The Forex market is an over-the-counter (OTC) market, which means that there isn't any central exchange and clearing house where orders are matched. With different amounts of access, currencies are traded in different market makers:
The Inter-bank Market - Large commercial banks trade with one another through the Electronic Brokerage System (EBS). Banks will make their quotes obtainable in this market only to those banks with which they industry. This market is not directly accessible to retail traders.
The Online Market Maker - Retail traders can access the actual FX market through online market makers that trade primarily from the US and the UK. These market makers typically have the relationship with several banks on EBS; the larger the trading amount of the market maker, the more relationships it likely has.
Marketplace Hours
Forex is a market that trades actively as long as there are banks open in among the major financial centers of the world. This is effectively right from the start of Monday morning in Tokyo until the afternoon of Friday in Ny. In terms of GMT, the trading week occurs from Weekend night until Friday night, or roughly 5 days, 24 hours daily.
Price Reporting Trading Volume
Unlike many other markets, there isn't any consolidated tape in Forex, and trading prices and volume aren't reported. It is, indeed, possible for trades to occur simultaneously at different prices between different parties on the market. Good pricing through a market maker depends on that market maker being closely associated with the larger market. Pricing is usually relatively close between marketplace makers, however, and the main difference between Forex and other markets is that there's no data on the volume that has been traded in a given time frame or at any given price. Open interest and even volume on currency futures may be used as a proxy, but they are by no means ideal.
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