Dwelling into the global market, almost every asset is set for trade (buying and selling), including commodities, stocks, bonds and currencies. You might seem to wonder, aren’t currencies meant for paying? Well, currencies can also be investment products because of the constant fluctuations in their prices. However, currencies are the major elements of trade in international money transfer.
The international money market is responsible for handling the supply and demand of money, across the borders. When the supply is more and the demand is lesser, the value of money falls, whereas when the demand grows, the value goes up. The international money market is also popular by the name foreign exchange trading or forex.
Forex is a big-billion industry that handles thousands of big transactions per day that is valued upto trillions of dollars. The international money market is the largest financial market in the world, where international settlers play a major role. Major characteristics of this money market include:
- It is the most liquid market in the world due to the currency spot trading that is estimated to generate about $1.5 trillion a day in volume.
- It is the most dynamic market in the world with constant changes in currency prices, investment opportunities etc.
- It is a 24 hours market in which any of the financial institutions or banks or operators will be working in different parts of the world, all through the time square.
- It upholds price transparency which makes the changing prices directly visible to the normal customers, making the market reliable and trustworthy.
- It consists of an international network of dealers dispersed in different parts of the world, yet connected within the market by the means of electronics and technology.
- The dollar is the widely traded currency in the international money market.
Based upon the above-mentioned characteristics, the FX market is the perfect market to trade your currency for another to conduct overseas money transactions. You can also go for online money transfers for better convenience and comfortability, as it provides all the benefits of the international money market and offers many more for its valuable customers.
