Foreign exchange is a global centralized market to transfer funds from one currency to another. It determines the values of respective currency in the world. It is the center stage of financial centers for several people who trade currency by selling and buying. The main purpose of the foreign exchange is to help financiers across the world to trade currency and to assist in foreign investments. Most global investments are done with the assistance of the exchange, as it is simple and not complex as the stocks.
The main benefit of the foreign exchange is its possibility to trade currency of any county to currency of any other country. When two currencies are allotted for trading, they are called as a pair. You can trade any number of pairs needed. The exchange and its working are unique as it is open for 24 hours week except weekends. There are exchanges markets in all the countries so there are no geographical limitations. Using the facilities of the foreign exchange, you can buy good from European Union and pay in pounds while your income is in US dollars. Similarly, it has various advantages that can be used for trade and investment in foreign locations.