The DEFINITION of 'Foreign Exchange Market'
The market in which participants are able to buy, sell, exchange
and speculate on currencies. Foreign exchange markets are made up of banks,
commercial companies, central banks, investment management firms, hedge funds,
and retail forex brokers and investors. The forex market is considered to be
the largest financial market in the world.
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INVESTOPEDIA EXPLAINS 'Foreign Exchange Market
Because the currency markets are large and liquid, they are
believed to be the most efficient financial markets. It is important to realize
that the foreign exchange market is not a single exchange, but is constructed
of a global network of computers that connects participants from all parts of
the world.
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