chapter  3
57 Pages

The foreign exchange market

According to the Bank for International Settlements (BIS), average daily turnover in the foreign exchange market in 2004 was $1.9 trillion in foreign exchange markets-spot transactions, outright forwards, swaps and options-one of the largest financial markets in existence, if not the largest. The transactions costs involved are easily over a billion dollars a day, counting the bid-ask spread and commissions.