Where is the central location of the forex market?
There is no central location of Forex market, like stock and futures markets. Forex trading is not centralized on any exchange. It is OTC (Over the counter) or inter-bank market. In Forex affiliate program or Forex market transactions are conducted between two counterparts over the telephone, or via an electronic network. Transactions in the FX market take place in many different forms, 24 hours a day, through different channel all over the globe; existing wherever one currency is exchanged for another.
For most currency instruments, there is NO central location where trading takes place. This is called the forex “spot market,” not to be confused with currency futures or options. The bulk of forex trading takes place between a few hundred large banks that process transactions for large companies and governments. These institutions continually provide exchange rates for each other and for the broader market. The most recent quotation from one of these banks is considered the market’s current pricing for that currency. Trading occurs over the internet, by telephone and through computer terminals at hundreds of locations around the globe.
