Forex Market Size And Liquidity



The forex market has neither a physical location nor a central exchange, unlike a few financial markets such as the New York Stock Exchange. 

This type of market is regarded as an Over-the-Counter, or “Interbank” market, as the market runs completely through electronically, as well as within the bank networks, and simultaneously for over a 24-hour session. 

It implies that the spot forex market is well-known worldwide with no central location. Basically, a trader can take place anywhere. 

Furthermore, the forex OTC market is currently considered as the largest and most well-known financial market globally, as it is traded worldwide by a most individuals, including organizations. 

The participants in an OTC market, primarily determines first who they want to trade with and it depends on the trading conditions, including attractiveness of prices, as well as the trading counterpart’s reputation. 

The most traded currency is the dollar, which accounts about 84.9% among all transactions, while the second is the euro’s share, which comprise about 39.1%, and the yen settled in third with a 19.0%.

The Dollar is the King  

If the USD is considered as one half of each major currency pair, and the majors accounts about 75% among all trades, thus, the U.S dollar must be given a wide attention, as the USD is a king.

Furthermore, the U.S. dollar includes a tough 62% of the official foreign exchange reserves worldwide, according to the International Monetary Fund (IMF). As the majority of each investor, business, and central bank owns it is eyeing to the U.S. dollar. 

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