The Structure of the Foreign-Exchange Market

• The foreign-exchange market comprise of buyers and sellers of currencies issued by the world's countries.

• Anyone who owns money denominated in one currency and wants to convert that money to a second currency participates in the foreign-exchange market.

• Foreign exchange is being traded somewhere in the world every minutes of the day.

• The largest foreign-exchange market is in London, followed by New York, Tokyo, and Singapore.

• The dollar is used to facilitate most currency exchange, it is known as the primary transaction currency for the foreign-exchange market.