The Foreign Exchange Market existing today has been around since the 1970's, when free exchange rates and floating currencies were originally introduced. Game players or participants in the market determine the price of one currency against another, always based on supply and demand for that currency.
Forex is a unique market because it is free of external controls and that it cannot be manipulated in anyways. It is rated as the largest liquid financial market, with trade reaching between 1 and 1.5 trillion US dollars every day. Traders are able to open and close positions very quickly, within a few seconds as there are always willing buyers and sellers.
Another well known characteristic of the Forex money market is the variety of participants. These different investors each have numbers of reasons for entering this interesting market, some as longer term hedge investors, while others prefer to utilize large and impressive credit lines to aim for large short term gains. While blue-chip stocks are usually most attractive only to the long term investor, currency trading prices and daily fluctuations create an environment which attracts investors with an interesting range of strategies.
Unlike the NYSE which is centralized on an exchange, Forex transactions take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon. There are dealers who will quote all major currencies all possible time zones around the world, after deciding what currency the investor would like to purchase, the transaction can be done via one of these dealers online or off line. It is quite common practice for investors to speculate on currency prices by getting a $500 credit line available to those with capital, and vastly increase their potential gains and losses also called marginal trading.