The foreign exchange market (forex, FX, or currency market) is a worldwide, over-the-counter (OTC) financial market fortrading currencies.
The Forex market has grown significantly in recent years and more than US$ 5 trillion is traded daily in the global FX markets. Total forex trading volume is well over three times the total of the stocks and futures markets combined.
Trading activity is primarily concentrated across Asia, Europe, and North America with the London and New York markets as the most active trading centers.
Market Participants: Commercial and Speculative Traders
Traders buy and sell Forex for both speculative and commercial purposes. Global Forex trading is dominated by speculative trading with traders attempting to profit from fluctuations in the exchange rates of currencies. Spot Forex is traded 24 hours per day and is typically traded electronically, online, and by telephone.