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The Foreign Exchange markets,
also known as Forex, are the largest trading markets in the world. With
over $3 trillion exchanged everyday even getting a small fraction of the
market could mean big profits. So it's a big deal and has lots of
action.
The foreign exchange (currency or forex or FX)
market refers to the market for currencies. Transactions in this market
typically involve one party purchasing a quantity of one currency in
exchange for paying a quantity of another.
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The FX market is the largest and
most liquid financial market in the world, and includes trading between
large banks, central banks, currency speculators, corporations,
governments, and other institutions. The average daily volume in the
global forex and related markets is continously growing and was last
reported to be over US$ 4 trillion in April 2007 by the Bank for
International Settlement.
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