Forex Market: Comprehensive Notes with Advanced Examples | MODULE D: FINANCIAL PRODUCTS AND SERVICES
Forex Markets: A Comprehensive Study Profile of Foreign Exchange (Forex) Market The Foreign Exchange (Forex) market is the world's largest financial market where currencies are bought and sold. It operates 24 hours a day, five days a week, facilitating international trade, investment, and speculation. Evolution of the Forex Market in India In India, the Forex market evolved post-1991 economic reforms. The liberalization led to market-determined exchange rates in 1993 and development of derivative products such as forwards, swaps, and options under RBI regulations. Characteristics of the Forex Market High liquidity and 24/5 operation. Decentralized and Over-the-Counter (OTC) market. Highly volatile and influenced by macroeconomic factors. Driven by supply and demand for currencies globally. Market Participants Participants include Centr...