What is Forex?

Forex is the Foreign Currency Exchange in which international banks, speculators, and large and small industries participate 24-hours a day. The currency market is the most liquid and largest financial market in the world, with daily trading volume exceeding $1.9 trillion, roughly 50 times the volume of the New York Stock Exchange.

With international trade, the currency of one country must be exchanged for that of another for settlement of a transaction. Institutions and corporations in the international market place often times need a certain currency to complete a deal.

Operation of the Forex Market

The International Foreign Exchange Market is a non-physical market and has no central exchange like the New York Stock Exchange on Wall Street. The major participants in this market are Central Banks, prime multinational banks, large corporations, brokerage houses and individual investors.