Foreign exchange market is the market who acts as an intermediary that allows people who holds different type of currency around the world to make transactions with each other. Most currency transactions are established through the interbank market, which is the worldwide market where major banks across the world trades with each other. This high volume of international transaction is referred to as the foreign exchange market. The foreign exchange market is dominated by spot and forward market. Spot is the transaction that occurs right away and delivery is schedules within two business days. On the other hand, forward market is where the transaction occurred now is made for future deliveries. Both spot and forward market accounts for a total about 47% of the foreign exchange market activities. The transactions that carry both spot and forward market package transactions takes over the remaining 53% of the foreign exchange market.  The foreign exchange markets are electronically link by the swift system through the network of banks, brokers, dealers, buyers and sellers. The foreign exchange markets are trading in the major financial centers across the world. The biggest and most influential financial markets today are the London financial center, New York financial center, and Tokyo financial centers. The swift system consists of network transactions with 7000 banks and brokers in 192 countries. The total transaction around the world that is processes within a day accounts for $5 trillion payments.  The major global participants in the foreign exchange market are the central banks, multinational corporations, commercial customers, foreign exchange brokers in the interbank, and finally the large commercial banks.  Central banks have the ability to affect the buying and selling in the foreign exchange market. The head of the major commercial banks and investment banks are the real market makers who have the power to buy or sell any major currencies. Most foreign exchange transaction in the United Stated is practice through foreign exchange brokers. These brokers are professional in matching what their supplier and demander’s need. Often they specialize in one currency and provide valuable knowledge in helping the bank reduce the contact with traders.  The commercial and central bank customers participate in the foreign exchange market though their banks. They deal with their local banks that then provide linkages to the market. The major participants in the futures market are the arbitragers, hedgers, and speculators. Arbitrager seeks to minimize risk while making profit. Hedgers often seen in forward contract serve to protect the home currency values in the international market. Speculator actively sells and buys in the forward market to make profit from the exchange rate fluctuations. It is important to understand all the intermediaries that participants in the foreign exchange market. This will allow us to know what can benefit us in doing business globally. Can teach us to make the right decision and help us to prevent the risk that we may be involved in. resource: powerpoint slides, textbook