Abstract: Foreign exchange market or forex market is the main focus of this article which is one of the largest contributors in the global economy in recent times. The number of people joining currency trading is rapidly increasing in the global market and especially during the pandemic it enhanced. The forex market refers to the decentralised market for the trading of currencies which determines specific foreign exchange rate for every currency which is briefly discussed in this article. The study further includes a brief description of pros and cons of joining the forex market with reference to the foreign exchange management regulations in different countries. Secondary sources have been used for assembling relevant data regarding the forex market and all the findings are presented through a systematic table. All the articles and journals that are reviewed for data collection are accurately cited as well as thematically discussed in this article. Systematic presentation and thematic analysis of all the findings enhances understanding and significance of this study. As a result, it is identified that foreign exchange management plays a very crucial role in currency trading in the global forex market as it controls and manages all the exchanges in every currency.

Keywords : currency trading, foreign exchange management, foreign exchange market, liquidity.