Foreign exchange market

Forex (Forex, sometimes FX, from the English Foreign Exchange — “foreign exchange”) — the market for interbank currency exchange at free prices (a quote is formed without restrictions or fixed values). Often used the combination of «forex market» (Eng. Forex market, FX-market).

In the English-speaking environment, the word “Forex” can mean not only the mutual exchange of currency, but also the whole set of currency transactions [1], as well as foreign currencies as such. In the Russian language, the term Forex is usually used in a narrower sense — it means exclusively speculative currency trading through commercial banks or dealing centers, which is carried out using leverage, that is, marginal currency trading (see the «Currency Market Participants» section). At the same time, the terms «international forex» and «international forex market» are a tautology, due to the fact that «foreign exchange» initially implies operations with foreign currency.

Forex operations on targets can be trading, speculative, hedging and regulatory (currency interventions by central banks).