The Foreign Exchange or the forex market, as it is commonly known, is the largest financial market in the world. Operating virtually around the clock, the forex market trades enormous amounts of money which is estimated at several trillion dollars daily.


Unlike the futures exchange which brings buyers and sellers together in a central location, the forex market is not centrally located. It is an over-the-counter market where buyers and sellers conduct business linked by telephones, computers, fax machines, and other means of instant communications. Among its participants are large corporations, commercial banks, money centers, pension funds and investment banking firms. Foreign exchange involves trading one nation's currency for the currency of another