The foreign exchange market (FOREX) is a cash spot trading or (spot) inter-bank market created in 1971 when floating exchange rates began to materialize. This market is the arena in which the currency of one country is exchanged against those of another, and where institutions for international companies are doing.
Historically, the interbank foreign exchange market was not available to small speculators. With a previous minimum transaction size and the often stringent financial requirements, the small trader was excluded from participation in this market. But the market maker brokers today are allowed to break the large inter-bank units and offer small traders the opportunity to buy or sell a certain number of these smaller units (lots).
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