Forex is a portmanteau of foreign currency and exchange. Foreign exchange is the process of changing one currency into another currency for a variety of reasons, usually for commerce, trading, or tourism. According to a recent triennial report from the Bank for International Settlements (a global bank for national central banks), the average was more than $5.1 trillion in daily forex trading volume. Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the largest and most liquid asset markets in the world. Market participants use forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among several other reasons.
Forex, short for foreign exchange, refers to the process of converting one currency into another for various purposes, including commerce, trading, and tourism. As a result of its worldwide reach, forex is one of the largest and most liquid financial markets globally. According to a recent triennial report from the Bank for International Settlements (the global bank for national central banks), the daily forex trading volume exceeds $5.1 trillion. This immense activity is driven by the interconnected nature of global trade, finance, and investment.
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