Sooner or later anyone of us has either heard or has seen the word forex. Here comes the question what forex is all about and what it actually is? The forex industry has begun back in 1971. Before that, all currency rates were paired to either gold or US dollar. The value of a particular currency is depending on different factors but mainly the economic and political situation of the country. On the forex market currencies are joined into currency pairs. This is why there is a correlation of one pair to another.
It is important to mention the fact that the forex market never actually closes and it is opened 24/7. However, since brokers do not work on Saturday and Sunday, trading during that time is closed. There are 3 main trading sessions: Asian, European and American. The largest volume on the market is being observed during the transition from the European to the American session. You will be able to trade any time, even at night, the main thing is basically to select the right strategy at the time of the trade. Asian session usually is very quiet, and thus will be more suitable for long term trades.
Generally the forex market is not a physical market or situated at any particular place. It exists in an electronic system that unites banks. It is from this system that all quotes are being delivered to the traders by the forex brokers. Those banks are also referred to as liquidity providers. The word forex is abbreviation of Foreign Exchange Market (also known as FX or Currency Market). It is the largest market the whole world in terms of trading volume which exceeds 5$ trillion daily turnover.
In the past, forex quotes were being transferred through the phone which was significantly limiting the access to the forex market. It was the big broker firms and banks that were the only players taking advantage of this market. However, with the introduction of Internet everything has changed as all trades started being transmitted through an electronic system. Today, everyone who has a computer/smartphone and an Internet connection can become a forex trader.