Foreign Exchange Market

Foreign Exchange Market Meaning:
In foreign exchange terminology, the foreign exchange market is the forum in which participants buy and sell currencies against each other. Participants include central banks, commercial and investment banks, corporations, fund managers, hedge funds and personal forex traders.

The foreign exchange market is the largest and perhaps the most efficient financial market in the world, offering exceptional liquidity and depth to its participants. Also, some of those trading in the foreign exchange market wish to protect against currency fluctuations, while others prefer to speculate on them.