The term "forex" or currency exchange can be described as an international network of sellers and buyers who exchange currencies with a set exchange rate. This way, individuals or companies, as well as central banks transform one currency into another. If you've been to another country, you might have performed a forex trade. While many currencies are converted to serve practical needs however, the majority of the remittances are done to earn a the purpose of making a profit. The volume of currency that are converted each day could cause significant changes in the value of certain currencies. This fluctuation is what makes the forex market appealing to tradersas it provides huge opportunities to make big gains, but also poses risks. What kind of actions can currency exchange quickly? Contrary to commodities or stocks the forex market is not traded through exchanges, instead, it is traded directly between two parties on an online over-the-counter (OTC) marketplace. The market for forex is managed by banks across the globe located in four major forex trading centres across different time zones, including London, New York, Sydney and Tokyo. Because there isn't a central point that can be used to trade forex 24/7 all day.