Foreign exchange market - Financial definition
Financial acronyms
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Concise definition of the term foreign exchange market
The foreign exchange market is the place where market participants buy and sell currencies.
Comprehensive definition of the term foreign exchange market
In contrast to stock exchanges and other trading venues, which do possess a geographic location, the currency market is entirely global and decentralised, even if some financial centres like London, New York, Tokyo or Paris are of particular importance.
The participants in the foreign exchange markets are diverse: banks, central banks, big corporations, asset managers, hedge funds, brokers, investors …. In terms of volume traded, the foreign exchange market is by far the biggest financial market in the world. Thanks to its decentralised structure, it allows currency trading around the clock five days a week, i.e. from Sunday 10 pm GMT to Friday 10 pm GMT.