Forex or FX (shorthand) is also known as foreign exchange, and it happens to be the market place where all currencies from around the world trade it for other currencies. For example, if you want to travel to the United States of America from Australia, you will have to trade your Australian dollar to the United States dollar. It will be traded depending on the value of the United States dollar on that particular day, because this value changes every single day. The forex market is the most liquid and largest market in the world when it comes to trading volumes, because trillions of dollars are treated every single day. As you know, it does not have any centralised location, which means that it is operated with the help of electronic networking and banking.
Since the advent of the internet, everyone has been making use of the internet, to carry on trading activities in the foreign exchange markets. The market place comprises of banks, institutions, financial institutions, brokers, traders and more. You have people trading from all around the world. If you happen to have an internet connection and a device, you can start your lessons to become a forex trader or broker immediately, if that is what you’re interested in. You will obviously need a license to trade. A lot of entities, including financial institutions and individual investors, have a lot of currency needs. They even speculate the direction of the movement of particular currencies and pairs of currencies. As you know, currencies are traded in pairs. For example, USD/GBP is the most common trading pair.
They continue by posting that orders if they want to purchase or sell the currencies on the network, so that they can perform interactions with other currency orders from other people who are interested in buying or selling the currency. The foreign exchange market is open 24 hours a day, for five days in a week. It is not open on public holidays or national holidays (Christmas, Thanksgiving, Easter, et cetera). Trading volume is lower around the holidays.
But, in the busiest time of the year, you can expect trading to go upwards of $6 trillion per day.
Since it is a magnificent network of institutions which allow trading 24 hours a day, you can expect that people are trading all the time. As we speak, billions of dollars would have been traded.
If you happen to make a loss or profit from the differences in pricing, it is carried by you. Some people actually wait for the currencies to go up or down to make a profit.