchange market assist businesses change one currency to a different. To consider the market of forex I illustrate an example, suppose it consents a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
The market of foreign exchange is of unique because of
-its trading volumes,
-the use of leverage
-its geographical dispersion,
-the low margins of profit compared with other markets of fixed income
-the variety of factors that affect exchange rates
-its long trading hours: 24 hours a day except on weekends
-the extreme liquidity of the market,
If you have any experience for trading in forex then you must have by now be acquainted with that occasionally the big dogs are making your game as their huge assets and savings are incessantly moving the market up and down, opening new chances for the small traders with good know-how.
According to an authentic resource it is taken as an average that about 3.98 trillion dollar turn over is appear in the market of foreign exchange. It is considered as the most manipulated way of business and many big labels are dying to compete in the market of foreign exchange.
The foreign exchange market is the chief and most liquid financial market in the world. Traders include central banks, large banks, corporations, governments, currency speculators and some other financial institutions. The growth of the liquidity of foreign exchange market is daily increasing. The number one currency traders include Duetsche Bank of Germany holding 20.96 percent share. It is followed by UBS AG of Denmark with a share of 14.58%.
The currency which is most liquid in the foreign exchange is U.S dollar which is about 86% and it is followed by euro about 37% and on third number Japanese Yen 17%.
The foreign exchange market is a good place to invest even if you are individual, not have big share and any other reason but the main thing required is the concentration when trading and investing.