foreign exchange market Finance Definition
The worlds largest and most liquid financial market,
which operates 24 hours a day, 365 days a year. Turnover in the foreign
exchange market, where one countrys currency is traded for another, is
estimated to be about $1.5 trillion a day. Trades may be con-
ducted over computer or Internet-based trading systems, over the phone directly with a bank, or with a broker. A limited amount of trading is conducted on futures markets such as the Chicago Mercantile Exchange. Four main currencies, representing the worlds largest economies, are traded against the U.S. dollar: the British pound, or sterling, (GBP); the Swiss franc (CHF); the euro (EUR); and the Japanese yen (JPY). These currencies, along with many minor ones, are traded by governments, corporations, fund managers, and speculators.
ducted over computer or Internet-based trading systems, over the phone directly with a bank, or with a broker. A limited amount of trading is conducted on futures markets such as the Chicago Mercantile Exchange. Four main currencies, representing the worlds largest economies, are traded against the U.S. dollar: the British pound, or sterling, (GBP); the Swiss franc (CHF); the euro (EUR); and the Japanese yen (JPY). These currencies, along with many minor ones, are traded by governments, corporations, fund managers, and speculators.
Browse dictionary entries near foreign exchange market
Print this Page
Suggestion Box
Send to Friend
