Image via WikipediaThe foreign exchange market (forex, FX, or currency market) is a worldwide over-the-counter market for the trading of currencies.
Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock. The foreign exchange market determines the relative values of different currencies.
The foreign exchange market is unique because of
- huge trading volume
- geographical dispersion
- continuous operation (24 hours a day except weekends)
- variety of factors that affect exchange rates
- low margins of relative profit compared with other markets of fixed income
- use of leverage to enhance profit margins with respect to account size
http://en.wikipedia.org/wiki/Foreign_exchange_market
