| Forex or foreign exchange is a growing industry in | | | | - the US dollar to the Japanese Yen |
| the economic market. Currencies are traded for | | | | When the Euro became the official currency of |
| another, thus making the foreign exchange | | | | the 12 of the 15 then members of the European |
| market the largest in terms of cash. Because of | | | | Union, it was pitted against the dollar. The Euro |
| trading between one bank to another, not to | | | | enjoyed periods of ups and downs in comparison |
| mention the trading between multinational | | | | to the American dollar. As of most recent news, |
| corporations and government, between financial | | | | the dollar declined to a low as opposed to the |
| markets and institutions, cash is abundant and | | | | Euro despite of the decline in the American deficit. |
| easily flows in foreign exchange trading. | | | | The fact that well-established and developed |
| Due to its various trading components (since | | | | countries have one currency as their official fiscal |
| there are a lot of foreign currencies in the | | | | trading component, the Euro gets stronger than |
| international market over-all), the liquidity or easy | | | | ever in the economic aspect. |
| cash flow of the market, huge bulk of traders | | | | It's not only the three forex capitals that play a |
| and a 24-7 service transaction, the foreign | | | | part in foreign exchange trading. Markets of other |
| exchange market is unique and is here to stay in | | | | economies are free to join. In fact, even their |
| the competitive world of business. | | | | banks have a role to play in the big economic |
| The foreign exchange market is not unified. There | | | | picture. Commercial turn overs and large trading |
| is no single dollar rate. Dollar rate varies from one | | | | are catered by international banks on a daily basis. |
| country to another, this is due to the | | | | Some of these banks trade their currencies for |
| over-the-counter or OTC transactions that is | | | | dollars. |
| practiced in most forex industries. There maybe | | | | Commercial companies also sought the assistance |
| different prices to a dollar, which is dependent on | | | | of the forex market to pay for the obtained |
| the bank, but generally, the rates are pretty | | | | goods and rendered services. Commercial |
| much close. | | | | companies may have smaller amounts of |
| The trading centers in Tokyo, New York and | | | | currency transactions as opposed to banks, but |
| London are the centers of foreign exchange | | | | these trades and exchanges among commercial |
| trading. However, all are interconnected. Tokyo | | | | companies are still necessary for the trading |
| may be the center for the Asian market, New | | | | market. For example, a multinational company |
| York for the US and London for Europe but | | | | that is based on various locations through out the |
| notice the chain of one to the other two. For | | | | world may have an impact in the economic |
| example, the US session ends, then the Europe | | | | picture as a whole when it stops participating in |
| session begins followed by the Asian. It is a cycle | | | | the trading market. This is the another example |
| and a change from one capital can affect the | | | | of the mentioned scenario: that one capital session |
| other two. | | | | can affect the other two, so does one |
| Foreign exchange can be considered as the | | | | multinational company in any location can affect |
| modern economists' barter exchange. A currency | | | | the forex trading as a whole. |
| of one economy can be traded to another. The | | | | Another example proving that countries are |
| most heavily traded currencies are that of: | | | | interconnected. One economy's gold is another |
| - the US dollar to the Euro | | | | economy's gain as well. |