Forex or foreign exchange market is the largest financial market in the world, with a daily turnover of over $5 trillion. It is where currencies are exchanged or traded against each other, and it is open 24 hours a day, five days a week. Forex is traded globally, with major financial centers in different time zones around the world. In this article, we will explore where forex is traded and how it operates.
Forex is traded in different financial centers worldwide, with the major centers being London, New York, Tokyo, and Singapore. These cities are the epicenters of forex trading and account for the majority of the trading volume. The market opens in Sydney, Australia, on Monday morning and closes in New York on Friday evening, which means that forex trading is a continuous process throughout the week.
London is the largest forex trading center globally, accounting for around 43% of the daily trading volume. The London market is open from 3 am to 12 pm EST, and it is the center of the European forex trading. The London market is known for its high liquidity and volatility, making it an attractive market for traders looking to make quick profits.
New York is the second-largest forex trading center globally, accounting for around 17% of the daily trading volume. The New York market is open from 8 am to 5 pm EST, and it is the center of the American forex trading. The New York market is known for its stable and predictable trading environment, making it an attractive market for traders looking for long-term investments.
Tokyo is the third-largest forex trading center globally, accounting for around 6% of the daily trading volume. The Tokyo market is open from 7 pm to 4 am EST, and it is the center of the Asian forex trading. The Tokyo market is known for its high volatility and liquidity during the Asian trading session, making it an attractive market for traders looking for quick profits.
Singapore is the fourth-largest forex trading center globally, accounting for around 5% of the daily trading volume. The Singapore market is open from 9 pm to 6 am EST, and it is the center of the Asian-Pacific forex trading. The Singapore market is known for its stable and predictable trading environment, making it an attractive market for traders looking for long-term investments.
Apart from the major forex trading centers, forex is also traded in other financial centers worldwide, including Zurich, Frankfurt, Hong Kong, and Sydney. These centers account for a small percentage of the daily trading volume, but they offer unique trading opportunities for traders looking to diversify their portfolio.
Forex is traded through a network of financial institutions worldwide, including banks, brokers, and market makers. These institutions provide the necessary infrastructure for traders to access the forex market, including trading platforms, liquidity, and price feeds. The forex market operates on a decentralized basis, which means that there is no central exchange where all the trades are executed. Instead, trades are executed through the interbank market, where financial institutions trade with each other directly.
In conclusion, forex is traded globally, with major financial centers in different time zones around the world. The major centers are London, New York, Tokyo, and Singapore, accounting for the majority of the trading volume. Forex is traded through a network of financial institutions worldwide, and it operates on a decentralized basis. Traders looking to trade forex can access the market through banks, brokers, and market makers, providing the necessary infrastructure for trading. The forex market is a continuous process throughout the week, offering unique trading opportunities for traders looking to diversify their portfolio.
