Basically, 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 $3.98 trillion. The Fx market is open 24 hours a day, 5 days a week with the most important world trading centers being located in London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris, and Sydney.
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. The foreign exchange markets (FOREX) have evolved from the humblest of beginnings to the world’s largest market by dollar volume. With several different entry points, speculators and hedgers can both find what they are looking for. Whether they simply want to hedge their everyday currency risk, or pursue a more complex strategy, the FOREX markets provide the liquidity and instruments for trading in currencies.