FOReign EXchange market is an international foreign exchange market, where money is sold and bought freely. It is the biggest liquid financial market in the world for trading in currencies and has a daily average turnover of almost US$1.9 trillion per day. Currencies are traded in pairs and one can buy in Euro and sell in US Dollar or buy in US dollars and sell in Japan Yen and this process of buying one currency and selling in another is conducted simultaneously. To make profit in this market you have to speculate on the prospect of one of the currencies strengthening and one of them weakening.
Here, in marginal trading, one can conduct transactions very quickly, get a big profit, when the exchange rates go up or down. You may expect a currency to go up against dollar, You can buy a lot and wait it to reach your expected price to sell it. Usually Internet-brokers establish the minimum deposit for working in the FOREX market, and grant a leverage of 1:100. That is, opening the position at $100,000, a trader invests $1,000 and receives $99.000 as a credit. These transactions a usually done in major currencies like the Euro (EUR), Japanese yen (JPY), British Pound (GBP), and Swiss Franc (CHF). All of them are traded against the US dollar (USD).
But there is no central marketplace for currency exchange, rather, trade is conducted over-the-counter. The forex market is open 24 hours a day, five days a week, with currencies being traded worldwide among the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney - spanning most time zones.
FOREX is an objective market. No single participant in the market can manipulate the prices because this market operates with tens of billions dollars The superior liquidity allows the traders to open and/or close positions within a few seconds. But there is no limit to keeping a position - from several seconds to many years. It depends only on the trading strategies.