So far you have learned that in the forex market there is no centralized exchange like a stock exchange. Forex is decentralized: currencies are bought and sold directly between two parties. This is why we call it over the counter (OTC).

This also implies that unlike in the stock exchange market where you have one single price for a currency at a time, in the forex market price quotes vary.

However, a decentralized market does not automatically mean disorganized! Let’s see how the forex market is built up and who its key players are.

It is the versatility of the market participants that contributes to the high liquidity of the forex market. In this respect, again, forex is unique.