Interbank Capital Markets Brokerage - Foreign Currency Exchange Trading

Interbank capital markets brokerage and foreign currency exchange trading is also referred to as FX or Forex. The Currency Exchange Market is an inter-bank or inter-dealer market that was established in 1971 when floating exchange rates began to materialize. In addition, it is an Over-The-Counter market, meaning that transactions are conducted between two counter parties that agree to trade via the telephone or electronic network. Trading is thus not centralized, as is the case with many stock markets or as the case for currency futures or options, which trade on special exchanges. Currencies are traded every day for numerous reasons.