How does the foreign exchange market work?The foreign exchange market, also known as forex, FX or foreign exchange market, is a decentralized global market for trading currencies and operates on several levels, with the foreign exchange market being the largest financial market in the world and the Australian foreign exchange market ranking seventh in the world. Australia maintains close trade ties with countries in Asia, the United States, New Zealand, Western Europe and the Middle East. The foreign exchange market works by facilitating international trade and investment by allowing currency conversion, for example by allowing a business in one country to import goods from another country, using a different currency. Australia's foreign exchange policy also contributes to the promotion of our country's profit and national interest. Policies are oriented to benefit both investors and the Australian public. Trading Until recently, the foreign exchange market was not accessible to private investors and speculators. High minimum transaction requirements and other restrictions had limited the foreign exchange market to large banks, hedge funds or major foreign exchange dealers. Nowadays, speculating on foreign currencies is within the reach of small private investors. Currency trading involves varying degrees of risk, just like any other area of ​​speculative trading. Traders buy and sell currencies traded between various organizations and banks, allowing businesses to transact outside of their local currency. Here, transactions worth more than $4 trillion are made around the world every day, as measured by the Bank for International Settlements. With any act...... middle of paper ......ents and allegedly creating a false or misleading appearance regarding the trading prices of various stocks. Each of the charges brought under section 1041B of the Corporations Act 2001 carries a maximum penalty of $495,000 or imprisonment of 10 years or both. The Australian Taxation Office makes rules and determinations for foreign exchange policy in Australia. The new rules are applicable since July 1, 2003. These policies are determined based on the amount of losses and profits made during a particular financial year. html http://www.worldfirst.com.au/ http://www.webwombat.com.au/finance_/articles/forex-trading.htm http://en.wikipedia.org/wiki/Foreign_exchange_market http:/ /www.forexct.com.au/ http://www.investopedia.com/terms/ http://www.rba.gov.au/AFXC/AboutUs/fx_code_of_conduct.html