. The structure of the foreign exchange market

The purpose of the foreign-exchange markets is to bring buyers and seller of currencies together. It is essentially an over-the counter market, with no central trading location and no set hours for trading. Prices and other terms of trade are determined by negotiation over the telephone or via telex. The foreign-exchange market is informal in its operations; there are no special requirements for market participants, and trading conforms to an unwritten code of rules among active traders.