Frank MiuccioIT Director
Samantha CloseAlex ForbessJin HuangJillian KwongWilliam McClainLin ZhangEditorial Research Staff
The foreign exchange market is driven by the strength or weakness of a particular country's currency. Headlines in newspapers and on television often trumpet the condition Forex Trendy Review of the weak or strong dollar. It is in this financial market that those terms hold their greatest meaning because it is where currencies are traded between countries, banks, companies, and investors.There are several constituencies involved in the trading of international currencies that can affect the value of currency as it relates to online Forex trading. The first are commercial banks. Banks exchange money over international borders with other private financial institutions. Money is the lubricant of international commerce allowing foreign entities to do business with each other.
A bank will transfer money to the home country of the buyer. The bank of the home country of the seller receives the transfer of funds and converts them to the local currency. The conversion allows the companies to balance the accounts between the two currencies. The value of the transferred funds is determined by the specific exchange rate at the moment the transfer is consummated. Minuscule variations in a currencies valuation can be significant in the context of the volume of money in the trillions of dollars being transferred between the world's largest banks on a daily basis.