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Forex (FX, foreign exchange)

By Jarosław Wasiński • Published: • Updated:
Foreign exchange: exchanging one currency for another, and the wider markets in currency-related instruments. Much FX trading is over the counter through a network of dealers and venues rather than one global exchange. Deliverable currency exchange, rolling retail FX and currency CFDs are not interchangeable contracts; check settlement, costs and legal protections.
Example. An exporter converts $1,000,000 into EUR at an assumed executable EUR/USD rate of 1.0850. Before additional fees, the result is 1,000,000 / 1.0850 = approximately €921,658.99. The quote is EUR/USD, not USD/EUR.

Several markets and contracts

The wider FX market includes spot exchange, forwards, swaps and options. Retail rolling contracts and CFDs can track similar exchange rates without delivering currency. Identify the actual instrument before applying a margin, financing or settlement formula.

Quotes and trading hours

There is no single consolidated global spot order book. Prices and available size vary across feeds and counterparties. Trading schedules, maintenance breaks, holidays and daylight-saving changes depend on the venue or provider.

Interpreting turnover

The BIS analysis published in December 2025 reports about USD 9.5 trillion of average daily OTC FX turnover for April 2025, across multiple instruments. The preliminary September release had reported about USD 9.6 trillion. These are survey-period averages, not a live counter, retail spot turnover alone or proof that every order fills without slippage. Source: BIS: global FX markets in the 2025 survey.

FAQ

Does Forex always mean physical currency exchange?

No. Deliverable spot, forwards, options, rolling retail contracts and CFDs can all involve currency risk but have different mechanics.

Is the global turnover figure a live liquidity guarantee?

No. A survey-period aggregate does not establish executable size at your provider or the fill of a particular request.

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Jarosław Wasiński

Editor-in-chief, ForexMechanics.com • Macro & FX analyst

Independent analyst and practitioner with over 20 years of experience in financial markets. Actively involved in Forex since 2007, with a focus on fundamental analysis, OTC market structure, and disciplined capital risk management.

  • Creator and editor-in-chief of MyBank.pl, providing reliable financial education since 2004.
  • Author of hundreds of in-depth market commentaries, structural analyses, and educational materials for traders and investors.
  • Advocate for market transparency, promoting education grounded in hard data and institutional reports (BIS, ESMA, CFTC).

All content is educational and informational only – it does not constitute investment advice or a recommendation. Remember: leveraged trading (Forex/CFD) carries a high risk of rapid capital loss.