Where is the Forex market located?
Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The Forex market is considered an over-the-counter (OTC) market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network.
Unlike most financial markets around the world, Forex is not centralized on an exchange. Instead it operates on a basis known as the interbank market or Over the Counter (OTC). As each Forex trade involves two reciprocal trades (buy one currency and sell another), these are conducted electronically with any broker who is willing to accept the trade.
