Definitions

Interbank Currency Market

Posted By: TradersLog

Over 1 trillion dollars is traded daily (and nightly) in the 24 hour world spanning foreign exchange market. The majority of these transactions take place on the interbank currency market rather than on an exchange. The market provides a means for companies to hedge exchange risk against the fluctuations of currency values. However, speculators also participate in this market with a view to profiting from changing exchange rates.

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