Back to Home
FX
(Foreign Exchange)
FX (Foreign Exchange) refers to the global marketplace for trading national currencies, with $7.5 trillion daily volume (2022 BIS survey). The decentralized market operates 24/5 through banks, brokers, and electronic networks like SWIFT.
Major pairs (EUR/USD, USD/JPY) account for 75% of volume. FX impacts international trade, corporate earnings (see ADRs), and tourism. Central banks like the Fed and ECB intervene to stabilize currencies. Retail FX trading grew 300% since 2020 but remains risky - 70-90% lose money. Key factors: interest rate differentials (carry trade), GDP growth, and political stability. The USD comprises 88% of all FX transactions as the global reserve currency.
Major pairs (EUR/USD, USD/JPY) account for 75% of volume. FX impacts international trade, corporate earnings (see ADRs), and tourism. Central banks like the Fed and ECB intervene to stabilize currencies. Retail FX trading grew 300% since 2020 but remains risky - 70-90% lose money. Key factors: interest rate differentials (carry trade), GDP growth, and political stability. The USD comprises 88% of all FX transactions as the global reserve currency.