Currency trading takes place in foreign exchange market. The buying and selling of foreign currencies is facilitated by banks and other institutions. In the FX transactions, one party purchases a quantity of one currency in exchange for paying a quantity of another. One of the largest and liquid financial markets in the world is FX and it involves trading between large banks, central banks, currency speculators, corporations, governments and other institutions. The facilitation of trade and investment is the purpose of FX. There is always a need of foreign exchange due to presence of multifarious international currencies such as Pound, Dollar, etc., and the need for trading in such currencies.
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