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What is the forex market? The world's biggest market, explained simply

By SendPay Business · · 2 min read

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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.
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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.

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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.

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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.

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How it works

Your own money app
  1. Name it and pick your colours
  2. Choose what it does
  3. Launch when you are ready

Why sign up

Create your free SendPay account

It's all about creating your own financial platform with ease. Start with a free account today.

  • A free business accountOpen it in about a minute with your business name, email, password and mobile. No card and no documents to start.
  • Get paid from day oneTake card payments, and share your own payment link and invoices so customers pay in a click.
  • A free business websiteFree to build, free to publish and free to keep, with unlimited visits.
  • Your own financial platformDesign and preview your whole platform free, then launch when you are ready.

SendPay Business is a technology company, not a bank. Accounts, cards and payments are powered by licensed partners.

Questions people ask

Which sessions are open right now?

See all four sessions in your own time.

Forex market hours →
What is one pip worth?

Work out pip value on any major pair.

Pip value calculator →
What is the mid-market rate?

The midpoint between buy and sell prices on this market.

Mid-market rate →
What is a currency pair?

How currencies are quoted against each other.

Currency pairs →
Can I launch my own currency exchange app?

Yes, with multi-currency accounts and exchange.

Currency exchange business →

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Spotted a mistake or something out of date? and we'll fix it. How our guides are made

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. Other companies named in this guide are reference points only and are not affiliated with SendPay Business.