Commercial and financial transactions in the currencymarkets represent huge sums, they are still light in comparisonto amounts placed on speculation.Must of currency trading is speculation based.Traders are changing their positions from long to short in a matter of minutes of seconds.
It is projected that 90 percent of daily turnovercomes from speculation.
The depth and breadth of the speculativemarket means that the liquidity of the overall forexmarket is unparalleled among international markets.
Activity in the forex market frequently workson a regional “currency bloc” basis, where the majority of tradingtakes place between the USD bloc, JPY bloc, and EUR bloc,representing three largest international economic areas.
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