FX, also known as the Foreign Exchange market & Forex, is the largest financial market in the world. It doesn't have a physical location where traders go to work, but rather, it is a network of banks and brokerages that trade currencies from around the world. This trading, known as Forex trading, FX, spot FX or spot, is responsible for exchanging $2 trillion per day. Trading takes place 24 hours a day, from the time the market opens in Tokyo until the close of business in New York late Friday evening. The Forex market is considered an over-the-counter market. Trading doesn't take place on weekend days, although investors can take advantage of weekend trading depending upon where they are in the world and what markets (if any) are still open. Until recently, Forex trading was limited to large commercial banks and investment firms, mainly because trading minimums were in the millions of dollars. In the 1990's, rules were changed, trading technologies improved and small investors, known as "retail traders" were permitted to access the Forex market with smaller sums of money. Most retail traders use a combination of their own money and money loaned by the brokerage to make Forex trades.
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