The forex market or foreign exchange has been in existence for more than thirty year and goes back to the first half of the 70's. FX market is another term used to refer to the buying and selling of currencies between countries with different monetary units. These dealings have become the foundation for the foreign exchange market.
Huge amounts of money amounting not just to billions but trillions are being traded daily. This is so much more than what transpires in the stock market anywhere else in the world. This also marks the distinction between both markets. Private as well as government financial institutions like banks are connected with these daily transactions.
Furthermore, foreign exchange is not just limited to transactions in a particular country unlike in a stock market in which the area that is covered is limited. The latter deals with domestic trade but forex has a wider scope which involves two or more countries.
The assets involved in the foreign exchange are very liquid thus its value may change at a quicker pace than in the stock market. It can be encashed immediately and the rate varies. The currency reserves may increase or decrease within the day and is usually being monitored by investors and other people who have vested interest in it. Its liquidity affects the country's economy as well as the over-all business climate.
The complexity of the foreign exchange market is even more pronounced because it involves different currencies and the rate for each varies accordingly. Since the exchange rate for each currency has to be considered, it involves a much more intricate procedure and denotes the significant difference between the stock market and the foreign exchange market. Meanwhile, the stocks being traded in the stock market are only done in the currency used locally such as yen in Japan, won in South Korea or dollar in the US.
As such, forex is open twenty four fours a day seven days a week. It has to take into account the various time zones all over the world making it virtually impossible to close at any given time or day. The trading of currencies goes on regardless of the time in any particular country. This is unlike the stock market. In this case, the domestic is being catered to thus it has a definite timetable. It conforms to the hours kept by businesses and typically observes the banking holidays as well as weekend in the specific country.