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Forex (Foreign Exchange)

Forex is the market for trading currencies, the largest financial market in the world with $9.6 trillion traded daily in 2025.

Quick answer

Forex is the global currency market, the largest financial market in the world at $9.6 trillion traded daily in April 2025. It trades nearly 24 hours a day with no central exchange.

Definition

Forex (foreign exchange) is the global market for trading currencies, where every transaction buys one currency and sells another. It is the largest financial market in the world, with daily turnover of $9.6 trillion in April 2025 per the BIS Triennial Survey, more than all global stock markets combined. It trades nearly 24 hours a day, five days a week, across London, New York, Tokyo and Sydney sessions, and it has no central exchange. Most retail participation happens through brokers offering CFDs or spread betting.

How It Works

  • Every trade buys one currency and sells another
  • $9.6 trillion daily turnover, April 2025 (BIS Triennial Survey)
  • London, New York, Tokyo and Sydney sessions overlap for liquidity

Trading Tips

1

Trade majors in the London-New York overlap for the best liquidity

2

The market is 24 hours only in theory - thin sessions behave differently

3

Retail forex is mostly CFDs, so broker regulation and costs decide the experience

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