| The short form of Foreign Exchange is FOREX. Even | | | | public, investors and traders because the minimum |
| it can be termed as FX. In 1971 the global trade was | | | | amount requirements for the account were beyond |
| shifted from fixed exchange rates to floating rates. | | | | the resources of average investor. Later the scenario |
| This change in the market has laid deep roots for the | | | | has changed and even and average investor could |
| emergence of FOREX trading. A simultaneous buying | | | | able to access the trade. |
| and selling of currencies of two different countries is | | | | Finally we can divide all the participants of the foreign |
| the main activity of FOREX. | | | | exchange market into 3 groups: |
| The main objective of foreign exchange market is to | | | | First group consists of individual traders, means the |
| help international trade and investment. FOREX | | | | general public who invest their own money using |
| market has more daily volume of buyers and sellers | | | | some brokerage to middlemen. Millions of individual |
| compared to any other market in the world. This has | | | | and independent traders come under this category. |
| made the FX market as an exciting trade to work | | | | Second groups constitutes banks and financial |
| with. | | | | institutions like Bank of America, Morgan Stanley, First |
| In the beginning FOREX was termed as interbank | | | | Boston, Goldman Sachs, HSBC, J.P Morgan, UBS |
| market as it was dominated by the banks and | | | | Warburg and Dean whiter etc., Banks and financial |
| financial institutions like central banks, commercial | | | | institutions move huge contracts among themselves |
| banks & investment banks. In the next stage | | | | making almost 50% of FOREX market. |
| wealthy investors and fortune 500 companies have | | | | Third group states about Fortune 500 companies, big |
| become a part of this trade. At this time this | | | | and middle level corporations, import /export |
| currency market was financially inaccessible to general | | | | companies etc. |