Forex trading involves buying one currency and then simultaneously selling the other one. By speculating and analyzing the direction the currencies are most likely to take in the coming future, traders try to make a profit by buying currencies whose value is expected to increase in the future and selling currencies that might lead to a loss.
Forex trading does not take place on pre-decided exchanges. Instead, you trade currency in an over-the-counter (OTC) market, directly between two parties.
The forex market is in fact run by a wide global network of banks that are spread across major trading centres in different time zones including: Tokyo, Sydney, New York, Frankfurt, Singapore, Paris, and London. Since there is no centralized location for forex trading, the market is open for five and a half days every week, 24 hours a day and the currencies can be traded in all the major financial centers of the world in almost every time zone.
That means, when the trading day ends in New York, it kickstarts back again in Hong Kong and Tokyo. Therefore, the forex market can be incredibly active at any time of the day with the price quotes constantly changing.