The Foreign Exchange Market

The foreign exchange market (FOREX) is the place where currencies are traded. The forex market is larger than any other market, with daily trading in the range of $1.5 trillion.

Trading for the foreign exchange market takes place over the counter since there is no central marketplace for currency exchange. During the week the foreign exchange market is open 24 hours a day. Currency exchange takes place through financial centers in Frankfort, Hong Kong, London, New York, Paris, Singapore, Sydney, Tokyo and Zurich.

Historically, foreign exchange trading has been utilized by large institutional investors, corporations and major banks. More recently the individual investor has discovered the flexibility this market offers with trades that are executed quickly with low transaction costs.