The Foreign Exchange Market

The Foreign Exchange Market is an over - the- counter ( OTC ) market , which means that there is no central exchange and clearing house where orders are matched . With varying levels of access , currencies are traded in different markets makers :

The Inter - bank Market : Commercial Banks of which trade with each other through the Electronic Brokerage System ( EBS ) . Bank will make available in the market quote , it is only for the banks they trade . This market is not directly accessible to retail traders .

Theonline Maker : Retail Merchants can access the FX market through online market makers that traded mainly from the U.S. and the UK . These market makers typically have relationships with several banks on EBS .

Market hours

Forex market trading is active as long as there are banks open on one of the main financial centers in the world . This effectively from early Monday morning in Tokyo until late Friday afternoon in New York . In terms of GMT , the trading week occurs from Sunday night to Friday night , or about 5 days , 24 hours per day .

Price Reporting Trading Volume

Unlike many other markets , there is no consolidated record of Forex , trading volume and price also not reported . This is for trade to occur simultaneously at different prices between different parties in the market . Good price through a market maker depending on market makers who are closely tied to the larger market . Price is usually relatively close between market makers , however the main difference between Forex and other markets is that there is no data on the volume has traded in a given period of time or at a given price . Open interest and even volume on currency futures can be used as a proxy , but they are by no means perfect .