Overview

or just are all terms used to describe the trading of the world's many currencies. The is the largest market in the world, with trades amounting to more than USD 3 trillion every day. Most Forex trading is , with only a low percentage of market activity representing governments' and companies' fundamental currency conversion needs.

Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the which is thought of as an market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centres for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centres means that the Forex market is a 24-hour market.