There are three general terms used to describe the trading of the many currencies of the world. These terms are Foreign Exchange, (Forex or FX. The Forex market is the largest trading market in the world with over 3 trillion USD traded every day.
The Forex market doesn’t operate at a centralized location like other financial markets (i.e., the stock exchange). It is a global electronic network of banks, financial institutions and individual Forex traders, all involved in the buying and selling of national currencies. The main centres for Forex trading are Sydney, Tokyo, London, Frankfurt and New York.
The main feature of the Forex market is that it operates corresponding to the opening and closing of financial centers in countries all across the world. Trading times are 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). At any time, in any location, there are buyers and sellers, making the Forex market the most liquid market in the world.
Forex was originally only accessible to banks & financial institutions. Due to the advances in technology such as increased internet speeds & more user friendly online services, the Forex market is now available to individuals. Individuals can access & trade the world’s currencies right from the comfort of their own home or workplace.
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