Introduction:
The FOREX (foreign exchange) market or
currency market is the market where the currencies are traded abroad. It
consists of a large number of agents around the world who buy and sell
currencies of different nations, thus allowing the realization of any
international transaction. This trade consists of a set of agents,
buyers and sellers of foreign currency, who are in different locations
around the world and communicate by use of the mobile phone network,
internet or other media technologies.
The FOREX trade market is a
mechanism that allows, an impersonal and efficient way, to purchase
foreign currency. This, in turn, facilitates international trade,
because it transfers purchasing power from one currency to another, so
agents from a country can buy, sell and establish other business
relations with the agents of other nations. So, the exchange market
includes exporters, importers, domestic tourists abroad, foreign
tourists in a country, investors, and so on.
