How Forex Market Works. Unlike shares or commodities, forex trading does not take place on exchanges but directly between two parties, in an over-the-counter (OTC) market. In the Forex market, all the main banks quote their prices for the foreign currency.
When you think about how Forex trading works, Brokers are the market makers. Also, you can close the bet whenever you want. It is an achievable goal, but it requires a lot of discipline and hard work.
The "How Forex Market Works" explanation starts with the premise that currency prices are always changing.
This is the rate where you can exchange one currency for another currency.
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The foreign exchange market is a global, decentralized market where the world's currencies change hands. The forex market allows participants, including banks, funds, and individuals to buy, sell or exchange currencies for both hedging and speculative purposes. What is forex trading and how does it work?