World's Largest Financial Market
Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another. Speculators in the FX market wish to purchase or sell one currency for another with the hope of making a profit when the value of the currencies changes in favor of the investor, whether from market news or events that take place in the world. The Forex market has become the world's largest financial market, with over $1.9 trillion USD being traded on a daily basis. It is part of the bank-to-bank currency market known as the Interbank market. The 24-hour Interbank market literally follows the sun around the world, moving from major banking centers of the United States to Australia, New Zealand to the Far East, to Europe then back to the United States.
Market Hours
Time Zone | New York | GMT | | Tokyo Open | 7:00 PM | 0:00 | | Tokyo Close | 4:00 AM | 9:00 | | London Open | 3:00 AM | 8:00 | | London Close | 12:00 PM | 17:00 | | NY Open | 8:00 AM | 13:00 | | NY Close | 5:00 PM | 22:00 |
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Market Participants
Until recently, the Forex market wasn't accessible to the retail trader or individual speculator. With the large minimum transaction sizes and often-stringent financial requirements, banks, hedge funds, major currency dealers and the occasional high net-worth individual speculator were the principal participants. These large traders were able to take advantage of the many benefits offered by the Forex market versus other markets - including vast liquidity and the strong trending nature of the world's primary currency exchange rates.
