Foreign Exchange Market
The global decentralised market where currencies are traded.
Quick answer
The foreign exchange market is the global market where currencies are traded, the largest in the world.
Definition
The foreign exchange market is the global, decentralised market where currencies are bought and sold. It is the largest financial market in the world, trading trillions of dollars a day across banks, institutions and retail traders. It runs nearly around the clock through overlapping sessions.
How It Works
- It is decentralised, not on one exchange
- It runs around the clock across sessions
- Banks, institutions and retail all take part
Trading Tips
1
Know the session that suits your style
2
Watch liquidity between the London and New York overlap
3
Treat the market as global, not local
Related Terms
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