The FOREX market is an ‘over the counter market’ (OTC) which means there is no physical or centralised exchange. The FOREX market trades 24 hours a day via a network of banks, corporations and individuals.

Foreign Exchange (FX or FOREX) is the cornerstone of all international capital transactions and surpasses the huge American domestic money markets in terms of liquidity and depth; even the futures and stock markets are insignificant in comparison.

The majority of Foreign Exchange transactions are neither directly related to international trade nor to international settlements but are in fact speculative in nature. For every trade-related transaction in the FOREX Market, there are about 7 to 9 speculative ones. Foreign Exchange is the world's fastest growing industry today and its growth can be attributed to its substantial liquidity and to the orderly manner in which it functions.

Spot FX, unlike stocks and futures instruments, are not traded on an exchange. Through technological advances in the electronic and telecommunications fields, networks of banks and brokers have gained access to a virtually instantaneous system of global transfers of information, data and funds. With the aid of such developments, spot FX has gained a significant advantage over other financial products that are limited to certain time zones and have to endure the erratic strains and confusion of trading floors.

Banks and brokers these days operate on screen-based systems where two-way prices are continuously fed in and dealt on by participants. These systems guarantee greater transparency and instantaneous access to price information anywhere in the world.