Forex Market and Forex Market
Foreign exchange is a method of exchanging currencies between nations without directly exchanging currencies. You can use securities such as checks and bills of exchange for settlement instead of actual cash. Forex is abbreviated as “gaitame”, but this is an abbreviation for the reading “gaikokukase”. It is a rule to exchange the currency of one country and another at a fixed ratio agreed with each other. The exchange rate at which currencies are traded has changed over time. Currently, the floating exchange rate system is adopted, but for a while, transactions were carried out under the fixed exchange rate system. Due to the floating exchange rate system, the currency exchange rate is constantly moving at present. Unlike the Tokyo Stock Exchange, it is a foreign exchange market where foreign exchange trading is carried out, but it does not physically exist. Interbank transactions between foreign exchange banks are bought and sold via telephone lines and internet lines. In other words, the foreign exchange market is a conceptual market. The foreign exchange markets in Tokyo, New York, and London are so large that they are called the world’s three largest markets, and have a large impact on the world economy. A day on the Forex market begins when the New Zealand market starts at 6:30 am Japan time (7 am in winter). After that, markets such as Sydney, Singapore, and London open one after another, and the market ends at 6 am the next day (7 am in winter). In other words, the forex market is always open in some countries around the world, and by the time one closes, it will be another open time. That’s why the market is called never sleeping.