Forex

Forex, or foreign exchange, is a market where individuals and financial institutions can buy, sell, or exchange currencies for both hedging and speculative purposes. It's the largest financial market in the world, with participants such as banks, commercial companies, central banks, investment management firms, hedge funds, retail forex brokers, and investors.

Unlike other financial markets, forex doesn't have a single exchange. Instead, it's a global network of computers and brokers that operate around the clock. Forex brokers also act as market makers and may post bid and ask prices for a currency pair that differs from the most competitive bid in the market.

The forex market is divided into two levels: the interbank market and the over-the-counter (OTC) market. The interbank market is where large banks trade currencies for purposes such as hedging, balance sheet adjustments, and on behalf of clients. The OTC market, on the other hand, is where individuals trade through online platforms and brokers.

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