The Forex Market, popularly known as the foreign exchange market, is a globally spread market for the purpose currency trading. Its a global platform where financial centre from all over the world works as representatives to trade for a wide range of buyers and suppliers from different backgrounds. The main work Foreign exchange market is to determine the comparative value of currencies of different countries with the purpose of supporting trade and investment at international level. In order to promote international trade and investment, it allows financial institutes from different countries in conversion of a countrys currency into other. The currencies are converted keeping in regard with the currency rate, on that particular day, in which they are ultimately going to convert.
Established in 1971, the Forex Market flourished when global trade turned dynamic from fixed exchange rates. In Forex Market, currencies are trading takes place in pairs, which means when you buy one currency, at that same time you sell one currency. It is kind of exchange of currencies that takes place between the traders of two different countries. It serves as an over-counter-counter market where there is no physical form of trading floor. It can be done over the telephone or via any other electronic medium without any meeting place. The foreign exchange market ensures stability to the traders saving them from the downfall in financial securities. The Forex Market remains constant without any rise or fall in the financial market.
There are certain positive aspects of Forex market which lure traders towards it. The most important is the liquidity factor. It offers huge trading volume giving it a high liquidity, which means assets can be quickly converted into cash here. Another factor is that Forex market is globally spread, thus proving the option of trading round the clock. Its financial institutes are dispersed all over the world to provide their services. It operate continuously for 24 hours making it easy and beneficial for the businessmen to trade all the time. Besides, Forex Market enjoys high market and global value without charging the service charge from its customers. Moreover, the Forex Market provides very flexible exchange rates resulting into a large no. of transactions everyday. It provides a deal, which is way ahead beneficial deals in business that has no comparison with any other fianc institute. So there is no better choice than the Forex Market if you are venturing into foreign trade.