The foreign exchange market - a quick overview
In simple terms, the foreign exchange market (also known as 'FX', 'forex' and 'currency market')' is about exchanging one currency for another. The foreign exchange market is considered to be the largest financial market in the world with recent data revealing that trading in the foreign exchange market averaged US $5.3 trillion per day in April 2013.
The FX market is made up of many different counterparts - central banks, banks, investment firms, commercial companies, hedge funds, investors and non-bank providers like OFX. The large, international banks are, however, the main participants of the market.
The foreign exchange market may appear to be a daunting and confusing subject, however it doesn't need to be. We've put together this Forex Glossary to try and help you better understand the FX market - the key currencies that exist, a glossary full of industry terms, a section on some key terms/ acronyms and other information about the market.