Forex is an interbank market that was created in 1971 when international trade transitioned from fixed to floating exchange rates. Since then the rates of currencies relative to each other are determined by the most obvious means which is the exchange at a mutually agreed rate.
This market surpasses the others in its volume. For example, the daily turnover of world equity market is estimated at $300 billion, while Forex approaches 1 to 3 trillion US dollars a day. However, Forex is not a market in a traditional sense. It doesn't have a fixed location of the trading floor as, for example, shares or currency futures market does. The trading is done over the telephone and at the computer terminals in thousands of banks around the world simultaneously.
Besides, futures and stock markets have one significant difference, and, at the same time, restriction — the trade is interrupted at the day end and resumes only next morning. And if you trade in the Russian market, and some significant events happen in the USA, the market open may differ from your expectations.
Forex market is open 24 hours a day, and currency exchange operations continue during the whole working week. There are dealers willing to quote the currency practically in every time zone (London, New York, Tokyo, Hong Kong, Sydney etc.).
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