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Finally, different currencies may be used by different trading markets for specific transactions. For example, an international bank may accept a customer's currency for deposit (which would usually be the customer's domestic currency); or a retailer may accept currency as payment for goods or services. The ability to convert between currencies for these transactions is part of the international financial system.
The Forex market, also known as the foreign exchange market, the FX market, or the currency market, is a market where traders around the world buy and sell currencies. The Forex market functions 24 hours a day, and is usually very liquid. To buy a currency, one must sell one to get that currency.
The Forex market ensures that foreign currency is exchanged among different countries. The two largest global Forex markets are those in New York and Tokyo. The foreign exchange market, also known as the FX market, is the second most traded market in the world. The FX market is also the world's largest market for foreign currency trading. The Forex market is an important market in the global economy.
The Forex market makes it possible for an investor to buy and sell currencies at any time of the day. The trade is done between an investor and a dealer. The dealer is an important element to the Forex market. The dealer is a bank, a company, or a private investor.
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