Participants – ranging from day traders to international banks – set global exchange rates. Naturally, those that have a more substantial impact will be major institutions like commercial banks, which make up the bulk of trading activity. These players interact either directly with one another or through electronic brokers.
You could also compare the decentralized nature of both markets. Unlike with stocks, you’re not limited to trading platforms like the New York Stock Exchange (NYSE) or NASDAQ for trading currencies. Exchanges are conducted around the globe without the oversight of a single regulatory body.
Forex, as we know it today, is a relatively recent phenomenon, largely spurred on by the termination of the Bretton Woods system in 1971. This resulted in the decoupling of the US dollar from gold, opening it up to floating exchange rates determined by supply and demand on the foreign exchange market.
A marketplace for cryptocurrencies where users can buy and sell coins.
Money that a government has declared to be legal tender.
A period of strong selling activity, where investors give up their positions and sell their holdings as qui...