The World of the Foreign Exchange Market Today

The FX Trading market of today is a truly global, 24-hour trading zone; the bulk of currency trading amongst currency dealers takes place in London, with New York coming second and Japan in third position. The only time when currencies are not trading is after Japan closes for business on Friday, a one-day window exists before Europe opens for business on Monday morning. Currency dealers, independent broker dealer and companies that buy and sell foreign currency as a part of their normal business activities make up a very small percentage of FX trading. Investment companies, banks and brokerages, undertake the majority of this speculative activity. The Forex market is one that is still growing and developing as more traders discover its potential for earning and raising capital. The daily turnover it currently experiences makes it 30 times larger than any other US market.

The foreign exchange market of today is one of the most volatile yet lucrative markets, there are various factors that influence and change the exchange rates including social, political and economical factors. Many additional service providers have grown and developed from the enhancement of FX trading.