as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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how do currency markets work?
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the fx (foreign exchange) market works very much like the stock market where potential buying parties bid $y of country 1's currency to buy $1 in country 2's currency.  potential selling parties sell (ask) $1 of country 2's currency for $y of country 1's currency.  like the stock market, there are also a swaps, futures and options in this market.
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