Which of the following accounts for the largest portion of trading volume in the foreign exchange markets?

Question

Quizplus · Accepted Answer

Investors account for the largest portion of trading volume in the foreign exchange markets, as they engage in currency trading for various purposes such as speculation, hedging, and diversification. Exporters and importers also participate in the forex market, but their trading volume is relatively smaller compared to that of investors. Governments also engage in forex trading, but their transactions are typically meant to manage exchange rate risks and intervene in the market to maintain stability, rather than for profit-seeking purposes.

Which of the Following Accounts for the Largest Portion of Trading