FOREIGN EXCHANGE MARKET The foreign exchange market, or FX as it is widely known, is the largest trading market in the world by volume.
An Introduction to the
Foreign Exchange Market The foreign exchange rate is determined by this market and it is where all transactions involving the exchanging of currencies take place.
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Thibaut De Roux
CURRENCY CONVERSION
The FX market and the wider financial sector is in the process of being altered irreparably and permanently by the introduction of blockchain technology.
International investments and trade are assisted by the FX market as it enables currency conversion. Typical transactions involve one party purchasing a specific quantity of a currency using a relevant quantity of another currency. As an example, this means that a business in one country can import goods from another country, even where the importing business operates using a different currency to the exporter.
EXCHANGE RATES Exchange rates are set based on activity within the FX market and are dependent on a number of factors. These include relative purchasing power parity, asset prices and balance of payment models. The FX market operates a floating exchange rate, unlike a fixed exchange rate which is set by the relevant government.
Thibaut De Roux
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