The Foreign exchange market is the largest and most liquid market in the world. Daily trading volume is estimated at $1.9 trillion a day.
It is the global market where currencies are bought and sold in exchange for one another in a 24-hour over-the-counter market by individuals, companies, securities firms, and central banks, all of which deal with the foreign exchange traders or "market makers" at commercial banks.
The liquidity of the market stems from the readiness of such banks to trade with other banks as well as with non-banks. Over 95 per cent of trading occurs between the banks themselves as they continuously adjust and readjust their positions. Foreign exchange traders must anticipate changes in value by buying and selling currencies for future (forward) or immediate (spot) delivery. The market rates that companies face in doing international business change each time news or expectations of future events alter the outlook for a currency.
Every currency transaction involves a pair of currencies (eg. USD/CAD). The top five traded currencies are the USD,CHF, JPY,EUR and GBP. The USD is the most actively traded currency in world.
Exchange rates are determined by many factors including, but not limited to, supply and demand, inflation, interest rates, speculation, capital flows, merchandise trade, yield differentials, money supply, and government budget deficits/surpluses.
Axiom Foreign Exchange International is your trusted source in the foreign exchange market. Utilize our expertise and experience as a foreign exchange broker, to assist your company with your international currency requirements so you are making informed foreign exchange decisions in a very complex market.