What is the forex market? The world's biggest market, explained simply
By SendPay Business · · 2 min read
The foreign exchange market, or forex, is where currencies are bought and sold. It is the largest financial market in the world, with trillions of dollars changing hands every day. Every time a business pays a supplier abroad or a traveller swaps pounds for euros, the forex market sets the price.
Who trades currencies
- Banks, trading with each other and for their customers.
- Businesses paying for goods and services abroad.
- Investment funds and other financial firms.
- Central banks managing their reserves.
- Individuals, from travellers to retail traders.
Why it never closes on weekdays
Forex has no single exchange building. It runs over the counter between banks and dealers around the world, so as one financial centre closes another opens. Trading runs roughly from Sunday evening to Friday evening, UK time.
The main trading sessions
Traders usually talk about four sessions: Sydney, Tokyo, London and New York. London is the biggest single centre. Prices tend to move most when sessions overlap, especially when London and New York are both open.
What it means for everyday transfers
The rates you see on a transfer or card payment come from this market, usually with a margin added on top. Knowing the mid-market rate helps you see how much that margin is.
Where SendPay fits
SendPay does not offer forex trading. A SendPay platform lets your customers hold GBP, EUR and USD and exchange between them in your own branded app, at a fee you set, powered by licensed partners.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
What is the mid-market rate?
The midpoint between buy and sell prices on this market.
Mid-market rate →Can I launch my own currency exchange app?
Yes, with multi-currency accounts and exchange.
Currency exchange business →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.