forexmarkkinat

Forexmarkkinat, also known as the foreign exchange market or FX market, is the global decentralized or over-the-counter market where currencies are traded. It is the largest and most liquid financial market in the world, with an average daily trading volume exceeding $6 trillion. Participants in the forex market include central banks, commercial banks, investment firms, hedge funds, and individual traders. The primary function of the forex market is to facilitate international trade and investment by enabling the conversion of one currency into another.

Currencies are traded in pairs, such as EUR/USD (Euro against US Dollar) or GBP/JPY (British Pound against Japanese Yen). The price of a currency pair is determined by supply and demand, influenced by various economic and political factors. These factors include interest rates, inflation, political stability, economic growth, and trade balances of the respective countries. Major currency pairs, often referred to as "majors," involve the US Dollar and are the most actively traded.

Forex trading allows participants to speculate on the future direction of currency movements. Traders aim to profit from the difference between the buying and selling prices of currency pairs. The market operates 24 hours a day, five days a week, from Sunday evening to Friday evening, with trading centers in Sydney, Tokyo, London, and New York. This continuous operation provides ample opportunities for trading across different time zones. Leverage is commonly used in forex trading, which magnifies both potential profits and losses.