Foreign Exchanging Market

Foreign exchanging market or foreign exchange market (forex, fx, currency market) is a worldwide OTC financial market for the trading of currencies. 

Currencies are being brought or sold everyday in the foreign exchanging market making it one of the largest market of the world in trading value.

Currency is the medium of exchange used throughout the world. Exchange rate are used to define the rate a currency can be exchange from and to another currency. The price of the foreign exchanging market can be determine by the fixed or floating rate.

In the past world once used the gold standard, which peg or fixed a set exchange rate relating to gold value. Nowadays floating rate is being used globally, where exchange rate are determined by the supply and demand of the market. Regardless of the foreign exchanging market system, the currency can never be completely fixed or float in the market as there are alway interference from different factors in the world economy.

Foreign exchanging market is naturally unstable and can be influence by any factors in the world that effect the human feelings, whether it is the central bank trying to increase interest rate to reduce inflation or the occurring of natural disaster causing uncertainty to investors.