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Foreign exchange market is a market where foreign currencies are bought & sold. The purpose of foreign exchange market is to permit transfers of purchasing power denominated in one currency to another i.e. to trade one currency for another. The project covers various trading areas of FOREX market such as spot market, forward market, derivatives, currency futures, currency swaps etc. It helps understanding various trend patterns and trend lines. In India the SMEs account for a significant proportion in manufacturing, exports and employment .They are also a major contributor to the GDP. Therefore, financing SMEs is necessary to help them in set up and expand their operation.