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Originally Posted by hilario
Hi,
I need a small clarifications somebody help me! What is Foreign Exchange/Forex? Where does Forex Trade take place? and Who regulates the Global Forex Market?
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Hi
1.
Foreign Exchange is the trading of one currency against another. Professionals refer to this as foreign exchange, or use the acronyms Forex or FX. The financial asset constituting Forex are “currency-pairs” like Euro and US Dollar, or US Dollar and Japanese Yen, and so on.
2. There is no central location of the Forex Market. It’s an OTC market where trades are conducted on phone or through internet, so you can virtually put a trade from anywhere and anytime.
3. The Forex Market is regulated through the regulation of the entities offering Forex Trading services.
For example, in USA, all the entities offering Forex Trading Services to its clients are regulated by National Futures Association (NFA) and Commodities Futures Trading Commission (CFTC).
In UK, entities offering Forex are governed by Financial Services Authority (FSA).
Sources:
http://www.ing-invest.com/