Investors should note that commercial and financial foreign exchange transactions are part of the total transaction volume in the foreign exchange market, and most foreign exchange transactions are based on speculation.
In other words, most foreign exchange traders buy or sell foreign exchange based on intraday price changes.
Foreign exchange speculators ’foreign exchange trading volume is estimated to be over 90% of the foreign exchange market ’s trading volume.
The size of the foreign exchange market means that liquidity … trading volume at any time is quite high!
This makes it easy for anyone to buy and sell currency.
The foreign exchange market belongs to a speculative market-Yuhui International
From an investor’s perspective, liquidity is very important because it determines that prices can be easily changed in a given time. If there is no price, or the impact of price movements, it is difficult for the liquid foreign exchange market to have a huge transaction volume.
Although the foreign exchange market is liquid, it will depend on the currency pair and time.
In this lesson “Foreign Exchange Trading Hours”, we discovered how liquidity and money market interest rates have changed by looking at the changes in currency pairs within a day.