Ramolak19
Verified member
The foreign exchange (forex) market is a global, decentralized, over-the-counter (OTC) market for the trading of currencies. It is the largest and most liquid financial market in the world, with an average daily trading volume of more than $5 trillion. This is significantly larger than the stock, futures, or options markets, where daily trading volume typically ranges from tens to hundreds of billions of dollars.
The primary difference between forex trading and other types of financial markets is that forex trades take place in pairs – for example, EUR/USD and USD/JPY. The currencies are always traded in pairs and the transactions are always done in pairs. Also, forex trades are conducted over the counter, meaning that trades are not conducted through any centralized exchange.
The other main difference between forex and other markets is the time of trading. On the other hand, other markets have trading sessions that run at specific times during the day. In the forex market, trading is conducted 24 hours a day, 5 days a week, over the counter. This allows traders to take advantage of trading opportunities at any time of the day.Finally, the cost of trading in the forex market is generally lower than in other markets. This is mainly due to the lack of centralized exchanges and the associated fees, as well as the fact that trading can be done over the counter. This makes it attractive for traders who are looking for a low-cost way to trade.