In a universe with a single currency, there would be no foreign exchange (FOREX), no foreign exchange rates, and no foreign exchange. But our world of mainly national currencies, the foreign exchange market plays the indispensable role of providing the essential machinery for making payments across borders, transferring funds and purchasing power from one currency to another, and determining that singularly important price, the exchange rate. Over the past twenty-five years the way the market has performed those tasks has changed enormously.

Since the early 1970s, with increasing internationalization of financial transactions, the foreign exchange market has been profoundly transformed, not only in size but in coverage and mode of operations. A basic change in the international monetary system from the fixed exchange rate "par value" requirements of Bretton Woods that existed until 1971 to the flexible legal structure of today, in which nations can choose to float their exchange rates or to follow other exchange rate regimes and practices of their choice.

The foreign exchange market, commonly known as the FOREX market, is by far the largest and most liquid market in the world. The foreign exchange market, is the backbone of all international capital transactions. It is the medium for how the world may view a nation's economic situation. The BIS estimates the daily average to be more than $4 trillion.

Because of its size and reach, it is virtually impossible, even by government central banks to manipulate the FOREX market for any length of time.

Unlike the equity markets, no effective insider interference is possible.

The Interbank market is unique:

• Transactions occur directly with other Interbank participants
  
• Orders are processed immediately
  
• Transaction participants are non-discretionary
  
• Two-sided markets are offered to purchase and sell any currency at any time
  
• Both short and long positions can easily be established
  

The FOREX market is open 24 hours a day, nearly 6 days a week that does not depend on certain business hours of foreign exchanges; trade takes place among banks located in different corners of the globe. Exchange rates are so flexible that significant changes happen quite frequently, which enables to make several transactions every day.