What are the functions of a foreign exchange market?

Answer

Foreign exchange market is a market where currencies are traded internationally every day, making forex larger than all bond markets put together. Currency markets are in form of spot, forward, futures and options markets.
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1 Additional Answer
The Foreign Exchange Market is a global and decentralised over-the-counter financial medium for the exchange and trade of currencies. The Foreign Exchange Market, otherwise known as the Forex Market, determines the relative values of the various currencies. It assists in international trade and investment.
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