Forex

The stock markets and bond markets of the world have a physical existence. If you wanted to visit the New York Stock Exchange or the London Stock Exchange, there would be a historic building that you would end up visiting. However, this is not the case with Forex Markets. Forex Markets do not have any physical existence. This means that there is no building anywhere in the world where Forex dealers are located and have designated the place to be the Forex Market.

Instead, the Forex market is made up of money changers all over the world. The market is interconnected via means of information. Earlier, the information was transmitted manually, now the information is transmitted via electronic means. Therefore, the currency dealer in your neighborhood as well as in a far off place like Mexico City together all constitute the Forex Market. The Forex market therefore constitutes an interconnected network of buyers and sellers. The Forex market is by far the largest market in the world. The daily transaction volume in the Forex market is over $4 trillion. This massive amount of money does not change hands even if we consider the imports and exports of the entire world for an entire year!.