Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
FOREX stands for Foreign Exchange. This term refers to the global marketplace where currencies are traded. The foreign exchange market is crucial for international trade and investment, as it facilitates the conversion of one currency to another, allowing businesses and individuals to purchase goods and services in different currencies.
The FOREX market is the largest and most liquid financial market in the world. It operates 24 hours a day, five days a week, and involves a wide range of participants including banks, governments, multinational corporations, currency speculators, and individual traders. Unlike stock markets, which have specific physical locations, the FOREX market operates through a global network of banks and other financial institutions.
The concept of exchanging currencies is not new and has been around for centuries. However, the modern FOREX market began to take shape after the Bretton Woods Agreement in 1944, which established a system of fixed exchange rates among major currencies. This system collapsed in the early 1970s, leading to the adoption of floating exchange rates and the birth of the contemporary FOREX market.
In FOREX, currencies are traded in pairs, with each pair representing the exchange rate of two different currencies. For example, EUR/USD is a pair that represents the exchange rate between the Euro and the U.S. Dollar. Traders speculate on the movement of these exchange rates to make profits. The price of a currency pair is influenced by various factors including economic indicators, political events, and market sentiment.
FOREX trading involves significant risk due to high leverage and volatility in currency markets. Political and economic events can lead to rapid and substantial price movements, which can result in large losses. Currency speculation is not suitable for all investors, and it requires a thorough understanding of the market and sound risk management strategies.
The FOREX market plays a vital role in the global economy, enabling cross-border trade and investment. It offers opportunities for profit, but also poses significant risks. Understanding the dynamics of FOREX is essential for anyone looking to participate in this market, whether as a trader, investor, or for business purposes.
In FY 2023-24, the Hon’ble Finance Minister announced the need to simplify, ease, and reduce...
The recent amendments to the Foreign Exchange Management (Non-debt Instrument) Rules, 2019 (FEM...
Gifts amongst spouses in India are generally not subject to tax and, therefore, remain a very a...
CFOs play the role of game-changers in the modern retail industry. They leverage data analytics...
The capital market regulator, i.e., the Securities Exchange Board of India (SEBI), made signifi...