Forex trading is nothing but a foreign exchange market which is a world wide market, rather a financial market which deals with the trading of currencies. There are many financial centers all around the world who deal with buyers and sellers for 5 days a week for the exchange of money. The main aim and purpose of this foreign exchange financial market it that of assisting the international trading and investment. It is a real boon as people can purchase goods in one currency and can pay in another type of currency. There are a few features of the forex, or the foreign exchange which makes it unique.
• It is a very big trading volume
• It leads to high liquidity
• It has excellent geographical dispersion
• The work here continues for 24 hours for 5 days of the week.
• It also makes a mark because of the variety of factors which affect the rate of exchange.
• It has also gained prominence because of the low margins of relative profit when compared to the markets of fixed income.
And because of all these many factors it is said to be a market of perfect competition as it does not with stand any kind of currency intervention by the central banks.