The foreign exchange (FX) market is the world’s biggest over-the-counter or OTC market, trading a daily average of USD 6.6 trillion. FX turnover is more than 80 times the volume of international trade, which is accounted for by currency hedging and speculation.
Key learning objectives:
How big is the FX market and what are the major trading centres?
What are the main currencies used in the FX market?
Why are FX volumes so high? Explain what happens when a company hedges an FX transaction