How currency exchange (FOREX) market works

bet you are well aware of the existent of Forex trading nowadays.
Forex market exists wherever one currency is traded for another.
Forex, or Foreign Exchange Market, is generally works as an international currency exchange market.
Investors and speculators are allowed to trade currencies from all around the world thru Forex trading.
Forex is a very unique type of trading where traders are buying and selling 'money' in the same time. The trades are done in pairs, such as Euro/JPY, USD/CHF, and CAD/USD.
It is the world largest trading market where an average of $1.9 trillion trades is done on a daily basis.
The turnover rates in FOREX are nearly 30 times larger than the total volume of equity trades in United States.
Despite its large volume of trades done daily, Forex is relative new to the publics nonetheless. It is only made available to publics in year 1998 where big sized inter-bank units are sliced into smaller pieces and offered to individual traders like you and me. Before that, Forex is a game only for banks, multi national cooperation, and big currency dealers.
Only those with large business size and strong financial background were permitted to trade foreign currencies.
Facts about Forex market
As a matter of fact, large international banks are still the major traders in currency exchange market. Deutsche Bank is one of the top currency traders; along with other major banks like UBS, Citi Group, HSBC, Barclays, J. P. Morgan Chase, Coldman Sachs, ABN Amro, Morgan Stanley, and Merril Lynch; these banks are said to be responsible for more than 70% trades in currency market.
When you are trading Forex with currency dealer, the Forex quotes might look a bit different from our previous example. Often, a two-sided quote, consisting of 'bid' and 'ask' price, is listed when dealing with currency brokers.
For example, EUR/USD 1.2385/1.2390: 1.2385 is known as the 'bid' price while 1.2390 is commonly known as the 'ask' or 'buy' price.
The 'bid' is the price at which you can sell the base currency; while the 'ask' is the price at which you can buy the base currency.
As you study the numbers, you might realize that the two-sided currency price is quoted against you.
Traders are forced to buy the currency in a higher price than the selling one. This is done because FOREX trades are done without any commission chargers. Thru quoting currency 'bid & ask' price differently in this way, the currency brokers are manage to make profit without charging their client commission fees directly.