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To buy foreign
goods or services, or to invest in other countries, companies and
individuals may need to first buy the currency of the country with which
they are doing business. Generally, exporters prefer to be paid in their
country's currency or in U.S. dollars, which are accepted all over the
world. The foreign exchange market, or the "FX" market, is where the
buying and selling of different currencies takes place. The price of one
currency in terms of another is called an exchange rate. The market
itself is actually a worldwide network of traders, connected by
telephone lines and computer screens there is no central headquarters.
There are three main centers of trading, which handle the majority of
all FX transactions United Kingdom, United States, and Japan