Although foreign exchange market trades are said to involve the buying and selling of currencies,most trades involve the buying and selling of

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While foreign exchange market trades do involve the buying and selling of currencies, most of these trades are done through bank deposits denominated in different currencies. This allows individuals and businesses to exchange one currency for another without physically exchanging paper bills or coins. SDRs, gold, and ECUs may also be traded in the foreign exchange market, but they are not typically the primary focus of most trades.

Although Foreign Exchange Market Trades Are Said to Involve the Buying