A:

In the forex market, currencies from all over the world can be traded at all times of the day. The forex market is very liquid, and the increased availability of advanced technology and information processing has only increased the number of participants.

Although markets in many foreign countries are closed at the time when North American markets are open, trading on foreign currencies can still take place. While the majority of trading on a particular currency occurs when its main market is open, many other banks around the world hold foreign currencies, enabling them to continue to be traded at times when the main market is closed. For example, the North American markets are open when the Japanese markets are closed, but North American traders are still able to buy and sell Japanese yen through their brokerages and banks. However, the market for Japanese yen is more liquid at times when the Japanese market is open.

Certain currencies have very low rates of demand for exchange purposes. As a result, these currencies can be difficult to trade and can usually only be traded in specific banks. Because currency trading does not take place on a regulated exchange, there is no assurance that there will be someone who will match the specifications of your trade. However, the major currencies of the world, such as the American dollar, the euro and the Japanese yen, are the most widely available.

For further reading, see Getting Started In Forex, A Primer On The Forex Market, Wading Into The Currency Marketand Common Questions About Currency Trading.

RELATED FAQS
  1. In the forex market, how is the closing price of a currency pair determined?

    The foreign exchange market, or forex, is the market in which the currencies of the world are traded by governments, banks, ... Read Answer >>
  2. What am I buying and selling in the forex market?

    The forex market is the largest market in the world. According to the Triennial Central Bank Survey conducted by the Bank ... Read Answer >>
  3. How does the foreign-exchange market trade 24 hours a day?

    The forex market is the largest financial market in the world, trading around $1.5 trillion each day. Trading in the forex ... Read Answer >>
  4. How do you make money trading money?

    Investors can trade almost any currency in the world. Investors, as individuals, countries, and corporations, may trade in ... Read Answer >>
  5. What are the most common currency pairs traded in the forex market?

    There are many official currencies that are used all over the world, but there only a handful of currencies that are traded ... Read Answer >>
  6. How is the value of a pip determined?

    Learn how the pip is used in the pricing of a currency pair in forex trading, and see how the foreign exchange market is ... Read Answer >>
Related Articles
  1. Trading

    The Forex Market: Who Trades Currency And Why

    The forex market has a lot of unique attributes that may come as a surprise for new traders.
  2. Trading

    Top 5 Forex Risks Traders Should Consider

    With a long list of risks, losses associated with foreign exchange trading may be greater than initially expected. Here are the top 5 forex risks to avoid.
  3. Trading

    Forex Tutorial: The Forex Market

    In this online tutorial, beginners and experts alike can learn the ins and outs of the retail forex market.
  4. Trading

    Forex Broker Guide

    A Guide To Choosing a Forex Broker
  5. Trading

    How Equities Affect The FX Market

    We look at how you can predict a currency movement by studying the stock market.
  6. Trading

    Forex Trading: A Beginner’s Guide

    As businesses continue to expand to markets all over the globe, the need to complete transactions in other countries’ currencies is only going to grow.
  7. Trading

    Why It's Important To Regulate Foreign Exchange

    In an increasingly globalized economy, the significance of the foreign exchange marketplace cannot be underestimated.
RELATED TERMS
  1. Foreign Exchange Market

    The market in which participants are able to buy, sell, exchange ...
  2. Funding Currency

    The currency being exchanged in a currency carry trade. A funding ...
  3. Forex Spot Rate

    The current exchange rate at which a currency pair can be bought ...
  4. Currency Pairs

    Two currencies with exchange rates that are traded in the retail ...
  5. Real Time Forex Trading

    A form of speculation in which a trader bets on the movement ...
  6. Currency Pair

    The quotation and pricing structure of the currencies traded ...
Hot Definitions
  1. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  2. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  3. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  4. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
  5. Return on Market Value of Equity - ROME

    Return on market value of equity (ROME) is a comparative measure typically used by analysts to identify companies that generate ...
  6. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding shares. The majority shareholder is often the founder ...
Trading Center