What is the Currency Market? – Definition of Currency Market

Currency

Currency Market

 


The Foreign Exchange Market (Forex, FX, or Currency Market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines the foreign exchange rate.

It includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of trading volume, it is by far the largest market in the world, followed by the Credit market.

Tip: Other definitions of the term “Currency” are discussed in their respective synonymous articles banknote, coin, and money.

Currency distribution of global foreign exchange market turnover.
Rank Currency ISO 4217 code
(symbol)
% daily share
(April 2016)
1
 United States dollar
USD (US$)
87.6%
2
 Euro
EUR (€)
31.4%
3
 Japanese yen
JPY (¥)
21.6%
4
 Pound sterling
GBP (£)
12.8%
5
 Australian dollar
AUD (A$)
6.9%
6
 Canadian dollar
CAD (C$)
5.1%
7
 Swiss franc
CHF (Fr)
4.8%
8
 Renminbi
CNY (元)
4.0%
9
 Swedish krona
SEK (kr)
2.2%
10
 New Zealand dollar
NZD (NZ$)
2.1%
11
 Mexican peso
MXN ($)
1.9%
12
 Singapore dollar
SGD (S$)
1.8%
13
 Hong Kong dollar
HKD (HK$)
1.7%
14
 Norwegian krone
NOK (kr)
1.7%
15
 South Korean won
KRW (₩)
1.7%
16
 Turkish lira
TRY (₺)
1.4%
17
 Russian ruble
RUB (₽)
1.1%
18
 Indian rupee
INR (₹)
1.1%
19
 Brazilian real
BRL (R$)
1.0%
20
 South African rand
ZAR (R)
1.0%
Other 7.1%
Total 200.0%

Definition of Currency Market