Forex or foreign exchange is a global decentralized market where currencies are traded. It is the largest financial market in the world, where trillions of dollars are exchanged daily. The forex market operates 24 hours a day, five days a week, and is open to anyone who wishes to trade currencies. It is a dynamic and volatile market that is influenced by various economic, political, and social factors. In this article, we will explore how much currency runs through forex per day.
According to the Bank for International Settlements (BIS), the forex market has an average daily turnover of $6.6 trillion. This turnover includes all currency transactions, including spot transactions, forwards, swaps, and options. It is important to note that this figure is an estimate and may vary based on market conditions.
The forex market is the most liquid financial market globally, with currencies being traded in large volumes. The most actively traded currency pairs are the EUR/USD, USD/JPY, GBP/USD, and USD/CHF. These pairs account for more than 70% of the daily turnover in the forex market.
The forex market is accessible to a wide range of participants, including retail traders, institutional investors, banks, and central banks. Retail traders and institutional investors trade currencies for speculative purposes or to hedge against currency risk. Banks and central banks, on the other hand, trade currencies to manage their foreign currency reserves, facilitate international trade, and stabilize their domestic currencies.
The forex market is open 24 hours a day, five days a week, with trading sessions in different time zones around the world. The Tokyo session, which opens at 7 pm EST, is followed by the London session at 3 am EST, and finally the New York session at 8 am EST. The overlapping of these sessions creates the most active trading hours in the forex market.
The forex market is a highly competitive market, with many participants vying for profits. The market is driven by various factors such as economic indicators, political events, and market sentiment. Traders use technical and fundamental analysis to make trading decisions and manage their risk.
In conclusion, the forex market is the largest financial market globally, with an average daily turnover of $6.6 trillion. The market is open 24 hours a day, five days a week, and is accessible to a wide range of participants. The forex market is driven by various factors such as economic indicators, political events, and market sentiment. Trading in the forex market involves significant risks, and traders should educate themselves before investing their money.