What Is the Forex Market?

The foreign exchange market — forex or FX for short — is where the world's currencies are traded. It's the largest financial market on the planet, with trillions of dollars changing hands every single day.

Why does it exist?

Every time a company imports goods, a tourist exchanges money, or a bank moves capital across borders, currencies are bought and sold. Traders also participate simply to profit from changes in exchange rates.

Open 24 hours

Because it spans the globe, forex runs 24 hours a day, five days a week — following the sun from Sydney to Tokyo to London to New York. There's no single exchange; trading happens electronically between banks, brokers, and traders everywhere.

• Huge — far bigger than all the world's stock markets combined.
• Liquid — you can almost always buy or sell instantly.
• Accessible — you can start with a small account from anywhere.