The foreign exchange market is also known as the Foreign Exchange Currency Market, the FX market, and the forex market. Forex trading takes place in pairs of currencies  from two different countries. For example, the USD will be paired with the Swiss Franc or the Japanese Yen, and many other foreign currencies. Forex trading always occurs in pairs of currencies.

The forex foreign exchange market is over 30 years old and was established in the early 1970′s. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies on a global basis.

The difference between the stock market and the forex market is the vast trading that occurs on the forex market. Almost two trillion dollars is traded daily in the Forex market. Yes, I said TRILLION with a capital T! The activity of trading in Forex on a daily basis far eclipses the activity of every stock market combined in the world. The forex market is one that involves governments, banks, financial institutions and those similar types of institutions from other countries.

What is traded, bought and sold on the forex market is something that can easily be liquidated, meaning it can be turned back to cash fast, or often times it is actually going to be cash. From one currency to another, the availability of cash in the forex market is something that can happen fast for any investor from any country.

The difference between the stock market and the forex market is that the forex market is global, worldwide. The stock market is something that takes place only within a country. The stock market is based on businesses and products that are within a country, and the forex market takes that a step further to include any country.

The stock market has set business hours. Generally, this is going to follow the business day, and will be closed on banking holidays and weekends. The forex market is one that is open generally twenty four hours a day because the vast number of countries that are involved in forex trading. Buying and selling of Forex is located in so many different times zones. As one Forex market is opening, another countries Forex market is closing.

The stock market in any country is going to be based on only that countries currency, say for example the Japanese yen, and the Japanese stock market, or the United States stock market and the dollar. However, in the forex foreign exchange market, you are involved with many types of countries, and many currencies. You will find references to a variety of currencies, and this is a big difference between the stock market and the forex market.