Välisvaluutaturu

Välisvaluutaturu, also known as the foreign exchange market or forex market, is a global decentralized or over-the-counter market that determines the exchange rates for all currencies. It is the largest and most liquid financial market in the world, with trillions of dollars traded daily. This market facilitates international trade and investment by allowing businesses and individuals to convert one currency into another. Participants in the välisvaluutaturu include central banks, commercial banks, investment firms, hedge funds, and individual traders.

The välisvaluutaturu operates 24 hours a day, five days a week, with trading centers in major financial hubs like London, New York, Tokyo, and Sydney. The price of a currency is determined by supply and demand, which are influenced by a multitude of factors, including economic indicators, political stability, interest rates, and market sentiment. Major currency pairs, such as EUR/USD (Euro vs. US Dollar) and USD/JPY (US Dollar vs. Japanese Yen), are the most actively traded.

The primary functions of the välisvaluutaturu are to facilitate currency conversion, provide hedging opportunities against currency risk, and enable speculation on currency price movements. While it offers significant opportunities for profit, it also carries substantial risks due to its volatility and leverage.