The Forex market is where banks, businesses, governments, investors and traders come to exchange and speculate on currencies. The Forex market is also referred to as the ‘Fx market’, ‘Currency market’, ‘Foreign exchange currency market’ or ‘Foreign currency market’, and it is the largest and most liquid market in the world with an average daily turnover of $5 trillion.

 

The Fx market is open 24 hours a day, 5 days a week with the most important world trading centres being located in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney. (You can read more about forex market hours and sessions here)

 

It should be noted that there is no central marketplace for the Forex market; trading is instead said to be conducted ‘over the counter’; it’s not like stocks where there is a central marketplace with all orders processed like the NYSE.

 

Click here to go to the next lesson and learn about the participants of the forex market. Alternatively, you can go back to the introduction to forex page with all the lessons.