The “Foreign Exchange” market, also referred to as the “Forex” or “FX Market”, is the largest market in the world with over $5 trillion changing hands daily. Compare that to the New York Stock Exchange at over $170 billion, and it’s clear that the FX market is many times larger than the total US Equity and Treasury markets combined.
Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through an electronic network of banks, corporations, institutional investors and individual traders. Because there is no physical exchange, the Forex market operates 24 hours, across time zones and major financial centers around the world.
Forex exchange rates are also not always exactly the same for different brokers, because of the decentralized nature of the Forex market.