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The foreign exchange market (forex, FX (pronounced "fix"), or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.
An exchange-traded fund (ETF) is a type of investment fund that is also an exchange-traded product, i.e., it is traded on stock exchanges. [ 1 ] [ 2 ] [ 3 ] ETFs own financial assets such as stocks , bonds , currencies , debts , futures contracts , and/or commodities such as gold bars .
An exchange, bourse (/ b ʊər s /), trading exchange or trading venue is an organized market where (especially) tradable securities, commodities, foreign exchange, futures, and options contracts are bought and sold.
As the currency loses its buying power and becomes less attractive in the foreign market, the exchange rate will likely drop in favor of stronger currencies. 2. Interest rates
Market factors Inflation, interest rates and geopolitical events influence exchange rates. For example, if the U.S. raises its interest rates, the dollar might strengthen, resulting in a lower ...
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