FX is also known as the foreign exchange market. The market is actually open 24 hours a day, every single day for five days a week. It is closed two days in a week. It is also one of the biggest financial markets in the whole world. It is also the most fluid market in the world, having transactions that measure up to $6000,000,000,000 per day. This market buys and sells currency, any time of any day. Since it is open all the time, people from all around the world can make use of it. It doesn’t matter if you are in the United States of America or if you are in Australia, you can use and trade in the market.
You should also keep in mind that this foreign exchange market is not exactly a one-stop-shop. There is a huge variety of many different avenues which an investor can look at and go through, if and when he wants to execute some foreign exchange transactions. You should also make sure that you go through multiple dealers and some financial centres, before you go ahead with your transactions. You should also consider some electronic networks.
Foreign exchange market traders are increasing daily. They are taking it up as a full-time job. There are millions of traders every single day. This means that these traders are doing it individually. Banks are the biggest customers in the foreign exchange market.
In today’s world, the entire market is actually just a click of the mouse away. Accessibility of the market is not a single issue, because you can access it with the help of the internet and it is all very instantaneous as well. When you are trading in the foreign exchange market, you are basically purchasing and selling the currency of a particular country. There is absolutely no physical exchange of money, from one hand to another. The physical exchange of money only takes place when you want to do it at a kiosk, probably in an airport. For example: You’re travelling to India from the United States of America. You will have to exchange your USD to INR at foreign exchange kiosk, which most international airports have. Keep in mind that most of these kiosks will charge you a commission or a transaction fee. It would also benefit you to know that most foreign exchange transactions which happened in the forex market do not have any transaction fee or commission.
In the gigantic world of electronic markets, keep in mind that the traders usually take a position with a specific currency and they usually hope that it has some upward movement, so that they can end up making a profit from it.