What is foreign exchange?

Foreign exchange market operates 24 hours and from Sunday night through to Friday night. As the largest and most actively traded financial market in the world, the daily volume has reached to more than $5.3 trillion.
Foreign exchange price is usually quoted in pairs. For example, in an EUR/USD quoting, EUR is called “base currency”, while USD is known as “counter currency”. In our example, the EUR/USD=1. 17050 quote means 1 EUR can exchange for 1.17050 USD.

Features of foreign exchange market

High Liquidity

The 24-hour-5-day-a-week non-stop global FX trading provides high liquidity.

Pair Trading

When an investor buys one currency, he or she is selling another currency at the same time. Thus, there is no restrictions on short selling in foreign exchange market.