People often wonder where the forex market is located. Is it in Tokyo? Are the headquarters in the City of London?
In fact the forex market isn’t located in any one place. The world’s largest financial market is decentralized and trading happens all around the world. Nearly four trillion US dollars are traded globally every day.
Stocks and commodities are traded in dedicated buildings known as exchanges; for example, the New York Stock Exchange (NYSE) is on Wall Street. The forex market is different. Because it deals with interbank transfers, it has no offices. All trades are carried out electronically or over the phone, so there’s no need for an exchange building.
Trading starts in Sydney on Monday morning, and continues day and night until the Chicago session ends late Friday afternoon. Many world financial centers are involved in forex trading, including the following:
- Hong Kong
- New York
Forex trading is often carried out through brokers, who negotiate deals on their clients’ behalf. Brokers have dealing centers, which are physical offices. They provide their clients with trading terminals and support services, so that clients can get quotes and make trades.