your platform, that price is how much one euro is worth in US dollars. The difference between the two is the spread. Updated January 30, 2019, the foreign exchange market is a global online network where traders buy and sell currencies. A large international alour scalp 5m forex company may need to pay overseas employees. They used forex markets to hedge their exposure to overseas currencies. . But leverage doesn't just increase your profit potential.
As a result, it dictates currency values. In both cases, youas a traveler or a business ownermay want to hold your money until the forex exchange rate is more favorable. Interbank Market, the interbank market is a network of banks that trade currencies with each other. . The interbank market includes the three trades mentioned above. Role of Central Banks Central banks don't regularly trade currencies in foreign exchange markets.