Välisvahetust

Välisvahetust, also known as foreign exchange or forex, refers to the global marketplace where currencies are traded. It is the largest and most liquid financial market in the world, with trillions of dollars worth of transactions occurring daily. The primary purpose of the forex market is to facilitate the exchange of currencies for international trade and investment.

In the forex market, currencies are traded in pairs, such as EUR/USD or GBP/JPY. The first currency in the pair is called the base currency, and the second is the quote currency. The exchange rate indicates how much of the quote currency is needed to purchase one unit of the base currency. For example, if the EUR/USD rate is 1.20, it means that 1 Euro is equivalent to 1.20 US Dollars.

The value of currencies in the forex market is influenced by various factors, including economic indicators, political events, and market sentiment. Central banks also play a significant role in the forex market through their monetary policies, which can impact currency values and exchange rates.

Participants in the forex market include central banks, commercial banks, investment firms, multinational corporations, and individual investors. The market operates 24 hours a day, five days a week, across different time zones, allowing for continuous trading and price discovery.

Forex trading can be speculative, with traders aiming to profit from changes in exchange rates. However, it also serves a critical function in enabling businesses and individuals to convert currencies for international transactions. Understanding the basics of välisvahetust is essential for anyone involved in international trade, investment, or travel.