Features of Forex Market

There are some main characteristics of the foreign exchange market. These include:

• The geographical spread: The forex market is spread across the world, and
  is functional 24 hours a day
• Main function: The market’s main function is the mechanism by which
  participant transferring purchasing power between the countries, obtains
  or provides credit for international trade and minimizes exchange rate risk
  and determines exchange rate between currencies.
• Market participants: The key market participants are-
  § Banks
  § Commercial Companies
  § Central Banks
  § Hedge Funds
  § Retail Forex Brokers
• Types of transaction: The key transactions are spot, forward and swaps
• Liquidity is very high in forex market because the market operates in high
  money supply conditions. It gives freedom in opening and closing position
  in current market quotation.