Forex

While interest-rates are down toward zero worldwide in 2009, the largest currency traders are recommending countries with large trade surplus: Japan, Norway and Switzerland.

The foreign exchange (also FX or currency) market of today started in the 70s when countries gradually switched from gold to floating exchange rates.

Today, the foreign exchange market is one of the largest and most liquid financial markets in the world, and includes trading between central banks, large banks, corporations, currency speculators, governments, and other institutions. The average daily volume in the global foreign exchange is growing continuously. The Bank for International Settlements reported that 2008 daily turnover volume was close to US$5 trillions.

The foreign exchange market purpose is to facilitate investment and trade.

Foreign exchange market

• Derivatives market
• Credit derivative
• Hybrid security
• Options
• Futures
• Forwards
• Swaps

Most traded currencies

• US dollar
• Euro
• Japanese Yen
• Pound Sterling
• Swiss franc
• Australian dollar
• Canadian dollar
• Swedish krona