The forex market operates 24 hours a day, 5 days a week, with no central exchange or clearing house. Transactions are executed through an electronic network of banks, brokers, and other financial institutions. Because there is no central exchange, the market is highly decentralized and is subject to less regulation than other financial markets such as the stock market. This allows for greater flexibility and a wider range of investment opportunities, but it also increases the risk of fraud and price manipulation.
For these reasons, it is important for traders to carefully research and choose a reputable forex broker, and to have a solid understanding of the market and trading strategies before entering the forex market. The lesson introduces these two structures and through real examples the specific attributes of unregulated markets are shown.