What is a forex market Flashcards
(11 cards)
What is the currency market also known as?
The foreign exchange market (Forex or FX).
How often does the forex market operate?
24 hours a day, 5 days a week.
What is traded in the currency market?
Currency pairs
What are the main purposes of the currency market?
Facilitating trade, currency conversion, hedging, and speculation.
Who participates in the forex market?
Central banks, commercial banks, corporations, hedge funds, and retail traders.
What are major currency pairs?
Pairs involving USD
What is a pip in forex trading?
pipette
What is the spot forex market?
A market for immediate exchange of currencies at current prices.
What is a forward contract in forex?
An agreement to exchange currencies at a set rate on a future date.
Why is the currency market important globally?
It enables global trade, investment, and economic stability by managing currency risks.
What is a futures contract in forex trading?
A standardized agreement to buy or sell a specific currency at a predetermined price on a set future date
