A Detailed Overview of Forex Market

Introduction

The following facts and figures relate to the foreign exchange market. Most of the information comes from the Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity conducted by the Bank for International Settlements (BIS) in April 2004, and published in March 2005. 52 central banks and monetary authorities participated in the survey, collecting information from approximately 1200 market participants.

Structure

• Decentralised, over-the-counter market, also known as the 'interbank' market
• Main participants: Central Banks, commercial and investment banks, hedge funds, pension funds, corporations & private speculators
• The free-floating currency system began in 1973, and was officially mandated in 1978
• Online trading began in the mid to late 1990's