What sets the forex market apart is its decentralised structure. Unlike traditional exchanges, forex trading takes place over-the-counter (OTC) through online transactions between global traders instead of via a centralised exchange. With an average daily trading volume of $6.6 trillion (2019), the forex market is one of the world’s largest and most liquid financial market.
The forex market operates 24 hours a day, 5 days a week. When the market is open, large volumes of any currencies can be purchased. The key financial hubs include London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney. The forex market can be highly active at any time, with prices fluctuating constantly. For example, as the US trading day ends, Tokyo and Hong Kong take over. When the Asian session ends, European markets open and take over to carry traders into the American session.
