The foreign exchange market or Forex market as it is also called is the market in which currencies are traded. According to the Bank for International Settlements, it is the world's largest market which has almost $4 trillion daily volume. This is more than all of the world's stock and bond markets combined. Not only the Forex market is the largest market in the world, but also the most liquid one which separates it from the other markets.
In addition, there is no central marketplace for currency exchange, but instead the trading is conducted over-the-counter. Unlike the stock market, decentralization of the market facilitates traders to make trades with much more number of different dealers and conduct better prices assessments. Normally, the larger a dealer is the better access they have to pricing at the largest banks in the world, and are able to pass the prices on to their clients. The spot currency market is open 24 hours a day, five days a week, with currencies being traded among the participants all around the world, such as banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors. The Tokyo session opens and Forex trading starts; while it closes, the London session opens and continue non-stop going into New York session; the close of New York completes a whole trading day. Since only Forex market opens 24 hours a day, no other markets have the capability to offer the profit potential as Forex market has.