Foreign Exchange Market Features

Foreign exchange market is the market where the currency of one country is exchanged for the currency of another country. In other words it is a market where currencies are bought and sold just like equity shares are bought and sold in equity markets. Given below are some of the main features of foreign exchange market –

1. Foreign exchange market is the only market which is open 24 hours a day, except for weekends unlike equity or commodities market which are open only for few hours.

2. Volume of transactions which are executed in foreign exchange market is extremely huge because of many big players in foreign exchange market. Foreign exchange markets are more liquid than any other market because of this reason.

3. Foreign Exchange Market are present in every country and therefore geographically they are located everywhere in the world, which makes them quite unique.

4. Foreign exchange markets are the most difficult market to trade in as the exchange rates of countries are affected by so many factors like interest rates, liquidity, geo political factor and so on.

5. Foreign exchange market is a big player market, because mostly it is the big banks and government who are the players in foreign exchange market.

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