What is a foreign exchange market? | Blog UE (2024)

Definition of a foreign exchange market

At its core, a foreign exchange market is a global decentralised or over-the-counter (OTC) marketplace where participants trade currencies. In simpler terms, it's the place where one country's currency is exchanged for another's. This market operates 24 hours a day, five days a week, allowing for continuous trading across different time zones.

The primary purpose of the foreign exchange market is to facilitate international trade and investment. When businesses and individuals engage in international transactions, they often need to exchange one currency for another. This market enables them to do so, ensuring the smooth flow of goods, services, and capital across borders.

What is a foreign exchange market? | Blog UE (2024)
Top Articles
Latest Posts
Article information

Author: Amb. Frankie Simonis

Last Updated:

Views: 5377

Rating: 4.6 / 5 (76 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Amb. Frankie Simonis

Birthday: 1998-02-19

Address: 64841 Delmar Isle, North Wiley, OR 74073

Phone: +17844167847676

Job: Forward IT Agent

Hobby: LARPing, Kitesurfing, Sewing, Digital arts, Sand art, Gardening, Dance

Introduction: My name is Amb. Frankie Simonis, I am a hilarious, enchanting, energetic, cooperative, innocent, cute, joyous person who loves writing and wants to share my knowledge and understanding with you.