Talking about the forex transaction volume itself is a big deal. It is said that forex trading market is one of the biggest financial markets in the world. It is also true that by each passing day the popularity of foreign exchange trading business is expanding on a larger scale.

Actually, it is an international devolved market which is used and known for the trading of currencies. This market also includes different aspects of selling, buying and also exchanging currencies at the rate of current price. Again talking about forex transaction volume then so far it is world’s largest online trading business where anybody can participate and can earn a profit in befitted manner.

Total forex transaction volume traded per day in the forex market

It is reported that the year 2013 was highly beneficial for forex traders as the trading volume was immensely increased. According to the reports given by Bank for Institutional Settlements, the amount of volume traded every day reached up to $5.3 trillion, which was $4.0 trillion a year before.

In was also added in the report that Spot transaction and foreign exchange swaps, both touched the limit of $2 trillion per day. The most interesting part of the report is that USD remains as the most dominant traded currency because it is the part of top five traded currency pair. EUR/USD traded almost $1.2 trillion and following it was USD/JPY with trading volume of $1 trillion.

What comprises foreign exchange market?

It is true that without the support of its elements forex transaction volume would not have been increased at such a high level. According to reports total trading volume in forex market is around $220 billion per hour.

Forex market is actually constituted of governments, multi-national corporations, and business houses, institutional investors, banks, currency speculators, etc.

It is also said that almost 90 percent of the trading volume is generated through currency speculators capitalizing on the movements of intraday price movements.

In this regard, it would also be important to note that forex market is an over countered market and it is houses electronically.

Forex market provides high level of liquidity

It is evidently found that most of the traders whether they are professionals or amateur they are attracted towards the foreign exchange market because this is the only market which gives high levels of liquidity. According to market experts, it is said that liquidity is very important for high forex transaction volume. It is also crucial as it allows the traders to get into and out of a position with ease throughout 24 hours and 5 days in a week.

Other factors related to forex market

There are a number of factors available in the market which influence the growth of forex market and its trade volume. It is also important to note that enhancement in the economic condition of any country can help to stimulate the forex business, and it will also help to increase forex transaction volume worldwide.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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