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The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The trade happening in the forex markets across the globe currently exceeds $1.9 trillion/day (on average). Retail traders (small speculators) are a small part of this market.
According to Peter Garnham from the Financial Times website (Published: October 9 2006) " The foreign exchange market will have doubled in size in just three years next year, thanks to increased participation by fund managers and pension funds." - Source: Wikipedia
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