The global currency market also known as Forex or FX is the largest financial market in the world with a turnover of over U.S. $ 5 trillion (USD), which makes it the most liquid financial market in the world.
Forex started in 1971, when the exchange rate changed from the fixed model to the floating exchange rate model, however took a much larger scale with the internet entry and the possibility to operate online as well as the access to relevant information. The Forex market is not only the world’s largest financial market, but also the most active, and we can operate on it 24 hours during the five days per week, so it is regarded as the more globalized market nowadays.
All transactions that we do in Forex are related to currency pairs, where the sale of a currency is subject to the purchase of another one at the same time and vice versa. It is important to say that FX can generate profits and returns regardless to the behavior in global´s or local´s markets (bullish trend or bearish trend) due to the flexibility of the FX market. Allowing us to take advantage of any market movement.
The Forex also plays a key role at the macroeconomic level related to the determination of global exchange rates. Because the exchange rate among a currency pair is set primarily by the interaction of private and public entities for that currency pair. Important to remember is that all currencies are traded in pairs.