# Foreign Exchange Market (Forex)

*Markets & Instruments — Finicade finance glossary*

The foreign exchange market is where currencies are traded — the largest market in the world by volume, trading around the clock five days a week.

The foreign exchange market is where currencies are traded — the largest market in the world by volume, trading around the clock five days a week, and dominated by banks and institutions rather than exchanges. There is no central venue and no closing price, only a network of dealers. Most volume is not speculation on direction but hedging and settlement for trade and cross-border investment.

**Also known as:** forex, FX market, currency market

**Related terms:** [Currency Pair](https://finicade.com/glossary/currency-pair), [Exchange Rate](https://finicade.com/glossary/exchange-rate), [Carry Trade](https://finicade.com/glossary/carry-trade), [Interest Rate Parity](https://finicade.com/glossary/interest-rate-parity), [Devaluation](https://finicade.com/glossary/devaluation)

Source: https://finicade.com/glossary/foreign-exchange-market